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A Data Analytic Approach of Job Satisfaction: A Case Study on Airline Industry

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DOI: 10.1142/S0219649219500035

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March 12, 2019 11:12:38am WSPC/188-JIKM 1950003 ISSN: 0219-6492
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Journal of Information & Knowledge Management

Vol. 18, No. 1 (2019) 1950003 (15 pages)
.c World Scienti¯c Publishing Co.
#
DOI: 10.1142/S0219649219500035

A Data Analytic Approach of Job Satisfaction:

A Case Study on Airline Industry

§
Hansani Kalawilapathirage*,‡, Olufemi Omisakin*,
and Susan Zeidan†,¶
*BusinessManagement Department, Auckland
Nelson Marlborough Institute Technology
Campus, New Zealand
†
Canadian University Dubai, Dubai
‡
hansani-kalawilapath@live.nmit.ac.nz
§
Olufemi.omisakin@nmit.ac.nz; Olufemi.omisakin@aut.ac.nz
¶
Susan@cud.ac.ae

Published 8 February 2019

Abstract. Intense competition has made it critical for airlines to retain its highly capable sta® by
ensuring the highest job satisfaction of its employees. This competition has resulted from the emergence of
budget airlines focussed on a niche market. To provide a di®erentiated passenger experience whilst °ying
with airlines, the management should ensure that all the sta®, including ground level and cabin crew, who
are the initial contact point with customers are highly satis¯ed in terms of their job roles. The study
evaluates human resource (HR) factors a®ecting job satisfaction with a given (anonymous) airline.
A detailed study and analysis of major factors contributing to job satisfaction in the said airline was
carried out. In analysing the relationship and current level of job satisfaction, the study uses a quantitative
approach, with primary data obtained from questionnaires completed by employees in one of the airlines.
Further, the study has identi¯ed independent variables as being ¯nancial rewards and recognition,
training and development, and work environment. Statistical tools, such as correlation and regression
analysis, are used to evaluate the responses from questionnaires and to provide signi¯cance of the
independent variables contributing to job satisfaction.

Keywords: Job satisfaction; ¯nancial rewards; ¯nancial satisfaction; work environment; training and
development.

1. Introduction
Currently, there is severe competition in the airline industry, with competitive
prices and promotional packages being o®ered by distinct airlines for the same
routes. This issue is also discussed by Gazaar (2015), where ¯erce price competition
has led Australian airlines to °y unsustainable routes, which ultimately needed to be
redesigned. It has been argued that one of the critical challenges faced by airline
carriers is the inability to retain skilled employees (Rajesh, 2012, pp. 54–56) and
there is a trend for the existing skilled workforce to move out of the industry leading
to a shortage of expertise.

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It is predominantly important for airlines to retain satis¯ed employees to achieve

core competencies and to create a competitive advantage over rival airlines. Airlines
are service organisations and employees within such an organisation play a vital
role in identifying passenger needs and ful¯ling them accordingly. According to
Ahmad et al. (2012), to enhance the quality of the passenger service and maintain
the existing quality assurance, it is important that airlines should ensure that sta®
are happy within their current job roles.
According to Singapore Airlines (2013) Annual Report, it invested highly in sta®
training believing that if the sta® turnover increases because of job dissatisfaction,
the amount spent on extensive training will be wasted. Therefore, the study is
important, because when the company addresses the factors contributing towards
job satisfaction, employee retention tends to increase, by decreasing sta® turnover
and reducing sta®-related costs. Additionally, study reinforces the need for the
company to identify and share ¯ndings of the project in a way that brings a new
perspective for employees in performing their job tasks. The understanding of job
satisfaction in respect of airlines becomes crucial when implementing a service-
di®erentiated strategy; this focusses on the importance of maintaining strong rela-
tionships between managers and sta® and creating a working environment which
provides equal opportunities and satisfaction to every employee in the company
while ensuring that passengers experience extraordinary service levels.
In 2017, the average number of employees of the company increased by 3.1% in
the 2016/17 ¯nancial year compared to 2015/16, but employee productivity ratios,
in terms of revenue and value added per employee, has shown a marginal drop of 8%
and 6%, respectively. This also resulted in a slump of employee productivity for the
group in the 2016/17 year. The literature is almost non-existent on critical analysis
of human resource (HR) factors pertaining to one speci¯c airline rather focussing on
di®erent other philosophies in creating excellence in passenger service. Against
this background, the purpose of this research is to answer the research question
\What human resource factors contribute to job satisfaction of sta® in Airlines? "
More speci¯cally, this research has three objectives:
(1) Identi¯cation of distinct HR factors that in°uence job satisfaction of employees
of airlines.
(2) Analysis of relationships and the signi¯cance between HR factors and job
satisfaction of employees at one of the airlines.
(3) To provide recommendations and conclusions relating to job satisfaction of the
airlines' sta®.
The study attempts to identify key contributing HR factors, which result in ultimate
job happiness of the employee and boosts overall sta® productivity; this will be
accomplished through the available literature. Additionally, by analysing the
existing level of employee satisfaction and the relationship of human factors and
job satisfaction in one of the airlines will contribute to solving the problems of
employee productivity and achieving the highest value-added service delivery.

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A Data Analytic Approach of Job Satisfaction

The entire company will bene¯t by creating a competitive advantage over highly
motivated employees.
The paper consists of ¯ve sections. First, it reviews the extant literature relevant
to job satisfaction and related factors. Then research methodology is presented, and
data analysis techniques are discussed. Subsequently, the ¯ndings are discussed and
summarised. The study concludes with a discussion of theoretical and managerial
implications and directions for further research.

2. Literature Review
2.1. Job satisfaction
Job satisfaction demonstrates a systematic process, which reinforces organisations to
identify the current level of happiness of employees in terms of their job responsi-
bilities and workplace environment. This was strengthened by Sageer et al. (2012),
where they stated, \job satisfaction is a process of achieving individual employee's
desires and expectations." There is a direct as well as positive relationship between
satisfaction of the job and employee performance within the workplace (Rusu and
Avasilcai, 2013).
\A pleasurable or positive emitional state resulting from the appreisal of one's
job or job experiences" Locke (1976) (cited Saari and Jude, 2004, p. 396).
In terms of spectrum researches Masood et al. (2014) claimed that job satisfaction
was one of the main aspects researched due to its importance on an organisation's
overall performance. Therefore, it is critical that service organisations, especially
airlines since the employees are the ¯rst contact with passengers, need to ensure that
the company will retain highly satis¯ed sta® in order to deliver superior service
towards passengers. This has been strengthened by Lovelock and Wirtz (2011,
pp. 208–284) where frontline employees have played a major role in service excel-
lence and there was a higher commitment of top performing service companies in
managing HRs, including retention of employees and gaining a competitive advan-
tage. Job satisfaction is regarded as the highest priority (Saari and Judge, 2004) over
other perceptions, beliefs and attitudes which employees demonstrate as it directly
in°uences the overall performance of the company. Satisfaction, as a way of per-
ception and feeling, is also embedded with their corresponding acts, discussed by
Cranny et al. (1992) and summarised by Sageer et al. (2012). It stipulates the
accomplishment of a task and the undertaking of job responsibilities merely depends
on the level of satisfaction that the employee perceives realistically.
According to Oscar et al. (2005) intrinsic variables, such as providing challenging
and more job tasks to employees and recognising values of employees, had a positive
e®ect on job satisfaction. This was opposed to extrinsic motivational factors namely
pay and rewards, company's set standards, and job security which had a lesser
impact on overall job satisfaction but eliminated the job dissatisfaction of employees.
Additionally, as per Ahmad et al. (2012), a satis¯ed workforce had a direct in°uence

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over passenger service in the airline industry. As employees are a crucial factor in
boosting customer service quality, they should also be able to resolve customer
queries in a continuous way. In the event of employee attitude and company's
strategy being di®erent, it is questionable whether service excellence can be im-
proved in a progressive manner.
In gaining an understanding of the behaviour of people Reiss and Havercamp
(2005) summarised organisations need to identify an array of human motives and
values in the preliminary process. For example, the company needs to understand
speci¯c employee's goals and objectives for satisfaction. However, this is directed
more towards the psychological aspect and it may be di±cult to predict exact
requirements of individuals or employees. The argument is that a company needs to
focus on employee needs; this is further strengthened by Jerome (2013) that the
\need hierarchy theory" directly in°uences employee motivation and there are ways
that top management can lead their employees towards self-actualisation.

2.2. Financial rewards and recognition

One of the strategic components in e®ective group HR management strategy is to
provide job satisfaction through appropriate rewards and recognition levels
Heracleous et al. (n.d.). It is important that airlines motivate and eventually provide
job satisfaction, especially for front line sta® as they have direct contact with cus-
tomers and they are the ones required to provide highly customised service of the
highest quality according to the respective passenger queries. The paper further
discussed the distinct nature of rewards that could be provided, including equity-
based incentives and bene¯ts, performance-based share options and promotions to
the airline's sta®. This remuneration is based on the company's ¯nancial perfor-
mance and recognising employees as a part of the company's shareholders who
contribute towards core competence of the airline.
An employee's level of satisfaction in his role tends to improve based on the
fairness of his reward package, i.e. money is crucial in enhancing satisfaction by
considering overall e±ciency levels, skills and knowledge (Latt, 2008). Additionally,
according to the HR strategy and the corporate responsibility guidelines of the
airlines, job satisfaction is highly critical in achieving their passenger and cargo
performance, and they allocate bonuses up to 50% of an annual basic salary as part
of their pro¯t sharing scheme (Wirtz and Heracleous, 2016, p. 700). Pay and
rewards, in terms of boosting job satisfaction, tend to recognise most of the indus-
tries in the global arena (Sageer et al., 2012).
Another aspect concerning the best treatment of employees is the providing of a
high degree of recognition. This is paramount in retaining loyal employees within the
company. Employees in airlines are also recognised for their extraordinary perfor-
mance through company newsletters (Heracleous et al., n.d.); this tends to encourage
employees' maximum commitment. This is also embedded with using non-¯nancial
awards such as \best cabin crew service" and \best airline" to keep sta® motivated in

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A Data Analytic Approach of Job Satisfaction

a continuous manner. Many employees prefer to work for a company with a pres-
tigious reputation worldwide and this also provides psychological satisfaction for
employees when they are sharing ideas and views with colleagues who work for
competitive airlines. Therefore, it is highly likely that employees would remain with
airlines in the long run. According to analysis derived from the data used in this
research, it was also revealed that pay and rewards, together with recognition, have
a positive relationship with job satisfaction.

2.3. Work environment

The work environment of the company should be supportive in obtaining the
maximum potential from employees in terms of their job tasks and work responsi-
bilities (Shah et al., 2012). It is also important in building a strong relationship
between the company and its employees to o®er °exible work conditions. The
company also needs to focus on the content (Shah et al., 2012) of the job and ensure
that it aligns with HRs' Practices, in leading to the ultimate in employee's job
satisfaction. It should also monitor factors such as communication and work °exi-
bility in a timely manner; revision to such elements should be communicated to
employees, since working environment in°uences the level of job satisfaction of the
employees (Shah et al., 2012) leading to lower employee turnover and higher com-
mitment of the employee. As per the ¯ndings discussed by Shah et al. (2012), it was
identi¯ed that work environment-related factors, such as communication and job
security, showed a higher signi¯cance for job satisfaction in relation to the Mahan
Air Company. The higher in°uence and impact of the work environment was also
discovered by the analysis of this research; a higher correlation between work en-
vironment and job satisfaction indicated that the company may not compromise
between the work environmental factors and pro¯tability.
Communication is also crucial as building a cohesive communication link a®ects
the well-organised behaviour as discussed by Shah et al. (2012); the research showed
that communication can in°uence job satisfaction and there was a substantial
relationship between communication in the working place and job satisfaction (Shah
et al., 2012). E®ective communication is crucial as it fosters interaction with
employees regarding their job issues via sta® meetings and performance evaluations
and career development-related problems. It also sustains the relationship between
managers and employees by communicating changes in corporate values and
enhancements to overall organisational structure, which ultimately leads to satis¯ed
employees in terms of their job performance.
According to the Singapore Airlines (2017), the total cost incurred in terms of
communication was $99.1 million and there was an increase compared to 2015/16 of
8.8%; this indicates that communication is regarded as a vital aspect of this
company's operations. According to Heracleous et al. (n.d.), communication is
required in managing teams, especially in sharing knowledge and experiences, to
improve performance among team members by leading to an enhanced quality of

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delivery service. Additionally, e-newsletters and company brochures together with

the intranet allow employees to explore the company's contribution to society,
sustainability activities and employee recognition programmes and ensure that sta®
members are highly satis¯ed in their jobs (Heracleous et al., n.d.).
As per the ¯ndings discovered by Shah et al. (2012), job security also has a
substantial impact on job satisfaction; higher job satisfaction leads employees to
carry out their work tasks in a consistent way, knowing that their existing job
is secure. For example, in recognition of 70 years of service excellence, airlines,
including four main subsidiaries together with its cargo section, provides messages to
its employees regarding the stability of the company in the industry over this
long period; this may tend to increase employees' positive thinking surrounding their
job security.

2.4. Training and development

Industry training opportunities provided by the company for their employees
(unlike some other organisations, airlines need to provide training), ultimately
improve customer value credentials. This is discussed by Latif (2012), where training
improves job satisfaction as it helps overcome weaknesses of employees. This can
involve creative shaping of individual attitudes in the event the employee does not
understand corporate structure, deliverables and expected behavioural patterns, all
of which in turn lead to career development as part of job satisfaction. According to
the ¯ndings of the company's cabin crew training (Heracleous et al., n.d.), it was
identi¯ed that all the supervisory crew members needed to attend a one-day
appraisal. This ultimately ensures consistency, as they had to review all the prior on-
board assessment forms to double check the accuracy levels, where this ongoing
training had occurred crew, members tended to prefer their job roles.
According to Chong (2007), after conducting one-on-one interview sessions with
senior managers of the airlines departments, namely people networking and cabin
crew, it was revealed that e®ective communication and training programmes helped
the employees to embrace core values of the company, especially during the exten-
sive training in their induction programme. This may encourage them to improve
their routine job tasks according to their service delivery promise, which ultimately
leads to enhancing the brand value of the organisation. As per Chong (2007), cabin
crew are required to attend an extensive training period of four months including
three stages; newly recruited crew members should also be undergoing grooming
sessions, which concentrate on the airlines' corporate value credentials. This focusses
on enhancing not only their job performance skills but also on developing their
personal credentials. It can also be argued that higher degree of investment in re-
lation to training is most useful in employee development aimed at avoiding un-
necessary stress levels and confusion when there are needs to increase employee
productivity. This is associated with multifunctional job tasks to be performed by
employees with higher expectation of outcome by employer.

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3. Research Methodology
3.1. Research framework and model
A conceptual framework is important as it provides a systematic development to
improve the understanding in relation to di®erent concepts and to optimise the
research design (Fig. 1). According to Maslow (1954) cited by Reiss and Havercamp
(2005), \need theory" could also be applied in HR management where ¯nancial
means can be recognised as esteem needs and training can be categorised as social
needs, where team spirit is created among employees. A safe work environment could
be regarded as safety needs; all of these factors have implications towards perfor-
mance of the employees. The following model has been developed based on Maslow's
Hierarchy of Needs theory.
The following hypotheses were developed based on the research objectives stated
which are to analyse the relationship and signi¯cance of HR factors and job satis-
faction, and these used to make relevant conclusions. These arguments are also
stated in the literature but di®er from the previous research.
H1a : There is a relationship between ¯nancial rewards and recognition and job
satisfaction.
H1b : There is no relationship between ¯nancial rewards and recognition and job
satisfaction.
H2a : There is a relationship between work environment and job satisfaction.
H2b : There is no relationship between work environment and job satisfaction.
This phase of the research strategy would ensure the use of questionnaires as a
method of data collection and the providing of responses to the research question;
the hypotheses were tested using questions. The questionnaire consists of two main
sections, where part A focusses on compiling responses in relation to general ques-
tions especially commencing with opening questions that would enable the analysis
of job satisfaction based on distinct backgrounds. Part B focusses on gaining an
understanding in relation to di®erent perspectives of HR factors, where each factor
consists of four sub-questions and respective measurements grading 1 to 5, i.e. value
1 was given for the response of \extremely dissatis¯ed" and the highest value of 5

Fig. 1. Conceptual model of contributing factors to job satisfaction.

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allocated for the response of \extremely satis¯ed". Questions in relation to ¯nancial

rewards and recognition were designed in order to rectify the compatibility of pay
with an employee's level of education and questions in terms of training developed to
understand whether the company provided adequate training and the practical
application of such programmes using a high degree of resources. Questions in re-
lation to work environment were designed to analyse whether the company provided
adequate °exibility in various job roles and to analyse the e®ectiveness of internal
communication. However, only 45 employees responded to the questionnaires.
Therefore, the analysis has been done using the data provided by 45 people.

3.2. Population and sampling

The population of the research was 60 employees; no sampling was used for this
study and all the employees had been given the questionnaires. The entire popula-
tion of one airline's location was selected to make conclusions of overall job satis-
faction of the airlines; the data derived from one location need to cover the entire
sta® to gain maximum responses from them.

4. Critical Analysis of Data

4.1. Relationship between ¯nancial rewards and recognition
and job satisfaction
As per Table 1, Pearson correlation demonstrates the level of measurement between
¯nancial rewards and recognition and job satisfaction, where there is a variation of
¯nancial rewards job satisfaction changes. The relationship between ¯nancial
rewards and job satisfaction was weak but positive (r ¼ 0:194, p < 0:001) and rel-
ative signi¯cance stipulates that there was a little statistical signi¯cance between
¯nancial rewards and recognition and job satisfaction. According to Table 2,
¯nancial rewards and recognition account for 20% of the variability of job
satisfaction (b ¼ 0:205). This result suggests the acceptance of H1a .
According to Fig. 2, there was a positive but weak association existing between
¯nancial rewards and job satisfaction, where changes in rewards do not signi¯cantly

Table 1. Correlation of ¯nancial rewards and recognition.

Description Job satisfaction Financial regards

and recognition

Job satisfaction Pearson correlation 1 0.194

Sis. (2-tailed) 0.202
N 45 45
Financial rewards and recognition Pearson correlation 0.194 1
Sig. (2-tailed) 0.202
N 45 45

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Table 2. Coe±cients of ¯nancial rewards and recognition.

Model Unstandardized coe±cients Standardized coe±cients t Sig.

B Std. error Beta

Constant 3.035 0.623 4.868 0.000

Financial rewards 0.205 0.158 0.194 1.295 0.202

in°uence the job satisfaction of the employees. Therefore, behaviour and level of
employee satisfaction are not highly correlated with bonuses, promotions and
other fringe bene¯ts. However, employees tend to evaluate fair reward systems
since there is a relationship but it is not individually signi¯cant in enhancing job
satisfaction.
Figure 3 indicates that 87% of employees were satis¯ed with the current reward
system, of which 9% responded that they were extremely satis¯ed with their com-
prehensive reward package, transparency of bonus distribution as well as with for-
mal management recognition systems. Nevertheless, 13% of sta® were neither
satis¯ed nor dissatis¯ed with the ¯nancial rewards distribution and this has resulted
in a weak relationship between job satisfaction and ¯nancial rewards together with
recognition.

Fig. 2. Scatter diagram for ¯nancial rewards and recognition.

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Financial Rewards & Recognition

Extremely Satisfied Satisfied Neutral
Dissatisfied Extremely Dissatisfied

0% 0%

13% 9%

78%

Fig. 3. Job satisfaction on ¯nancial rewards and recognition.

4.2. Relationship between working environment and job satisfaction

There was a strong positive correlation existing between the variables of work
environment and job satisfaction for employees in the airlines. For instance, job
satisfaction is strongly correlated towards the changes in work environment factors
such as °exibility of working conditions, work place communication as well as job
security (r ¼ 0:480, p < 0:001). There was a higher statistical signi¯cance between
work environment and satisfaction of the respective job categories, increase in
°exibility, e®ective communication process and higher job security tending to sig-
ni¯cantly relate and it is highly signi¯cant towards the job satisfaction (Sig. 2-
tailed ¼ 0:001 < 0:05) (Table 3). The 2-tailed sig. also demonstrates that variables
do not possess any di®erences. Further, work environment indicated 29% of varia-
tions in job satisfaction levels (b ¼ 0:295) according to Table 4. Therefore, statically,
H3a has been proved.
The strong positive relationship between work environment and job satisfaction
of employees in the airlines is further proved and con¯rmed by the scatter diagram
(Fig. 4). A greater number of dots were closer to the best-¯tted linear line of the
scatter graph, where for instance, changes in the workplace factors have a direct
impact on the deterioration or boosting of job satisfaction.

Table 3. Correlation of work environment.

Description Job satisfaction Work environment

Job satisfaction Pearson correlation 1 0.480

Sig. (2-tailed) 0.001
N 45 45
Work environment Pearson correlation 0.480 1
Sig. (2-tailed) 0.001
N 45 45

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Table 4. Coe±cients of work environment.

Model Unstandardized coe±cients Standirdized coe±cients t Sig

B Std. error Beta

Constant 2.788 0.298 9.342 0.000

Work environment 0.295 0.082 0.480 3.591 0.001

Figure 5 indicates that 40% of sta® agreed and were satis¯ed with the current job
°exibility and guidelines, communication enhancement programmes and the strat-
egies implemented by the airlines towards sustaining their position in the industry,
whilst providing higher security and stability for the individual job positions.
Additionally, 9% were extremely satis¯ed with the work environment policies
established within the company. Nevertheless, 40% and 11% were neutral and dis-
satis¯ed, respectively, with the existing work environment criteria and with the
ability of the company in providing a stimulating working environment along with a
well-organised communication link.
It can be seen from Fig. 6 that 75% of sta® were satis¯ed in terms of their existing
job performance. They are satis¯ed with the innovation and creativity existing
within the company, commitment by the management towards the quality of the
job, and management procedures in relation to company resources. It was also
mentioned that higher satisfaction in terms of ¯nancial rewards and training and

Fig. 4. Scatter diagram for the work environment.

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H. Kalawilapathirage, O. Omisakin and S. Zeidan

Work Environment
Extremely Satisfied Satisfied Neutral
Dissatisfied Extremely Dissatisfied

0%
11% 9%

40%
40%

Fig. 5. Job satisfaction of work environment.

Job Satisfaction
Extremely Satisfied Satisfied Neutral
Dissatisfied Extremely Dissatisfied

0% 0%

18% 7%

75%

Fig. 6. Overall job satisfaction.

development, i.e. 78% and 62% (refer Fig. 3) had led to an increase in the overall job
satisfaction of employees.

5. Conclusion
Based on the results, which gained through SPSS model 23, the H1a has been
accepted. This indicates that the airlines needs to focus on proper allocation of
¯nancial rewards for the right employees and also provides adequate recognition
levels based on their seniority. This is mainly because money is crucial in motivating
employees and providing higher job satisfaction (Latt, 2008). It is essential that the
company undertakes a more rational approach in maintaining current pay scales
together with the enhancement towards employee pro¯t-sharing schemes. Further,
since it demonstrates a weak relationship and signi¯cance, the company needs
to rectify other factors associated with the ¯nancial rewards that impact on job
satisfaction. For example, the employees might need comprehensive medical and

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A Data Analytic Approach of Job Satisfaction

insurance coverage together with allocation of funds for their educational careers.
It would be essential to carry out management reviews in relation to distribution of
performance incentives as part of ¯nancial rewards. This is merely because there was
13% of sta® who were neutral to the current distribution of bonuses and ¯nancial
incentives. However, it is not necessary to carry out transformational change in
relation to current pay scales or percentage of interim bonus payments, but to
perform management reviews to ensure that the pay system is bench-marked in the
industry compared to other airlines.
The hypothesis H2a also had been accepted and can be determined that there was
a strong positive correlation between work environmental conditions and ful¯lment
of job satisfaction. A small variation in work environment variable can lead to a
signi¯cant e®ect on job satisfaction. Additionally, employees recognise e®ective
communication, job °exibility and job security, as components of work environment
in improving overall job satisfaction. As a result, management needs to take pro-
active actions in maintaining the conditions of the workplace, since there was a
strong relationship between work conditions and job satisfaction. An emergence of
poor working conditions would result not only in a deterioration of job satisfaction
but also in a reduction in the overall service excellence of the airlines. As a suggestion
for future researchers, the relationship between training and development and job
satisfaction of the airlines can be studied and can also emphasise the impact on
customer satisfaction by enhancing job satisfaction of the employees.

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