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Chapter 3
METHODOLOGY

This chapter explains the methods and procedures that were employed by the
researcher in order to find answers to the problem. This includes the research design,
population and sampling technique, instrumentation, data gathering procedure and
statistical treatment of data.

Research Design
The researcher used the descriptive research method, an approach considered
appropriate to answer the research questions. The design of this research is descriptivecorrelational. It examined and considered the relationship of management control
system, and human resource management practices to organizational performance. A
descriptive-correlational study attempts to determine the relationship of two variables
whether the relationship is perfect, very high, high, marked or moderate, slight or legible
(Palmer-Calmorin & Calmorin, 2007).
The correlational design was utilized to determine if there was a significant
relationship of management control system and human resource management practices to
organizational performance. Therefore, the correlation procedures allow researcher to
make inferences about the relationship between two or more variables (Cresswell, 2003)

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Population and Sampling Techniques


This research involved SDA Higher Educational Institutions in Indonesia,
Philippines, and Thailand . The Higher Educational Institutions are owned and operated
by the Seventh-day Adventist Church in the Southern-Asia Division (SSD).
The population of this research were the regular employees of higher education
institutions under the supervision of the Southern-Asia Division (SSD). The higher
educational institutions are as follows: Indonesia Adventist University, Klabat
University, Surya Nusantara Adventist College, Adventist University of the Philippines,
Central Philippine Adventist College, Manila Adventist Medical Center and Colleges,
Naga View Adventist College, Northern Luzon Adventist College, and Asia-Pacific
International University. Data was gathered from all of them using the questionnaire
designed for the study. The questionnaire was designed based on the researchers review
of related literature and previous studies, the conceptual framework, as well as key
informants from respondent organizations. The total number of regular employees of
each institution was taken from the president and HRM director of each institution.
The sample size was computed using the Slovins Formula to establish the
minimum number requirement of respondent which is n = N/(1+Ne2), where N =
population size, and e = error of tolerance. It was computed as follows: n = 1071/(1 +
(1071*(0.05*0.05))) = 291. This ensured that enough respondents were considered in this
study.
To ensure that the minimum number of respondent is collected, the researcher
distributed 654 questionnaires to the respondent institutions but only retrieved 496.
From the total of 496 retrieved questionnaires, 13 respondents did not answer the

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questionnaires. There were 483 questionnaires encoded and used for data processing. The
researcher was only able to retrieve 29 of the questionnaires distributed in Asia-Pacific
International University because most of the respondents went home for vacation at the
time data was collected. The number of employees of institutions, number of
questionnaires distributed and retrieved are shown in Table 1.
Table 1
Respondents Population and Questionnaires Distribution and Retrieved
Distributed
Questionnaire Retrieved
Institution
Population s
Questionnaires
Adventist University of Indonesia
120
112
81
Adventist University of Philippines
348
144
127
Asia-Pacific International University
168
60
29
Central Philippine Adventist Colleges
80
56
52
Klabat University
131
80
57
Manila Adventist Medical Center and
Colleges
Naga View Colleges
Northern Luzon Adventist Colleges
Surya Nusantara Adventist Colleges
Total

60
35
83
46
1071

60
35
64
43
654

45
23
51
31
496

The convenience sampling technique was used in this study. This is a sampling
design which selected the most accessible sample what to immediately get their reaction
to certain issues (Calderon & Gonzales, 2004).
Respondents Profile
This section explains the information of employees of the nine Seventh-day
Adventist higher educational institutions in SSD. It shows the profile respondents such as
age, educational attainment, position, length of service.

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Employee Distribution by Age


Figure 2 shows the distribution of respondents by age group whose age ranged
from 30 and below to 60 years old. Above 6.9% came from the age group below 30 years
old, 27.2% came from the age group 3039 years old, 34.1% came from the age group
4049 years old, 24.9% came from the age group 5059 years old, and 6.9% came from
the age group 60 years old and above.

Age
40.00%
40 - 49 years old; 34.10%
35.00%
30 - 39 years old; 27.20%
30.00%
50 - 59 years old; 24.90%
25.00%
20.00%
15.00%
30 years old below; 6.90%
60 years old and above; 6.90%
10.00%
5.00%
0.00%

Figure 2. Distribution of respondents by age.

Employee Distribution by Educational Attainment


The data in Figure 3 using pie chart shows the distribution of respondents by
educational attainment. Among the 483 respondents from the nine Seventh-day Adventist
higher education institutions, 3.8% were high school graduates, 26.2% were college

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graduates, 16.8% were with masters units, 36.4% were masters degree holders, 7.7%
were with doctoral units, and 9.1% were doctorate degree holders.

Educational Attainment
40.00%

Master degree holder; 36.40%

35.00%
30.00%
College; 25.50%
25.00%
20.00%

With master's units; 16.80%

15.00%
10.00%

Doctorate degree holder; 9.10%


With doctoral units; 7.70%

High school; 3.80%


5.00%
0.00%

Figure 3. Distribution of respondent by educational attainment.

Employee Distribution by Position


Figure 4 shows the distribution of respondents by position. Among the 483
respondents from nine Seventh-day Adventist higher education institutions, 5.9% were

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administrators, 21.8% department heads, 42.1% were faculty members, and 30.2% were
staff members.

Position
45.00%

Faculty; 42.10%

40.00%
35.00%

Staf; 30.20%

30.00%
25.00%

Head of department; 21.80%

20.00%
15.00%
10.00%

Administrator; 5.90%

5.00%
0.00%
Administrator

Head of department

Faculty

Staf

Figure 4. Distribution of respondents by position.


Employee Distribution by Length of Service
The result of the data in Figure 5 shows the distribution of respondents by length
of service. Among the 483 respondents who served the institutions from nine Seventhday Adventist higher education institutions, 17.3% had served for 5 years and below,
20.5% had served for 610 years, 15.4% had served for 11 5 years, 13.2% had served
1620 years, 14.4% had served for 2125 years, and 19.2% had served for 26 years and
above.

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Length of service
25.00%

6 - 10 years; 20.50%
26 years and above; 19.20%
20.00%
5 years and below; 17.30%
11 - 15 years; 15.40%
21 - 25 years; 14.40%
16 - 20 years; 13.20%
15.00%
10.00%
5.00%
0.00%

Figure 5. Distribution of respondent by length of service.

Instrumentation
The researcher used a self-constructed questionnaire for the data gathering. The
questionnaire was constructed under the guidance of the adviser, based on related
literature and studies. The questionnaire is divided into four parts. Part I consists of the
respondents demographic profile: age, educational attainment, position, length of
service. Part II deals with the respondents perception on the Management control system
involving strategic planning, budget preparation, operation and measurement, and
reporting and evaluating dimensions. Part III deals with the respondents perception on
the level of human resource management practices involving recruitment, selection,
training and development, performance management, compensation, and relationship
dimensions and Part IV deals with respondents perception on the level organizational

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performance relating to learning and growth, business and production process, and
financial. In order to construct the questionnaire, the researcher asked permission from
his adviser to allow him to adopt 40% of his instrument items from human resource
management practices and organizational performance.
The instruments were translated into Bahasa Indonesia (Indonesian Language) by
experts in Indonesia language for data gathering in Adventist University of Indonesia,
Klabat University and Surya Nusantara Adventist College.
The researcher submitted a draft of self-constructed questionnaire for content
validation. The content validation was done by the adviser, and eleven experts (see
Appendix C). After content validation, the questionnaire was revised to incorporate the
suggestions of the adviser, and the 10 experts. The revised questionnaire was used and
pilot-tested. The pilot study was conducted among the faculty and staff of Adventist
University of the Philippines who were not included in the final data gathering. A total of
70 regular workers participated in the pilot study. Data for the pilot study were collected
in NovemberDecember 2012. After collecting data from the pilot study, the researcher
encoded the data and submitted the data to the university statistician for instruments
reliability test. Suggestions given by the statistician based on the reliability test were
considered in the revision of the questionnaire. The reliability alpha coefficients of the
selfconstructed questionnaire for Management control system, human resource
management practices, and organizational performance are shown in Table 2.

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Table 2
Reliability of Instruments
Variables
Management Control System
Strategic Planning
Budget Preparation
Operating and Measurement
Reporting and Evaluating
Human Resource Management Practice
Recruitment
Selection
Training and Development
Management Performance
Compensation
Relationship
Organizational Performance
Learning and Growth Performance
Business and Production Performance
Financial Performance

Items

Reliability
Coefficient

17
14
15
13

.9302
.8706
.9003
.9068

13
11
17
16
15
13

.7933
.7021
.9068
.7290
.8682
.9049

12
10
15

.9051
.8387
.8900

The instrument used a five-scale of measurement in which respondents


indicated their answer. The respondents were asked to rate each statement using a fivepoint Likert Scale with the descriptive interpretation as presented in Table 3.
Table 3
Likert Scale Interpretation

Likert Scale
Response
Scale
5
4
3
2
1

Degree of
Intensity
Always
Oftentimes
Sometimes
Rarely
Never

Verbal Interpretation
Management
Human
Control
Resource
System
Practices
Very Good
Good
Fair
Poor
Very Poor

Weight
Mean
Interval
Organizational
Performance
4.50 5.00
3.50 4.49
2.50 3.49
1.50 2.49
1.00 1.49

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Data Gathering Procedures


After the approval of the research proposal by the research committee and after
having confirmed the instrument to be valid and reliable, the research secured a request
letter from the Director of the Center for Graduate Studies to conduct the research in
Higher Adventist Educational Institutions in Indonesia, Philippines, and Thailand. All
respondents were assured to be treated as anonymous in order to protect the identify of
institutions and the respondents were informed of the intent and the purpose of the
research. They were assured that there is no foreseen harm, and that reporting of the
research findings would not refer to any particular education institution or individual.
Before the data gathering was conducted, the researcher sent a request letter
through email to conduct data gathering from their regular employees of institution in the
Philippines, Malaysia, Indonesia and Thailand. The researcher also contacted some
presidents of institutions through telephone. The institutions contacted by researcher
through email and telephone, only nine institutions replied to the email and accepted the
request of the researcher to do data gathering in their institutions.
After seeking permission from the management of the institutions, the researcher
directly visited each institution and met with the officer or secretary of president and
submitted the request letter from the Director of Center Graduate Studies of Adventist
University of Philippines (AUP). Some of the questionnaires were given directly to the
respondents, and some were given to head department to distribute the questionnaire
because during that data gathering, the researcher could not meet them.
For the financial statements of institutions, the researcher sent a request letter to
the treasurer of Southern-Asia Pacific Division (SSD), and the treasurer welcomed the

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researcher to get the audited financial statements of the institutions. Among the nine
institutions, the researcher got only four financial statements for the year 2010 and 2011.
The purpose of taking financial statement of institutions was to support the perceptions of
respondents about the financial performance of their respective institutions.

Statistical Treatment of Data


To be able to analyze, interpret and determine the implications of date gathered,
the statistical techniques Employed using the Statistical Package for Social Science
(SPSS) were as follows:
1. The mean and standard deviation were used to determine the respondents
perception on the extent of higher education institution in terms of
management control system, human resource management practices and
organizational performance.
2. Correlation analysis using Pearsons Product Moment was used to determine
the significant relationship between management control system, human
resource management practices and organizational performance. Pearsons
product moment was used to determine the relationship between management
control system, human resource management practices and organizational
performance considering the respondents profile.
3. Analysis of Variance (ANOVA) technique was used to determine if there is
significant difference in the level performance when respondent profile is
considered in terms of age, educational attainment, position,and length of
service.

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4. Regression analysis was used to determine the dimensions of management

control system dimensions and human resource management practices that


best predict organizational performance.

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