Paper TitleMEDIATING EFFECT OF WORKPLACE HAPPINESS ON THE RELATIONSHIP BETWEEN PERCEIVED HRM PRACTICES AND RETENTION AMONG CAREER WOMEN

Full name of authors:1. Junaidah Hashim2. Saodah Wok

Organisation affiliation/position(s)1. Professor Datin Dr Junaidah Hashim

International Islamic University Malaysia

2. Professor Dr. Saodah WokInternational Islamic University Malaysia

Address1. Department of Business Administration,

Kulliyyah of Economics & Management Sciences,International Islamic University Malaysia,Jalan Gombak,53100 Kuala Lumpur.

2. Department of Communication,Kulliyyah of Islamic Revealed Knowledge & Human Sciences,International Islamic University Malaysia,Jalan Gombak,53100 Kuala Lumpur.

Email address1. junaidahh@iium.edu.my 2. wsaodah@iium.edu.my

StreamNo. 2) Career management and development

Submission typeRefereed papers

MEDIATING EFFECT OF WORKPLACE HAPPINESS ON THE RELATIONSHIP BETWEEN PERCEIVED HRM PRACTICES AND RETENTION AMONG CAREER

WOMEN

Structured Abstract (244 words)

Purpose: This study was conducted to find the extent to which HRM practices contributed

towards workplace happiness of working women, which ultimately influences their retention

at workplace.

Design/methodology/approach: This study employed quantitative research design using

survey method. The sample of this study was confined to married/divorced career women in

Kuala Lumpur, Malaysia. The questions regarding perceived HRM practices were adapted

from Huselid (1995), workplace happiness from Albano (2009), and employees’ retention

from Maha and Al-Falasi (1997). All these measures were reliable with Cronbach alpha

values greater than 0.70.

Findings: Perceived HRM practices have strong relationship with career women retention.

Workplace happiness partially mediated the relationship between HRM practices and career

women retention, which was also moderated by family support. The family size (number of

young children) failed to moderate this relationship.

Research limitations: This study focused only on married working women which limits the

generalisation of findings to all working women. This study also did not include single

working women.

Practical implications: Workplace happiness is an important outcome of HRM practices

which does influence employees’ retention. This, to some extent, has been obscured by the

heavy emphasis that has traditionally been placed within the HRM literature on managerially

oriented performance outcomes.

Originality: Most of previous studies on workplace happiness primarily focused on Western

work context and not on Asian. Asia provides a very good context because of its multi-racial,

multi-religions, and multi-cultural background. Workplace happiness, thus, may be

interpreted differently with such diverse backgrounds.

Keywords: HRM practices, workplace happiness, retention, working women.

1.0 Introduction

Women form important contributors to a country’s economic and social development.

In Malaysia, as many as 2.3 million Malaysian women are ‘absent’ from the labour market,

leaving the country’s talent pool performing below optimum. One reason for such a situation

could be their difficulty in maintaining a balance between their employment and family

obligations (TalentCorp and ACCA, 2012). For example, married Malaysian women are less

likely to work, especially if they have children that require childcare. The same reason

accounts for many to quit their jobs. Although employee resignation is generally associated

with on-the-job factors such as job dissatisfaction, unjust treatment, employees’ unhappiness

with the job itself, and co-workers or/and supervisors, for female employees there are other

additional factors too.

Many local employers blame the lack of available talent as a key hurdle in realising

companies’ growth. But employers, on the other hand, have not done enough actually, to help

women participate in the workforce. Retaining employees regardless of their gender has

always been perceived as a Human Resource Management (HRM) related matter. There is

evidence to suggest that managerial practices have an impact on employees’ emotions and

performance (Carson, 2005; Legge, 1995; Storey, 1995). The key then appears to lie in

nurturing such a workplace environment in which individuals do not need to worry about

their child’s care, while at the same feeling happy and satisfied. Thus, this study was

conducted to know the extent to which HRM practices can contribute to workplace happiness

of working women which consequently influences their retention at jobs.

Although several studies have examined the issue of retaining women, they seemed to

focus mainly on why women leave their jobs (Aminah, 2007; TalentCorp and ACCA, 2012;

UNDP, 2012) and are generally descriptive. Not much has been done on predicting women’s

turnover with respect to HRM practices. Hence, the present study not only examines the

influence of HRM on women retention in an organisation but also extends the existing

knowledge by examining the mediating role of workplace happiness, while at the same time

incorporating family support and family size as moderating variables.

In this specific and important area, this study can be an important reference for future

study. By discovering evidence of how HRM practices make people feel happy may help HR

managers better understand how to create positive and supportive workplace environment. In

fact, this has always been of interest to many HR practitioners. Moreover the findings will

also provide valuable insights to the policy makers, including government, to relook into the

policies affecting working women employment.

2.0 Theoretical Framework

Social Exchange Theory (SET) is among the most influential conceptual paradigms

for understanding workplace behaviour (Cropanzano and Mitchell, 2005). Interactions

between workers and their organisations are reciprocal relationships. SET predicts that the

extent to which these interactions are perceived as reciprocal influences the strength of these

relationships. These interactions are usually seen as interdependent and contingent on the

actions of others (Blau, 1964). This reciprocal relationship is integral to organisational HRM

practices since it involves the exchange of work-related behaviours for rewards that satisfy

the employee's needs. The organisation acts first to provide employees with something of

social value such as work-related happiness. The employees, perceiving that the organisation

has worked towards their benefit, feel indebted to reciprocate with something of equal or

greater value, such as being loyal.

Motivational theory also finds relevance in this study. Herzberg (1959) in his two-

factor theory argued that employees are motivated by internal values rather than those values

that are external to their work. In other words, motivation is internally generated and is

propelled by variables that are intrinsic to the work itself, which Herzberg termed

“motivators”. These intrinsic variables include achievement, recognition, the work itself,

responsibility, advancement, and growth. Conversely, certain factors cause dissatisfaction to

employees and are largely related to non-job related variables (extrinsic). Herzberg coined

the term “hygiene factors” for such factors which, although do not motivate employees, must

be present at the workplace to make employees happy. These factors are company policies,

salary, co-worker relationships, and supervisory styles (Bassett-Jones and Lloyd, 2005, p.

929). However, empirical studies (Kinnear and Sutherland, 2001; Maertz and Griffeth, 2004;

Meudell and Rodham, 1998;) have revealed that extrinsic factors such as competitive salary,

good interpersonal relationships, friendly working environment, and job security are cited by

employees as the key motivational variables that influence their retention in the

organisations. This implies that management should not rely only on intrinsic variables to

influence employee retention; rather, a combination of both intrinsic and extrinsic variables

should be considered as an effective retention strategy. It is also obvious here that the

elements in two-factor theory are related to HRM practices.

It is also well-established that women’s employability is hampered especially if they

have young children to look after. But for most parents, low income parents specifically,

work or a job is essential to meet the basic needs of their family. In such a situation,

employers that implement family-friendly policies are thought to attract and retain a higher

percentage of employees than those that have not.

In the present context HRM is defined as a set of practices used to manage an

organisational workforce through practices such as staffing, training and development,

performance appraisal, compensation, and employee relations (Beer et al., 1984; Guest, 1989;

Walton, 1985). HRM practices can have different consequences depending on employees’

predispositions. Although employees are largely affected by performance appraisal and

compensation, these are not to undermine the importance of other HRM practices that too

exert their influence on employees.

Not many studies are found in the literature in terms of HRM effect on feelings or

happiness of employees. Most of the limited past studies examined the relationship between

HRM practices and job attitudes such as job satisfaction and commitment (Marescaux et al.,

2013). In the same vein, it should be noted that job satisfaction and workplace happiness are

not synonymous, while workplace happiness can produce job satisfaction. Ford et al. (2003,

p. 23) argued that fun and happiness at workplace go beyond job satisfaction to involve

activities that convey a sense of “pleasantness, happiness, and positive well-being that makes

working not only satisfying but also fun”. In this regard, Baptiste (2008) and Cannibano

(2013) found that innovative HRM practices can lead to both positive and negative well-

being outcomes for the employee. Other studies showed that certain HRM practices, such as

working in teams, greater discretion and autonomy at the workplace, and various employee

involvement and pay schemes do motivate workers and hence generate higher productivity

(Boselie and Van derWiele, 2002; Cully et al., 1999). Similarly, Atkinson and Hall (2011)

studied one HRM practice, flexible working, and found employees’ perception that flexible

working makes them ‘happy’. There were also found attitudinal/behavioural links among the

happiness, discretionary behaviour, and performance outcomes.

Workplace happiness has also been studied on its direct effect on organisational

outcomes (Connolly and Viswesvaran, 2000; Grossman, 2000). It is also reported to have

positive effects on a company’s performance (Alexandre et al., 2011; Pryce-Jones and

Lutterbie, 2010) on measures such as increased productivity and higher employee satisfaction

(Connolly and Viswesvaran, 2000; Karl and Peluchette, 2006), organisational citizenship

behaviour (Fluegge, 2008), and reduced employee turnover (Thoresen et al., 2003). Hence it

is hypothesized here that workplace happiness has a mediating effect in the relationship

between perceived HRM practices and employee retention. Simply, employees who

experience happiness at work tend to stay.

Then, workplace happiness, its antecedents, and its consequences may be influenced

by a host of individual factors such as age, gender, and more. The moderating variables tested

in this study are family support and the number of young children. Family support refers to

the extent family members such as spouse, children, and extended family members support

the career women to continue working. In this context, it was found in a study in Britain, the

United Stated, and Japan that married women’s employment is strongly influenced by their

young children. For this reason, the employment rate of married women with infants

(children under one year of age) is about 40 percentage points lower than that of married

women with no children. Hence, based on the literature reviewed the following hypotheses

were formulated:

H1: HRM practices correlate with career women retention.

H2: HRM practices correlate with workplace happiness.

H3: HRM practices influence workplace happiness which in turn influences career women

retention.

H4: There is a moderating effect of family support on the relationship between HRM

practices, workplace happiness, and career women retention.

H5: There is moderating effect of family size on the relationship between HRM practices,

workplace happiness, and career women retention.

HRM Practices

Figure 1: Theoretical framework

3.0 Methodology

This study employed quantitative research design using survey method. The sample of

this study was confined to married/divorced career women in Kuala Lumpur, Malaysia. The

context here is crucial because the cost of childcare and the problems associated with career

women in Kuala Lumpur are different from other places in Malaysia.

The population of Kuala Lumpur is more than 100,000. In order to achieve 95%

confidence level the sample had to be 1,200. Stratified random sampling was employed.

Enumerators were sent to pre-identified industries from public, private, and government-link

organisations. This ensured no overlapping among the enumerators. The HR department of

each organisation helped in identifying the respondents for this study.

The questions regarding perceived HRM practices were adapted from Huselid (1995),

workplace happiness from Albano (2009), and employees’ retention from Maha and Al-

Falasi (2014). All these measures were reliable with Cronbach alpha values greater than 0.70.

Staffing Performance

management Compensation Training Employee

relation

Workplace happiness Retention

Family Support Family size

4.0 Findings of the Study

4.1 Demographic Characteristics of the Respondents

The respondents of the study are described in terms of age, marital status, years of

marriage, ethnicity, family size composition, level of education, and family support (Table 1).

The respondents are considered young with mean age of 37.7 years (SD=16.5). Almost three-

quarters of the respondents (74.8%) were below 40 years old; the rest (25.2%) were older.

Most of the respondents were married (91.8%) while the remaining were single parent

(8.2%). Only 439 respondents indicated their years of marriage. More than one-third of them

(36.2%) have been married for 1-5 years. Almost 28% have been married between 6-10

years. The rest constituted lesser percentages with increase in number of years of marriage.

Majority of the respondents (91.2%) were Malays, while small proportions were

Chinese (3.9%), Indians (3.4%), and other races (1.6%). Family size composition included

spouse, siblings, parents, and children both above and below 6 years. Surprisingly, even

though most of the respondents were married, they did not stay with their spouses – only half

(51.8%) of the respondents had their spouses staying with them. Many of them (14.4%) had

siblings, parents (26.1%), children above 6 years (42.0%) and children below 6 years

(36.4%).

With respect to education, 40.4% held a basic degree. Some of them (12.1%) went up

to their master’s degree and only few (4.1%) to a PhD degree. In terms of tiers of education,

77.5% had tertiary education, while the rest (22.5%) managed to attend only up to secondary

level.

The respondents did receive family support, especially from their parents (50.5%),

helpers (16.9%), and other relatives (10.3%). There were others too, willing to give family

support to them (20.0%). To summarise, the respondents are young, married, Malay, with

varied family size compositions, highly educated, and receiving help from various parties

mainly parents.

4.2 Work-related Characteristics of the Respondents

Table 2 presents the work-related characteristics of the respondents: position, tenure

length with the organisation, income, number of times employer is changed, and number of

times promoted at the job. Results show that almost half of the respondents (48.7%) belonged

to the support staff, though many were also working as executive officers (35.1%) and some

at managerial level (16.2%). Many of them (35.8%) have been working within the past 5

years, while a significant number (30.2%) has been working since 6-10 years. The

descending trend in percentage continues as the number of years at work increases.

In terms of household monthly income, more than half of the respondents (54.1%)

were earning between RM2001-RM5000. Slightly more than one-third of the respondents

received an income of RM5001 and above. Again, these percentages decrease as the income

increases. Almost half of the respondents (48.2%) never changed their employer at all. Many

of them have changed one employer (14.8%), two employers (18.8%), and three employers

(10.6%), but very few changed 4 employers and more. In addition, the study also asked the

number of times the respondents have been promoted. Results show that more than half of the

respondents have never been promoted (55.3%). This proportion decreases as the number of

promotions increases.

4.3 Organisation Characteristics

The study also explored the characteristics of those organisations with which the

respondents worked (Table 3). These characteristics include type of sector, organisation size,

type of industry, and childcare facilities and services rendered to the career women. More

than one-third of the respondents worked in government sector (37.1%), a similar proportion

in government-link companies (36.8%), while 26.2% worked in the private sector. Most of

the organisations that they worked for (82.1%) are large companies having 100 and more

employees. The top three industries that the respondents are employed in are education

(26.3%), finance/banking/accounting (19.0%), and for the government (15.3%). Other

industries were sparsely preferred by women in this study. About half of the employers

provided childcare facilities and services for female employees’ children. This was claimed

by 597 respondents (49.8%) with the following breakdown: nursery (21.4%), childcare

facilities (19.9%), and kindergarten (8.4%). It can be said, in conclusion, that the career

women in this study were working in various sectors mainly in government and government-

linked organisations, were employed in large organisations, involved in the education,

finance/ banking/accounting industry, and that their organisations provided childcare

facilities and services for their children.

4.4 Human Resource Practices: Staffing

The staffing items in the human resource practices were found to be reliable

(α=0.818). There was a general agreement of the respondents with all the items (71.7%) with

mean range 3.245-3.953 (Table 4). The item ‘I was formally interviewed by a manager before

being hired for my current job’ was agreed with the highest (79.1%), while the lowest

agreement (64.9%) was with the item ‘I took formal written tests before being hired’. Further,

more than three-quarters of the respondents agreed to the statement ‘I got the job in the

company because I am the right person’ (77.4%) and ‘I was interviewed by more than one

person before being hired at my company’ (77.6%). Others with less than 70% were for items

‘I have been involved in interviewing candidates before they are hired in my company’

(65.6%); ‘I went through a very lengthy interview process’ (67.0%); and ‘It does not take

very long to hire someone at my company’ (67.4%). This implies that the respondents were

hired for their capabilities and that they had undergone formal interviews by many officials of

the organisation.

4.5 Human Resource Practices: Training and Development

Training and development aspect of the human resource practices were also found

reliable (α=0.910). Table 5 shows that 73.4% of the respondents agreed with the overall items

for training and development. The means are close to one another, ranging between 3.611-

3.719. The item with highest agreement (74.4%) was ‘I am given an opportunity to improve

my skills at this company through education and training programs’, while the lowest

agreement (72.2%) was with ‘I have the opportunity to be promoted to positions of greater

pay within my company’. This implies that all the items for training and development are

being practiced by their respective organisations.

4.6 Human Resource Practices: Performance Management

The overall performance management dimension of the HRM practices was reliable

(α=0.912), the overall level of agreement with it was 72.2%, and mean ranged from 3.467–

3.715 (Table 6). The item rated highest by the respondents was ‘I received formal evaluation

of my performance annually’ (74.3%), followed by ‘I often agree with my manager on my

performance evaluation’ (73.5%), and ‘I received helpful evaluation and feedback to my

professional development’ (73.2%). The lowest rating was 69.3% received in response to ‘I

have frequent discussions with my manager about my performance’. It shows that the

respondents positively agreed with all the items on human resource practices that involved

performance management of their work.

4.7 Human Resource Practices: Compensation

Compensation items were found to be reliable (α=0.912). The overall level of

agreement with questions related to compensation was 71.0% which is considered positive

(Table 7). All the items received a score 70% and above except for ‘at my company,

employees usually get their raises when they expect to get them’ that was rated just below the

others (69.6%). The question ranked highest was ‘at my company, raises and promotions are

tied to performance’ (72.3%). Such practice is imperative to motivate workers, especially

women.

4.8 Human Resource Practices: Employee Relations

Employee relation is an important human resource practices dimension that needs

attention. Just as above, the items for employee relations were also found to be reliable

(α=0.899). Table 8 presents respondents’ perception in response to the seven items measured

under this dimension. Overall, the employee relations were rated positively (70.3%). The

highest ranking item was ‘in my job, I am provided the opportunity to suggest improvements

in the way things are done” (72.5%), followed by ‘my manager keeps open communication

with me in my job’ (72.3%). The lowest ranked item was ‘I am asked to participate in

decisions regarding the selection of new employees’ at 66.9%. This implies that women are

not likely to be involved in decision making process. This inference gets support by low

rating on a similar item ‘I am asked to participate in decisions regarding the training of new

employees’ that received 67.2% favour. Other items were acceptable and positively

perceived, with mean ranging from 3.344-3.623. Generally, it can be said that female

employee relations were being practiced.

4.9 Workplace Happiness

Workplace happiness items were found to be reliable too (α=0.915). The overall level

of agreement with workplace happiness was 75% and is considered to have received positive

evaluation (Table 9). All the items were rated 70% and above. ‘I understand how this

organisation works” was rated the highest (76.9%), followed by ‘I am always learning new

things at work’ (76.4%), and ‘my work means a lot to me (76.3%). The items rated the lowest

were ‘I’m not worried about the security of my job’ and ‘my boss helps me get ahead’ with

73.5%. In general, the respondents seemed happy at their workplace.

4.10 Retention

Table 10 shows that overall the items in ‘retention’ dimension were reliable

(α=0.945). In general, the respondents agreed to all the items consistently with mean ranging

between 3.592-3.838. The question receiving most favourable response was ‘I am very

committed to my job’ (76.8%), followed by ‘my organisation deserves my loyalty’ (75.2%).

This is seconded by a high overall percentage score (73.8%) in retention meaning that the

respondents are willing to stay with the present organisation because the organisation is

believed to be a part of them. Their loyalty and commitment together with a sense of

belongingness are assets to the organisation they work for.

4.11 Testing the Hypothesis

H1: HRM practices correlate with career women retention.

All the HRM practices significantly correlated with career women retention.

Generally these relationships were moderately positive: training (r = 0.442, p = 0.000);

performance management (r = 0.443, p = 0.000); compensation (r = 0.511, p = 0.000); and

employee relations (r = 0.457, p = 0.000), except for staffing (r = 0.340, p=0.000) which

showed a weak relationship. Hence, all the variables under HRM practices are fit to be tested

for the mediating and moderating effects with career women retention. In addition, among all

the HRM practices, compensation was found to be the strongest predictor (β = 0.274, t =

7.293, p = 0.000), followed by employee relations (β = 0.151, t = 4.399, p = 0.000), and

training and development (β = 0.137, t = 3.795, p = 0.000).

Therefore, career women retention can be predicted by compensation, employee

relations, and training and development (Table 11 and Table 11.1). All the human resource

practices were able to explain for 30.2% towards career women retention. This holds that an

organisation should take into consideration the issues of compensation, employee relations,

and training and development in order to keep women employees loyal to it. Therefore,

hypothesis (H1) is supported.

H2: HRM practices correlate with workplace happiness.

Workplace happiness is an employee’s personal interpretation and response to the

work where she finds the workplace context meaningful to her life. Workplace happiness was

moderately positively associated with staffing (r = 0.411, p = 0.000), training and

development (r = 0.594, p = 0.000), performance and management (r = 0.582, p = 0.000),

compensation (r = 0.590, p = 0.000), and employee relations (r = 0.560, p = 0.000); though

all these relationships were significant (Table 12). The best predictor for workplace happiness

was training and development (β = 0.272, t = 8.639, p = 0.000). All the HRM practices

dimensions were able to explain for 46.7% of workplace happiness (Table 12.1). However,

staffing does not appear to be a predictor for workplace happiness. This makes the equation

for workplace happiness seem like:

1.150 + 0.266 training and development + 0.142 performance and management +

0.168 compensation + 0.150 employee relations.

Therefore, in order for women to perform and be productive to the organisation workplace

happiness must be seriously considered.

H3: HRM practices influence workplace happiness which in turn influences career

women retention.

To test the mediating effects of workplace happiness partial correlation analysis was

carried out with workplace happiness as the controlling factor. Results in Table 13 show that

the relationships of HRM practices dimensions and workplace happiness with career women

retention were found to be significant. These were the preliminary requirements for

mediating effect, which were met here. With workplace happiness as a mediating variable all

the relationships between HRM practices dimensions and career women retention were

reduced, though still being significant. This means that workplace happiness is only partially

mediating the relationship between HRM practices and career women retention. Therefore,

hypothesis H3 is partially supported.

H4: There is a moderating effect of family support on the relationship between HRM

practices, workplace happiness, and career women retention

Results (Table 14) show that only two of the HRM practices contributed in explaining

career women retention. They are compensation (F = 29.473, p = 0.000) and human relations

(F = 7.084, p = 0.008). These variables were able to explain for 2.4% and 0.6%, of the

variance respectively. However, the overall model was able to explain 38.4% of the career

women retention variance. In addition, workplace happiness (F = 148.537, p = 0.000) was

able to explain 11.1% of career women retention. Similarly, family support (F = 6.881, p =

0.006) was able to moderate the relationships of compensation, human relations, and

workplace happiness with career women retention, where those with or without family

support were able to retain their career (t = 1.988, p = 0.047). This means that those women

without family support would retain their career more than those with family support (Table

14.1). A reason for this is since they have to work to maintain their family so they have to

send their children to the baby sitters or other childcare facilities. Some did receive these

facilities by their employers.

H5: There is moderating effect of family size on the relationship between HRM practices,

workplace happiness, and career women retention.

Among the HRM practices only compensation (F = 30.247, p= 0.000) and human

relations (F = 5.353, p = 0.021) were able to explain career women retention (Table 15),

while the overall model was able to explain 38.3% of the variance. However, the same

dimensions were able to explain only a minimal variation of 0.025% and 0.004%,

respectively. Workplace happiness, on the other hand, was a major contributor to career

women retention (F = 153.385, p = 0.000) since it was able to explain 11.4% of the

dependent variable. The relationship between workplace happiness and career women

retention was rather weak (r = 0.338, p = 0.000) though significant. Since family size was

measured here as having children below 6 years of age (No = 0; Yes = 1), it was not able to

moderate the relationships between HRM practices and workplace happiness with career

women retention. This is despite the fact that there were significant differences (Table 15.1)

between the means of those who do not have children below 6 years (M = 3.730, SD = 0.693)

and those with children above 6 years of age (M = 3.622, SD = 0.642). This means that career

women retention is not affected if they have children below age 6 (t = 2.653, p = 0.000).

Probably it is not the younger children that demand their attention because at that tender age

they need their mothers to be around, to care for them and to give them full attention. Instead,

they should be staying at home, taking care of their children. But when they grow up, so do

their associated expenses; hence it is not only that they can work, but rather they need to

work.

5.0 Discussion and Conclusion

The main findings of the study supported all the hypotheses except one. Perceived

HRM practices have strong relationship with career women retention. Workplace happiness

partially mediated the relationship between HRM practices and career women retention,

which was also moderated by family support. Working women without family support tended

to stay in their employment. The family size (number of young children) failed to moderate

this relationship.

Practically, there are a number of reasons why systematically looking at the impact of

HRM practices on workplace happiness is important. One being that workplace happiness is

an important outcome on its own. This, to some extent, has been obscured by the heavy

emphasis that has traditionally been placed within the HRM literature on managerially

oriented performance outcomes. Workplace happiness is an important outcome of HRM

practices which does influence employees’ retention. HR managers should look into the

wellbeing of their employees because by being happy they can excel beyond the

knowledgeable and skilled employees. Skilled employees when feeling disheartened or

unhappy will look for better employers and environment if these feelings continue and are not

taken care of. On the contrary, happy employees will perform better and remain loyal to the

organisation despite getting better offers elsewhere. Employees get a feeling of being

treasured by the organisation if their wellbeing is taken care of. This in turn will make the

employees feel indebted to the organisations and willingly work beyond their personal goals.

Therefore, HR managers should broaden their functions beyond recruitment,

selection, training, and compensation. Workplace happiness can be introduced as a new

dimension for HR managers to focus on. Workforce composition and employee preferences

are changing; given mounting demographic pressures, HR managers must do more than

merely ensuring cost-effective execution of HR processes.

Theoretically, this study builds on existing work within HRM and provides a

framework for establishing the linkage between HRM practices and workplace happiness

among women in a diverse workforce, which suggests enhanced employees retention.

Furthermore, most of previous studies on workplace happiness primarily focused on Western

work context and not on Asian. Asia provides a very good context because of its multi-racial,

multi-religions, and multi-cultural background. Workplace happiness, thus, may be

interpreted differently with such diverse backgrounds.

On the limitations side, this study focused only on married working women which

limits the generalisation of findings to all working women. This study also did not include

single working women. Future studies can look into this limitation to carry out a more

comprehensive study which may include single women as well as men. This is to provide

more empirical evidences to make HRM practices more relevant to today’s workforce and

organisational policies.

Table 1: Demographic Characteristics of the RespondentsDemographic Characteristics Category Frequency Percentage

Age (years) 20-25 101 8.426-30 271 22.631-35 283 23.636-40 230 19.241-45 144 12.046-50 87 7.351-60 84 7.0

M=37.7, SD=16.5 Total 1200 100.0Marital status Married 1102 91.8

Single parent 98 8.2Total 1200 100.0

Years of marriage (N=439)1 year – 5 years 159 36.26 years – 10 years 123 28.011 years – 15 years 62 14.116 years – 20 years 40 9.121 years – 25 years 38 8.726 years – 30 years 13 3.031 years and above 4 0.9

Total 439 100.0Ethnicity Malay 1094 91.2

China 47 3.9India 41 3.4Others 18 1.6

Total 1200 100.0Family size (N=1200)

Spouse 622 51.8Siblings 173 14.4Parents 313 26.1Children (more than 6 years old) 503 42.0Children (less than 6 years old) 437 36.4

Total * *Level of education UPSR 6 0.5

PMR 6 0.5SPM/SPVM 184 15.3STPM/Cert 74 6.2Diploma 251 20.9Master 145 12.1Degree 485 40.4PhD 49 4.1

Total 1200 100Family support Helper 202 16.9

Parents 606 50.5Relatives 124 10.3Others 240 20.0

Total * *

Table 2: Work-related Characteristics of the Respondents

Characteristics Category Frequency PercentagePosition Managerial 194 16.2

Executive 421 35.1Support Staff 584 48.7

Total 1199 100Duration of working in the organization 5 years and less 430 35.8

6 -10 years 362 30.26 -10 years 167 13.916-20 years 117 9.821-25 years 44 3.726-30 years 43 3.630 years and above 37 3.1

Total 1200 100Household monthly income RM1000 and less 60 5.0

RM1001– RM2000 82 6.8RM2001– RM3000 205 17.1RM3001– RM4000 210 17.5RM4001– RM5000 234 19.5RM5001 and above 408 34.0

Total 1199 100Number of times changed employer(s) 0 578 48.2

1 177 14.82 225 18.83 127 10.64 and more 93 7.8

M=1.226, SD=1.581, Min=0, Max=15 Total 1200 100.0Number of times have been promoted 0 664 55.3

1 241 20.12 170 14.23 72 6.04 26 2.25 and more 27 2.3

M=0.895, SD=1.360, Min=0, Max=11 Total 1200 100.0

Table 3: Organisation Characteristics

Characteristics Category Frequency PercentageType of sector Government 445 37.1

Private 314 26.2Government –linked company 441 36.8

Total 1200 100Size of organization (employees) Small (1-10) 107 8.9

Medium (11-100) 108 9.0Large (100 and more) 985 82.1

Total 1200 100Type of industry Education 315 26.3

Finance/Banking/Accounting 228 19.0Government 184 15.3Utilities/Oil & Gas/Electricity/Water

90 7.5

Medical/Health Services 67 5.6Manufacturing 65 5.4Consumer products/Retail/wholesale

52 4.3

Information Communication Technology (ICT)

50 4.2

Insurance 29 2.4Consulting 27 2.3Engineering/Architecture 24 2.0Legal 12 1.0Industrial Technology 11 0.9Real Estate 9 0.8Training 8 0.7Travel/Hotel/Hospitality 7 0.6Contractors/Construction 6 0.5Entertainment 5 0.4Biotechnology/Biomedical 4 0.3Food & Beverages 4 0.3Advertising 1 0.1Transportation 1 0.1Laundry service 1 0.1Military 0 0

Total 1200 100The types of facilities and services rendered.

Nursery 257 21.4

Childcare allowance 239 19.9Kindergarten 101 8.4

Total (N=1200) 597 49.8

Table 4: Level of Agreement on Staffing

A. Staffing Level of Agreement* (%) M SD %1 2 3 4 5

1. I was formally interviewed by a manager before being hired for my current job.

2.3 3.7 20.6 43.6 29.9 3.953 0.923 79.1

2. I have been involved in interviewing candidates before they are hired in my company.

12.9 10.1 27.3 35.3 14.4 3.282 1.212 65.6

3. I got the job in the company because I am the right person.

1.2 2.3 26.1 49.3 21.2 3.869 0.809 77.4

4. I was interviewed by more than one person before being hired at my company.

2.3 4.8 23.0 42.0 27.8 3.882 0.948 77.6

5. I went through a very lengthy interview process.

3.1 8.7 36.3 39.3 12.8 3.499 0.930 67.0

6. At my company, I was being screened for problem solving skills.

2.3 6.9 33.3 42.8 14.6 3.604 0.900 72.1

7. I have undergone a structured interview before being hired.

3.6 8.3 32.4 41.8 13.9 3.541 0.953 70.8

8. I took formal written tests before being hired.

9.8 12.9 32.6 32.6 12.2 3.245 1.128 64.9

9. It does not take very long to hire someone at my company.

4.0 11.2 38.9 35.6 10.3 3.371 0.951 67.4

Overall staffing (α=.818) 3.583 0.625 71.7*1-strongly disagree (1-20%), 2-disagree (21-40%), 3-neutral (41-60%), 4-agree (61-80%), 5-strongly agree (80-100%)

Table 5: Level of Agreement on Training and Development

C. Training & Development Level of Agreement*(%) M SD %1 2 3 4 5

1. I have the opportunity to be promoted to positions of greater pay within my company.

2.2 6.2 34.3 43.1 14.3 3.611 0.881 72.2

2. I have clear paths for moving up in the company.

1.5 4.7 35.2 46.7 12.0 3.630 0.811 72.6

3. My career aspirations are considered by my immediate supervisors.

1.2 4.8 36.8 45.3 11.9 3.620 0.801 72.4

4. In the positions that I have held with my company, I have often been given additional challenging assignments.

1.1 4.9 31.4 49.3 13.3 3.688 0.802 73.8

5. In the positions that I have held with my company, I have often been assigned projects that enabled me to develop and strengthen new skills.

1.3 4.2 32.1 48.9 13.6 3.694 0.802 73.9

6. I am given an opportunity to improve my skills at this company through education and training programs.

0.8 3.7 32.2 49.4 13.9 3.719 0.777 74.4

7. I am satisfied with the number of training and development programs available to me at my company.

1.3 6.0 33.8 46.3 12.5 3.627 0.827 72.5

8. I am satisfied with the quality of training and development programs available to me at my company.

1.3 6.3 32.8 46.6 13.2 3.642 0.833 72.8

9. I have received training and educational activities at my company

1.3 4.5 31.5 48.3 14.4 3.702 0.814 74.0

that have enabled me to perform my job more effectively.

10. I learned how to do my job simply by doing it.

0.8 4.3 27.3 52.8 14.9 3.768 0.779 75.4

Overall training and development (α=.910)

3.670 0.605 73.4

*1-strongly disagree (1-20%), 2-disagree (21-40%), 3-neutral (41-60%), 4-agree (61-80%), 5-strongly agree (80-100%)

Table 6: Level of Agreement on Performance Management

E. Performance Management Level of Agreement*(%) M SD %1 2 3 4 5

1. I received formal evaluation of my performance annually.

2.3 5.1 30.5 43.3 18.9 3.715 0.905 74.3

2. I received helpful evaluation and feedback to my professional development.

1.4 5.2 32.6 47.6 13.3 3.661 0.823 73.2

3. If I do my job well, I am likely to be promoted.

1.9 4.6 38.1 41.9 13.5 3.605 0.846 72.1

4. During my performance appraisal session, I have ample opportunity to express my side of a performance issue.

1.6 6.3 37.9 43.0 11.2 3.558 0.832 71.2

5. I have frequent discussions with my manager about my performance.

1.7 7.8 42.4 38.3 9.8 3.467 0.837 69.3

6. I often agree with my manager on my performance evaluation.

1.6 5.9 37.3 45.5 9.7 3.558 0.809 71.2

7. I understand what my performance will be based on.

0.9 4.0 33.7 49.6 11.8 3.674 0.769 73.5

8. I am involved in setting objectives for my job.

1.4 5.2 33.8 47.6 12.1 3.638 0.813 72.8

9. My pay raises in this job are based on my job performance.

2.5 6.2 31.5 45.9 13.9 3.626 0.887 72.5

Overall performance management (α=.912)

3.611 0.633 72.2

*1-strongly disagree (1-20%), 2-disagree (21-40%), 3-neutral (41-60%), 4-agree (61-80%), 5-strongly agree (81-100%)

Table 7: Level of Agreement on Compensation

G. Compensation Level of Agreement*(%) M SD %1 2 3 4 5

1. Generally I feel my company rewards me for my extra effort.

1.9 6.6 35.8 41.5 14.2 3.594 0.879 71.9

2. I am satisfied with the amount of recognition I received when I do a good job.

2.1 7.3 36.0 41.3 13.3 3.566 0.885 71.3

3. My pay is tied to my performance. 2.5 6.5 39.3 41.2 10.6 3.508 0.862 70.2

4. At my company, raises and promotions are tied to performance.

1.8 5.3 35.2 44.9 12.8 3.614 0.842 72.3

5. At my company, employees usually get their raises when they expect to get them.

2.3 8.2 40.5 37.8 11.3 3.478 0.880 69.6

6. At my company, employees always get their raises on time.

1.4 7.9 38.7 39.9 12.1 3.533 0.857 70.7

7. I feel my wages are competitive. 1.6 6.3 39.3 41.3 11.7 3.552 0.837 71.0

Overall compensation (α=.912) 3.549 0.699 71.0

*1-strongly disagree (1-20%), 2-disagree (21-40%), 3-neutral (41-60%), 4-agree (61-80%), 5-strongly agree (81-100%)

Table 8: Level of Agreement on Employee Relations

I. Employee Relations Level of Agreement*(%) M SD %1 2 3 4 5

1. In my job, I am allowed to make many decisions.

2.0 8.3 36.2 38.1 15.4 3.566 0.917 71.3

2. In my job, I am often asked by my supervisor to participate in decision makings.

1.7 6.0 36.8 43.8 11.8 3.580 0.836 71.6

3. In my job, I am provided the opportunity to suggest improvements in the way things are done.

1.3 5.3 34.6 47.5 11.3 3.623 0.804 72.5

4. My manager keeps open communication with me in my job.

1.2 5.4 35.3 46.8 11.3 3.616 0.800 72.3

5. I am asked to participate in decisions regarding the selection of new employees.

6.3 10.6 35.8 37.3 10.1 3.344 1.007 66.9

6. I am asked to participate in decisions regarding the training of new employees.

5.0 11.1 36.8 37.3 9.9 3.360 0.975 67.2

Overall employee relations (α=.899) 3.515 0.729 70.3*1-strongly disagree (1-20%), 2-disagree (21-40%), 3-neutral (41-60%), 4-agree (61-80%), 5-strongly agree (81-100%)

Table 9: Level of Agreement on Workplace Happiness

Workplace Happiness Level of Agreement*(%) M SD %1 2 3 4 5

1. I’m not worried about the security of my job.

2.3 6.1 29.0 47.1 15.5 3.673 0.890 73.5

2. I can count on my co-workers to support me in hard times.

1.2 4.8 31.2 49.2 13.8 3.696 0.808 73.9

3. I know what is expected for me at work. 0.5 1.9 28.2 55.5 13.9 3.804 0.710 76.1

4. My work means a lot to me. 0.5 2.1 30.0 50.3 17.2 3.815 0.752 76.3

5. I understand how this organization works. 0.4 2.1 27.5 52.5 17.5 3.846 0.740 76.9

6. I have enough authority to do what I need to do.

1.3 4.3 33.1 47.7 13.7 3.681 0.810 73.6

7. I am always learning new things at work. 0.4 2.9 27.8 52.1 16.8 3.818 0.753 76.4

8. I receive clear and consistent guidance for my work.

0.8 3.7 30.1 51.4 14.0 3.741 0.772 74.8

9. My boss helps me get ahead. 2.0 4.5 30.5 50.2 12.8 3.673 0.829 73.5

10. I find my work personally satisfying. 1.1 3.3 29.8 51.5 14.3 3.745 0.779 74.9

Overall workplace happiness (α=.915) 3.749 0.591 75.0

*1-strongly disagree (1-20%), 2-disagree (21-40%), 3-neutral (41-60%), 4-agree (61-80%), 5-strongly agree (81-100%)

Table 10: Level of Agreement on RetentionRetention Level of Agreement*(%) M SD %

1 2 3 4 51. My organization deserves my loyalty. 0.9 3.5 31.8 46.3 17.5 3.760 0.811 75.2

2. I would not leave my organisation right now because I have a sense of obligation to my company.

1.2 4.8 31.3 46.7 16.2 3.720 0.831 74.4

3. I would be very happy to spend the rest of my career with my organization.

1.8 6.0 36.8 41.0 14.4 3.602 0.871 72.0

4. I am very committed to my job. 0.4 2.0 30.3 47.8 19.4 3.838 0.768 76.8

5. I feel a strong sense of “belongings” to my organization.

0.7 3.4 34.3 44.2 17.4 3.743 0.805 74.9

6. Even if it were to my advantage, I do not feel it is right to leave my organization.

1.3 5.3 34.3 43.4 15.8 3.673 0.847 73.5

7. It is my obligation to remain with my current employer.

1.7 4.8 35.6 43.3 14.6 3.643 0.848 72.9

8. I feel “emotionally attached” to this department.

1.5 5.8 36.4 41.8 14.5 3.619 0.856 72.4

9. I feel like “part of the family” in my department.

0.9 3.8 33.8 45.1 16.4 3.723 0.813 74.5

10. I would stay working at my company regardless of what.

2.1 6.1 38.2 37.9 15.8 3.592 0.897 71.8

Overall retention (α=.945) 3.691 0.677 73.8

*1-strongly disagree (1-20%), 2-disagree (21-40%), 3-neutral (41-60%), 4-agree (61-80%), 5-strongly agree (81-100%)

Table 11: Career women retention and HRM practices Variable (N=1200)

Mean SD Retention Staff Training Performance Compensation

Retention 3.691 0.677 1

Staffing 3.583 0.625 r=.340 1p=.000

Training 3.670 0.605 r=.442 r=.583 1p=.000 p=.000

Performance 3.611 0.633 r=.443 r=.497 r=.664 1p=.000 p=.000 p=.000

Compensation 3.549 0.699 r=.511 r=.488 r=.608 r=.687 1p=.000 p=.000 p=.000 p=.000

Employee 3.515 0.729 r=.457 r=.448 r=.553 r=.618 r=.666p=.000 p=.000 p=.000 p=.000 p=.000

Table 11.1: Simple multiple regression showing career women retention and HRM practices Model Unstandardized Coefficients Standardized Coefficients t p

B Std. Error Beta(Constant) 1.360 .114 11.92

7.000

Staffing .035 .033 .032 1.044 .296

Training .153 .040 .137 3.795 .000Performance .058 .040 .054 1.442 .150Compensation .266 .036 .274 7.293 .000Employee Relations

.140 .032 .151 4.399 .000

F=104.598, df=5, 1194, p=.000, R=.552, R²=.305, Adj. R²=.302

Table 12: Workplace happiness and HRM practices

Variable (N=1200)

Mean SD Workplace Happiness

Staff Training Performance Compensation

Workplace 3.749 0.591 1

Staffing 3.583 0.625 r=.411 1p=.000

Training 3.670 0.605 r=.594 r=.583 1p=.000 p=.000

Performance 3.611 0.633 r=.582 r=.497 r=.664 1p=.000 p=.000 p=.000

Compensation 3.549 0.699 r=.590 r=.488 r=.608 r=.687 1p=.000 p=.000 p=.000 p=.000

Employee 3.515 0.729 r=.560 r=.448 r=.553 r=.618 r=.666p=.000 p=.000 p=.000 p=.000 p=.000

Table 12.1: Simple Multiple regression showing HRM practices with workplace happiness

Model Unstandardized Coefficients Standardized Coefficients t pB Std. Error Beta

(Constant) 1.150 .087 13.216

.000

Staffing -.003 .025 -.003 -.123 .902Training .266 .031 .272 8.639 .000Performance .142 .031 .152 4.617 .000Compensation .168 .028 .199 6.050 .000Employee Relations

.150 .024 .184 6.151 .000

F=211.223, df=5, 1194, p=.000, R=.685, R²=.469, Adj. R²=.467

Table 13: Mediating effect of workplace happiness on HRM practices dimensions and

women retention

Controlling Variable

Variable (N=1200)

Retention

Staffing Training Performance

Compensation

Employee Relations

None Retention 1

Staffing r=.340 1p=.000

Training r=.442 r=.583 1p=.000 p=.000

Performance r=.443 r=.497 r=.664 1p=.000 p=.000 p=.000

Compensation

r=.511 r=.488 r=.608 r=.687 1

p=.000 p=.000 p=.000 p=.000Employee r=.457 r=.448 r=.553 r=.618 r=.666 1

p=.000 p=.000 p=.000 p=.000 p=.000Workplace happiness

r=.578 r=.411 r=.594 r=.582 r=.590 r=.560

p=.000 p=.000 p=.000 p=.000 p=.000 p=.000Workplace Happiness

Retention 1

Staffing r=.138 1p=.000

Training r=.150 r=.463 1p=.000 p=.000

Performance r=.161 r=.348 r=.487 1p=.000 p=.000 p=.000

Compensation

r=.258 r=.333 r=.397 r=.523 1

p=.000 p=.000 p=.000 p=.000Employee r=.198 r=.289 r=.330 r=.433 r=.502 1

p=.000 p=.000 p=.000 p=.000 p=.000

Table 14: Univariate analysis of variance showing the moderating effect of family support on the relationship between HR practices, work happiness with career retention

Source Type III sum of squares df Mean square F p Eta squareCorrected model 212.963a 7 30.423 107.891 .000 .388Intercept 16.543 1 16.543 58.667 .000 .047HR staffing .529 1 .529 1.877 .171 .002HR training .235 1 .235 .835 .361 .001HR performance .008 1 .008 .027 .869 .000HR compensation 8.311 1 8.311 29.473 .000 .024HR relations 1.998 1 1.998 7.084 .008 .006Happiness 41.885 1 41.885 148.537 .000 .111Family support 1.940 1 1.940 6.881 .009 .006Error 336.123 1192 .282Total 16898.740 1200Corrected total 549.086 1199

a. R square= .388, Adjusted R square=.384

Table 14.1: Independent sample t-test showing differences between family support and career women retention

Family support N Mean SD t p

No 166 3.788 .710 1.988 .047

Yes 1034 3.676 .670

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Table 15: Univariate analysis of variance showing the moderating effect of family size on the relationship between HR practices, work happiness with career retention

Source Type III sum of squares df Mean square F p Eta squareCorrected model 211.923a 7 30.275 107.025 .000 .386Intercept 15.505 1 15.505 54.813 .000 .044HR staffing .353 1 .353 1.247 .264 .001HR training .300 1 .300 1.060 .304 .001HR performance .009 1 .009 .031 .860 .000HR compensation 8.556 1 8.556 30.247 .000 .025HR relations 1.514 1 1.514 5.353 .021 .004Happiness 43.389 1 43.389 153.385 .000 .114Family size .750 1 .750 2.650 .104 .002Error 336.905 1191 .283Total 15881.100 1199Corrected total 548.827 1198

a. R square= .386, Adjusted R square=.383

Table 15.1: Independent sample t-test showing differences between family size and career women retention

Family size N Mean SD t p

No 762 3.730 .693 2.653 .008

Yes 437 3.622 .642

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