A Study of Individual Learning and Compensation Fairness on Work Performance of Service SMEs Employees in Malaysia : Career Self-Efficacy and Employee Engagement as Mediator, Emotional Intelligence as Moderator

Chong, Jia Yi (2022) A Study of Individual Learning and Compensation Fairness on Work Performance of Service SMEs Employees in Malaysia : Career Self-Efficacy and Employee Engagement as Mediator, Emotional Intelligence as Moderator. Masters thesis, Tunku Abdul Rahman University College.

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Abstract

Modern day organisations are seeking explanations from academicians and scholars to explore the factors that may improve the willingness and involvement of employees for realizing organisational performances (Jones & George 1998). According to Ahmad and Bakar (2003), Malaysians have different attitudes whether they will stay longer within one organisation or not. Employee engagement and career self-efficacy, as the attitudes of employees have a positive effect on organizational performance and job performance. Besides, in light of the economic downturn and practice of new norms as a result of the Covid-19 pandemic crisis, Small and Medium Size Enterprises (SMEs) have to enhance their productivity and reduce costs to ensure sustainable operations. This has shed light to the importance of employee work performance. Thus, it is very important to focus on these variables to identify their influence on employee performance in the Malaysia context. This study examines the influences of individual learning, compensation fairness, employee engagement, career self-efficacy, emotional intelligence towards work performance by employing the theories of sociology. To achieve the objectives of this research, a quantitative cross-sectional study has been carried out by surveying 317 employees who are currently working in the service SMEs. The data obtained are then analysed via Statistical Package for Social Sciences (SPSS) and Partial Least Square – Structural Equation Modelling (PLS-SEM, SmartPLS). The research findings reveal that individual learning and compensation fairness builds employees a strong career self-efficacy and employee engagement in the services SMEs which subsequently result in employee work performance. Interestingly, employee emotional intelligence is found to be one of the predictors which contributes small and large effects on the work performance. The research contributes to the SMEs and managerial level that face difficulty in containing the negative impact of the COVID-19 pandemic on employee’s performance. For example, managers can use this research to fully understand employees’ ideas. Then, managers can proceed to the problems that are occurring, actively make relative adjustments and measures to face the challenge of declining work performance. Such indications might be valuable not only during the pandemic outbreak but also be a legacy to the service industry context for the post-pandemic world.