Turnover, Job Satisfaction & HR Practices

UNIVERSITY OF INDONESIA
MEDIATING ROLE OF JOB SATISFACTION ON HUMAN

RESOURCES PRACTICES AND TURNOVER INTENTION IN
INFORMATION TECHNOLOGY CONSULTING COMPANY
(CASE STUDY AMONG INFORMATION TECHNOLOGY
PROFESSIONAL IN JAKARTA)
THESIS
WILLIAM SUHAIDIR
1306357730
FACULTY OF ECONOMICS
MASTER OF MANAGEMENT
MM-MBA
JAKARTA
JULY 2015
UNIVERSITY OF INDONESIA
MEDIATING ROLE OF JOB SATISFACTION ON HUMAN

RESOURCES PRACTICES AND TURNOVER INTENTION IN
INFORMATION TECHNOLOGY CONSULTING COMPANY
(CASE STUDY AMONG INFORMATION TECHNOLOGY
PROFESSIONAL IN JAKARTA)
THESIS
Submitted to fulfill one of the requirements to obtain degree of Magister
Management Master of Business Administration
WILLIAM SUHAIDIR
1306357730
FACULTY OF ECONOMICS
MASTER OF MANAGEMENT
MM-MBA
JAKARTA
JULY 2015
STATEMENT OF ORIGINALITY
This final paper either represents my own effort, any idea or excerpt from other
writers in this final paper, in form of publication or in other form of publication, if
any, has been acknowledged in this paper in accordance to academic standard or
reference procedures.
Name
: William Suhaidir
NPM
: 1306357730
Signature
Date
: July 2015
ii
PREFACE
All praise and gratitude writers dedicate to God for his gift, mercy and blessing in the
completion of this thesis. I would also like to give my sincerest thanks to following
individuals that give me the chances, motivation and support to complete my writing:
1. Harryadin Mahardika, Ph.D. as the director of Magister Management program
to give me the chances to produce and publish my research in the form of
thesis.
2. Dr. Yanki Hartijasti, MBA, M.Si as my thesis supervisor who has guide me
week by week and also give up her weekend time to guide me and my
colleague in finishing our final assignment in the program.
3. My beloved wife, Alsiyas Susanto who supports me in finishing my thesis.
Im really grateful when you patiently accompany me to do my thesis until the
middle of the night.
4. My beloved parents who always give their love and support me in everything
I do.
5. My thesis colleagues, Jonas, Caroline, Pak Jaman and Aulia. I thank you for
the support and the discussion we all have in finishing our thesis.
6. My colleagues in MBA-13. I thank you for the amazing fun experience in
doing our study together.
7. Management and staff of PT XYZ, PT ABC and PT DEF that give me the
chances and provide me with the data to finish the research.
I hope my thesis can be a useful source both for the company and the industry also
for our society.
Jakarta, July 2015
William Suhaidir
iv
LETTER OF AGREEMENT TO PUBLISH THE THESIS FOR

ACADEMIC PURPOSE ONLY
As a member of University of Indonesia academician society, I have agreed as stated
below:
Name
: William Suhaidir
NPM
: 1306357730
Program
: MM-MBA
Faculty
: Economy
Assignment Type
: Thesis
On behalf of science development, I have fully agreed to give the Non-Exclusive

Royalty Free for the Thesis to the University of Indonesia which titled:
MEDIATING ROLE OF JOB SATISFACTION ON HUMAN RESOURCES
PRACTICES AND TURNOVER INTENTION IN INFORMATION
TECHNOLOGY CONSULTING COMPANY (CASE STUDY AMONG
INFORMATION TECHNOLOGY PROFESSIONAL IN JAKARTA)
Along with any related materials if needed. With this Non-exclusive Royalty Free
Right, University of Indonesia has the right to keep, transform and manage in forms
of database, distribute and publish it in the internet and other media as well for
academic purpose only, even without permission as long as my name is mentioned
and included as the sole writer and as the copyright holder. Any form of lawsuit
which possibility occurs in the future event considered as copyright violation of this
thesis will be my personal responsibly.
Sincerely I declare the statement above is true indeed.
Declared at Jakarta
on July 2015
(William Suhaidir)
ABSTRACT
Name
Program
Thesis Title
: William Suhaidir
: MM-MBA
: Mediating Role of Job Satisfaction on Human Resources
Practices and Turnover Intention in Information Technology
Consulting Company (Case Study among Information
Technology Professional in Jakarta)
Human resource is a substantial resource in winning the market share and in having a
sustainable business especially in a service based industry. One of the important issue
in human resources management is employees turnover. It can cause a lot of damage
for the company. Finding the right variable that affect turnover intention among the
employees will be a useful knowledge for management to minimize the turnover rate.
Past conceptual study proved that job satisfaction has a mediating role on HR
practices and turnover intention. Current study will test this argument empirically.
The survey was conducted among IT professional in three selected IT consulting
companies in Indonesia, 152 feedbacks were obtained and processed. The result
showed that job satisfaction fully mediated the relationship between HR practices and
turnover intention. Further analysis into the dimension level found that
communication and coworkers dimensions fully mediate the relationship between
performance appraisal and turnover intention.
Keywords:
Job Satisfaction, HR Practices, Turnover Intention, Mediation, IT Professional
vi
Universitas Indonesia
ABSTRAK
Nama
Program
Judul Thesis
: William Suhaidir
: MM-MBA
: Peran Mediasi dari Kepuasan Kerja terhadap Hubungan
antara Praktek Sumber Daya Manusia dan Turnover Intention
di Perusahan Information Technology Consulting (Studi
kasus pada Information Technology Professional di Jakarta)
Sumber daya manusia adalah sumber daya yang penting untuk memenangkan pangsa
pasar dan bisnis yang berkelanjutan khususnya dalam industri yang berbasiskan jasa.
Keluarnya karyawan dari perusahaan merupakan salah satu masalah yang penting
dalam manajemen sumber daya manusia. Hal ini dapat menyebabkan banyak
kerugian bagi perusahaan. Menemukan variabel yang mempengaruhi turnover
intention akan menjadi pengetahuan yang berguna untuk manajemen perusahaan
dalam mengurangi turnover rate. Penelitian sebelumnya secara konseptual
membuktikan bahwa kepuasan kerja memiliki peran mediasi terhadap praktek sumber
daya manusia dan turnover intention. Penelitian ini akan coba melakukan pembuktian
empiris terhadap hal ini. Survei dilakukan dengan responden profesional IT dari 3
perusahaan IT consulting di Indonesia, 152 jawaban dikumpulkan dan di proses.
Hasil dari penelitian menunjukkan bahwa kepuasan kerja memediasi secara penuh
hubungan antara praktek sumber daya manusia dengan turnover intention. Analisis
lebih lanjut dengan melihat dimensi dari tiap variabel menemukan bahwa dimensi
communication dan coworkers memediasi penuh hubungan antara performance
management dan turnover intention.
Kata Kunci:
Kepuasan Kerja, Prakter Sumber Daya Manusia, Turnover Intention, Mediasi,
Information Technology Professional
vii
TABLE OF CONTENTS
TITLE ........................................................................................................................ i
STATEMENT OF ORIGINALITY ......................................................................... ii
LETTER OF APPROVAL ...................................................................................... iii
PREFACE................................................................................................................ iv
LETTER OF AGREEMENT ................................................................................... v
ABSTRACT ............................................................................................................ vi
ABSTRAK ............................................................................................................. vii
TABLE OF CONTENTS ...................................................................................... viii
LIST OF FIGURES .................................................................................................. x
LIST OF TABLES .................................................................................................. xi
LIST OF APPENDIX ............................................................................................ xiii
1. INTRODUCTION .............................................................................................. 1
1.1 Background..................................................................................................... 1
1.2 Problem Findings............................................................................................ 3
1.3 Research Objectives ....................................................................................... 9
1.4 Implication of Research ................................................................................ 10
1.5 Scope of Research ........................................................................................ 10
1.6 Systematic of Writing ................................................................................... 11
2. LITERATURE REVIEW ................................................................................ 12
2.1 Turnover Intention ........................................................................................ 12
2.2 Job Satisfaction ............................................................................................. 14
2.2.1 Minnesota Satisfaction Questionnaire (MSQ)..................................... 16
2.2.2 Job Description Index (JDI) ................................................................ 17
2.2.3 Job Satisfaction Survey (JSS) .............................................................. 17
2.3 Human Resources (HR) Practices ................................................................ 23
2.4 Relationship among HR Practices, Job Satisfaction & Turnover Intention . 27
3. RESEARCH METHODOLOGY .................................................................... 33
3.1 Research Design ........................................................................................... 33
3.2 Research Variables and Operational Definition ........................................... 33
3.3 Research Measurement ................................................................................. 37
3.3.1 Research Instrument ............................................................................ 37
3.3.1.1 Demographic Information ....................................................... 38
3.3.1.2 Job Satisfaction ........................................................................ 38
3.3.1.3 Turnover Intention ................................................................... 42
3.3.1.4 HR Practices ............................................................................ 43
3.3.2 Research Instrument Testing ............................................................... 45
3.4 Data Collection Method ............................................................................... 48
3.5 Sampling Method ......................................................................................... 49
3.6 Data Analysis Method .................................................................................. 49
viii
3.6.1 Descriptive Statistic ............................................................................. 49

3.6.2 Inferential Statistic............................................................................... 50
3.6.2.1 Simple Linear Regression Analysis......................................... 50
3.6.2.2 Multiple Linear Regression Analysis ...................................... 50
3.6.2.3 Multicollinearity Analysis ....................................................... 51
3.6.2.4 Mediating Variable Analysis ................................................... 52
3.7 Research Object ............................................................................................ 54
3.7.1 PT XYZ ............................................................................................... 54
3.7.2 PT ABC ............................................................................................... 56
3.7.3 PT DEF ................................................................................................ 57
4. RESEARCH RESULT ANALYSIS ............................................................... 58
4.1 Respondent Data ........................................................................................... 58
4.2 Demographic Data ........................................................................................ 58
4.3 Mediating Role of Job Satisfaction .............................................................. 63
4.4 Turnover Intention Analysis ......................................................................... 69
4.5 Job Satisfaction Analysis .............................................................................. 71
4.5.1 Pay ....................................................................................................... 72
4.5.2 Promotion ............................................................................................ 72
4.5.3 Supervision .......................................................................................... 73
4.5.4 Fringe Benefits .................................................................................... 74
4.5.5 Contingent Reward .............................................................................. 74
4.5.6 Operating Condition ............................................................................ 75
4.5.7 Coworkers............................................................................................ 75
4.5.8 Nature of Work .................................................................................... 76
4.5.9 Communication ................................................................................... 77
4.6 HR Practices Analysis .................................................................................. 78
4.6.1 Training and Development .................................................................. 79
4.6.2 Performance Management ................................................................... 79
4.6.3 Pay Practices ........................................................................................ 80
4.7 Discussion..................................................................................................... 81
4.7.1 Mediating Role of Job Satisfaction on the Relationship between
HR Practices and Turnover Intention ................................................. 81
4.7.2 Level of Turnover Intention ............................................................... 89
4.7.3 Level of Job Satisfaction .................................................................... 90
4.7.4 Level of Perceived HR Practices ........................................................ 97
4.8 Managerial Implication ................................................................................ 99
5. CONCLUSION AND RECOMMENDATIONS ........................................ 101
5.1 Conclusion .................................................................................................. 101
5.2 Recommendations ...................................................................................... 102
5.3 Recommendations for Further Research .................................................... 103
REFERENCES ................................................................................................... 104
ix
LIST OF FIGURES
Figure 1.1 PT XYZ IT Professional Turnover Rate 2012-2014 ............................... 3

Figure 1.2 Relationship between HR Practices, Job Satisfaction and Turnover ...... 8
Figure 1.3 Research Framework............................................................................... 9
Figure 2.1 Herzberg Motivator Hygiene Model .................................................. 15
Figure 3.1 Mediator Path Diagram ......................................................................... 52
Figure 3.2 PT XYZ Organization Structure ........................................................... 55
Figure 3.3 PT ABC Organization Structure ........................................................... 56
Figure 3.4 PT DEF Organization Structure ............................................................ 57
Figure 4.1 HR Practices, Job Satisfaction and Turnover Intention Relationship ... 65
Figure 4.2 Performance Management, Coworkers and Turnover Intention
Relationship ............................................................................................................ 67
Figure 4.3 Performance Management, Communication and Turnover Intention
Relationship ............................................................................................................ 68
Figure 4.4 Dimension of HR Practices, Job Satisfaction and Turnover Intention
Relationship Model ................................................................................................ 68
Figure 4.5 Job Satisfaction Mediating Relationship on the Relationship between
HR Practices and Turnover Intention ..................................................................... 83
Figure 4.6 Hofstedes Cultural Score ..................................................................... 92
x
LIST OF TABLES
Table 2.1 Past Studies about Job Satisfaction and Turnover Intention
Relationship ............................................................................................................ 28
Table 2.2 Past Studies about HR Practices and Turnover Intention Relationship . 29
Table 2.3 Past Studies about HR Practices and Job Satisfaction Relationship ...... 30
Table 3.1 Likert 6-Point Scale ................................................................................ 37
Table 3.2 Spector JSS Items Mapping ................................................................... 39
Table 3.3 HR Practices Items ................................................................................. 44
Table 3.4 Cronbachs Alpha Consistency .............................................................. 46
Table 3.5 Research Instrument Testing Result ....................................................... 47
Table 3.6 Multicollinearity Analysis on HR Practices Dimension ........................ 51
Table 3.7 Multicollinearity Analysis on Job Satisfaction Dimension .................... 52
Table 4.1 Respondent Response Rate .................................................................... 58
Table 4.2 Gender .................................................................................................... 59
Table 4.3 Age ......................................................................................................... 59
Table 4.4 Marital Status ......................................................................................... 60
Table 4.5 Number of Dependents ........................................................................... 60
Table 4.6 Education Background ........................................................................... 61
Table 4.7 Current Position ...................................................................................... 61
Table 4.8 Working Period in Current Company .................................................... 61
Table 4.9 Number of Times Relocated to another Company ................................. 62
Table 4.10 Worked Outside IT Consulting Industry .............................................. 63
Table 4.11 Job Satisfaction Mediating Role Test Result ....................................... 63
Table 4.12 Coworkers Dimension Mediating Role ................................................ 66
Table 4.13 Communication Dimension Mediating Role ........................................ 67
Table 4.14 Turnover Intention Descriptive Analysis ............................................. 69
Table 4.15 Factor Influencing Turnover Intention Result ...................................... 70
Table 4.16 Job Satisfaction Descriptive Analysis .................................................. 71
Table 4.17 Pay Descriptive Analysis...................................................................... 72
Table 4.18 Promotion Descriptive Analysis ........................................................... 73
Table 4.19 Supervision Descriptive Analysis ........................................................ 73
Table 4.20 Fringe Benefits Descriptive Analysis ................................................... 74
Table 4.21 Contingent Reward Descriptive Analysis ............................................ 75
Table 4.22 Operating Condition Descriptive Analysis........................................... 75
Table 4.23 Coworkers Descriptive Analysis .......................................................... 76
Table 4.24 Nature of Work Descriptive Analysis .................................................. 76
Table 4.25 Communication Descriptive Analysis .................................................. 77
Table 4.26 Factor Influencing Job Satisfaction Result ........................................... 78
Table 4.27 HR Practices Descriptive Analysis....................................................... 78
Table 4.28 Training and Development Descriptive Analysis ................................ 79
Table 4.29 Performance Management Descriptive Analysis ................................. 80
xi
Table 4.30 Pay Practices Descriptive Analysis ...................................................... 80

Table 4.31 HR Practices Socialization ................................................................... 81
Table 4.32 HR Practices Socialization Perceived Effectiveness ............................ 81
Table 4.33 Job Satisfaction Dimension Comparison from Past Studies ................ 90
xii
LIST OF APPENDIX
Appendix 1 Initial Questionnaire ......................................................................... 124

Appendix 2 Validity and Reliability Test Result ................................................. 125
Appendix 3 Regression Test Result ..................................................................... 154
Appendix 4 Mediating Analysis per Dimension .................................................. 161
xiii
CHAPTER 1
INTRODUCTION
1.1 Background
Information technology is growing fast and revolutionizes our way of life, in
how we work, communicate and socialize. Now, various activities can be executed
accurately in relatively short time. This changes the way on how business is done.
Competition is becoming fierce and companies need to find a new way to gain a
competitive advantage so they can grow and enjoy sustainability. They are racing to
implement information technology to make their process transparent, accurate and
faster in pursuit of efficiency and effectiveness.
According to BMI Research (2015), Indonesia IT spending is forecasted to
increase 11.4% from 2014 to 170.2 trillion in 2015 which is 1.5% of Indonesias
GDP. Responding to this huge demand there are many Information Technology
consulting company emerge in Indonesia and try to meet the demand. Some of the
companies are multinational companies and some are local ones. They are racing to
get the big portion of the demand by providing excellent services to the customer.
The services industry is characterized differently than manufacturing industry
especially on sales since it is intangible. The sales in service industry depends more
on the knowledge, skill and ethics of the people who provide the services. In other
words, the service company most important asset is the human resources and
managing them become more strategic rather than administrative. The winner of the
competition is the one who has the highest standard of human capital to differentiate
them from the others.
Having a high performing human resources is a must to win the race in IT
consulting industry while losing them is a disaster for the company. Since the early
day of information technology industry, turnover has always been a big issue and still
1
continues to the present (Moore, 2000). According to Jiang and Klein (2002), the
turnover rate in 1990s already reached 25 to 33 percent annually. This data is
supported by Hayes (1998). He states that Fortune 500 firms also have the same
turnover rate among their IT personnel. Due to the economic downturn and overall
weak labor market in 2000s, there is a decline in the overall turnover rate (Dinger,
Thatcher, Stepina & Craig, 2012) where IT turnover rate still in 15% rate annually
and the number is even higher among information system consultants (Nelson &
Todd, 2004). This problem is getting worse by growth and maturity rate in the IT
industry that is not supported by the growth rate of available skill supplies
(McLaughin, Sherry, Carcary & OBrien, 2012). In the US, all job types are projected
to grow by 10% within 2006-2016, but IT professional jobs are projected to grow by
25% (Dohm & Sniper, 2007). The demand will automatically increase. While
according to Saunders and Lockridge (2011), the student enrollment in IT programs
has dropped which created a shortage in supply.
The turnover itself causes considerable amount of damage to the company.
Boushey and Glynn (2012) argue that turnover will cause a significant business cost.
Some of them is elaborated by Hinkin and Tracey (2000) as separation cost,
recruiting cost, selection cost, hiring cost and lost productivity cost. Organization
with a high turnover rate cannot perform it optimally. This is supported by research
conducted by Tariq, Ramzan and Riaz in 2013, which stated that turnover would
decrease organization efficiency. Moral of the other employees will also decline
along with the increasing turnover rate (Abassi & Hollman, 2000). All of this will
impact company performance at the end where many research showed that turnover is
negatively related with company performance (Watrous, Huffman & Pritchard, 2006;
Ton & Huckman, 2008). Company needs to take this matter seriously since this can
lead to customer dissatisfaction (Butali, Wesangula & Mamuli, 2014).
1.2 Problem Findings

It is clear that turnover can do significant damage to the organization as stated
in many previous researches above. To keep being competitive in the industry, a
company has to tackle this issue and try to reduce the turnover intention among the
employees. Preliminary study has been conducted in PT XYZ an IT consulting
company in Indonesia. Below is the data of IT professional voluntary turnover rate in
PT XYZ from 2012 to 2014.
30%
26%
25%
25%
21%
20%
15%
XYZ Rate
10%
5%
0%
2012
2013
2014
Figure 1.1 PT XYZ IT Professional Turnover Rate 2012-2014

Source: Triastuti (2015)
Figure 1.1 above show that PT XYZ turnover rate is fluctuating every year but
it is always bigger than 20% and can be considered high. PT XYZ CEO stated that
the high turnover rate is causing a lot of problem and cost. He said that having a high
performing, good quality employee is a strategic issue for the company since in
service industry human capital is the strategic assets. Turnover is damaging the
company since PT XYZ is losing knowledge and money from the investment it has
done to the employee while there is another recruitment and knowledge development
cost ahead for the new recruit. In addition, PT XYZ also suffers from opportunity
cost that is lost when PT XYZ have to turn down a prospect project due to lack of
available resources (Kurnia, personal communication, January 12, 2015).
It needs to be able to tackle and reduce the turnover rate knowledge about the
variables which causing the turnover intention among the employees. The manager of
PT XYZ HR reveals some reasons obtained from employees exit interviews. Most of
the main factors are pay and benefits, supervision, long working hours and some of
them said that they got another good opportunities in another company (Triastuti,
personal communication, January 12, 2015). Many studies have been conducted to
find out what variable cause turnover intention. Most of them try to link the turnover
intention with job satisfaction and some of them also try to link it with HR practices.
According to Wang & Feng (2003), the higher the job satisfaction level of the
employee, the more likely employee will have a good attitude toward their jobs and
more likely to be loyal to the company. This also supported by Wright & Bonnet
(2007) who argued that employee that have high level of job satisfaction will have a
decreased tendency to look for a new job and decreased propensity to leave the
organization. Job satisfaction is negatively related with the turnover intention (Mahdi,
Zin, Nor, Sakat & Naim, 2012; Yucel, 2012). Some of the researches also try to find
out dimension of job satisfaction that matter the most in affecting turnover intention,
for example is the research by Nazim (2008) who discovered that pay, contingent
reward, fringe benefits and promotion as the most influencing dimension. Another
research in another industry found that supervisor and pay has significant relation
with turnover intention (Tnay, Ekhsan, Othman, Siong, Lim, 2013).
The world is changing and also HR Practices from Transactional HR to
Transformational HR (Noe, Hollenbeck, Gerhart, & Wright, 2009). HR practices in a
company according to many researches also have an effect to the employees
turnover intention. According to Cho and Guchait in 2010, HR practices will lower
the employee turnover intention. HR practices in a company are negatively related
with intention to quit among the employees (Khilji & Wang, 2007). Another research
found that compensation & benefit practices, performance management and training
have a negative significant relation to turnover intention (Long, Ajagbe & Kowang,
2013).
Looking from another perspective, there are also researches that prove HR
practices are influencing job satisfaction. In 2009 Verma, Malhotra and Bedi
conducted a research in an IT Company and found that HR Practices can encourage
job satisfaction among the employees. HR practices have a positive relation with job
satisfaction (Syed & Yan, 2012). Some of the researches also go deeper to specific
HR Practices that influence job satisfaction like HR Planning, Compensation,
Training and Development as the most significant practices that influence job
satisfaction (Absar, Azim, Balasundaram & Akhter, 2010). Pasaoglu and Tonus
(2014) also conducted same study in private hospitals and found that recruitment,
training and development are the most significant practices.
In response to the result of previous studies that link turnover intention with
job satisfaction and HR practices a preliminary questionnaire has been sent to all of
PT XYZ employees as a sample. The questionnaire can be found in Appendix 1 page
125. The questionnaire consists of open answer question that try to grab some
information related to job satisfaction and HR practices. Total feedback acquired for
the initial questionnaire is 42 feedbacks out of 70 PT XYZ total employees. Below
are the temporary findings from the initial questionnaire and some sample feedbacks
from the respondents:
Job Dissatisfaction
Pay (40%)
- My salary doesnt fit with my job task and with the pressure
that I got.
- My current salary barely fit my necessity to support my
family and the increase in petrol price making it worse.
Benefit (19%)
- Im not satisfy with the amount of health benefit that is
provided by the company.
- There is no reimbursement on employee child birth.
Supervision (10%)
- There are some supervisors that doesnt really care about their
subordinates problem.
- Some supervisors doesnt give a constructive feedback in a
performance appraisal.
Job Satisfaction
Coworkers (52%)
- I love my relation with my coworkers, we are like family and
helping each other in doing our job.
- Cooperative working environment with my coworkers,
kinship but still professional.
Nature of Work (52%)
- I love my job since it gives me a lot of experience and
knowledge.
- I love to go in a business trip and study new business processes
in every new client.
Inadequate HR Practices (50%)
HR Department only functioned in administrative or transactional
area and not in the strategic area.
HR practices need to be turned on again especially in compensation,
performance and knowledge enhancement.
The result from the questionnaire indicates that there is a link between high
turnover rate in the company with HR practices and job satisfaction. Many
researchers believe that HR practices do not directly link to turnover intention but to
an existing a mechanism that can explain how HR practices are able to influence it
(Huselid & Becker, 2011; Jiang, Lepak, Hu & Baer, 2012). According to Ribeiro and
Semedo (2014), organizational justice mediates the relationship between HR
practices and turnover intention. There is also a study among IT professionals that
argues organizational commitment as the mediating variable between HR practices
and turnover intention (SamGnanakkan, 2010). This study also conducted in
Malaysia across industries, which result an organizational commitment, partially
mediates HR practices and turnover intention (Juhdi, PaWan, Milah, Hansaram &
Othman, 2012). Another study by Joarder, Sharif and Ahmmed (2011) said that
affective commitment mediates the relationship between HR practices and turnover
intention. Another view is provided by Manistitya and Fongsuwan (2015), they
conducted a study on IT Staff in Thailand and the findings is that the company
implements a good HR Practices will eventually lead to employees satisfaction and a
satisfied employee will be committed to their work and loyal which result in a
reduction of turnover intention. Analyzing from some previous studies and
preliminary research provided above, it is clear that job satisfaction has a significant
potential to become a mediating variable between HR practices and turnover
intention.
Mudor and Tooksoon in 2011 conducted a research related to the relationship
between HR practices, job satisfaction and turnover intention. The result is the
conceptual framework between the variables given in figure 1.2 below. The
conceptual framework explain that HR practices specifically supervision, job training
and pay practices have a positive and significant relation with job satisfaction but
negative and significant relation to turnover intention. Job satisfaction has a positive
significant relation to turnover intention. It plays an important role since employee
with low job satisfaction will have a high turnover intention.
Figure 1.2 Relationships between HR Practices, Job Satisfaction and Turnover

Source: Mudor & Tooksoon (2011)
In this study, the conceptual framework above will be tested empirically in

three selected IT consulting companies. Pay and training HR practices variables from
Mudor and Tooksoon (2011) research will be used but one additional HR practices
performance management will be added to replace the supervision dimension. There
are several reasons why performance management is used instead of supervision.
First, performance management is a common process in the three IT consulting
companies. Second, previous research proved that performance management have a
positive relation with job satisfaction (Fay, 2006) and lower turnover intention will be
achieved also if employees satisfy with how the performance appraisal conducted in
the company (Kuvaas, 2006). Performance management is a process where managers
or supervisors maintain and ensure their employees job activities align with the
company goals (Noe, Hollenbeck, Gerhart, & Wright, 2009). Supervisor will
supervise, review and give feedback to their subordinates. On other hand, according
to Delano and Shah (2009) supervision is professional relationship where supervisor
will provide support, education and monitoring of quality. It can be seen that
supervision is in the scope of performance management and this is the third reason
why performance management is chosen. Framework of this study is given below in

figure 1.3.
Figure 1.3 Research Framework
Current study conducted a more comprehensive empirical study and analysis

to conclude the initial findings and concept by measuring the relationship between
job satisfaction, HR practices and turnover intention and this study also tries to find
our whether job satisfaction has a mediating role between HR practices and turnover
intention or HR practices directly affect the turnover intention. Turnover in this
current study refers to a voluntary turnover. From this purpose, research questions
below are derived:
1. Does job satisfaction has a mediating role on HR practices and turnover
intention?
2. What is the level of turnover intention in the three IT consulting companies?
3. What is the level of job satisfaction in three IT consulting companies?
4. What is the level of perceived HR practices in the three IT consulting
companies?
1.3 Research Objectives

1. To understand if job satisfaction has a mediating role between HR practices
and turnover intention.
10
2. To understand the level of turnover intention in the three IT consulting

companies.
3. To understand the level of job satisfaction and its dimension in the three IT
consulting companies.
4. To understand the level of perceived HR practices and its dimension in the
three IT consulting companies.
1.4 Implication of Research

Previous researches show that turnover can cause a lot of damage to the
company performance. Information about how job satisfaction and HR practices can
influence turnover intention among the employees in the three IT consulting
companies will be valuable for the companies to efficient and effectively tackle the
issue reducing the voluntary turnover rate at the end. Job satisfaction itself can
improve or positively related with employees performance (Springer, 2011; Sarwar
& Abugre, 2013). HR practices are also known to have the same positive influence
toward employees performance (Sels, Winne, Delmotte, Maes, Faems & Forrier,
2006; Wang, Hwang & Lin, 2011). This research will also show the job satisfaction
and HR practices level and in addition what job satisfaction dimension and HR
practices contribute the most to turnover intention in the three IT consulting
companies. This information can be used by company to prioritize and plan their next
move in improvement. Designing a whole complete human capital management
improvement program or HR practices will be a daunting task and take a lot of
investment. Company can put a priority of which dimension they have to improve
first and which dimension they can put in the last priority.
1.5 Scope of Research

The unit of analysis used is IT Professionals in PT XYZ, PT ABC and PT
DEF. All companies are in IT consulting industry in Indonesia. There is a potential
11
response bias and the research itself is a cross-sectional study. The data was collected
between April and May 2015.
The research did not include all the potential dimensions that can affect job
satisfaction only the one that is considered important and under control by the
organization. The research also did not include all the HR practices and only include
some relevant HR practice for the company.
1.6 Systematic of Writing

This research consist of five chapters as below:
Chapter 1: Introduction
This chapter will explain the research background, problem statement, objective and
scope of the research and also the implication for the companies and industry.
Chapter 2: Literature Review
This chapter will provide the basic theoretical reference including some previous
studies that will be used to analyze the research data.
Chapter 3: Research Methodology
This chapter will explain the research methodology that contain method to collect
data, sampling detail, measurement tools used, brief company profile and also
statistical method to process the data.
Chapter 4: Research Result and Analysis
Research data, measurement result and also the analysis of the result will be provided
in this chapter.
Chapter 5: Conclusion and Suggestion
Summary of the research and some recommendation for the companies in the
industry and also for further research will be provided in this chapter.
CHAPTER 2
LITERATURE REVIEW
2.1 Turnover Intention

Employees intention to leave or commonly termed as turnover intention is a
plan of employees to leave their current company or organization (Yoshimura, 2003).
Cotton and Tuttle in 1986 give another definition in which they argue that turnover
intention refers to a perceived probability by an employee to either stay or leave an
employing company. Turnover intention is a predecessor of a resign behavior or
employee turnover (Lee & Mowday in Haque & Aslam, 2014). Employees turnover
happens when employees move between company, job and occupations and
sometimes also between the states of employment and unemployment (Abassi &
Hollman, 2000). According to Kazi & Zadeh (2011) there are four types of job
turnover:
Internal Turnover
This turnover happens internally in the company. It includes movement in
position, job description or maybe transfers to another department. This type
of turnover is fully controllable by the company.
External Turnover
If internal turnover happen within the company, external turnover happens
across company. The employee move to another company and it can be
caused by many factors like job dissatisfaction, salary increase and other
reasons.
Voluntary Turnover
This type of turnover comes from the initiative of the employee itself and
sometimes and usually to attain personal satisfaction related to job. The
company cannot control this type of turnover but it can be reduce and the
Human Resources Department can decline some of it.
12
13
Involuntary Turnover
This type of turnover comes from the initiative of the company and based on
factors, which are beyond the control of management. There are many factors
that can cause involuntary turnover like bad performance of the employee,
conflict or sometimes because of the poor financial performance of the
company.
Turnover in a company is usually a major concern for the company human
resources department (Peterson, 2004) but since there are many studies related to
turnover effect and many companies realized how turnover can do a lot of damage to
the company itself then it becomes a major concern of the whole company (Ton &
Huckman, 2008). Some cost identified by Hinkin and Tracey (2000) are separation
cost, recruiting cost, selection cost, hiring cost and lost productivity cost. When an
employee quit the company for the separation company needs to provide severance
pay, effort to do exit interview and some paper work. Company also needs to endure
cost for advertising and attracting potential replacement candidates then another cost
is needed for doing the selection process like medical test, background check and
others. A big portion of cost is needed to redevelop a new employee, i.e., providing
them with training so they have the required skill to do the work and at the end one
the biggest concern is loss productivity cost. This argument is supported Tariq,
Ramzan and Riaz (2013) who says that turnover will decrease organization efficiency
and productivity and it will lead to customer dissatisfaction (Butali, Wesangula &
Mamuli, 2014).
According to Morrel, Clarke and Wilkinson (2004) there are two main factors
that influence employee decision to quit their job. First, the perceived ease of
movement can represent the employee assessment of opportunity to get alternatives
or better job in other organization. Second, the perceived desirability of movement is
influenced usually by job satisfaction for instance. There is another research that
support this theory like the research by Firth, Mellor, Moore and Loquet (2004) that
14
said turnover intention is caused by lack of commitment toward reaching the

organization goal and job dissatisfaction in the form of various personal factors.
Some other variables affecting turnover intention will be elaborated in the upcoming
section in this chapter.
2.2 Job Satisfaction

Until now there is still no general agreement on job satisfaction definition.
Every researcher and author has his or her own way of looking toward job
satisfaction. Some of the very well-known definitions will be discussed in this
chapter.
Job satisfaction is focuses on the role of the person in the workplace. It is an

emotional orientation of an individual toward work roles they currently
engaged in (Vroom in Aziri, 2011).
Job satisfaction represents both positive and negative emotional state that
employees have towards their job. It characterizes the extent to which
expectations match the real reward. Job satisfaction is closely connected to
employee's behavior in the work place (Davis & Nestrom in Aziri, 2011).
Job satisfaction is how employees feel about their job in various dimensions
(Spector, 1997).
Job satisfaction consists of many feelings and beliefs that employees have
about their current work which can range from extreme satisfaction to
extreme dissatisfaction. Employee also can have attitudes about many aspects
of their job and work place, for example like the kind of work they do, their
coworkers, supervisors or subordinates and their payment or benefit (George
& Jones, 2008).
There are a lot of research in job satisfaction since many believes that job
satisfaction can promote employee performance. A research by Springer in 2011

15
suggest that job satisfaction has a positive relation with job performance and suggest
company have to apply managerial strategy to improve job satisfaction and
eventually it will improve the company performance. Another research by Sarwar and
Abugre (2013) also found that job satisfaction can increase employee performance
and eventually customer satisfaction.
Herzberg in Kreitner and Kinicki (2010) state that there is a separate and
distinct cluster of factors that can influence job satisfaction or influence job
dissatisfaction. Mode of Herzberg motivators and hygiene theory is given below in
figure 2.1
Figure 2.1 Herzberg Motivator Hygiene Model

Source: Kreitner & Kinicki (2010)
16
Herzberg found that job satisfaction usually is more associated to recognition,

characteristic of the work, achievement, responsibility and promotion, which he
labelled as motivator. Herzberg argued that motivators can cause an employee to
move from a state of no satisfaction to a satisfied state therefore a managers can
increase employee job satisfaction by incorporating these motivators into the
employees job. Herzberg labels the second cluster of factors hygiene factor. He
states that job dissatisfaction usually associated with the factors in the work context
or environment like company policy, technical supervision, salary, and interpersonal
relations with supervisors and working conditions. These factors are not motivational
so an employee will not have a job dissatisfaction as long as the hygiene factors is
fulfilled but hygiene factors itself cannot improve job satisfaction.
Measuring levels of job satisfaction can be difficult because of the
subjectivity of the concept. People have different way of thinking in defining
themselves as being satisfied or dissatisfied at work. There are many ways to measure
job satisfaction. Common scientific method usually is the use of a questionnaire.
Some of the very well-known job measurement tools are given below.
2.2.1
Minnesota Satisfaction Questionnaire (MSQ)

The Minnesota Satisfaction Questionnaire developed at the University of
Minnesota in Work Adjustment Project. The measurement itself is based on the

assumption that work fit is dependent on the correspondence between the individual
skills and the reinforcements that exist in the work environment (Weiss, Dawis,
England, & Loftquist in Martins & Proena, 2012). The MSQ items are rated on a 5point scale:
1 very dissatisfied with this aspect of my job
2 dissatisfied with this aspect of my job
3 cant decide if Im satisfied or dissatisfied with this aspect of my

job
4 satisfied with this aspect of my job
17
5 very satisfied with this aspect of my job
Responses are summed or averaged to obtain a total score. The lower the score, the
lower the level of job satisfaction. MSQ captures following facets of job: activity,
independence, variety, social status, supervision (human relations), supervision
(technical), moral values, security, social services, authority, ability utilization,
company policies and practices, compensation, advancement, responsibility,
creativity, working conditions, coworkers, recognition and achievement.
2.2.2
Job Description Index (JDI)

The Job Descriptive Index (Smith, Kendall, & Hulin in Lopes, Chambel,
Castanheira, & Oliveira-Cruz, 2015) is one of the job satisfaction measuring

instruments. JDI is specifically cognitive job satisfaction measure and it measures
five facets below:
Compensation and Benefits
Opportunities for Promotions
Coworkers
Supervision
Nature of Work
The scale of five facets is defined by relevant, not relevant and no opinion. Smith,
Kendall and Hullin do not recommend to sum all the five facets into an overall score.
2.2.3
Job Satisfaction Survey (JSS)

One of the well-known job satisfaction measurement tools is developed by
Spector in 1997 and called a Job Satisfaction Survey (JSS). JSS itself contains 36
items to measure 9 dimensions below:
18
Pay
Mondy in 2008 tried to give definition to pay where he said that pay is a
compensation given to the employees by a company as an exchange of their
intellectual or manual skills in form of monetary like salaries. Dessler in 2007
said that pay is arising from the status of employment in the company. Spector
himself include this dimension to measure the amount of fairness or equity in
salary given by the company. Stringer, Didham & Theivananthampillai (2011)
argued that pay is a determinant factor of job satisfaction. Another research
conducted by Roberto and Arocas in 2007 prove that salary have a positive
relation with job satisfaction and negative relation on turnover intentions.
Promotion
Promotion refers to the movement of an individual position to an upper level
position (Mondy, Wayne & Noe, 2005). It gives the opportunity for employee
to develop and gain more responsibility in the job. Promotion also give a
boost on the social status of the employee (Varhol, 2000).
Even though promotion can give a positive effect on job satisfaction,
management still needs to pay attention on how they award a promotion to
their employees. According to Lawler (2008), management of the company
needs to understand what is the employee perceived criteria for promotion,
since if a candidate get promoted but the other employees think that the
candidate is not fit for the promotion award then it will lead to a job
dissatisfaction. Thus, the company management needs to measure the
employee job satisfaction regarding the promotion in the company, give the
employee a proper feedback and also a good visibility on the promotion
criteria (Wilmott, 2006).
Spector try to measure the opportunity fairness of promotions in the company
by putting this dimension in JSS. Awang, Ahmad and Zin in 2010 proved that
19
opportunity of promotion is positively related with job satisfaction and Liu

(2008) also proved that promotion is negatively related with turnover
intention.
Supervision
According to Herzberg in Elliot (2007), supervision is related to the level of
independence received by employees in performing their work and also the
technical skill or the level of competency of their superiors. In this dimension
Spector wants to measure the fairness and the competence at managerial task
by ones superior or supervisor. Job satisfaction will increase when a
supervisor respect and support the subordinates, having a friendly attitude and
also good listening ability (Mathis & Jackson, 2003). McAuliffe, Daly,
Kamwendo, Masanja, Sidat and Pinho (2013) conducted a study that proved
that supervision could improve job satisfaction and lower turnover intention.
Fringe benefits
There are some definitions of fringe benefits. Merchant in Sihombing (2009)
says that benefit are additional income that paid by company outside the
salary, for instance medical allowance, transport allowance and others.
Tremblay, Sire & Balkin (2000) in their research found that there is a
significant difference between satisfaction on pay and satisfaction on fringe
benefits and a good benefits system can maintain a best talent to stay in the
company.
Artz (2010) found that fringe benefits have a positive relation with job
satisfaction. Study conducted in China by Kasper, Muehlbacher, Kodydek and
Zhang (2012) found that fringe benefits has a negative relation with turnover
intention. There are also another researches that are related to fringe benefits
like the research conducted by Frauenheim in 2006 that found job satisfaction
is not only affected by fringe benefits but also another dimension like the
20
relationship with other coworkers. Another research by Dreher, Ash and Bretz
in Sinclair, Leo and Wright (2005) also found that the employee knowledge
and perception about the fringe benefits plays an important role in influencing
the job satisfaction. This mean communication dimension in the company
needs to be improved as well in order to have the employee satisfied with
their benefits.
Contingent rewards
Contingent reward is a non-monetary reward for employees in which
company gives to employees in the form of recognition, praise or maybe
special responsibility, job or assignment because of the employees merit
(Lawler, 2003). Lawler also argued that the existence of this kind of reward in
a company would increase job satisfaction. Spector defined this measurement
as a level of perceived respect, appreciation and recognition accepted by the
employees. Contingent reward has a negative relationship with turnover
intention according to Jackson, Rossi, Rickamer, Hoover and Johnson in
2012. According to Aplander and Lee in Sihombing (2009) that a reward
system needs to be tested and to be analyzed from time to time regarding their
effect toward the employee. By conducting this review, a company can
maximize the reward effectiveness in order to improve job satisfaction among
the employees.
Operating condition
Spector put this dimension to analyze on the company policies, rules and
procedures, whether they support the employee in doing their job or inhibit
them. In addition, Elliot (2007) in his dissertation defined operating condition
are factors such as facilities to support employee in doing their job. Working
condition like lighting, room layout and equipment also can be considered an
operating condition. Bakotic and Babic on their research on 2013 find that
operating condition plays a big part in influencing employee job satisfaction.
21
Milman (2002) argued that poor working condition would lead to turnover
intention.
Coworkers
According to Spector, this dimension will try to measure coworkers in
perceived competence and perceived pleasantness. Simmons (2006)
mentioned that since human basically is a social beings, the opportunity to be
able to work with other people can give a big difference in job satisfaction
level and also it will influence the working life quality. Luthans in Kehinde
(2011) argued that this phenomenon happened because a group people
working together normally can provide the source of comfort, support, advice
and also assistance to the individual worker.
Sias (2005) stated that relationship with coworkers in working environment
can influence the decision-making and information sharing or communication.
A good relationship among coworkers will help information like best
practices in doing a task, company vision and mission, opportunity in training
and other constructive information spread more quickly and effectively in an
organization.
Coworkers can also contribute in shaping someone behavior, both for a
positive behavior and a negative behavior (Raabe & Beehr, 2003). If senior
employees in the organization talk and behave positively about their jobs,
most likely the new employees will model this behavior and are satisfied with
the job. It applies to the reverse condition (Aamodt, 2004).
Robbins and Judge (2013) said that a good relationship with coworkers will
increase job satisfaction, which Ali and Baloch (2008) also supported this
statement by arguing that coworkers have a positive relation with job
satisfaction but a negative relation with turnover intention. Cooper (2002)
stated that company needs to be aware with the relationship among their
22
employees since a bad relation with coworkers can decrease the job
satisfaction and its effect amplifies when there is a role or task ambiguity
among the employees.
Nature of work
Through this dimension, Spector wants to measure the employees satisfaction
with the type of work they do. Saleem, Majeed, Azis and Usman conducted a
research in 2013 and found that nature of work is significantly related with
job satisfaction. In addition, the nature of work also have a negative
relationship with turnover intention (Mbah & Ikemefuna, 2012).
Communication
According to Gibson, Ivancevich, Donnely and Konospake (2006)
communication refers to how a company ability to receive, collect, spread and
react upon appropriate information to be able to connect individual, groups
within the organization and also with the external environment effectively.
Downs and Hazen in Jones (2006) stated that communication elements in an
organization are including:
o Organization perspective
o Personal feedback
o Horizontal communication
o Communication climate
o Organization integration
o Supervision communication
o Communication media quality
All of these communication elements, according to Booppanon (2008) are

very important to job satisfaction and it will help employee to understand the
organization better which can help an organization to achieve its goals.
23
Booppanon also said that there are many factors that influence the
communication quality in the organization including the interpersonal quality
of each individual and their level of relationship. In this dimension, Spector
wants to measure how well is the information sharing in the company.
Carrire and Bourque in 2009 argued that a good internal communication will
improve job satisfaction. According to Mohamad (2008), it will also reduce
turnover intention among the employees.
Job Satisfaction Survey (JSS) will be used in current study. JSS is one of the
most frequently used job satisfaction measurement (Giri & Kumar, 2010; Yelboga,
2009). Based on the respondents comments from preliminary questionnaire sent to
PT XYZ, JSS 9 dimension is expected to capture the information regarding job
satisfaction in the target IT consulting companies more accurate.
2.3 Human Resources (HR) Practices

Human Resources practices is how company internally manage their human
resources including activities, rules, policies and practices involved in human
resources planning, obtaining, developing, utilizing, evaluating, maintaining and
retaining the appropriate competency and skill mix of employees in order to achieve
organizational goal (Appelbaum, 2001). Verma, Malhotra and Bedi (2012) gave
another definition. HR practices can be defined as any practice that deals with
improving competencies, commitment and company cultural building. HR practice
can take many type of form like a process, an activity, system, a rule, an accepted or
expected habit or norm. Daft (2000) tries to give three broad goals of HR practices:
Attracting an effective human resource
Developing the human resources to the full potential
Maintaining and retaining the human resources over the long term
Wright and Kehoe (2008) supported the statement above and also give
another purposes of HR practices which is to give motivation to the employees and

24
also providing them with opportunities to participate in decision making process in

their work. All HR practices implemented in the company must have a fundamental
basis to strengthening tactics of the organization performance as a whole (Noe,
Hollenbeck, Gerhart, & Wright, 2009).
Khan (2010) said that in a competitive business environment today, company
has to implement HR practices that can improve their business performance.
Supporting this argument, Wang, Hwang and Lin (2011) conducted a study in Taiwan
Telecommunication Company and found that HR practices have a significant positive
relation with company performance. HR Practices can contribute to competencies,
commitment and in shaping a culture of the company. In order to enhance HR
practices effectiveness and appropriateness in the company, each of the practices
need to be reviewed and revised from time to time (Rao in Verma, Malhotra & Bedi,
2012).
Each HR practices have different functionality in terms of reaching the
objectives above. Some is motivational like reward and benefit, and some are related
to the development of the employees like training and there others also that function
to discourage employees from engaging in negative behavior. Dessler in 2007 stated
that some of the HR practices are human resources planning, job analysis, recruitment
process, selection, orientation, charging, work evaluation, labor force training and
industrial relations. Yeganeh and Su (2008) included management practices, wage
management, education and development, performance management and career
development as the dimension of HR practices in their study. While according to
Verma, Malhotra and Bedi (2012), HR practices include: HR planning, recruitment
and selection, induction, training and development, performance appraisal, career
planning, fringe benefits, reward and recognition, welfare activities as per statutory
requirement, welfare activities beyond statutory requirement, safety, health and
environment policy, suggestions scheme, promotion and transfers and resign policy.
25
Mudor and Tooksoon in 2011 managed to prove conceptually the relationship

between HR practices, job satisfaction and turnover intention. They identified 3
variables of HR practices, which are pay, supervision and training. Current study will
test empirically the research result from Mudor and Tooksoon (2011). Therefore, HR
practices dimension from Mudor and Tooksoon will be used in current study,
however as stated in chapter 1 that current study will use performance management
dimension instead of supervision. Performance management cover a wider area of
HR practices than supervision and JSS already have a supervision dimension within
it.
Training and development

Training and development is one of the well known and common HR
practices (Tzafrir, 2006). Most of the organizations provide this practices for
their employees to facilitate employee development that will enhance
competency, skill and knowledge (Aswathappa, 2008). This is very crucial for
the company because it will enhances the competencies that will give a
competitive advantage against the competitors (Sherman & Snell, 2008).
Training and development can be a very strong tool to keep people in the
company to develop and grow with the company (Butteriss, 1999). Benson
(2006) conducted a research and found that training and development can
reduce turnover intention. Training and development practices can improve
job satisfaction and also in addition increase employee motivation and
commitment (Schmidt, 2007).
Performance Management
Performance management is a process where company managers ensure their
employees activities is aligned with the company goals. Some of the
activities are to understand what activities and outputs that are desired then
observe whether the activities are occurring or not and finally provide
26
feedback to help employees achieving the desired output (Noe, Hollenbeck,

Gerhart, & Wright, 2009).
Performance appraisals is a systemize process conducted by the company in
order to evaluate performance of their employees in a certain period (Schuler
in Absar, Nimalathasan & Jilani, 2010). The result should
be
used
for
organizational needs and shared to the employees so it will result in

performance improvement (Abdullah, Bilau, Enegbuma, Ajagbe, Ali &
Bustani, 2012). Company also usually uses the information to decide on the
pay raises, training needed, promotions, demotions or even terminations.
Ryan and Todd (2006) found that if employees have better information about
their performance through a comprehensive coaching system with their
supervisor, it will reduce their turnover intention. Abdullah, Bilau,
Enegbuma, Ajagbe & Ali, 2011 also found the positive relationship
between performance management with job satisfaction
and
negative
relationship with turnover intention.
Pay Practices
Pay practices is one of the essential elements and it includes all types
of pay, benefits, and rewards received by the employees arising from their
employment according to Dessler in 2007. This practice is very important
since according to Aswathappa (2008), it influences employees satisfaction,
loyalty and productivity. Singh in 2004 argued that pay practices especially
performance based compensation system will increase company performance.
Managing compensation and reward through pay practices strategy in a
company can strengthen business strategy by improving individual employee
performance. Lobburi (2012) argued that pay and reward practices have a
positive relationship with job satisfaction and negative relationship with
turnover intention. Pay practices are very important in keeping the employees
in the company but alone it is not enough to keep them stay in the company
27
since according to Lawler in Lochhead and Stephens (2004) the key issue is
the amount of total compensation relative to the amount offered by the other
company. Another research that support this argument is done by Smith
(2001) in which he argued that money gets employees to join the company but
it doesnt keep them there. It is very clear that the other HR practices play a
key to retention, not the pay alone.
2.4 Relationship among HR practices, Job Satisfaction and Turnover Intention

Turnover intention among the employees in an organization is a phenomenon
that is widely studied to understand the basic philosophy of employees mind, which
is related with the job turnover intention, or job nature attitude (Shaw, John, Jerkins
& Nina, 1998). There are many factors that cause turnover intention, and specifically
in the current study, the relationship with job satisfaction and HR practices in the
company will be analyzed.
Table 2.1 below show some previous studies that tried to find the relationship
between job satisfaction and turnover intention. The studies conducted in different
countries and also different industries but they all agreed on the result, which is there,
is a significant negative relationship between job satisfaction and turnover intention.
It means if employees are satisfied with their job they tend to stay in their current job
and have less intention to quit the company. Some research go into detail of job
satisfaction dimension and the result is quite vary in different industry and different
country like research by Ali (2008) in Pakistan private sector college found that pay,
fringe benefit, contingent reward and promotion are the most related dimensions with
turnover intention. Research by Tnay, Ekhsan, Othman, Siong & Lim (2013) in
Malaysia production industry found that pay and supervision are the most related
dimension with turnover intention. Research by Wright & Bonnet (2007) also found
another variable that has a moderating effect where they argued that job satisfaction
effect to turnover intention will get higher when well-being of the employee is low.
28
Table 2.1 Past Studies about Job Satisfaction and Turnover Intention
Relationship
Researcher
Mahdi, Zin, Nor,
Sakat & Naim
Year
2012
Data
Printing
CompanyMalaysia
Findings
Both intrinsic and
extrinsic job satisfaction
have a negative relation
with turnover intention
Ali
2008
Private Sector
CollegePakistan
Overall job satisfaction

has a significant
negative relation with
turnover intention. Pay,
promotion, fringe
benefits and contingent
rewards have the
highest relation above
the other dimensions
Tnay, Ekhsan,
Othman, Siong, &
Lim
2013
Production
IndustryMalaysia
Job satisfaction
supervisor and pay
dimension have a
negative relationship
Wright & Bonnet
2007
West Coast
Large
OrganizationUSA
Job satisfaction
negatively related with
turnover intention
especially when the
well-being is low
Yucel
2012
Manufacturing Job satisfaction has a

Industrypositive relationship
with commitment and
Turkey
negative relationship
Another past studies regarding the relationship between HR practices and

turnover intention variable are given below in table 2.2. The studies were conducted
in numerous countries including India, Pakistan, Sri Lanka and United Kingdom. The
29
industries where the study was conducted also vary including service, banking,
leasing and pharmacist.
Table 2.2 Past Studies about HR Practices and Turnover Intention Relationship
Researcher
Year
Data
Findings
Guchait & Cho
2010
Service
IndustryIndia
Perceived HR Practices
by the employee have a
significant relationship
Khilji & Wang
2007
Banking
IndustryPakistan
HR Practices negatively
related with turnover
intention with age and
company performance
moderate significantly
this relationship
& 2013
Conceptual
Research
HR practices negatively
related to turnover
intention
Seston, Hassel,
Ferguson & Hann
2009
PharmacistUK
HR practices are good

predictors of turnover
intention
Ruwan
2007
Leasing
companySri Lanka
HR practices have a
negative relation with
turnover intention with
the most strong
predictors are
compensation and job
analysis
Long, Ajagbe
Kowang
It can be seen that although the researches are conducted in different countries and
across industries, all the research yielded into a same overall conclusion that
perceived HR practices negatively related with turnover intention. There are some
slight variation on the dimension and other findings, for example research by Ruwan
30
(2007) proved that in Sri Lankan leasing company, remuneration practices and job
analysis are the most related practices with turnover intention. Another research by
Khilji & Wang (2007) managed to prove that demographic variables like age and also
company performance are the moderator variable between the relationship of HR
practices and turnover intention.
Current study will analyze the relationship among the 3 variables on previous
studies given in table 2.3 related to the relationship between HR practices. Job
satisfaction also reviewed in this study. Many studies have been conducted and also
support the same argument that HR practices is positively related with job satisfaction
or if employees have a good perception of HR practices in their company then it will
lead to a higher job satisfaction.
Table 2.3 Past Studies about HR Practices and Job Satisfaction Relationship
Researcher
Year
Data
Findings
Absar, Azim,
Balasundaram &
Akhter
2010
Manufacturing
firms-Bangladesh
HR practices have a
positive relationship
with job satisfaction
with training and
development as the
most influential
practices
Pasaouglu &
Tonus
2014
Health Personnel- HR practices have a

Turkey
especially training
and development,
performance
assessment,
remuneration and
recruitment
31
Table 2.3 Past Studies about HR Practices and Job Satisfaction Relationship
(contd)
Researcher
Year
Data
Findings
Syed & Yan
2012
Telecommunication HR practices have a

Industry-Pakistan
Verma, Malhotra
& Bedi
2012
IT Industry-India
HR practices like
information, variety,
closure and pay
practices have a
strong positive
relationship with job
satisfaction
Kooji, Jansen,
Dikkers and De
Lange
2010
Meta-Analysis
HR practices have a
strong positive
relationship with job
satisfaction
HR practices that influence job satisfaction the most is quite vary among
different countries and industries. For instance; in Bangladesh manufacturing firms,
Absar, Azim, Balasundaram & Akhter (2010) found that training and development is
the most influential practices towards job satisfaction while in Turkey health industry,
Pasaouglu & Tonus (2014) found that not only training and development that has the
significant influence to job satisfaction but also performance management,
remuneration and recruitment practices as well.
Mudor and Tooksoon in 2011 conducted a study to find out the relationship
among the three variables. Their result support past studies mentioned above that HR
practices has a positive relation with job satisfaction and job satisfaction has a
negative relation to turnover intention as well as HR practices to turnover intention.
In addition, they argued that job satisfaction mediate the relationship between HR
practices and Turnover Intention. Mudor and Tooksoon conducted a conceptual
research by reviewing some past studies to come up with the result. Current study
will conduct an empirical research to test Mudor and Tooksoon relationship model in
32
IT consulting industry. There are 3 HR practices that have a significant influence

according to Mudor and Tooksoon, those are Pay, Supervision and Training. As
stated previously in chapter 1, current study will use performance management
instead of supervision dimension.
CHAPTER 3
RESEARCH METHODOLOGY
3.1 Research Design

According to Sekaran and Bougie (2010), after all the related variables have
been identified and research model or framework has been developed, the next step is
to design the research so the data can be collected and analyzed before conclusion can
be made. The research is undertaken in order to learn and be able to describe
characteristics of variables. Sekaran and Bougie (2010) stated that descriptive studies
can start with exploratory stage where qualitative data is gathered to understand the
phenomenon and after that quantitative data like frequencies, mean, standard
deviation and others becomes necessary. Research model is built based on the
problem from the preliminary study and previous studies conducted by other
researchers. The research type itself is a correlational study and from the time horizon
point of view. It can be classified as a cross-sectional study since the data is gathered
just once in a particular time.
3.2 Research Variables and Operational Definition

Current study has three variables. First variable is HR practices that act as the
independent variable. Second variable is the job satisfaction that acts as the mediating
variable and the last variable turnover intention, which is a dependent variable.
HR practices have three dimensions, the first one is performance
management, second one is the pay practices and the third one is training and
development. There are four questions for each dimension and in total there are 12
questions in the questionnaire to capture the information about the perceived HR
practices as the independent variable.
33
34
Job satisfaction adopted Spector (1997) model. In total, there are 36 questions
in the questionnaire with four questions for each dimension. Job satisfaction is a
mediating variable in this current study. According to Baron and Kenny in 1986,
mediating variable is the variable that mediates the relationship between the
dependent variables and the independent variables.
The dependent variable in current study is the turnover intention. There are
six questions in the questionnaire to capture the information about respondent
intention to quit the organization.
According to Deming (1994), operational definition is a procedure or
definition that is agreed upon for interpretation of a concept or in a research context it
is a description of a variable and how it is measured within the study. Below is the
operational definition of the three variables and each dimensions.
Job Satisfaction
Job satisfaction is how the employee feel or the emotional state that employee
currently at related to their job in various dimensions which in current study
Spector 9 dimensions are used including pay, promotion, supervision, fringe
benefits, contingent reward, operating condition, coworkers, nature of work
and communication.
Pay
Pay dimension is related to whether the employee satisfied with the
compensation given by the company. It includes also the pay raise aspect and
the suitability between the job task and responsibility with the compensation
given.
Promotion
Promotion itself means that the employee is moving to a higher level with
additional responsibility. In this present study, promotion dimension wants to
35
measure the employee satisfaction regarding the chances of being promoted,

the time needed to be promoted and the fairness of the process itself.
Supervision
Supervision dimension refers to the satisfaction of the employee regarding
their direct supervisor competency, the fairness, and the attention given by the
direct supervisors to their subordinates.
Fringe Benefits
Fringe benefit is the additional income paid by the company outside the
salary. Some examples of fringe benefits are medical allowance, project
allowance, transport allowance, etc. This dimension will measure the level of
employee satisfaction regarding their received benefits, whether it is sufficient
or there should be other additional amount or benefits.
Contingent Reward
Contingent reward is a non-monetary reward given by the company to
appreciate their employees good work. The dimension measures whether the
employee receives the reward when they have to and how the company
appreciates the employees on their success.
Operating Condition
The dimension refers to company policies and procedure. It measures whether
the employee is satisfied with the company policy and procedure. The
dimension captures whether the company policies are supporting the
employees in their job task or inhibit them in doing it.
Coworkers
Coworkers dimension measures whether the employees enjoy working with
their coworkers or not. Employees satisfaction with their coworker
competency is also measured in the dimension.
36
Nature of Work
Nature of work dimension measures the employee satisfaction on how they
see and enjoy their job. This dimension also gives understanding whether the
employee proud of their job or not.
Communication
Communication dimension refers to how well the information flow in the
company internally, for example whether the management passed on the
purpose of the company and other relevant information to their employees
well enough or not and whether the employees understand their job tasks that
are communicated by the supervisor or they feel confuse about their tasks.
HR Practices
A Human Resources practice refers to activities, rules, policies, and practices
developed by the company to manage their human resources. The practices
are developed to better plan, obtain, develop, utilize, evaluate, maintain, and
retain the employees. There are some types of HR practices but current study
use 3 HR practices including pay practices, performance management and
training and development.
Pay Practices
Pay practices refers to HR practices that is related to all type of compensation
like salary, benefits, incentives, or bonus. For example, a policy on the pay
raises and benefits. This dimension measures the employee perception on how
the pay practices is applied in the company.
Performance management refers to the employee perception of the
performance appraisal process on the company. It measures if there is a
regular evaluation and feedback in the company also if the evaluation process
is objective and transparent to the employees.
37
Training and Development

Training and development dimension measures the employees perception on
the training opportunities that they have in the company and also the quality
of the training and development program provided in the company as well.
Turnover Intention
Turnover intention refers to the intention of the employees in leaving their
current company and move to another company because of various reasons.
3.3 Research Measurement

To measure the variables and each dimensions current study use an interval
scale. Likert scale with 6 measurement points ranging from 1 which mean strongly
disagree to 6 which mean strongly agree is used. Detail of the likert scale used in
current study is given in table 3.1 below. Turnover intention, HR practices, and job
satisfaction variable use the same 6-point Likert scale.
Table 3.1 Likert 6-Point Scale

Scale
Description
1
2
3
4
5
6
Strongly Disagree
Disagree
Somewhat Disagree
Somewhat Agree
Agree
Strongly Agree
Source: Spector (1997)
3.3.1
Research Instrument
Current study combined and modified some previous studies questionnaires to
better fit the industries and Indonesian working environment. There are four main
38
information that wanted to be captured in the questionnaire and are divided into 4
section. Provided below is the elaboration of each section.
3.3.1.1 Demographic Information

The questionnaire started with the demographic information about the
respondents. This section consist of 10 questions, first question is a filter question to
make sure the respondent is an IT professional. Next, the following five questions is
about personal information of the respondent like age, gender, marital status,
education background, number of dependents. The rest of the questions are related to
respondent job information like current position, join date in current company,
history of moving to another company and history of working in non IT consulting
company. This demographic information will be used and took into account in the
analysis.
3.3.1.2 Job Satisfaction

The next section is related to job satisfaction. Current study adopted Spector
(1997) Job Satisfaction Survey or known as JSS. According to Giri & Kumar (2010)
and Yelboga (2009), JSS is one of the most frequently used job satisfaction
measurement across industries and also countries.
JSS consist of 36 questions that tried to grab job satisfaction information
divided by 9 dimensions: pay, promotion, supervision, fringe benefits, contingent
rewards, operating condition, coworkers, nature of work and communication. Each of
the dimensions assessed with four questions. Current study adopted all 36 original
questions from JSS and translated it to Bahasa Indonesia to make a same perception
with the respondents that use Bahasa Indonesia as their native language.
Half of the question is a negative statement and another half of it is a positive
statement. To get the job satisfaction level, each question score needs to be summed
up with the score of the negative statement reversed. Table 3.2 below gives the
39
mapping of each dimension on the questionnaire. Number with the r sign indicates
the reverse statement.
Table 3.2 Spector JSS Items Mapping
Dimension
Pay
Promotion
Supervision
Fringe Benefits
Contingent Rewards
Operating Condition
Coworkers
Nature of Work
Communication
Statement
Number
1, 11r, 22r, 32
3r, 13, 24, 38
4, 14r, 25r, 35
5r, 15, 26, 34r
6, 16r, 27r, 37r
7r, 17, 28r, 36r
8, 18r, 29, 39r
9r, 20, 31, 40
10, 21r, 30r, 41r
Dimension of pay consists of four questions related to the satisfaction in the

salary received by the respondents. Two questions are a reverse question.
1: I feel I am being paid a fair amount for the work I do.
11r: Raises are too few and far between.
22r: I feel unappreciated by the organization when I think about what they pay
me.
32: I feel satisfied with my chances for salary increases.

Dimension of promotion consists of four questions related to the satisfaction
in the opportunity of promotion received by the respondents. One question is a

reverse question.
3r: There is really too little chance for promotion on my job.
13: Those who do well on the job stand a fair chance of being promoted.
40
24: People get ahead as fast here as they do in other places.
38: I am satisfied with my chances for promotion.

Dimension of supervision consists of four questions related to the satisfaction
of respondents regarding the supervision from their direct supervisor. Two questions
are reverse question.
4: My direct supervisor is quite competent in doing his/her job.
14r: My direct supervisor is unfair to me.
25r: My direct supervisor shows too little interest in the feelings of

subordinates.
35: I like my direct supervisor.

Dimension of fringe benefits consist of four questions related to the
satisfaction of respondents regarding the benefits they received outside of salary, for
example like medical benefits, transport benefits and other benefits. Two questions
are reverse question.
5r: I am not satisfied with the benefits I receive.
15: The benefits we receive are as good as most other organization offer.
26: The benefit package we have is equitable.
34r: There are benefits we do not have which we should have.

Dimension of contingent rewards consists of four questions related to the
satisfaction of respondents regarding the appreciation, reward, and recognition they

received when they do a good work. Three questions are reverse question.
6: When I do a good job, I will receive the recognition for it.
16r: I do not feel that the work I do is appreciated.
27r: There are few rewards for those who work here.
37r: I do not feel my efforts are rewarded the way they should be.
41
Dimension of operating condition consists of four questions related to the

satisfaction in company operating policies and procedures. Three questions are
reverse question.
7r: Many of our rules and procedures make doing a good job difficult.
17: My efforts to do a good job are seldom blocked by red tape.
28r: I have too much to do at work.
36r: I have too much paperwork.

Dimension of coworkers consists of four questions related to the satisfaction
of respondents regarding their coworkers or people that they work with. Two
questions are reverse question.
8: I like the people I work with.
18r: I find I have to work harder at my job because of the incompetence of

people I work with.
29: I enjoy my coworkers.
39r: There is too much bickering and fighting at work.

Dimension of nature of work consists of four questions related to the
satisfaction of respondents regarding their job itself. One questions is a reverse

question.
9r: I sometimes feel my job is meaningless.
20: I like doing the things I do at work.
31: I feel a sense of pride in doing my job.
40: My job is enjoyable.

Dimension of communication consists of four questions related to the
satisfaction of respondents regarding the communication quality within the company.

Three questions are reverse question.
42
10: Communications seem good within this organization.
21r: The goals of this organization are not clear to me.
30r: I often feel that I do not know what is going on with the organization.
41r: Work assignments are not fully explained.

For further analysis, there is one additional question outside JSS 36 questions
that asks respondents about the 1st, 2nd and 3rd factors that according to them will
influence their job satisfaction in the company. The list of the factors is given below:
A clear work assignment.
Promotion process that is fair and transparent.
Adequate training program.
Having a challenging job.
Appreciation of the job that I do.
Coworker that help each other out.
Compensation system that is linked to my knowledge and skill.
Leader that give a clear explanation if there is any job technical changes.
Feedback of my performance.
Others
3.3.1.3 Turnover Intention

The turnover intention questionnaire is adopted from Lee, Hung & Chen
(2012). Current study translated the questionnaire from previous studies to Bahasa
Indonesia and modified it to fit the industry and culture of Indonesia. In total, there
are 6 questions related to turnover intention and all of it is a positive question. The
scoring also used 6-points Likert scale ranging from strongly disagree to strongly
agree. Some sample of the questions are given below:
43
I already have plan to move the work from where I work today
If there is a friend who invites me to join his company I will fulfill the request
I will quit my current job because of arguments or poor communications with

my supervisor or colleagues.
If I am offered a job with a better compensation package, I will quit my

current job for sure.
For further analysis, there are one additional question outside 6 questions
above in the questionnaire. The question asks the respondents about the 1st, 2nd and
3rd factors that according to them will influence their intention to quit the company.
The list of the factors is given below:
No transparency on performance appraisal.
Inadequate fringe benefits.
Small opportunity for promotion.
Inadequate training provided.
Unclear job assignment.
No appreciation on the job that I do.
Very difficult job target.
Dispute with coworkers.
Better job offer from other company.
Others
3.3.1.4 HR Practices
Questionnaire for HR practices is adopted from both Narang & Singh (2012)
and also Sivasubramanian & Umaselvi (2012). Both researches study the HR
44
practices and their relations with other variables. Current study use items related to
pay practices, performance management, and training & development practices.
Table 3.3 HR Practices Items

Item
Pay Practices
Statement Number
1, 8, 15, 22
3, 10, 17, 24
4, 11, 18, 25
Table 3.3 above gives the mapping of each item in the questionnaire. Every practice
consists of four questions and in total there are 16 questions in Bahasa Indonesia to
capture the information about the perceived HR practices in a company. Scoring
system also use a 6-points Likert scale.
There are 4 questions related to pay practices that capture the information
about perceived HR practices by the respondents related to the pay practices in their
company.
1: I am being paid adequately for the work I do.
8: Pay increments offered by our organization are satisfactory.
15: I am satisfied with the benefits we receive.
22: The benefits that I received in our organization are similar to what most of
the other organizations in the industry provide to their employees.
There are four questions related to training and development that capture the
information about perceived HR practices by the respondents related to the training

and development in their company.
3: My Company has provided me with on the job training which enables me

to do my job better.
45
10: I am satisfied with my training opportunities.
17: I am assigned challenging jobs to charge our enthusiasm and develop our
skills.
24: I am satisfied with the quality of training and development programs

available to me in my company.
There are 4 questions related to performance management that capture the
information about perceived HR practices by the respondents related to the

performance management in their company.
4: My organization appraises the performance of its employees at regular

intervals.
11: I feel our performance appraisal has been fair and objective.
18: I receive proper feedback on how we are performing.
25: I understand how my performance is measured

There is one additional questions included in the questionnaire that asks the
respondents whether they have received a HR practices socialization from their

company or not. If they have received the socialization then the respondents have to
give their opinion whether the process is effective, not effective, or somewhat
effective.
3.3.2
Research Instrument Testing

It is very important in research to ensure that the right measurement tools are
used. According to Sekaran and Bougie (2010) it is necessary to make sure whether
our instrument measuring the right variable and measuring it accurately. Therefore,
the test to ensure the quality of the instrument needs to be conducted. The first test
needs to be conducted is validity test using factor analysis. According to Malhotra
(2007), factor analysis is a tool that has a purpose to decrease the amount of data so it
will remove duplication and redundancy from a set of correlated variables. Factor
analysis will be used in current study to test the validity of the research instrument.
46
Every dimension in job satisfaction, HR practices and turnover intention will be

tested. There are some steps in conducting a factor analysis test according to Santoso
(2006) like Kaiser-Meyer-Olkin (KMO) test, Bartletts test of, Anti-Image Matrices,
Communalities test, Total Variance Explained and Component Matrix.
The second test is reliability test. Sekaran and Bougie (2010) stated that
reliability test on the instrument is needed to make sure the stability and consistency
on how the instrument measuring the concept and help to assess the measure.
Consistency is achieved when items measuring a concept are put together as a set.
Cronbachs alpha is a statistical tool that can be used in measuring this consistency.
Table 3.4 below gives the mapping of Cronbachs alpha consistency level
according to George and Mallery (2003) and it shows that alpha value of 0.5 and
above can be accepted in the research. Current study will do a reliability test and
make sure all of the items in questionnaire is above the rejected consistency level
which mean all the questions related to a dimension are hang together as a set and
reliably can explain the dimension.
Table 3.4 Cronbachs Alpha Consistency

Cronbachs Alpha
Value
0.9
0.7 < 0.9
0.6 < 0.7
0.5 < 0.6
< 0.5
Consistency
Level
Excellent
Good
Acceptable
Poor
Unacceptable
Source: George & Mallery (2003)
Table 3.5 below gives the summary of both validity test and reliability test conducted
on the instrument. Detail result can be seen at Appendix 2 page 126.
47
Table 3.5 Research Instrument Testing Result
Dimension
Before
Factor
Analysis
After
Factor
Analysis
Items
Not
Included
Cronbachs
Alpha
Pay
Promotion
Supervision
Fringe Benefits
Contingent Rewards
Operating Condition
Coworkers
Nature of Work
Communication
Turnover Intention
Pay Practices
4
4
4
4
4
4
4
4
4
6
4
4
4
4
4
4
4
4
4
4
4
4
6
3
4
4
0
0
0
0
0
0
0
0
0
0
1
0
0
0.774
0.793
0.848
0.834
0.770
0.753
0.665
0.722
0.736
0.774
0.793
0.848
0.834
Based on the validity test result, it can be seen that most of the dimensions still
keeping their original items after the factor analysis test, which mean each item in the
dimensions, pass the factor analysis test. One dimension that one of its items has to
be removed is the training and development practices. According to the factor
analysis test, item number 3 of the training and development dimension has a
communalities percentage amounted on 0.185, which is way below 0.5 accepted
limits. This mean item number 3 of the training and development practices cannot be
explain well by the factor and have to be removed. This left the training and
development dimension with 3 item only which all of them are accepted by the factor
analysis.
The reliability test measured the Cronbachs alpha of each dimension in each
variable. The test is using all the 152 questionnaire data. As stated previously, George
and Mallery (2003) argued that Cronbachs alpha value needs to be above 0.5 to be
accepted. Since the result show that all the dimension Cronbachs alpha are above 0.5
48
then it can be concluded that all the dimensions are accepted and can be used for
further analysis.
3.4 Data Collection Method
Sekaran and Bougie (2010) stated that data could be obtained from both
primary resources and secondary resources. Primary data is the information obtained
first hand by the researcher while secondary data obtained from the sources that
already exist like literature for example. Current study use both primary and
secondary data in order to come up with the conclusion of the research.
Primary Data
Current study use questionnaire method to capture the primary data.
Questionnaires were sent to all IT professional in PT XYZ, PT ABC and PT
DEF. Respondent were asked to fill the questionnaire and told about the
purpose of the study. Confidentiality statement is told verbally and written in
the first section of the questionnaire. Since the three IT consulting companies
often require employee to work on the client site so the data collection process
is the combination of both traditional paper questionnaire and online
questionnaire. Link to the online questionnaire is sent through email for
employees who are not in the office at the time of data collection. All these
activities are supported by the HR Department of the company and based on
the company management approval. Since turnover intention question
considered a sensitive information, respondents were told that the survey is
anonymous and only the summary of the result that will be given to the
company management. This is necessary to ensure the honest answers are
given in the questionnaire.
Secondary Data
Secondary data for this study were taken from sources as books, journal, and
all related previous studies. The data will be used as a basic theory in order to
analyze the data from the primary resources.
49
3.5 Sampling Method

The research is conducted in three IT Consulting companies in Indonesia. All
of the subject company main business are giving consultancy related to the usage of
information technology in the company to meet business objectives. The companies
were chosen because they have the similar business and also similar company size.
Medium sized IT consulting company in Indonesia are also rapidly emerging due to
the demand of technology consulting. PT XYZ have 75 employees where 61 among
them is an IT professional or in their term is IT consultant. PT ABC has 70 IT
professional from a total of 90 employees and PT DEF has 25 IT professional from
30 employees. The questionnaire is sent to all IT professionals in the three
companies. Some missing feedback is expected.
3.6 Data Analysis Method

Data gathered from questionnaire will be entered and analyzed using statistic
software IBM SPSS 22. The result from the SPSS as the primary sources will be
combined with secondary resources from literature and others to produce the end
conclusion from the research. Below are the analysis tools that will be used for the
research.
3.6.1
Descriptive Statistic
Descriptive statistic or analysis will be used to get the information about the
level of the variables. This will be calculated from the 6 points of likert scale
provided in the questionnaire starting from strongly agree (6) to strongly disagree (1).
The classification of the mean score () will adopt Spector (1997) classification. HR
practices and job satisfaction mean score () will be classified as below:
3 : Not Satisfied
3 < < 4 : Moderate
4 : Satisfied
50
Turnover intention mean score () will be classified as below:
3 : Low
3 < < 4 : Moderate
4 : High
3.6.2
Inferential Statistic
According to Singh (2006) an inferential statistic involves the selection for
study of a small group, which assumed to represent the characteristic of the large
group from which the small group is drawn. This approach is taken since the main
purpose of the research is to find out the principles that have universal application,
however to measure the whole population to come up with the conclusion is
sometimes impracticable and impossible. Inferential statistic will observe the sample
and certain inferences can be made about the population.
3.6.2.1 Simple Linear Regression Analysis

Cohen, Manion and Morrison (2007) stated that simple linear regression
analysis is used to find out the relationship between one independent variable with
one dependent variable. Current study will use the simple linear regression analysis to
find out the relationship between these variables below:
HR practices and job satisfaction
Job satisfaction and turnover intention
HR practices and turnover intention
3.6.2.2 Multiple Linear Regression Analysis

Multiple Linear regression analysis according to Cohen, Manion and
Morrison (2007) is a statistical tool to predict and weight the relationship between
multiple independent variables to one dependent variable. This analysis can identify
whether an independent variable is associated to dependent variable and how much
51
its effect on it. Current study will try to find out the weight and relationship between
the 9 dimensions of job satisfaction to turnover intention and also the HR practices
like performance management, pay practices and training to turnover intention.
3.6.2.3 Multicollinearity Analysis

According to Muijs (2004), in conducting a multiple regression analysis, a
collinearity existence in the model needs to be checked. If there is an independent
variable that related with one another to strongly it will cause problem since it will be
hard to estimate the relationship between the dependent and independent variable.
Multicollinearity can be detected by calculating the VIF (Variance Inflation Factor)
and the general rule of thumb is there is a multicollinearity exist when the VIF value
is greater than 10 (Stevens, 2009).
Table 3.6 Multicollinearity Analysis on HR Practices Dimension

Dimension
Tolerance
VIF
Pay Practices
Training & Development
0.627
0.577
0.498
1.594
1.732
2.009
In present study, there are three dimensions of HR practices in the model,

including training and development, performance management and pay practices.
Multiple regression analysis is also conducted in order to find out which dimension of
HR practices that gives the most influence to turnover intention. Table 3.6 above
gives the multicollinearity analysis on each dimension of HR practices. Since all the
VIF value are less than 10 then it can be concluded that there is no collinearity exist
between the HR practices dimension.
Current study also use 9 dimension of job satisfaction in the model, including
pay, promotion, supervision, fringe benefits, contingent rewards, operating condition,
52
coworkers, nature of work, communication. Multiple regression analysis is also

conducted in order to find out which dimension of job satisfaction that gives the most
influence to turnover intention. Table 3.7 below gives the multicollinearity analysis
on each dimension of job satisfaction. Since all the VIF value are less than 10 then it
can be concluded that there is no collinearity exist between the job satisfaction
dimensions.
Table 3.7 Multicollinearity Analysis on Job Satisfaction Dimension
Dimension
Tolerance
VIF
Pay
Promotion
Supervision
Fringe Benefits
Contingent Rewards
Operating Condition
Coworkers
Nature of Work
Communication
0.575
0.480
0.463
0.513
0.363
0.525
0.480
0.490
0.588
1.740
2.082
2.162
1.948
2.755
1.906
2.085
2.043
1.701
3.6.2.4 Mediating variable analysis

According to Baron and Kenny (1986), a mediator variable is a variable that
accounts for the relation between the independent variable and the dependent or
outcome variable. Figure 3.1 below can explains this mediating concept.
Figure 3.1 Mediator Path Diagram

Source: Baron & Kenny (1986)
53
Two causal variables go into one outcome variable. Path c represents the direct
impact of the independent variable while path b represents the mediator impact on the
outcome variable. In addition there is one more path which is path a as a link between
independent variable to the mediator. There are conditions that need to be met by a
variable to be considered as a mediator variable (Baron & Kenny, 1986):
Independent variable variations significantly account for variations in the

mediator variable.
Mediator variable variations significantly account for variations in the

dependent (outcome) variable.
If path a and path b is controlled than a significant relation between the

dependent and independent variable is no longer significant.
There are three possible outcomes. First, there is no mediating relationship. The
second one is a full mediation that means there is a single dominant mediator. The
third one happens when there is a multiple mediator presents or can be said as partial
mediating relationship.
Current study will test if job satisfaction is the mediating variable of HR
practices to turnover intention. There are four steps to be done which involved a
simple linear regression analysis and also multiple linear regression analysis in order
to see whether the conditions above are met and there is a mediating relationship:
Step 1: Conduct a simple linear regression analysis to test the relationship

between independent variable and outcome variable (path c).
Step 2: Conduct a simple linear regression analysis to test the relationship

between independent variable and mediator variable (path a).
Step 3: Conduct a multiple linear regression analysis to test the relationship

between mediator variable and outcome variable (path b). Use outcome
variable as the criterion variable and both mediator and independent variable
54
as the predictors, which mean the independent variable, must be controlled in

establishing the effect of the mediator on the outcome variable.
Step 4: Use the same equation as step three and analyze the relationship from
independent variable to outcome variable (path c) when mediator variable is
controlled.
Full mediation condition happen when step 1 to step 3 are met and path c is no
longer significant in step 4. If step 1 to step 3 are met but path c in step 4 is still
significant then partial mediation exist. There is no mediation if one of the step is not
fulfilled.
MacKinnon, Fairchild and Fritz in 2007 argued that an inconsistent mediation
may exist. The condition happen when c has an opposite sign to ab which can be the
case when step 1 is not met but there is still mediation. Mediator variable acts as the
suppressor variable in this case.
According to Baron and Kenny (1986) to get the amount of total effect, direct
effect and indirect effect need to be added altogether. The indirect effect is the
product of a and b and the direct effect is the c which mean Total effect = c + ab.
According to Pearl (2001) direct effect try to measures the changes in the outcome
variable when the independent variable is change while indirect effect try to measures
the changes in the outcome variable from the independent variable through the
mediator variable. Indirect effect is also called a mediated effect or the amount of
mediation.
3.7 Research Object

3.7.1
PT XYZ
PT XYZ is founded in 2005 with main business as an IT consulting company.
PT XYZ is an authorized business partner of ABB and permitted to sell and

implement their product in Asia Pacific. In addition, PT XYZ also has a software
development division to develop and implement their own product. Most of the
55
product sold by PT XYZ is specialized for asset intensive industry like mining, power
and utilities, oil & gas and for military. PT XYZ main product is the Enterprise Asset
Management (EAM).
HR Manager of PT XYZ stated that currently the company has 75 employees
excluding 4 board of directors. There are five division led by Finance Director:
Finance, Accounting, General Affair, IT Support, and Human Resources. Marketing
and Sales Director lead a sales division consist of salesperson that responsible in
selling PT XYZ Product.
Figure 3.2 PT XYZ Organizational Structure

Source: Triastuti (2015)
56
While most of PT XYZ employees who are IT professional consist of Professional

Services Director leads 61 peoples. This department consists of many consultants that
deliver PT XYZ services. Figure 3.2 above gives the organizational structure of PT
XYZ. Average IT professional turnover rate of the company is 24% (Triastuti,
personal communication, January 12, 2015).
3.7.2
PT ABC
PT ABC is an IT consulting company that have diverse solutions ranging
from hardware to software. Their main business is on virtual technology but they also
provide business intelligence and enterprise resource planning solutions.
Figure 3.3 PT ABC Organizational Structure

Source: Masmono (2015)
HR Manager of PT ABC stated that currently the company has 90 employees and
among them there are 70 IT professionals with the average turnover rate is 20%.
Figure 3.3 above give a brief picture of PT ABC organizational structure where most
of the IT professionals are housed in business application and infrastructure division.
Sales team will handle marketing and sales activity. While back office consists of
HR, Accounting, General Affair and other department related to the company
supporting activities (Masmono, personal communication, April 2 2015).
57
3.7.3
PT DEF
PT DEF is an IT consulting company that was founded in 2010 and its main
business is on data security and protection. Thus they have many clients in banking
industry. PT DEF is an authorized business partner of IBM. HR Manager of PT DEF
stated that the company currently has 30 employees excluding the board of directors.
Figure 3.4 below gives a brief picture of PT DEF organizational structure. The team
consists of sales and marketing team, human resources, and finance and accounting,
general affair and most of them are in operation or engineering team. PT DEF has 25
IT professionals in the operation division with the average turnover rate around 19%
(Hie, personal communication, March 10, 2015).
Figure 3.4 PT DEF Organizational Structure

Source: Hie (2015)
CHAPTER 4
RESEARCH RESULT ANALYSIS
4.1 Respondent Data

Primary data for the research is obtained through questionnaire sent to three
IT consulting companies in Indonesia. The questionnaire was sent only to IT
professional in the company, hence employees from Human Resources, Accounting,
Finance, General Affairs and other supporting department were excluded.
Table 4.1 Respondent Response Rate

Company
PT XYZ
PT ABC
PT DEF
Total
Total
Employees
Total IT
Professional
Total
Questionnaire
Sent
Total
Questionnaire
Feedback
75
90
30
61
70
25
61
70
25
156
61
66
25
152
Table 4.1 above indicates the total number of the respondents. It can be seen from the
table that for both PT XYZ and PT DEF current study have the whole population
primary data which is 61 out of 61 for PT XYZ and 25 out of 25 for PT DEF. From
PT DEF current study received 66 feedbacks out of 70, which gives the response rate
94.2% from the total population. In total, there are 152 respondents data to be
processed and analyze in current study.
4.2 Demographic Data
There are nine questions included in questionnaires in order to capture the
demographic data of the respondents. The questions are capturing the information on
58
59
gender, age, marital status, number of dependents, education background, current job
position, working period in current company, how many times the respondents have
moved to another company and whether the respondents had worked outside the IT
consulting industry.
Table 4.2 Gender
Female
Male
Total
N
35
117
152
%
23%
77%
100%
Table 4.2 above indicates the demographic information regarding gender of

the respondents. Since IT consulting is a male dominated industry, it is not a surprise
that in overall, there are more male respondents than female. In total, there are 23%
female respondents and 77% male respondents.
Table 4.3 Age
< 25 Years
25-30 Years
31-35 Years
36-40 Years
41-45 Years
Total
N
36
77
21
13
5
152
%
23.7%
50.7%
13.8%
8.6%
3.3%
100%
Table 4.3 above indicates the demographic information regarding age interval
of the respondents. Most of the respondents age is between 25-30 years old for about
50.7% and there are only 3.3% respondents that have the age above 40 years old.
60
Table 4.4 below indicates the demographic information regarding the marital
status of the respondents. There are slight differences between the amount of married
and single respondents. Most of the respondents are single amounted to 59.2% and
40.8% of the respondents are married.
Table 4.4 Marital Status
Married
Single
Total
N
62
90
152
%
40.8%
59.2%
100%
Table 4.5 below indicates the demographic information regarding the number
of dependents that the respondents have. Most of the respondents do not have a
dependent, which is 56.6%. The frequency is gradually decreasing along the increase
on the number of dependents.
Table 4.5 Number of Dependents
0
1
2
3
4
>4
Total
86
22
28
10
5
1
152
56.6%
14.5%
18.4%
6.6%
3.3%
0.7%
100%
Table 4.6 below indicates the demographic information regarding the

education background of the respondents. As expected most of the respondents are
hold a S1 degree (71.7%), which is usually a compulsory requirement to work in
most of companies in Indonesia.
61
Table 4.6 Education Background
SMA
Diploma
S1
S2
Total
N
13
20
109
10
152
%
8.6%
13.2%
71.7%
6.6%
100%
The second and third position is Diploma and SMA, which nowadays is quite
common in medium IT consulting to hire a diploma or SMA candidate in order to
reduce their operating cost.
Table 4.7 Current Position
Staff
Supervisor
Manager
Senior Manager
Total
N
108
22
18
4
152
%
71.1%
14.5%
11.8%
2.6%
100%
Table 4.7 above indicates the demographic information regarding the current
position of the respondents. Most of the respondents are still in Staff position, which
amounted to 71.7% of the respondents. 2.6% senior manager respondents took part
on the questionnaire.
Table 4.8 Working Period in Current Company
1-2 years
> 2-5 years
> 5-10 years
Total
N
73
46
33
152
%
48%
30.3%
21.7%
100%
62
Table 4.8 above indicates the demographic information regarding how long
the respondents had worked in their current company. Most of the respondents can be
considered a new employee since they fall in 1-2 years (48%) group. The longest
period is 5-10 years since all the three IT consulting companies was founded no
longer than 10 years ago.
Table 4.9 Number of Times Relocated to another Company
None
1 times
2 times
3 times
4 times
5 times
6 times
> 6 times
Total
N
48
33
29
21
11
7
1
2
152
%
31.6%
21.7%
19.1%
13.8%
7.2%
4.6%
0.7%
1.3%
100%
Table 4.9 above indicates the demographic information regarding how many
times the respondents have changed or moved to the other companies before working
in their current position. Most of the respondents had never moved to another
company before (31.6%) which mean their current company is their first company
they are working for.
Table 4.10 below indicates the demographic information regarding how many
of the respondents had worked before outside IT consulting industry. From the data it
can be seen that the amount of respondents that had worked before outside the
industry and the amount who had not is quite balance. 55.3% respondents never
worked before outside the industry and 44.7% had worked outside the IT consulting
industry.
63
Table 4.10 Worked Outside IT Consulting Industry
Yes
No
Total
N
68
84
152
%
44.7%
55.3%
100%
4.3 Mediating Role of Job Satisfaction

According to Baron and Kenny (1986) there are four steps to be conducted to
be able to test if a variable has a mediating role in the model. In this case, a simple
linear regression analysis on HR practices and turnover intention and HR Practices
and job satisfaction needs to be conducted. The third test to be performed is the
multiple regression tests with turnover intention as the dependent variable and HR
practices and job satisfaction as the independent variable.
Table 4.11 Job Satisfaction Mediating Role Test Result

Step
1
2
3
4
Dependent
Variable
Turnover Intention
Job Satisfaction
Turnover Intention
Turnover Intention
Independent
Variable
HR Practices
HR Practices
Job Satisfaction
HR Practices
Path
Sig.
c
a
b
c
-0.407
0.496
-0.906
0.021
Significant
Significant
Significant
Not Significant
Table 4.11 above indicates the result of mediating relationship analysis test using
both simple linear regression test and multiple linear regression test. Detailed
calculation can be seen at Appendix 3 page 155.
In step 1, simple linear regression analysis is conducted on HR practices
variable to turnover intention. The result gives this equation: Turnover intention =
4.721 0.407*HR practices. Beta coefficient explains the amount of influence given
by the HR practices to turnover intention, the greater the beta coefficient then the
64
greater the influence (Santoso, 2006). The result shows that with 95% confidence
level or = 0.05 the coefficient ( 0.407) is significant which mean HR practices
have a negative relationship to turnover intention. If an employee perceived HR
practices is increase then the turnover intention of the employee will decrease.
In step 2, simple linear regression analysis conducted on HR practices
variable to job satisfaction. The result give this equation: Job Satisfaction = 2.186 +
0.496*HR practices. Beta coefficient explain the amount of influence given by the
HR practices to job satisfaction which the result shows that with 95% confidence
level or = 0.05 the coefficient (0.496) is significant which mean HR practices give a
positive influence or positive relationship to job satisfaction. If an employee
perceived HR practices is increase then the job satisfaction of the employee will also
increase.
In step 3, the relationship between job satisfaction and turnover intention is
measured. As stated in previous chapter that in doing this measurement HR practices
variable needs to be controlled as well. Multiple regression analysis is conducted
which put turnover intention as the criterion variable and HR practices and job
satisfaction as the predictors. The result give this equation: Turnover intention =
6.771 + 0.021*HR practices 0.906*job satisfaction. Beta coefficient explain the
amount of influence given by the job satisfaction to turnover intention where the
result shows that with 95% confidence level or = 0.05 the coefficient ( 0.906) is
significant which mean job satisfaction have a negative relationship to turnover
intention. If an employee perceived job satisfaction is increase then the turnover
intention of the employee will decrease.
The last step, to confirm on the job satisfaction mediating role or step number
4 is by analyzing the result from previous multiple linear regression analysis. The
result shows that with 95% confidence level or = 0.05 HR practices influence to
turnover intention (path c) is no longer significant. As stated in chapter 3 that if HR
65
practices is no longer significant when job satisfaction is controlled than job

satisfaction has a full mediating effect on the model.
Figure 4.1 below indicates the summary of the relationship model between the
variable. It can be seen that HR practices have a positive relationship with job
satisfaction (0.496). Job satisfaction and turnover intention have a negative
relationship (-0.906). HR practices have a negative relationship with turnover
intention (-0.407) but when job satisfaction is controlled then the relationship
between HR practices and turnover intention is no longer significant (0.021) denoted
by c.
Figure 4.1 HR Practices, Job Satisfaction, and Turnover Intention Relationship
Amount of the total effect comes from the amount of direct effect add by the
amount of indirect effect. Since the full mediation relationship happen in the model
then there is no direct effect from HR practices to turnover intention which gives the
amount of total effect ab or 0.496 * -0.906 = - 0.449. This mean that turnover
intention is affected by HR practices through job satisfaction as the mediator variable
with total effect amounted to 0.449.
66
Further analysis looks into the level of dimensions of each variable. Mediation
analysis is conducted and the result shows that there are 2 models that are significant
in the dimension level. Detailed calculation is provided in Appendix 4 page 162.
Table 4.12 below indicates the mediation test result of the first significant
dimension, which are performance management from HR practices, and coworkers
dimension from job satisfaction. Since step 1 until step 3 is fulfilled and the
relationship between performance management and turnover intention is no longer
significant when coworkers is controlled, then a full mediation relationship is found
in the model.
Table 4.12 Coworkers Dimension Mediating Role
Step
1
2
3
4
Dependent
Variable
Turnover
Intention
Performance
Management
Turnover
Intention
Turnover
Intention
Independent
Variable
Performance
Management
Coworkers
Coworkers
Performance
Management
Path
Sig.
-0.320
Significant
0.258
Significant
-0.201
Significant
0.000
Not Significant
dimensions. It can be seen that performance management have a positive relationship
with coworkers (0.258). Coworkers and turnover intention have a negative
relationship (-0.201). Performance management have a negative relationship with
turnover intention (-0.320) but when coworkers is controlled then the relationship
between performance management and turnover intention is no longer significant
(0.000) denoted by c.
67
Figure 4.2 Performance Management, Coworkers, and Turnover Intention

Relationship
Amount of the total effect comes from the amount of direct effect add by the
amount of indirect effect. Since the full mediation relationship happen in the model
then there is no direct effect from performance management to turnover intention
which gives the amount of total effect ab or 0.258 * -0.201 = - 0.052. This mean that
turnover intention is affected by performance management through coworkers
dimension as the mediator variable with total effect amounted to 0.052.
Table 4.13 Communication Dimension Mediating Role

Step
1
2
3
4
Dependent
Variable
Turnover
Intention
Performance
Management
Turnover
Intention
Turnover
Intention
Independent
Variable
Performance
Management
Communication
Communication
Performance
Management
Path
Sig.
-0.320
Significant
0.411
Significant
-0.283
Significant
0.000
Not Significant
The second significant dimensions are performance management from HR

practices and communication dimension from job satisfaction. Table 4.13 above
indicates the mediation test result of the dimensions which Since step 1 until step 3 is
fulfilled and the relationship between performance management and turnover
intention is no longer significant when communication is controlled then a full
mediation relationship is found in the model as well.
68
dimensions. It can be seen that performance management have a positive relationship
with communication (0.411). Communication and turnover intention have a negative
relationship (-0.283). Performance management have a negative relationship with
turnover intention (-0.320) but when communication is controlled then the
relationship between performance management and turnover intention is no longer
significant (0.000) denoted by c.
Figure 4.3 Performance Management, Communication, and Turnover Intention

Relationship
Amount of the total effect comes from the amount of direct effect added by
the amount of indirect effect. Since the full mediation relationship found in the model
then there is no direct effect from performance management to turnover intention
which gives the amount of total effect ab or 0.411 * -0.283 = - 0.116. This mean that
turnover intention is affected by performance management through communication
dimension as the mediator variable with total effect amounted to 0.116.
Figure 4.4 Dimensions of HR Practices, Job Satisfaction, and Turnover

Intention Relationship Model
69
Combining the result together gives the model presented by Figure 4.4 above.
Turnover intention is significantly influence by two dimensions of job satisfaction
including coworkers and communication. Coworkers influence turnover intention (0.213), while communication influences turnover intention (-0.265). It can be seen
from the model that both coworkers and communication dimensions from job
satisfaction is significantly influenced by performance management dimension in HR
practices. Performance management influences coworkers (0.258) and influences
communication (0.411). The total effect from performance management to turnover
intention through communication (-0.116) is bigger than the total effect from
performance management to turnover intention through coworkers (-0.052).
4.4 Turnover Intention Analysis

To understand the level of turnover intention in the three selected IT
consulting companies, descriptive analysis was conducted. Table 4.14 is the summary
of turnover intention descriptive analysis. A mean score 3 represents a low turnover
intention, mean score between 3 and 4 represents a moderate turnover intention while
a mean score 4 represents high turnover intention.
Table 4.14 Turnover Intention Descriptive Analysis

Statement
1
2
3
4
5
6
Turnover
Intention
Keyword
Plan to move
Invitation from friend
Argument with supervisor or colleagues
Prepare application to move
Mature plan to move
Offer better compensation package
Mean
3.27
3.81
3.03
2.81
2.64
4.38
Std Dev
1.00
1.10
1.16
0.97
1.01
1.17
3.32
0.85
70
The result shows that the level of turnover intention in the companies by averaging all
the respondents data is amounted to 3.32, which is included on the moderate
category. There are six statements in the questionnaire related to turnover intention
and the descriptive analysis for each question also presented in table 4.14 above.
Most of the statements fall in the moderate turnover intention category but there are
two statements that fall in the low turnover intention category and one statement that
fall in the high category. High average score in statement no 6 means that most of the
employee will move to another company if they are given a better compensation
packages. Two statements that fall in the low category is number 4 and 5 which
asking whether the employee have a plan to move to another company.
To capture more information regarding the turnover intention from the
respondents there are additional questions in the questionnaire that ask regarding the
first, second and third factor that the respondents thing give the most influence to
their turnover intention.
Table 4.15 Factor Influencing Turnover Intention Result

Factors
1st Factor
2nd Factor
3rd Factor
Better job offer from other company

No appreciation on the job that I do
Small opportunity for promotion
Table 4.15 above indicates the questionnaire result that stated that most
respondents chose the first factor that influence turnover intention is if they receive a
better offer from the other company. The second factor is if they do not feel
appreciated and the third factor is if there is only a small chance of promotion.
71
4.5 Job Satisfaction Analysis

Descriptive analysis was conducted to understand the job satisfaction level in
the three IT consulting companies. Table 4.16 is the summary of job satisfaction and
its dimension descriptive analysis. A mean score 3 represents a low job satisfaction,
mean score between 3 and 4 represents a moderate satisfaction while a mean score
4 represents high job satisfaction. The result shows that the level of job satisfaction in
the three selected IT consulting companies is amounted to 3.89 that according to
Spector (1997) fall on the moderate satisfaction category. The satisfied category fall
on 4 and above 4 average score while moderate category fall between 3 and 4 average
score. The level of job satisfaction in the three IT consulting companies even though
it is fall on the moderate category but almost reach the bottom floor of satisfied
category.
Table 4.16 Job Satisfaction Descriptive Analysis

Dimension
Coworkers
Supervision
Nature of Work
Communication
Contingent Rewards
Promotion
Operating Condition
Pay
Fringe Benefits
Job Satisfaction
Mean
4.44
4.42
4.38
4.13
3.68
3.67
3.62
3.41
3.25
3.89
Std Dev
0.79
0.97
0.84
0.89
0.94
1.01
0.95
0.91
1.05
0.64
By analyzing further on the average score of the dimension of job satisfaction,

it can be seen that the highest score dimension is the coworkers (4.44) which fall in
the satisfied category. It is then followed by supervision, nature of work,
communication, contingent rewards, promotion, operating condition, pay and the
lowest dimension is the fringe benefits (3.25) which still fall on the moderate
satisfaction category.
72
4.5.1
Pay
Pay dimension falls on the 8th rank and is one of the lowest score dimension in
current study. Even though pay dimension is in the bottom rank dimension, pay
dimension is still in moderate satisfaction category with average score 3.41. There are
four questions related to pay satisfaction and the summary of the answers are given in
the table 4.17 below. Statement no 1, 3 and 4 fall in the moderate satisfaction
category while there is only one statement which fall in not satisfied category which
is statement number 2 with the average score 2.88. Question no 1, 3 and 4 is related
to satisfaction with the pay amount and the chances of getting a pay increase in the
company, while question no 2 is the statement related to satisfaction with the time
distance between each pay raises. The result show that there is dissatisfaction with the
time distance or the interval between each pay raises.
Table 4.17 Pay Descriptive Analysis

Statement
1
2
3
4
4.5.2
Keyword
Fair amount of pay
Pay raises interval
Company appreciation through pay
Pay raises chances
Mean
3.49
2.88
3.55
3.74
Std Dev
1.07
1.24
1.13
1.27
Promotion
Promotion dimension falls on the 6th rank in overall with average score 3.67
which falls on the moderate satisfaction category. There are 4 statements related to
promotion satisfaction in the company and the summary of the answers are given in
the table 4.18 below.
73
Table 4.18 Promotion Descriptive Analysis

Statement
1
2
3
4
Keyword
Promotion chances
Promotion fairness
Promotion interval
Promotion chances
Mean
3.37
3.91
3.85
3.57
Std Dev
1.25
1.38
1.25
1.25
In overall all the statements average score fall in the moderate satisfaction category
which mean the employee are moderately satisfied with their chances of being
promoted, the fairness of promotion process and the time needed to get promoted.
4.5.3
Supervision
Supervision dimension falls on the 2nd rank in overall with average score 4.42
which falls on the satisfied category. This dimension is one of the top dimensions in
current study. There are 4 statements related to supervision satisfaction in the
company and the summary of the answers are given in the table 4.19 below.
Table 4.19 Supervision Descriptive Analysis

Statement
1
2
3
4
Keyword
Supervisor competency
Supervisor fairness
Supervisor awareness
Supervisor likeability
Mean
Std Dev
4.53
4.62
4.28
4.28
1.20
1.15
1.16
1.15
In overall all the statements average score fall in the satisfied category which mean
the employees are satisfied with the competency of their direct supervisor, the
attention given to them by their direct supervisor and also the fairness of their direct
supervisor.
74
4.5.4
Fringe Benefits
Fringe benefits dimension falls on the 9th rank in overall with average score
3.25 which falls on the moderate satisfaction category. This dimension is the lowest
rank dimension in current study. There are four statements related to fringe benefits
satisfaction in the company and the summary of the answers are given in the table
4.20 below.
Table 4.20 Fringe Benefits Descriptive Analysis

Statement
1
2
3
4
Keyword
Benefits satisfaction
Benefit comparison
Benefit equitability
Benefit fairness
Mean
3.16
3.26
3.21
3.36
Std Dev
1.43
1.20
1.19
1.28
In overall all the statements average score fall in the moderate satisfaction category
which mean the employees are moderately satisfied with the benefit they received
and also with the comparison with the benefits given by other company.
4.5.5
Contingent Reward
Contingent reward dimension falls on the 5th rank in overall with average
score 3.68 which falls on the moderate satisfaction category. There are four
statements related to contingent reward satisfaction in the company and the summary
of the answers are given in the table 4.21 below. In overall the statements average
score fall in the moderate satisfaction category which mean the employees are
moderately satisfied with the reward they receive when they do a good job. There is
one statement that falls in a satisfied category, that is question no 2 which mean that
the employee satisfied with the feeling of being appreciated in the company.
75
Table 4.21 Contingent Reward Descriptive Analysis

Statement
1
2
3
4
4.5.6
Keyword
Reward fairness
Appreciation
Reward availability
Reward fairness
Mean
3.76
4.00
3.24
3.71
Std Dev
1.26
1.22
1.21
1.19
Operating Condition
Operating condition dimension falls on the 7th rank in overall with average
score 3.62 which falls on the moderate satisfaction category. There are 4 statements
related to operating condition satisfaction in the company and the summary of the
answers are given in the table 4.22 below. In overall the statement average score fall
in the moderate satisfaction category which mean the employees are moderately
satisfied with the policy and the procedure in the company and also with the amount
of administration thing that they have to do in the company.
Table 4.22 Operating Condition Descriptive Analysis

Statement
1
2
3
4
4.5.7
Keyword
Procedures, policy
Procedures, policy
Job quantity
Paperwork
Mean
3.67
3.81
3.41
3.58
Std Dev
1.39
1.34
1.12
1.12
Coworkers
Coworkers dimension falls on the 1st rank in overall with average score 4.44
which falls on the satisfied category. This is the top job satisfaction dimension in
76
current study. There are 4 statements related to coworkers dimension satisfaction in

the company and the summary of the answers are given in the table 4.23 below.
Table 4.23 Coworkers Descriptive Analysis
Statement
1
2
3
4
Keyword
Coworkers likeability
Competency
Coworkers enjoyment
Bickering and fighting
Mean
4.95
3.88
4.85
4.09
Std Dev
0.84
1.26
0.95
1.35
In overall the statements average score fall in the satisfied category which mean the
employees are satisfied with their coworkers. The highest average score is on
statement no 1 which is amounted to 4.95. The question is about how much an
employee like their coworker. However, statement no 2 falls in the moderate
satisfaction category which amounted to 3.88. This mean even though in overall the
employee satisfied with their coworkers but they are only moderately satisfied with
the competency of their coworkers.
4.5.8
Nature of Work
Nature of work dimension falls on the 3rd rank in overall with average score
4.38 which falls on the satisfied category. This is one of the top job satisfaction
dimensions in current study. There are 4 statements related to nature of work
4.24 below.
Table 4.24 Nature of Work Descriptive Analysis

Statement
1
2
3
4
Keyword
Job meaning
Job likeability
Job pride
Enjoyable job
Mean
4.03
4.46
4.61
4.41
Std Dev
1.30
1.22
0.94
1.04
77
In overall the statements average score fall in the satisfied category which mean the
employees are satisfied with the nature of their job. They are proud and think that
they are job meaningful and enjoyable as well.
4.5.9
Communication
Communication dimension falls on the 4th rank in overall with average score
4.13 which falls on the satisfied category. This is one of the top job satisfaction
dimensions in current study. There are four statements related to communication
4.25 below. In overall the statements average score fall in the moderate satisfaction
category only one question no 1 that falls in the satisfied category. However,
statements no 2, 3 and 4 are almost fall in the satisfied category. In overall the
employee seems satisfied with the flow of information in the company related to the
purpose of the organization and job task and any other relevant information.
Table 4.25 Communication Descriptive Analysis

Statement
1
2
3
4
Keyword
Internal communication
Organization goal
Latest information update
Work assignment
Mean
4.63
3.99
3.95
3.95
Std Dev
1.02
1.29
1.20
1.25
To capture more information regarding the job satisfaction from the

respondents there are additional questions that ask regarding the first, second and
third factor that the respondents think give the most influence to job satisfaction.
Table 4.26 below indicates the questionnaire result, which stated most of the
respondents think that the first factor that influences job satisfaction is the
appreciation from the management of what the employee do on the job. The second
78
factor is the fairness and transparency in the promotion process. The third factor is
related to coworkers that help each other out in doing the job.
Table 4.26 Factor Influencing Job Satisfaction Result

Factors
1st Factor
2nd Factor
3rd Factor
Appreciation of the job that I do

Promotion process that is fair and transparent
Coworker that help each other out
4.6 HR Practices Analysis

Descriptive analysis was also conducted to understand the perceived HR
practices level in the three IT consulting companies. Table 4.27 is the summary of
perceived HR practices and its dimension descriptive analysis. A mean score 3
represents a low satisfaction, mean score between 3 and 4 represents a moderate
satisfaction while a mean score 4 represents high satisfaction towards company HR
practices. It can be seen from the result that the level of perceived HR practices by
averaging all the respondents data is amounted to 3.50 which is fall on the moderate
category.
Table 4.27 HR Practices Descriptive Analysis

Dimension
Training & Development
Pay Practices
HR Practices
Mean
3.41
3.71
3.18
3.50
Std Dev
1.18
0.97
0.97
0.84
79
Analyzing further on the average score of the dimension of HR practices it

can be seen that the highest score dimension is the performance management (3.71)
followed by training and development (3.41) and the lowest dimension is the pay
practices (3.18). All of the dimensions also fall on the moderate satisfaction category.
4.6.1

A Training and development practice is in the 2nd position with average score
3.41 which falls in the moderate category. There are four statements originally related
to training and development in the company but one of the question is removed due
to the low validity level. The summary of the answers are given in the table 4.28
below.
Table 4.28 Training and Development Descriptive Analysis

Statement
1
2
3
Keyword
Training availability
Training opportunity
Training quality
Mean
3.43
3.43
3.38
Std Dev
1.29
1.28
1.23
In overall the statements average score fall in the moderate satisfaction category
which mean the employees are moderately satisfied with the chances to get a training
and the quality of the training and development program.
4.6.2
A performance management practice is in the 1st position with average score
3.71 which falls in the moderate category. There are four statements related to
training and development in the company and the summary of the answer is given in
the table 4.29 below.
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Table 4.29 Performance Management Descriptive Analysis

Statement
1
2
3
4
Keyword
Appraisal interval
Appraisal fairness
Feedback
Appraisal transparency
Mean
3.81
3.59
3.82
3.61
Std Dev
1.14
1.28
1.07
1.29
In overall the statements average score fall in the moderate satisfaction category
which mean the employees are moderately satisfied with the performance appraisal
process regarding its interval, fairness, feedback quality and transparency.
4.6.3
Pay Practices
Pay practices is in the 3rd position with average score 3.18 which falls in the
moderate category. Pay practices is the lowest dimension of HR practices in current

study. There are four statements related to pay practices in the company and the
summary of the answer is given in the table 4.30 below. In overall the statements
average score fall in the moderate satisfaction category which mean the employee is
moderately satisfied with the pay and benefit policy in the company. However, the
average score is quite low and is slightly above not satisfied category.
Table 4.30 Pay Practices Descriptive Analysis

Statement
1
2
3
4
Keyword
Adequate Pay
Pay increment satisfaction
Benefit satisfaction
Benefit comparison
Mean
3.45
3.02
3.14
3.12
Std Dev
1.16
1.12
1.21
1.17
Table 4.31 below indicates the data whether the respondents have received
socialization about HR practices in the company or they have not received it. The
result shows that most of the respondents amounted to 78.29% have not received the
HR practices socialization from their company.
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Table 4.31 HR Practices Socialization

Statement
Not Received HR Practices Socialization
Received HR Practices Socialization
N
119
33
%
78.29%
21.71%
Table 4.32 below indicates the data about the perceived effectiveness of HR practices
socialization from the respondents who had received it from the company. The result
show that 60.61% of the respondents feel that the socialization process is somewhat
effective while 27.27% of them feel that the process is effective and the other 12.12%
feel the process is not effective.
Table 4.32 HR Practices Socialization Perceived Effectiveness

Statement
Effective
Somewhat Effective
Not Effective
N
9
20
4
%
27.27%
60.61%
12.12%
4.7 Discussion
4.7.1
Mediating Role of Job Satisfaction on the Relationship between HR

practices and Turnover Intention
Empirical research is conducted in this study based on the conceptual research
developed by Mudor and Tooksoon (2011) that stated job satisfaction mediate the
relationship between HR practices and turnover intention. On the way to prove the
mediating role of job satisfaction, direct relationship between the variables needs to
be tested and the result is similar with previous research stated in chapter two. First,
current study proved that HR practices have a significant negative relationship toward
turnover intention. This result is similar and supported the previous researches stated
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in table 2.2 in chapter 2. Second, HR practices also have a significant positive

relationship toward job satisfaction. This result is similar and supported the previous
researches given in table 2.3 in chapter 2 that stated HR practices have a positive
relation with job satisfaction. Third, current study also proved that job satisfaction
have a high significant negative relationship toward turnover intention which this
result also similar and supported by the previous researches given in table 2.1 in
chapter 2. Finally, current study proved that job satisfaction fully mediate the
relationship between job satisfaction and turnover intention and this finding is
supported Mudor and Tooksoon conceptual research in 2011.
Full mediation means that when job satisfaction put as a control then
relationship between HR practices and turnover intention is no longer significant.
This imply that management need to realize that they need to put attention on job
satisfaction as well when implementing HR practices in order to reduce turnover
intention. HR practices refer to activities that try to improve competencies,
commitment and give motivation to the employees (Verma, Malhotra & Bedi, 2012;
Wright & Kehoe, 2008). Improving commitment or retaining activities is related to
Herzberg Hygiene factors that need to be fulfilled in order to prevent job
dissatisfaction for example is pay practices. Giving employee motivation is related to
the Herzberg motivators that can lead to job satisfaction, for example performance
management that linked to reward and recognition. HR practices need to be designed
to improve employee job satisfaction and at the end a high job satisfaction would
reduce the turnover intention.
Further analysis is taken to understand better what specific dimension that
contributed the most to the model. There are three dimensions of HR practices used
in this study including pay practices, performance management and training &
development. From the result it can be seen that only performance management that
are significant to turnover intention through a full mediation relationship both with
coworkers and communication dimension (see figure 4.5 below). This finding is
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different with Hequet (as cited in Mudoor & Tooksoon, 2011) that stated pay
practices and training and development have a significant negative relationship.
Training in the three IT consulting companies is very important since it will
enable the employee to work on a specific position, for example: network engineer,
SAP consultant, Java programmer and others. This specific position is also needed in
other company, which gives the homework for management to think whether
providing the employee with training will reduce the turnover intention or maybe it is
a double edge sword that will give the employee an opportunity to leave the
company. Many IT consulting companies use a contract agreement with the employee
to tackle this issue, for instance employees will be able to have a training only if they
signed a several year contract to stay in the company.
Pay practices as stated before is closely related to pay satisfaction and is one
of the hygiene factors in Herzberg model. Herzberg always refers hygiene factors as
the carrot and stick mechanism which provides employees with something or
incentives in order to make them do something. This carrot and stick mechanism will
just provide a short run success since job satisfaction is intrinsic to the job itself. This
is the reason why management needs to pay attention to the motivator factors as well.
Performance management is related with the motivator factors since it influence the
development, promotion, reward and recognition of the employees.
Figure 4.5 Job Satisfaction Mediating Relationships on the Relationship

between HR Practices and Turnover Intention
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There is another reason that might explain the differences in the findings from
past researches in term of the dimension that gives a significant influence. Andreassi,
Lawter, Brockerhoff, and Rutigliano (2012) researched across 48 nations and found
that the differences might be due to cultural and industry differences.
There are two job satisfaction dimensions that have a significant influence to
turnover intention, they are coworkers and communication. As stated in chapter two
that according to Simmons (2006) since human is a social beings then the opportunity
to work with coworkers in the working environment have a big influence to job
satisfaction. In the three IT consulting companies, employee is required to work in a
team because the nature of the job itself. IT professional mostly will work in a
clients office in a project team. Usually a project team consists of a project manager,
functional consultant, technical consultant, and quality assurance. This type of work
makes employees depend on their coworkers to finish the job. Luthans in Kehinde
(2011) said that coworkers can be the source of comfort, support, advice and also
assistance, this mean not only the competency of the coworkers that matters but also
the level of the relationship within the team. Raabe & Beehr (2003) argued about how
coworkers can influence not only a positive behavior but also a bad behavior is also a
proof that coworkers dimension is important in the working environment. The third
factor, which influences job satisfaction that captured in the questionnaire, is also
related to how coworkers provide support to each other. Some of the respondents give
comments on the questionnaire as well related the necessity to improve coworkers
dimension:
There is a hope that Coworkers will always cooperate in doing the job
(Respondent no 24).
Employee gathering needs to be held annually to improve the bond between

the coworkers (Respondent no 34, Respondent no 117 & Respondent no 125).
Kinship in the company needs to be maintained and improved (Respondent no

52 & Respondent no 113).
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Communication is also the dimension of job satisfaction with a significant

relationship. According to Sias in 2005, a good relationship with the coworkers in
working environment will improve the communication or information sharing as
well. The result from current study supported the statement by Carrire and Bourque
in 2009 who argued that a good internal communication will improve job satisfaction
and also support Mohamad (2008) who said that good internal communication will
also reducing turnover intention among the employees. There are comments from the
respondents related to communication dimension:
Management communication with the team should always follow the

procedure. If there is no communication procedure then it needs to be
developed to ensure there is no misunderstanding (Respondent no 79).
Some job tasks are not well communicated (Respondent no 84).

Communication in the company needs to be improved in order to reduce
misunderstanding (Respondent no 115).
There is a big challenge for communication in the three selected IT consulting
companies since the job require the employee to work outside the office in the
clients office or site. Hence communication especially vertical communication from
the management to the employee is quite difficult. Misunderstanding sometimes
happen and can cause a potential damage to the project and to the company.
Questionnaire result as stated previously show that most of the respondents
have not received the socialization about the HR practices in the company and it
shows that most of the respondents that received the socialization does not think the
socialization is effective. Socialization of HR practices is a part of communication
and need to be improved. Employee need to understand what program that company
has provided for them to be able to appreciate it as stated by Leo and Wright (2005)
that the employee knowledge and perception about fringe benefits which in this case
representing a HR pay practices program will influence job satisfaction.
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Both communication and coworkers play a significant role on predicting

turnover intention. IT consulting companies need to do their homework and do
improvement internally while also be aware of the competition from other company
as the information from the questionnaire stated that most of the respondents claimed
their 1st factor that make them quit is the better offer from other company. Company
cannot separate the internal factor like communication and coworkers with the
external factor like better job offer, since a better job offer means a better pay,
promotion chances, coworkers, communication, benefits which is the internal factor
from other company. By improving own internal process then hopefully it will
eliminate the competition and reducing the external factor to quit.
There is only one dimension of HR practices as the independent variable that
have a significant influence toward job satisfaction, which is performance
management. Performance management has a beta coefficient 0,258 toward
coworkers dimension and 0,411 toward communication dimension. Fay (2006)
argued that if employees were satisfied about how the performance appraisal is
conducted in the company then they would have a higher level of job satisfaction.
This argument also supported by Abdullah, Bilau, Enegbuma, Ajagbe & Ali (2011).
The influence of performance management to job satisfaction also can be seen
from the questionnaire. Most of the respondents put the appreciation of what they do
in the company as the first factor. Appreciation is part of a reward policy but
performance appraisal should be the source of the appreciation. Management reward
the employee based on their performance with a fair and transparent process so they
will feel appreciated on their hard work. Some comments from the respondents is
given below:
Performance appraisal needs to be done regularly (Respondent no 16 &

Respondent no 20).
Employees need to be appreciated on what theyve achieved with one of the

way is by conducting a performance appraisal and link it to the promotion,
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pay and benefit increase (Respondent no 5, Respondent no 18 & Respondent

no 112).
These comments from the respondents also supported by the 2nd factor that cause job
satisfaction in the questionnaire, i.e., promotion process that is fair and transparent.
The 1st and 2nd factor will be satisfied if company management conducted a
performance appraisal that is fair and transparent and use the result as the based on
the promotion or pay increase.
Further analysis of the dimensions indicates that performance management
has a significant influence to coworkers and communication. Comment from
respondents below show the link between performance management and coworkers:
Company needs to be more considerate before promoting or putting someone

into a position (Respondent no 68).
Performance appraisal process is not transparent, there are many case where
someone that is not suitable or worthy are promoted, while someone who is
more worthy for promotion was left behind (Respondent no 70).
Performance appraisal process needs to be improved. Employees

professional skills and not the closeness of his/her relationship to the
management should be considered as the primary criteria (Respondent no 72
& Respondent no 88).
Many unfit promotions took place, employees who were promoted cannot
manage their subordinate well (Respondent no 84).
The respondents comments show that there is dissatisfaction related to the

performance appraisal that is not objective and transparent which link to the
promotion of a wrong person. Perceive injustice like this can deteriorates the
relationship between the coworkers. An employees who did not get promoted and felt
that there is an injustice took place in the process will most likely have a bad
impression toward the people who get the promotion and this will instantly damage
the relationship between them. Lee in 2006 stated that bad performance appraisal
88
could create rivalry, politics, inspire hatred and distrust among the employees. Bretz,
Milkovich and Read in Warokka, Gallato and Moorthy (2012) put the fairness of the
performance appraisal as the most important issues. Skarlicki and Folger in Gupta &
Swaroop (2012) emphasize the negative effect of this by stating an unfair, political
and biased performance appraisal will create extreme job dissatisfaction. In the three
IT consulting companies where most project have to be done in a team, a damage
coworker relationship in the team will affect the productivity of the project.
Performance management can be related in building the competency of the employee.
Feedback and advice regarding employees works will be given in the performance
management activities, which can direct employee toward team or organization goals
and improving their competency and productivity (Jenks in Debrincat, 2011).
Coworkers competency is very important since an incompetent coworker will inhibit
individual or a team to move forward in finishing the job and cause job
dissatisfaction.
Performance management also has a significant influence to communication
dimension in job satisfaction. OBoyle (2013) in his study said that performance
management can improve the communication between the management and the
employees. This is not a surprise since many communication activities involved in
performance management. As Noe, Hollenbeck, Gerhart, & Wright (2009) stated that
performance management is a process where company ensure their employee
activities is aligned with the company goals. This mean a good performance
management must ensure the company goals are communicated well from the
management to the employees. In order to maintaining the alignment to company
goal management needs to communicate or provide feedback to the employees. One
of way to give feedback is by conducting coaching activities. Communication play
important part in coaching since management has to evaluate employees by
indicating what were done well and distinguished those from that were not right. Give
advice to employee while also hearing opinion from the employee side. Respondent
no 100 also gave a comment about the necessity of performance appraisal and
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feedback process from management. A good communication process is a necessity in

order to ensure an effective performance appraisal process and a desired output.
Further analysis is taken by analyzing the total effect of the relationship
between the dimensions. The total effect from performance management to turnover
intention towards coworkers is -0.052. The total effect from performance
management to turnover intention towards communication is -0.116. This result
implies that the total effect from performance management to turnover intention
toward communication is bigger than through coworkers. As stated by OBoyle
(2013) performance management is deeply related to communication since it requires
a vertical communication with management. In 360-degree performance appraisal the
coverage of communication is widened because the performance appraisal also
include peer appraisal not only from management to the employees. Coefficient from
communication to turnover intention is also bigger than from coworkers. Companies
need to take special attention on their performance appraisal process and also the
quality of internal communication in the company since the total effect analysis show
that it gives the most influence to turnover intention.
4.7.2
Level of Turnover Intention

The first variable is the turnover intention with the average score of 3.32,
which falls in the moderate category. Turnover causes many damage to the company
as stated in chapter 2. A company needs to take an action to reduce the turnover rate.
Turnover intention itself cannot be translated directly to turnover action, as stated by
Morrel, Clarke and Wilkinson (2004) that there are two factors that influence
employee decision to quit the company. The first factor is the perceived desirability
of movement which is represented by the turnover average score 3.32 in current
study. The second one, which is out of the scope of this study, is the perceived ease of
movement or the perceived opportunity in getting a better job in other organization.
In order to retain employees, company needs to consider these two factors and do
improvements accordingly.
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4.7.3
Level of Job Satisfaction

The second variable is job satisfaction which fall in the moderate satisfaction
category with average score 3.89. Further analysis is taken to have a deeper look
inside the nine dimensions of the job satisfaction.
Table 4.33 Job Satisfaction Dimension Comparison from Past Studies

Sihombing
(2009)
Indonesia
Nature of Work
Coworkers
Supervision
Communication
Lumley
(2011)
South Africa
Supervision
Nature of Work
Coworkers
Pay
Promotion
Promotion
Pay
8th
Operating
Condition
Pay
Contingent
Reward
Operating
Condition
Pay
Contingent
Reward
Operating
Condition
Communication
9th
Fringe Benefits
Fringe Benefits
1st
2nd
3rd
4th
5th
6th
7th
Current Study
Yuwana
(2015)
(2011)
Indonesia
Indonesia
Coworkers
Nature of Work
Supervision
Coworkers
Nature of Work
Supervision
Communication Communication
Contingent
Reward
Promotion
Operating
Condition
Contingent
Reward
Fringe Benefits
Kaltenbaugh
(2008)
United States
Nature of Work
Supervision
Coworkers
Operating
Condition
Communication
Fringe Benefits
Fringe Benefits
Contingent
Reward
Pay
Promotion
Promotion
Table 4.33 above indicates the comparison between current study result with some
past studies result. Yuwana (2011) conducted a job satisfaction research on
Indonesian Directorate Railway. Sihombing (2009) conducted a job satisfaction
research in a retail industry in Indonesia. Lumley, Coetzee, Tladinyane and Ferreira
(2011) conducted a job satisfaction research in 4 IT companies in South Africa while
Kaltenbough (2008) conducted a job satisfaction study in United States education
industry. Below are some notable things that can be seen from the results above:
Coworkers and communication satisfaction in Indonesia is higher than South

Africa and United States.
91
Supervision satisfaction in South Africa and United States are higher than
Indonesia.
Indonesia has the fringe benefits dimension as the lowest dimension while
South Africa and United states have promotion as the lowest one.
Job satisfaction dimension rankings in various industry in Indonesia are very

similar.
Hofstedes cultural theory can be used in analyzing the facts given. Figure 4.6
below indicates Hofstedes Cultural Score comparison between Indonesia, South

Africa and United States. According to Andreassi, Lawter, Brockerhoff, and
Rutigliano (2012), culture with high individualism are less likely to value working
together with the coworkers while culture with high collectivism will prefer working
together as a team. Indonesia can be considered to have a collectivism culture while
South Africa and United States can be considered to have an individualism culture as
given in figure 4.6. This could be the reason why coworkers satisfaction is higher in
Indonesia. There are some comments from current study that supported the fact that
coworkers dimension is important in collectivism culture. For example respondent no
24 hopes that the coworkers will always cooperate and helping each other in doing
the job, respondent no 52 and 113 said kinship among the coworkers needs to be
maintained and improved. The job in the three IT consulting companies specifically
requires a lot of teamwork, this condition make coworkers becomes more important.
It can be seen as well that communication dimensions satisfaction in
Indonesia is higher than South Africa and United States that have an individualism
culture. This is understandable because peoples with a collectivism culture value their
group and teamwork as stated previously. Information sharing between each other is
better as Sias (2005) states that good relationship with coworkers or team in working
environment will improve information sharing or communication. In the three IT
consulting companies where most of the work are conducted outside the office
communication becomes important. Misunderstanding often occurred because of this
92
condition like comments from respondent 115 which said communication needs to be
improved in order to reduce the misunderstanding.
Since current study also proved that coworkers and communication dimension
have significant influence to turnover intention, company in Indonesia should put
more attention on these dimensions. Another reason is coworkers can influence either
positive or negative behavior (Raabe & Beehr, 2003). If an employee communicates a
positive comment about the job then most likely the new employees will also have a
positive attitude towards the job and vice versa (Aamodt, 2004). This effect will be
amplified in collectivism culture like Indonesia where teamwork and communication
are valued.
91
100
80
60
78
65
49
63 62
46
40
62
Indonesia
48 49 46
34
40
South Africa
26
US
14
20
0
Power
Distance
Individualism Masculinity
Uncertainty
Avoidance
Long Term
Orientation
Figure 4.6 Hofstedes Cultural Score

Source: The Hofstede Centre (2015)
In overall supervision dimensions satisfaction in United States and South

Africa are higher than Indonesia. Indonesia is a country where the power distance
score is high. According to Hofstede (2011), in high power distance culture,
inequality in power is expected in working environment. There will be a distance
between the supervisor and the subordinates. Respondent no 10 in current study
commented about this distinction among the employees that effect communication
quality in the company. HR manager of PT XYZ said that most of the subordinates in
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a meeting always accept their supervisor decision without giving their point of view
first because of their fear toward their supervisor (Triastuti, personal communication,
January 12, 2015). This clearly can decrease the communication quality in the
company as the comment given by respondent no 10. Meanwhile, country with lower
power distance as United States and South Africa will generally considered to be
equal regardless the position. Employees can have the argument with their supervisor
and there is no distance between them. Andreassi, Lawter, Brockerhoff, and
Rutigliano (2012) argued that employee from high power distance culture will value
equality in the workplace. This might be the reason why satisfaction in supervision
dimension is higher in United States and South Africa.
Country with higher score of masculinity according to Andreassi, Lawter,
Brockerhoff, and Rutigliano (2012) places more value on achievement than the lower
country since masculinity is deeply related with competitiveness. This is the reason
why in United States and South Africa which have a higher masculinity have a
promotion dimension in the bottom rank while in Indonesia which have a lower
masculinity score have the fringe benefits in the bottom one. Employees in masculine
culture will put more attention on achievement. Promotion is associated with
achievement so if management do not put much attention on the promotion
dimension, it will easily fall into the bottom position. Another reason would be
related to Maslows hierarchy of needs model. Indonesia is a developing country
while United States and South Africa can be considered as developed country. Since
Indonesia is still developing so most of the people will put more attention on the
basic needs and safety or the lower part of Maslows hierarchy of needs model. It is
the reason why fringe benefits dimensions get more attention and harder to satisfy.
There are a lot of comments from current study respondents that are related to their
dissatisfaction in fringe benefits. They demanded a raise in the benefits along with the
raise of Indonesias living cost. Meanwhile most people in developed country have
fulfilled their basic needs and safety. Government supports the society very well with
medical insurance, housing, pension fund, and others. Therefore, the people move to
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the next level of needs, which is esteem, and self-actualization, which is deeply
related with promotion.
The job satisfaction dimensions ranking various industries in Indonesia is very
similar with each other. Current study conducted the research on IT consulting
industry, Sihombing (2009) in retail industry while Yuwana (2011) in public
company directorate railway. Pay and fringe benefits always sit in the lowest position
while coworkers, nature of work, supervision, and communication is always in the
top four positions.
Further analysis on current study dimensions ranking found that coworkers
dimension ranks first in term of the level of satisfaction. This dimension is in the
satisfied category. It is stated in chapter 2 that peoples are a social being and a
coworkers can be the provider of comfort, support, advice and also assistance to the
individual workers (Luthans in Kehinde, 2011). In the three IT consulting companies,
an employee is required to work in a team because the nature of the job itself. IT
professional mostly will work in a clients office in a project team. Usually a project
team consists of a project manager, functional consultant, technical consultant, and
quality assurance. This type of work makes employees depend on their coworkers to
finish the job. Long working hours in IT project makes individual exposure to the
other individual relatively long. This along with foreign working environment in the
clients office will increase the chance employees to bond with each other.
Demographic factor also plays the important role, people with a similarity will tend to
have an easier time forming relationship (Williams, Parker & Turner, 2007). Looking
at the demographic statistic from the employee it can be seen that most of them are in
the same age around 25-30 years old (50.7%) and same education background, which
is S1 degree (71.7%).
Supervision dimension ranks 2nd and falls in the satisfied category. Interview
with the HR Manager of the PT XYZ reveals that the company invest on a leadership
training to improve leadership capability of their employee. However, the training is
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not conducted in regular interval (Triastuti, personal communication, January 12,

2015). Though supervision dimension already in the satisfied category, it is still needs
to be improved. There are some comments that show dissatisfaction in the supervisor
competency and leadership:
Supervisor needs to be more firm in pushing employees to do their duty

(Respondent no 77).
Supervisor needs to give examples not only giving order and dictating the
subordinate (Respondent no 81)
Some supervisors do not have enough competencies and could not manage
their team (Respondent no 84).
Nature of Work dimension ranks 3rd and falls in the satisfied category. It
means that the employees are satisfied with their job meaning; pride and they are
enjoying their job. Job as an IT professional in the three IT consulting companies
required an employee to work long hour but sometimes employee enjoy the job
because of their hobby usually are in technology. According to interview with the HR
Manager of PT ABC, most of the candidates he interviewed for IT professional
position said that they will enjoy the job because they have a hobby in technology.
The candidates also said they will be proud of the job since they will be giving a
consultancy to the client regarding technological aspect. Sometimes they feel superior
to the client (Masmono, personal communication, April 2, 2015).
Communication dimension ranks 4th and falls in the satisfied category.
According to the result though as overall the respondents satisfied in the
communication dimension but some of the questions only result on moderate
satisfaction category. For example, the communication about job task, company goal
and about the latest news in the company. Communication is one of the important
dimension and needs to be improved as stated previously.
Contingent Reward dimension ranks 5th and falls in the moderate satisfaction
category. Question regarding the reward availability scored the lowest then the other
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questions in contingent reward dimension. Below is given some comments that

supported the result:
Management needs to prioritize employees in giving the reward and

appreciation (Respondent no 5).
Appreciation needs to be given to the employee (Respondent no 117).
Issue regarding the fairness of the reward also found from the comments. This issue
is related to performance management practices as stated previously.
Promotion dimension is rank 6th and falls in the moderate satisfaction
category. Promotion score quite low and is in the bottom four position. There are
comments that asked for promotion that need to be conducted more often
(Respondent 60). Issue regarding the fairness of the promotion also found from the
comments.
Operating Condition dimension is rank 7th and falls in the moderate
satisfaction category. The three IT consulting companies required their employee to
be mobile and working outside the office. Management needs to have a control on the
employees that are mobile and cannot be supervised directly. Consequently, a
complex policies and procedures have to be developed to maintain control. This have
a downside effect on the operating condition dimension because employees need to
do a lot of administration work like timesheet and other document works for example
and sometimes this can interfere their main task.
The two bottom positions are Pay and Fringe Benefits. Pay dimension on rank
8th which falls in the moderate satisfaction category and Fringe Benefits dimension
on rank 9th which also falls in the moderate satisfaction category. The lowest score
question is regarding the interval of pay raises. There are also some comments
regarding these dimension:
Prioritize on employee first on giving the pay raises and bonus (Respondent
no 5).
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Increase fringe benefits amount especially health benefits (Respondent no 17).
Current pay raises and fringe benefits needs to be reviewed by management

(Respondent no 52).
Financial power of the company is closely related with this satisfaction. Some big
companies will have an advantage on giving a better compensation package for the
employees while smaller size company wouldnt have the same kind of advantage.
4.7.4
Level of Perceived HR Practices

HR practices variable have an average score amounted to 3.50, which falls in
the moderate satisfaction category. With the average score fall on moderate
satisfaction category it means there is still a room to improve. IT consulting
companies in Indonesia especially the medium-sized company usually do not put
much attention on the HR practices in their company. One of the reasons is because
of the amount of investment needed in building HR practices. According to Long,
Ajagbe and Kowang (2013) medium enterprises usually lack of financial resources.
Companies need to invest not only on money but also big investment on time where
usually some companies dont have the luxury to spend. Comment from respondents
supported the opinion that functionality of human resources management in the
company needs to be improved. Below are some of the comments:
Human Resources department needs to be improved (Respondent no 6).
Human Resources department is not functioning. Company needs to refer to

HR best practices in a more advanced company (Respondent no 7).
Company needs to optimize the function of Human Resource Management

and people development (Respondent no 61).
A better HR practices need to be conducted in the company, not only focusing

on the result but also conflict that happen in the project (Respondent no 100)
Another notable thing from the result is regarding the socialization of the HR
practices itself to the employee. Result shows that 78.29% employees have not
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received socialization about HR practices and most of those who had received it think
that the socialization is not effective. Comments below supported this finding:
Management needs to create a solid practices in HR and socialize it to the

employees (Respondent no 78).
HR practices need to be socialized and HR department needs to evaluate the

level of employee understanding after the socialization (Respondent no 85).
Further analysis is taken to look into the level of HR practices dimension.
First is the training and development practices which falls on the moderate
satisfaction category. Company can improve the satisfaction level of the training in
term of availability, opportunity to have it and the quality. Below is some comments
from the respondents related the necessity of training improvement:
Company needs to provide a certified training to the employees (Respondent

no 20 & Respondent no 34).
Quantity of the training needs to be increased (Respondent no 60 &

Respondent no 104).
Training have to be given before deploying employees to project (Respondent

no 113).
Second dimension of HR practices is performance management, which also
falls on the moderate satisfaction category. There are many comments related to
performance management from the respondents regarding its fairness, interval, and
transparency. Cleary, management needs to improve the performance management
practices to improve job satisfaction.
Third dimension of HR practices is pay practices which is also falls in the
moderate satisfaction category but stand in the last position compare to another HR
practices. This practices have a close relationship with pay dimension in job
satisfaction, since the success in pay practices design by the company will be
reflected on the satisfaction level of pay in job satisfaction dimension. Pay practices
in a company also have a link to the company financial power. A big companies will
99
have more advantage and financial power in giving and designing a pay practices
while a small and medium companies do not have this advantage. A satisfaction on
the pay practices does not always come from the amount only but also on the policy
or procedures on how it is distributed. Comments from respondents related to pay
practices is given below:
Pay cuts policy when an employee coming late to the office is not fair and
effective. The policy needs to be reviewed. (Respondent no 4, Respondent no
22 & Respondent no 26).
Benefits given to the employees need to be reviewed (Respondent no 46).
Incentives need to be given on 6 months period to give more motivation to the

employees (Respondent no 75).
Company needs to put more attention on employees welfare (Respondent no

15, Respondent no 52 & Respondent no 104).
4.8 Managerial Implication

Current study shows current level of each variable and its dimensions. This
information is valuable for the management of the company which enable them to
have a visibility of their current condition. This knowledge is the first step in
improving the business especially in human resource management.
Current study found that job satisfaction is fully mediating the relationship
between HR practices and turnover intention. This means management needs to
design HR practices that can influence job satisfaction which at the end will influence
the turnover intention. Management needs to review on the HR practices socialization
process as well since the questionnaire result show that most of the employees
havent received the socialization yet and for those who received it think that the
process is not that effective. There is a probability for respondents who score low on
the perceived level of HR practices is caused by minimum knowledge of the HR
practices available in the company.
100
Looking further, current study found that performance management through

communication satisfaction and coworkers satisfaction is giving a significant
influence to turnover intention. It means that management needs to pay a lot of
attention to their performance appraisal process, which can improve both coworkers
and communication of job satisfaction dimension. Moreover, performance appraisal
which linked to reward and promotion can improve motivator factors and lead to a
higher job satisfaction in the company.
As stated in chapter 2, Herzberg separate two cluster of factors, motivator
factors that can influence job satisfaction and hygiene factors that cannot influence
job satisfaction but can cause job dissatisfaction when it is not fulfilled. First,
management needs to pay attention on the motivator factors. Nature of work is one of
the Herzberg motivator factors. Companies need to maintain their employees feeling
toward their job and encourage them to be proud of what they do. This will bring
intrinsic motivation and increase employees job satisfaction. Coworkers and
communication dimension can be classified to Herzberg hygiene group which mean
they cannot increase job satisfaction. Meanwhile, current study found that both of
them are influencing job satisfaction in the three IT consulting companies. The
differences might be caused by the nature of IT consulting industry itself in which
coworkers and communication are very important in delivering the services. Thus,
the three companies need to put more attention and improve the communication and
coworkers dimension. Another hygiene factor is supervision. Though it is categorized
as a hygiene factors but company still needs to put attention on it since it is closely
related to performance management as stated in chapter 1 previously. Improving both
performance management and supervision satisfaction will influence turnover
intention at the end.
CHAPTER 5
CONCLUSION AND RECOMMENDATIONS
5.1 Conclusion
Job satisfaction fully mediates the relationship between HR practices and
turnover intention. Looking further into the dimension level current study found that
coworkers and communication dimension fully mediate the relationship between
performance
management
and
turnover
intention.
Both
coworkers
and
communication dimensions in collectivism culture like Indonesia is very important

since teamwork and each other support is valued more than in a country with
individualism culture.
The level of turnover intention in the three IT consulting companies falls on
the category of moderate while the level of job satisfaction falls on the category of
moderate satisfaction. Coworkers, supervision, nature of work, and communication
dimension occupy the top 4 positions in their average score respectively. All four
dimensions fall in the satisfied category. Coworkers is important in the three IT
consulting companies which requires a lot of teamwork in order to finish the job.
Communication is the important dimension as well since most of the three IT
consulting companies employees work outside the office and misunderstanding often
took place. Most of the employees feel proud and enjoy their job since they have a
intense interest in technology. The level of HR practices in the three IT consulting
companies falls on the category of moderate satisfaction. All of the dimension of HR
practices also falls on the moderate satisfaction category with the highest average
score achieved by performance management, the second highest is training and
development and the last is pay practices. Performance management is an important
practice. Since performance appraisal usually linked to reward then an unfair and not
transparent performance appraisal can easily cause dissatisfaction. Along with
101
102
communication and coworkers dimension, a good performance appraisal can reduce

employees turnover intention.
5.2 Recommendations
Present study found that coworkers and communication dimension fully
mediate the relationship between performance management and turnover intention.
The three IT consulting companies need to improve performance management as well
coworkers and communication dimension in order to decrease the turnover intention
among the employees.
Communication and performance management are very closely related since
performance management process involves a lot of internal communication activities.
Performance appraisal needs to be fair and transparent. To be able to achieve this,
company internal communication needs to be improved. Employees need to
understand the company goals or expectations, their current performance results and
how they are rated. Company can socialize HR practices regularly and always
provide coaching and feedback based on the result of the performance appraisal
(OBoyle, 2013). A performance management that is followed by a good internal
communication eventually will reduce the employees turnover intention.
Performance appraisal needs to be conducted on a regular interval to be
effective. The frequency for the optimum result for performance appraisal is still
debatable. Schraeder, Becton and Portis (2007) argued that performance appraisal
that is done quarterly can give a positive impact while Sudarsan (2009) argued that
more frequent appraisals is better. Employees will feel that the management is
concerned with their works and thus will reduce uncertainties (Spinks, Wells &
Meche, 1999).
Companies also needs to put attention on coworkers dimension especially in
company which required a lot of teamwork in delivering the services. Conflict
between coworkers will impact directly to the quality of the services. Performance
103
management and coworkers is also related with each other. Bretz, Milkovich and
Read in Warokka, Gallato and Moorthy (2012) argued that perceived fairness on the
performance review is the most important issue in the performance appraisal. If
employees believe that the process is unfair and biased, it will create extreme job
dissatisfaction (Skarlicki & Folger in Gupta & Swaroop 2012). Thus, having a fair
and transparent appraisal mentioned previously will also improve coworkers
dimension by preventing coworker conflicts.
Finally, performance management needs to be linked to promotion, bonus,
incentives or salary increase. Employee will know that company appreciates their
performance. Employees will be satisfied if their efforts are rewarded with promotion
or bonus. This activity needs to be supported by a fair and transparent performance
appraisal. The employees will fully support the management decision to appreciate
their work which in turn lessen conflict between coworkers, environmental
distraction can be avoided as well as promoting an increased level of trust within the
organization (Mayer & Gavin, 2005).
5.3 Recommendation for Further Research

Current study tried to study the relationship between the variables among IT
professional in the three IT consulting companies. Survey was conducted in
companies that can be categorized as a local medium IT consulting company. To
obtain a better understanding on the industry as a whole survey can also be conducted
to IT professional in a larger local or multinational IT consulting company.
104
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124
Appendix 1: Initial Questionnaire
Dear xxxx,
In order to improve People & Company Development in PT XYZ and to identify
factor that need to set as priority by management, please answer this following
questions honestly.
Please sent this questionnaire to xxx@XYZ.co.id at most on Friday, 5 December
2014 at 15.00 WIB.
1. What factors that make you satisfied and stay in PT XYZ?

Answer:
2. What factors that cause a dissatisfaction and reduce your working motivation
in PT XYZ?
Answer:
3. Give your opinion about PT XYZ HR department performance.

Answer:
4. Give your recommendation to increase PT XYZ employees job satisfaction in

the future.
Answer:
Regards,
xxxx
HR Personnel & Payroll
125
Appendix 2: Validity and Reliability Test Result
Pay
Factor Analysis
KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
Approx. Chi-Square
Bartlett's Test of Sphericity
Df
Sig.
.757
161.676
6
.000
Anti-image Matrices
pay1
pay2_r
pay1
pay2_r
Anti-image Covariance
pay3_r
pay4
pay1
pay2_r
Anti-image Correlation
pay3_r
pay4
a. Measures of Sampling Adequacy(MSA)
.581
-.102
-.225
-.202
.739a
-.165
-.381
-.313
-.102
.651
-.211
-.144
-.165
.782a
-.337
-.210
pay3_r
-.225
-.211
.598
-.033
-.381
-.337
.734a
-.050
pay4
-.202
-.144
-.033
.721
-.313
-.210
-.050
.788a
Communalities
Initial
Extraction
pay1
1.000
pay2_r
1.000
pay3_r
1.000
pay4
1.000
Extraction Method: Principal
Component Analysis.
Component
1
2
.668
.601
.634
.508
Total Variance Explained

Initial Eigenvalues
Extraction Sums of Squared Loadings
Total
% of Variance Cumulative %
Total
2.410
60.255
60.255
2.410
60.255
60.255
.657
16.425
76.680
.533
13.320
90.000
.400
10.000
100.000
Extraction Method: Principal Component Analysis.
126
Appendix 2: Validity and Reliability Test Result (Contd)
Component Matrixa
Component
1
pay1
.817
pay2_r
.775
pay3_r
.796
pay4
.713
Extraction Method:
Principal Component
Analysis.
a. 1 components extracted.
Reliability
Scale: ALPHA
Case Processing Summary

N
Valid
152
70.7
Excludeda
63
29.3
Total
215
100.0
a. Listwise deletion based on all variables in the
procedure.
Cases
Reliability Statistics
Cronbach's Alpha
N of Items
.774
4
Mean
Item Statistics
Std. Deviation
pay1
pay2_r
pay3_r
pay4
3.4868
2.8750
3.5526
3.7434
pay1
pay2_r
pay3_r
pay4
Scale Mean if Item

Deleted
10.1711
10.7829
10.1053
9.9145
1.06719
1.23585
1.13225
1.27376
N
152
152
152
152
Item-Total Statistics
Scale Variance if
Corrected ItemCronbach's Alpha
Item Deleted
Total Correlation
if Item Deleted
8.249
.636
.694
7.761
.581
.718
8.135
.599
.709
7.999
.509
.760
127
Scale Statistics
Variance
Std. Deviation
13.286
3.64502
Mean
13.6579
N of Items
4
Promotion
Factor Analysis

Approx. Chi-Square
df
Sig.
.792
167.847
6
.000
Anti-image Matrices
promo1_r
promo2
promo1_r
promo2
promo3
promo4
promo1_r
promo2
promo3
promo4
Communalities
Initial
Extraction
promo1_r
1.000
.597
promo2
1.000
.666
promo3
1.000
.573
promo4
1.000
.632
Extraction Method: Principal Component
Analysis.
.650
-.180
-.097
-.163
.800a
-.292
-.147
-.257
-.180
.587
-.174
-.166
-.292
.771a
-.276
-.274
promo3
-.097
-.174
.673
-.151
-.147
-.276
.811a
-.234
promo4
-.163
-.166
-.151
.622
-.257
-.274
-.234
.791a
128
Component
1
2

Initial Eigenvalues
Total
Total
2.468
61.709
61.709
2.468
61.709
61.709
.579
14.465
76.174
.496
12.397
88.571
.457
11.429
100.000

Component Matrixa
Component
1
promo1_r
.773
promo2
.816
promo3
.757
promo4
.795
Component Analysis.
Reliability
Scale: ALPHA

N
Valid
152
70.7
Excludeda
63
29.3
Total
215
100.0
procedure.
Cases
Cronbach's Alpha
N of Items
.793
4
Item Statistics
Mean
Std. Deviation
promo1_r
promo2
promo3
promo4
3.3684
3.9079
3.8487
3.5724
1.25378
1.37795
1.25418
1.25335
N
152
152
152
152
129
promo1_r
promo2
promo3
promo4
Mean
14.6974
Scale Mean if Item

Deleted
11.3289
10.7895
10.8487
11.1250
Scale Variance if
Item Deleted
Total Correlation
if Item Deleted
10.077
.587
.749
9.081
.643
.721
10.195
.568
.758
9.898
.615
.736
Scale Statistics
Variance
Std. Deviation
16.318
4.03960
N of Items
4
Supervision
Factor Analysis

Approx. Chi-Square
df
Sig.
.783
254.877
6
.000
Anti-image Matrices
superv1
superv2_r
superv1
superv2_r
superv3_r
superv4
superv1
superv2_r
superv3_r
superv4
Communalities
Initial
Extraction
superv1
1.000
.753
superv2_r
1.000
.662
superv3_r
1.000
.634
superv4
1.000
.699
Analysis.
.419
-.169
-.059
-.226
.745a
-.356
-.120
-.507
-.169
.538
-.183
-.030
-.356
.804a
-.327
-.060
superv3_r
-.059
-.183
.580
-.130
-.120
-.327
.834a
-.248
superv4
-.226
-.030
-.130
.473
-.507
-.060
-.248
.766a
130
Component
1
2

Initial Eigenvalues
Total
Total
2.748
68.695
68.695
2.748
68.695
68.695
.523
13.082
81.777
.450
11.256
93.033
.279
6.967
100.000

Component Matrixa
Component
1
superv1
.868
superv2_r
.814
superv3_r
.796
superv4
.836
Component Analysis.
Reliability
Scale: ALPHA
N
Valid
152
70.7
Excludeda
63
29.3
Total
215
100.0
procedure.
Cases
Cronbach's Alpha
N of Items
.848
4
Item Statistics
Mean
Std. Deviation
superv1
superv2_r
superv3_r
superv4
4.5263
4.6184
4.2763
4.2763
1.19573
1.15049
1.16345
1.14624
N
152
152
152
152
131
superv1
superv2_r
superv3_r
superv4
Mean
17.6974
Scale Mean if Item

Deleted
13.1711
13.0789
13.4211
13.4211
Scale Variance if
Item Deleted
Total Correlation
if Item Deleted
8.341
.741
.782
8.974
.666
.815
9.040
.642
.825
8.841
.694
.803
Scale Statistics
Variance
Std. Deviation
14.888
3.85849
N of Items
4
Fringe Benefit
Factor Analysis

Approx. Chi-Square
df
Sig.
.791
266.879
6
.000
Anti-image Matrices
benefit1_r
benefit2
benefit1_r
benefit2
benefit3
benefit4_r
benefit1_r
benefit2
benefit3
benefit4_r
Communalities
Initial
Extraction
benefit1_r
1.000
.689
benefit2
1.000
.783
benefit3
1.000
.787
benefit4_r
1.000
.458
Analysis.
.517
-.135
-.122
-.072
.846a
-.306
-.277
-.117
-.135
.375
-.205
-.065
-.306
.746a
-.549
-.123
benefit3
-.122
-.205
.374
-.093
-.277
-.549
.747a
-.176
benefit4_r
-.072
-.065
-.093
.746
-.117
-.123
-.176
.909a
132
Component
1
2

Initial Eigenvalues
Total
Total
2.717
67.920
67.920
2.717
67.920
67.920
.654
16.346
84.266
.388
9.692
93.958
.242
6.042
100.000
Component Matrixa
Component
1
benefit1_r
.830
benefit2
.885
benefit3
.887
benefit4_r
.676
Component Analysis.
Reliability
Scale: ALPHA

N
Valid
152
70.7
Excludeda
63
29.3
Total
215
100.0
procedure.
Cases
Cronbach's Alpha
N of Items
.834
4
Item Statistics
Mean
Std. Deviation
benefit1_r
benefit2
benefit3
benefit4_r
3.1645
3.2566
3.2105
3.3618
1.43487
1.20428
1.18842
1.28439
N
152
152
152
152
133
benefit1_r
benefit2
benefit3
benefit4_r
Mean
12.9934
Scale Mean if Item

Deleted
9.8289
9.7368
9.7829
9.6316
Scale Variance if
Item Deleted
Total Correlation
if Item Deleted
9.520
.674
.789
10.275
.754
.752
10.330
.759
.751
11.532
.500
.860
Scale Statistics
Variance
Std. Deviation
17.543
4.18844
N of Items
4
Contingent Reward
Factor Analysis

Approx. Chi-Square
df
Sig.
.767
150.841
6
.000
Anti-image Matrices
c_reward1
c_reward2_r
c_reward1
c_reward2_r
c_reward3_r
c_reward4_r
c_reward1
c_reward2_r
c_reward3_r
c_reward4_r
Communalities
Initial
Extraction
c_reward1
1.000
c_reward2_r
1.000
c_reward3_r
1.000
c_reward4_r
1.000
Analysis.
.583
.597
.676
.516
.672
-.198
-.163
-.087
.783a
-.297
-.259
-.125
-.198
.657
-.182
-.079
-.297
.773a
-.293
-.115
c_reward3_r
-.163
-.182
.586
-.221
-.259
-.293
.737a
-.340
c_reward4_r
-.087
-.079
-.221
.718
-.125
-.115
-.340
.786a
134
Component
1
2

Initial Eigenvalues
Total
Total
2.373
59.323
59.323
2.373
59.323
59.323
.667
16.669
75.992
.514
12.852
88.844
.446
11.156
100.000
Component Matrixa
Component
1
c_reward1
.764
c_reward2_r
.773
c_reward3_r
.822
c_reward4_r
.719
Component Analysis.
Reliability
Scale: ALPHA

N
Valid
152
70.7
Excludeda
63
29.3
Total
215
100.0
procedure.
Cases
Cronbach's Alpha
N of Items
.770
4
Item Statistics
Mean
Std. Deviation
c_reward1
c_reward2_r
c_reward3_r
c_reward4_r
3.7566
4.0000
3.2368
3.7105
1.26070
1.21797
1.20560
1.18842
N
152
152
152
152
135
c_reward1
c_reward2_r
c_reward3_r
c_reward4_r
Mean
14.7039
Scale Variance if
Item Deleted
Total Correlation
if Item Deleted
8.368
.563
.720
8.501
.574
.714
8.184
.642
.678
9.013
.510
.747
Scale Mean if Item

Deleted
10.9474
10.7039
11.4671
10.9934
Scale Statistics
Variance
Std. Deviation
14.064
3.75021
N of Items
4
Operating Condition
Factor Analysis

Approx. Chi-Square
df
Sig.
.744
155.375
6
.000
Anti-image Matrices
sop1_r
sop2
sop1_r
sop2
sop3_r
sop4_r
sop1_r
sop2
sop3_r
sop4_r
Communalities
Initial
Extraction
sop1_r
1.000
sop2
1.000
sop3_r
1.000
sop4_r
1.000
Component Analysis.
.703
.527
.715
.383
.545
-.163
-.254
-.101
.712a
-.261
-.469
-.150
-.163
.715
-.150
-.020
-.261
.804a
-.242
-.026
sop3_r
-.254
-.150
.536
-.143
-.469
-.242
.707a
-.216
sop4_r
-.101
-.020
-.143
.819
-.150
-.026
-.216
.834a
136
Component
1
2

Initial Eigenvalues
Total
Total
2.328
58.205
58.205
2.328
58.205
58.205
.769
19.234
77.439
.535
13.380
90.819
.367
9.181
100.000
Component Matrixa
Component
1
sop1_r
.838
sop2
.726
sop3_r
.846
sop4_r
.619
Component Analysis.
Reliability
Scale: ALPHA

N
Valid
152
70.7
Excludeda
63
29.3
Total
215
100.0
procedure.
Cases
Cronbach's Alpha
N of Items
.753
4
Mean
sop1_r
sop2
sop3_r
sop4_r
Item Statistics
Std. Deviation
3.6711
3.8092
3.4145
3.5789
1.39429
1.33587
1.11844
1.12483
N
152
152
152
152
137
sop1_r
sop2
sop3_r
sop4_r
Scale Mean if Item

Deleted
10.8026
10.6645
11.0592
10.8947
Scale Variance if
Item Deleted
Total Correlation
if Item Deleted
7.471
.647
.636
8.582
.508
.720
8.692
.667
.638
10.188
.403
.767
Scale Statistics
Variance
Std. Deviation
14.344
3.78730
Mean
14.4737
N of Items
4
Coworkers
Factor Analysis

Approx. Chi-Square
df
Sig.
.623
139.481
6
.000
Anti-image Matrices
co_worker1
co_worker2r
co_worker1
co_worker2r
co_worker3
co_worker4r
co_worker1
co_worker2r
co_worker3
co_worker4r
Communalities
Initial
Extraction
co_worker1
1.000
co_worker2r
1.000
co_worker3
1.000
co_worker4r
1.000
Analysis.
.638
.330
.709
.439
.528
.033
-.329
-.082
.582a
.050
-.641
-.127
.033
.836
-.121
-.235
.050
.678a
-.186
-.287
co_worker3
-.329
-.121
.501
-.074
-.641
-.186
.592a
-.118
co_worker4r
-.082
-.235
-.074
.801
-.127
-.287
-.118
.750a
138
Component
1
2

Initial Eigenvalues
Total
Total
2.115
52.867
52.867
2.115
52.867
52.867
.939
23.468
76.334
.637
15.916
92.251
.310
7.749
100.000
Component Matrixa
Component
1
co_worker1
.799
co_worker2r
.574
co_worker3
.842
co_worker4r
.662
Component Analysis.
1 components extracted.
Reliability
Scale: ALPHA

N
Valid
152
70.7
Excludeda
63
29.3
Total
215
100.0
procedure.
Cases
Cronbach's Alpha
N of Items
.665
4
Item Statistics
Mean
Std. Deviation
co_worker1
co_worker2r
co_worker3
co_worker4r
4.9474
3.8750
4.8487
4.0855
.84406
1.26236
.95432
1.35169
N
152
152
152
152
139
co_worker1
co_worker2r
co_worker3
co_worker4r
Mean
17.7566
Scale Mean if Item

Deleted
12.8092
13.8816
12.9079
13.6711
Scale Variance if
Item Deleted
Total Correlation
if Item Deleted
7.136
.492
.589
6.132
.374
.656
6.468
.554
.542
5.441
.444
.613
Scale Statistics
Variance
Std. Deviation
10.066
3.17272
N of Items
4
Nature of Work
Factor Analysis

Approx. Chi-Square
df
Sig.
.695
181.559
6
.000
Anti-image Matrices
nat_job1_r
nat_job1_r
nat_job2
nat_job3
nat_job4
nat_job1_r
nat_job2
nat_job3
nat_job4
Communalities
Initial
Extraction
nat_job1_r
1.000
.250
nat_job2
1.000
.770
nat_job3
1.000
.497
nat_job4
1.000
.782
Analysis.
.879
-.044
.037
-.123
.821a
-.071
.047
-.201
nat_job2
-.044
.430
-.134
-.268
-.071
.655a
-.240
-.627
nat_job3
.037
-.134
.731
-.109
.047
-.240
.831a
-.196
nat_job4
-.123
-.268
-.109
.424
-.201
-.627
-.196
.651a
140
Component
1
2

Initial Eigenvalues
Total
Total
2.300
57.489
57.489
2.300
57.489
57.489
.884
22.092
79.581
.555
13.873
93.454
.262
6.546
100.000
Component Matrixa
Component
1
nat_job1_r
.500
nat_job2
.878
nat_job3
.705
nat_job4
.884
Component Analysis.
Reliability
Scale: ALPHA

N
Valid
152
70.7
a
Cases
Excluded
63
29.3
Total
215
100.0
procedure.
Cronbach's Alpha
N of Items
.722
4
Item Statistics
Mean
Std. Deviation
nat_job1_r
nat_job2
nat_job3
nat_job4
4.0329
4.4605
4.6053
4.4145
1.30418
1.22275
.93609
1.04498
N
152
152
152
152
141
nat_job1_r
nat_job2
nat_job3
nat_job4
Mean
17.5132
Scale Mean if Item

Deleted
13.4803
13.0526
12.9079
13.0987
Scale Variance if
Item Deleted
Total Correlation
if Item Deleted
7.390
.307
.797
5.852
.663
.559
8.018
.448
.698
6.447
.703
.553
Scale Statistics
Variance
Std. Deviation
11.271
3.35728
N of Items
4
Communication
Factor Analysis

Approx. Chi-Square
df
Sig.
.747
125.702
6
.000
Anti-image Matrices
commun1
commun2r
commun1
commun2r
commun3r
commun4r
commun1
commun2r
commun3r
commun4r
Communalities
Initial
Extraction
commun1
1.000
.406
commun2r
1.000
.572
commun3r
1.000
.636
commun4r
1.000
.623
Analysis.
.815
-.029
-.162
-.146
.791a
-.038
-.222
-.199
-.029
.686
-.209
-.206
-.038
.735a
-.314
-.305
commun3r
-.162
-.209
.650
-.175
-.222
-.314
.736a
-.266
commun4r
-.146
-.206
-.175
.662
-.199
-.305
-.266
.744a
142
Component
1
2

Initial Eigenvalues
Total
Total
2.237
55.930
55.930
2.237
55.930
55.930
.751
18.773
74.702
.519
12.985
87.687
.493
12.313
100.000
Component Matrixa
Component
1
commun1
.637
commun2r
.756
commun3r
.798
commun4r
.789
Component Analysis.
Reliability
Scale: ALPHA
N
Valid
152
70.7
Excludeda
63
29.3
Total
215
100.0
procedure.
Cases
Cronbach's Alpha
N of Items
.736
4
Item Statistics
Mean
Std. Deviation
commun1
commun2r
commun3r
commun4r
4.6316
3.9868
3.9539
3.9539
1.02087
1.28664
1.19789
1.24666
N
152
152
152
152
143
commun1
commun2r
commun3r
commun4r
Mean
16.5263
Scale Mean if Item

Deleted
11.8947
12.5395
12.5724
12.5724
Scale Variance if
Item Deleted
Total Correlation
if Item Deleted
9.115
.413
.736
7.310
.537
.673
7.412
.591
.640
7.253
.580
.645
Scale Statistics
Variance
Std. Deviation
12.701
3.56389
N of Items
4
Turnover Intention
Factor Analysis

Approx. Chi-Square
df
Sig.
TI_1
.829
673.866
15
.000
Anti-image Matrices
ti_2
ti_3
TI_1
.223
ti_2
-.022
ti_3
-.042
Anti-image
Covariance
ti_4
-.078
ti_5
-.069
ti_6
-.044
TI_1
.881a
ti_2
-.067
ti_3
-.132
Anti-image
Correlation
ti_4
-.384
ti_5
-.335
ti_6
-.132
-.022
.487
-.041
.027
-.037
-.288
-.067
.751a
-.086
.089
-.122
-.590
ti_4
-.042
-.078
-.041
.027
.456
-.044
-.044
.185
-.039
-.104
-.095 9.506E-005
-.132
-.384
-.086
.089
.944a
-.150
-.150
.817a
-.131
-.551
-.201
.000
ti_5
ti_6
-.069
-.044
-.037
-.288
-.039
-.095
-.104 9.506E-005
.191
.043
.043
.489
-.335
-.132
-.122
-.590
-.131
-.201
-.551
.000
.821a
.140
.140
.710a
144
Communalities
Initial
Extraction
TI_1
1.000
ti_2
1.000
ti_3
1.000
ti_4
1.000
ti_5
1.000
ti_6
1.000
Component Analysis.
Component
1
2
.815
.423
.683
.774
.778
.374

Initial Eigenvalues
Total
Total
3.848
64.131
64.131
3.848
64.131
64.131
1.168
19.474
83.605
.393
6.551
90.156
.309
5.151
95.307
.162
2.694
98.001
.120
1.999
100.000
Component Matrixa
Component
1
TI_1
.903
ti_2
.650
ti_3
.827
ti_4
.880
ti_5
.882
ti_6
.612
Extraction Method:
Principal Component
Analysis.
a. 1 components
extracted.
145

Reliability
Scale: ALPHA

N
Valid
152
70.7
Excludeda
63
29.3
Total
215
100.0
procedure.
Cases
Cronbach's Alpha
N of Items
.879
6
Mean
TI_1
ti_2
ti_3
ti_4
ti_5
ti_6
TI_1
ti_2
ti_3
ti_4
ti_5
ti_6
Item Statistics
Std. Deviation
3.27
3.81
3.03
2.81
2.64
4.38
Scale Mean if Item

Deleted
16.67
16.13
16.91
17.13
17.30
15.56
Mean
19.94
.996
1.102
1.156
.975
1.013
1.168
N
152
152
152
152
152
152
Scale Variance if
Item Deleted
Total Correlation
if Item Deleted
17.918
.805
.839
18.949
.577
.876
17.350
.728
.850
18.406
.758
.847
18.117
.761
.846
18.937
.531
.886
Scale Statistics
Variance
Std. Deviation
25.698
5.069
N of Items
6
146
Factor Analysis

Approx. Chi-Square
df
Sig.
.783
222.237
6
.000
Anti-image Matrices
Perf_Mgt1
Perf_Mgt2
Perf_Mgt1
Perf_Mgt2
Perf_Mgt3
Perf_Mgt4
Perf_Mgt1
Perf_Mgt2
Perf_Mgt3
Perf_Mgt4
.610
-.067
-.095
-.220
.808a
-.120
-.165
-.386
-.067
.505
-.235
-.149
-.120
.764a
-.452
-.288
Perf_Mgt3
-.095
-.235
.537
-.090
-.165
-.452
.780a
-.169
Perf_Mgt4
-.220
-.149
-.090
.530
-.386
-.288
-.169
.785a
Communalities
Initial
Extraction
Perf_Mgt1
1.000
.601
Perf_Mgt2
1.000
.695
Perf_Mgt3
1.000
.665
Perf_Mgt4
1.000
.687
Analysis.
Component
1
2

Initial Eigenvalues
Total
Total
2.648
66.212
66.212
2.648
66.212
66.212
.591
14.774
80.986
.413
10.326
91.313
.347
8.687
100.000
147
Component Matrixa
Component
1
Perf_Mgt1
.776
Perf_Mgt2
.834
Perf_Mgt3
.815
Perf_Mgt4
.829
Component Analysis.
Reliability
Scale: ALPHA
N
Valid
152
70.7
Excludeda
63
29.3
Total
215
100.0
procedure.
Cases
Cronbach's Alpha
N of Items
.828
4
Item Statistics
Mean
Std. Deviation
Perf_Mgt1
Perf_Mgt2
Perf_Mgt3
Perf_Mgt4
Perf_Mgt1
Perf_Mgt2
Perf_Mgt3
Perf_Mgt4
3.81
3.59
3.82
3.61
Scale Mean if Item

Deleted
11.02
11.24
11.01
11.22
1.144
1.283
1.070
1.287
N
152
152
152
152
Scale Variance if
Item Deleted
Total Correlation
if Item Deleted
9.569
.610
.803
8.460
.681
.772
9.655
.660
.784
8.449
.679
.772
148
Mean
14.83
Scale Statistics
Variance
Std. Deviation
15.189
3.897
N of Items
4
Pay Practices
Factor Analysis
Approx. Chi-Square
df
Sig.
.742
294.276
6
.000
Anti-image Matrices
Pay_Practices1 Pay_Practices2 Pay_Practices3 Pay_Practices4
Pay_Practices1
Pay_Practices2
Pay_Practices3
Pay_Practices4
Pay_Practices1
Pay_Practices2
Anti-image
Correlation
Pay_Practices3
Pay_Practices4
Anti-image
Covariance
Communalities
Initial
1
2
-.217
.400
-.098
-.090
-.511
.770a
-.254
-.192
-.133
-.098
.374
-.231
-.324
-.254
.747a
-.511
.079
-.090
-.231
.544
.160
-.192
-.511
.719a
Extraction
Pay_Practices1
1.000
Pay_Practices2
1.000
Pay_Practices3
1.000
Pay_Practices4
1.000
Analysis.
Component
.450
-.217
-.133
.079
.722a
-.511
-.324
.160
.660
.764
.794
.560

Initial Eigenvalues
Total
Total
2.778
69.447
69.447
2.778
69.447
69.447
.679
16.964
86.410
.292
7.306
93.716
.251
6.284
100.000
149

Component Matrixa
Component
1
Pay_Practices1
.813
Pay_Practices2
.874
Pay_Practices3
.891
Pay_Practices4
.748
Component Analysis.
Reliability
Scale: ALPHA

N
Valid
152
70.7
Excludeda
63
29.3
Total
215
100.0
procedure.
Cases
Cronbach's Alpha
N of Items
.851
4
Item Statistics
Mean
Std. Deviation
Pay_Practices1
Pay_Practices2
Pay_Practices3
Pay_Practices4
Pay_Practices1
Pay_Practices2
Pay_Practices3
Pay_Practices4
3.45
3.02
3.14
3.12
1.156
1.119
1.215
1.173
Scale Mean if Item Scale Variance if
Deleted
Item Deleted
9.28
9.145
9.72
8.800
9.59
8.124
9.62
9.456
152
152
152
152

Total Correlation
if Item Deleted
.653
.827
.752
.786
.786
.768
.583
.856
150
Mean
12.74
Scale Statistics
Variance
Std. Deviation
15.043
3.879
N of Items
4

Factor Analysis

Approx. Chi-Square
df
Sig.
.771
355.034
6
.000
Anti-image Matrices
Train_Devt1
Train_Devt2
Train_Devt1
Train_Devt2
Train_Devt3
Train_Devt4
Train_Devt1
Train_Devt2
Train_Devt3
Train_Devt4
Communalities
Initial
Extraction
Train_Devt1
1.000
Train_Devt2
1.000
Train_Devt3
1.000
Train_Devt4
1.000
Analysis.
.811
.872
.185
.856
.330
-.111
.024
-.114
.811a
-.381
.044
-.386
-.111
.256
-.090
-.143
-.381
.744a
-.187
-.549
Train_Devt3
.024
-.090
.898
-.008
.044
-.187
.856a
-.016
Train_Devt4
-.114
-.143
-.008
.264
-.386
-.549
-.016
.753a
151
Component
1
2

Initial Eigenvalues
Total
Total
2.723
68.077
68.077
2.723
68.077
68.077
.880
22.005
90.082
.229
5.728
95.809
.168
4.191
100.000
Component Matrixa
Component
1
Train_Devt1
.900
Train_Devt2
.934
Train_Devt3
Train_Devt4
.925
Component Analysis.
Factor Analysis Step 2

Approx. Chi-Square
df
Sig.
.759
339.718
3
.000
Anti-image Matrices
Train_Devt1
Train_Devt1
Train_Devt2
Train_Devt4
Train_Devt1
Train_Devt2
Train_Devt4
.330
-.113
-.114
.807a
-.380
-.386
Train_Devt2
-.113
.266
-.149
-.380
.739a
-.562
Train_Devt4
-.114
-.149
.264
-.386
-.562
.737a
152

Communalities
Initial
Extraction
Train_Devt1
1.000
.843
Train_Devt2
1.000
.877
Train_Devt4
1.000
.878
Analysis.
Component
1
2

Initial Eigenvalues
Total
Total
2.598
86.589
86.589
2.598
86.589
86.589
.233
7.756
94.344
.170
5.656
100.000
Component Matrixa
Component
1
Train_Devt1
.918
Train_Devt2
.936
Train_Devt4
.937
Component Analysis.
Reliability
Scale: ALPHA

N
Valid
152
70.7
Excludeda
63
29.3
Total
215
100.0
procedure.
Cases
Cronbach's Alpha
N of Items
.922
3
153

Item Statistics
Mean
Std. Deviation
Train_Devt1
Train_Devt2
Train_Devt4
Train_Devt1
Train_Devt2
Train_Devt4
Mean
10.24
3.43
3.43
3.38
Scale Mean if Item

Deleted
6.80
6.81
6.86
1.290
1.285
1.233
N
152
152
152
Scale Variance if
Item Deleted
Total Correlation
if Item Deleted
5.802
.818
.907
5.679
.853
.878
5.908
.855
.878
Scale Statistics
Variance
Std. Deviation
12.553
3.543
N of Items
3
154
Appendix 3: Regression Test Result
Regression - HR Practices to Turnover Intention

Variables Entered/Removeda
Model
Variables Entered
Variables
Method
Removed
1
HR_PRACTICES_
. Enter
a. Dependent Variable: TURNOVER_INTENTION
b. All requested variables entered.
Model Summary
R Square
Adjusted R
Square
1
.424a
.180
.175
a. Predictors: (Constant), HR_PRACTICES
Model
Model
Regression
1
Residual
Total
Sum of Squares
19.416
88.375
107.791
Std. Error of the

Estimate
.768
ANOVAa
df
1
150
Mean Square
19.416
.589
F
32.955
Sig.
.000b
151

b. Predictors: (Constant), HR_PRACTICES
Model
(Constant)
Coefficientsa
Unstandardized
Coefficients
B
Std. Error
4.721
.251
HR_PRACTICES
-.407
.071
Standardized
Coefficients
Beta
-.424
Sig.
18.786
.000
-5.741
.000
155
Appendix 3: Regression Test Result (Contd)
Regression HR Practices to Job Satisfaction

Model
Variables Entered
Variables
Method
Removed
1
HR_PRACTICES
. Enter
a. Dependent Variable: JOB_SATISFACTION
Model Summary
R Square
Adjusted R
Square
1
.680a
.463
.459
a. Predictors: (Constant), HR_PRACTICES
Model
Model
Regression
1
Residual
Total
Sum of Squares
28.848
33.453
62.302
Std. Error of the

Estimate
.472
ANOVAa
df
1
150
Mean Square
28.848
.223
F
129.350
Sig.
.000b
151

b. Predictors: (Constant), HR_PRACTICES
Model
(Constant)
Coefficientsa
Unstandardized
Coefficients
B
Std. Error
2.186
.155
HR_PRACTICES
.496
.044
Standardized
Coefficients
Beta
.680
Sig.
14.135
.000
11.373
.000
156
Multiple Regression Job Satisfaction, HR Practices to Turnover

Intention
Model
Variables Entered
Variables
Method
Removed
JOB_SATISFACTI
. Enter
1
ON,
HR_PRACTICESb
Model Summary
R Square
Adjusted R
Std. Error of the
Square
Estimate
1
.673a
.453
.446
.629
a. Predictors: (Constant), JOB_SATISFACTION, HR_PRACTICES
Model
Model
Regression
1
Residual
Total
Sum of Squares
48.877
58.913
107.791
ANOVAa
df
2
149
Mean Square
24.439
.395
F
61.809
Sig.
.000b
151

b. Predictors: (Constant), JOB_SATISFACTION, HR_PRACTICES
Coefficientsa
Unstandardized Coefficients
Model
B
(Constant)
1
6.771
HR_PRACTICES
.021
JOB_SATISFACTION
-.906
Std. Error
.314
.090
.118
Standardized
Coefficients
Beta
.021
-.689
Sig.
21.545
.000
.236
-7.699
.814
.000
157
Mutliple Regression HR Practices Dimension to Turnover

Intention
Model
Variables Entered
Variables
Method
Removed
Performance_Man
. Enter
agement,
1
Pay_Practices,
Train_Developme
ntb
Model Summary
R Square
Adjusted R
Std. Error of the
Square
Estimate
1
.517a
.267
.252
.731
a. Predictors: (Constant), Performance_Management, Pay_Practices,
Train_Development
Model
Model
Regression
1
Residual
Total
Sum of Squares
28.809
78.982
107.791
ANOVAa
df
3
148
Mean Square
9.603
.534
F
17.995
Sig.
.000b
151

b. Predictors: (Constant), Performance_Management, Pay_Practices, Train_Development
Model
(Constant)
Coefficientsa
Unstandardized
Standardized
Coefficients
Coefficients
B
Std. Error
Beta
4.960
.247
Pay_Practices
-.273
Train_Development
.124
Performance_Management
-.320
1
.077
.066
.086
-.314
.173
-.369
Sig.
20.076
.000
-3.532
1.866
-3.705
.001
.064
.000
158
Multivariate Analysis Job Satisfaction Dimension to HR

Practices Dimension
Dependent
Variable
pay
promotion
supervisor
benefit
cont_reward
sop
co_worker
nat_work
communic
Parameter
Parameter Estimates
B
Std.
Error
Intercept
Pay_Practices
Train_Development
Intercept
Pay_Practices
Train_Development
Intercept
Pay_Practices
Train_Development
Intercept
Pay_Practices
Train_Development
Intercept
Pay_Practices
Train_Development
Intercept
Pay_Practices
Train_Development
Intercept
Pay_Practices
Train_Development
Intercept
Pay_Practices
Train_Development
Intercept
Pay_Practices
Train_Development
.980
.494
-.033
.263
1.873
.374
-.356
.493
2.461
.076
.071
.399
.526
.748
.036
.059
1.369
.450
-.141
.365
1.926
.350
.027
.131
3.141
.110
-.003
.258
3.172
.030
-.173
.459
2.406
-.010
.068
.411
.221 4.426
.069 7.126
.059
-.562
.077 3.392
.282 6.640
.088 4.230
.076 -4.711
.099 4.991
.283 8.701
.089
.855
.076
.939
.099 4.027
.237 2.215
.074 10.063
.064
.561
.083
.709
.241 5.684
.075 5.968
.065 -2.189
.084 4.334
.285 6.754
.089 3.922
.076
.353
.100 1.310
.247 12.700
.077 1.421
.066
-.040
.087 2.981
.257 12.321
.081
.371
.069 -2.507
.090 5.092
.263 9.160
.082
-.116
.070
.962
.092 4.473
Sig.
.000
.000
.575
.001
.000
.000
.000
.000
.000
.394
.349
.000
.028
.000
.575
.480
.000
.000
.030
.000
.000
.000
.725
.192
.000
.157
.969
.003
.000
.711
.013
.000
.000
.908
.338
.000
95% Confidence
Interval
Lower
Upper
Bound
Bound
.542
1.417
.357
.631
-.151
.084
.110
.416
1.315
2.430
.199
.549
-.506
-.207
.298
.688
1.902
3.020
-.099
.251
-.079
.221
.203
.594
.057
.995
.601
.895
-.090
.161
-.105
.223
.893
1.845
.301
.600
-.269
-.014
.199
.532
1.362
2.489
.174
.527
-.124
.178
-.067
.328
2.652
3.629
-.043
.263
-.134
.128
.087
.429
2.664
3.681
-.129
.189
-.310
-.037
.281
.637
1.887
2.925
-.172
.153
-.071
.207
.230
.593
159
Multiple Regression Job Satisfaction Dimension, HR Practices

Dimension to Turnover Intention
Model
Variables Entered
Variables
Method
Removed
communic,
. Enter
benefit, nat_work,
Train_Developme
nt, sop, pay,
co_worker,
1
promotion,
supervisor,
Performance_Man
agement,
cont_reward,
Pay_Practicesb
Model Summary
Model
R
R Square
Adjusted R
Std. Error of the
Square
Estimate
1
.706a
.498
.455
.624
a. Predictors: (Constant), communic, benefit, nat_work, Train_Development,
sop, pay, co_worker, promotion, supervisor, Performance_Management,
cont_reward, Pay_Practices
Model
Regression
1
Residual
Total
Sum of Squares
53.679
54.111
ANOVAa
df
12
139
107.791
151
Mean Square
4.473
.389
F
11.491
Sig.
.000b

b. Predictors: (Constant), communic, benefit, nat_work, Train_Development, sop, pay, co_worker, promotion,
supervisor, Performance_Management, cont_reward, Pay_Practices
160
Model
(Constant)
Coefficientsa
Unstandardized
Coefficients
B
Std. Error
6.930
.350
Pay_Practices
-.069
Train_Development
.071
.000
pay
-.055
promotion
-.095
1 supervisor
.013
benefit
-.090
cont_reward
-.150
sop
.042
co_worker
-.201
nat_work
-.090
communic
-.283
.096
.063
.087
.082
.077
.080
.081
.091
.075
.093
.087
.077
Standardized
Coefficients
Beta
Sig.
19.787 .000
-.079
.099
.000
-.060
-.114
.014
-.111
-.167
.047
-.188
-.089
-.298
-.723
1.119
.003
-.674
-1.242
.158
-1.113
-1.647
.564
-2.152
-1.036
-3.693
.471
.265
.997
.501
.216
.875
.268
.102
.574
.033
.302
.000
161
Appendix 4: Mediating Analysis per Dimension
Pay Practices
Independent Variable
Dependent Variable
Notation
Sig
Pay Practices
Pay
0.494
0.000
Pay
Turnover Intention
-0.055
0.501
Pay Practices
Turnover Intention
-0.273
0.001
Pay Practices & Pay
Turnover Intention
c'
-0.069
0.471
Pay Practices
Promotion
0.374
0.000
Promotion
Turnover Intention
-0.095
0.216
Pay Practices
Turnover Intention
-0.273
0.001
Pay Practices & Promotion
Turnover Intention
c'
-0.069
0.471
Pay Practices
Supervision
0.076
0.394
Supervision
Turnover Intention
0.013
0.875
Pay Practices
Turnover Intention
-0.273
0.001
Pay Practices & Supervision
Turnover Intention
c'
-0.069
0.471
Pay Practices
Fringe Benefits
0.748
0.000
Fringe Benefits
Turnover Intention
-0.090
0.268
Pay Practices
Turnover Intention
-0.273
0.001
Pay Practices & Fringe Benefits
Turnover Intention
c'
-0.069
0.471
Pay Practices
Contingent Rewards
0.450
0.000
Contingent Rewards
Turnover Intention
-0.150
0.102
Pay Practices
Turnover Intention
-0.273
0.001
Pay Practices & Contingent Rewards
Turnover Intention
c'
-0.069
0.471
Pay Practices
Operating Condition
0.350
0.000
Operating Condition
Turnover Intention
0.042
0.574
Pay Practices
Turnover Intention
-0.273
0.001
Pay Practices & Operating Condition
Turnover Intention
c'
-0.069
0.471
162
Appendix 4: Mediating Analysis per Dimension (Contd)
Dependent Variable
Notation
Sig
Pay Practices
Coworkers
0.110
0.157
Coworkers
Turnover Intention
-0.201
0.033
Pay Practices
Turnover Intention
-0.273
0.001
Pay Practices & Coworkers
Turnover Intention
c'
-0.069
0.471
Pay Practices
Nature of Work
0.030
0.711
Nature of Work
Turnover Intention
-0.090
0.302
Pay Practices
Turnover Intention
-0.273
0.001
Pay Practices & Nature of Work
Turnover Intention
c'
-0.069
0.471
Pay Practices
Communication
-0.010
0.908
Communication
Turnover Intention
-0.283
0.000
Pay Practices
Turnover Intention
-0.273
0.001
Pay Practices & Communication
Turnover Intention
c'
-0.069
0.471

Dependent Variable
Notation
Sig
Training
Pay
-0.033
0.575
Pay
Turnover Intention
-0.055
0.501
Training
Turnover Intention
0.124
0.064
Training & Pay
Turnover Intention
c'
0.071
0.265
Training
Promotion
-0.356
0.000
Promotion
Turnover Intention
-0.095
0.216
Training
Turnover Intention
0.124
0.064
Training & Promotion
Turnover Intention
c'
0.071
0.265
Training
Supervision
0.071
0.349
Supervision
Turnover Intention
0.013
0.875
Training
Turnover Intention
0.124
0.064
Training & Supervision
Turnover Intention
c'
0.071
0.265
163
Dependent Variable
Notation
Sig
Training
Fringe Benefits
0.036
0.561
Fringe Benefits
Turnover Intention
-0.090
0.268
Training
Turnover Intention
0.124
0.064
Training & Fringe Benefits
Turnover Intention
c'
0.071
0.265
Training
Contingent Rewards
-0.141
0.030
Contingent Rewards
Turnover Intention
-0.150
0.102
Training
Turnover Intention
0.124
0.064
Training & Contingent Rewards
Turnover Intention
c'
0.071
0.265
Training
Operating Condition
0.027
0.725
Operating Condition
Turnover Intention
0.042
0.574
Training
Turnover Intention
0.124
0.064
Training & Operating Condition
Turnover Intention
c'
0.071
0.265
Training
Coworkers
-0.003
0.969
Coworkers
Turnover Intention
-0.201
0.033
Training
Turnover Intention
0.124
0.064
Training & Coworkers
Turnover Intention
c'
0.071
0.265
Training
Nature of Work
-0.173
0.013
Nature of Work
Turnover Intention
-0.090
0.302
Training
Turnover Intention
0.124
0.064
Training & Nature of Work
Turnover Intention
c'
0.071
0.265
Training
Communication
0.068
0.338
Communication
Turnover Intention
-0.283
0.000
Training
Turnover Intention
0.124
0.064
Training & Communication
Turnover Intention
c'
0.071
0.265
164
Dependent Variable
Notation
Sig
Pay
0.263
0.001
Pay
Turnover Intention
-0.055
0.501
Turnover Intention
-0.320
0.000
Performance Management & Pay
Turnover Intention
c'
0.000
0.997
Promotion
0.493
0.000
Promotion
Turnover Intention
-0.095
0.216
Turnover Intention
-0.320
0.000
Performance Management & Promotion
Turnover Intention
c'
0.000
0.997
Supervision
0.399
0.000
Supervision
Turnover Intention
0.013
0.875
Performance Management &
Supervision
Turnover Intention
-0.320
0.000
Turnover Intention
c'
0.000
0.997
Fringe Benefits
0.059
0.480
Fringe Benefits
Turnover Intention
-0.090
0.268
Performance Management & Fringe
Benefits
Turnover Intention
-0.320
0.000
Turnover Intention
c'
0.000
0.997
Contingent Rewards
0.365
0.000
Contingent Rewards
Turnover Intention
-0.150
0.102
Performance Management & Contingent
Rewards
Turnover Intention
-0.320
0.000
Turnover Intention
c'
0.000
0.997
Operating Condition
0.131
0.192
Operating Condition
Turnover Intention
0.042
0.574
Performance Management & Operating
Condition
Turnover Intention
-0.320
0.000
Turnover Intention
c'
0.000
0.997
165
Dependent Variable
Notation
Sig
Coworkers
0.258
0.003
Coworkers
Turnover Intention
-0.201
0.033
Turnover Intention
-0.320
0.000
Performance Management & Coworkers
Turnover Intention
c'
0.000
0.997
Nature of Work
0.459
0.000
Nature of Work
Turnover Intention
-0.090
0.302
Performance Management & Nature of
Work
Turnover Intention
-0.320
0.000
Turnover Intention
c'
0.000
0.997
Communication
0.411
0.000
Communication
Turnover Intention
-0.283
0.000
Performance Management &
Communication
Turnover Intention
-0.320
0.000
Turnover Intention
c'
0.000
0.997

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UNIVERSITY OF INDONESIA

MEDIATING ROLE OF JOB SATISFACTION ON HUMAN

MEDIATING ROLE OF JOB SATISFACTION ON HUMAN

LETTER OF AGREEMENT TO PUBLISH THE THESIS FOR

On behalf of science development, I have fully agreed to give the Non-Exclusive

3.6.1 Descriptive Statistic ............................................................................. 49

Figure 1.1 PT XYZ IT Professional Turnover Rate 2012-2014 ............................... 3

Table 4.30 Pay Practices Descriptive Analysis ...................................................... 80

Appendix 1 Initial Questionnaire ......................................................................... 124

1.2 Problem Findings

Figure 1.1 PT XYZ IT Professional Turnover Rate 2012-2014

Figure 1.2 Relationships between HR Practices, Job Satisfaction and Turnover

In this study, the conceptual framework above will be tested empirically in

why performance management is chosen. Framework of this study is given below in

Figure 1.3 Research Framework

Current study conducted a more comprehensive empirical study and analysis

1.3 Research Objectives

2. To understand the level of turnover intention in the three IT consulting

1.4 Implication of Research

1.5 Scope of Research

1.6 Systematic of Writing

2.1 Turnover Intention

said turnover intention is caused by lack of commitment toward reaching the

2.2 Job Satisfaction

Job satisfaction is focuses on the role of the person in the workplace. It is an

satisfaction can promote employee performance. A research by Springer in 2011

Figure 2.1 Herzberg Motivator Hygiene Model

Herzberg found that job satisfaction usually is more associated to recognition,

Minnesota Satisfaction Questionnaire (MSQ)

Minnesota in Work Adjustment Project. The measurement itself is based on the

1 very dissatisfied with this aspect of my job

2 dissatisfied with this aspect of my job

3 cant decide if Im satisfied or dissatisfied with this aspect of my

4 satisfied with this aspect of my job

5 very satisfied with this aspect of my job

Job Description Index (JDI)

Castanheira, & Oliveira-Cruz, 2015) is one of the job satisfaction measuring

Compensation and Benefits

Opportunities for Promotions

Job Satisfaction Survey (JSS)

opportunity of promotion is positively related with job satisfaction and Liu

All of these communication elements, according to Booppanon (2008) are

2.3 Human Resources (HR) Practices

Attracting an effective human resource

Developing the human resources to the full potential

another purposes of HR practices which is to give motivation to the employees and

also providing them with opportunities to participate in decision making process in

Mudor and Tooksoon in 2011 managed to prove conceptually the relationship

Training and development

feedback to help employees achieving the desired output (Noe, Hollenbeck,

organizational needs and shared to the employees so it will result in

relationship with turnover intention.

2.4 Relationship among HR practices, Job Satisfaction and Turnover Intention

Overall job satisfaction

Wright & Bonnet

Manufacturing Job satisfaction has a

Another past studies regarding the relationship between HR practices and

Guchait & Cho

Khilji & Wang

HR practices are good

Health Personnel- HR practices have a

Syed & Yan

Telecommunication HR practices have a

IT consulting industry. There are 3 HR practices that have a significant influence

Turnover, Job Satisfaction & HR Practices

Turnover, Job Satisfaction & HR Practices