Modelling (Ramlall, 2006) in the organization. It does

Modelling
Human Resource Competencies as Significant Predictors of Employee Satisfaction

Daguplo, CAM

 

1.0       Introduction

            Human Resource Competencies (HRCs)
are set of knowledge, skills, abilities and personality characteristics
contributing to effective human resource performance that enables the
organization to accomplish its goals (Long, 2008). Its importance, configuration,
and development is considered highly significant in defining employees
satisfaction (Khan, Ahmed, Zulqarnainm & Jamil, 2015) and the performance
of the organization to achieve competitive advantage (Stokes & Oiry, 2012;
Ulrich, Younger, Brockbank, & Ulrich, 2012).  Moreover, the human resource competencies has
been recognized by the Civil Service Commission in the attainment of becoming
the center of excellence in human resource and organization development (PAHRODF,
2014). Build on this fact, this study argues that human resource competencies
significantly defines employee satisfaction in an organization.

            The demonstration of a set of human
resource competencies is a basic foundation among human resource professionals
to effectively perform their changing roles and responsibilities (Ramlall,
2006) in the organization. It does not only provide them effective way to make
organizational audit (Krell, 2011), it also becomes the platform for a training
curriculum designed to remedy deficiencies, and thereby increasing satisfaction
and adequate performance (Clardy, 2012) among employees.

Heathfield
(2016) defined employee satisfaction as a terminology used to describe whether
employees are happy and contented and fulfilling their needs and desires at
work.  The importance of employee
satisfaction in an organization cannot be overemphasized.  Literature suggested that it leads to
employee loyalty (Hunter & Tietyen, 1997), productivity (Allen &
Wilburn, 2002), reduced turnover (Carpitella, 2003), lesser abseentism (Maloney
& McFillen, 1986), customer satisfaction (Brown, 2006), higher employee
engagement, employee motivation and positive morale in the workplace (Jose
& Mampilly, 2012).

            The Global Human Resource Competency
Survey (2016), despite its indicative result on the relative importance of the
human resource competencies, supports that human resource competencies will
certainly help HR professionals to deliver value to its organization. The
study, further, reduce the main function of these competencies – the employees’
satisfaction – the attainment of such is the key responsibility of the human
resource personnel. It is a realization, however, that in the exercise of the
human resource competencies, the principal, most crucial, and the most
difficult one to attain is to ensure that an employee is satisfied (Khan,
Ahmed, Zulqarnainm, & Jamil, 2015).

The
exercise and implementation of the set of human resource competencies defines
the key responsibility of the human resource personnel to ensure that employees
are productive because they are satisfied. Employee satisfaction can be
considered as one of the most important goal of an organization as it cannot
achieve its objectives without keeping their employees satisfied. It is
believed that empowering HR professionals will ultimately lead to higher
employee satisfaction and better public service.  According to the CSC (2012), being a human
resource professional is not just knowing the function of the position but
being able to apply various competencies to a certain degree of competence that
will ultimately lead to employee satisfaction and performance.

            The significant importance of
employee satisfaction resulted to various international studies and
investigations – basic or applied. They were and have been conducted
continuously to establish universally accepted correlates and significant
indicators of employee satisfaction. Sager, Rafat & Agarwal (2012)
suggested some correlates like organization development, policies on
compensation and benefits, promotion and career development, job security,
working environment and conditions, relationship with supervisor, leadership
styles, and work groups. 

Other
factors that determine employee satisfaction are perceived fairness of
promotion system, social relationships, job itself (Parvin, M. & Kabir, M.,
2011), trust in management and peers (Matzler & Renzl, 2006), HRM practices
(Priya, 2013) and HR competencies (Khan, Ahmed, Zulqarnainm & Jamil, 2015).
All of these are, however, studies conducted for the betterment of private
manufacturing and service organizations. There is a dearth in studies focusing
on the public sector. In fact, no studies were made to investigate the impact
of the competency level of HR professionals employed in the government service
on the employee satisfaction specifically on the implementation of HR programs
and activities.

Employee
satisfaction, being equal of importance in all organizations, must not only
provide information for private entities. It is of tantamount significance that
factors affecting employee satisfaction among government institutions must also
be provided. This study intends to provide one – the influence of the human
resource competencies to the employee satisfaction among government agencies.
This will lead to a deeper understanding of job satisfaction, and a way to a
better comparison of such between private and public institutions. Thus, this
study.

 

2.0       Theoretical and Conceptual Framework

This
study is anchored on the Human Resource Integrative Model (Yeung & Berman,
2003) which connects human resource framework to key result areas of an
organization. The model stressed that human resource practices and functions
were conceptualized as a key driver in enhancing employee satisfaction. 

It
also anchored on the work of Brockbank, Ulrich, & Beatty (1999) who
espoused that to function effectively, human resource professionals must master
a set of competencies.  Competent human
resource professionals must have personal credibility, knowledge, and behaviors
to ensure the proper implementation of HR practices and functions.

From the review of
related literature, the framework below has been formulated to serve as a guide
for this study.  It showed human resource
competencies in various human resource areas as a significant predictor of the
employee satisfaction in a public organization, more specifically, among
government agencies.

 

 

 

Figure 1.
Conceptual Framework of the Study

3.0       Research Methodology

This study employed the predictive
cross-sectional design. The design aims to predict some variables of interest
typically called the criterion using information from other variables called
the predictors. A one-time data collection was used.  The development of the proper set of
predictors for a given variable is often the focus of this design (Johnson,
2001). The design, however, started with descriptive-correlation. Once standard
correlational value for prediction is attained, (e.g. the coefficient of
determination (R2-value)), predictive analysis will follow (Lappe,
2000).

 

Data
were collected following the basic principle of data mining. It is the process
of extracting patterns and relationships from data rather than pre-formulated
hypothesis (Chong, 2016). It is through this design that a deterministic model
helpful in determining employees’ satisfaction in a state university can be
explored and be established through regression analysis. Inputs of the proposed
model are human resource competencies of human resource personnel which the
researchers assumed to be hypothetically factors affecting employee
satisfaction.

This study adopted
the CRISP-Data Mining Model that
began in mid-1997 and was funded in part by the European commission. The model
follows the following procedure:

Business Understanding. This initial
phase focuses on understanding the project objectives and requirements from a
business perspective, and then converting this knowledge into a data mining
problem definition, and a preliminary plan designed to achieve the objectives.

Data Understanding. The data
understanding phase starts with an initial data collection and proceeds with
activities to become familiar with the data, to identify data quality problems,
to discover first insights into the data, or to detect interesting subsets to
form hypotheses for hidden information.

Data Preparation. The data
preparation phase covers all activities to construct the final dataset (data
that will be fed into the modelling tool(s)) from the initial raw data. Data
preparation tasks are likely to be performed multiple times, and not in any
prescribed order. Tasks include table, record, and attribute selection as well
as transformation and cleaning of data for modeling tools.

Modelling. In this phase,
various modelling techniques are selected and applied, and their parameters are
calibrated to optimal values. Typically, there are several techniques for the
same data mining problem type. Some techniques have specific requirements on
the form of data. Therefore, stepping back to the data preparation phase is
often needed.

Evaluation. At this stage in
the project the model (or models) built appears to have high quality from a
data analysis perspective. Before proceeding to final deployment of the model, it
is important to evaluate the model more thoroughly, and review the steps
executed to construct the model, to be certain it properly achieves the
business objectives. A key objective is to determine if there is some important
business issue that has not been considered sufficiently. At the end of this
phase, a decision on the use of the data mining results should be reached.

Deployment. Creation of the
model is generally not the end of the project. Even if the purpose of the model
is to increase knowledge of the data, the knowledge gained will need to be
organized and presented in a way that the client can use. Depending on the
requirements, the deployment phase can be as simple as generating a report or
as complex as implementing a repeatable data mining process.  In many cases it will be the client, not the
data analyst, who will carry out the deployment steps. However, even if the
analyst will not carry out the deployment effort it is important for the client
to understand up front what actions will need to be carried out to make use of
the models created.

Data
were retrieved from the website of Civil Service Commission at
https://goo.gl/2wkCiC.  A total of 5,790
government employees responded to Agency HR Climate Survey which was
administered online by the Civil Service Commission on the first semester of CY
2012.  It was made to gather the
knowledge and experiences of employees on the agency human resource management
programs and practices.  The survey
included among others the assessment of the competency level of the human
resource professionals in their respective agencies and the level of employee
satisfaction. Descriptive, correlational, and predictive analysis will be
conducted to establish a predictive model between human resource competencies and
employee satisfaction among public institutions.

 

4.0 Results

Descriptive
analysis of data reveals that government employees assessed their human resource management programs and practices as intermediate
and advance. With high percentage of response are seen in these two levels, HR competencies among government
offices delivered the necessary competencies as expected, but not
superior as desired by some idealistic employee – someone who desires
perfection of service delivery.

Table 1

Competency
Level per Human Resource Competencies

HR Competencies

Response (N=5790)

Basic

 

Intermediate

 

Advance

 

Superior

f

%

 

f

%

 

f

%

 

f

%

 

RSP Competencya

178

0.03

 

2122

0.37

 

2943

0.51

 

547

0.09

 

L & D Competencyb

211

0.04

 

2992

0.52

 

2483

0.43

 

104

0.02

 

PerMa Competencyc

1

0.00

 

1840

0.32

 

2215

0.38

 

765

0.13

 

R & R Competencyd

924

0.16

 

1856

0.32

 

2236

0.39

 

774

0.13

 

RM & other Competenciese

47

0.01

 

2833

0.49

 

2861

0.49

 

49

0.01

 

Note: aRecruitment, Selection, and
Placement Competency; bLearning and Development Competency; cPerformance
Management Competency; dRewards and Recognition Competency; eRecords
Management and other Competencies

 

 

            Further
descriptive analysis shows that these level of evaluation on the HR practices
and programs as a manifestation of the HR personnel’s level of competency leads
towards satisfaction of the employees. In fact, majority of the participants of
the study are really satisfied on the implementation of the various practices
of the HR personnel.

To ensure
unique contribution of each predictor variable to the dependent variable,
multicollinearity test among variables was conducted using the Principal
Component Analysis (PCA). Multicollinearity test leads to the elimination of
some variables that are highly collinear, that is, variables that measures the
same concept. Removing redundancy can help us select the best possible model by
providing the most precise estimate possible (Paul, 2012; Daguplo, 2017).
Result of the analysis revealed that every variable is a unique contributor to
the satisfaction level of HR competencies (Fig. 2). Ordinal regression
analysis, however, shows that none of these variables are significant
predictors of the latter.

 

 

Table 2

Ordinal
Regression Analysis to Identify Significant Predictors of Employee Satisfaction

Predictor

Coefficient

SE
Coefficient

Z

P

Odds
Ratio

Const (1)

-3.65

0.24

-15.34

0.000

 

Const (2)

-1.90

0.22

-8.50

0.000

 

Const (3)

-0.21

0.22

-0.96

0.336

 

Const (4)

1.41

0.22

6.35

0.000

 

RSP Competency

-0.04

0.04

-1.05

0.294

0.96

L & D Competency

-0.01

0.05

-0.04

0.968

1.00

RM & other Competencies

0.01

0.06

0.09

0.926

1.01

R & R Competency

-0.02

0.03

-0.66

0.508

0.98

PerMa Competency

-0.01

0.03

-0.51

0.608

0.99

Note: Test for All Slopes equal to zero (p-value =
0.871)

 

To establish
the adequacy and acceptability of the model, the goodness-of-fit test was used
(Table 3) to determine whether the predicted probabilities deviate from the
observed probabilities in a way that the distribution does not predict. The
goodness of fit tests for model adequacy shows that the model is fit for the
data (p-value > .05). Model adequacy would guarantee applicability of
utilization in the prediction process.

Table 3

Ordinal
Regression Analysis to Identify Significant Predictors of Employee Satisfaction

Method

Chi-Square

DF

P

Pearson

11542.4

11535

0.479

Deviance

9075.6

11535

1.000

Note: if p-value < .05, the model does not fit the data               With adequate model, there is also a need to verify how well the model reflects the observed data. There is a need to look at the number of concordant and discordant pairs in the proposed model. The proportion of concordant/discordant pairs is a measure of the level of agreement between the model predictions and the observations. Table 4 shows the proportion of concordant pairs (49%) compared with the discordant pairs (47%), a result that is desirable.     Table 4 Measures of Association between the Response Variable and Predicted Probabilities Pairs Number Percent Summary Measures   Concordant 5884719 48.9 Somers' D 0.02 Discordant 5662164 47.1 Goodman-Kruskal Gamma 0.02 Ties 481354 4.0 Kendall's Tau-a 0.01 Total 12028237 100.0     Note: The higher the concordance ratio, the better is the model.   5.0 Discussion             This study, at first, hypothesizes that human resource competencies predicts employee satisfaction. Result of the inferential analysis, however, revealed that data is not enough to support this hypothesis. Ordinal Regression Analysis, though model is adequate, provides evidence that none among human resource competencies are significant predictors of employee satisfaction. Despite the fact that L and D competencies and RM and other competencies are 1.01 times more likely to affect employee satisfaction, the odds does not guarantee significant effect.             The result indicates that although government employees value the knowledge, skills, abilities and characteristics of their Human Resource Management Officers, yet it is not a key factor that influences their satisfaction level on the agency's HR systems and implementation of HR programs and activities.  This is consistent with the findings of Brockbank (2016) who recognize the importance of a competent HR professional but emphasized that the HR department working as a team has more impact to an employee.  An effective HR deparment as a whole consistently explain more the employees' satisfaction level than the competencies of the individual within the team.             Another possible reason why HR competencies do not predict employee satisfaction is that the type of activities and HR practices implemented in the organization outweighs HR competencies in influencing employee satisfaction.  Studies revealed that HR practices affect employee satisfaction in private sector (Byrne, Miller & Pitts, 2011;   Rahman, 2012) and the use of specific HR practices was associated with a greater degree of job satisfaction in the public sector (Gould-Williamm, 2003). Thus, the types of HR activities of the organization matters more to the employees more than the competencies of the HR professional since they can readily experience and directly feel the effects of the programs implemented. Neglecting to factor in HR competencies in keeping employees satisfied might have dire consequences for the organization. One of the responsibilities of an HR professional is keeping employees satisfied (Ramlall, 2006).  Keeping employees satisfied entails provision of HR programs that caters to the needs of employees and without competencies, an HR professional cannot properly launch HRM programs (CSC, 2014).  This is supported by Brockbank (2016) who stated that 50 percent of the perceived performance of an HR professional is due to their competencies.                                   Dear, pls continue the interpretation:                                     4 components of interpretation:                                       What is the result? I have given already.                                     Why? (diagnose)…understand the reason of the result. Why is it that among government agencies HR competencies do not predict employee satisfaction?                                       What will happen? Predictive…What could possibly be the effect of this?                                     What can be done? …. Any positive action as intervention.                           (ALWAYS SUPPORT WITH LITERATURE)…   Byrne, Z. S., Miller, B. K., & Pitts, V. E. (2011). Trait entitlement and perceived favorability of human resource management practices in the prediction of job satisfaction. Journal of Business and Psychology, 25, 451-464.   Rahman, Mohammad. (2012). The Role of Human Resource Management practices on Job Satisfaction and Organizational Commitment in Banking Sector of Bangladesh- A Comparative Analysis. Journal of Faculty of Business Administration (JFBA),. Volume-9. . 1.         Gould-Williams, J., The Importance of HR practices and work Place trust in achieving superior performance: a study of public-sector organizations. International Journal of Human Resource Management, Vol.14, No.1, pp. 28-54, 2003.  

Comments are closed.