Herzberg’s Motivation-Hygiene Theory and Job Satisfaction in the Malaysian Retail Sector

Asian academy of Management journal, Vol. 16, No. 1, 7394, January 2011 HERZBERGS MOTIVATION-HYGIENE THEORY AND JOB bliss IN THE MALAYSIAN RETAIL SECTOR THE MEDIATING EFFECT OF LOVE OF cash Tan Teck-Hong* and Amna Waheed Sunway University, School of Business 5, Jalan Universiti, Bandar Sunway 46150 Petaling Jaya, Selangor, Malaysia * Corresponding author e turn onprotected edu. my ABSTRACT This report card examines what motivates employees in the retail industry , and examines their take aim of occupancy gladness, using Herzbergs hygienics reckons and motivators.In this survey, convenience sampling was utilise to select gross revenue personnel from womens garments come ins in Bandar Sunway shopping midpoint in the state of Selangor. The leads channelise that hygiene factors were the dominant motivators of sales personnel origin gaiety. resolveing conditions were the approximately world-shaking in motivating sales personnel. Recognition was back up, fol fun kyed by partnership polity and requital. There is a need to delve more than deeply into why sales pack coiffe such(prenominal) a graduate(prenominal) magnificence on bullion.Further analytic thinking was coiffureed to assess how much the cut of coin mediates the kin amongst earnings and stock cheer. Based on the command rivulet for mediation, the whap of specie could formulate the descent betwixt requital and barter gaiety. The main tax write-off of this study is that sales personnel who foster bullion senior juicyly be cheery with their salary and farm break when they father a raise. Keywords Herzbergs motif-hygiene gambol rejoicing jazz of silver, intercessor, cook up delight, retail, MalaysiaINTRODUCTION This paper explores the way turn up of demandal unsettleds on the chew over triumph of sales sight in the Malayan retail field. Retail is crucial to the economies of just about countries, mainly because of its large scale at all takes topical anaesthetic, national and flat international. The retailing sector in Malaysia has undergone continuous and epoch-making change everyplace the last few decades. New facilities ranging from superstores to retail w atomic number 18houses withstand widened the retail grace (Market Research, cc9).Retail has become one of the most dynamic sectors of the Malayan economy because it is not on the whole employs 20% of Malaysias entire population, but is in any(prenominal) case the second largest ratifier to the national GDP, Asian Academy of Management and Penerbit Universiti Sains Malaysia, 2011 Tan Teck-Hong and Amna Waheed contributing active US$ 35 billion in 2009, with a projection of US$ 58 billion in 2014 (PwC, 2009). Tourism abides greatly to Malaysias retail sales set outth, as shopping revenue, which totalled US$ 4. 6 billion in 2008 (Market Research, 2009), is the second highest component of the countrys tourism revenue.Thus, the retail industry is considered to be a squ be contributor to the growth, economy and stability of Malaysia. The retail industry is subject to motley problems and challenges. First, intense competition has resulted in price wars between foreign and topical anesthetic retailers. The majority of modern retail operations atomic number 18 foreign-owned and situated in urban atomic number 18as, whereas local stores dominate outside urban areas. Foreign retailers in Malaysia include Daily Farm ( freak), Tesco, Jaya Jusco, and intersection point. As reported by Bailey (2009), Giant has the greatest market share with 8%, follow by Tesco (4%), Jusco (3%) and Carre quadruplet (2%).Most local retailers are not geared to meet the challenges of globalization and do not consecrate sufficient hold upledge to compete with foreign retailers. Second, consumers these age prefer spacious shopping areas, attractive and trendy products, and ample position space preferences that are a major concern of many loca l retail stores as they attempt to combat competition. Third, consumer demands and shopping patterns are changing. Retailers are struggling to change their marketing strategy to suit consumer preferences. Malaysian shoppers wee-wee become more knowledgeable and discerning, and are ot easily exercised by advertisements and promotions. In addition to being price- and quality-conscious, and they overly care astir(predicate) the ser debility they buzz off in stores. match to ACNielsen (2006), 75% of customer purchase decisions are influenced by the helper the customer sop ups. With the expansion of the retail industry, the issue of how retailers strive to bring forth and retain their best staff becomes relevant. The effort and contribution of employees is a constitute competitive advantage and is crucial to the success of the firm (Bent Freathy, 1997).In any institution, be it in the retail industry or any former(a)(a) industry, it is master(prenominal) for steering to af fix doers productivity by allowing prepareers to achieve their maximum potential. tutelage sales people inspired is one of the most touchy tasks face up by retail transcriptions. In the retail sector, employees take hold a turn to impact on the customer, and the employee-customer sexual congressship is an valuable consideration in a companions success. gross salespeople deal directly with customers, so salespeoples views, behaviour, and how they treat customers volition determine whether customers ordain be loyal to a particular retailer.Companies spend millions of dollars every course of instruction recruiting, training and compensating their sales personnel in an effort to inspire them to perform well and thus increase companion profits (Susan, 2003). An unmotivated hands could lead to high sales force supervision costs, high absenteeism, and high turnover rates. In Malaysia, sales hypothesizes are far from 74 The mediating heart of honey of funds exciting, and the majority of retailers employ a large offspring of poorly paid parttime staff, which whitethorn contribute to low morale and high turnover.Organizations, regardless of their size, are facing retention challenges (Ramlall, 2004). Sempane (2002) mentioned that voluntary turnover is a major problem f or companies in Malaysia and that task-hopping has become a part of the countrys acculturation. This paper explores what motivates sales personnel in the retail industry, and explores their aim of muse rejoicing, using Herzbergs need-hygiene factor opening. Senior managers may benefit from the results of this search because they could alter their recognize system to better motivate their staff, which could lead to high reflect atisfaction and better cognitive operation. Based on previous seek, salary seems to be very of the essence(predicate) to salespeople. However, it is reasonable to believe that the results of such findings by diverse scholars may be over give tongue to. Therefore, further analysis has been conducted to examine whether there is a mediating variable touching the relationship between salary and line comfort. As pointed out by Tang, Luna-Arocas, Sutarso and Tang (2004), one such mediating variable is the love of capital. LITERATURE REVIEW Herzbergs motif-hygienics guess of MotivationAs pointed by roar (1964), the word pauperization is derived from the Latin word apparent movementre, which means to move. Motivation is an internal force, hooked on the needs that drive a person to achieve. Schulze and Steyn (2003) affirmed that in order to understand peoples behaviour at operation, managers or supervisors must(prenominal) be aware of the imagination of needs or motives, which will help move their employees to act. According to Robbins (2001), motivation is a needs-satisfying routine, which means that when a persons needs are squelched by certain factors, the person will exert spiffing effort toward attainin g organizational goals.Theories of motivation fecal matter be used to explain the behaviour and attitude of employees (Rowley, 1996 Weaver, 1998). The theories include content theories, ground on the guess that people have individual needs, which motivate their actions. Theorists such as Maslow (1954), McClelland (1961), Herzberg (1966) and Alderfer (1969) are renowned for their works in this field. In contrast to content theories, process theories identify relationships among variables which make up motivation and involve works from Heider (1958), Vroom (1964), Adams (1965), Locke (1976) and Lawler (1973).The main focus of this paper, however, is on Herzbergs theory of motivation. 75 Tan Teck-Hong and Amna Waheed Herzbergs motivation-hygiene theory, also known as the twain-factor theory, has received widespread attention as having a practical approach toward motivating employees. In 1959, Herzberg published his analysis of the sense of smellings of 200 engineers and accountant s from over nine companies in the United States. These professionals were asked to describe experiences in which they matt-up either extremely bad or exceptionally good about their professions and to rate their feelings on these experiences.Responses about good feelings are primarily cerebrate to strain content (motivators), whereas responses about bad feelings are associated with dividing line mise en scene (hygiene factor). Motivators involve factors built into the job itself, such as skill, apprehension, responsibility and advancement. Hygiene factors are extrinsic to the job, such as interpersonal relationships, salary, supervision and family form _or_ system of establishment (Herzberg, 1966). In the retail setting, Winer and Schiff (1980) have conducted studies using Herzbergs two-factor theory. They base that achievement was the highest rated motivator.Likewise, making more money received the second-highest rating in the study, followed by chances of promotion and recognition. In contrast, Lucas (1985) discovered that the supervisor-employee relationship was a fundamental factor influencing worker satisfaction in a study of U. S. retail stores, and two hygiene factors were reported as evidential, namely company form _or_ system of government and relationship with peers. Herzberg perceived motivational and hygiene factors to be separated into two dimensions affecting separate aspects of job satisfaction.This belief differed from the traditional approach of consider job satisfaction and dissatisfaction as opposite ends of the same continuum (Herzberg, 1966). Hygiene factors clog dissatisfaction but they do not lead to satisfaction. They are necessary save to avoid bad feelings at work. On the opposite hand, motivators are the veritable factors that motivate employees at work. The two-factor theory was tested by many other interrogationers, who showed very contrary results. Some research has shown that some of the factors declared by Herzberg (1966) as hygiene factors are truly motivators.The results of Herzbergs theory merchant ship falsify if the test is conducted in antithetical industries. The differences are due to the intensity of the tire out requirement and the duration of employment (Nave, 1968). Extensive commentary has emerged about how to divulge between hygiene factors and motivators. While some factors have proved to add up clearly in one of the two categories, other factors, particularly salary, have proven to be ambiguous as to whether they are motivators or a hygiene factors. 76 The mediating found of love of money railway line merriment ruminate satisfaction is classical to an organizations success. Much research has been conducted into ways of better job satisfaction of workers in various sectors of the Malaysian economy, including the academic sector (Wong Teoh, 2009 Noordin Jusoff, 2009), the hotel sector (Abd. Patah, Radzi, Abdullah, Adzmy, Adli Zain, Derani, 2009), the gover nment sector (Yahaya, A. , Yahaya, N. , Arshad, Ismail, 2009), the non-profit sector (Ismail Zakaria, 2009), the naval sector (Mohd. Bokti Abu Talib, 2009), and the automobile manufacturing sector (Santhapparaj, Srinivasan, Koh, 2005).There has been relatively little research into the determinants of job satisfaction in the retail sector using Herzbergs two-factor theory. Therefore, this paper endeavours to address this literature gap. Previous studies mostly assemble that job satisfaction is associated with salary, occupational stress, mandate, company and administrative policy, achievement, personal growth, relationship with others, and the overall work condition. It has been argued that an increase in job satisfaction increases worker productivity (Wright Cropanzano, 1997 Shikdar Das, 2003).As mentioned by Dunnette, Campbell and Hakel (1967) and Robbins (2001), job satisfaction is an emotional state in which a person perceives various features of his/her work or the wo rk environment. Therefore, job satisfaction has a major issue on peoples lives. Locke (1976) indicated that job satisfaction most comm but affects a persons sensible health, mental health and kindly brio. Moreover, Rain, Lane and Steiner (1991) wrote that job satisfaction is connected to life satisfaction, whereby people who are well-off with their jobs will tend to be happy with their lives as well, and vice versa.Coster (1992) supported the view that work can have on peoples lives. Furthermore, livestock and Breda (1997) indicated that job satisfaction may affect absenteeism, complaints, and labour unrest. Therefore, it is understood that satisfied workers will be much more productive and be bear within the organisation for a longer period, in contrast to displease workers who will be less useful and who will have a greater tendency to quit their jobs (Crossman, 2003). More importantly, satisfied workers not only perform better but also provide better service to customers, which could result in improving customer satisfaction.According to Dawson (2005), employee satisfaction is associated with positive employee behaviour. It is unquestionable that satisfied workers generate customers who are satisfied and loyal. It is assumed that motivation and satisfaction are very identical and that, in many cases, they are considered to be synonymous terms. According to Hersey and Blanchard (1988), motivation and satisfaction are rather different from each another in terms of reward and proceeding. The authors pointed out that motivation is influenced by forward-looking perceptions about the relationship 77 Tan Teck-Hong and Amna Waheed etween exercise and rewards, whereas satisfaction involves how people feel about the rewards they have received. In other words, motivation is a consequence of expectations of the future while satisfaction is a consequence of past events (Carr, 2005). Huselid (1995) believes that if workers are not motivated, turnover will inc rease and employees will become frustrated and unproductive. Various other researchers who have investigated motivation and job satisfaction support this statement (Maidani, 1991 Tietjen Myers, 1998 Robbins, 2001 Parsons Broadbridge, 2006).Under Herzbergs (1966) theory, workers who are satisfied with twain motivation and hygiene factors would be top performers, and those who are dissatisfied with both factors would be poor performers. Christopher (2005) found no support for this, and his research cogitate that Herzbergs results prove accurate only under his original methodology. Theories of worker motivation address a impersonate connecting job satisfaction, motivation and performance. Considerable richness is attached to these concepts, and there is a need for clarification on how satisfaction and motivation differ from each other.Job satisfaction is an emotional response go with actions or thoughts relating to work, whereas motivation is the process that activates behaviour . As satisfaction is an attitude, it is possible for a worker to be satisfied with his job but not be motivated. Hence, motivation and satisfaction are not synonymous with each other. It is decisive to clarify the distinction between the concepts so that it is easier to understand that motivation leads to satisfaction, which at long last leads to enhanced performance.The Role of Salary, the Love of Money, and Pay Satisfaction It is undeniable that sales managers forever and a day use high salary to attract, retain and motivate workers. Robbins (2001) pointed out that money can be considered as scorecard through which workers can assess how much an organization rate them. However, there have been quite a few nonconformist views on the role of salary. Kochan (2002) argued that money results only in temporary obedience from workers and that money does not transform workers attitude and behaviour in the long term.He pointed out that money only motivates workers to look further rewa rds and that, in the process, can undermine workers intrinsic interest in their jobs. Money may or may not motivate people. According to the contingency view, workers from different countries, age groups, income levels, career stages, and cultural backgrounds may rate the desire for money differently. As mentioned by Furnham (1994), the desire for money is rated high by young workers in Far easternmost and Middle East as discriminated with those in North America and South 78 The mediating import of love of moneyAmerica. Based on a study of 1,000 employees, Kovach (1987) showed that junior workers with low incomes are more concerned about money, whereas older workers with high incomes and management positions are motivated more by job security, interesting work and recognition. Under Maslows hierarchy of needs theory, salary is associated with the lowerlevel needs, such as physical and security needs. Maslow (1954) stat ed that once the lower-order needs are met, higher(prenom inal)(prenominal)-order needs will become most important. Thus, additional salary increases do not motivate employees any further.To improve job satisfaction and performance level of workers, managers must work on motivators by providing opportunities for career advancement and development, as workers value motivators more than hygiene factors (Ramlall, 2004). As indicated in most of the literature, salary plays an important role in motivating salespeople. However, the strength of the relationship between salary and job satisfaction may be influenced by a go-between. The mediator may serve to clarify and explain how and why such relationships occur. The concept of love of money was introduced by Tang et al. 2004), who argued that the love of money reflects an employees wants and determine, and stated that someone who values money highly will be satisfied with his salary and ultimately his job when he receives a desired raise. Sloan (2002) mentioned that a person never has enough mo ney and wants to have more money as having money is considered to be the most important goal in life. According to Lawler (1973), employees stand satisfaction usually influences their job satisfaction. Tang et al. (2004) found that grant satisfaction is a part of job satisfaction, which could lead to higher worker productivity. takeers are inspired to achieve more and to give spacious effort only if they are satisfied with their pay. Lawler (1973) reported that absenteeism can result when pay dissatisfaction is present. According to Mani (2002), workers who were absent from their works frequently were not satisfied with their pay, whereas 69% who were absent once or more in half dozen months were not satisfied with their pay. Based on the discussion above, there are two research questions for this paper. The first research question is to determine job satisfaction of sales personnel by using Herzbergs two-factor theory.The second research question is to assess whether the love of money mediates the relationship between job satisfaction and money. Research Question 1 Which of Herzbergs motivation-hygiene factors is valued more by salespeople in Malaysia? 79 Tan Teck-Hong and Amna Waheed Research Question 2 To what period does love of money mediate the relationship between money and job satisfaction? METHODOLOGY In this study, 180 sales personnel from womens vesture stores in the shopping mall of Bandar Sunway in the state of Selangor were administered a questionnaire later they had been selected through convenience sampling.Of the 180 questionnaires, 152 were found to be useful for analysis. The other 28 questionnaires contained incomplete entropy. The questionnaire, written in English, was handed to the salespeople at their place of work. Researchers did not ask permission from the store manager to conduct the survey. The questionnaire include a series of statements and the respondents were asked to indicate their degree of coincidement with each sta tement. Responses were scored on a five-point scale 1 for strongly disaccord, 2 for disagree, 3 for neutral, 4 for agree, and 5 for strongly agree.All questions used in the survey pertaining to determinants of job satisfaction were derived from Ewen, Smith, and Hulin (1966), Graen (1966), Sergiovanni (1966), House and Wigdor (1967), Lindsay, Marks, and Gorlow (1967), Maidani (1991), Pizam and Ellis (1999), Klassen, Usher, and reverberate (2010), and Tang et al. (2004). Linear regression analysis was performed to test the relationship between Herzbergs motivation-hygiene factors and job satisfaction. Further analysis was performed to assess to what extent the love of money mediates the relationship between money and job satisfaction.According to office and Kenny (1986), testing for mediation involves a four-step process. First, the relationship between the predictor variable and the cadence variable is examined to determine whether those two variables are tally. Second, the rela tionship between predictor and mediator variables were examined to determine whether those variables correlate. Third, the relationship between the mediator and the predictor on the criterion variable, controlling for the predictor, is assessed to establish the proceeding of the mediator on the criterion variable.Fourth, the effect of the predictor on the criterion variable, controlling for the mediator, is examined to determine whether the mediator completely or partially mediates the relationship between the predictor and the criterion variable. The make in both step 3 and 4 are estimated in the same equation to determine whether the beta levels change. If all four of these travel are fulfilled, then the mediator completely mediates the predictorcriterion relationship. If only the first terce steps are satisfied, then partial mediation is shown. 80 The mediating effect of love of moneyMotivation levels of participants were measured using the scales developed by Ewen et al. (19 66), Graen (1966), Sergiovanni (1966), House and Wigdor (1967), Lindsay et al (1967), Maidani (1991), and Pizam and Ellis (1999). For each factor, several questions were asked in order to compute an average and to enhance the trueness of the measure. A persons attachment to money was measured using ogdoad items and employees satisfaction with their pay was measured using three items. Both of those scales were espouse from Tang et al. (2004). Job satisfaction was measured using four items from Klassen et al. 2010) (see addendum 1). ANALYSIS AND RESULTS A dependableness test was performed to check the consistency and accuracy of the measurement scales. parry 1 shows that the results of Cronbachs coefficient important were satisfactory (between 0. 70 and 0. 84), indicating questions in each construct are measuring a similar concept. As suggested by Cronbach (1951) and Nunnally (1978), the reliability coefficients between 0. 700. 90 are generally found to be internally consistent. Table 1 Testing reliability with Cronbachs coefficient alpha The job satisfaction factors Number of items Cronbachs alpha Achievement (AC) 0. 70 Recognition (R) 3 0. 71 Advancement (AD) 2 0. 70 Work Itself (W) 3 0. 72 Growth (G) 3 0. 71 Company insurance (P) 3 0. 72 Security at Work (S) 3 0. 76 Relations with Peers (RP) 3 0. 80 Money Factor (M) 2 0. 84 Relations with Supervisor (RS) 3 0. 74 operative Conditions (WC) 2 0. 80 Love Of Money Scale (LM) 8 0. 84 Pay Satisfaction (PS) 3 0. 80 Job Satisfaction (JS) 4 0. 75 Table 2 shows the profile of respondents in terms of gender, age, ethnicity, education level, number of geezerhood of work experience, and monthly income. Of the 81 Tan Teck-Hong and Amna Waheed 152 respondents, 91 were men (59. %) and 61 were women (40. 1%). In terms of age, 73% of the respondents were between 15 and 24 eld of age, 22% in the 2535 age range, 3. 3% in the 3544 age range, and 1. 3% aged 45 and above. Most respondents were Chinese (46%), followed by Mal ays (32. 2%), and Indians (21. 3%). The education level of 76. 3% of the respondents was below an undergraduate degree. In terms of number of eld of work experience, most of the respondents had 5 geezerhood or less (79. 6%), followed by 610 years (16. 5%), and 10 years or above (3. 9%). As for the monthly income, 39. 5% of the respondents make between RM1,000 and RM2,000, 37. % earned less than RM1,000, and 23% earned RM2,000 and above. In this survey, respondents were generally young and had received only a primary or substitute(prenominal) education, which is quite similar to the profile of the respondents in the study of Parsons and Broadbridge (2006). Because about three-quarters of the respondents were less than 25 years old, the analysis may not be generalizable to the whole population of sales personnel. Older salespeople may differ from their younger colleagues in attitudes, beliefs, behaviour, and attributes related to motivation and job satisfaction. Table 2Characteri stics of the respondents Respondents characteristics Number Percentages staminate 91 59. 9% Female 61 40. 1% Gender suppurate 1524 111 73% 2535 34 22% 3544 5 3. 3% 45 and above 2 1. 3% Malay 49 32. 2% Chinese 70 46% Indian 32 21. 3% 117 76. 3% 35 23. 7% track down Education Below Bachelors degree Bachelors degree and above (continued) 82 The mediating effect of love of money Table 2 (continued) Respondents characteristics Number Percentages Years of envision 05 years 121 79. 6% 610 years 25 16. 5% 6 3. 9% Below RM1000 57 37. 5% RM10002000 60 39. 5% RM2000 and above 35 23% 10 and above IncomeTable 3 presents the correlation matrix of the motivational factors and job satisfaction. Work itself (r = 0. 271) and recognition (r = 0. 055) correlated in a statistically probative manner with job satisfaction at the 0. 01 level, while only achievement (r = 0. 135) was importantly correlated to job satisfaction at the 0. 05 level. As far as hygiene factors are concerned, company policy (r = 0. 017), relationship with peers (r = 0. 381), money (r = 0. 383), and functional conditions (r = 0. 376) were significantly and positively associated with satisfaction. Table 3 correlational statistics analysis Note * Correlation is significant at the 0. 5 level (1-tailed) ** Correlation is significant at the 0. 01 level (1tailed) Regression analysis was conducted to determine the relationship between Herzbergs two-factor theory and job satisfaction in Malaysia. To assess whether the regression analysis suffers from multicollinearity, the pas seul inflation factor (VIF) was calculated. As indicated in Table 4, all VIF values are less than 5, indicating there is no multicollinearity problem in the model. The results suggested that 54% of the variance in job satisfaction in Malaysia could be explained by Herzbergs motivational and hygiene factors. The F-ratio of 14. 0 83 Tan Teck-Hong and Amna Waheed (p = 0. 00) indicated that the regression model of work motivation and satisf action on the motivational variables assessed was statistically significant. The results also revealed that only four of the ten motivational variables were found to be significant in the Malaysian context. The analysis demonstrated that the most significant motivational variable of job satisfaction was the workings condition s, indicating that salespeople value most the working environment provided by sales managers. Recognition was the second significant factor, followed by company policy, and the money factor.Of four main motivational variables of salespeople in Malaysia, only recognition was a significant motivator. The evidence is sufficient to shut down that hygiene factors are more effective than motivators in motivating salespeople in Malaysia. Table 4 Regression analysis (Dependent variable Job Satisfaction) motivational factors B Std. error t VIF AC .063 R .241* .113 .563 1. 758 .100 2. 416 1. 543 AD .039 .089 .440 1. 637 W .067 .088 .759 1. 601 G .019 .091 .215 1. 736 . 215* P S RP RS M WC F .094 2. 283 2. 745 . 060 .085 . 702 2. 572 . 059 .060 . 984 1. 754 .073 . 191 1. 574 .199** .073 2. 711 1. 03 .262** .091 2. 888 1. 555 0. 14 14. 9 R2 .540 Adjusted R2 .504 Note *significant at the 0. 05 level (1-tailed) ** significant at the 0. 01 level (1-tailed) comparablely, the problem of multi-collinearity was addressed before performing mediation analysis. Again, VIF values are less than 5 for the variables of money (M), love of money (LM), and pay satisfaction (PS). As shown in Table 4, money was one of the significant factors in motivating salespeople in terms of job satisfaction. However, there is a need to delve more deeply into the reasons that salespeople place such high importance on money.To provide a clearer picture of the role of salary, the general test for mediation was performed to examine whether there is a mediating variable affecting the relationship between the money factor and job satisfaction. As indicated in literature, the love of m oney 84 The mediating effect of love of money may explain why there is a strong relationship between money and job satisfaction. Based on Tang et al. (1992), pay satisfaction was used in this study to indicate job satisfaction. As pointed out by Lawler (1973), pay satisfaction usually influences the job satisfaction of workers.Following Baron and Kenny (1986), mediation analysis was used to assess whether the love of money mediates the relationship between money and pay satisfaction. The results in Table 5 show that money was significantly and positively related to pay satisfaction (significant at lt 0. 01). The results of the regression test of money (predictor) on love of money (mediator) showed that money significantly correlated with love of money at the 0. 05 level. The results also showed that the effect of love of money (mediator) on pay satisfac tion (criterion) was significant at the 0. 05 level after controlling for the money variable (predictor).Finally, the effect of mon ey (predictor) on pay satisfaction (criterion), controlling for the love of money (mediator), was also statistically significant. As a result, it is reasonable to believe that the love of money may explain why there is a relationship between the money factor and job satisfaction among salespeople in the retail sector. In this survey, salespeople who value money highly are satisfied with their salary and job when they receive a desired raise. Table 5 Testing love of money (LM) as a mediator on the relationship between money (M) and pay satisfaction (PS) DV PS DV LM DV PS w/o mediator) (w mediator) B M t B t B t 0. 510** 7. 234 0. 137* 2. 496 0. 168* 2. 042 0. 21** 2. 638 LM Note *. significant at the 0. 05 level ** significant at the 0. 01 level) DISCUSSION This paper examines what motivates sales personnel in the retail industry in Malaysia and examines their level of job satisfaction as a result of Herzberg s hygiene factors and motivators. The first research question addresses whe ther motivators actually do lead to job satisfaction, as proclaimed by Herzberg in his study on sales personnel in Malaysia, and addresses whether hygiene factors contribute to job satisfaction. 5 Tan Teck-Hong and Amna Waheed The results obtained reveal that only four of the 11 determinants are found to be significant in the context of Malaysian retail workers. Contrary to the finding of Herzberg (1966), the analysis demonstrates that the strongest motivation factor with the highest deduction level on job satisfaction in the womens clothing store was the working conditions, which is a hygiene factor. It was observed that retail outlets in the surveyed mall are air-conditioned and have music playing and that salespeople deem the stores to be comfortable.In line with the findings of Winer and Schiff (1980) and Lucas (1985), recognition, company policy, and the money factor seem to be important factors in motivating sales personnel in this survey. Of four significant factors, only re cognition is a motivator as defined by Herzbergs two-factor theory. Therefore, it is observed that hygiene factors dominate the motivators in terms of job satisfaction among sales personnel in Malaysia. This observation is supported by Islam and Is mail (2008).They say that compared with American workers, Malaysian workers are generally more concerned about hygiene factors (money and working conditions) than about motivators (full appreciation of work done). Similar findings are also reported in Bangkok (Sithiphand, 1983) and Yemen (Al-Mekhlafie, 1991). This study observes the importance of money in the lives of sales personnel. The second research question examines whether the love of money mediates the relationship between money and pay satisfaction among employees in the retail sector. Similar to the findings of Tang et al. 2004), the love of money appears to be place as a mediator influencing the relationship between money and job satisfaction. Sales personnel generally are not the highest paid people in Malaysia, and they may experience pay compression even if they have been in service for a long time. CONCLUSIONS AND RECOMMENDATIONS Salespeople in Malaysia place greater emphasis on hygiene factors than motivators, namely working conditions, money and company policy. Among the motivators defined by Herzberg, only one recognition was found to be significant in this survey.The study also found that the love of money has a mediating effect on the relationship between money and job satisfaction. These findings suggest that any retail organization in Malaysia preparing a reward scheme may need to consider the four motivational factors of working conditions, recognition, company policy, and money and emphasize them over other motivational factors. Those four factors can be used to help improve job satisfaction, productivity and performance of salespeople.The main implication of this study is that sales managers and supervisors need to redeem salespeople hap py and take care of workers concerns and needs. Satisfied 86 The mediating effect of love of money salespeople will talk about how great their j ob is and they will perform better in their jobs. That will result in retailers making higher profits due to customer satisfaction. Additionally, if retailers improve working conditions, employee turnover will be lower, which, in turn, will reduce the healthy costs that retailers incur in training pertly salespeople.The importance of money to salespeople in the Malaysian retail sector is clearly shown in this study. Sales managers and supervisors should consider 1. Providing salespeople with a flexible working schedule 2. Linking the performance of salespeople with the inhibit financial rewards and incentives 3. Providing salespeople with opportunities to grow in their job In addition, the morale of salespeople can be improved if company policy toward salespeople is productive. A good policy can exert significant influence on how salesp eople perform their jobs.For example, a company needs to build a strong sales socialization as the first step to improving performance. Without the right sales culture, sales managers will not build a powerful sales force. In many smaller retail companies, the sales leader does not know how to build a sales force and relies heavily on hiring experient salespeople in the hope that they will build the company. In mid-size and large-size retailers, the typical culture is nothing matters but results. Most of these sales managers want results but they do not adequately train or motivate the salespeople.If a company develops a strong sales culture, sales leaders and salespeople can work together successfully to achieve the companys goals. The results discussed here indicate that workers can be concurrently intrinsically and extrinsically motivated. With that in mind, managers should use a mixture of methods including monetary rewards, praise and recognition to effectively motivate wor kers and promote job satisfaction. LIMITATIONS AND early RESEARCH Given the scarcity of empirical studies on the Malaysian retailing industry, there is a need to undertake more research addressing the motivations of sales personnel.Although quantitative research was used in this study, it is believed that qualitative research would be beneficial in helping to enhance our understanding of how salespeople are motivated. find employee behaviour and interviewing employees can enable researchers to gain insight that typically is difficult to acquire through quantitative analysis. The findings obtained from the questionnaire administered in this study are hold by the perceptions and opinions of the respondents. It is assumed that the respondents have answered the questions accurately and honestly. The findings 87Tan Teck-Hong and Amna Waheed apply only to sales personnel in Bandar Sunway in Selangor. This means that the results may not be generalizable to other regions in Malaysia. Fut ure research needs to obtain information relating to sales personnel in other regions of Malaysia to permit a relation of perceptions and expectations from salespeople throughout Malaysia. Additionally, further research could include a study analyze job satisfaction levels of salespeople in Malaysia and other countries. Another concern is that the questionnaires used in this study were available only in English.Although the respondents could understand English, it is recommended that in the future the questionnaire be translated into Malay, Chinese and Tamil to minimize the risks of misunderstanding and misinterpretation that might influence the results. It also must be noted that the research focuses only on Herzbergs theory. It is recommended that future research explore other factors of motivations such as feedback, leadership styles and employee confidence to see whether they could result in any increased variance in motivation and satisfaction. REFERENCES Abd. Patah, M. O. 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APPENDICES adjunct A Measurement scales of the study Factor Questions Motivators Achievement I am proud to work in this company because it recognizes my achievements I feel satisfied with my job because it gives me feeling of accomplishment I feel I have contributed towards my company in a positive manner Advancement I will choose career advancement rather than monetary incentives My job allows me to learn new skills for career advancement Work itself My work is electrifying and I have a lot of variety in tasks that I do I am empowered enough to do my jobMy job is challenging and exciting Recognition I feel appreciated when I achieve or complete a task My manager always thanks me for a job well done I receive adequate recognition for doing my job well Growth I am proud to work in my company because I feel I have grown as a person My job allows me to grow and develop as a person My job allows me to improve my experience, skills and performance Hygiene Factors Company policy The attitude of the administration is very accommodative in my company I am proud to work for this company because the company policy is favourable for its workersI completely understand the mission of my company (continued) 92 The mediating effect of love of money (continued) Factor Relationship with peers Questions It is voiced to get along with my colleagues My colleagues are helpful and friendly Colleagues are important to me Work security I believe safe working at my workplace I believe my job is secure My workplace is located in an area where I feel comfortable Relationship with supervisor I feel my performance has improved because of the support from my supervisor I feel satisfied at work because of my relationship with my supervis or My supervisors are strong and trustworthy leadersMoney I am encouraged to work harder because of my salary I believe my salary is fair Working conditions I feel satisfied because of the comfort I am provided at work Job Satisfaction I am satisfied with my job I am proud to work for my company because of the pleasant working conditions I am happy with the way my colleagues and superiors treat me I am satisfied with what I achieve at work I feel good at work Love of Money Money reinforces me to work harder I am motivated to work hard for money Money reflects my accomplishments Money is how we compare each otherMoney is a symbol of success for me Money reinforces me to work with more enthusiasm and vigor Money is attractive Money is an important factor in our lives Pay Satisfaction I am satisfied with my pay The pay I receive is appropriate for the work I do My pay is high in comparison to my colleagues pay for doing a similar job 93 Tan Teck-Hong and Amna Waheed Appendix B Conceptual regulate Advancement Work Itself Achievement Recognition Job/Pay Safisfaction Working Condition Growth Love of Money Policy Peer Relationship Work Security Supervisor Relationship Money 94