IntellectualCapital,Total Quality Management towards Lecturers’ JobSatisfaction, - An EvidencefromLecturers ofPrivate Universities in Bandung, Indonesia.

Ronny BuhaSihotang*,

Faculty of Economics,

Department of Management,

Universitas Advent Indonesia.

Bandung, Indonesia

Email: ;

Abstract: The purpose of this research is to know Lecturers’ Job Satisfaction in private Universities in Bandung, Indonesia.There were two variables that examined relating to Lecturers’ Job Satisfaction, namely Intellectual Capital and Total Quality Management.Research results showed that (1) Intellectual Capital had a positive effect towards Lecturers’ Job Satisfaction, (2) Total Quality Management had a positive effect towards Lecturers’Job Satisfaction, (3) Intellectual Capital and Total Quality Management had a positive and significant correlation, (4) Intellectual Capital and Total Quality Management simultaneously had a positive effect towardsLecturers’Job Satisfaction.

Keywords: Intellectual Capital, Total Quality Management, Job Satisfaction, Lecturers, University.

Biographical notes: Ronny BuhaSihotang is a Senior Lecturer and Researcher in Department of Management, Universitas Advent Indonesia, Bandung. He holds a Doctorate degree from UniversitasKatolikParahyangan, Bandung, Indonesia; Master in Management degree from Asian Institute of Management, Philippines. His interests are operation management, quality management, financial management, strategic management, taxes management. He has the practical experiences in some companies (local and multinational companies).

1. Introduction.

Each organization expects that every one of its employees must have jobsatisfaction.Becauseemployees who have jobsatisfaction will produce better work.That is why the leadership ofanorganization must note the job satisfaction of allitsemployees. The phrase above states that as long as the organization still operates, employee job satisfaction issues must be noted.

In this case, Lecturers’Job Satisfaction in higher education needs to be considered.TheIndonesianGovernmentis noting on the Lecturers’Job Satisfaction in order for Lecturers in Indonesia to increase and better their work performance.For this purpose, the Government of Indonesia provides financial assistancethrough the certification of lecturersand study opportunities through scholarships for lecturers who want to learn in a higher program level.

Several researcherspreviously;Sharmaand Jyoti(2010),Islam etal.,(2012)found that the Lecturers’Job Satisfaction in Higher Education must be noted so that the lecturers will pay considerable attention to the process of learning and teaching.FurthermoreGowan(2012), found that whatever the operational strategy of a University and the completeness of facilities owned by an educational institution, if the Lecturers’Job Satisfaction is not considered, then the operational results of the University will not be good.This is also consistent with the findings Smayling & Miller (2012),whichshowed that if the Lecturers’Job Satisfaction is not addressed then there is a gap between performance achievement of lecturers and the maximum results that should be achieved.Even from a few studies regarding Lecturers Job Satisfaction in the United Kingdom (Oshagbeni, 2000),Pakistan (Islam et al., 2012), China (Na et al., 2011), Singapore (Paul & Keng, 2012), Malaysia (Mustafa, 2013), Bangladesh (Masum et al., 2015), Israel (BoglerNir, 2012) showed that Lecturers Job Satisfaction is very influential towards the maximumwork results. Therefore, everyuniversityneeds to determine the operational factors associated with the Lecturers Job Satisfaction.

Other variablesassociated witha Lecturers’Job Satisfaction is the Intellectual Capitalownedby Lecturers.In the academic field, Intellectual Capital of Lecturer is a collection of knowledge, experience of the Lecturer in performing tasks and work in joint academic activities and to various parties (BornemannWiedenhofer, 2014).This understanding is similar to Stewart's (1997) explanation of a collection of intellectual material which includes knowledge, information, intellectual property rights and maintaining relationships with related parties through the experience one has for creating and achieving goals.

For Indonesia, the approach of knowledge theory relating to the approach of Intellectual Capital application practice in a University is still very limited, but for developed countries, organization and development of Intellectual Capitalof lecturers for the academic discipline has made into a study of the most important and foremost(Sanchez et al., 2009; SerenkoBontis, 2013; Siboni et al., 2013; Ramirez et al., 2013).Intellectual Capital of Lecturers play a role and is very strategic for the University because Lecturers are the main and leading part on the operational points of the University (SerencoBontis, 2013).Intellectual capital of lecturers is collectible and also have interrelated relationships with one another. Intellectual capital of lecturers in a University gives several meanings, including;(1) all activities or operational functions will generate something about themappingof knowledge(Hellstrom & Husted,2004).For example,the level of education, experience, professionalism,books,courses,equipment (classroom, chair, desk, computer, internet, laboratories, and others), buildings, students, faculty, staff, and garden, (2) meeting place of educated people, (3) a place of learning and teaching,researching, consultingand other academic interests,(4) have expertise to share ideas, knowledge and information effective for students.Universityis the organization (also called other educational institutionssuch as University, Institute, Academy) that manufactures or produce (output) knowledge with added value for to people with previously obtained education.According to Indonesian Constitution No.14 Year 2005concerningTeacher & Lecturer and Indonesian Constitution No. 37 Year 2009 concerningLecturer,states that lecturers are professional educators, intellectual scientists, working as a transferor of knowledge, technology and the arts to the public.Government Regulation indicates that a Lecturer is required to have a minimum level of Master Degree in accordance with the field to be taught.This requirement has given meaning to the increasing Intellectual Capital for Lecturer who will implement the college Trinity. Intellectual Lecturers in various competencies namely (a) pedagogic competence (ability to manage the subjects that will be taught to students), (b) personality competence (exceptional personality ability, noble actualizations, wise, dignified and can become role models for students), (c) professional competence (the ability to master the course material taught widely and deeply, and pride of being a Lecturer), (d) social and relational competence (Lecturer’s to communicate, relateand interact effectively and efficiently with students, fellow lecturers, parents, and other parties related to the teaching and learning process).

If the Intellectual Capital of Lecturers ismanaged properly thenit is better for the University, and become an asset "more capable" to get a competitive advantage over other countriesin the development of human resources(Brown & Russel, 2011).Intellectual capital of Lecturer is very important for the organization(University),so that many organizations have calculated that of the totalcapital owned, 80% are in the form ofIntellectual Capital(Dewhurst& Navarro,2004;Pablos, 2002). That is whyIntellectual Capital is built, maintained and developed maximally and sustained by practitioners and academicsas it will always be knowledge(Sanchez et al., 2009; Sanchez and Elena, 2006)and real to the organization(Pedrini,2007). These facts show that the organization of Intellectual Capital lecturers at the University will produce faculty performance as the main source of intellect in advancing education for the Nation. Therefore, universities inIndonesia need to examine factors of Intellectual Capitalof Lecturers.

The nextfactorassociated with satisfaction of lecturerisTotal Quality Management(Sallis, 2012).Total Quality Managementlooks at the overall aspects that must be met byLecturers in producing quality products(Zubair,2013).This is in line with the objectives of the Center for Education Quality Assurance and Agency for Human Resource Development and the Ministry of Indonesia National Education Quality Assurancenamely the continuity of education in Indonesia because the doctrine ofTotal Quality Managementis a continuous process for education based onInternational Quality Standards(Foster, 2007). Hutchins (1991)suggested that thequalityis:(1) a value of a measurement and the used standard(conformanceto applicable specifications andstandards),(2) accuracy of use(fitnessforuse).(3)the fulfillment of satisfaction regarding wants, needs and expectations of customers(satisfactionof customer wants, needs, andexpectations).Of course, the principle of quality approach is applicable in teaching and learning in the University.

In short, the implementation of Total Quality Managementin educationaims to:(1)Improvethe quality ofhuman resourcesin the field of educationso that resources are capable and skilled in performing the task well.(2)create job satisfaction of lecturers in teaching serving the society as acustomer.(3)Increasing between human resources and educationso work morale can be maintained well.(4)Improving theperformance of work.(5)Lowering cost.(6) Implementation ofpolicies and objectives of the University(Zubair,2013;Sallis, 2012; Chen,2012).One of themain satisfactions of lecturers in the University is knowing that the graduates (students) who they taught are qualified people.The quality result is surely obtained from the practical application ofTotal Quality Managementapproachin the teaching and learning process(Zubair,in 2013; Sultan & Wong, 2010)

Research questions.

a). Does Intellectual Capital have a positive effect towards Lecturers’ Job Satisfaction?

b).Does Total Quality Management have a positive effect towards Lecturers’ Job Satisfaction?

c).Does Intellectual Capital have a positive correlation with Total Quality Management?

d).DoesIntellectual CapitalandTotal Quality Management simultaneously have a positive effect towards Lecturers’ Job Satisfaction?

2. Literature Reviews

Job Satisfaction

For an organization, the job satisfaction of the people involved in the organization itself is one of the conditions for success.Because the organization itself was formedon thesense of community and commitment to work together.People who work with "a sense of satisfaction with one another" will make an organization succeed.This shows that employee satisfaction is one of the requirements and one of the core for an organization to succeed.Although it is well known that the image of job satisfaction is very complex because it touches the multi-sense of the meaning of "satisfaction" that can vary between from person to person.Basically the "sense" of job satisfaction is an individual thing because each individual will have different levels of satisfaction in accordance with the values ​​prevailing in each individual.For these reasons the human resource management and human resource management research focus on studying and understanding employee job satisfaction within an organization (Noe et al., 2010; Byars & Rue, 2006).

According to Mullins (2007: 700), Nelson and Quick (2006) job satisfaction is an atmosphere of positive emotions or feelings of a person over the aspects of the employee and the scope of work they experience while working.Locke, quoted by Luthans (2011), gives a sense of job satisfaction as a cognitive, affective, and evaluative or attitude reaction by stating as a positive or pleasant emotional state ofanappraisal or experience ofone's work.Further, Baron et al., (2006: 540) explain job satisfaction as a person's attitude towards the work being done with full responsibility so that the person likes, is enthusiastically and thoroughly doing their work.

Feelings related to job satisfaction tend to reflect the employees' self-interpretation of past experiences, current and future expectations.The meaning of the results of job satisfaction can be seen from the values ​​of work and achievement results according to the responsibilities given to each employee.Job values ​​(viewed from the work) are the goals to be achieved in doing the job task.When the work is achieved, then an employee is considered to have job satisfaction.So, overall job satisfaction of an individual is the sum of job satisfaction over every aspect of the work multiplied by the degree of importance of the aspect of the work for the individual.Where, the amount of job satisfaction can be seen from the motivation from the employees themselves to do the best in their work.

There are three dimensions of job satisfaction, namely (1) an emotional response of a work result - though not visible but can be felt, (2) job satisfaction is often determined by the achievement of results because it exceeds what is expected - because when our work could be compared with the work of others, it turns out we are better.But more often those achievements are less awarded, (3) job satisfaction that is the way(attitude)we show our wellness and that we are better than other people (employees).

Lecturers are professional and scientific educators. As a professional job satisfaction should have existed within a Lecturer.However, since the lecturer is part of an operational university, the work attachment is within the rules of each University.In this case, the lecturer's job satisfaction needs to be considered and understood by the University in particular and the nation in general.Because of some findings indicate that the work satisfaction of Lecturers depends on the work situation faced by the lecturer at the university where the lecturer is working (Masum et al., 2015;Kaba, 2012).The main task of Lecturers is transforming, developing and distributing knowledge and technology to the public through the University's trinity principle.In supporting that profession, a lecturer is given a teaching certificate and profession allowance in accordance with the level or functional position ranging from (1) Lecturer, (2) Senior Lecturer, (3) Associate Professor, and (4)Professor.The educator's certificate given to a Lecturer, shows a formal evidence that the Lecturer is recognized as a professional.As a professional job satisfaction should have existed within the Lecturer.However, since the lecturer is part of an operational university, the work attachment is within the rules of each University.In this case, the lecturer's job satisfaction needs to be considered and understood by the University in particular and the nation in general. Due to some findings indicate that the work satisfaction of Lecturers depends on the work situation faced by the lecturer at the university where the lecturer is working (Masum et al., 2015, Kaba, 2012).

Job satisfaction is influenced by many factors.These factors have become the main variable in the research development which is of course prepared through (1) the general theory approach, (2) the results of previous studies, and (3)Job Descriptive Index(JDI).The following are given factors that determine Job Satisfaction namely: (1)Field of work, (2)Compensation, (3) Career Opportunities, (4) Supervision, (5) Working Team, (6) Work Environment and Facilities(Masum et al., 2015; Zhong& Mitchell, 2013;Gowan, 2012; Noe at al., 2010)

Intellectual Capital

Intellectual capital is an intangible capital that a person has in living and conducting everyday life.Ownership of intellectual capital has been owned by the person from birth, which then grows and grows in accordance with the interactions the person has in their life environment.Where the interaction of life through the environment, ranging from formal and non-formal such as; interaction with the closest people, family, friends, school and others become a useful capital for one's self (Nerdrum & Erikson, 2001).That is why, if a person has a good intellectual Capital, then that person has potential in themselves, for the organization, and for their own people (YehEdvinson, 2010).Intellectual capital represents a valuable resource for a person because they are able to act based on (1) knowledge, (2) circumstances - situations, and (3) interaction with others regarding what is known and experienced.So, when someone’s Intellectual Capital is managed properly, it would bean asset "more capable" of getting an advantageto work and get a better objective(Lerroet al., 2014;Sanchez et al., 2009).

A person’s Intellectual Capital could be assessed or measured on three elements:(1)humancapital,(2)structuralcapital,and (3)relational capital(BornemannWiedenhofer (2014); FallahiBaharestan (2014);Ramirez and Gordillo,2014;Ramirez et al., (2013); Siboni et al., (2013); Sanchez et al., (2009);The three elements measuring Intellectual Capital are generally applied to understand the intellectual parts (elements) an employee or lecturer who work in anorganization.The measurements include (a) knowledge, (b) experience and expertise, (c) the ability to use the facilities and creativity, (d) interaction with friends and stakeholders in implementing the tasks(Putri, 2015, Ramirez et al., 2014; Sokolovska et al., 2014). That is why Intellectual Capital owned by Lecturers is very important for a University because Lecturers are the determinant of intellectual result of Higher Education or University itself (Putri, 2015;BornemannWiedenhofer, 2014; Ramirez et al., 2013).

This concept understanding gives descriptions thatIntellectual Capitalof Lecturer is closely related with their duties as teachers.It shows that everything (abilities, intellect, experience, education, diligence, discipline, will, patience and other forms of behavior) are abstract becoming intellectual capital of Lecturers. Intellectual Capitalof Lecturers is an important element in carrying out a task.Because theIntellectual Capitalis a decisive tool in doing anything in everyday life. For universities, communities, and governments Intellectual Capital of Lecturersis the asset that determines the future because they (lecturers) are determinant of educational progress which at the same time will determine the progress of the intellectual Capitalof their students. The higherIntellectual Capitalis in the community, then the Intellectual Capital of the nation will be better also (Baron & Armstrong, 2007; Hall, 2008).

Total Quality Management

Total Quality Management (TQM)becomes a strategic business operational reference.The meaning ofTotal Quality Managementis elaborated by Besterfield et al.,(1999:1)as:Total - Made up of thewhole;Quality - Degree of excellence a product orservice provide;Management - Act, art, or, manner of handling, controlling, directing and evaluating the progress of something that would have been donein an organization.

Total Quality Managementhas changed the concept of the managementworld that ultimatelyexcellence will only be obtained if the resourcesproduceproducts(goods and services)that are"qualified".Theparties involved in the management of the Universityneed to adopt themselves because quality is, other than as astrategy and strategic qualitymanagement,also "therole of doingsomething based onquality"(Saezet al., 2011; Srinidhi 1998).This indicates that any elements of lecturer operational activities such asman,machines, methodarerequired to make quality as a work reference. Therefore, the approach to quality is the first and main operational target.As the main operational objective, management quality becomes "strategicmanagement"approach both to provide value for customer satisfactionas well as to improve customer perception (Caruana et al., 2000).

Total Quality Managementhas thedoctrinethat whatever is done byLecturersin their daily work let it be ensured that the work results are better than the results of previous work- in its original language calledcontinuous improvement.Due to continuous improvements then auniversity through the lecturers cansurvive (Saezet al., 2011).According to Foster (2007: 5-7) quality from the angleof (a) customers orconsumers- if customers are satisfied with products (goodsorservices)they received,they mention that the product is of quality,(b) products(goods or services)- if the attributes and components of products are favored by customers then the products are of quality, (c)value(valuebased)- if the price according to the value of the product then that product is of quality.