UP College of Business Administration: Discussion Papers
UP College of Business Administration: Discussion Papers
UP College of Business Administration: Discussion Papers
College of Business Administration
Discussion Papers
DP No. 1009 December 2010
Organizational and Individual Determinants of Career Success
by
Vivien T. Supangco*
*Professor, UP College of Business Administration
ABSTRACT
This paper identified the factors that affect objective and subjective measures of
career success. Objective measures included total compensation and rank level from
the company president. Subjective measure was career satisfaction. The sample
consisted of students in the MBA program of the University of the Philippines.
Both organizational and individual factors influence career success. However,
the different measures of career success have different determinants, and these three
measures of career success are not correlated.
One consistent finding in studies on career success using Philippine sample is
that gender did not explain variation in total compensation, number of levels from
company president, and career satisfaction. These null results have several
implications. First, there exist income and status parity between female and male
MBA students. Second, it challenges the generalizability of findings on gender
differential in income, status, and career satisfaction common in studies based on
samples from the United States and Europe.
INTRODUCTION
1
Eddleston & Veiga, 2002), and perceived career success (Turban & Dougherty,
1994), among others.
While objective measures of success are important, they may not be the only
measures an individual wants to achieve. Inasmuch as individuals define career
success based on their assessment of career prospects (Ebadan & Winstanley, 1997),
individuals expect a lot more from their careers other than compensation, promotion,
and other objective measures. Individuals also expect to learn new skills, challenge,
and work life balance, among others (Gattiker & Larwood, 1988; Heslin, 2005).
Several authors have also pointed out that when relationship between objective and
subjective career success is found (Judge & Bretz, 1994), it is influenced by different
factors (Ng et al., 2005)—e.g., relationship may be found in males but not in females
(Mayrhofer et al., 2008)—or that objective and subjective career success may not be
related at all (Hall, 2002; Breland et al., 2007). Thus there is need to understand
further the dynamics of career success in the Philippine setting by looking at both
objective and subjective measures.
This paper identifies factors affecting career success using both objective and
subjective measures.
Research on career success is very important to both the individual and
organization. For individuals spending about a third of their time at work, career
success is a logical expectation. On the other hand, to organizations, employees’
attainment of career success implies that employees have achieved organizational
goals and thus may be leveraged for sustained competitive advantage.
To achieve career success, both the individual and the organization invest
time, effort, and resources on career development activities. Ideally, career
development is a joint responsibility of the individual and the organization. However,
business activities such as downsizing, reengineering, and restructuring, which result
in fewer workers and lesser opportunities for them in the organizations, render career
development more challenging. Such diminished growth and opportunities present
challenges as well for the individual to take a more proactive role in his career
development (Heslin, 2005; Feldman, 1996).
2
related outcomes in organizations, for example, male employees receive higher
compensation (Whitely, Dougherty & Dreher, 1991; Whitely & Coetsier, 1993;
Daley, 1996; Lobel & St. Clair, 1992). However, differences in merit increases
between genders ceased to be significant when other considerations, such as career
identity salience and family responsibility, were controlled (Lobel & St. Clair, 1992).
Moreover, in a study using longitudinal research design, Shenav (1992) found that
white women’s opportunities were better compared to those of white men in the
private sector. However, a different scenario emerges when a cross-sectional design
was used on the same data set.
Shenav (1992) shows that women and blacks had lower chances of promotion
to managerial positions compared to male and white samples. The finding was more
congruent with results supporting gender segregation. However, Pfeffer and Davis-
Blake (1987) found that the proportion of women in the organization is negatively
associated with compensation of both men and women in both cross-sectional and
longitudinal research design. Another demographic variable commonly studied in
relation to career success is marital status. Several studies show that married
employees have higher salaries and number of promotions than non-married
employees (Ng et al., 2005; Judge et al., 1995; Judge & Bretz, 1994; Pfeffer & Ross,
1982).
Organizational factors like organization size also affect career outcomes.
Whitely and Coetsier (1993) reported that organization size positively relates to
number of promotions. It is thought that larger organizations have greater ability to
pay and offer more promotion opportunities (Whitely & Coetsier, 1993).
In addition, interpersonal process like mentoring has also been found to affect
career success. Mentoring includes coaching, support, and sponsorship, which provide
the protégés the technical and interpersonal skills, and visibility opportunities that
enable them to succeed in their careers (Whitely, Dougherty & Dreher, 1991). Having
a mentor positively influences compensation (Whitely, Dougherty & Dreher, 1991;
Whitely & Coetsier, 1993); promotability (Wayne et al., 1999), and salary grades
(Daley, 1996). However, the gender of the mentor affects career outcomes. Female
mentors negatively influence the protégé’s career success (Daley, 1996), but male
mentors positively influence compensation of protégés, especially for women
protégées in male-gendered industries (Ramaswami et al., 2010).
The above studies show factors affecting objective measures of success such
as compensation, pay grades, number of promotions, and promotion rates. While
objective measures are important in assessing how far an individual’s career has
progressed, subjective measures are equally important, considering that individuals
have expectations from work other than compensation, promotion, etc. Inasmuch as
prospects of long-term employment are dim such that individuals are expected to be
more proactive in managing their careers, career measures of success become more
personal and subjective (Van Dam, 2008).
There seems to be no consistent result showing which variables influence
subjective career success. Judge et al. (2005) found that different set of variables
predicted the two measures of subjective career success, namely, career satisfaction
and job satisfaction. Demographic and human capital variables significantly explained
career satisfaction but not job satisfaction. Motivational and organizational variables
explained job satisfaction. However, organizational success influences both job and
career satisfaction. On the other hand, Aryee, Chay and Tan (1994) found no human
capital variable explaining subjective career success.
3
Specific individual factors found to predict subjective career success include
tenure, education, and marital status. Clark and Oswalt (1996) found a positive
relationship between education and job satisfaction, but such relationship vanished
when controlled for income levels. However, tenure is inversely related to career
satisfaction (Judge et al., 1995). On the other hand, married employees in general (Ng
et al., 2005) and married women in particular (Punnet, 2005) are more satisfied than
those who are not.
On the other hand, organizational factors affecting subjective career success
include perceived organizational support in the form of mentoring, supervisory
support, developmental assignments, and role conflict and ambiguity. Mentoring was
found to be positively related to subjective career success (Joiner, Bartram &
Garreffa, 2004; Eby, Butts & Lockwood, 2003; Fagenson, 1989). Perceived
supervisory support (Tanksi & Cohen, 2001; Kirchmeyer 1998) influences career
satisfaction. Training received by individuals also influences career satisfaction (Ng et
al., 2005; Wayne et al., 1999). In addition, role conflict (Bedeian & Armenakis, 1981)
and role ambiguity (Igbaria & Guimaraes, 1999) are negatively related to job
satisfaction.
Studies on career success in the Philippines show that different measures of
career success have different determinants. Cash compensation is determined
positively by work experience (Supangco, 2001), tenure in organization, and
education (Supangco, 2010), and negatively by supervisory support (Supangco,
2010). Number of years per promotion is negatively determined by number of
organizations worked for while number of promotions was determined negatively by
number of organizations worked for and positively by work experience (Supangco,
2001). On the other hand, rate of promotion was positively determined by work
experience (2010). Moreover, number of rank levels from the company president was
determined positively by organization size, and women were farther from the top.
Determinants of career satisfaction included supervisory support, perceived
organizational support, and developmental experience. In these two studies, gender
objective and subjective measures of success were invariant to gender, except for
hierarchical success, measured in terms of number of rank levels from the company
president where women were still far from the top. The general results on gender
augur well for women in the Philippines and also make the phenomenon unique and
in contrast to most studies conducted in the United States and Europe that indicate
gender differences, especially in objective career success.
METHODOLOGY
The following sections describe the methodology used in this study. This
includes sampling, data processing, and measurement of variables.
Sampling
4
Data processing
In order to determine the patterns of career success, the author analyzed data
using frequency distributions, means, and mode. To arrive at the factors affecting
career success, a series of step-wise regression analyses were conducted. For all the
measures of career success, non-perceptual measures, except those represented by
dummy variables, were entered first. Once significant variables were determined,
perceptual measures were entered. Again once a model is arrived at, categorical
variables were added using multiple regression. Non-significant variables were
removed to arrive at the final models. Only the final models for all the three measures
of career success are presented in this paper.
This study utilized multiple items in measuring a concept, derived from
different studies, thus the need to empirically examine their dimensionality (Snell,
1992). Items under each concept were summarized using factor analysis with varimax
rotation.
Measures
The following describes how variables in this study are measured. Perceptual
and non-perceptual measures were utilized.
Dependent Variable
Independent Variables
Independent variables used in this study include both perceptual and non-
perceptual measures. Perceptual measures include the following:
5
contributions and well-being. Reported coefficient alpha values ranged from
.74 to .95 (Fields 2002). Coefficient alpha in this study is .91.
Role conflict: Role conflict is measured by a scale developed by House,
Schuler, and Lavanoni (1983). Reported coefficient alpha values ranged from
.79 to .86 (Fields, 2010). Coefficient alpha in this study is .83.
Role ambiguity: Role ambiguity is measured by a scale developed by Rizzo,
House, and Lirtzman (1970). The scale measured the degree to which
employees experienced absence of predictability, clarity, and certainty in their
roles. Coefficient alpha values ranged from .71 to .95 (Fields 2002).
Coefficient alpha in this study is .86. Due to the reverse wording of the
statements, the term used in this study is role clarity.
Procedural justice: Procedural justice is measured by a scale developed by
Parker, Baltes, and Christiansen (1977). It measures voice and choice
dimensions of procedural justice by assessing employees’ perception of the
extent to which they provide inputs and are involved in decision making.
Reported coefficient alpha value was .74 (Fields 2002). Coefficient alpha in
this study is .80
Distributive justice: Distributive justice is measured using a scale developed
by Nichoff ad Moorman (1993). This scale measures the extent to which
employees perceive their work outcomes—such as pay level, work schedule,
workload, and job responsibilities—as fair. Reported coefficient alpha values
ranged from .72 to .74 (Fields, 2002). Coefficient alpha in this study is .84
6
Table 1
MEANS AND STANDARD DEVIATIONS OF VARIABLES
STANDARD NUMBER OF
VARIABLES MEAN/MODE
DEVIATION OBSERVATIONS
Annual Compensation P589, 898.55 P351, 695.52 69
No. of Rank Levels from
Company President 5.4394 2.8073 66
Work Experience (Years) 6.81 4.71 76
Number of Organizations Worked
For 2.53 1.38 74
Tenure in Organization (Years) 3.77 2.54 76
Tenure in Position (Years) 2.14 1.80 76
Tenure in First Organization 33.8750 33.4317
(Months) 76
Mentoring Experience Had Mentor: 76.3% 76
Gender Male and Female: 50% 76
Civil Status Single: 81.6 % 76
Table 2
CORRELATION MATRIX OF SELECTED VARIABLES
1 2 3 4 5 6 7 8 9 10 11
1. Compensation . - . . . . .
- 2 . 3 1 2 1 1
.17 .53
1 .21 0 0 0 2 4 6 1
+ 8 3**
8 2 4 4 8 2 3 4
7 * *
2. Rank Levels from - . . . . - -
President . 3 0 1 1 . .
-
.05 0 6 7 9 2 0 0
1 .19
5 0 9 9 4 6 4 7
6
7 * 0 3
*
3. Career Satisfaction . - . . . . -
0 . 3 4 4 2 .
6 0 2 6 6 1 2
.03
1 9 8 5 3 1 0 2
4
7 * * * + 6
* * * *
*
4. Work Experience - . . . . .
. 0 0 1 3 3
0 1 8 4 0 5
1
2 7 2 0 8 2
5 * *
*
5. Employees in 1 . . . . - -
7
Table 2
CORRELATION MATRIX OF SELECTED VARIABLES
1 2 3 4 5 6 7 8 9 10 11
Department 0 1 0 1 . .
6 4 5 1 0 0
2 6 4 2 0 3
6 6
6. Employees in 1 . . - - -
Organization 0 0 . . .
0 0 0 0 0
6 2 1 1 1
3 4 2
7. Procedural Justice 1 - . . -
. 3 1 .
0 8 4 1
7 5 8 1
3 * 6
*
8. Developmental 1 . . -
Experience 2 1 .
8 1 1
8 2 8
* 0
9. Role Clarity 1 . .
0 0
7 6
8 3
10. Tenure in First 1 .
Organization 3
0
8
*
*
11. Tenure in Position 1
+
p< .10; *p<. 05; **p<. 01
8
Table 3
DETERMINANT OF CAREER SUCCESS
Model 2 Model 3
Model 1
Independent Variable Rank Levels Career
Compensation
from President Satisfaction
Work Experience .345** -.191**
Tenure in Position -.272**
Tenure in First Organization .233*
Developmental Experience .278**
Role Clarity .379**
Procedural Justice .258**
Employees in Department .196*
Employees in Organization .396**
Civil Status -.382**
Dummy for Outliers in Rank .680**
Level
R2 .567 .659 .414
F 18.661** 37.399** 12.536**
*p<. 05; **p<. 01
Model 2 explains 65.9 percent of variation in rank levels. Both individual and
organizational factors account for differences in the rank levels of employees.
Distance from the topmost position in the organization is inversely related to work
experience and positively related to organizational size. The latter is consistent with
Supangco (2001) and Whitely and Coetsier (1993).
Model 3 explains 41.4 percent of variation in career satisfaction. Two
individual factors (tenure in first organization and tenure in position) and two
organizational factors (role clarity and developmental experience) explain differences
in career satisfaction. Tenure in first organization is directly related to career
satisfaction, but tenure in position is inversely related to it. Both developmental
experiences and role clarity positively influence career satisfaction. The influence of
developmental experience is consistent with the findings of Supangco (2010), which
found a positive effect of developmental experience on career satisfaction in addition
to supervisory support and perceived organizational support.
The only common predictor between the two measures of objective career
success is work experience, which is a human capital variable. Inasmuch as work
experience provides an individual specific knowledge and skills that are valuable to
the organization providing such, the individual enjoys its rewards either through
higher compensation or hierarchical status.
The model explaining compensation also shows that, on average, single
employees earn less than married employees. To the extent that married employees
are perceived to be more responsible (Pfeffer & Ross, 1982) and decide based on
several concerns including family responsibility (Huang, Lin & Chuang, 2006), they
are given more opportunities for career success. But when added family responsibility
is expressed as a motivation to work longer hours and accept more difficult
assignments, being married becomes a human capital variable signaling willingness to
work long hours and accept difficult assignments. Size of the department is also
positively related to compensation. The size of the department is an indication of its
importance to the organization, thus signaling its ability to pay its employees
9
(Whitely, Dougherty & Dreher, 1991). From the resource dependence perspective, it
is argued that organizations are able to recruit better workers when they are presented
with a wider source of talents. This argument can be extended to departments within
organizations. Organizations or core departments within an organization may engage
in activities that enhance its control over resources, or develop their substitutes
(Pfeffer & Salancik, 1978). For example, in ensuring the control of human resources
that are more critical in private institutions than in public organizations, incumbents in
such positions were paid relatively higher in the former compared to the latter (Pfeffer
& Davis-Blake, 1987). Another factor that positively influences compensation is
procedural justice. To the extent that employees are given a say in important aspects
of making decisions, they exercise control over the outcome of their work, including
performance and rewards. Exercising voice over aspects of work may result in
equitable outcome, in enhancing control of favorable outcomes, or simply in leading
to desired outcomes (Greenberg, 1990).
In addition to work experience, organizational size explains hierarchical
success, measured in terms of the number of level from the company president. This
finding is consistent with the findings of Supangco (2001). Other things being equal,
those who work in larger organizations are positioned farther from the company
president. Larger organizations exhibit greater vertical complexity (Child, 1974).
Although there may be more promotion opportunities in larger organizations, the
steps to the top may also be longer (Whitely & Coetsier, 1993).
Subjective career success measured in terms of career satisfaction is explained
by individual factors such as tenure in first job and tenure in position, and by
organizational factors such as developmental experiences and role clarity. Tenure in
first job is positively related to career satisfaction. Tenure in first job is an indicator of
early career success. Employees who are not promoted have the tendency to entertain
withdrawal intentions and behaviors (Johnston et al., 1993). In addition, early career
success facilitates late career success (Dreher & Bretz, 1991). Employees who
experience early career success are seen by others more favorably; they also develop a
strong sense of self-efficacy that enables further successes (Rosenbaum, 1984). On
the other hand, employees who particularly track their own career advancement
provide a timetable for them to be in a position. When one is in a position for too
long, one entertains withdrawal thoughts and behavior. Indeed, employees at ceiling
position have higher tendency to leave their organization when they have stayed too
long in a position (Zhao & Zhou, 2008). Moreover, developmental experiences
positively influence career satisfaction. This result is consistent with Ng et al. (2005)
and Supangco (2010). Blau (1964) argued that behaviors and attitudes in social
exchanges in organizations are governed by the norm of reciprocity. When
organizations provide avenues through which employees exercise their abilities while
they satisfy their needs or achieve their expectations, employees reciprocate such
actions to the organization (Prince, 2005). These reciprocal behaviors take the form of
higher performance, positive attitudes, and greater work satisfaction, among others. In
addition, role clarity is directly related to career satisfaction. To the extent that role
clarity reduces tension, job satisfaction is enhanced (Bedeian & Armenakis, 1981).
Employees with clear understanding of their expectations are able to manage the
different demands from work and working, thus they experience higher career
satisfaction.
10
CONCLUSION AND DIRECTIONS FOR FUTURE RESEARCH
11
have better captured the complexity of career success. This can be an area of future
research.
Gender did not explain variation in total compensation, number of levels from
the company president, and career satisfaction. Such findings are consistent with
Supangco (2001) and Supangco (2010). These null results have several implications.
First, there exist income and status parity between female and male MBA students.
Second, it challenges the generalizability of findings on gender differential in income,
status, and career satisfaction common in studies based on samples from the United
States and Europe. These results point to an interesting area of cross-cultural research
on career success.
12
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