A Study of Turnover Rate Among Car Salesman in Pulau Pinang, Malaysia
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A STUDY OF TURNOVER RATE AMONG CAR SALESMAN IN PULAU PINANG, MALAYSIA BY LEE KEAT NEE LOH PHUI MANN SOO MOONG YEE TEH YONG YEE WONG PIT CHEE A research project submitted in partial fulfillment of the requirement for the degree of BACHELOR OF BUSINESS ADMINISTRATION (HONS) UNIVERSITI TUNKU ABDUL RAHMAN FACULTY OF BUSINESS AND FINANCE DEPARTMENT OF BUSINESS AUGUST 2013 Copyright @ 2013 ALL RIGHTS RESERVED. No part of this paper may be reproduced, stored in a retrieved system, or transmitted in any form or by any means, graphic, electronic, mechanical, photocopying, recording, scanning, or otherwise, without the prior consent of the authors. ii DECLARATION We hereby declare that: 1) This undergraduate research project is the end result of our own work and that due acknowledgement has been given in the references to ALL sources of information be they printed, electronic, or personal. 2) No portion of this research project has been submitted in support of any application for any other degree or qualification of this or any other university, or other institutes of learning. 3) Equal contribution has been made by each group member in completing the research project. 4) The word count of this research report is 26748 words. Name of Student: Student ID: Signature: 1. LEE KEAT NEE 11ABB00131 ___________ 2. LOH PHUI MANN 11ABB00052 ___________ 3. SOO MOONG YEE 10ABB05392 ___________ 4. TEH YONG YEE 11ABB00130 ___________ 5. WONG PIT CHEE 11ABB00477 ___________ Date: 15 August 2013 iii ACKNOWLEDGEMENT We sincerely appreciate this given opportunity to express our deepest gratitude to those who have made this dissertation possible. We are grateful and truly appreciate their kindness in giving us thoughtful advices, guidance, suggestions and encouragement to assist us in the completion of this research project. First and foremost, we would like to acknowledge our respectful supervisor, Ms Norhayati Binti Md Isa who guide and assist us patiently throughout the entire research. Her expertise, knowledge, conscientiousness, useful comments and suggestions, as well as valuable feedback given have helped us in completing our research project. Besides, we would like to give special thanks to our family members who have been our financial and spirit backbone while doing this research project. Also, gratefulness is paid to our group members for full cooperation and contributions in this research project. Without teamwork and understanding, we might face a lot of difficulties in doing this research project and thus could not complete it on time. Furthermore, we would like to express our appreciation to all the respondents who spend their precious time and patience in helping us filled out the questionnaire. Without their participation, we could not complete our research project successfully. Once again, we are truly grateful and honestly thankful to all the people who assist us in completing this research project. iv DEDICATION This work done is especially dedicated to: Our supervisor, Ms Norhayati Binti Md Isa, family members and friends for giving their unlimited support, help, encouragement and motivation throughout the completion of our research project. v TABLE OF CONTENTS Page Copyright Page…………………………………………………………………... ii Declaration………………………………………………………………………. iii Acknowledgement……………………………………………………………..... iv Dedication……………………………………………………………………...... v Table of Contents………………………………………………………………... vi List of Tables……………………………………...…………………………….. xiii List of Figures……………………………………..……………………………... xv List of Appendices………………………………….……………………………. xvi Preface……………………………………………….…………………………... xvii Abstract……………………………………………….…………………….……. xviii CHAPTER 1 INTRODUCTION………………….………………………… 1 1.0 Introduction……………………….……………………..…… 1 1.1 Research Background………………………………………… 1 1.2 Problem Statement……………………………………….…… 3 1.3 Research Objective…………………………………………… 5 1.3.1 General Objective……………………….…….…… 5 1.3.2 Specific Objective………………………….…….… 5 1.4 Research Questions…………………………………….……... 6 1.5 Hypothesis of the Study………………………………………. 7 vi 1.6 Significance of the Study…………………………………….. 8 1.7 Chapter Layout………………………………………………. 11 1.8 Conclusion…………………………………………………… 12 CHAPTER 2 LITERATURE REVIEW……………………………….…… 14 2.0 Introduction……………………………………………...…… 14 2.1 Review of the Literature……………………………………… 14 2.1.1 Turnover Rate……………………………………… 14 2.1.2 Employee Empowerment…………………………... 16 2.1.3 Working Environment……………………………… 20 2.1.4 Reward……………………………….….………..… 23 2.1.5 Supervisory Support…………………….………….. 26 2.1.6 Job Stress……………………………………..…….. 29 2.2 Review of Relevant Theoretical Model…………………….…. 32 2.2.1 Employee Empowerment……………………………. 32 2.2.2 Working Environment………………………….……. 33 2.2.3 Reward………………….………….………………… 34 2.2.4 Supervisory Support…………………….……………. 36 2.2.5 Job Stress………………..………….……………..….. 37 2.3 Proposed Theoretical / Conceptual Framework………….…..…. 38 2.4 Hypothesis Development……………………………….….…… 40 vii 2.5 Conclusion…………………………………..………………… 42 CHAPTER 3 RESEARCH METHODOLOGY…………..…………………. 43 3.0 Introduction……………………………….…………………… 43 3.1 Research Design……………………….……………………… 43 3.2 Data Collection Methods…………….………………………... 45 3.2.1 Primary Data…………..……………………………. 46 3.2.2 Secondary Data………..………………………….… 46 3.3 Sampling Design………………………………….…………… 47 3.3.1 Target Population…………..…………….…………. 47 3.3.2 Sampling Frame and Sampling Location…..……….. 50 3.3.3 Sampling Elements…………..……………..……..… 50 3.3.4 Sampling Technique…………..………….…………. 51 3.3.5 Sampling Size…………..…………………………… 51 3.4 Research Instrument……………………………………………. 52 3.4.1 Questionnaire Design…...…………………………… 52 3.4.2 Pilot Test………………...……………………….…... 54 3.5 Construct Measurement………………………...………..……... 56 3.5.1 Origins of Sources of Measurement…........….………. 56 3.5.1.1 The Definition of Construct…………….. 57 3.5.2 Scale of Measurement……………...…….…...……… 59 viii 3.6 Data Processing………………………………………...……. 62 3.6.1 Editing……………….…...………………...……... 62 3.6.2 Coding……………….…...……………………….. 62 3.6.3 Data Entry…………….…...…………………….... 63 3.6.4 Validation…………….…...………………………. 63 3.6.5 Tabulation……………….…...………………….... 63 3.7 Data Analysis……………………………………………...… 64 3.7.1 Descriptive Analysis...…...……………………….. 65 3.7.2 Scare Measurement..……...………………………. 65 3.7.3 Inferential Analysis……...……………………..…. 66 3.7.3.1 Pearson Correlation Analysis………… 66 3.7.3.2 Multiple Regression Analysis………… 67 3.8 Conclusion……………………………………………………. 68 CHAPTER 4 RESEARCH RESULTS……………………………………… 69 4.0 Introduction…………………………………………………… 69 4.1 Descriptive Analysis………………………………………….. 70 4.1.1 Respondent Demographic Profile.…………………. 70 4.1.1.1 Gender…………………………………. 70 4.1.1.2 Ethnicity……………………..………… 72 4.1.1.3 Age…………………………………….. 73 ix 4.1.1.4 Monthly Salary………………………... 75 4.1.1.5 Education Level..……………………… 77 4.1.1.6 Service Length………………………… 79 4.1.2 Central Tendencies Measurement of Constructs…… 81 4.1.2.1 Employee Empowerment……………... 81 4.1.2.2 Working Environment………………… 84 4.1.2.3 Reward……………………………….... 87 4.1.2.4 Supervisory Support…………………... 90 4.1.2.5 Job Stress………………..…………….. 92 4.1.2.6 Turnover Rate…………..……………... 95 4.2 Scale Measurement………………………………………….. 97 4.2.1 Employee Empowerment…………………………... 98 4.2.2 Working Environment………………………….…... 98 4.2.3 Reward………………………………………….….. 99 4.2.4 Supervisory Support….……………..………….….. 100 4.2.5 Job Stress……………..…………………..……..…. 100 4.2.6 Turnover Rate………………………….………....... 101 4.3 Inferential Analysis…………………………………………… 102 4.3.1 Pearson Correlation Coefficient Analysis……….…. 102 4.3.1.1 Employee Empowerment……………… 102 x 4.3.1.2 Working Environment………………… 104 4.3.1.3 Reward………………………………… 105 4.3.1.4 Supervisory Support…………………… 107 4.3.1.5 Job Stress………………..…………….. 108 4.3.2 Multiple Linear Regression Analysis……….……… 110 4.4 Conclusion…………………………………………………….. 115 CHAPTER 5 DISCUSSION AND CONCLUSION………………………… 116 5.0 Introduction……………………………………………………. 116 5.1 Summary of Statistical Analysis……………………………..... 116 5.1.1 Description Analysis……….….………………..….. 116 5.1.2 Central Tendencies Measurement of Construct.…… 118 5.1.3 Scale Measurement…………………………….…… 121 5.1.4 Summary of Inferential Analysis…………………… 122 5.2 Discussion on Major Finding…………………………………... 124 5.2.1 Relationship between Employee Empowerment and Turnover Rate……………………………………….. 125 5.2.2 Relationship between Working Environment and Turnover Rate............................................................................. 126 5.2.3 Relationship between Reward and Turnover Rate...... 127 5.2.4 Relationship between Supervisory Support and Turnover Rate…………………………………………………. 128 xi 5.2.5 Relationship between Job Stress and Turnover Rate........................................................................ 129 5.3 Implications of the Study…………………………………… 131 5.3.1 Managerial Implication…………….…………….. 131 5.4 Limitation of the Study……………………………………... 132 5.5 Recommendations for Future Research………………….…. 133 5.6 Conclusion……………………………………………….…. 134 REFERENCES…………………………………………………………….….. 135 APPENDICES………………………………………………………………… 145 xii LIST OF TABLES Page Table 3.1: Number of Car Showroom in Pulau Pinang, Malaysia………………. 49 Table 3.2: The Standard of Coefficient Alpha…………………………………… 54 Table 3.3: Reliability Test Results……………………………………………….. 55 Table 3.4: Original Sources of Measurement……………………………………. 56 Table 3.5: The Operational Definition of Constructs……………………………. 57 Table 3.6: The Scale of Measurement…………………………………………… 61 Table 3.7: Pearson Correlation Coefficient……………………………………… 67 Table 4.1: Statistics of Respondents‟ Gender……………………………………. 70 Table 4.2: Statistics of Respondents‟ Ethnicity………………………………….