Factors Affecting Personnel Performance in Retail Marketing: An Application of Structural Equation Modeling

By Yener, Hüseyin; Kurt, Mustafa | Social Behavior and Personality: an international journal, March 15, 2008 | Go to article overview

Factors Affecting Personnel Performance in Retail Marketing: An Application of Structural Equation Modeling


Yener, Hüseyin, Kurt, Mustafa, Social Behavior and Personality: an international journal


Using the available literature a model of personnel factors affecting the performance of a retail marketing chain was developed. This was tested by using Structural Equation Modeling (SEM). The data were collected by means of a questionnaire completed by employees and their superiors in a retail market chain in Ankara, Turkey. The results suggest that this model provides a framework for the future evaluation of retail sector performance factors and performance.

Keywords: personnel factors, performance, retailing, fuzzy numbers, Structural Equation Modeling.

The economic and social importance of the service industries sector has increased over the years. This sector has personnel from all levels of society. Performance and its evaluation have become key issues for success in this area.

Performance evaluation is the assessment of the properties of personnel (Cascio, 1992). To have knowledge about the factors affecting performance is a crucial item in its evaluation. Few studies have been carried out on the interrelations, interactions and effect of personnel factors with regard to performance.

Structural Equation Modeling (SEM) is a powerful tool to confirm designed models. SEM can be used if the problem has more than two independent latent variables and more than one dependent latent variable and if each of the variables also has interconnections with the others (Hair, Anderson, & Tapham, 1998).

In this paper the direct and indirect effect of personnel factors affecting performance were studied. A model for the retail market was developed by using information from previous research and experience. SEM was used to confirm the model and to test the interrelations of variables.

LITERATURE REVIEW OF THE FACTORS AFFECTING PERSONNEL PERFORMANCE

There are various classifications for the factors that affect personnel performance (Cascio, 1992; Leap & Crino, 1993; Mondy & Noe, 1987). In this study the factors affecting personnel performance are classified as personal, corporate and environmental factors. Personnel performance is also dependent on corporate performance (Leap & Crino).

All factors affecting performance are summarized in Figure 1.

STRUCTURAL EQUATION MODELING

SEM is the recommended tool if there are more than one dependent and independent variable and many interrelations among them. SEM can estimate direct, indirect and total effects concurrently (Hair et al., 1998; Jöreskog & Sörbom, 2001; Sharma, 2001). SEM has two basic structures:

Structural model Relations between variables are visually displayed. The researcher determines which independent variable will estimate the dependent variable using theory and experience (Hair et al., 1998).

Measurement model The researcher defines various indicators for dependent and independent variables.

HYPOTHESES AND MODEL DEVELOPMENT

By taking into account knowledge and experience we set up our hypotheses as follows:

H1. Personal factors and corporate factors are strongly related to each other.

H2. Personal factors and environmental factors are strongly related to each other.

H3. Corporate factors and environmental factors are strongly related to each other.

H4. Personal factors strongly affect personnel performance.

H5. Corporate factors strongly affect personnel performance.

H6. Environmental factors strongly affect personnel performance.

H7. Personnel performance strongly affects corporate performance.

A visual model for the retail market sector was developed by using these hypotheses (see Figure 2).

METHOD

OBJECTIVE

The objective of this research was to assess the factors affecting personnel performance and to explore personnel performance effects on corporate performance in the retail marketing sector by means of SEM.

SAMPLE GROUP

One thousand employees and their superiors in a retail chain store in Ankara, Turkey, were selected by the random sampling method. …

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