11(5) 2020 ITJEMAST Research Papers

Volume 11 Issue 5 (2020)
ISSN 2228-9860
eISSN 1906-9642
http://TuEngr.com
DEVELOPMENT OF TECHNOLOGY FOR
PRODUCTION OF PROTEIN-VITAMIN
GRANULATE
PAKISTAN'S PRIMARY EDUCATIONAL
REFORMS AND CHALLENGES
AN EVALUATION AND PREDICTION
CUSTOMER LOYALTY BASED ON
DECISION TREE AND ARTIFICIAL NEURAL
NETWORK: CASE OF OFOGH KOOROSH
STORES IN TEHRAN
BIOLOGICALLY ACTIVE FEED ADDITIVE
DEVELOPMENT BASED ON KERATIN AND
COLLAGEN-CONTAINING RAW
MATERIALS FROM POULTRY WASTE
THE REVIVAL OF TRADITIONAL PASSIVE
COOLING TECHNIQUES FOR SCHOOL
BUILDINGS THROUGH WINDCATCHERS
DISAGGREGATED ACCRUALS AND
PREDICTION OF FUTURE CASH FLOWS:
AN EFFECT OF GLOBAL FINANCIAL
CRISIS 2008-09
ELASTICITY MEASUREMENT OF FOOD
DEMAND IN PAKISTAN: CROSS-PRICE
AND OWN PRICE ELASTICITY ANALYSIS
USE OF WHITE LUPINE IN THE DIETS OF
MEAT CHICKENS OF BASELINE AND
BROILER CHICKENS OF SELECTION OF
SGC "SMENA"
IMPACTS OF INTEREST RATE ON HOUSING PRICES:
EVIDENCE FROM HO CHI MINH CITY, VIETNAM
EFFECTS OF KNOWLEDGE-BASED, INTELLECTUAL
CAPITAL AND INNOVATION METHODS ON HUMAN
RESOURCE MANAGEMENT: CASE STUDY OF
MINISTRY OF EDUCATION, TEHRAN DISTRICT 7
COMPARISON OF PUBLIC, PRIVATE SCHOOLS, AND
DEENI MADARIS SECONDARY STUDENTS
REGARDING CONFIDENCE AS SOCIAL ADJUSTMENT
IN THE SOCIETY
IMPACTS OF QWL (PROMOTION & WORK
ENVIRONMENT) ON DOCTORS' PERFORMANCE IN
PUBLIC SECTOR HOSPITALS OF PAKISTAN
WORKING CAPITAL MANAGEMENT AND
PROFITABILITY OF FISHERIES ENTERPRISES BY
APPLYING GMM
CONTAGION AND INTERDEPENDENCE AMONG
GOLD, OIL, FOREX, AND ASIAN EMERGING EQUITY
MARKETS
URBAN SOLID WASTE DEVELOPMENT: A REVIEW OF
NIGERIA'S WASTE MANAGEMENT POLICY
IMPACTS OF LEVERAGE ON SYSTEMATIC RISK
BASED ON CAPITAL ASSET PRICING MODEL: A
COMPARISON OF HIGH AND LOW CAPITAL
INTENSIVE FIRMS
A REVIEW OF AN ALTERNATIVE STUDIO PEDAGOGY
FOR ALTERNATIVE SPACES: CASE STUDIES FROM A
STUDENT'S DESIGN COMPETITION
ROLES OF REMUNERATION ON CONSUMER
RESPONSES TOWARDS SOCIAL MEDIA
ADVERTISING: A PAKISTANI PERSPECTIVE
CROSS-BORDER MERGERS & ACQUISITIONS AND
SHAREHOLDERS' VALUE: NEW INSIGHTS FROM UK
ACQUIRING FIRMS
LEARNING FROM COGNITIVE PROCESS OF
VISIONARY MALAYSIAN ARCHITECT ON
GENERATING CREATIVE, NOVEL ARCHITECTURAL
DESIGN IDEAS

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Assistant Prof. Dr. David Kuria (Kimathi University College of Technology, KENYA )
Dr. Mazran bin Ismail (Universiti Sains Malaysia, MALAYSIA )
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Dr. Foong Swee Yeok (Universiti Sains Malaysia, MALAYSIA)
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Dr.Yasser Arab (Ittihad Private University, SYRIA)
Dr.Arslan Khalid (Shandong University, CHINA)
©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies.

i
©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies.
:: International Transaction Journal of Engineering,
Volume 11 Issue 5 (2020) ISSN 2228-9860
http://TuEngr.com eISSN 1906-9642
FEATURE PEER-REVIEWED ARTICLES
IMPACTS OF INTEREST RATE ON HOUSING PRICES: EVIDENCE FROM HO
CHI MINH CITY, VIETNAM 11A05A
EFFECTS OF KNOWLEDGE-BASED, INTELLECTUAL CAPITAL AND
INNOVATION METHODS ON HUMAN RESOURCE MANAGEMENT: CASE
STUDY OF MINISTRY OF EDUCATION, TEHRAN DISTRICT 7
11A05B
COMPARISON OF PUBLIC, PRIVATE SCHOOLS, AND DEENI MADARIS
SECONDARY STUDENTS REGARDING CONFIDENCE AS SOCIAL
ADJUSTMENT IN THE SOCIETY
11A05C
IMPACTS OF QWL (PROMOTION & WORK ENVIRONMENT) ON DOCTORS'
PERFORMANCE IN PUBLIC SECTOR HOSPITALS OF PAKISTAN 11A05D
WORKING CAPITAL MANAGEMENT AND PROFITABILITY OF FISHERIES
ENTERPRISES BY APPLYING GMM 11A05E
CONTAGION AND INTERDEPENDENCE AMONG GOLD, OIL, FOREX, AND
ASIAN EMERGING EQUITY MARKETS 11A05F
URBAN SOLID WASTE DEVELOPMENT: A REVIEW OF NIGERIA'S WASTE
MANAGEMENT POLICY 11A05G
IMPACTS OF LEVERAGE ON SYSTEMATIC RISK BASED ON CAPITAL ASSET
PRICING MODEL: A COMPARISON OF HIGH AND LOW CAPITAL INTENSIVE
FIRMS
11A05H
A REVIEW OF AN ALTERNATIVE STUDIO PEDAGOGY FOR ALTERNATIVE
SPACES: CASE STUDIES FROM A STUDENT'S DESIGN COMPETITION
11A05I
ROLES OF REMUNERATION ON CONSUMER RESPONSES TOWARDS SOCIAL
MEDIA ADVERTISING: A PAKISTANI PERSPECTIVE 11A05J
CROSS-BORDER MERGERS & ACQUISITIONS AND SHAREHOLDERS' VALUE:
NEW INSIGHTS FROM UK ACQUIRING FIRMS 11A05K
LEARNING FROM COGNITIVE PROCESS OF VISIONARY MALAYSIAN
ARCHITECT ON GENERATING CREATIVE, NOVEL ARCHITECTURAL
DESIGN IDEAS
11A05L

ii
DEVELOPMENT OF TECHNOLOGY FOR PRODUCTION OF PROTEIN-
VITAMIN GRANULATE 11A05M
PAKISTAN'S PRIMARY EDUCATIONAL REFORMS AND CHALLENGES 11A05N
AN EVALUATION AND PREDICTION CUSTOMER LOYALTY BASED ON
DECISION TREE AND ARTIFICIAL NEURAL NETWORK: CASE OF OFOGH
KOOROSH STORES IN TEHRAN
11A05O
BIOLOGICALLY ACTIVE FEED ADDITIVE DEVELOPMENT BASED ON
KERATIN AND COLLAGEN-CONTAINING RAW MATERIALS FROM
POULTRY WASTE
11A05P
THE REVIVAL OF TRADITIONAL PASSIVE COOLING TECHNIQUES FOR
SCHOOL BUILDINGS THROUGH WINDCATCHERS 11A05Q
DISAGGREGATED ACCRUALS AND PREDICTION OF FUTURE CASH
FLOWS: AN EFFECT OF GLOBAL FINANCIAL CRISIS 2008-09 11A05R
ELASTICITY MEASUREMENT OF FOOD DEMAND IN PAKISTAN: CROSS-
PRICE AND OWN PRICE ELASTICITY ANALYSIS
11A05S
USE OF WHITE LUPINE IN THE DIETS OF MEAT CHICKENS OF
BASELINE AND BROILER CHICKENS OF SELECTION OF SGC "SMENA"
11A05T
Contacts:
Professor Dr.Ahmad Sanusi Hassan (Editor-in-Chief), School of Housing, Building
and Planning, UNIVERSITI SAINS MALAYSIA, 11800 Minden, Penang, MALAYSIA. Tel:
+60-4-653-2835 Fax: +60-4-657 6523, Sanusi@usm.my, Editor@TuEngr.com
Associate Professor Dr.Boonsap Witchayangkoon (Executive Editor), Thammasat
School of Engineering, THAMMASAT UNIVERSITY, Klong-Luang, Pathumtani, 12120,
THAILAND. Tel: +66-2-5643005 Ext 3101. Fax: +66-2-5643022
DrBoonsap@gmail.com, Editor@TuEngr.com
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Pathumtani, 12120, THAILAND. Tel/WhatsApp: +66-995535450.
P l P id i MALAYSIA/THAILAND
Side image is the colorful models of Corona COVID19 virus.

*Corresponding author (Toan Ngoc Bui). Email: buingoctoan@iuh.edu.vn ©2020 International Transaction Journal of
Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.5 ISSN 2228-9860 eISSN 1906-9642 CODEN:
ITJEA8 Paper ID:11A05A http://TUENGR.COM/V11/11A05A.pdf DOI: 10.14456/ITJEMAST.2020.81
1
http://TuEngr.com
PAPER ID: 11A05A
IMPACTS OF INTEREST RATE ON HOUSING PRICES:
EVIDENCE FROM HO CHI MINH CITY, VIETNAM
Toan Ngoc Bui 1*
1 Faculty of Finance and Banking, Industrial University of Ho Chi Minh City (IUH), VIETNAM.
A R T I C L E I N F O A B S T R A C T
Article history:
Received 30 July 2019
Received in revised form 26
November 2019
Accepted 06 December 2019
Available online 19 December
2019
Keywords:
House price index;
Housing market;
Lending interest rate;
Real estate in Vietnam;
ARDL.
The paper investigates the impact of interest rate on housing prices
in Ho Chi Minh city from 2009:Q1 to 2018:Q4. The author employs the
Autoregressive Distributed Lag (ARDL) approach to estimate the
research model. The results indicate that housing prices are significantly
influenced by the interest rate in the short run and long run. Specifically,
the interest rate exerts a positive impact on housing prices in the short
run. However, this influence turns into negative in the long run. The
study greatly succeeds in finding the impact of interest rate on housing
prices in the short run and long run. Further, the results provide first
empirical evidence on the correlation between interest rates and housing
prices in Ho Chi Minh city as well as Vietnam, thereby being meaningful
for Ho Chi Minh city as well as other provinces in Vietnam.
Disciplinary: Management Sciences (Banking, Real Estate Study).
©2020 INT TRANS J ENG MANAG SCI TECH.
1. INTRODUCTION
As the biggest economic centre of Vietnam, Ho Chi Minh city attracts more and more inter-
provincial migrants. This has put more pressure on the city with the rise in infrastructure and housing
demands. However, it is not always easy to purchase a house here due to the unpredictable
fluctuations in housing prices. Also, considerable fluctuations in interest rate (even with high
increase) make it difficult to get loans from banks (Figure 1). More than that, these fluctuations are
the main root of changes in residential property prices (Tse et al., 2014).
Thus, to analyze the impact of interest rate on housing prices is essential to Ho Chi Minh city.
These results provide a reliable basis for the authorities in stabilizing interest rates and boosting a
sustainable housing market. In addition, this facilitates residents in need to buy a house. Nevertheless,
despite its necessity, only a few existing studies have examined the influence of interest rate on
housing prices in Ho Chi Minh city. Most of them have been conducted in developed countries, not
developing ones like Vietnam. This is a big research gap to be filled.
©2020 International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies

2 Toan Ngoc Bui
Figure 1: Lending interest rate and housing prices in Ho Chi Minh City.
Furthermore, there exist different views on this topic. Indeed, some scholars state that interest
rate exerts a negative impact on housing prices (for example, Adams & Fuss, 2010; Xu & Chen, 2012;
Kengne et al., 2013; Kivedal, 2013; Engsted & Pedersen, 2014; Zhu et al., 2017). Meanwhile, it is
believed that a mild rise in interest rate will enhance the housing market, which in turn raises the
property prices. In other words, the interest rate is positively correlated to housing prices (for example,
Wadud et al., 2012; Tse et al., 2014; Zhang et al., 2016; Gaspareniene et al., 2017; Tupenaite et al.,
2017). This paper investigates the impacts of interest rate on housing prices in Ho Chi Minh City.
2. LITERATURE REVIEW
An interest rate is an essential tool of monetary policy. Accordingly, to control the interest rate
should be one of its targets. Also, the procedure to complete a mechanism of interest rate control
always ensures a monetary policy target which is economic stability. Moreover, interest rate greatly
contributes to stabilizing the housing market (Tse et al., 2014; Bui, 2019b) which represents a market
for properties being purchased, sold and rented, thereby forming prices. Therefore, the housing
market is frequently indicated by the house price index, a statistically weighted average price of each
region at a specific time (Vries et al., 2009).
The impact of interest rate on housing prices has been researched in different economies and
regions. In summary, the existing literature could be divided into two following mainstreams:
The negative impact of interest rate on housing prices: A significant rise in the interest rate
causes a decrease in the housing market. Also, it becomes more difficult for citizens to get a mortgage,
which in turn negatively affects the housing prices. The negative effect of interest rate on housing
prices has been revealed in many empirical studies. For instance, by analyzing data of 15 countries,
Adams and Fuss (2010) reported that a 1% increase in interest rate will decrease housing demands,
thereby giving a 0.3% fall to housing prices in the long run. Xu and Chen (2012) found the negative
causality between the interest rate and housing prices in 70 China’s large and medium cities. In the
same vein, Kengne et al. (2013) also stressed that the interest rate exerts a negative influence on
housing prices in South Africa. At that time, Kivedal (2013) stated that a rise in interest rate can
reduce bubbles in the U.S real estate market, which is the negative effect of interest rate on house
price alternatively. Further, Engsted and Pedersen (2014) concluded that interest rate is negatively
0
2
4
6
8
10
12
14
16
18
20
80
85
90
95
100
105
110
Lendinginterestrate(%)
Housingprices(points)
Housing prices Lending interest rate

3
related to house prices in 18 OECD countries. In addition, it was deduced that a low-interest rate can
lead to the bubble phenomenon in the property market. More recently, Zhu et al. (2017) examined
data of 11 European countries and confirmed the negative effect of interest rate on housing prices.
The positive impact of interest rate on housing prices: Lending is one of the main activities
of commercial banks, especially those in developing countries. Hence, a mild rise in interest rate
(lending interest rate particularly) helps banks increase their income, thereby having sufficient
financial resources to improve their services and abilities of credit supply for the housing market.
This eventually stimulates a better performance of the housing market. Alternatively, the interest rate
is positively related to housing prices. This positive impact has been revealed in some empirical
studies. For example, Wadud et al. (2012) found the positive effect of interest rate on housing prices
in Australia, which reaches a high value in the short term and afterward gradually decreases. In
another research, Tse et al. (2014) stated that interest rate is positively correlated to housing prices in
England. Sharing the same view, Zhang et al. (2016) also stressed that interest rate exerts a positive
influence on housing prices in China’s metropolises, and the impact gradually decreases from bigger
cities to smaller cities. Recently, Gaspareniene et al. (2017) highlighted that 49.23% of the variation
in interest rate could be explained by fluctuations in housing prices in Lithuania, significantly with
positive impact. Also, Tupenaite et al. (2017) concluded on this positive causality in Litva.
Therefore, housing prices may be significantly affected by interest rates. However, a majority of
empirical studies have analyzed developed countries, not developing countries. Moreover, the level
of this influence still attracts different views. Thus, to find empirical evidence on the causality
between the interest rate and housing prices in developing economies is essential.
3. DATA AND METHODOLOGY
3.1 DATA
The author collects quarterly data from 2009:Q1 to 2018:Q4. In specific, data on interest rates
are obtained from the International Monetary Fund (IMF) while those on housing prices of Ho Chi
Minh city are collected from sources of Savills Vietnam. As a characteristic of Vietnam, Savills
Vietnam is the only source that has released quarterly data on Ho Chi Minh city’s housing prices
since the first quarter of 2009. As a result, the author can only collect quarterly data in this period.
3.2 METHODOLOGY
This study employs the Autoregressive Distributed Lag (ARDL) approach to analyze the impact
of interest rate on housing prices in Ho Chi Minh city. Following earlier studies, the lending interest
rate is utilized for the analysis because of its direct influence on housing prices. The model is
estimated by employing the ARDL approach in order to reveal the impact of interest rate on housing
prices in the short term and long term. Moreover, this approach is suitable for the model with short
data series (Pahlavani et al., 2005; Bui, 2019a; Bui, 2019b), which is a characteristic of Vietnam’s
data.
To examine the impact of interest rate on housing prices in Ho Chi Minh city, the research model
is proposed with the following models. Table 1 gives details of the variables.
Long-term impact:
ttt vLIRHPI  10  (1).

4 Toan Ngoc Bui
Short-term impact:
tt
k
j
jt
k
j
jtt ECMLIRHPIHPI   



  1
0
2
1
10
(2).
Where:
Dependent variable: House price index (HPI).
Independent variable: Lending interest rate (LIR).
Error correction mode: ECM. The symbol ε is the model error term.
Table 1: Summary of variables.
Variable name Code Source How to measure
House price index HPI Savills Vietnam The logarithm of the house price index in Ho Chi Minh City
Lending interest rate LIR IMF
The lending rate is the bank rate that usually meets the short-
and medium-term financing needs of the private sector.
4. EMPIRICAL RESULTS
4.1 DESCRIPTIVE STATISTICS
In fact, the house price index in Ho Chi Minh city fluctuates constantly (Figure 1). Table 2,
house price index in Ho Chi Minh city reached the top in the third quarter of 2009 (105 points) and
the bottom in the last counterpart of 2013 (88.7 points). Meanwhile, the lending interest rate reached
the highest value in the second quarter of 2011 (18.02%) and the lowest value in the third counterpart
of 2015 (6.96%). Lending interest rate and house price index have gradually been stabilized recently.
Table 2: Descriptive statistics of all variables.
Variable Mean Min Max
House price index in Ho Chi Minh city (points) 93.928 88.700 105
Lending interest rate (%) 10.094 6.960 18.020
4.2 DICKEY-FULLER TEST
The Augmented Dickey-Fuller test (1979) is adopted to examine the stationarity of the data
series. Table 3 gives the Dickey-Fuller test result.
Table 3: Dickey-Fuller test.
Variable
At Level At ∆
I(0) I(1)
House price index (HPI) 0.575 0.000***
Lending interest rate (LIR) 0.878 0.010***
Note: *** indicates significance at the 1% level.
Table 3 shows that the data series of a house price index (HPI) and lending interest rate (LIR)
become stationary after the first difference I(1) at the 1% level of significance.
4.3 ARDL BOUND TESTING COINTEGRATION
The lag of variables is calculated based on the Bayesian Information Criterion (BIC). Next, the
ARDL bound test developed by Pesaran et al. (2001) is also used to test cointegration among the data
series.
Table 4: ARDL bound testing cointegration.
F = 17.200
F
10% 5% 1% p-value
I(0) I(1) I(0) I(1) I(0) I(1) I(0) I(1)
4.163 5.018 5.205 6.182 7.699 8.935 0.000***
0.000***
Note: ***
indicates significance at the 1% level.

5
Table 4 indicates that F values at 17.200, which is above the upper bound I(1) and significant at
the 1% level. It can be deduced that there exists cointegration among the data series at the 1% level
of significance. In other words, the ARDL approach performs well in testing the causality between
the interest rate and housing prices in the long run and short run.
4.4 RESULTS OF THE COEFFICIENT ESTIMATION
It can be seen from Table 5 that the model is significant at the 1% level (Prob>F = 0.000). R-
squared is 57.31%, which means that 57.31% of fluctuations in property prices in Ho Chi Minh City
could be explained by lending interest rates. The results show that there is no autocorrelation
(Prob>chi2 = 0.836) and heteroskedasticity (Prob>chi2 = 0.456) issues in the model. Also, Ramsey
reset test reveals that none of any important variables are not omitted (Prob>F = 0.707). The normality
test concludes that the model has a standard distribution (Prob>chi2 = 0.421). Consequently, the
results are valid.
Table 5: ARDL The long-run and short-run results.
Variable Coef. Prob.
Long-run results
LIR -0.009 0.064*
Short-run results
LIR -0.003 0.216
LIR(-1) 0.006 0.019**
LIR(-2) 0.005 0.021**
ECM(-1) -0.167 0.002***
Constant 0.771 0.001***
R-squared 57.31%
Significance level Prob > F = 0.000***
Autocorrelation test Prob > chi2 = 0.836
Heteroskedasticity test Prob > chi2 = 0.456
Normality test Prob>chi2 = 0.421
Ramsey Reset test Prob > F = 0.707
Note: *
, **
, and ***
indicate significance at the 10%, 5%, and 1% level, respectively.
Figure 2: Stability tests.
Next, the stability is tested by using a cumulative sum of recursive residuals (CUSUM) and the
cumulative sum of squares of recursive residuals (CUSUM squared). Figure 2 indicates that both
CUSUM and CUSUM squared are within the standard bound at the 5% level of significance. It can
thus be concluded that the model has its stability.
From Table 5, it can be deduced that the house price index is significantly influenced by the
lending interest rate in the long term and short term. Particularly, the lending interest rate exerts
negative impact (β = -0.009) on house price index in the long run at the 10% level of significance.
However, in the short run, the influence of the house price index on the lending interest rate is positive
CUSUM squaredCUSUM

6 Toan Ngoc Bui
and significant at the 5% level. This impact is obviously expressed by the lag of one quarter (=
0.006) and two quarters (= 0.005).
Thus, in the short run, an increase in interest rate can stimulate the operation of the housing
market, which in turn gives rise to housing prices. In other words, the interest rate is positively related
to housing prices in the short term, which is consistent with what Wadud et al. (2012) reported.
Nevertheless, in the long run, an excessive increase in interest rate can reduce the investment into the
real estate market as well as make it hard for citizens to get a mortgage, leading to a fall in housing
prices. The negative correlation between the interest rate and housing prices has been found in
previous studies of Adams and Fuss (2010), Xu and Chen (2012), Kengne et al. (2013), Kivedal
(2013), Engsted and Pedersen (2014), Zhu et al. (2017). Despite being consistent with earlier studies,
an unprecedented finding of this study is revealing the impact of interest rate on housing prices in the
long term and short term. More than that, this paper provides first empirical evidence on this impact
in Ho Chi Minh city as well as Vietnam. Therefore, this result is meaningful to Ho Chi Minh city’s
authorities as well as other provinces’.
5. CONCLUSION
With the objective of analyzing the impact of interest rate on housing prices from 2009:Q1 to
2018:Q4, the study reveals that interest rate significantly influences housing prices in the long term
and short term. Specifically, in the short run, interest rate exerts a positive impact on property prices,
which is clearly expressed at the lag of one quarter and two quarters. Meanwhile, this impact turns
out to be negative in the long run. The paper greatly succeeds in finding the correlation between the
interest rate and housing prices in the short run and long run, which is an unprecedented finding.
Further, the study provides first empirical evidence on the causality between the interest rate and
property prices in Ho Chi Minh city as well as Vietnam. Based on this result, the authorities in Ho
Chi Minh city, as well as those in other regions, can have a reliable foundation to stabilize interest
rate in the combination with the sustainable development of the housing market. The stability of the
interest rate will facilitate the house purchase of citizens, especially limiting bubbles in the market.
Despite gaining its objective, the paper still has its limitations when some variables which may
be correlated to interest rate and housing prices such as economic growth, inflation, financial crisis
have not been investigated. More specifically, due to the fact that Ho Chi Minh city’s housing market
is still nascent, data adopted are quite short and cannot be collected monthly.
6. DATA AND MATERIAL AVAILABILITY
Information regarding this study is available by contacting the corresponding author.
7. REFERENCES
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on Business and Economics, 16, 471-476.
Dickey, D., & Fuller, W. (1979). Distribution of the Estimators for Autoregressive Time Series with Unit
Root. Journal of the American Statistical Association, 74, 427-432.

7
Engsted, T., & Pedersen, T. (2014). Housing market volatility in the OECD area: Evidence from VAR
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Fluctuations: Case Study of Lithuania. Procedia Engineering, 172, 1169-1175.
Vries, P., Haan, J., Wal, E., & Mariën, G. (2009). A house price index based on the SPAR method. Journal
of Housing Economics, 18, 214-223.
Wadud, M., Bashar, O., & Ahmed, H. (2012). Monetary policy and the housing market in Australia.
Journal of Policy Modeling, 34, 849-863.
Xu, X., & Chen, T. (2012). The effect of monetary policy on real estate price growth in China. Pacific-
Basin Finance Journal, 20, 62-77.
Zhang, H., Li, L., Hui, E., & Li, V. (2016). Comparisons of the relations between housing prices and the
macroeconomy in China’s first-, second- and third-tier cities. Habitat International, 57, 24-42.
Zhu, B., Betzinger, M., & Sebastian, S. (2017). Housing Market Stability, Mortgage Market Structure,
and Monetary Policy: Evidence from the Euro Area. Journal of Housing Economics, 37, 1-21.
Toan Ngoc Bui is a Lecturer at the Faculty of Finance and Banking, Industrial University of Ho Chi Minh City (IUH),
Vietnam. He holds a Master of Finance and Banking from Ho Chi Minh City Open University, Vietnam. Currently, he
is pursuing a PhD at the University of Finance – Marketing (UFM), Vietnam. His researches are in the fields of financial
development, real estate market and applied econometrics.

*Corresponding author (Kaveh Teymournejad). Email: kav.teimoornejad@iauctb.ac.ir ©2020 International Transaction
Journal of Engineering, Management, & Applied Sciences & Technologies. Volume 11 No.5 ISSN 2228-9860 eISSN 1906-9642
CODEN: ITJEA8 Paper ID: 11A05B http://TUENGR.COM/V11/11A05B.pdf DOI: 10.14456/ITJEMAST.2020.82
1
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PAPER ID: 11A05B
EFFECTS OF KNOWLEDGE-BASED, INTELLECTUAL
CAPITAL AND INNOVATION METHODS ON HUMAN
RESOURCE MANAGEMENT: CASE STUDY OF
MINISTRY OF EDUCATION, TEHRAN DISTRICT 7
Seyed Ali Shahtaheri
1
, Kaveh Teymournejad
1*
1
Management Department, Central Tehran Branch, Islamic Azad University, Tehran, IRAN.
Article history:
Received 14 June 2019
November 2019
Accepted 22 November 2019
2019
Keywords:
Knowledge-based
human resource
management;
Relational asset;
Human capital;
Structural capital;
Innovative
performance.
Innovation function in organizations is; primarily; considered to be
a human issue in which individuals cultivate opinions to develop and
implement them with respect to knowledge and individuals′
relationships in the organization. An innovative function can influence
human resource management (HRM) and existing knowledge in
organizations′ innovation; the study's purpose is to investigate the effect
of knowledge-based; intellectual capital and innovation methods of
HRM in Ministry of Education; Tehran District 7. The study′s
methodology is description-survey. The method of data collection is
field type, and the method of data collection has been a standard
questionnaire; the statistical population includes 60 staff of the Ministry
of Education in Tehran District-7. Valid and measurable questionnaires
have been collected and then they have been analyzed by structural
equations SmartPls2; then obtained results show that immediate factors
are effective between HRM and innovative function in this study.
Disciplinary: Management Sciences (HRM).
1. INTRODUCTION
Human resource management (HRM) has considered innovation to be a vital factor for
organizations to create permanent competitive value in today′s complex and variable environment.
When organizations are more innovative in response to variable environments and developing new
allowable capabilities, they become more successful; innovative measures are heavily dependent on
knowledge, specialty, and employees′ commitment as the process′s input, in order to form
innovation, organizations may influence assets to develop organizational specialty and form new
ideas. Indeed, knowledge is the complex result of conscious measures related to duties (Maman,
2016) Organizations, in addition to organizational and statutory criteria, need a set of factors which
support them in this way and make cooperation and unity possible toward a collective and public
strategy (Norouzi et al 2015).

2 Seyed Ali Shahtaheri, Kaveh Teymournejad
2. THEORETICAL PRINCIPLES
In many organizations, activities have faced many factors including market opportunities, cost
reduction, and competition to improve performance (Navarro et al, 2010) to show satisfactory
performance in tough occasions encountering by markets. Thus, a perspective based on resources in
the organizations can be caused by their unique resources, integrated resources and/ or the ability to
respond to the environment. Accordingly, there is a distinct difference regarding different
organizations’ performances is due to the fact that successful organizations have strategic resources
(physical, human and organizational) that their competitors lack these resources (Sinaei et al.,
2011). On the other hand, human resources are the core of organizations’ activities, these are
humans who work in organizations and the organization does not work automatically (Sheykh-al-
Eslami, 2012). One of the symptoms of organizations’ improper statute is the lack of a functioning
system in different aspects of the organization including satisfying staff needs, suppliers. On the
other hand, lack of an organization evaluation and monitoring system means inability to
communicate with inner and outer environment of the organization which are followed by
indolence and finally breakdown of organizations (Rezaian et al 2011). Innovation is a vital factor
in the organizations to create permanent competitive advantage and value in our changing and
complex world.
While each activity needs genius and talent, it also needs the knowledge, attention and
hardworking of all staff. Innovation term is a wide concept to use related knowledge or information
to create or introduce new and useful things. Therefore, innovation can be described as any new
idea of an organization and/or industry and/or a nation and/or world (Hosseini 1998). Innovative
organizations need a flexible environment to support innovations. Flexibility increases the power of
adapting and believing which makes the openness to innovation easier (JafarPour, 2013).
A majority of government organizations are looking forward to establishing internalized
knowledge management to take advantage of their knowledge and maintain a competitive
advantage in national and international. Fast changes in today′s world, organizations have faced
different challenges. Pioneer organizations have exploited management means and modern
technologies to accomplish organization′s purposes (Ramezani & Soleymani, 2015). Science
development and fast changes in today′s world have posed many challenges to organizations.
Continuous changes in knowledge have imposed an imbalanced condition on organizations. The
most important role which can be dedicated to knowledge management is that we can consider it to
be a change methodology. Knowledge management can be the most important factor for a change in
the organization because it attracts new knowledge into the organization and manages it (Hosseini
and Fard, 2012). It is hard to implement knowledge sharing in organizations and it needs support
(Reychav and Weisberg, 2010).
Intellectual capital is a non-competitive capital that is contrary to physical capital that can be
used for a single purpose at a particular time. Intellectual capital can be used for multi-purposes
simultaneously (Zanjirani and Allahi, 2014). Employees create intellectual capital through
competency and intellectual agility. In fact, this capital creates an opportunity for the organization
using creativity and personal cooperation to acquire trade value (Dastgir et al, 2014). Intellectual
capital includes three elements like human capital, structured capital and communicative capital
(Khoo et al 2015). Human capital and communicative capital and structured capital cannot change
into private property, they shall be shared among staff, customers and suppliers, and these

3
properties growth needs close attention and monitoring among individuals and organizations
(Dastgir et al, 2014).
With respect to discussed issues and the importance of subject in Tehran district 7 Ministry of
Education, first of all, human is needed to grow and develop more in innovative areas of
organizations, knowledge depends on developing and implementing HRM and main innovative
factors in district 7, Ministry of Education. Innovative production can be considered to be an
important concern which has certain shortages. There is limited data regarding human capital,
structured capital for innovative performance and there is a question which says to what extent
HRM can be effective in the field of successful and ideal innovative performance? Kianto et al.
(2018) obtained findings on 180 Spanish companies have been tested, that intellectual capital is a
positive mediator between HRM and innovative performance. The main study question is: does the
investigation of knowledge-based HRM impact intellectual capital and innovation in Tehran-
district 7 ministry of education?
Wikhamn (2019) investigated the way of permanent HRM and its impact on customer
satisfaction and customers in Swedish hotels. Respondent hotels are divided into four groups based
on their participation in two methods of permanent HRM. Findings showed that the relationship
between innovation and customer satisfaction depends on permanent human resource methods.
However, innovative acts and methods of permanent human resource impact positively on customer
satisfaction. Their interaction shows that an individual can replace customer satisfaction with the
other factor. This study shows that methods of permanent HRM increases a hotel′s capability to be
more innovative and have more customers.
Many studies’ findings showed that structured capital impacts significantly the range of
knowledge-based companies′ authority and policies regarding entrance to the market. Human
capital plays a critical role in organizational learning and training. Communicative capital helps
these companies to act successfully in the field of networking with customers, suppliers of research
centers, development and financial sources.
Also, many studies explore these relationships in the statistic sample showing that culture
improves innovation and also it contains the company′s performance. It can also be a barrier toward
innovation, it depends on values and beliefs in which culture cultivates them. This fact clearly
shows that adhocracy culture is the best factor and variable to predict innovation and performance.
We can conclude that innovation balances the relationship between organizational culture and
performance.
3. CONCEPTUAL MODEL
The study conceptual model is given within the framework of Figure 1.
Based on the issues which have been discussed in the introduction and the importance of study
subject, these three hypotheses are made for carrying out this study:
H1: H1 Knowledge-based HRM with a mediatory role of human capital impacts the innovative
performance of Tehran- District 7 Ministry of Education, Iran.
H2: Knowledge-based HRM with a mediatory role of structural capital impacts the innovative
performance of Tehran- District 7 Ministry of Education, Iran.
H3: Human capital with a mediatory role of structural capital impacts the innovative performance of
Tehran- District 7 Ministry of Education, Iran.

Figure 1: The study model (after Kianto et al. (2017)).
4. METHOD
This study is in the applied form with regard to the study purpose, and it is a descriptive-
survey with regard to the study method. In the study, the review also covers Latin and Persian
articles, books, and the Internet. A questionnaire has been designed and used to collect data. The
study population contains the staff of the District 7 Ministry of Education.
4.1 QUESTIONNAIRE VALIDITY
In order to measure the validity of the questionnaire, content reliability has been used. A
questionnaire has been handed out among specialists and experts which has asked about the
usefulness and uselessness of questions with respect to the variables and purpose of each variable.
The completed questionnaires were collected and the validity of content has been given to 12
marketing experts, the content validity has been calculated for the index of identification based on
12 auditors. According to 12 auditors in Table 1, the accepted content validity ratio (CVR) equals
0.56. The numerical calculations results were 0.66 to 1 for each question which illustrated the
questions′ validity.
Table 1: the content validity of the questionnaire
Question
Calculated
value
Question
Calculated
value
Question
Calculated
value
Q1 0.66 Q10 0.84 Q19 1
Q2 0.67 Q11 1 Q20 1
Q3 0.84 Q12 0.66 Q21 1
Q4 1 Q13 1 Q22 1
Q5 1 Q14 1 Q23 0.84
Q6 0.66 Q15 0.84 Q24 1
Q7 0.84 Q16 0.84 Q25 0.67
Q8 0.84 Q17 1
Q9 1 Q18 1
4.2 RELIABILITY OF QUESTIONNAIRE
First of all, a primary sample is provided which contains 30 questionnaires before the test, and
then SPSS 22 software calculates the reliability with the Cronbach’s alpha method using obtained
data. Using SPSS22 software, the alpha amounts have been estimated to be more than 0.827 which
shows the questionnaire validity and proper intellectual impression of respondents regarding the
content of related variables. Results show that the amount of alpha enjoys the advantage of having
the required reliability.

5
Table 2: coefficient of Cronbach’s alpha
No Variable Questions Alpha amount
1 HRM 1-13 0.886
2 Human capital 14-16 0.869
3 Structural capital 17-20 0.827
4 Innovative performance 21-25 0.853
5. FINDINGS
In this study, inferential discussions and statistic descriptions have been used to analyze data
and test hypotheses. Descriptive statistics contain frequency tables and means, and at inferential
level, structured equations have been used including estimation of path coefficient, significance
coefficients, and Soyel test. SPSS22 and PLS2 software have been used to analyze data.
Respondents′ educational backgrounds: 8.3 percent diploma, 16.7 percent technician, 41.7
percent bachelor, 23.3 percent master’s level, 10.0 percent PhD.
Respondents′ ages: 3.3 percent between 25 to 30 years old, 40.0 percent between 31 to 35 years
old, 28.3 percent between 36 to 40 years old, 15.0 percent between 41 to 45 years old, 13.3 percent
between 46 to 50 years old.
The reliability of the index is calculated by measuring factor loads through calculating the
amount of indices′ correlation in each structure, and its amount equals and/ or more than 0.7. It
proves the fact that reliability is acceptable for the measurement model.
Table 3: validity of variables
Variables Cronbach alpha Mixed reliability
CR˃ 0.7
Shared reliability
communality˃ 0.5
HRM 0.904 0.916 0.548
Human capital 0.765 0.864 0.680
Structured capital 0.784 0.860 0.607
Innovative performance 0.802 0.864 0.560
In the present study, indices show that all the questions have factor load of more than 0.7.
These results confirm next stages of study.
The second validity has been divergent for measurement confirmation and validity which is a
complementary criteria. In PLS modeling, two criteria including Fornel Lacker and width loading
tests have been used.
In the present study, Farnel Laker test is used to investigate known level. On the other hand,
each structure has a higher correlation in comparison to other structures. Fornel and Laker results
have been presented, the results related to Fornel have been presented in table 4, as you can see,
each structure′s load has a higher load in comparison to other structures (factor loads are higher on
the main diameter). Therefore, the model′s divergence is confirmed.
Table 4: divergent validity of measurement model
Main variables 1 2 3 4
HRM 0.740
Human capital 0.651 0.825
Structured capital 0.572 0.591 0.779
Innovative performance 0.626 0.704 0.682 0.748
The obtained results of Table 4 show that there is enough divergent validity among study′s

variables. With respect to numbers written on main diameter, the number of figures on each column
was less than main diameter. This confirms the level of divergent validity in the study model.
5.1 INVESTIGATING THE STUDY′S INNER MODEL
After testing outer model and confirming its validity and reliability (study′s measurement
model), inner model or structural model of study is evaluated. Study hypotheses can be dealt by
using inner models. Statistic criterion including t, coefficient of determination, and path coefficient
are used to evaluate the model. The tested conceptual model has been presented in a standard way
or PLS algorithm, and paths′ coefficients (figure 1) and significance coefficients (Figure 2) have
been presented.
Figure 2: A structural model for determining path coefficients.
Figure 3: Structural model for significance coefficients.
In Table 5, the rate of R2
impact and structural quality of model which shows the impact of
external variables on internal variables, the final amount can be strong in R2
due to this model′s
structural state, and independent variables could predict the dependent variable to be strong and it

7
has been on average for independent variables.
Table 5: The amount of internal and external variables′ impacts
Variable R2
Q2
HRM
Human capital 0.424 0.287
Structural capital 0.350 0.377
Innovative performance 0.987 0.251
The general model fitting 0.593
As we considered the obtained results, R2
and Q2
show that independent variables were able to
predict independent variables on average or above and the general fitting is strong.
The outputs of PLS prove the study′s hypotheses which have been shown in table (6). As you
can see, study′s hypotheses have been investigated with respect to the statistic amount of 1.
Table 6: results of the studied hypotheses.
Hypotheses Test statistic Std. Error p-value Hypothesis Results
H1 5.76 0.021 <0.001 confirmed
H2 2.76 0.103 0.005 confirmed
H3 3.18 0.104 0.001 confirmed
6. CONCLUSION
In the study, we have dealt with investigating the effect of knowledge-based human resource
management methods, on innovative and intellectual capital and a number of results have been
reached which are dealt with based on hypothesis: First hypothesis: knowledge-based HRM is
effective with mediatory role of human capital on innovative performance of District 7 Ministry of
Education in Tehran.
Regarding structural model and mediatory effect of human capital, statistic hypothesis H0 has
been confirmed and H1 has been rejected between knowledge-based HRM and innovative
performance of Ministry of Education because its P-value (<0.001) is less than 0.05. In this study,
as knowledge-based HRM affects innovative performance. Based on the effect of all main and side
hypotheses, we can conclude that the effectiveness of the mediatory factor related to the social
capital on HRM and innovative performance is acceptable, obtained results are consistent with
study′s findings of Ino & et al in 2017.
Second hypothesis: knowledge-based HRM with mediatory role of structural capital impacts
innovative performance of Ministry of Education in Tehran district-7. With respect to the structural
model and mediatory role of structural capital, H0 is confirmed and H1 is rejected because P-value
equals 0.005 and this amount is less than 0.05.
As knowledge-based HRM impacts structural capital and also impacts innovative performance.
Generally, there is an impact between HRM and innovative performance, with respect to the effect
of all main and side hypotheses, we can conclude that the effect of mediatory role of structural
capital and innovative performance is acceptable, obtained results are consistent with study′s
findings of Ino et al. in 2017. Third hypothesis: human capital is effective with the mediatory role
of structural capital on innovative performance in the Ministry of Education- Tehran district-7.
Regarding structural model and mediatory role of structural capital, it is effective between

human capital and innovative performance because its P-value equals 0.001 and it is less than 0.05,
statistic hypothesis H0 is confirmed and H1 is rejected. In this study, there is an impact between
human capital and structural capital, and there is also an impact between structural and innovative
performance. In general, there is an impact between human resources and innovative performance.
With respect to the impact between main and side hypotheses, we can conclude that the impact of
the mediatory factor of structural capital between human capital and innovative performance is
acceptable. Obtained results are consistent with findings of Ino et al. (2017).
7. REFERENCES
Dastgir, Mohsen; Arab Salehi, Mahdi; Amin Jafari, Razieh; Akhlaghi, Hasanali. (2014). the effect of
intellectual capital on company′s financial performance, financial and accounting researches,
6(21), 1-36.
Falahi Maman, M.F. (2016). Investigating the effect of strategic procedures of human resources on
innovative performance, management and entrepreneurship studies, second review, 3, 212-224.
Hosseini, S.M.; Fard, D.H. (2012). The effect of organizational citizenship behavior on knowledge
sharing: study of mediatory role of organizational culture; Iran management science periodical,
7(28), 109-130.
Jafarpour, M. (2013). The role of gaining knowledge in innovation and flexibility in Gilan broadcast;
Master thesis. Rasht Islamic Azad University.
Hosseini, K.H. (1998). innovation in organizations: concept, types and processes, research and science
magazine of economy and management. 42, 48.
Kianto, A., Sáenz, J. & Aramburu, N. (2017). Knowledge-based HRM practices, intellectual capital and
innovation, Journal of Business Research. 81 (Supplement C), 11-20.
Kianto, A. Vanhala, M. Heilmann, P. (2018). The impact of knowledge management on job satisfaction,
Journal of Knowledge Management. 20, 621-636.
Khoo, M.M., Torabi, M.M., Loo, K.M. (2015). Investigating the effect of intellectual capital
components on different aspects of financial function, state accounting, 1(2), 83-92.
Zanjirani, M.D., Elahi, N.Z. (2014). Investigating the effect of intellectual capital on relative efficiency
of production cooperatives, case study in Boushehr province, property and funding management,
2(4), 51-74.
Navarro, A. Losada, F. Ruzo, E.Diez, J. (2010) Implications of perceived competitive advantages,
adaptation of marketing tactics and export commitment on export performance, Journal of
World Business, 45(1), 49–58.
Navarro, J.G.C, Acosta, P.S., Wensley, A. K. P., (2015) Structured knowledge processes and firm
performance: The role of organizational agility, Journal of Business Research.
Norouzi, H., Kameli, A., Beigi, R., Mahzabi, M. (2015). investigating the effect of organizational
atmosphere on staff organizational performance through social capital (case study: municipality
staff of five districts in Rasht city); social capital management, 1, 137- 154.
Ramezani, G., Soleymani, J. (2015). identifying indices of knowledge management and its
implementation (case study: Koredestan university), knowledge based studies, 2(5), 1-24.
Reychav, I., and J. Weisberg. 2010. Bridging intention and behavior of knowledge sharing. Journal of
Knowledge Management. 14(2), 285-300.

9
Rezaian, A., Karimi, A.H., Azar, A., Dehghanian, H. (2011). Designing a conceptual model of
consistent performance in national media (National news channel): communicative researches.
65, 115-142.
Sheykh-al-Eslami, M. (2012). the role of human resource management in forming competitive
advantage, work and society periodical. 147.
Sinaei, H., Haji pour, B., Taheri, K. (2011). investigating the relation between intellectual capital and
company′s performance; transformation management research; review 3(5).
Wikhamn, W. (2019). Innovation, sustainable HRM and customer satisfaction. International Journal of
Hospitality Management. 76, 102-110.
Seyed Ali Shahtaheri holds a-Master of Educational Human Resource, Central Tehran Branch, Islamic Azad
University, Tehran Iran. He is interested in HRM Management. Ali.shahtaheri96 @ gmail.com.
Dr.Kaveh Teymournejad is an Assistant Professor of Management Department, Central Tehran Branch, Islamic
Azad University, Tehran Iran. He is interested in Public Administration, Comparative and Development
Management, Human Resource Management, Change Management.

*Corresponding author (Mati Ullah). Email: educationistmrn@gmail.com ©2020 International Transaction Journal of
ITJEA8 Paper ID:11A05C http://TUENGR.COM/V11/11A05C.pdf DOI: 10.14456/ITJEMAST.2020.83
1
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PAPER ID: 11A05C
COMPARISON OF PUBLIC, PRIVATE SCHOOLS, AND DEENI
MADARIS SECONDARY STUDENTS REGARDING
CONFIDENCE AS SOCIAL ADJUSTMENT IN THE SOCIETY
Mati Ullaha
1*
, Allah Noor Khan
1
1
Institute of Education & Research, Gomal University, Dera Ismail Khan, PAKISTAN.
Article history:
Received 06 April 2019
June 2019
Accepted 28 June 2019
2019
Keywords:
Students’ confidence;
Social adjustment;
Public School;
Academic success;
Secondary education;
Self-confidence.
Adjustment is the interaction between a person and his
environment. It is the ability to bring a desirable change in society.
Similarly, confidence is the belief about yourself, your abilities and
experiences. This is a cross-sectional study wherein all the public,
private secondary schools and Deeni Madaris of the southern region of
Khyber Pakhtunkhwa, Pakistan was the population of the study. The
main purpose of the study was to compare public, private schools and
Deeni Madaris students about confidence as a social adjustment in
society, using questionnaires as a study tool. The respondents included
principals, teachers, students, and parents were a sample of study by
applying L.R.Gay Sample Size rule of thumb. The simple random,
disproportionate, stratified and convenient sampling was used for a
sample collection from respondents. Data were statistically analyzed
through frequency and one way ANOVA which provides significant
information for the stakeholders and policymakers. The study finds that
students from all the institutions whether public, private and Deeni
Madaris are confident about their social adjustment in society.
Disciplinary: Education Sciences (Secondary Education), Psychology.
1. INTRODUCTION
Confidence is the belief regarding yourself and your abilities for which wisdom, holistic
intelligence with experience, enthusiasm and determination are highly mandatory to achieve desired
objectives while living in society (Pepi et al., 2006). Confidence is the tool through which trust with
the inner strength of someone is fully ensured and the purpose ought to achieve in the society
becomes true (Kleitman & Stankov, 2007). Confidence is the key to unlock the potentials of person
and confidence is a feeling of trust in one's qualities, judgment, and capabilities (Eccles & Wigfield,
2002). An individual may pass through different levels of confidence such as low confidence (to
govern your behavior based on what other people think; optimal confidence (your belief about your
doings to be right even others criticize you for that). In this type of confidence decisions are made

2 Mati Ullaha, Allah Noor Khan
with absolute trust and clarity without any sort of others' approval); Overconfidence (Egotism and
stubbornness or in simple words superiority complex) (Lane et al., 2004). The confidence power
can be properly developed by adopting the sequence likewise the goal, setting, analysis, creation,
action, and evaluation (Greenberg, 2008).
When someone identifies the negative thoughts and turns it into positivity, then his confidence
level is automatically enhanced and maintenance of positive support networking, complete
elimination of negativity from mind, identification of own talent by taking pride in own self,
gracefully acceptance of compliments with smiling in the society are all the key factors that
enhance the confidence of someone (Bridgeman & Shipman, 1978). Those people who are highly
confident are happier, men of strength and capabilities, free of self-doubt, fear, stress, social anxiety
and depression (Covassin & Pero, 2004). Confident students act with full vigor and motivation; they
enjoy interacting with others and they are successful members of society (Farooq et al., 2011).
Confidence is the knowledge someone may do something well by applying skills that are quite
essential in almost all aspects of life (Sander & Sanders, 2002). Confident Parents, their children to
feel good and satisfactory about yourselves and analyze yourself by focusing more on where you
behind are, so that your confidence power may be polished and developed (Aggarwal & Mishra,
2005). Confident students mostly show better academic grades because they believe themselves
(Sandra & Ruppert, 2006). They are theoretically and practically genius from all aspects of life and
they show better performance in every field where they indulge or where they get in (Al-Hebaish,
2012).
2. LITERATURE REVIEW
It is highly mandatory for parents to train and nourish children to have full belief on own
abilities, talents, and experiences to enhance own confidential power. The students can ensure their
beliefs on themselves in two ways like understanding themselves and overestimating themselves,
and a realistic assessment of their abilities is the key to acquire confidence (Ochoa & Sander, 2012).
Confident students never make wrong decisions and they are honest and positive thinkers of the
society; their feelings, self-esteem, skills, abilities, and experiences are developed (Ziegler &
Heller, 2000; Martins et al., 2002). Confident students communicate with others quite effectively,
they always speak concisely and with clarity (Purwar, 2002; Koç & Polat, 2006). Confident
students always prefer to live with smile and satisfaction in society; they always monitor their
progress; they do the right things; they are long term planner; they always follow their abilities,
skills, and beliefs; they always do what they are afraid to do (Martin, 2004).
They commit themselves to their success; their focus is always on the basics; they first set their
goals and then confidently achieve it; unhappy, melancholic and confused the students always show
poor academic grades due to the stress and lack of the confidence and lack of confidence negatively
influences the social relations, career, achievements, and moods of students (Van-Laar, 2000). The
confidence comes from practice and knowledge; a student with more knowledge and practice
becomes more confident due to which he/she can easily face new challenges in society due to which
they successfully avail different opportunities (Crocker & Luhtanen, 2003). Confidence is the
combination of ability, strong feelings of self-esteem as well as self-belief, personal judgment, and
power; confident students always feel competency from their inside and outside and they always
use their talent and experiences for the achievement of their goal with patience which helps them in

3
increasing their confidence on themselves (Ross & Broh, 2000).
Confident students utilize their energies and determinations in the best way resulting in better
and quality work; confident students have positive controlled behaviors and emotions; they always
motivate others to do the right things boldly without any fear; they are highly mature and
professional minded due to which they show better performance in the society as well as in
academics (Legum & Hoare, 2004). Confident students always accept themselves as they are and
they start their day with a smile; they believe in trial and error; they always think positively. They
are not anxious, they are highly optimistic; they maintain their self-esteem and their personalities
are quite social in society (Freih & Owayed,2005). Confident students spend most of the time with
confident people and the majority of students are better sportsmen as they follow a competitive
approach in life (Levy et al., 2010). Confidence does not come when you have all answers but it
comes when you are ready to face all questions but show better performance in academics because
of talent and confidence to do and show performances (Huang et al., 2001).
This study examines and compares the confidence of public, private & Madaris secondary
students as the social adjustment.
3. RESEARCH METHODOLOGY
This study applied a statistical tool to analyze and compare students’ confidence as obtained
from questionnaire respondents. All principals, teachers, students, and parents of public, private
secondary schools and Deeni Madaris of Southern divisions (Kohat, Bannu, and D.I.Khan)
consisting six districts (Kohat, Karak, Bannu, Lakki Marwat, D.I.Khan, and Tank) Khyber
Pakhtunkhwa, Pakistan were the studied populations, see Table 1. This study collects the primary
data from the total 1500 respondents were taken as samples as per L.R.Gay sample size rule of
thumb. Districts were selected through the judgmental sampling technique from each category as in
Table 1.
Table 1: Target population and sample of this study.
Study
statistics
Public Schools Private Schools Deeni Madaris
Principals
Teachers
Students
Parents
Principals
Teachers
Students
Parents
Principals
Teachers
Students
Parents
Population 322 5511 77227 65935 232 4428 43909 34215 752 2702 89794 80930
Total 148995 82784 174178
Sample 20 90 300 90 20 90 300 90 20 90 300 90
Total 500 500 500
The questionnaire is a six-point Likert scale having options Strongly Agree, Agree, Slightly
Agree, Slightly Disagree, Disagree and Strongly Disagree carrying values 6, 5, 4, 3, 2 and 1
respectively.
4. RESULT
The split-half reliability was used to analyze and assess the internal consistency of the research
instrument thereby using Cronbach’s alpha to determine the internal consistency among the
different measures of the study. The Cronbach’s alpha result is reliable and acceptable, see Table 2.

Table 2: Reliability statistic.
Cronbach’s alpha N of Items
0.886 16
The data were statistically analyzed through frequency and one-way ANOVA by using SPSS.
The frequency table provides the variation in responses of the respondents about the confidence as
the social adjustment of the students in the societies from different dimensions like the public
schools, private schools, and Deeni Madaris.
Table 3: Confidence in Students (Frequency).
Statement
Respondents
Responses of Respondents
SubTotal
Total
Institutions/
Schools
StronglyAgree
Agree
SlightlyAgree
SlightlyDisagree
Disagree
Strongly
disagreed
OurStudentsareConfident.
Principals
Public School 2 8 3 4 2 1 20
60Private School 3 6 2 4 2 3 20
Deeni Madaris 4 7 2 1 3 3 20
Teachers
Public School 10 36 15 13 9 7 90
270Private School 16 31 12 16 8 7 90
Deeni Madaris 8 18 14 15 20 15 90
Parents
Public School 23 35 16 9 5 2 90
270Private School 18 40 14 9 7 2 90
Deeni Madaris 20 29 19 10 8 4 90
Students
Public School 47 156 35 36 16 10 300
900Private School 35 175 40 31 11 8 300
Deeni Madaris 39 121 34 38 29 39 300
Total 225 662 206 186 120 101 1500 1500
Table 3, the overall, 887 respondents provide agree and strongly agree on responses, while 221
gives disagree and strongly disagree responses about the statement regarding “confidence in
students”. Table 2 is self-explanatory and a decision can be made in a variation of the responses
wherein the majority of the respondents have shown their agreement with the statement that their
students are confident and able to adjust socially in the society.
Table 4: Confidence in Students (ANOVA).
Variables Sum of Squares df Mean Square F Sig.
Principals Between Groups 33.652 5 6.730 11.464 <0.001
Within Groups 877.092 1494 .587
Total 910.744 1499
Teachers Between Groups 8.455 5 1.691 3.076 0.009
Within Groups 821.195 1494 .550
Total 829.650 1499
Parents Between Groups 93.587 5 18.717 42.424 <0.001
Within Groups 659.157 1494 .441
Total 752.744 1499
Students Between Groups 67.790 5 13.558 24.787 0.027
Within Groups 817.194 1494 .547
Total 884.983 1499
Table 4 reveals that the mean value of parents is maximum i.e. 18.717 with the significant
value (.000) and after that the mean value of students i.e., 13.558 with the significant value (.027),
then principals 6.730 with the significant value (<0.001) and at last teachers i.e. 1.691 with

5
significant value (0.009). So it is clear from the findings that the perceptions of parents regarding
their children studied in public, private schools and Deeni Madaris having significant influence in
the society. Overall results elaborate that the p-value is less than 0.05 for all four groups under
study which means that there is a significant group mean the difference in responses of the
respondents about the statement related to the social adjustment of the students in society. So it is
interpreted that these results are generalizable.
5. CONCLUSION
This study highlighted and further explored the significant issue of the students' confidence
from different perspectives like the principals, teachers, parents, and students hailing from the
public, private and Deeni Madaris. The application of the frequency tabulation and ANOVA
provide significant information in deciding and reaching the conclusion. Likewise, the majority of
the respondents have shown their agreement that the students from all the institutions whether
public, private and Deeni Madaris are confident about their social adjustment in the society which is
also validated over the group mean differences by using the application of variance. This confirmed
that there is a significant group means different concerning the confidence of the students which
further helps them to adjust socially in society. The main reason behind this is the motivation and
inspiration of the principals, teachers and parents towards the students in nurturing their confidence
and to adjust to the society to become a social individual in the community. These motivation and
encouragement inspire the students to focused upon their main objectives of achieving their
academic and social status in the institution as well as in society.
6. REFERENCES
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Students’ Career Maturity Levels, Academic Achievement, and Self-Esteem. Professional
School Counseling, 8(2), 148-155.
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Performance in Sport. Scandinavian Journal of Medicine and Science in Sport, 21, 721-729.
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Based Stereotypes. Sri Nagar Journal of Social Psychology, 144 (2), 149-162.
Ochoa, A. R. A, & Sander, P. (2012). Contrasting Academic Behavioral Confidence in Mexican and
European Psychology Students. Journal of Research in Educational Psychology, 10(2), 813-838.
Pepi, A., Faria, L., & Alesi, M. (2006). Personal Conceptions of Intelligence, Self-Esteem, and school
Achievement in Italian and Portuguese Students. Adolescence, 41(164), 615-631.
Purwar, M. (2002). Self-Confidence, Intelligence, and Level of Aspiration among Urban and Rural
Scheduled Cast Boys and Girls. Journal of Psycho-Cultural Dimensions, 18(2), 111-114.
Ross, C.E. & Broh, B.A. (2000). The Roles of Self-Esteem and the Sense of Personal Control in the
Academic Achievement Process. Sociology of Education, 73(4), 270-284.
Sander, P. & Sanders, L. (2002). Understanding Academic Confidence. The British Psychological
Society, 1(12), 29-4.
Sandra, S., & Ruppert, C. (2006). Factor Affecting Students’ Quality of Academic Performance: Journal
of Quality and Technology Management, 24 (2), 1-4.
Van-Laar, C. (2000). The Paradox of Low Academic Achievement but High Self-Esteem in African
American Students: An Attribution Account. Educational Psychology Review, 12(1), 33- 61
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Highly in Chemistry. Journal of Secondary Gifted Education, 11(3), 144-51.
Mati Ullah is a PhD Scholar at Institute of Education & Research, Gomal University, Dera Ismail Khan, Khyber
Pakhtunkhwa, Pakistan. He is interested in Teaching and Learning.
Dr. Allah Noor Khan is an Assistant Professor at the Institute of Education & Research, Gomal University, Dera
Ismail Khan, Khyber Pakhtunkhwa, Pakistan. He got his PhD Degree from Institute of Education & Research, Gomal
University. His research is Email: noormarwat2@yahoo.com

*Corresponding author (Masood Akhtar). Email: soodi4u@live.com ©2020 International Transaction Journal of Engineering,
Management, & Applied Sciences & Technologies. Volume 11 No.5 ISSN 2228-9860 eISSN 1906-9642 CODEN: ITJEA8 Paper
ID:11A05D http://TUENGR.COM/V11/11A05D.pdf DOI: 10.14456/ITJEMAST.2020.84
1
http://TuEngr.com
PAPER ID: 11A05D
IMPACTS OF QWL (PROMOTION & WORK
ENVIRONMENT) ON DOCTORS’ PERFORMANCE
IN PUBLIC SECTOR HOSPITALS OF PAKISTAN
Masood Akhtar 1
, Qamar Afaq Qureshi 1
1 Department of Public Administration, Gomal University, D.I. Khan, PAKISTAN.
Article history:
Received 22 July 2019
November 2019
Accepted 12 December 2019
2019
Keywords:
Quality of Work Life
(QWL); Individual
Work Performance;
Doctors’ work
performance;
Hospitals’
performance.
This study investigated the relationship between promotion, work
environment and performance. The survey approach was used. Cross-
sectional data were collected and used in the analysis. The descriptive
and inferential statistics such as mean, standard deviation, correlation,
regression, exploratory factor analysis (EFA), confirmatory factor
analysis (CFA), and Cronbach’s alpha were used. SPSS®25 and
AMOS-SEM18 were used for statistical analysis. The findings revealed
that all the scales were reliable, valid and all the variables are
significantly and positively related to each other. It is concluded that
promotion is the most significant and dominant variable in the model
for improving the performance of employees. This research is helpful in
bringing valuable information to the government of Pakistan by
considering this concept/variable as a tool for enhancing the doctors’
performance in the above-mentioned context.
Disciplinary: Management Sciences, Healthcare Management.
1 INTRODUCTION
For modern organizations to be successful, they need to be more flexible so that they are
equipped to develop their workers and enjoy their commitment. A workforce that is well equipped
and highly committed is more likely to be very effective which is very important for every
organization. The Quality Work Life (QWL) is related to organizational conditions and practices
that aim at promoting the employee’s mental and physical health, safety and satisfaction (Almalki et
al., 2012). A high QWL is essential for organizations to continue to attract and retain high
performing employees. The importance of healthcare institutions in any country, particularly
developing countries like Pakistan cannot be overestimated. The health care system exerts a direct
influence on productive capacities of country. Sustainable development in healthcare sector is not
possible without the contribution of high performing doctors who serve hospitals (Hsu & Kernohan,
2006).

2 Masood Akhtar, Qamar Afaq Qureshi
It is, therefore, necessary to conduct studies that are intended to inform and assist decision-
makers in hospitals in identifying the key workplace issues that would help in developing the
strategies to address and improve the performance of doctors in public sector hospitals. Researchers
observed that a high quality of work life (QWL) is essential for organizations to achieve high
performance (Azril et al., 2010; Deb, 2006). The way doctors who work in hospitals perceive their
work environment influences their level of performance. Although improving the QWL is important
to the well-being and development of employees, it has not attracted adequate attention in
developing like Pakistan. This study presents addressed these concepts by providing new and
valuable information thereby conducting the field study on the quality of the work life and
individual (doctors) work performance of the hospitals in Pakistani (Khyber Pakhtunkhwa) context
by generalizing the findings.
2 LITERATURE REVIEW
2.1 QWL
Generally, QWL has been defined as opinions and impressions regarding employees'
organizations working conditions. The majority of the literature on the nature of QWL of work life
shows that the concept is latent, multidimensional in nature, and need-based. Sirgy et al. (2001)
conceptualize QWL as need-based categorizing QWL into higher-order needs and the lower order
needs (Schaubrock & Ganster, 1991). Lower order needs are comprised of the health/safety needs,
and economic /family needs (Tabachnick & Fidell, 2002). The higher-order needs are comprised of
the social needs, esteem needs and self-actualization needs, knowledge needs, and aesthetic needs.
2.1.1 PROMOTION
Some employees like equality at the work, some like benefits provided by their job, or others
satisfied with the degree to which they have the power to take the initiatives at their workplace
during the job. In this research, we will study the effect or influence of promotion upon doctors’
work Performance. Promotion is worker recognition efforts and his commitment to work (Borman
& Motowidlo, 1993). Getting higher and higher promotion is the ultimate desire of each person
working in any sort of organization. Promotion is a Shifting of an employee for a job of higher
significance and higher compensation. The movement of an employee upward in the hierarchy of
the organization, typically that leads to enhancement of responsibility and the rank and an improved
compensation package is a promotion (Koopmans et al., 2011).
2.1.2 WORK ENVIRONMENT
QWL is a process by which the organizations’ personnel and stakeholders learn how to work
better together to simultaneously improve staff quality of life and individual work performance and
thus improving organizational productivity. An attractive and supportive work environment is
critical to the employees’ task performance (Almalki et al., 2012). The work environment can be
grouped into three distinct forms. These are the physical work environment (an environment that
deals with the physical or tangibles at the setting where the job is performed), psychological work
environment (a set of characteristics of work environment that affect how the worker feels (Hamid,
2012). The psychological work environment provides a good description of the mental activities
that a worker undertakes during working hours or at the post) and social work environment (deals

3
with relations at job settings. It includes communication styles, the relationship between superiors
and subordinates. It includes the relationship among coworkers, the readiness of others to assist and
teamwork (Awan, 2014).
2.2 INDIVIDUAL WORK PERFORMANCE
Individual work performance is an issue that has not only grasped companies all over the world
but also fueled a great deal of research in fields of management, occupational health, and work and
organizational psychology. Numerous studies on individual work performance have been conducted
(Viswesvaran & Ones, 2000). Still, diverse approaches to studying individual work performance
circulate in recent literature. Whereas the field of management has primarily occupied itself with
how one can make an employee as productive as possible, the field of occupational health has
focused on how to prevent productivity loss due to a certain disease or health impairment
(Vandewalle, 1995). Work and organizational psychologists, on the other hand, have an interest in
the influence of determinants like work engagement, satisfaction, and personality, on individual
work performance.
2.3 QWL AND INDIVIDUAL WORK PERFORMANCE
The conclusion that can be drawn from the literature on the link between the EWL and the
work performance is that QWL has a positive association with work performance. Rossmiller
(1992) found that QWL positively influenced the respect accorded to teachers, teacher participation
in decisions affecting work, professional collaboration and interaction, use of skills and knowledge
and the teaching-learning environment. Madlock (2008) argued that interpersonal communication
(respecting others, working together, believing others and sharing information) does have a positive
impact on the employees'satisfaction and work performance. A study by Azril et al. (2010) also
found that nine aspects of work life studied have significant and positive relationships with work
performance where the highest relationship occurred between individual and family life with work
performance. It is thus hypothesized that
H1: Doctors Perceived (QWL) is positively related to their work performance.
3 RESEARCH METHOD
Researcher collected the data by using the survey as it is a most feasible, common and easy
way to collect large amounts of data from big populations in less time and cost. All the district
public sector hospitals from Khyber Pakhtunkhwa were included in the population. In hospitals,
only doctors were the target population. A nonprobability convenience sampling technique was
used for sampling. All the instruments were adopted from previous research and then modified
some items, statements to ensure clarity of items for the respondents. Now, instruments are adapted.
At initial stage, pilot testing was conducted to ensure reliability and validity of the scales. Initially,
30 respondents were contacted after getting ethical permission from the management of hospitals.
Questionnaires along with a cover letter explaining the aim of the study were distributed in
respondents. In addition, respondents were ensured that their names and data would be kept
confidential. The researcher distributed 300 questionnaires out of 300, 235 were received back in
which 11 were incomplete so those questionnaires were discarded from analysis and 224 were used
in analysis yielding a response rate of 74.6%.

4 ANALYSIS RESULT
Co-linearity happens when all the independent variables are highly correlated with each other.
This effects beta values and researcher inferences about sample and population got affected. So first
researchers have checked multicollinearity, this can be checked by the VIF variance inflation factor
and it should be less than 10 and Tolerance T value it should be higher than 0.10. All the values of
VIF and T were in the specified range. When data is collected by using the same survey, same scale
and same time its validity is questionable. For this purpose, the researchers suggested to checked
common method bias (CMB) by using Harman Single-factor analysis. It was run and found that the
first factor was explaining variance less than 50% it means that CMB is not a major issue in this
study.
From the analysis, results revealed that there are 224 respondents participated in the study.
From the analysis, it is revealed that there were 164 (73.2%), male respondents, while 60 (26.8%)
were females participated in this study. Further analysis of results also revealed that majority of the
respondents belongs to age group of 20-30 years i.e. 84 (37.5%) followed by age group of 51-60
years i.e. 77 (34.4%), likewise 49 respondents belong to the age group of 31-40 years i.e. (21.9%)
and minimum number of respondents belongs to age group of 41-50 years (6.3%). Similarly, the
majority of respondents were holding MPhil degrees i.e. 161 (71.9%) followed by 42 (18.8%) were
holding master degrees and only 21 doctors were having doctoral degrees (9.4%). In the analysis, it
was identified that the majority of the respondents were assistant professors i.e. 72 (32.1%) while
followed by associate professors 59 (26.3%) and lecturers were 45 (20.1%) number of professors
were identified as 48 (21.4%). 152 (67.9%) respondents had the experience of 1-10 years, followed
by the respondents having experience of 20 years i.e. 52 (23.2%) and only 20 respondents were
having experience of 20-30 years i.e. 8.9%. there were 131 local respondents and 93 nonlocal
respondents. Same data for married and single respondents, see Table 1 and Figure 1.
Table 1: Demographic Information
S# Variables Characteristics N Percentage
1 Gender
Male 164 73.2
Female 60 26.8
2 Age
20-30 84 37.5
31-40 49 21.9
41-50 14 6.3
51-60 77 34.4
3 Education
Master 42 18.8
MPhil 161 71.9
PhD 21 9.4
4 Designation
Lecturer 45 20.1
Assistant Professor 72 32.1
Associate Professor 59 26.3
Professor 48 21.4
5 Experience
1-10 152 67.9
1-20 52 23.2
21-30 20 8.9
6 Domicile
Local 131 58.5
Non Local 93 41.4
7 Marital Status
Married 131 58.5
Single 93 41.4

5
Table 2: Reliability and Validity
N Variables Items Mean SD ITC Alpha KMO Variance EFA AVE CR
1 Promotion
Item 1 3.22 1.47 0.713
0.775 0.733 54.0%
0.882
0.540 0.850
Item 2 3.36 1.16 0.657 0.831
Item 3 3.08 1.08 0.610 0.782
Item 4 3.51 1.17 0.448 0.605
Item 5 3.28 1.24 0.354 0.505
2
Work
Environment
Item 1 3.53 1.15 0.628
0.760 0.782 74.5%
0.847
0.720 0.928
Item 2 3.67 1.11 0.664 0.824
Item 3 3.50 1.05 0.650 0.820
Item 4 3.48 0.97 0.621 0.783
Item 5 3.27 1.02 0.134 0.959
3 Performance
Item 1 3.54 1.11 0.362
0.736 0.720 58.3%
0.439
0.363 0.844
Item 2 3.51 1.16 0.214 0.654
Item 3 3.36 1.18 0.193 0.458
Item 4 3.47 1.05 0.335 0.430
Item 5 3.55 1.09 0.343 0.458
Item 6 3.22 1.47 0.577 0.802
Item 7 3.36 1.16 0.553 0.759
Item 8 3.08 1.08 0.522 0.718
Item 9 3.51 1.17 0.508 0.630
Item 10 3.51 1.10 0.366 0.525
It was necessary to report reliable and valid instruments. For this purpose mean and standard
deviation criteria was set. Those items having S.D<0.3 were decided to exclude from the analysis.
Table-2 shows item summaries of promotion variable it is noted that highest mean is recorded for
item4 i.e. Mp4= 3.51, SDp4= 1.17, followed by item 2 Mp2= 3.36, SDp2= 1.16, while lowest mean
score was identified for item 3, Mp3= 3.08, SDp3= 1.08. The same criteria were set for the work
environment. Highest mean was identified for item 2 Mwe2= 3.67, SDwe2= 1.11, followed by item1
Mwe1=3.53, SDwe1= 1.15, lowest means core for work environment was recorded for item 5
Mwe5=3.27, SDwe5= 1.02. For individual performance variables same criteria were set. Highest mean
for item 5 MPer5=3.55, SDper5=1.09, while lowest mean was recorded for item 8, MPer8= 3.08,
SDper8= 1.08, from the above analysis it was concluded that all items for promotion, work
environment and performance met set criteria. All items were retained for further analysis. Further
reliability analysis was run to check inter item correlations through Item Total Correlation (ITC)
and Cronbach’s alpha. Cronbach’s alpha is accepted at 0.7, while 0.8 is considered good and 0.9 is
considered as excellent. While for ITC criteria is 0.3-0.4 as per the existing literature.
For promotion, all items have ITC values higher than 0.3 and the overall alpha value is 0.775,
for work environment all items met criteria except for item 5 but it was not excluded as overall
alpha is higher than 0.7 i.e. 0.760. for performance two items, items 2 and 3 have ITC less than 0.3
so these variables can be excluded to increase alpha value but still alpha for performance is 0.736
still acceptable. Instruments and scales for Quality of work life (promotion & work environment)
and performance are found reliable. Kaiser Mayer Olkin (KMO) is used to check the sampling
adequacy. It was found KMO = 0.733 for promotion, KMO= 0.782 for the work environment, and
for performance KMO= 0.720. It is recommended that KMO values should be greater than 0.50, in
this study KMO for all variables is higher than 0.5, oblique rotation and the Promax method was
sued for rotation and criteria for factor loadings were set at 0.40. it is noted that Table-2 all the
factor loadings for all items of promotion and work environment and performance are higher than
0.4. Average variance extracted (AVE) for promotion is =0.540, and Construct Reliability (CR)

=0.850. for work environment AVE=0.720 and CR=0.928, for performance=0.363, CR=0.844
though AVE for performance is less than 0.40 but CR is higher than 0.7 so ITC is acceptable no
issue of validity. All the items and variables and their scales are found reliable and valid (Hillsdale
et al., 1993).
Figure 1: Measurement Model Confirmatory Factor Analysis
(P: Promotion; WE: Work Environment; PERF/PR: Performance).
AMOS-SEM 18 was used for confirmatory factor analysis (CFA). Criteria for factor loadings
for set at 0,50. But criteria for other goodness of fit such as goodness of fit index (GFI), Bollen's
Incremental Fit Index (IFI), Comparative fit index (CFI), Tucker-Lewis Index (TLI), Normed Fit
Index (NFI); Relative Fit Index (RFI), are set >0.90, and for Root Mean Square Error of
Approximation (RMSEA) <0.08 for chi-square less than 3. Figure 3 shows that all the items of
promotion, work environment, and performance have factor loadings greater than 0.5 but two items
were deleted from promotion because of low factor loadings, one item was excluded from work
environment and eight items were deleted from the performance. RMSEA= 0.06 <0.08,
GFI=0.955>0.90, IFI=0.970>0.090, CFI=0.970>0.90, TLI=0.953, NFI=0.944, RFI=0.912 all are
greater than 0.90. Chi-square/df =2.072. Therefore, the above model is found fit for the present
research and context in highlighting the issue and measure. These indicate the model fitness in the
entire procedure.
4.1 CORRELATION ANALYSIS
As this data was normally distributed, so Pearson correlation as used. Correlation 0.1 to 0.4 is
considered weak, 0.5-0.6 is the moderate and 0.7 and 0.9 is considered high. Pearson correlation is
used to check the relationship amid promotion, work environment and performance.
Table 3: Pearson Correlation Matrix.
Promotion Work Environment Performance
Promotion 1
Work Environment .664**
1
Performance .858**
.625**
1
**. Correlation is significant at the 0.01 level (2-tailed).
It was found that the relationship between promotion and work environment is r = 0.664,
p<0.01, it means that flexible promotion policies increase the environment at the workplace and
there is a friendly and supportive environment developed by doctors and colleagues in the hospitals.
While the relationship between promotion and performance is r = 0.858, p<0.01 it means that when

7
doctors got flexible promotion opportunities then their performance will increase. Similarly, the
relationship between work environment and performance is r = 0.625, p<0.01. it means that when
there is a friendly work environment, the performance of doctors will be enhanced and they become
productive members of the organizations.
4.2 REGRESSION ANALYSIS
There are three types of regression, multiple regressions, stepwise and hierarchical multiple
regressions. In this study, multiple regressions are used. Before regressions analysis data must fulfill
certain assumptions, including a minimum observation number 15-20; data must be normally
distributed; there must be no multicollinearity and no heteroscedasticity problems.
Table 4: Regression Analysis
D.V I.V R R2
Adj R2
F β t p
Collinearity
T VIF
Performance Constant 0.861 0.742 0.739 317.350 12.33 <0.001
Promotion 0.793 17.341 <0.001 0.559 1.79
WE 0.098 2.140 0.003 0.55 1.79
Figure 2: Heteroscadasticity.
Our data fulfills all assumptions so the researcher may proceed for regressions analysis. In this
study promotion and work environment are predictors and performance is the criterion. Table-4
shows regression analysis results. It was found that promotion and work environment shows
variance upon performance i.e. R2
=0.742, which means 74.2% variance is explained by promotion
and work environment. The goodness of fit index or model fitness is checked by F Statistics F =
317.350, p<0.01. Further analysis of results revealed that for performance, promotion shows βp=
0.793, p<0.01, it means that one unit change in promotion policies could bring a 79.3% change in
performance of employees this means that performance could be enhanced by offering flexible
promotion policies and opportunities in the healthcare organizations. For performance work
environment shows βwe= 0.098, p<0.05. This means that a 9.8% variance is explained by the work
environment upon the performance of employees. t statistics are also found significant and it is also
identified that there is no issue of colinearity in Table-4. As T statistics are higher than 0.1 and VIF
values are less than 10. There is no issue of heteroscedasticity in Figure 3.
5 DISCUSSION
Aim of this study is to find the relationship between promotion, work environment and
performance. For this purpose data was collected from healthcare organizations’ professionals

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