Md. Atikur RAHAMAN, Md.

Sayed UDDIN / Journal of Asian Finance, Economics and Business Vol 9 No 2 (2022) 0255–0260 255

Print ISSN: 2288-4637 / Online ISSN 2288-4645

doi:10.13106/jafeb.2022.vol9.no2.0255

The Effect of Promotion and Job Training on Job Satisfaction of

Employees: An Empirical Study of the SME Sector in Bangladesh

Md. Atikur RAHAMAN1, Md. Sayed UDDIN2

Received: September 15, 2021 Revised: November 20, 2021 Accepted: January 05, 2022

Abstract
SME sector’s success also depends on its employees’ job satisfaction as satisfied employees are likely to be more productive at the workplace
and positively enhance SME business performance. Small and medium firms are the heart of the economy, and employees are the main and
valuable asset for the SME firms. If SME business managers can increase employee satisfaction, then SMEs’ performance will also increase
in the future. Hence, the current study aims to determine the job satisfaction of SME employees by analyzing the impact of job training
(JT) and promotion (PRO) opportunities on employee job satisfaction. Purposive sampling is applied in the study, and 202 SME employees
have participated as sample respondents. The final sample size is n = 202. SPSS 26.0 version is used to analyze the hypotheses. The study
findings show that both job training (JT) and promotion (PRO) have a positive effect on SME employee job satisfaction. It does indicate
that SME managers need to provide necessary training programs and timely promotion to their current working employees to keep them
satisfied with their job. Promotion and effective job training will certainly enhance employees’ job satisfaction. The study has also offered
a few strategic implications for SME business managers.

Keywords: Job Satisfaction, Job Training, Promotion, SME, Bangladesh

JEL Classification Code: M48, M52, G20

1. Introduction order to achieve the target, the SME business managers

should determine different factors to create satisfaction
Job satisfaction is an employee’s attitude toward the levels of employees (Mefi & Asoba, 2021; Mefi & Asoba,
duties and responsibilities received by the management 2020; Almaamari & Husain, 2021; Asoba & Patricia,
(Oktem et al., 2020). It helps establish a sound environment 2021). Many studies have demonstrated that job security,
that encourages high employee participation (Ali et al., attractive compensation, job-related facilities, location of
2018; Baqir et al., 2020). The modern business world is the firm, working environment, flexible working schedule,
turbulent, complex, and competitive, and the success of peers relations, good performance appraisal process,
any business institution depends on satisfied employees goodwill of the firm, career opportunity, and employee’s
(Shuvro & Alam, 2020). So the organization desires to build autonomy impact job satisfaction. In addition, it is found
a strong connection with the employee (Afzal et al., 2021; that team spirit, working environment, promotion, bank
Ali et al., 2021; Batool et al., 2021; Ali et al., 2020). So in image, job security, job rotation, professional development,
empowerment, training and development, attractive salary,
and leadership impact job satisfaction (Chien, 2015). In the
First Author. Associate Professor, School of Management, Jiujiang
1
past studies, several factors were examined to determine
University, Jiangxi, China. Email: [email protected]
Corresponding Author. Senior Lecturer, Program of Sociology and
2 the job satisfaction of SME employees (Islam & Miajee,
Social Anthropology, Faculty of Social Sciences and Humanities, 2018). However, there is limited research on measuring the
Universiti Malaysia Sabah, Malaysia [Postal Address: Jalan UMS, impact of promotion and job training that helps to enhance
88400, Kota Kinabalu, Sabah, Malaysia]
Email: [email protected]
job satisfaction of SME employees. A good number of
studies have been conducted in the field of job satisfaction
© Copyright: The Author(s)
This is an Open Access article distributed under the terms of the Creative Commons Attribution in Bangladesh, but few of them are conducted in sectors
Non-Commercial License (https://creativecommons.org/licenses/by-nc/4.0/) which permits
unrestricted non-commercial use, distribution, and reproduction in any medium, provided the
other than the SME sector (Rahaman et al., 2021; Rahaman
original work is properly cited. et al., 2020a; Islam & Alam, 2019). SME sectors played a
256 Md. Atikur RAHAMAN, Md. Sayed UDDIN / Journal of Asian Finance, Economics and Business Vol 9 No 2 (2022) 0255–0260

critical role in accelerating the achievement (Asheq et al., and decision-making skills for a positive outcome. Hidayat
2021; Asheq & Hossain, 2019; Kumar et al., 2019; Hossain and Budiatma (2018) found that job training programs
& Asheq, 2019; Islam & Barghouthi, 2017). affect the performance of the employees at the workplace.
Bangladesh is recognized as one of the emerging and Tukunimulongo (2016) also found that on-the-job training
developing nations in the Asian region, and the country has an impact on employee performance. Hence, it is
has received decent growth in economic development and hypothesized that
progress (Islam et al., 2021; Ahmed et al., 2021; Rahaman
et al., 2020b; Ahmed et al., 2021; Islam & Bhuiyan, 2021; H1: Job training will have a positive impact on job
Akhter et al., 2020a; Akhter et al., 2020b; Jahan et al., 2020; satisfaction.
Hossan & Asheq, 2020; Tu et al., 2021; Hossain et al., 2019).
At the same SME sector has been one of the significant 2.2. Promotion (PRO)
business segments for Bangladesh’s economy. The SME
sector is regarded as the nation’s backbone since the SME Promotion is an essential part of an employee’s job career
section has played a pivotal role in national economic life as it will affect his/her attachment and engagement level
development (Hossain et al., 2021; Hossain, 2021). at the workplace (Kosteas, 2011). If an employee receives
Therefore, the government has started to focus heavily on a timely promotion to the next seniority post, then he/she
developing SME business organizations in Bangladesh. On will become more motivated and satisfied with his/her job
the other hand, employee satisfaction in the SME sector has role (Lup, 2018). Sheaffer et al. (2018) stated that promotion
remained as one of the major concerns for the country’s is pivotal for organizational personnel as it helps enhance
policymakers. The business owners and business managers individual employee performance. Koo et al. (2020) argued
of the SME firms have realized the significance of the that if employees perceive that there has been a dearth of
employees’ job satisfaction. Because satisfied employees promotion opportunities, they might be dissatisfied with
are more productive at their workplace, they have the higher their current jobs. Tsai (2018) found that promotion is a
efficiency to add more value to business performance. Still, critical success factor of employees’ job satisfaction.
little is revealed about how the various factors such as
promotion and job training might affect SME employees’ H2: Promotion (PRO) has a positive effect on employees’
job satisfaction. Hence, the study wants to explore the job satisfaction (EJS).
variables that might impact SME organizations’ employee
performance in Bangladesh. Hence, the study will determine 2.3. Conceptual Model
whether promotion and job training impacted employee
The study’s objective is to examine the determining
satisfaction within SME sectors in Bangladesh. The study
factors of employee job satisfaction in the SME business
will answer the following research questions:
segment in Bangladesh. Based on the study objective, the
study proposes the following null and alternative hypotheses:
(i) Does promotion affect employees’ job satisfaction
within the SME business sector? H10: There is no positive relationship between job
(ii) Does job training affect employees’ job satisfaction training (JT) and job satisfaction.
within the SME business sector? H1a: There is a positive relationship between job training
(JT) and job satisfaction.
2. Literature Review H20: There is no positive relationship between promotion
(PRO) and job satisfaction.
2.1. Job Training (JT) H2a: There is a positive relationship between promotion
(PRO) and job satisfaction.
Human resource managers focus on providing effective
and efficient on-the-job and off-the-job training programs Based on the above hypotheses, the study proposes the
for their employees to enhance and increase their job conceptual model of this research (Figure 1).
performance and work productivity (De Grip & Sauermann,
2013; Liu & Lu, 2016). The training programs are such a
managerial tool that helps employees boost their workplace
happiness and fulfillment (Hidayat & Budiatma, 2018). Promotion (PRO)

Job training aims to provide necessary guidelines and Job Satisfaction (JS)
other job-related knowledge to enhance employee job Job Training (JT)
productivity and performance (Elnaga & Imran, 2013).
Training helps employees develop sufficient competencies Figure 1: Conceptual Model
 Md. Atikur RAHAMAN, Md. Sayed UDDIN / Journal of Asian Finance, Economics and Business Vol 9 No 2 (2022) 0255–0260 257

3. Methodology 4. Results and Discussion

The study gathered data from Dhaka-based SME Table 3 explains the demographic information of the
firms’ working employees from Bangladesh, followed by respondents of the research. The study analyzes the demographic
the purposive sampling method. A survey questionnaire statistics based on respondents’ gender, age, marital condition,
was developed based on previous pieces of literature. and employment time period described in Table 3.
Altogether 240 SME employees were invited to attend the The study obtained samples from SME employees from
survey, and 202 responses were received correct responses. various cities within Bangladesh. In table 3, demographic
Therefore, the sample size is n=202, leaving a response rate information of the samples was present. Table 3 shows that
of 84 percent. The questionnaire included demographic out of 202 samples, 143 male SME employees (70.8 percent)
information about SME employees (i.e., age, gender, marital took part in the study, and only 59 (29.2 percent) female
status, employment length) and a Likert point questionnaire SME employees participated. Table 3 also shows that 66
on study variables, namely job training, promotion, and job SME employees (32.7 percent) were aged from 21 years to
satisfaction. In the Likert scale, “1” is meant as “completely 30 years, 112 SME employees (55.4 percent) were aged from
dissatisfied,” and “5” is meant as “completely satisfied.” 31 years to 40 years, 18 SME employees (8.9 percent) were
Tables 1 and 2 show the study variables’ reliability and aged from 41 years to 50 years, and only 6 SME employees
validity measurement, which was found acceptable. (3.0 percent) were more than 50 years. Furthermore, from
In order to measure the reliability and validity of all table 3, it is seen that 128 SME employees (63.4 percent)
variables, the cut-off value of at least 0.70 Cronbach Alpha (α) were single, and only 74 SME employees (36.6 percent)
value and at least the cut-off value of 0.50 loading value of were married. In terms of the employment period, 70 SME
each variable were considered. As a result, according to Table employees (34.7 percent) were employed in between 0 to 4
2, it is seen that the value of Cronbach Alpha (α) of all study years, 96 SME employees (47.4 percent) were employed in
variables was found as reliable as they were above 0.70. Also, between 5 to 8 years, 26 SME employees (12.9 percent) were
factor loading values of items of the variables were valid as they employed in between 9 to 12 years, and 10 SME employees
were above 0.50. The latest version of the statistical software (5.0 percent) were employed for above 12 years.
of “Statistical Package for the Social Sciences (SPSS)” was
used in this study to perform the analyses and hypotheses.
Table 3: Descriptive Statistics
Table 1: Cronbach Alpha (α) Value of the Variables
Description Frequency Percent
Variables Cronbach Alpha (α) value Gender
Job Satisfaction (JS) 0.799 Male 143 70.8
Job Training (JT) 0.702 Female 59 29.2
Age
Table 2: Validity Measurement 21–30 years 66 32.7
31–40 years 112 55.4
Factor
Variables Item-wise Code 41–50 years 18 8.9
Loading
Jos Satisfaction (JS) JS1 0.882 More than 50 years 6 3.0
JS2 0.801 Marital Status
JS3 0.782 Single 128 63.4
Promotion (PRO) PRO1 0.796 Married 74 36.6
PRO2 0.721 Employment Period
PRO3 0.744
0–4 years 70 34.7
PRO4 0.799
5–8 years 96 47.4
Job Training (JT) JT1 0.920
9–12 years 26 12.9
JT2 0.777
Above 12 years 10 5.0
JT3 0.819 *n = 202.
258 Md. Atikur RAHAMAN, Md. Sayed UDDIN / Journal of Asian Finance, Economics and Business Vol 9 No 2 (2022) 0255–0260

Table 4: Regression Analysis

Beta-value t-value Sig. Tolerance VIF Decision

Job Training (JT) 0.773 4.999 0.000** 0.985 1.209 Accepted
Promotion (PRO) 0.693 4.111 0.000** 0.751 1.338 Accepted
Dependent variable: Job Satisfaction (EJS)
*p < 0.05 (n = 202)
Durbin Watson Value: 2.003
R2 = 0.39 or 39.0%

Table 5: Hypotheses Results

Hypotheses Decision
H10: There is no positive relationship between job training (JT) and job satisfaction. Not Accepted
H1a: There is a positive relationship between job training (JT) and job satisfaction. Accepted
H20: There is no positive relationship between promotion (PRO) and job satisfaction. Not Accepted
H2a: There is a positive relationship between promotion (PRO) and job satisfaction. Accepted

In this study, hypotheses were tested by SPSS software in Bangladesh. In order to achieve the research aim, the study
(Tables 4 and 5). H1 states that job training (JT) has a positive considered the role of job training and promotion on the satiation
relationship with employee job satisfaction (JS), and it is and fulfillment of SME employees’ present job positions. The
also accepted (β = 0.773, p < 0.05). The result is supported findings found out that job training and promotion positively
by prior researches (Haryono et al., 2020; Guan & Frenkel, impact the SME employee’s current job profiles and their
2019). It means that if SME business organizations provide overall satisfaction while working in the SME business sector.
training programs for their employees, employee satisfaction The study had few limitations as the study gathered data from
will also be enhanced due to the training initiatives. It also employees of SME business firms in Bangladesh. Hence,
means that more effective training programs will ensure more future studies should consider various job sectors such as the
job happiness and fulfillment for the employees working production sector, service sector, tourism sector, and so on.
in the small and medium business sectors. To maintain
a satisfactory job satisfaction of the current workforce,
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