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An investigation into the factors influencing the levels of job satisfaction and organisational commitment of non-family employees working in family businesses

Given the increasingly important role that non-family employees working in family businesses play in the success of these businesses, as well as the challenges they are faced with, it is surprising that little is known about their experiences in the family business. This study therefore was aimed at contributing to the more effective functioning of this important stakeholder group in South Africa by identifying the factors that impact on their levels of job satisfaction and organisational commitment in family businesses. As such the primary objective of this study was to identify the factors that impact on non-family employees’ levels of Job satisfaction and Organisational commitment to the family business in which they are employed. This study sought to incorporate prior findings and theories on job satisfaction and organisational commitment into a comprehensive theoretical model. In addition, support for these theories was sought in the literature. The literature review revealed three main categories of constructs, namely, relational-based, organisational-based and reward-based factors, as influencing the levels of Job satisfaction and Organisational commitment of non-family employees working in family businesses. Within these three categories, 15 independent variables were identified and hypothesised to influence the levels of the dependent variables Job satisfaction and Organisational commitment. Of the 15 independent variables, 6 were categorised as relational-based, another 6 as organisational-based and 3 as reward-based factors. All of the constructs in this study were clearly defined and operationalised. Operationalisation was done by using reliable and valid items sourced from measuring instruments used by prior studies. In addition, several items were selfgenerated items based on secondary sources. The convenience snowball sampling technique was used to identify respondents, and a structured questionnaire was made available to them. The data collected 280 usable questionnaires and was subjected to various statistical analyses. The validity and reliability of the measuring instrument was assessed by means of exploratory and confirmatory factor analyses, and Cronbach-alpha coefficients were confirmed for this purpose. v The 6 relational-based factors could not all be confirmed as initially intended. Of these factors, 5 were confirmed. Similarly, the organisational-based factors could not all be confirmed by the exploratory factor analysis. Four factors were confirmed in this regard. With regard to reward-based factors, these factors did not load as originally intended. Instead, a new factor (Job security and compensation) emerged. In this study, a number of statistical procedures were utilised to assess the relationships between the independent and dependent variables. These included descriptive statistics which was used to summarise the sample data. Pearson’s Product Moment Correlation was also undertaken to establish the relationship between the various factors under investigation. However, the main statistical procedure that was used to test the significance of the relationships hypothesised between the independent and dependent variables was the Multiple Regression Analysis (MRA). From the analysis, 7 submodels were identified and subjected to further testing. The following independent variables were identified as influencing the dependent variables in this study: Fairness; Personal needs alignment; Interpersonal relationships; Family harmony; Nature of the work; Working conditions; Job involvement; Governance; Job security and compensation. In addition, an Analysis of Variance (ANOVA) was performed to establish the influence that the various demographic variables could have on the dependent variables. The test included the use of Benferroni post-hoc test that was used to vi assess the statistical difference, while Cohen’s d-values were calculated to assess the practical significance between mean scores. Ownership of shares by non-family employees of the family business in which they are employed, the positions that these employees hold, as well as ethnicity of the respondents have been found to have an influence on the independent and dependent variables in this study. This study has empirically investigated the challenges non-family employees working in family businesses are faced with, and has thus added to the limited amount of family business literature on this valuable stakeholder group. The theoretical model developed in this study has made a significant contribution towards understanding the factors that influence the levels of job satisfaction and organisational commitment of these employees. This study therefore presents recommendations and suggestions to assist family business leaders/owners in attracting and retaining non-family businesses in such a way as to give them a sense of belonging and to enhance the performance of their businesses.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:9277
Date January 2012
CreatorsLetele-Matabooe, Makatleho Julia
PublisherNelson Mandela Metropolitan University, Faculty of Business and Economic Sciences
Source SetsSouth African National ETD Portal
LanguageEnglish
Detected LanguageEnglish
TypeThesis, Masters, MCom
Formatxvii, 272 leaves, pdf
RightsNelson Mandela Metropolitan University

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