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Faculty of Industrial Sciences & Technology, Universiti Malaysia Pahang, Lebuhraya Tun Razak, 26300 Kuantan,
Pahang, Malaysia.
22
School of Mathematical Sciences, Faculty of Science & Technology, Universiti Kebangsaan Malaysia, 43600 UKM
Bangi, Selangor, Malaysia.
3
UKM-Graduate School of Business, Universiti Kebangsaan Malaysia, 43600 UKM Bangi, Selangor.
4
Faculty of Defence Studies and Management, National Defence University of Malaysia, Sg. Besi Camp, 57000, Kuala
Lumpur, Malaysia.
Accepted 19 September, 2011
Employees are an asset to the organisation and therefore, values that surround them have to be
empowered for the benefit of the organisation. This article examines the factor structure of employee
values which are fairness, consultative, mutual trust, acknowledgement, altruism and empowerment.
Questionnaires were distributed to staff at the selected Higher Education Institution (HEI) in the east
coast of Malaysia. The data collected was analysed using confirmatory factor analytic (CFA) approach
in order to test the 6-factor hypothesized model of employee values. The revised hypothesized CFA
model yielded a p-value of 0.180, normed chi-square of 1.329, CFI of 0.995, TLI of 0.990, GFI of 0.960 and
RMSEA of 0.054 that suggested 4 core values, that is, fairness, consultative, mutual trust and altruism
that dominantly explained the universitys employee values in the selected university. Besides,
Bayesian estimation was then employed to cross-validate and support the modeling result obtained
from the maximum likelihood (ML) estimation. Both Bayesian and ML estimation results are
comparatively agreed to each other. The findings may pave the way forward for empowering values
adoption and embracement for employees especially at the HEI in Malaysia.
Key words: Fairness, consultative, mutual trust, acknowledgement, altruism, empowerment.
INTRODUCTION
Organisations face a variety of changes and challenges
that will have a profound effect on organizational dynamics and performance (Abdullah et al., 2011). Part of the
challenge comes from within the organisation itself, that
is, the human resource of the organisation that revolves
around the employee motivation and commitment,
managing a diverse workforce, and ethical behavior of
workforce (Abdullah et al., 2011). In order to overcome
and respond quickly to arising issues, organisations need
to clearly underline, yet be flexible and bold in embarking
on a new paradigm of organisational core values deployment, especially for employees. Values are said to be the
factor of the collapse of leading companies in the world
that disregard values as addendum to organisational
Ab Hamid et al .
LITERATURE REVIEW
Human resources or labour is an important asset
(Cravens and Oliver, 2006; Marzo et al., 2007; Nik
Mustapha, 2003) to the success of the organization. Nik
Mustapha (2003) asserts that for an organization to
become more competitive, the potential of every worker
should be polished. If this does not happen, it will hinder
the performance of the organization. By this approach,
the workers will be directly involved in the management
of the organization (Nik Mustapha, 2003). On top of that,
the management should also recognize the contribution
of workers, either through ideas or skills possessed in the
development of the organization (Cyert, 1993). Therefore,
they should be of concern since these workers will be
dealing with customers directly (Dzansi and Dzansi,
2010). For an organization to become more pro-active
and competitive in the global market, organizations must
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Core values
Fairness
Value-based Indicators
The degree of people that are promoted based on their merits and are given equal chance for promotion.
Consultative
The degree of the staff to voice out their views/opinions and actively sought by the management in making
important decision.
Mutual trust
The degree to which the organisational management entrusts the staff to complete the given task and
responsibility and the differences in opinion are not perceived as a hindrance in achieving goal.
Acknowledgement
The degree to which the organisation gives recognition/appreciation to those who contribute to the
organisation and the staff achievements are made public.
Altruism
The degree of the management to encourage the staff to look after the welfare/needs of others as well as
incentives/acknowledgement are given to staff who voluntarily sacrifices time and effort for the organisation.
Empowerment
The degree of which staff are given authority to make decisions that are deemed necessary within their job
scope and level of authority.
Ab Hamid et al.
METHODOLOGY
Here, the sampling technique, instrumentation and the data
screening procedure were discussed prior to the confirmatory factor
analysis (CFA) technique in testing the hypothesized model as in
Figure 1. Ab Hamid et al. (2010b, 2011a, b) gives examples of CFA
use.
The hypothesized CFA model
Henceforth, all six core values that focus on the employee criteria
discussed are very important in an organization. The values being
discussed are critical values that are important to drive the
organization towards achieving overall performance excellence.
However, the list of values are not exhaustive but to the extent of
12635
Sampling
This is an exploratory study that involves only one selected public
university in east coast of Malaysia. This study employed stratified
sampling method as it involves 2 strata, that is, academic and nonacademic staff. The responses are anonymous since they are not
required to indicate their identification. Respondents were chosen
conveniently in each strata. In other words, the population is first
divided into mutually exclusive groups that are relevant, appropriate
and meaningful in the context of the study (Sekaran, 2006).
12636
Core values
Code
EF1_1
EF2_1
Items
Staff promotion is based on merit.
Each staff has equal chance at promotion.
Consultative
EF3_1
EF4_1
Mutual trust
EF5_1
EF6_1
The management place their trust on the staff to complete their tasks and responsibilities.
Difference in opinion among the staff does not hinder the university in achieving its aims
Acknowledgement
EF7_1
EF8_1
EF9_1
EF10_1
The management encourages the staff to care for the welfares of their co-workers.
The management provides incentives to staff who have sacrificed their time and effort in the name
of the university
EF11_1
EF12_1
Staff are empowered to make the necessary decision within their job scope and authority.
The top management decentralizes certain powers to the responsibility of center/department/unit.
Fairness
Altruism
Empowerment
Ab Hamid et al.
12637
0.81
0.90
0.94
0.97
0.92
0.88
0.94
0.70
0.93
0.97
0.70
0.80
0.60
0.89
0.84
0.84
0.80
0.82
0.90
0.84
0.92
FINDINGS
In this study, confirmatory factor analytic approach (CFA)
was used to determine the construct validity of the survey
items. It means how well the construct explained the
variables under study. In other words, whenever the
correlation of the items within the same construct is
relatively high it is said to have the construct validity.
Also, the factor loading and the squared multiple correlations (SMC) of the items are significantly correlated to
the specified construct would also contribute to the
construct validity comprehension.
From the initial findings of CFA in Figure 1, the
hypothesized model yielded several offending estimates.
The offending estimates occurred for the factor loading
that are greater than 1 whereas it should be in the range
12638
Loading
Fairness > EF1_1
Fairness > EF2_1
Consult > EF3_1
Consult > EF4_1
Mutual Trust > EF5_1
Mutual Trust > EF6_1
Altruism > EF9_1
Altruism > EF10_1
ML
1.000
1.200
1.000
1.035
1.000
1.050
1.000
1.191
Bayesian
1.192
1.031
1.041
1.189
Ab Hamid et al.
Conclusions
In this study, the hypothesized CFA model fits the sample
data fairly well and we may conclude that the fourdimension of employee focus values fit the university
value-based employee CFA model. In other words, there
is no proof that the model is incorrect (Nordin, 2011).
From the overall re-specified model, we can simply say
that the university employees must embrace the core
values of fairness, consultation, mutual trust and altruism
in order to gear up for achieving excellence by infusing
the values into employees. However, this does not imply
that the value of empowerment and acknowledgement
are not important employee values.
In the sampled HEI, these values were perceived to be
dominant among the university staff and university
management should be aware of this and take advantage
of these four values to further strengthen the values
among employees in order to create and realise the
value-based organisation endeavour further. This is
important if an organisation wants to be institutionalized it
must be infused with values (Abdullah et al., 2011;
Collins and Porras, 1996; Selznick, 1957).
Caveats should also be taken when interpreting the
results of this study since the sample size of this study is
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