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ISSN: 2315-7844
Review of Public Administration and Management
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Managers Approaches on the Intention to Retain Older Employees in the Corporate Sectors in Libya

Hatem Mohammed Rouhoma Salah* and Nasser Habtoor

Faculty of Leadership and Management, University Sains Islam Malaysia, Malaysia

*Corresponding Author:
Hatem Mohammed Rouhoma Salah
Faculty of Leadership and Management
University Sains Islam Malaysia
Malaysia
Tel: 606798 8000
E-mail: [email protected]

Received date: September 30, 2015; Accepted date: June 02, 2016; Published date: June 05,2016

Citation: Salah HMR, Habtoor N (2016) Managers Approaches on the Intention to Retain Older Employees in the Corporate Sectors in Libya. Review Pub Administration Manag 4:187. doi:10.4172/2315-7844.1000187

Copyright: © 2016 Salah HMR, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

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Abstract

This study aim to achieve a better thoughtful of the Executives’ disposition to explore the factors that influence the intention to Retain Older Employees in Corporate Sectors in Libya using Theory of paling behavior as a model. However, the study analyzed the intention of managers to absorb older employees in an organization through pragmatic behaviors and engagements. As a result, the study engaged the theory of planned behavior (TPB). It focused on the unwelcome stereotype attitude meted out to the older employees in a working situation. Quantitative method of research was implemented through a well prepared questionnaire which was used to collect data on the related research questions. Over-all 600 questionnaire was dispersed but 402 was reverted. Therefore, the data gathered from the returned 402 questionnaires was then analyzed by Correlation and regression analyses which revealed a number of significant relationships between the variables (behavioral belief and Intention), (normative belief and Intention). The results indicate that behavioral belief, significantly influenced the disposition of executives’ to retain older employees (β=0.499, p<0.05), also, the normative belief significantly influenced the disposition of executives’ to retain older employees (β=0.336, p<0.05). Contrarily, Control belief does not significantly influenced the disposition of Executives’ to retain older employees in Libyan corporate sector (β=-0.012, p>0.05). The findings unambiguously contribute to the knowledge expansion of Executives’ disposition to Retain Older Employees in Various Corporate Sectors.

Keywords

Manager’s intention; Older employees; Corporate sector

Introduction

Sets of job apportionment have been a mirror image of social nature of labor. Irrespective of the measure, definite customary of groups habitually feel pain of greater labor market disadvantage that associates with recognized (age, gender) rather than achieved (education, skill) characteristics. In specific the processes of recruitment drive at the connection between the socially assembled and often stereotypical preferences of employers, and the social networks that bring potential employees to their attention.

Contrarily to the expectations, recruitment processes may select candidates with the outstanding social ‘fit’ to an existing workplace rather than candidates with the skills and year of experience. Therefore, stereotypical expectations of the capacities of certain groups of workers- such as older employees may have unjustified influence over the likelihood that people without jobs might have succeeded in finding new employment through recruitment interviews. Mostly, if the allocation of jobs is ordered primarily by institutional characteristics rather than the qualities of the people that hold particular roles, and if these characteristics are controlled by employers through the hours, conditions and remuneration they offer to potential employees, and then labor market interventions will need to target employers’ recruitment practices. Several studies revealed the discrimination and stereotypes of employees based on age reason [1-7]. It was found that the managers’ attitudes and stereotypes can be either negative or positive stereotypes towards older employees [6-9].

Many stereotypes pronounced negative characteristics about older employees [1,5] such as older employees were less flexible [9,10], less productivity [3,11], less motivated [5], less healthy and susceptible to illness [12], less adaptable to changes [1], problems accepting new technology [9] and less trainable [13] as compared to younger employees. Notably, older employees seem to be undervalued in corporate environment. It seems negative stereotypes and age discrimination takes place more often than positive stereotypes and fair treatment against older employees. Several studies have revealed positive stereotypes of older employees in corporate sector. Recent study by Nilsson, [9] revealed that approximately 75% managers had positive attitudes and 91% managers preferred older employees to remain in the organizations.

Literature Review

This study endeavored to examine the Executives’ disposition to Retain Older Employees in Corporate Sectors in Libya. The theory of ageing refers to as psychological and biological transformation over time which results transformation in personal ability, organizational and social level [14,15]. Aging means “deterioration of physiological functions internally and externally” that influence the life performance [16] and also known as a stage of plateau in late life [17]. Who are older employees? Numerous definitions have been used in the previous research pertaining to older employees. Overall, there is no exact definition of older employees and it is understood as people who are aged 40 and above [18,19]. Based on the legal of age employment act, similar to Ng and Feldman, Robson et al. [19,20] also defined older employees as individual age 40 and more. In many studies, older employees refer to those who are aged 55 and above [21-23]. According to “Age Discrimination in Employment Act of 1967”, USA, older employees more than 40 years were protected under this act [24]. Aging can affects older employees in many ways which include working memory, competency and work adjustment [25]. James et al. [21] described that the reduction of work ability of older employees begin at age 55 and it has been estimated approximately 50% reduction in terms of health and work capability compared to younger workers with similar education and occupation. In different student, Cardoso et al. [26] found that older employees’ work capability increased at age 50-54, linear or remained stable up to age 59 and reduced afterwards. Nowadays, older employees serve as labor force to favor labor market condition of content in various sectors [27] such as public sector [23,28], private sector [29-31] and corporate sector [32-34]. Older employees are served as part of human capital enhancing economic development [35]. In this study, older employees can be defined as employees aged between 50 and above through changes in terms of psychologically and work productivity in corporate sector environment.

Numerous researches have been published as the numbers of information quickly rises, on the relationship between age and numerous magnitudes of studies includes age discrimination [2,4,5,24,36-38], age stereotypes [37,39,40] and age-related psychological factors [38,41-43] as well as the employability of older employees in the organizations [26,44-47]. In the USA, Popkin et al. [48] reviewed on the impacts of an aging workforce in transportation sector by adopting the sociotechnical systems model. Generally, the study mentioned that older employees were more experience, more physical and cognitive abilities than younger employees in transportation sectors. The main issue now is the unsuitable job design such as working for long hours and wrong position needed to be taken seriously. The authors explained that less number of employees in railroad and maritime work has resulted older employees to work for long hours and work shifts due to heavy work demands. They also noted that the land transportation work such as bus operator position should be given to younger employees instead of older employees. The author explained that although older employees are more experienced and have good judgment on the road but they should be served at scheduling and staffing position due to less pressure and health concern.

On the other hand, in Europe, the high demands on physical workforce attributed to decision to hire and sustain the employability of older employees in many small businesses such as bakery, truck driver, tailors’ cutter, nursery nurse, shop assistant and upholsterer. The recruitment of older employees is also triggered by the fact that younger people preferred to work in the professional field with attractive profession and good rewards [49]. However, in Belgium, according to Martens et al. [50], it has been reported the number of employability rates of older employees in the many sectors is very low. Factors such as cost burden to organizations, negative mind-sets and younger people preference in workforce contributed to low employment rate of older employees. Hence, the study suggested that age fair opportunities need to be implemented. By creating age-related management such as promotion of teambuilding, flexible time, career planning, education, training and age-friendly practices; older employees can be as a team in the firms and organizations.

Besides, Quite few studies about older employees in workforce has been carried out in Middle East [51-54]. In public hospitals, Jordan, according to Ababaneh, [51] older employees were more responsible, understand the job tasks and having more working experience than younger employees. Besides, the author also noted that they were sociable and showed strong relationship with peers and organizations as compared to younger generations especially in a case of the Arab world. In contrast, a study by Sheikha and Younis, [53] showed that older employees showed high rate of absenteeism in academic and public libraries field in Jordan. Notably, older employees were less

communicates with other employees, less understanding about the job task and supervisors unable to identify job relevant for older employees attributed to high rate of absenteeism among them. In Turkey, older employees were highly valued in health sector. They were protected from negative stereotypes and discriminations. It seems organizations favor the existence of older employees by instilling equal opportunities to all generations [52]. In Lebanon, according to Sidani et al. [54] it was found that although older employees turn to be more ethical due to higher experience level, however, they were less comprehensive to recognize issues at different situations within organization. However, the fact is not all older employees show similar attitudes and work behaviors. Instead of relying on speculation, comprehensive study needs to be carried out in order to provide clarity pertaining to this matter.

Methodology

This study used a quantitative research method to advance and explore managers’ behavioral belief, normative belief, and control belief on the disposition to retain older employees in corporate sector in Libya. In order to validate the research objectives, research questions and hypotheses, a survey method was developed and conducted. According to Koppius et al. survey method is the most suitable method to describe the real phenomenon of a population too large to be experimental.

In this study, research population and sample were collected from the managers of corporate sector in Libya. The sample were obtained among managers of corporate companies, and the study aim to analyzing executives’ behavioral belief, normative belief and control belief on the disposition to retain older employees. Out of the 600 questionnaire distributed, 402 was retrieved and this was considered as respondents for the study. The required data for this study were collected by using survey instrument which consists of a set of structured questions on managers’ behavioral belief, normative belief and control belief on the intention to retain older employees in corporate sector in Libya. The data were coded and analyzed using SPSS Version 20. The independent variable in this study are behavioral belief, normative belief and control belief. The dependent variable is the executive’s disposition to retain older employees in corporate sector.

As following in Figure 1, the model recommends that intention is the key of predictor of the behavior. The intention is the function of three elements. The first element is the Behavioral belief.

review-public-adminstration-management-research-model

Figure 1: Research Model

The Behavioral belief towards intention is the individual’s positive or negative affects about performing the target behavior. It is determined through an assessment of one’s beliefs regarding the consequences. Officially, overall behavioral belief able to be evaluated as the sum of the individual outcome multiplied by the desirability evaluations for all affected outcomes of the behavior [55].

Normative belief indicates to a person’s perception is important to him/her think that he/she should/should not perform the behavior under consideration. The theory refers to the more a person perceives that others who are important to him/her think that he/she should/ should not perform a behavior; the more he/she will intend to do so. However, people are viewed as intending to perform the behaviors they believe their important relatives and friends think they should perform [55].

Control belief Control refers to the ability to influence what is happening or what will happen. Beliefs about control in the context refer to the thoughts an individual has regarding the ability to influence intention [55]. The hypotheses are as follows:

H1: Behavioural belief will have a positive influence on the Intention to retain older employees in corporate sector in Libya.

H2: Normative belief will have a positive influence on the Intention to retain older employees in corporate sector in Libya.

H3: Control belief will have a positive influence on the Intention to retain older employees in corporate sector in Libya.

Demographic profile of respondents

The above table shows that there are five questions in the respondents’ demographic background section and all data were analyzed and interpreted using the frequency and percentage. Based on the results, it shows that respondents who have answered the distributed questionnaire consisted of respondents’ gender, and 96.5% majority (388) of the respondents were male while 3.5% (14) of the respondents were female, as it was difficult in Libyan environment to come about many females managers of companies and industries because of the country’s policy which does not expose females in public. Thus, it can be concluded that the male respondents was absolutely higher as compared to the female respondents. Meanwhile, the respondents’ age under 25 years old which represents 0.2% (1) of the total population. Then it follows by those respondents under the age of 26-30 years old which is 6.0% (24). Hence, it follows by those respondents under the age of 31-35 years old which is 14.7% (59), followed by the respondents under the age of 36-40 years old which was 43.0% (173). Lastly, it follows by the respondents aged 41years old and above that represents 36.1% (145) out of 402 respondents, this indicates that a larger percentage of them were within their active age of service. Besides, the majority of the respondents 42% (169) had Bachelor degree while 37.6% (151) had Master degree and 14.4% (58) had Doctorate degree. But, 0.5% (2) and 5.5% (22) other respondents had High school and Diploma certificate. However, 6.0% (24) had less than a year experience at the post as a manager, 15.9% (64) had been in the post between one and three years, while 34.1% (137) have four to six years in the post as a manager and 14.4% (177) of the respondents had 6 years above in the post. This portrays that a larger percentage of them are young in these positions and they have spent average of 6 years as a manager. Therefore, 20.6% (83) of the manager feel the interaction with the older employee are not important, while 76.4% (307) majority of the respondents feel that the interaction with the older employee are important and the rest 3.0% (12) of the respondents were not sure. The demographic analysis was mainly for basic descriptive analysis.

Reliability analysis

The reliability analysis helps to assess the goodness of a measure by computing the Cronbach’s alpha for each measure. Based on the Table 1, the Cronbach’s alphas for all the variables are in the range of 0.805- 0.836 which indicates that the items measured were targeted to the right respondents. Further, results of correlation analysis have shown that all variables are moderately correlated with each other (Table 2). All variables are significantly. Before test the hypotheses model, it is important to examine the model collinearity. To detect collinearity, variance inflation factor (VIF) values for variables were examined. The variance inflation factor (VIF) values for all variables were lower than 5. This indicated that there were no collinearity problems [56].

Demographical Variable Category Frequency
(N= 402)
Percentage (%)
Gender Male 388 96.5
Female 14 3.5
Total 402 100%
Age Below 25 years 1 0.2
26 – 30 years 24 6.0
31- 35 years 59 14.7
35- 40 years 173 43.0
41 years& above 145 36.1
  Total 402 100%
Qualification High school 2 0.5
Diploma 22 5.5
Bachelor degree 169 42.0
Master degree 151 37.6
Doctorate degree 58 14.4
Total 402 100%
The period of time as a manager Less than a year 24 6.0
1 - 3 years 64 15.9
4 - 6 years  137 34.1
6 years above 177 44.0
Total 402 100%
How do you feel your interaction
with older employees
Not important 83 20.6
Important 307 76.4
Not sure 12 3.0
Total 402 100%

Table 1: Cronbach alpha for all constructs.

No Variables Mean SD 1 2 3 4
1 Behavioral  belief 2.55 1.06  (0.805)
2 Normative belief 2.88 0.85 0.782**  (0.948)
3 Control belief 2.99 1.03 0.601** 0.729**  (0.778)
4 Intention to retain older employees 2.42 0.87 0.754** 0.717** 0.533**  (0.836)

Table 2: The results of a correlation analysis for Independent and dependent variables

Cronbach alpha was calculated to test the internal consistency reliability of all constructs. As shown in table, the Cronbach’s alphas of the constructs were all above the threshold of 0.70 [57]. This suggests that the internal consistency of a construct is confirmed.

Findings and Discussion

Hypotheses are tested by testing the effect of the Behavioral belief, normative belief and control belief on the disposition of Executives to retain older employees in Libyan corporate sectors. The results of the regression analyses have shown that there was no multicollinearity problem and there was no serious violation of the assumption of independent observations. The multiple regression results indicate that a strong relationship existed as hypothesized. Meanwhile, R value indicates that a strong association between the independent and dependent variable exist.

Multiple regression analysis for independent variables and dependent variable

The purpose of this paper is to examine the Executives’ disposition to Retain Older Employees in Corporate Sectors in Libya. Further, findings indicate that there is positive relationship between behavioral belief, normative belief and the executives’ disposition to retain older employees except for the control belief. The results are shown in Table 3.

Variables Standardized Beta
Behavioral belief 0.499**
Normative belief 0.336**
Control belief -0.012
0.610
Adjusted R² 0.607
F Value 207.332
Significance F Value 0.000
Durbin Watson 1.731

Table 3: The regression coefficients for independent and dependent variables.

This finding is consistent with those of previous researches, which showed that older employees were more responsible; understand the job tasks and having more working experience than younger employees. Besides, they were sociable and showed strong relationship with peers and organizations as compared to younger generations [51,53,54].

Conclusion

The main objective of this study was to examine the connection between Behavioral beliefs, normative belief, control belief Executives’ disposition to retain older employee in Libyan corporate sectors. The findings indicate that behavioral belief; has positive significant impact on managers’ intention to retain older employees. Also, Normative belief; has positive impact on managers’ intention to retain of older employees, but, control belief showed non-significant on executives’ observations to retain older employees. Based on the finding of this study, it is suggested that both behavioral belief as well as normative belief towards older employees in corporate sector in Libya should focus on these aspects in order to attract and retain older employees. The belief about older employees, the outcome of retain older employees as well as the perceived behavior towards older employees can all be enhanced by motive the manager to retain older workers. This is done through consciousness campaigns about both the older employees, the organization goals and values. Doing this may serve as an enticement for the managers to support and remain older employees it is hope that findings of this study would help managers and practitioners to formulate strategies and program to overcome the stigmatization against older employee in an organization. Overwhelmingly, this research is significant because of its contribution to reduce the executives’ or manager’s stereotypical loutishness against older employee in corporate sectors. However, this research only focused on executives’ disposition to retain older employees in the Libyan corporate sectors. Thus, future research should consider comparing two countries or more to examine and equate administrators’ disposition on the retention of older employees in workforce. Future studies are recommended to discuss the determinants of the intention to retain older employees in in other countries. moreover, the future researches can also be aim to use different models in the context of Libya, to find more detailed results, such as the factors that influence the behavioral beliefs about older employees towards their employer. Additionally, it is recommended to focus on specific kinds of retention in organization, especially those that were not widely launched up to date.

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