CHAPTER 2

LITERATURE REVIEW

2.0 Introduction

In Chapter 2, it is consists of literature review, relevant theoretical models, conceptual framework and hypotheses development. Literature review also consists of discuss and evaluate of research studies which related to research topic. The purpose of the literature review is identifying secondary data from journal and articles which related to this research topic. By this, it can evaluate the factors that affect job satisfaction in education industry.

2.1 Review of the Literature

The research topic is evaluating the factors that affect job satisfaction in education industry. The dependent variable for this research is job satisfaction while the independent variable for this research is pay and benefit, stress, relationship, training and moderating variable is demographic.

2.1.1 Job Satisfaction

According to A. Solucis Santhapparaj and Syed Shah Alam, 2005, there are few variables to determine job satisfaction key factors such as age, gender, education status, hours of work and earnings figure. Those variables that significant influence on job satisfaction likes age, marital status, number of children, education level and experience.

Job satisfaction is describes how content an individual is with his or her job. People are happy with their job are those who more satisfying their job. People are always measure job satisfaction because if lack of job satisfaction, the employer will lose good skill employees, Mohsin Nadeem, 2010.

According to Chan, M. J., Pan, Z. D., and Lee, L. F. F., 2004, job satisfaction define as individual’s values, ideals and beliefs which can influence employee’s overall assessment of his or her job and job related experiences.

Other author John O. Okpara, 2006 define job satisfaction as a person’s constructive poignant response to certain job and a person compare actual outcomes with those that are desired, anticipated or deserved lead to affective reaction to a job.

Based on In-Sook Lee, n.d., job satisfaction is describes as quality of job by objective condition and subjective attitude of job. In addition, it is vital to identify factors that affect job satisfaction and differences of job satisfaction in order to understand the major factor that affects job satisfaction.

Badreya Al Jenaibi, 2010, job satisfaction can affect employees’ initiative and enthusiasm. When lack of job satisfaction, it will cause absenteeism and turnover in a workplace.

In addition, factors that influence job satisfaction in work environment relate with 7 dimensions such as work itself, supervision, organization and management, promotion, pay and benefits, coworkers and working condition, Green, W. H., 2002.

Badreya Al Jenaibi, 2010 also mention that in order to increase job satisfaction must take few steps which are increase creativity, responsibility, safe work environment, feedback and support from manager, update technology and competitive salary and promotion opportunity.

2.1.2 Pay and benefit

Saif-ud-Din, Khair-uz-Zaman and Allah Nawaz, 2010, found that pay is first and primary factor for job satisfaction. Based on Naval, B. and Srivastava, D., 2004, fair pay system is connected with job satisfaction.

According to A. Solucis Santhapparaj and Syed Shah Alam, 2005, it state that fringe benefits have negative effect on job satisfaction because for those private self finance school, the management more focus on student’s satisfaction but not on job satisfaction.

John O. Okpara, 2006 found that female receive low pay will lead to low satisfaction with their pay than male and it follow by decrease in job satisfaction. Beside, author also found that female low satisfy with the opportunity for promotion. Therefore, promotion policy should base