ISSN: 2222-6990
Open access
This study was conducted to find out the impact of privatization on the job satisfaction of 51 full
time employees of a post privatized public sector telecom company in a developing country. The
primary data was collected using a job satisfaction questionnaire consisting of 25 questions that
were scaled on a five-point Likert-type scale. The empirical validation of the employee
satisfaction scale was performed by exploratory and confirmatory factor analysis. The study
indicates that most of the respondents are satisfied with their jobs after the privatization, as
compared to the situation when it was a public sector organization. One of the possible reasons
for this is that in an environment of globalization, there is more pressure on the performance
level of the public sector. While the present study focuses on personal characteristics, the
findings are supported by previous studies, which suggest that the level of job satisfaction is
determined by a combination of jobs, work, and personal characteristics. The impact of
privatization on the other variables like tardiness, absenteeism, productivity and customer
satisfaction, could be some of the new areas where future research could look at.
1. Boardman, A .E., Laurin, C., and Vining, A. R. (2002) “Privatization in Canada: Operating,
and Stock price performance with international comparisons,” Canadian Journal of
Administrative Sciences, 19, (2), 137-154
2. Boubakri, N., and Cosset J. C. (1998) “The financial and operating performance of newly
privatized firms. Evidence from developing countries” The Journal of Finance, 53, (3),
1081- 1110
3. Carrell, M. and Elbert, N. (1974). Some personal and organizational determinants of job
satisfaction of postal clerks. Academy of Management Journal, 16,(1) 53-66.
4. DeSantis, V., and Durst, S. (1996). Comparing Job Satisfaction among Public and Private
–Sector Employees. American Review of Public Administration, 26, (3), 327-343
5. D’Souza, J and Megginson, M. L (1999) “The financial and operating performance of
newly privatized firms in the 1990’s,” The Journal of Finance 54,(4),1397-1438
6. D’Souza, J and Megginson, M. L (2000) “Sources of performance improvement in
privatized firms. A clinical study of the global telecommunications industry,” Working
paper, University of Oklahoma.
7. Ehrlich, I., Georges Gallais –Hamonno, Liu Z, and Lutter, R (1994) ‘Productivity, Growth
and Firm ownership –An empirical investigation,’ Journal of Political Economy
102,(5),1006-1038
8. Emmert, M.A., and Taher, W.A. (1992). Public sector professionals: The effect of public
sector jobs on motivation, job satisfaction and work involvement. American Review of
Public Administration. 22, (1), 37-48.
9. Galal, A., Jones, L., Tandon, P., and Vogelsang, I.(1994), “Welfare consequences of
selling Public enterprises: An empirical analysis”. Oxford: Oxford University Press
10. Hackman, J. and Lawler, E. (1971). Employee reaction to job characteristics. Journal of
Applied Psychology, 55, 259 – 286.
11. Hair J. F., Anderson R. E., Tatham R. L., Black W. C. (1998) Multivariate data analysis;
Upper Saddle River.
12. Harrick, E.J., Vanek, G.R., and Michlitsch, J.F. (1986) Alternative work schedules,
productivity, leave usage, and employee attitudes: A field study. Public Personnel
Management. 15, (2), 159- 169.
13. Kalleberg, A. (1977). Work values and job rewards: A theory of job satisfaction.
American Sociological Review, 42,(1), 124-143.
14. Khojasteh, M. (1993). Motivating the Private and Public Sector Managers. Public
Personnel Management. 22,(3), 391-401.
15. La Porta, R., Lopez-de-Silanes, F., Shleifer, A., and Vishny, R. (1999), “The quality of
government,” The Journal of Law Economics and Organization 15(1), 222-279
16. Laurin, Claude and Yves Bozec,(2000), Privatization and productivity improvement: The
case of Canadian National (CN), Working paper, Ecoles de HEC, Montreal.
17. Lee, R., and Wilbur, E. (1985). Age, education, job tenure, salary, job characteristics and
Job satisfaction: A multivariate analysis. Human Relations, 38, (8), 781-791
18. Levin, I and Stokes, J. (1989). Dispositional approach to job satisfaction: Role of negative
affectivity. Journal of Applied Psychology, 74(5), 752-758.19. Locke, E. (1976). The nature and causes of job satisfaction. In M.C. Dunnette, (Ed),
Handbook of industrial and organizational psychology, 1297-1349.
20. Macquieira, C; and Zurita, S. (1996) “Privatizaciones en Chile; eficiencia y políticas
financieras” Estudios de Administracion 3(2), 1-36
21. Majumdar S. K (1998) “Assessing Comparative Efficiency of the State owned, mixed and
Private sectors in Indian industry,” Public Choice 96, 1-24
22. Mannheim, B. (1983) Male and female industrial workers: Job Satisfaction, work role
centrality and work place preference. Work and Occupations, 10, 113-136.
23. Martin, J. & Hanson, S. (1985) Sex, family wage earning status and satisfaction with
work. Work and Occupations, 12, (1), 91-109.
24. Martin, S and Parker, D. (1997). The impact of privatisation: Ownership and corporate
performance in the UK. London: Routledge
25. Megginson, W., Nash R.C, and Van Randenborgh, M.(1994). “The financial and operating
performance of newly privatized firms: An International Empirical Analysis”. The Journal
of Finance 49, 403-452
26. Naumann, E. (1993) Organizational Predictors of Expatriate Job Satisfaction. Journal of
International Business Studies, 24,(1), 61-81
27. Noll, R. G. (2000) “Telecommunications reform in developing countries,” in Economic
Policy Reform: The second stage. Anne O Kreuger, (Ed) Chicago University Press
28. Price Waterhouse (1989a) Privatization :Learning the lessons from the UK Experience,
London: Price Waterhouse
29. Price Waterhouse (1989b) Privatization: The Facts. London Price Waterhouse
30. Ramamurti, R., (1996) ‘‘The new frontier of privatization,’’ in Privatizing Monopolies:
Lessons from the Telecommunications and Transport Sectors in Latin America. Ravi
Ramamurti, (Ed ) Baltimore: John Hopkins University Press, 1-45
31. Ramamurti, R. (1997) “Testing the limits of Privatization: Argentine Railroads,” World
Development, 25(12),1973-1993
32. Rice, R.. W., McFarlin, D. B., and Bennett, D. E. (1989). Standards of comparison and job
satisfaction. Journal of Applied Psychology, 74(4), 591-598.
33. Rondinelli, D. A., and Iacono M.(1996 )‘Policies and institutions for managing
privatization, International Training Center, ILO, Turin, Italy
34. Rousseau, D. M., (1978). Characteristics of departments, positions, and individuals:
Contexts for attitudes and behavior. Administrative Science Quarterly, 15 (23), 521-540.
35. Solomon, E. (1986) Private and Public Managers: An Empirical Investigation of Job
Characteristics and Job Climate. Journal of Applied Psychology 71 (5) 247-259.
36. Taylor, G. S., and Vest, M.J. (1992). Pay comparisons and pay satisfaction among public
sector employees. Public Personnel Management, 21, (4),445 – 454.
37. Voydanoff, P. (1980). Perceived job characteristics and job satisfaction among men and
women. Psychology of Women Quarterly, 5,(2), 177-185.
38. Yergin, D and Stanislaw, J. (1998) The commanding heights: the battle between the
government and the market place that is remaking the modern world. New York, NY.
Simon and Schuster.
N/A
Copyright: © 2012 The Author(s)
Published by HRMARS (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode