MANAGEMENT PRACTICES TOWARDS INDIVIDUAL JOB PERFORMANCE: A CASE OF PT. PUSRI REGIONAL MARKETING OFFICE (PPD), PALEMBANG,
SOUTH SUMATERA
SARAH CYNTIA ANGGRAINI
OTHMAN YEOP ABDULLAH GRADUATE SCHOOL OF BUSINESS
UNIVERSITI UTARA MALAYSIA
2012
MANAGEMENT PRACTICES TOWARDS INDIVIDUAL JOB PERFORMANCE: A CASE OF PT. PUSRI REGIONAL MARKETING OFFICE (PPD), PALEMBANG,
SOUTH SUMATERA
A dissertation submitted to the Othman Yeop Abdullah Postgraduate Studies In fulfillment for the requirement of a degree in
MSc. Management
by
SARAH CYNTIA ANGGRAINI (808651)
OTHMAN YEOP ABDULLAH GRADUATE SCHOOL OF BUSINESS
UNIVERSITI UTARA MALAYSIA
2012
DECLARATION
I declare that the substance of this project paper has never been submitted for any degree or post graduate programs and qualifications.
I certify that all the supports and assistance received in preparing this project paper and all the sources abstracted have been acknowledge in this stated project paper.
SARAH CYNTIA ANGGRAINI
808651
Research and Innovation
Othman Yeop Abdullah Graduate School of Business Universiti Utara Malaysia
06010 Sintok Kedah Darul Aman
January 20, 2012
ABSTRACT
The great achievements of PT. PUSRI have resulted from strategies and innovation based upon the various management areas and subsidiaries holding company. The management of PUSRI has built a strong foundation and continuously directed the company to ensure the good implementation of strategies. PPD as a central marketing office which has responsibility to create the market strategy and distribute the fertilizers should able to give the customers such a good services and good reputation for PUSRI itself. Consequently the company require hard working, high commitment and competent staff members. Therefore the purpose of the study is to examine empirically the relationship between management practices on job performance at PPD SUMSEL. Specifically the dimension of management practices that was examined was leadership practices, communication practices and reward practices. The respondents of the study are 106 employees. The Pearson correlation suggested management practices have significant correlation with job performance.
Multiple regression analysis indicated leadership and reward practices were the predictors in explaining the respondents’ job performance. The findings were discussed and recommendations for future research were also addressed.
ACKNOWLEDGEMENT
First and foremost praise and gratitude go to Allah, the Almighty, for bestowing me with great strength, patience, and courage in completing this thesis. There are a number of individuals whom I owe my deepest gratitude. Firstly, my sincere, appreciation, gratitude, and heartfelt thanks go to my supervisor Dr. Muhammad Nasri Bin Md Hussain and my examiner Dr. Abdullah Bin Haji Abdul Ghani, the dedicated and aspiring mentor for his continuous guidance, suggestions, and constructive criticisms all in a bid to make this work a success. I thank him very much. Moreover, my heartfelt thanks are extended to the academic and non-academic for their helpful assistance, and especially to all lecturers in School of Business at Universiti Utara Malaysia that have trained me as a student.
My deepest thanks and appreciation to my beloved parents Syahbana and Rahmawati, my siblings Rany, Dea, and Gandhi for the prayers, their unconditional love, encouragement, supports and sacrifices in the success of my study. What I have done, I have done to make them proud.
Last but definitely not the least, I would also like to thank all of my friends and everyone that have been contributed by supporting my work and help myself during the study, especially to my fellow post-graduate colleagues. This journey would not have been possible without them.
Sarah Cyntia Anggraini, 2012
TABLE OF CONTENTS
DECLARATION i
PERMISSION TO USE ii
ABSTRACT iii
ACKNOWLEDGEMENTS iv
TABLE OF CONTENTS v
LIST OF TABLES viii
LIST OF FIGURES ix
CHAPTER 1: INTRODUCTION 1.1 Introduction 1 1.2 Background of Study 7 1.3 Problem Statement 10 1.4 Research Objectives 13 1.5 Research Questions 13 1.6 Significance of Study 14 1.7 Scope of Study 14 1.8 Conclusion 15 CHAPTER 2: LITERATURE REVIEW 2.1 Introduction 16 2.2 The Concept of Management Practices 16
2.3 Job Performance 20
2.4 Leadership practice 23 2.5 Communication Practice 29
2.6 Reward Practice 32
2.7 Research Framework 42
2.8 Conclusion 42
CHAPTER 3: RESEARCH METHODOLOGY
3.1 Introduction 43
3.2 Design of Study 43
3.3 Sampling Design 45
3.4 Questionnaire Design 45
3.5 Data Analysis Technique 50
3.5.1 Validity and Reliability 50
3.5.2 Inferential Statistic 52
3.5.2.1 The Pearson Correlation 52
3.5.2.2 Multiple Regression 53
3.6 Hypotheses 54
CHAPTER 4: RESEARCH FINDINGS
4.1 Introduction 55
4.2 Interpretation Data from Round 1 55
4.2.1 Missing Value 56
4.2.2 Normality 57
5.3 Response Rate 58
5.4 Data Analysis 59
4.4.1 Analysis of Respondents 59
4.4.1.1 Respondents’ Gender 60
4.4.1.2 Respondents’ Age 60
4.4.1.3 Respondents’ Level of Education 61
4.4.1.4 Tenure 62
4.5 Analysis of Result 62
4.5.1 Correlation Results of the Variables 62
4.5.2 Regression Result 66
4.6 Conclusion 69
CHAPTER 5: CONCLUSION and RECOMMENDATION
5.1 Introduction 70
5.2 Overview 70
5.2.1 Summary of Research Objectives 72
5.2.2 Summary of Hypotheses Testing 74
5.3 Implication of Study 75
5.4 Limitation and Further Study 76
5.5 Conclusion 77
REFERENCES 78
APPENDICES 89
LIST OF TABLES
Table 3.1 Dimensions for Job Performance Questions 46
Table 3.2 Dimensions for Leadership Questions 47
Table 3.3 Dimensions for Communication Questions 48
Table 3.4 Description of Questionnaire’s section 49
Table 3.5 Rules of Cronbanch’s Alpha Coefficient Size 52
Table 3.6 Reliability of Instruments 52
Table 3.7 Rules of Thumbs for Correlation Coefficient Size 53
Table 4.1 Response Rate 58
Table 4.2 Classification of Respondents’ Gender 60
Table 4.3 Classification of Respondents by Age 60
Table 4.4 Classification of Respondents by Level of Education 61
Table 4.5 Tenure 62
Table 4.6 Correlations of Leadership Practices and Job Performance 63 Table 4.7 Correlations of Communication Practices and Job Performance 64 Table 4.8 Correlations of Reward Practices and Job Performance 65
Table 4.9 Model Summary 67
Table 4.10 ANOVA 67
Table 4.11 Coefficients 68
LIST OF FIGURES
Figure 1.1 Fertilizer Distribution Flow 9
Figure 1.2 Organization Structure 10
Figure 2.1 Theoretical Framework 42
Figure 4.1 The Normal Q-Q Plot of Job Performance and Management practices 57
1 CHAPTER 1
INTRODUCTION
1.1 Introduction
This chapter explores the problem statement, objectives of the study, research questions, significance of the study, and scope of the study. Hopes this research able to contribute and get more reliable data about the management practices on employee performance in PUSRI Regional Marketing Office (Pemasaran Pusri Daerah (PPD)) Palembang, South Sumatera.
There is no doubt that management practices are linked to the productivity and performance of a company. Researcher provide an extensive review of the literature in terms of research findings from studies that have been trying to measure and understand the impact of management practices toward job performance. Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims (Koontz and Weihrich, 1990). In its expanded form, this basic definition means several things. As managers, people carry out the managerial functions of planning, organizing, staffing, leading, and controlling. The aim of all managers is the same, to create kind of benefit which at the end managing is concerned with productivity which implies effectiveness and efficiency.
The contents of the thesis is for
internal user
only
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