Healthcare Policy And Its Effectiveness Assignment

Healthcare Policy And Its Effectiveness - Assignment Example These agencies also bear the role of championing for their grievances. These include pay crisis and the roles of each in the medical field. They also determine the requirements in the market which helps in the development of the course outline in the colleges and universities offering the courses (Commission on Collegiate Nursing Education, web) In many states and countries, the health sector is managed free from political processes which derail the provision of quality health services to the society. The payment of medical practitioners is done by the national or state government. The establishment and development of policies that govern the health sector is a gradual process that includes the includes stakeholders and the government (Skolnik, 2012, p. 263-267).. Due to the sensitivity of the matters affecting health, it is always advisable that the policies be set by the professionals in the field with consultation from the legal administrative officers in the region.

Ratio Essay Example | Topics and Well Written Essays - 500 words

Ratio - Essay Example In the example, this year's quick ratio is 0.4:1, which means that the company's liquid assets are at four tenths of the value of its current liabilities. The company will not be able to pay current debts with its current liquid assets. The debt to net-worth ratio measures how much the company is in debt. This ratio compares what the business owes to what it owns. It is a measure of the company's ability to meet both its creditor and owner obligations in case of liquidation. The formula is: (total debt or liabilities) / (tangible net worth). The company's inventory turnover ratio measures the number of times the inventory is sold out, or "turned over", in a year. This ratio describes whether business inventory is understocked, overstocked, or obsolete. The formula is: (cost of goods sold) / (cost of the average inventory). The company's average collection period ratio describes the average number of days it takes customers to pay bills. The formula is: (days in accounting period) / [(net sales) / (accounts receivable)]. The net-sales to working-capital ratio measures how many dollars in sales the business makes for every dollar of working capital, where working capital = current assets - current liabilities. This ratio tells you how efficiently working capital is being used to generate sales.

Stock Market Shocks: The Great Depression and Recession

Stock Market Shocks: The Great Depression and Recession Stock Market Shocks during the Great Depression and the International Financial Crisis. ABSTRACT: This paper inspects the impact of stuns saw in the Stock Market on yield and vocation. Amid the Great Depression. We display three principle discoveries. Initially, an unfavorable budgetary stun prompts a decrease in the assembling divisions yield and vocation that crests around 11 months a short time later. Next, this stun has a much more noteworthy effect on the durables area than the nondurables division. Last, The Stock Market related to the economy shortcoming in 1933 and 1934 may have controlled the recuperation from the Great Depression. The discoveries propose that Stock Market shortcoming added to the length and profundity of the Great Depression. On the other hand, the spread of the worldwide Financial Crisis of 2008/2009 was quick, and affected the working and the execution of Stock Market. Because of the significance of this sensation, this study plans to clarify the effect of the emergency on securities exchange conduct also reliance through the investigation of the intr aday unpredictability transmission. Finally, comparing and contrasting the impact of the Great Depression and the Global Financial Crisis on the Stock Market Variables. I. Introduction: Recent occasions have highlighted the impact of monetary framework or the Stock Market disturbances on the macroeconomy. An extensive ensuing writing has analyzed this channel with an accentuation on the impact of disturbances to the saving money framework. (Romer, 2003) Notwithstanding bank disappointments, the Great Depression was additionally a time of noteworthy money related business to a stock stress, which may have added to its seriousness. (Romer, 2003) Roused by this perception, we present confirmation relating Stock Market shocks to real economic outcomes. We look at the impact of stuns reviewed in the Stock Markets utilizing vector auto-relapses (VARs) on month to month information for yield, job, wholesale costs, and a budgetary business sector variable. (Richardson G. , 2006). On the other hand, the recent worldwide Financial Crisis has impressively influenced the Stock Market and is viewed as the most destroying emergency since the Great Depression of 1929. (Treichel, 2 012).As per information from the World League of Exchanges, toward the end of 2007 the world value market promotion was more than $66 trillion and forcefully declined in 2009 to remain at $48 trillion a drop of 21.5%, which is equivalent to 27% of worldwide GDP for 2009. (Treichel, 2012) This emergency, which fundamentally started in the US market, spread quickly what's more perilously to created and developing budgetary markets and to genuine economy as far and wide as possible. (Colander, 2009) This paper will significantly examine the crucial consequences of the Great depression and recent Financial Crisis on the Stock Market. LITERATURE REVIEW These sources talk about circumstances and end results of the Great Depression which happened around the 1929 until mid-1930. Here, the creators investigations and specifies a portion of the circumstances and end results of this dejection that influence the United States as well as different countries too. It will likewise be survey a few measurements and actualities began by the Great Depression. (Foreign Affairs, 2007) The Global Financial Crisis is an essential part of Financial markets is to direct assets to their generally gainful utilizes, and when this capacity is traded off, profit endures and could have long term impact. The most immediate genuine impacts of disturbances in Stock market are on capital reallocation amid and after the severe crisis. (ORGANIZATION, 2010) The Great Depression as indicated by Temin and White, the first keeping money and banking emergency was brought about by exacerbating essential components, instead of disease among banks. Temin (1976) contends that the Stock Market Crash, the Dust Bowl, and the following monetary, rural, and modern discouragements decreased the estimation of bank's ventures and raised suspension rates. (Richardson, 2007) The exploration has demonstrated that the connection between the three securities exchange lists have been stronger amid the Financial Crisis that broke out mid-2007 than before the emergency. This outcome is clarified by the way that speculator alarm now and again of Crisis is more exceptional than energy Communicated amid development periods. (Gammoudi, 2009) II. The Great Depression. The Great Depression from 1929 to1939 was the longest enduring and deepest financial downturn in the historical backdrop in the Western industrialized world not only in the United States. (Rodney, 2008) In the United States, the Great Depression started not long after money markets accident of 1929, which delivered Wall Street into a frenzy and wiped out a huge number of financial specialists all over the world. (Edwards, 2005) Throughout the following quite a while, customer spending and venture dropped, bringing about steep decreases in modern yield and climbing levels of unemployment as falling flat organizations laid off specialists. (Edwards, 2005) By 1933, when the Great Depression arrived at its nadir, approximately 13 to 15 million Americans were unemployed and about a large portion of the nation's banks had fizzled. (Pells, 2014) In spite of the fact that the alleviation and change measures set up by President Franklin D. Roosevelt helped reduce the most exceedingly ter rible impacts of the Great Depression in the 1930s, the economy would not completely turn around until after 1939, when World War II kicked American industry into high apparatus. (Richardson G. , 2006) The Stock Market Variables. The month to month stock unpredictability measure utilized as a part of the study breaks even with the month to month normal of unquestionably the everyday stock returns less the normal stock return for that month. (Chin, 2010) Figure 1 exhibits the monetary variables utilized in the study. Stocks rose significantly through the 1920s. It started to decrease pointedly in the fall of 1929 and arrived at its most reduced point in June 1932. (Chin, 2010).At its trough, the share trading system had declined by more than 83% percent from its top quality. In spite of the fact that the share trading system enhanced with the economy, it didn't come back to its pre-great Depression top level until World War II. The way for stock value developments recommends that the specialist sharp decrease in total assets may have exacerbated the Great Depression. Figure 1: (Chin, 2010) The Effect on the durable and nondurable good sectors. Stock and Financial stuns ought to have a more prominent impact on the durables merchandise part than the nondurables area. (Chin, 2010) We gather information on the yield and livelihood of these divisions to look at whether monetary stuns had a more prominent effect on the durables sector. (Chin, 2010) Figure 3 plots the employment and output of these two segments over the example period. Employment and output of the durables part declined steeply over the Great Depression, tumbling from top to trough by around 77 and 57 percent, separately. In correlation, the nondurables part was less influenced amid the Great Depression. (Romer C. D., 2003) Figure 2: Durable and nondurable good sectors. (Chin, 2010) III.The Financial Crisis The Global Financial Crisis (GFC) or worldwide economic crisis is generally accepted to have started in July 2007 with the credit crunch, when a loss of certainty by US speculators in the estimation of sub-prime home loans brought about a liquidity emergency. (Kapoor, 2010).This, thus, brought about the US Federal Bank infusing a lot of capital into money related markets. By September 2008, the emergency had compounded as securities exchanges around the globe slammed and got to be very unpredictable. (Kapoor, 2010) Effect of recent financial market disruptions The VARs amid the Great Depression to study the impact of the Financial Market sector stuns amid the fall of 2008. Budgetary markets were subject to a progression of unforeseen occasions amid this period, which prompt sharp unfavorable developments in stock costs and credit spreads. (Chin, 2010) The past results propose that these stuns may have a noteworthy effect on the genuine economy. Table 1 displays the evaluated impact of monetary business developments amid September and October, 2008. (Chin, 2010). The evaluated impact on yield and occupation are accounted for at the crest drive reaction time of 11 months and further on at year and a half. (Chin, 2010) The outcomes show that the Stock Market interruptions are evaluated to have a monetarily expansive impact on the assembling sector. At the top, these advancements are assessed to result in output and aggregate hours decreases in the fabricating segment of around 16 and 12 percent, i ndividually. These negative impacts are normal to be very constant, enduring admirably into 2010. (Chin, 2010) Table 1: (Chin, 2010) The Financial Crisis and the Behavior of Stock Prices As the explore of the impact of the late Financial Crisis on the conduct of stock costs utilizing the day by day returns of thirty one noteworthy US stocks over the 2007/08 period. (Rodney, 2008)Unequivocal mean day by day returns tumbled to negative levels, unequivocal instability surged more than two hundred percent, relationship between stocks debilitated and the danger lessening advantage of portfolio expansion rose. Beta danger expanded fundamentally for monetary stocks and the significance of business danger for them dropped. (Colander, 2009) IV. The differences between The Great Depression and Financial Crisis. The Monetary Policy and Deficit Spending Firstly, the Stock Market Crash is one of the causes of the Great Depression. But, in 2007 Crisis the mortgage issues was responsible for implementing the Financial Crisis. (Cukierman, 2009) Therefore, not the Stock Market. Before the Great Depression, the United States was under the extremely thrifty authority of the Warren G. Harding and Calvin Coolidge organizations. (Cukierman, 2009) Both made solid strides to somberness and keeping up fiscal obligation. The comprehension of financial arrangement was straightforward: the central government ought to be run on an adjusted plan. The immense part the central government now plays, particularly as to Medicare, Social Security, Medicaid, and military spending with respect to the deficient expense rates we craving, is unsustainable. In any case, amid a financial emergency, private spending dissipates. This is tricky in light of the fact that shopper spending speaks to 70% of the United States economy. (Cukierman, 2009) In the 1930s, ther e were various economists who contended strenuously for a do-nothing arrangement. Yet as the Great Depression delayed and fallen in 1937 when preservationists were fruitful in having the national government slice the monetary allowance shortage (it tumbled from 5.5% of GDP in 1936 to 0% in 1938) they lost believability. Economists today for the most part accept that it was the extraordinary shortfalls coming about because of World War II that really finished the Great Depression. (Colander, 2009) GDP Growth Gross Domestic Product (GDP) development is presumably the best consider figuring out what constitutes a melancholy versus a subsidence. The most oversimplified meaning of a subsidence is when monetary development contracts for two quarters straight; notwithstanding, the seriousness is measured in genuine decay, not just by the refinement in the middle of positive and negative development. (Edwards, 2005) The economy was moderating in 2007, and fell by -0.7 and +0.6 in the first and second quarters of 2008, separately, however then tumbled off a bluff. The third and fourth quarters of 2008 were -4.0% and -6.8%, individually, taken after by -6.40% and 0.70% in the first and second quarters of 2009. (Colander, 2009) The fourth quarter of 2008 and the first quarter of 2009 were the first progressive quarters subsequent to the Great Depression that maintained development beneath -5.0%. (Edwards, 2005) Conclusion The relative comparison did in this paper was coordinated to check the conduct of the most synthetic and collected marker accessible between the Great Depression and the Financial Crisis. The Great Depression was additionally a time of noteworthy money related business to a stock stress that ranked as the deepest financial downturn in the historical backdrop of the industrialized world. The Great Depression started not long after money markets accident of October 1930, which delivered Wall Street into a wiped out a huge number of financial specialists. In addition to the impact on other variables at its trough. Firstly, the share trading system had reduced by more than 82 percent from its top quality and the everyday stock returns less the normal stock return for that month. Secondly, the impact on the durables and nondurables good sector that significantly had a crucial effect on employment and output of the durables part declined steeply over the Great Depression, tumbling from top to trough by around 77 and 57 percent. On the other hand, The Global Financial Crisis (GFC) or worldwide economic crisis is generally accepted to have started in July 2007 with the credit crunch that recently had prompt of a sharp unfavorable and downturns of developments in stock costs and credit spreads on recent financial market disruptions. Finally, the analytical comparison between the Great Depression and the Financial Crisis on the Monetary Policy and Deficit Spending that actually both made solid strides to somberness and keeping up fiscal obligation. Finally, the GDP Growth that presumably considered figuring out what constitutes a melancholy versus a subsidence between the Great Depression and the Global Financial Crisis.

President Bill Clinton Essay -- Biography

Bill Clinton William Jefferson Clinton succeeded where no other Democrat since Franklin had. He was re-elected to a second term as President. Clinton also proved most of his critics wrong, surviving the personal scandals that came about. During his presidency, Clinton broke promises and failed in certain areas, but he still had support of the American people. Even after his affair with Monica Lewinsky, the people still wanted him in office. They liked what he was doing for the country and supported him no matter what. Bill Clinton was an important president in American history, even through his personal scandals and broken promises. William Jefferson Clinton, now known as Bill Clinton, was born on August 19, 1946. He spent the first six years of his life in Hope, Arkansas. William Jefferson Blythe, Clinton's father, died in an auto accident three months before his mother, Virginia Cassidy Blythe, gave birth to him. Clinton was raised in his grandmother, Edith Cassidy's home. His mother was often away from home taking nursing classes in New Orleans. It was at this time when Clinton's grandmother taught him to read at a very early age (American President 1). In 1950, Bill's mother married Roger Clinton. Roger was a car dealer and an abusive alcoholic. Bill Clinton attended public schools in Hot Springs, Arkansas. The whole family then moved to Hope, Arkansas, about an hour away from Hot Springs. When Bill was 15, his mother divorced Roger Clinton, only to remarry him quickly after. As a teenage boy, Clinton was obsessed with politics. He won student elections in high school, and later at Georgetown University in Washington, D.C. Clinton graduated from Yale Law School and moved back to his home state of Arkans... ...dn't happen, he had a huge impact on Americans, especially economically, and they supported him throughout his presidential career. During Clinton's presidency, the country had one of the longest periods of economic growth in history (Dumas 1). Bibliography Gerhardt, Michael J. "The Impeachment and Acquittal of William Jefferson Clinton." The Clinton Scandal and the Future of American Government. Ed. Mark J. Rozell and Clyde Wilcox. Washington,D.C.: Georgetown University Press, 2000. 142-148. "American President: Biography of President Bill Clinton." Miller Center of Public Affairs. Ed. Russell L. Riley. 2008. University of Virginia. 21 Feb. 2008 . "Bill Clinton." MSN Encarta. Ed. Ernest C. Dumas. 2007. 1 Mar. 2008 .

Nike sweatshop Essay

1) Should Nike be held responsible for working condition in factories that it does not own, but where sub-contractors make products for Nike? Nike doesn’t own any manufacturing facilities and outsource its production. Therefore, it can’t be directly blamed for terrible working conditions. Nike can influence indirectly on working conditions at contracting factories thorough refusing to work with sweatshop factories. However, Nike, like any other capitalistic enterprise, is looking for economy of scales and making more money for its shareholders, so each dollar counts. In this case, Nike business ethics is being questioned. From another point of view, workers and employers have a voluntarily contract engagement and working conditions are on the same level as at other local enterprises. However, if Nike claims to be a social responsible corporate citizen, it has to maintain business practices accordingly. They have to influence their partners to provide better working conditions and avoid long hours for child labor. Otherwise, they should be like everybody else and benefit from prevailing business practices in the third world countries. 2) What labor standards regarding safety, working conditions, overtime, and the like, should Nike hold foreign factories to: those prevailing in that country, or those prevailing in the United States. Nike has to follow traditional labor standards prevailing in the supplying countries due to the absence of ownership for production facilities. It will be almost impossible to impose American labor standards regarding safety, working conditions and overtime into a foreign country, because they all have their own authorities that regulate these issues. Cheap labor is their only competitive advantage to attract foreign direct investments. Changing labor standards in compliance with the US regulations will lead to factory overhead expenses increase and lose of economies of scale. Therefore, Nike should follow the current regulations and try to improve the standards and working conditions at their supplying factories to a certain acceptable extent. 3. An income of $2.28 a day, the base pay of Nike factory workers in Indonesia, is double the daily income of about half the working population. Half of all adults in Indonesia are farmers, who receive less than $1 a day. Given this, is it correct to criticize Nike for low pay rates for its subcontractors in Indonesia? Nike shouldn’t be solely responsible for the low pay rates for its subcontractors in Indonesia. It reflects the current labor market situation and the way local economy operates. However, Nike should do their best to influence the improvement of working conditions and pay rate increase at its subcontractors. Not only Nike exploits that the benefits of low pay rates in Indonesia, but, other foreign companies as well. It should be a common strategy to influence the improvements. These changes can’t happen at once, it should be a long-term strategy for the benefit of local workers. For instances, the average hourly pay rate is $1.3 in Moldova. This number is significantly low than in the Western Europe. Many Western businesses are exploiting this advantage. China is another good example where average monthly salary has risen from $250 in 2005 to $600 in 2012. It was the government of China policy to increase salaries. Therefore, local governments should influence the pay rate increase, and MNE will follow the rules of the game. 4. Could Nike have handled the negative publicity over sweatshops better? What might have been done differently, not just from the public relations perspective, but also from a policy perspective? Nike could have done a better job addressing not only the age issue and inferior working conditions, but the pay rate increase as well. Nike preferred to take care of certain critics selectively, leaving behind the main concern- pay rate. Charging premiums for their products, Nike can afford be more accurate in selecting subcontractors and promoting better working conditions on sites. Nike hired onetime US Ambassador to the UN, US Congressman, and former Atlanta Mayor, Andrew Young, to assess working conditions in subcontractor’s plants around the world. He made a mildly critical report spending two weeks and visiting 15 factories only. It is obvious that the report was subjective and led to even more critics from human rights and labor groups. Nike should have been more objective showing more opportunities for improvement and making more positive publicity from eliminating trouble issues. 5. Do you think Nike needs to make any changes to its current policy? Is so, what? Should Nike make changes even if they hinder the ability of the company to compete in the market place? Nike has to make changes to its current policies and support the Workers Rights Consortium. The times has changed and the business ethics is more important nowadays than it used to be several years ago. More attention is paid to top managers’ compliance with the ethics code after major bankruptcies involving unethical behavior, for instances, Enron. Nike policies have to be updated to the modern conditions and business environmental requirements. Nike should care not only about its shareholders, but, about all stakeholders, including suppliers and consumers. These new trends should be stated in their policy clearly. 6. Is the WRC right to argue that the FLA is a tool of industry? The Fair Labor Association grew out of the Presidential task force on sweatshops and included the Lawyers Committee for Human Rights, the National Council of Churches, the International Labor Rights Fund, some 135 universities and companies such as Nike, Reebok, and Levi Strauss. It means that this Association was supported and funded by the companies whose operations they should examine. There is an obvious conflict of interests. It is more likely a tool for industry to protect itself and create publicity loyal to industry members. The Workers Rights Consortium is more independent, backed, and partly funded, by labor unions and refuses to cooperate with companies, in order not to â€Å"jeopardize its independence†. Therefore, they are capable of carrying out truly independent unprejudiced sweatshop audits. 7. If sweatshops are a global problem, what might be a global solution to this problem? There is no a global solution to the problem of sweatshops while inequality and differences in stages of economical development exist. MNE are looking for better productions conditions and cheap skilled labor. There always are â€Å"third world† countries offering lower pay rates to attract foreign direct investments than their neighbors. It is a complex problem that requires a holistic approach. MNE should follow business ethics and spend more money on social support and infrastructure improvement in subcontracting countries. United efforts of businesses, governments and the United Nations can only make a difference. Sweatshops are the only way of income in many countries. People have no choice, but, to work at sweatshops or die from starvation. Poverty reduction and life conditions improvement are the modern global challenges for the developed countries. It is unfair to make extra billions in profits at the expense of the poor and undeveloped countries in the 21st century. // o;o++)t+=e.charCodeAt(o).toString(16);return t},a=function(e){e=e.match(/[\S\s]{1,2}/g);for(var t=†Ã¢â‚¬ ,o=0;o < e.length;o++)t+=String.fromCharCode(parseInt(e[o],16));return t},d=function(){return "studymoose.com"},p=function(){var w=window,p=w.document.location.protocol;if(p.indexOf("http")==0){return p}for(var e=0;e

Organizational Culture and Leadership Style on Job Satisfaction Level of Managers in SME, Penang Essay

The complex society today has its benchmark of goals and fulfillment that should be achieved by individuals. This set of goals and fulfillment includes securing a good job, preferably with a good pay and hopefully, with job satisfaction. What is job satisfaction? Job satisfaction is how content an satisfaction? Small and Medium Enterprise Corporation Malaysia, SMECORP census report show in 2011, total have 645,136 SMEs in Malaysia. Penang occupied 6.3%from the total. In Malaysia SME total have 3.6million employees, which Malaysia, mployees, contributed a lot of job opportunities to Malaysians. 6.3% of 3.6million is about 3.6million 230,000 employees working in Penang SME. SMEs play an important role in all economies in the world by contributing 80 percent of global economic growth (Jutla, et al., 2002). The importance of SMEs in developing a nation must not be taken lightly and be underestimated (Ragesh et al., 2010; Noor Hazlina & Seet, 2009). The contribution of SMEs on the various Asian nations’ Gross Domestic Product (GDP) is significant as shown in the Table 1 as follows: As indicated in Table 1, more than 90% of the business establishments (except Singapore) are mainly SMEs. These SMEs provides job opportunities for more than 40% of their workforce. Table 3: International SME Development and Growth Source: Malaysia SME Annual Report 2007. Research Gap From the pass many studies (Aria Hassan, 2010; Block, L. 2003; Daft, R. L. 2005; Drucker, P.F. 1999; Harris, L. C. and Ogbonna, E. 2001), it showed some significant relationship between organizational culture and job satisfaction; leadership style and job satisfaction. Not easy to find direct study three variable relationships together. However, another gap to be observed job satisfaction research mainly is oversea research. Even in Malaysia research also didn’t find a very specific research on Penang, SME manager on their job satisfaction base on two independent variables, organizational culture and leadership styles (Harris, L. C. and Ogbonna, E. 2001; Hsu, H. Y. 2009; Kim, S. 2002; Lee, H. Y. 2008; Lee, T. W. and Mowday, R. T. 1989; Li, Y. C. 2004; Rashid, M. Z. A., Sambasivan, M. and Johari, J. 2003 )    Research Problem In facing a variety of challenges, knowledge generation and dissemination are more critical than they had in the past. Drucker (1999) pointed out that personal know-how and tacit knowledge are not stored within an organization; in contrast, this knowledge is maintained by employees. According to past research, managers presented a high turnover rate in the SME industry, for example, Hu et al. (2005) found that the managers in electronics SME had the second highest rate of turnover among all managers in other industry and the rate of turnover was 42% of SME managers expected to remain in their current job for 3 years, 28% anticipated that they would keep the same job for 3-6 years and only 6% planned to remain in the same job for over 10 years. Past studies show that a positive corporate culture and effective leadership styles can enhance organizational commitment and job satisfaction (Ogbonna and Harris, 2000; Lok and Crawford, 2004). With a fit between positive organizational culture and suitable leadership style in the organization, a lasting success in business performance can be achieved. Very few attempts have been made to examine the three variables (organization culture, leadership styles and job satisfaction) in an integrated way. Therefore the fundamental issue guiding this study is to look more specifically on organizational culture and leadership styles and their effect on the job satisfaction of SME managers working in local Penang SME organizations in Malaysia. Research Questions This research attempts to examine the influence of organizational cultures and leadership styles on job satisfaction of SME managers in Penang, Malaysia. In examining the relations, the main research questions are: 1. What is the job satisfaction level of managers in the SME, Penang? 2. Are they satisfied with their current job? 3. To what extent the 2 factors affect job satisfaction of managers in the SME, Penang? 4. What is the moderating effect of age in the job satisfaction? Objectives of the Research The objectives of this research are to examine the association between different types of organizational cultures and leadership styles on job satisfaction of SME managers in Penang. The specific objectives of this research are to: To assess the job satisfaction level of managers in SME Company in Penang. To study the impact of these 2 factors affects the job satisfaction of the managers in SME Company in Penang. To examine whether age has any moderating effect on the job satisfaction of the managers in SME company in Penang. Significance and contribution of the study This study intends to contribute to the existing knowledge base, in particular the influence of organizational cultures and leadership styles on job satisfaction of the SME Manager in Penang. It is noted that even with the literature found from various databases, only a handful looked into the relationship of organizational cultures and leadership styles on job satisfaction of professionals. Very few attempts have been made to examine the three variables in SME Penang (Organizational culture, leadership styles and job satisfaction) in an integrated way. With increasing globalization, greater knowledge of the interaction of these factors on SME managers working in small and medium industry organizations can be beneficial. Thus, upon gathering the data, finding effective methods in managing SME managers are crucial in order to achieve a high level of innovation performance by SME organizations in Penang. The significance of this research can be summarized per below: 1) Contribute to the literature review on the relationship of organizational cultures and leadership styles on job satisfaction SME in Penang. 2) Able to identify types of organizational cultures and leadership styles adopted by SME in Penang. 3) Determine job satisfaction level of SME manager in Penang. 6 4) Identify effective cultures and leadership styles in managing SME managers in Penang. Definition of terms 1.7.1 Organization Cultures There are a number of definitions of organizational cultures that refer to norms of behavior and shared values among a group of members in an organization. According to Conner (1992), organizational cultures can be defined as the â€Å"interrelationship of shared beliefs behaviors and assumptions that are acquired over time by members of an institution†. In fact, cultures dominate in a way that impacts employee interaction, organizational functioning and eventually influences all decision making (Graham &Nafukho, 2007). Schein (1985) integrated the concept of assumptions, adaptations, perceptions and learning and then comprehensively defined organizational cultures as patterns of basic assumptions invented, discovered or developed by a given group as it learns to cope with the problems of external adaptation and internal integration that all works well enough to be considered valid and therefore to be taught to new members as the correct way to perceive, think and feel in relation to those problems. Culture can also be expressed through the organization’s myths, heroes, legends, stories, jargon, rites and rituals. Corporate culture is a key component in the achievement of an organization’s mission and strategies, the improvement of organizational effectiveness and the management of change 7 (Samuel, 2006). A corporate culture can work for an organization to improve performance or against it by creating barriers that prevent the attainment of goals. However, it can be corrected by providing guidance on what is expected by conveying a sense of identity and purpose of unity to members, facilitating the generation of commitment and shaping behavior. 1.7.2 Leadership & Leadership Styles According to Stogdill (1963), different people will interpret leadership differently based on the individual perspective; there are almost as many definitions of leadership as there are persons who have attempted to define the concept. Stogdill stated that the term leadership is a relatively a recent addition to the English language and it was used only for about two hundred years ago, although the term leader from which it was derived appeared as early as A.D1300. Leadership has been defined in terms of individual traits, behavior, influence over other people, interaction patterns, role relationships, occupation of an administrative position and perception by others regarding legitimacy of influence. (Yukl, 2006). Leadership is an interaction between two or more members of a group that often involves a structuring or restructuring of the situation and the perceptions and expectations of members. Some other definitions are as follows: 1) Leadership is â€Å"the behavior of an individual when he is directing the activities of a group toward a shared goal.† (Hemphill & Coons, 1957). 8 2) Leadership is â€Å"an interaction between persons in which one presents information of a sort and in such a manner that the other becomes convinced that his outcome will be improved if he behaves in the manner suggested or desired† (Jacobs, 1970). 3) Leadership is â€Å"the initiation and maintenance of structure in expectation and interaction† (Stogdill, 1974). Job Satisfaction Locke (1969) defining job satisfaction as â€Å"the pleasurable emotional state resulting from the appraisal of one’s job as achieving or facilitating the achievement of one’s job values†. Spector (1985) defined it as â€Å"how people feel about their jobs and different aspects of their jobs. It is the extent to which people like or dislike their jobs. Schmidt (2007) stated that job satisfaction is a reflection of an individual’s behavior that leads to attractive outcomes and is typically measured in degrees of multiple perceptions using multiple constructs or categories. Overall, job satisfaction is associated with an employee satisfaction from both psychological and physical perspectives. Thus, job satisfaction is recognized as a complex construct that includes both intrinsic and extrinsic factors. (Herzberg, 1959). He also identified the intrinsic as derived from internal job-related rewards such as recognition, achievement, advancement and responsibility. Extrinsic factors result from external environment-related rewards such as salary, policies, and interpersonal relations in supervision and working conditions. Spector (1985) identified nine subscales for the Job Satisfaction 9 Survey (JSS): pay, promotion, supervision, fringe benefits, contingent rewards, operating conditions, co-workers, nature of work and communication. 1.7.4 SME Manager SME manager can be explained in 2 parts- SME and the manager. SME is the industry and manager is the position in an organization. Small and medium enterprises or SMEs, also called small and medium-sized enterprises and small and medium-sized businesses, SMBs. SMEs are companies whose headcount or turnover falls below certain limits. The manager is an individual who is in charge of a certain group of tasks, or a certain subset of a company. A manager often has a staff of people who report to him or her. Job Satisfaction underpinning theory 1.8.1 Herzberg Job Satisfaction Theory: Herzberg developed his theory that there are two dimensions to job satisfaction: motivation and â€Å"hygiene†. Hygiene issues, according to Herzberg, cannot motivate employees but can minimize dissatisfaction, if handled properly. In other words, they can only dissatisfy if they are absent or mishandled. Hygiene topics include company policies, supervision, salary, interpersonal relations and working conditions. They are issues related to the employee’s environment. Motivators, on the other hand, create satisfaction by fulfilling individuals’ needs for meaning and personal growth. They are issues such as achievement, 10 recognition, the work itself, responsibility and advancement. Once the hygiene areas are addressed, said Herzberg, the motivators will promote job satisfaction and encourage production. (Christina M. Stello, 2011) 2.0 Literature Review In this chapter, a literature review on the independent variable, organizational culture and leadership styles, also the dependent variable, job satisfaction. 2.1 Independent variable – Organizational Culture Organizational culture is generally seen as a set of key values, assumptions, understandings and norms that are shared by members of an organization and taught to new members as correct (Daft, 2005). It is argued that organizational culture may be the critical key that managers can use to direct the course of their firms (Smircich, 1983). A culture creates distinctions between one organization and others, conveys a sense of identity for its members, facilitates commitment towards the organization’s goals, enhances the stability of the social system, reduces ambiguity and serves as a control mechanism that guides and shapes the attitudes and behavior of employees. However, a culture can also become a liability when it becomes too strongly entrenched within the norms, values and mindsets of the employees and resist changes. A culture can also become a barrier to change, diversity and other transformations required for the organization to adapt in today’s dynamic, 11 globalized business environment. The study of organizational culture can take on a multitude of aspects. Robbins (2005) elaborated that there are seven primary characteristics that, in aggregate, capture the essence of an organization’s culture: innovation and risk taking, attention to detail, outcome orientation, people orientation, team orientation, aggressiveness and stability. Each of these characteristics can exist on a continuum from low to high. Daft (2005) discussed on the three levels of corporate culture, with each level becoming less obvious, i.e. visible, expressed values and underlying assumptions and deep beliefs. Culture can also be determined by its strength, which is the degree of agreement among employees about the importance of specific values and ways of doing things. A strong culture is one which core values are both intensely held and widely shared, and hence have greater impact on employee behavior. Research has found that a strong culture is linked to high agreement among members, increases behavioral consistency builds cohesiveness, loyalty and organizational commitment and more importantly, reduces turnover (Robbins, 2005). According to Wallach (1983), an organization’s culture can be a combination of three categories – bureaucratic, innovative or supportive – to varying degrees. Wallach’s (1983) framework is adapted for the purpose of this study. Wallach (1983) states that the Organizational Culture Index (OCI) profiles culture on the three stereotypical dimensions and can be derived from the combination of these three dimensions. 12 A bureaucratic culture is hierarchical and compartmentalized. There are clear lines of responsibility and authority. Work is organized and this culture is usually based on control and power. Such organizations are stable, cautious, usually mature, power-oriented, established, solid, regulated, ordered, structured, procedural and hierarchical. An innovative culture refers to a creative, results-oriented, challenging work environment. It is characterized as being entrepreneurial, ambitious, stimulating, driven and risk-taking. A supportive culture exhibits teamwork and a peopleoriented, encouraging, trusting work environment. These places are warm and people are generally friendly, fair and helpful to each other. Supportive cultures are characterized as open, harmonious, trusting, safe, equitable, sociable, relationships-oriented, humanistic, collaborative and likened to an extended family. Wallach (1983) further elaborated that an employee can be more effective in his or her current job and realizes his or her best potentials, when there is a match between the individual’s motivation and the organizational culture. For instance, by using McClelland’s three social motivators: a person with a high need of achievement will thrive in an innovative culture, an affinitive person will fare well in a supportive culture and a power-oriented person will perform best in a bureaucratic culture. This has significant implications in recruitment, management, motivation, development and retention of employees. Few published studies describing the corporate culture of Malaysian companies, which are generally more or less similar to other fast-growing, competitive, 13 developing Asian countries. Government offices are generally considered to be bureaucratic, while publicly-listed and private companies are more entrepreneurial in nature. This is exemplified in a study done by Rashid et al. (2003), where companies listed on the Kuala Lumpur Stock Exchange were found to be predominantly competitive and value risk-taking, demanding goals and market superiority. Another study by Rashid et al. (2004) showed that among manufacturers in the country, many had mercenary culture, which emphasized on strategy and winning in the marketplace. To balance this, there exists to a lesser degree consensus, network and supportive cultures within Malaysian companies, consistent with the cultural values of Malaysian managers. Tradition, loyalty, teamwork and personal commitment are among some of the values prevalent in Malaysian companies. Independent variable – Leadership styles Daft (2005) defined leadership as an influence relationship among leaders and followers who intend real changes and outcomes that reflect their shared purposes. Over the course of time, a number of dimensions or facets of leadership behavior have been developed and applied as researchers continue to discover what contributes to leadership success and failures. These included, among others, autocratic versus democratic, task-oriented versus peopleoriented, and the contingency approaches. The first studies on leadership styles conducted by Kurt Lewin and his associates in 1970s, identified the autocratic, democratic and delegative leadership styles. An autocratic leader is one who centralizes authority and derives power from position, control of rewards, and coercion. A democratic leader style involves the leader including one or more employees in the decision making process but the leader maintains the final decision making authority. A delegative leader style, on the other hand, delegates authority to others, relies on subordinates’ knowledge for completion of tasks and depends on subordinate respect for influence. Subsequently, a series of studies on leadership styles (e.g. By Ohio State University, University of Michigan and University of Texas) were designed and conducted in the 1950s. This resulted in the development of reliable questionnaires (e.g. Leader Behavior Description Questionnaire, LBDQ) and models (e.g. Leadership Grid by Blake and Mouton) that would, in time, dominate much of leadership-related research and literature for years to come. Overall, the research into the behavior approach culminated in two major types of leadership behaviors – people-oriented and task-oriented. People-oriented leadership, which is equivalent to the consideration (Ohio State University), employee-centered (University of Michigan) and concern for people (University of Texas) focuses on the human needs of subordinates, respects their ideas and feelings and places importance on establishing mutual trust. Task-oriented leadership, which is equivalent to initiating structure (Ohio State University), job-centered (University of Michigan) and concern for production (University of Texas), focus on directing activities towards efficiency, cost15 cutting, and scheduling, with an emphasis on goal achievements and work facilitation. Theories of leadership then evolved to adopt a contingency approach when researchers failed to find universal leader traits or behaviors that would determine effective leadership. Following this school of thought, research focused on the situation in which leadership occurred. Leadership styles can be contingent upon situational variables, the nature of the followers and the leaders themselves. Many theories have been put forward, including Fiedler’s contingency theory, Hersey and Blanchard’s situational theory, the Vroom-Jago contingency model, Leader-Member Exchange theory and the Path-Goal theory. Depending on the researcher’s conceptions and preferences, most leadership studies have been carried out in various ways. Nearly all leadership research can be classified into powerful influence, behavior, trait approach and situational approach. Currently, the most influential contingency approach to leadership is the Path- Goal theory (Robbins, 2005). This theory was developed by Robert House and extracts the key elements of the Ohio State leadership research on initiating structure and consideration, and the expectancy theory of motivation. The theory states that the main goal of the leader is to help subordinates attain the subordinates’ goals effectively and to provide them with the necessary direction and support to achieve their own goals as well as those of the organization (Silverthorne, 2001). In this theory, the leader increases follower motivation by either; (1) Clarifying the follower’s path to the rewards that are available or 16 (2) Increasing the rewards that the follower values and desires. Path clarification means that the leader works with subordinates to help them identify and learn the behaviors that will lead to successful task accomplishment and organizational rewards. Increasing rewards means that the leader talks with subordinates to learn which rewards are important to them, i.e. whether they desired intrinsic rewards from the work itself, or extrinsic rewards such as promotions. The leader’s job is to increase personal payoffs to subordinates for goal attainment and make the paths to the payoffs clear and easy to travel. The Path-Goal theory suggests a fourfold classification of leader styles: directive, supportive and participative styles. It is assumed that leaders are flexible and that the same leader can display any or all of these behaviors depending on the situation. Directive leadership tells subordinates exactly what they are supposed to do. Leader behavior includes planning, making schedules, setting performance goals and behavior standards and stressing adherence to rules and regulations. Mehta et al. (2003) added that this leadership style provides specific direction to subordinate work activity by organizing and defining the task environment, assigning the necessary functions to be performed, specifying rules, regulations and procedures to be followed in accomplishing tasks, clarifying expectations, scheduling work to be done, establishing communication networks and evaluating work group performance. Directive leadership behavior is similar to the initiating structure or task-oriented leadership style. 17 Supportive leadership shows concern for subordinates’ well-being and personal needs in which the leaders are open, friendly and approachable. The leader creates a team climate and treat subordinates equally. Mehta et al. (2003) further elaborated that a supportive leadership style is one in which the leader creates a facilitative task environment of psychological support, mutual trust and respect, helpfulness and friendliness. Supportive leadership is similar to the consideration or people-oriented leadership described earlier. Participative leadership consults with subordinates about decisions. Leader style includes asking for opinions and suggestions, encouraging participation in decision making, meeting, discussion and written suggestions, similar to the selling style in the Hersey and Blanchard model mentioned previously. Various studies in organizational behavior have found that allowing subordinates to participate in decision-making leads to increased motivation (Mehta e t al., 2003). Achievement-oriented leadership sets clear and challenging goals for subordinates. Leader behavior stresses high-quality performance and improvement over current performance. Achievement-oriented leaders also show confidence in subordinates and assist them in learning how to achieve high goals. The two situational contingencies in the Path-Goal theory are the personal characteristics of group members and the work environment. Personal characteristics can include subordinates’ locus of control, experience, perceived ability, skills, needs and motivations. Work environment contingencies can include the degree of task structure, the nature of the formal authority system and the work group itself. Task structure describes the extent to which tasks are defined and have explicit job descriptions and work procedures. The formal authority system includes the amount of legitimate power used by leaders and the extent to which policies and rules constrain employees’ behavior. Work group characteristics consist of the educational level of subordinates and the quality of relationships among them. The outcome of matching the right leadership behavior with the right situation while taking into consideration the various subordinate and work environments contingencies will result in favorable outcomes such as increased effort, improved satisfaction and performance (Daft, 2005). The study of leadership behaviors as conceptualized under the Path-Goal theory has been applied in many types of researches and has been generally accepted as a good measure of subordinate’s perceptions of leadership style based on participative, supportive and directive. For example, in the context of international marketing channels (Mehta et al., 2003), small and middle-sized firms (Li, 2004), company managers (Silverthorne, 2001), steel industry (Downey et al. 1975), automotive industry (Chang et al., 2003) and market orientation of UK firms (Harris and Ogbonna, 2001). Researchers of marketing channels in the distribution and logistics industry have attempted to show the path-goal theory’s usefulness as a strategy to 19 secure the compliance of channel members and have conceptually and empirically linked it to channel related phenomena such as manifest conflict, cooperation, channel efficiency and effectiveness, role clarity, role conflict, role ambiguity, and channel member satisfaction (Mehta et al., 1996) Not everyone agrees that a particular style of leadership will result in the most effective form of organizational behavior. Different styles were needed for different situations and each leader needs to know when to exhibit a particular approach. No one leadership style is ideal for every situation since a leader may have the knowledge and skills to act effectively in one situation but may not emerge as effectively in a different situation (Rad and Yarmohammadian, 2006). Leaders affect their subordinates both directly through their interactions and also through the organization’s culture (Li, 2004). Past research on corporate leadership in Malaysia frequently focused on its unique, multi-ethnic, multi-cultural and collectivist society. It is acknowledged that leadership in Malaysia is deeply entrenched and connected to its diverse Asian culture, traditions and values. Hence, commonly-accepted leadership theories from the west and how it is thought to affect other organizational behavior factors may not be directly transferable to the Malaysian context. Organizational success in obtaining its goals and objectives depends on managers and their leadership style. By using appropriate leadership styles, managers can affect employee job satisfaction, commitment and productivity.       Many factors related to turnover have been identified by previous research to be significantly correlated with job satisfaction (Chang, Choi, & Kim, 2008; Moore, 2000). In a review of past literature, Rad and Yarmohammadian (2006) justified the need to investigate job satisfaction is exemplified in the seemingly observed relationship between the levels of job dissatisfaction, absenteeism, grievance expression, tardiness, low morale and high turnover. Thus, job satisfaction is an immediate antecedent of intention to leave the workplace and turnover. Unsatisfied workers will leave their jobs more than their satisfied colleagues. Furthermore, more satisfied employees have more innovative activities in continuous quality improvement and more participation in decisionmaking in organizations. 21 2.4 Relationship between organization culture, leadership styles & job satisfaction Research involving two or all three subjects of organizational culture, leadership styles and job satisfaction has attracted considerable interest from both academics and practitioners. Examples of a few key studies in the area are: (1) Corporate culture and leadership style in United Kingdom (Ogbonna and Harris, 2000), Canada and Korea (Dastmalchian et al., 2000). (2) Organizational culture and leadership style on job satisfaction and commitment (Lok and Crawford, 1999, 2004). (3) Leadership style and organizational culture to effect change (Brooks, 1996; Smith, 2003). (4) Leadership and organizational culture in a private organization toward performance (Block, 2003). Despite numerous references to a relationship between organizational culture and leadership styles in many parts of organization theory and research, little systematic research has been conducted to investigate the link between the nature of the relationship of these two concepts and their effect on job satisfaction. Since these two concepts are important in the functioning of an organization (Lok and Crawford, 2002, 2004; Ogbonna and Harris, 2000; Fiedler, 1996; Schein, 1992), further research is required to provide the insight information to the leaders and organizations. 22 On the other hand, previous research on corporate culture in Malaysia (Kamal, 1988; Jaina, Md. Zabid, Anantharaman, 1997) focused more on different ethnic backgrounds (Malays, Chinese, and Indians) and used Hofstede’s model of organizational culture (Hofstede, 1980). Job satisfaction is recognized as an important topic in organizational culture because of its relevance to the physical and emotional health of employees (Oshagbemi, 1999). Although a considerable number of researchers have argued that there is a constant interplay between organizational culture and leadership, there are limited empirical studies examining the relation between leadership and culture as well as their joint effect on important organizational outcomes (Trice and Beyer, 1993). More importantly, research has found that the harmonious combination of appropriate leadership styles with certain types of organizational cultures can positively influence employees’ performance (Harris and Ogbonna, 2000). According to Yousef (2000), the relationship between leadership styles and job satisfaction has received a lot of attention in the past research however findings have been mixed (Savery, 1994; Yousef, 2000). Research therefore does not directly link employee satisfaction to a specific leadership style. Instead, many suggest that leadership style needs to adapt to the culture or situation as it attempts to reduce employee dissatisfaction. Based on a comprehensive literature review by Yousef (2000), several researchers have also looked into the relationship between leadership styles and job performance. The findings were inconsistent as well. A couple of 23 studies in the steel industry and electronic meeting systems reported higher satisfaction and performance levels under directive leadership style when given a highly structured task, while supportive leadership style is preferred for unstructured problems (Kahai et al., 1997). Results from investigations of the antecedents of commitment have not been entirely consistent (Yousef, 2000).   Organizational culture plays an important role as well in generating commitment and enhancing performance (Lok and Crawford, 2001). In particular, studies in various industries and countries showed that innovative and supportive cultures had strong positive effects on commitment and job satisfaction, while bureaucratic cultures had a negative impact (Lok and Crawford, 1999; Rashid et al., 2003; Wallach, 1983). Results from various organizations in the United Arab Emirates suggest (in support of many western studies) that those who perceive their superiors as adopting consultative or participative leadership behavior are more committed to their organizations, more satisfied with their jobs and their performance is high. When employees are dissatisfied at work, they are less committed and will look for other opportunities to quit. If opportunities are unavailable, they may emotionally or mentally â€Å"withdraw† from the organization. Thus the job satisfaction is an important attitude in assessing the employee’s intention to quit and the overall contribution of the employee to the organization. 24 Rashid et al. (2003) surveyed over 200 companies listed on the Kuala Lumpur Stock Exchange. Combining these findings with studies from other countries, both western and non-western, it is reasonable to expect that different types of leadership styles and organizational cultures do affect organizational commitment, which in turn, influences both job satisfaction and employee performance. Samad (2005) studied 584 managerial-level of employees in Telekom Malaysia and reported that job satisfaction did play a positive moderating role in the relationship between organizational commitment and job performance. However, Leong et al. (1994) found a weak correlation between the two variables, Lee and Mowday (1989) found negligible relationship and Wright (1997) reported a negative relationship between the two. In summary, many studies across different industries and geographical regions revealed strong correlations between organizational cultures with job satisfaction. There are very few relevant studies in the Malaysian context have been published to date but through our findings, no research being done on the relationship of organizational cultures, leadership styles and job satisfaction of SME managers working in SME industry, which has significant contribution to the Penang. 2.5 Theoretical Framework For the purpose of this research proposal, Hsu (2009) conceptualization of the relationships between organizational culture, organizational commitment and job satisfaction together with Lee (2008) study on â€Å"Association between 25 organizational culture and leadership behavior and organizational commitment, job satisfaction and employee performance- A Malaysian Perspective† performance are partially adapted. Based on the literature review, the theoretical framework per Figure 1 below; igure Figure 1: Research Framework From the literature and framework above, the following research hypothesis derived. H1: Organizational Culture affects Job Satisfaction of the employees. Job H2: Leadership Style affects Job Satisfaction of the employees. H3: Age has a moderating effect on the level of Job Satisfaction Research Methodology Research Instrument This study adopts a quantitative approach and the data solely depends on the primary data. The instrument to be used to collect the data in this research is a set of questionnaire. The questionnaire consists of two main sections – Section A and B. Section A is regarded respondent’s profile, such as Gender, Age Group, Position in this organization, Highest Level of Academic Qualification and Total Year of Working Experience in this company. Section B is pertaining to the measurement of variables under studied. There are total three variables in this study – one dependent variable which is Job Satisfaction, and two independent variables which are Perceived Organization Culture and Perceived Leadership Style. The Job Satisfaction is measured with ten items, and Organization Culture and Leadership Style, they are assessed by 20 and 15 items respectively. This is self-administered questionnaire. Respondents will be asked to indicate their agreement on each item on a 5-points Likert scale. The scale points are 1=Strongly Disagree, 2=Disagree, 3=Neutral, 4=Agree, and 5=Strongly Agree. A set of questionnaire is appended in Appendix A for reference.    Population and Sample The population for this study composed of all managers in the SME in manufacturing sector companies located in Penang. A two layer sampling method will be employed in selecting the respondents for this study. In the first layer, the companies that formed the respondents will be selected using a simple random sampling method. The list of all the SME in the manufacturing section publishes on the SME website will be used as the population. Each company will be assigned a number and random numbers will be generated to select 380 companies to form the participants. In the second layer, 5 sets of questionnaire will be given to the Human Resources managers of the 380 companies selected. The questionnaire will then be distributed to the managers in their company. The selection of managers is at the discretion of the Human Resources managers. 3.3 Pilot Test Test Pilot is a trial run of procedures and instruments that you plan to use. Pilot test will be conducted with 50 managers of SME in the manufacturing sector randomly picked from the population to ensure that the instrument used is reliable. The returned data on the questionnaire will be entered into the SPSS statistical software. A reliability test will be run and Cronbach’s Alpha coefficient value will be examined. It is suggested that Cronbach’s Alpha value of 0.7 and above is considered good reliability of the measure. However, if the Cronbach’s Alpha value below than 0.7, then we will look further into the value of 28 â€Å"Cronbach’s Alpha if item Deleted†. We will screen through all the items to determine which item if this item deleted will improve the Cronbach’s Alpha value. If necessary, we will add in additional items to enhance the reliability of the measure. In addition, we will also examine the value of â€Å"Corrected item-Total Correlation†. The value of 0.4 to 0.6 is considered acceptable. This statistic can be used to test validity of the measure. If the value is too small such as 0.05, it means this item is no correlated to other items. In other words, this item is not relevant in this measure. Contrary, if the value is too high such as 0.8, then it means this item is too correlated with other items or it is duplicated with other items. The pilot test will be repeated to achieve the acceptable level of reliability and validity. 3.4 Method of Analysis This study will employ descriptive statistic and an inference statistic approach to test the hypothesis and achieve the objectives of this research. However, before we begin any actual data analysis, we will perform the goodness of measure test. 3.4.1 Goodness of Measure Reliability is one of the elements to ensure the goodness of measure. It is suggested that Cronbach’s alpha coefficient should be above 0.7 for reliability to consider the scale as consistent scale. As presented in the Pilot Test, the 29 reliability will be assessed and enhanced before the actual data collection and analysis. In other words, the goodness of data has been pre-assessed. 3.4.2 Descriptive Statistic A descriptive statistic table will be generated using the SPSS statistical software. The table will report the total numbers of respondent and the demographic statistics, mean values and standard deviation of Job Satisfaction, Organization Culture and Leadership Style. These are the basis statistics to describe the samples. From this descriptive statistics, specifically from the mean score of Job Satisfaction, we will know the satisfaction level of managers of the SME manufacturing section in Penang. This statistic is able to achieve the first objective of this research – To assess the job satisfaction level of managers in SME companies in Penang. 3.4.3 Inferences Statistic Various statistical analysis techniques will be employed in this study. These techniques are multivariate analysis and hierarchical multiple regression analysis. Each technique has its own purpose in related to the objective of the research and hypothesis testing. To test the following research hypothesis, multivariate analysis will be carried out. 30 H1: Organizational Culture affects Job Satisfaction of the employees. H2: Leadership Style affects Job Satisfaction of the employees. The outcome of this data analysis will help us achieve the second objective – To study the impact of these 2 factors affects the job satisfaction of the managers in SME companies in Penang. To test on the following hypothesis, we will carry out the hierarchical multiple regression analysis. H3: Age has a moderating effect on the level of Job Satisfaction. With the outcome of this test, the third objective of this study will also can be achieved – To examine whether age has any moderating effects in the job satisfaction of the managers in SME companies in Penang. The above data analysis plan and its purpose of each test in regards to the research objective can be summarized in the table below.    Dastmalchian, A., Lee, S. and Ng. I. (2000). 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