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Original Article | Open Access | Int. J. Manag. Account. 2023; 5(4), 53-65 | doi: 10.34104/ijma.023.0053065

Assessing Job Satisfaction in the Bangladeshi Readymade Garment Industry: A Study of Shams Styling Wears Limited Using PLS-SEM Modeling

Mohammad Masudur Rahman* Mail Img Orcid Img ,
Raduan Che Rose Mail Img ,
Hishamuddin Md Som Mail Img Orcid Img ,
H.T.M. Quader Newaz Mail Img Orcid Img

Abstract

Job satisfaction has been a significant issue worldwide. Dissatisfied employees cannot devote their full attention to their work. Despite making up 84.4% of Bangladeshs total exports, the RMG business is home to some of the countrys most dissatisfied workers. Consequently, this sector is essential to the economy. Therefore, RMG employees should be pleased to contribute to the economy. Several regrettable factors contribute to Bangladeshi RMG factories tension and consequently, poor output. Factors such as a lack of job security, lack of trust, poor working conditions, compensation, other financial incentives, a lack of rewards and recognition, etc., may predict frustration among Bangladeshi RMG workers. The low wages of Bangladeshs RMG workers are strongly associated with their discontent. In the industry, worker discontent is a magnet for violence. Obviously, without a supportive work environment, employee satisfaction on the job does not affect how conflicts are resolved within the organization. This quantitative analysis employs a strategy of random sampling. 384 Bangladeshi employees of the RMG manufacturer Shams Styling Wears Limited in Savar, Dhaka, were surveyed using a structured questionnaire. PLS-SEM was utilized to analyze the data. According to the findings of this study, conflict resolution effectiveness is associated with greater job satisfaction at Shams Styling Wears Limited. Indirectly, the relationship between job satisfaction and conflict resolution was also found to be influenced by the organizational climate. 

INTRODUCTION

Leadership approaches that encourage conflict may delay decision-making (Caesens et al., 2019). It also cultivates organizational hostility (Bilgin et al., 2015). Workers who enjoy their work are less likely to experience job dissatisfaction (Wahyuni & Rahmasari, 2022). According to a study by Coggburn et al. (2017) titled Employee job satisfaction and organizational performance: the effect of conflict management, conflict within an organization is frequently viewed as a disease that must be avoided or treated promptly. The findings indicate that this strategy increases worker satisfaction and output. The management style of ones superior, the nature of ones work, the quality of ones working environment, and ones relationships with coworkers all influence an employees job satisfaction (Kaur & Kang, 2021). When problems at work are resolved, trust, morale, and productivity all increase (Rahman et al., 2023). Organizational culture can bridge the divide between job satisfaction and ethical direction (Gaviria-Rivera & Lopez-Z, 2019). 

Developing countries that export mostly clothes depend on the global garment industry (Jaiswal, Ha-Brookshire, 2020). Most textiles and garments are made in South and Southeast Asia. According to recent research (Gambhir, 2022), many textile enterprises are failing owing to decreased worldwide demand and other difficulties. Labor unrest, non-compliance, poor RMG pricing, dangerous working conditions, and a lack of raw materials in the place of origin are the most common challenges facing this business, according to research (Farhana et al., 2022). Many developing countries struggle to eradicate product faults to fulfill customer expectations. Baidoun et al. (2018) analyze how the clothing business struggles to meet the high expectations of its best customers. Compliance rules make RMG companies more competitive (Talapatra et al., 2019). RMG workers are exploited (Uddin et al., 2023). Arslan (2020) claims that industrial systems abuse employees financially, emotionally, and phy-sically to increase profits. Low pay, child labor, womens rights abuses, lack of trade unions, health and safety problems, and unsafe working conditions intensify worker exploitation (Winter & Lasch, 2016). Workers rights breaches and production disasters in the garment sector have caused worker deaths, injuries, dissatisfaction, and violence (Haque & Azmat, 2015). Thus, labor unrest and non-compliance are this industrys biggest issues (Haque & Azmat, 2015; Winter & Lasch, 2016). The RMG business has helped the Bangladeshi economy, especially in the previous 30 years (Farhana et al., 2022). This sector struggles to sustain quality due to diminishing worldwide con-sumer demand and other issues (Hoque, 2021a). Farhana et al. (2022) found that GDP contribution has dropped 21.17 percent over the previous several years. If the Bangladeshi RMG business is to be socially sustainable, worker unhappiness must be addressed promptly (Farhana et al., 2022). Suppliers may improve production quality by lowering employee unhappiness and absenteeism (Hoque, 2021a). Conflict management solutions in Bangladeshs RMG industry have received little scholarly attention (Hoque, 2021a, 2022; Islam, 2013). Therefore, this study aims to help Bangladeshs textile industry resolve internal conflicts and reinvigorate the sector.

Research Questions 

The following queries are to achieve the objectives of this study:

R.Q.1. In Bangladeshs RMG industry, is there a con-nection between work satisfaction and conflict man-agement?

R.Q.2. Job satisfaction and conflict resolution strate-gies in Bangladeshs RMG industry: Is there a role for the organizational climate?

Objectives of the Study

The objectives of this study are -

1) To investigate how factors like job satisfaction influence conflict management in the RMG sector.

2) To examine the indirect impact of organizational climate on the relationship between employee happiness and conflict management.

Review of Relevant Literature and Hypothesis Formulation

Job Satisfaction

Individuals feelings about superiors, office environ-ment, coworkers, and business future can affect job satisfaction (Kaur & Kang, 2021). Psychological and environmental factors may contribute to job satis-faction (Reig-Botella et al., 2022). Stritesky, (2021) believes employees could experience intrinsic and extrinsic delight at work. A positive work perspective increases employment satisfaction, where-as negative work perspectives decrease it (Yuan et al., 2022). Employment satisfaction is defined by Bilgin et al. (2015) as how an employee feels about their superior, their tasks, the corporate culture, their colleagues, and their employment security. Happiness in the workplace boosts productivity (Petty et al., 1984). Theory Y management methods of McGregor, (1960) are gaining popularity as businesses seek to increase productivity and stand out (Palmisano, 2008). Managers frequently consider the financial benefits of employee satisfaction (Balzer et al., 2009). Money motivates workers. Money is necessary for survival (Maslow, 1943). Ac-cording to Maslow (1943), financial security is one of the "basic needs." According to psychologist Frederick Herzberg, money as a "hygiene variable" (Sachau, 2007) may prevent depression rather than ameliorate its symptoms. According to Alderfer, (1972) monetary requirements, such as compensation, determine satis-faction and motivation. Employees who enjoy their employment are likelier to remain with the company (Kim, 2012). Happiness in the workplace increases productivity. Businesses can save significant amounts of money by minimizing the poor productivity of replacement workers, recruiting and training new employees, health insurance claims, and other expenses. Finally, employee satisfaction surveys can evaluate the effectiveness of managements efforts to enhance productivity and working conditions (Bellou, 2010). Employees who feel like they are part of a problem-solving team are more engaged and satisfied (Noe et al., 2007). De Dreu et al. (2003) state that ineffective conflict resolution can negatively impact employee work satisfaction and productivity. Chan et al. (2008) found in prior research that conflict resolution that prioritizes all parties improves job satisfaction and productivity.

Conflict Management Techniques 

The dispute highlights team differences (Todorova et al., 2022). A conflict management strategy or approach is a method for resolving or minimizing conflict (Rahim, 2011; Sibajene, 2022). Few approaches to conflict resolution are effective (Rahim & Katz, 2019). According to Todorova et al. (2022), yielding is "caving in" to anothers desires, concerns, or will. Team members engage in imposing behavior when they impose their anxieties and perspectives on one another (Todorova et al., 2022). A compromise tech-nique characterizes the creative process. The compro-mise aims to reach a swift, amicable resolution that satisfies both parties (Rahim, 2011). Avoidance disregards the dispute and the concerns of the opposing party (Todorova et al., 2022). Avoidance is a passive and obstinate solution to problems. One controls a dispute by ignoring both parties concerns (Landry & Vandenberghe, 2009). One party pursues its interests at the expense of the other in order to dominate. The integrating style is characterized by strong, cooperative impulses to solve problems and meet the requirements of both parties (Rahim, 2011). Many believe that their environment influences how they resolve conflicts (Roby, 2011; Wilmot & Hocker, 2010). Nonetheless, conflict management practices may affect an emp-loyees social setting, influencing conflict persistence and tension (Chan et al., 2008). According to Rahim, (2011) any dispute resolution method may be effective. Legal disputes are not uniform. This study employed five strategies for conflict resolution: averting, com-promising, dominating, integrating, and accom-modating (Rahim & Bonomo, 1979). For a win-win agreement, integrative bargainers believe that all parties interests must be taken into account. The most successful negotiators emphasized the interests of both parties (Ben-Yoav & Pruitt, 1984a; Pruitt et al., 1983). Despite the abundance of conflict models and practical approaches to conflict resolution, the theoretical app-roach is rarely used (Wilmot Hooker, 1985). The impact of conflict on their identities was profound. After reviewing conflict-management concepts and literature, it would be fascinating to offer Bangladeshs RMG industry effective conflict - management stra-tegies.

Organizational Climate

Attractive workplaces increase employee engagement (Hubert et al., 2022). It boosts morale, loyalty, and productivity (Gaviria-Rivera & López-Zapata (2019). De Boeck et al. (2015) define culture as techno-managerial aspects like the management system and its operation (Luning & Marcelis, 2009) and human variables like the management systems milieu. Moral framing and cultural context affect individual and organizational decision-making (Robertson & Fadil, 1999) but corporate cultures shape ethical conducts (Manning, 2020). James and Jones, (1974) proposed three ways to assess an organizations culture. Zhang and Liu, (2010) found that the human relations movements scholarly shift from harsh psychological environments to milder psychological environments led to the idea of organizational climate. Consequently, varied leadership styles create diverse social climates that affect output (Lewin et al., 1939). Lewin et al. (1939) notion that conduct influences people and their circumstances underpin organizational climate res-earch. Klem and Schlechter, (2008) found that an organizations environment influences development and success. Positive work environments boost job happiness and productivity (Rahman et al., 2023; Griffith, 2006). Organizational climate is how workers see their workplaces official and informal con-ventions, processes, practices, and routines (Ostroff et al., 2012). The phrase "organizational climate" encom-passes both visible features of an organization and the frequently situational, individualistic ideas, feelings, and attitudes of its members (Cameron & Quinn, 2011). Vertical authority structures underpin bureau-cratic administration (Gibbs & Cooper, 2011). Rules and authority reduce confusion and pain, while civility promotes workplace happiness (Porath, 2012). Civility also helps resolve conflicts (Porath, 2012). Due to the sorts of affective events and how workers understand them, a positive emotional environment is linked to good conflict management (Hartel & Ashkanasy, 2011). 

However, if there is excessive discord, the organi-zation may be able to make fast decisions and ex-perience other adverse outcomes. This research aims to gain a deeper understanding of the factors con-tributing to conflict resolution in the workplace, such as employee satisfaction, organizational environment, and the heeding of employee concerns. Given the RMG industrys labor market volatility, this could be a game-changer. This method has been associated with increased workplace productivity and satisfaction. Consequently, we have developed following hypo-theses for this investigation:

H1: There is a relationship between job satisfaction and conflict management strategies. 

H2: There is an impact of organizational climate on this relationship between job satisfaction and conflict management.

MATERIALS AND METHODS

Quantitative methods are best for studying and fore-casting variables (Apuke, 2017). The notion of con-tingency theory employed in this investigation was first introduced by F. E. Fielder in 1964, it was later developed by Garcia in 1987, and many academic institutions have studied it (da Cruz et al., 2011). New studies on conflict resolution use contingency theory due to its applicability (Rashid et al., 2020). 

This quantitative study utilized a simple random sampling technique and survey methodology. Collec-ted data from 384 workers from RMG sector in Bangladesh was analyzed using SPSS and PLS-SEM. Hair et al. (2021) state that PLS-SEM gives variance-based structural equation modeling a graphical inter-face. PLS-SEM also found several variable inter-dependencies with a modest sample size and simple assumptions (Hair et al., 2019; Ratan et al., 2020).

RESULTS AND DISCUSSION

Demographic Statistics

Table 1 displays demographic data about the respon-dents, including their gender distribution, calculated using the statistical package SPSS version 23 and shows that women made up 60.7% of the sample and men 39.3%. Eighty-six percent of those who parti-cipated was under the age of thirty. About 13% of the population was between 31 and 40 years old. There were 1.8% of respondents with a graduate or pro-fessional degree, 1.8% with a bachelors degree, 3.9% with an undergraduate degree, 22.7% with a higher secondary education, 48.4% with a secondary edu-cation, and primary education with 22 %. One percent is with no education at all. Operators accounted for 60.7% of the respondents, with others accounting for 28.6%, the supervisor for 8.6%, the loader for 0.5%, the supply man for 0.5%, and the cutting man for 0.5%. There were 71.6% of respondents with less than five years of experience, 19.5% with 6-10 years, and 8.9% with more than ten years.

In addition to statistical descriptors, Table 2 provides the concept, N (which stands for the total number of respondents), the mean, and the standard deviation. In the course of our investigation, we took into account the following aspects: In this study on conflict man-agement, the CMS serves as the dependent variable. The level of job satisfaction, denoted by JS, is an independent variable, while the climate of the organi-zation, denoted by OC, is a mediating variable. The standard deviation for CMS is 0.674, which results in a mean of 4.497. The average value of OC is 4.556, while the standard deviation of OC is 0.697. The standard deviation for JS is 0.686, while the average score for JS is 4.477. According to Podsakoff et al. (2003) all of the constructs have means that are more than 0.3 and standard deviations that are lower than 2. This places all of the constructs inside the ±2 confidence interval.

Evaluation of the Measurement Model

Measures of reliability and convergent validity

As stated by Hair et al. (2019) all models must be evaluated for convergent validity and reliability. For evaluation of measurement model, the Cronbachs alpha (>0.70, Nunnally, 1994), composite reliability and discriminant validity are examined. In order to ensure convergent validity, as defined by Qureshi et al. (2023), it must consider both item loadings and average variance extracted (AVE). Murtagh and Heck, (2012) determined that values of the reliability coeffi-cients rho_a and rho_c larger than 0.70 were accept-able. According to Ringle et al. (2014), AVEs must be greater than 0.50 in order for convergence to occur. Hair et al. (2009) and Obrien (2007) demonstrated that multicollinearity is required for VIFs less than 5.0. In all three studies (JS, OC, and CMS), values for the outer VIF were less than 5, indicating a negligible effect from multicollinearity. 

Table 3 explains the convergent validity and reliability of the constructs.

Table 3: Constructs reliability and convergent validity.

Discriminant validity

How a concept can be distinguished from others with similar meanings as its discriminant validity. Fornell and Larcker, (1981) provide numerous techniques for determining discriminant validity, such as the HTMT and Cross loadings. As a method for validating discriminants, cross-loading matrices are utilized. The bearing factors of a structure must be greater than those of any contending structures. These results indicate that the construction materials put the final product to the test (Gefen et al., 2011). 

Table 4 displays the discriminant validity of the analytical method using cross loadings. The utmost values for each element in the structures of the table have been specified. The measurement model for this study was evaluated by using PLS-SEM which is presented in the Fig. 1.

Table 4: Cross loadings for evaluating discriminant validity.

Assessment of Structural Model

Coefficient of Determination (R square)

According to a study by Klarner et al. (2013), the determination coefficient is the most crucial statistic for evaluating the integrity of a structural model. The R2 values for conflict management tactics and organi-zational climate are both 0.797, as shown in Table 5. Gaur and Gaur, (2006) state that an R2 value greater than 25% denotes robust empirical prediction.

Table 5: R² result.

As suggested by Cohen, (1988) researchers frequently employ the f square to quantify the relative impact of an exogenous (independent) construct on an endo-genous (dependent) construct. Small effects are repre-sented by values between 0.00 and 0.15, medium effects by values between 0.15 and 0.35, and sub-stantial effects by values above 0.35 (Sarstedt et al., 2019). The f2 data are displayed in Table 6. The impact of employment satisfaction is negligible, with a value of 0.08. Organisational climate influences conflict management strategies by 0.440 (large) and job satisfaction is 3.921 (large).

Predictive Relevance (Q2)

Q2 must be greater than zero for a model to have predictive validity (Hair et al., 2019; Fornell & Cha, 1994). The model acknowledges the data as a statistically significant match because every Q2 value in Table 7 is positive.

Table 7: Cross Validated Redundancy.

Path Coefficient

Using PLS-SEM, conceptual or theoretical model conformance testing is feasible (Hair et al., 2014). Arrows depict the relationships between the numerous constructs (Hair et al., 2014). The primary objectives of path analysis are (1) to accept explanations for the relationship between variables based on a cause-and-effect model and (2) to assess the importance of emotional characteristics for a given feature (Cyprien & Kumar, 2011). If the p value is less than 0.05 and the t value is greater than 1.96, then there is substantial evidence of a relationship or effect, assuming the alpha threshold is 0.05. According to Table 8, organisational climate and conflict management are significantly and positively related (=0.645, t=9.862, p=0.001), as are job satisfaction and conflict management strategies (=0.851, t=31.443, p=0.000) and organisational cli-mate and job satisfaction (=0.893, t=46.615, p=0.000).

Specific Indirect Effect

Table 9 shows that organizational climate mediates the relationship between conflict management strategies and job satisfaction (β=0.575, t=9.813, p=0.000).

Table 8: Results of Path Coefficient.

CONCLUSION AND RECOMMENDATIONS

Based on the results of this study, it can be concluded that the Bangladeshi RMG employees of Shams Styling Wears Limited enjoy their jobs. Therefore, credible sources have not contested it recently. From this study, decision-makers and managers may gain knowledge. The managerial implications imply that trust between management and employees are neces-sary for problem-solving. 

Owners and administrators of RMG industrial com-panies may find that emphasizing the organizational environment and job satisfaction aids in problem-solving and morale-building. This indicates that managers must consider the factors that affect emp-loyee satisfaction. Positive workplaces improve emp-loyees health, well-being, productivity, and loyalty. The RMG will expand if working conditions are favor-able and conflict-free. The satisfaction of employees should be the top managerial priority because happi-ness at work leads to increased output. Previous studies (Hoque et al., 2020; Hasan, 2018; Khan et al., 2018) have demonstrated a positive correlation bet-ween work satisfaction and conflict management strategies, and our findings support this. Again, the findings of this study also support the previous studies by (Adeyemi & Aigbavboa, 2022; Nordin et al., 2014; Prasetyo et al., 2021) that the organizational climate indirectly affects the relationship between job satis-faction and conflict management. The survey includes 384 of more than 4 million RMG workers (Bangladesh Bureau of Statistics, 2020). Non-RMG personnel were often excluded. This paper proposes adding latent factors, including work satisfaction and organizational climate, to a conflict management theoretical model. 

Internal or external elements not in the model may be investigated. CB-SEM can forecast the model, measure its effect size, and determine its predictive value as confirmatory factor analysis. Further research may target multifarious industries in different cultural settings.

Novelty of the Study

This study focuses on organizational climate as a mediator because no previous research has specifically addressed conflict management techniques in Bangla-deshs RMG industry. There are JS, CMS, and OC as constructs. Fig. 1 and 2 provide a summary of the results and an analysis of the methodologies, demon-strating the originality of this study. The coefficient of determination (R2) demonstrated the fits authenticity and the studys originality. Table 8 and 9 demonstrate that the research supported the hypotheses.

Contribution

The studys objective was to advance our under-standing of conflict management and the RMG indus-trys managerial effects by developing several contri-butions. The most significant contribution was drawing attention to job satisfactions influence on resolving industrial disputes in the RMG industry. The organi-zational climate also significantly indirectly affected the relationship between job satisfaction and conflict resolution. The current study is one of the few research initiatives focusing on conflict resolution in the RMG sector of Bangladesh.

ACKNOWLEDGMENT

The authors appreciate the assistance of Standard Group, Bangladesh, with data collection. Special app-reciation is extended to Shams Styling Wears Limited employees in Savar, Dhaka, Bangladesh, for their participation in conducting this investigation with great precision. The authors graciously thank Professor Dr. Abdul Awal Khan for his continuous encouragement and kind support throughout the study.

CONFLICTS OF INTEREST

The authors have declared that there is no conflict of interest in this study.

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Article Info:

Academic Editor

Dr. Doaa Wafik Nada, Associate Professor, School of Business and Economics, Badr University in Cairo (BUC), Cairo, Egypt.

Received

May 3, 2023

Accepted

July 10, 2023

Published

July 20, 2023

Article DOI: 10.34104/ijma.023.0053065

Corresponding author

Mohammad Masudur Rahman*

Ph.D. Candidate, Putra Business School, Graduate School of Management, University Putra Malaysia, Selangor, Malaysia and Associate Professor, Dept. of Business Administration, International Standard University, Dhaka, Bangladesh.

Cite this article

Rahman MM, Rose RC, Som HM, and Newaz HTMQ. (2023). Assessing job satisfaction in the Bangladeshi readymade garment industry: a study of Shams styling wears limited using PLS-SEM modeling, Int. J. Manag. Account5(4), 53-65. https://doi.org/10.34104/ijma.023.0053065

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