Job satisfaction

Mathieu et al. (2016) has defined job satisfaction as a state in which an individual possesses a positive emotion with respect to his current job. On the contrary, an individual gets dissatisfied when expectations remain unfulfilled. Every employee joins an organisation with certain pre-assumptions, which transform into an unwritten psychological contract (Ramlawati, Trisnawati, Yasin, & Kurniawaty, 2021). The study byRamlawati et al. (2021) further highlights that job satisfaction arises due to the multiple factors, for instance, salary, opportunities for career growth, worker and supervisor relationship, recognition, and the job itself.

Job satisfaction in any organisation can be measured using fundamental indicators, including labor turnover and employee morale and discipline (Shanahan & Hopkins, 2019). When there is a small labor turnover and higher levels of work morale and discipline, the organisation will register a higher level of job satisfaction among the employees (Kong, Jiang, Chan, & Zhou, 2018). Conversely, when employees appear to have a higher turnover and lower level of discipline and work morale, it implies that organisation has failed to ensure job satisfaction among its employees (Ramlawati et al., 2021).

Job satisfaction is a perceived motivation of individuals towards their work, which enables them to abide by organisational rules and policies, and develop continuous interaction with the superiors, subordinates and colleagues (Bashir, Amir, Jawaad, & Hasan, 2020). Moreover, the study ofSims (2020) indicated that a satisfied employee always adjusts well to the favourable workplace conditions and displays sustained good performance till such conditions are maintained (Akinwale & George, 2020).

Job satisfaction is an employee appreciative and self-supporting judgment regarding current work. Management generally tends to ignore the fact that as the motivations of the employees are subjective in nature so is the case with their personal levels of satisfaction (Burić & Moè, 2020). It is; therefore, desired of conscious management that they should always try to understand their employees individually and gets fully involved to avail of their unique potential. Job satisfaction is an important element that affects the performance of any organisation (Akbar, Riaz, Arif, & Hayat, 2018; Kollmann, Stöckmann, Kensbock, & Peschl, 2020).

In the literature, job satisfaction is recognised as a primary and direct factor that leads to both employee turnover and productivity (Dodanwala & Santoso, 2022; Wang & Sun, 2020). Therefore, to ensure the completeness of the study, it was essential to consider job satisfaction as a precursor to turnover intention.

Abusive leadership

The topic of leadership has traditionally been a subject of interest for the practitioners and researchers in organisational behavior. The extensive literature on this topic covers the perspective of both leaders and subordinates, including their relationship's positive and negative outcomes. In the global context, research has identified various negative consequences resulting from toxic or abusive leadership (Lopez, Dohrn, & Posig, 2020; Wang et al., 2019).Fischer, Tian, Lee, and Hughes (2021) conducted a literature review that revealed how abusive supervision can affect subordinates attitudes, behaviors, relationships, and well-being.

Abusive leadership is defined as a kind of destructive leadership that forms the negative attitudes of employees towards work and respective organisations (Tepper et al., 2008). The concept of abusive leadership was introduced byTepper (2000) found that the adoption of abusive leadership behavior acts as a catalyst for numerous negative consequences, he argued that the more an individual experiences injustice in the course of performance of a certain job, the higher is the tendency of such employees to display negative reactions to the abusive leadership.

Many studies indicate that subordinates have suffered from abusive leadership behavior due to the positions and unrestrained power (PB, 2019). This includes behaviors such as ridiculing, angry outbursts, intimidation, withholding information, blaming subordinates for negative results, and taking credit for their work (Schmid, Verdorfer, & Peus, 2018). In other words, abusive leadership can be harmful and cause stress (Oliveira & Najnudel, 2023)

Many studies have revealed negative outcomes of abusive leadership behaviour adopted by supervisors. For instance, Mitchell and Ambrose (2007) have concluded that abusive leadership negatively affects subordinate job satisfaction and organisational citizenship behaviour. For instance,Nidadhavolu (2018) discovered that abusive leadership influences employee retention and job satisfaction. Similarly,Wang and Sun (2020) found that abusive supervision is linked to breaking employee silence, which affects work engagement and job satisfaction. Tanuwijaya and Jakaria (2022) found that abusive leadership has an adverse effect on job satisfaction.

Diversity management

Globalisation, workforce mobility and migration, and an ageing population have all contributed to the diversity of modern workforce. The formal recognition of this fact has given birth to the subject of, ‘International Human Resource Management (Ariss, Sidani, & Y, 2016). As a result, managers have emphasised managing their diverse workforce effectively by implementing policies and practices aimed at achieving diversity-related goals (Yadav & Lenka, 2020). Concurrently, scholars have shown a growing interest on the impact of workforce diversity, concluding that effective management of a diverse workforce can enhance organisational performance (Köllen, 2021)

The overwhelming attention drawn by diversity management, both scholarly and in practice, reflects changing dynamics of workplaces in the 21st century (Rahman, 2019). (Wise & Tschirhart, 2000) defined diversity as a blend of human similarities and dissimilarities across a wide spectrum of human social interactions; hence, diversity management becomes a necessity to achieve a common purpose or goal. Demographic characteristics that define diversity include gender, age, personality types, values, education level, religion, and socioeconomic and demographic characteristics (Vanderschuere & Birdsall, 2019). Thomas (1990), the first author who coined the term “diversity management,” argued that organisations can exercise diversity within their workforce to reinforce competitive advantage by managing employee differences more effectively.

Hence, researchers have contended that job satisfaction among diverse people will be greater when diversity management programs and practices are stronger in an organisation (Vanderschuere & Birdsall, 2019). Moreover, the existing literature shows that diversity management practices positively influence job satisfaction in the public sector, (Pitts, 2009) academia (Ordu, 2016) and also in the retail industry (Foster & Harris, 2005).

Theoretical Foundations

This study is grounded in the social identity theory, which explains how individuals become aware of their membership in a social group and identify themselves as either part of the group or excluded from it (Hogg, 2016). According to the theory, when an organisation becomes more diverse, its members tend to engage more actively in social categorisation and comparison processes (Tran, Garcia-Prieto, & Schneider, 2010). This grouping process leads to identifying out-group and in-group members, and may also cause personal biases and obstacles to social interactions (Scheepers & Ellemers, 2019).

However, the use and interpretation of social identity theory are mainly based on a Western viewpoint (Hsiao et al., 2019). This implies that the theory primarily emphasises intergroup relations, rather than intragroup interactions. The process of intergroup comparison is seen as a vital factor in the formation of in-group identity (Rather, 2017). Conversely, collectivist values such as cooperative behavior and promoting harmonious relationships with group members are often highlighted in Asian contexts (Peterson & Stewart, 2020). The conservation of resources (COR) theory is a valuable framework for comprehending the association between turnover intentions and abusive supervision (Hobfoll & Freedy, 2018). According to this theory, individuals have a strong drive to attain, maintain, and safeguard their resources (Hobfoll & Freedy, 2018). The main idea of the theory is that the depletion of resources has a more critical affect than the gain of resources, because it represents a significant threat to survival.

Moreover,Halbesleben (2021) noted that the loss of resources, whether potential or actual, can be a more significant motivational factor for resource gain. As an interpersonal stressor, abusive supervision is particularly demanding, stressful, and threatening (Wang et al., 2019). It reduces leadership support and can overburden individual capacity to respond to such expectations (Aryee, Sun, Chen, & Debrah, 2008). As a result, it is reasonable to hypothesise that being exposed to abusive supervision over an extended period can lead to psychological distress, which can, in turn, cause employees to consider leaving their job.Tran, Nguyen, Nguyen, and Nguyen (2020) conducted a study which showed that promoting diversity and acknowledging its importance in an organisation has a positive impact on job satisfaction (Mansoor, Tran, & Ali, 2021). These relationships were found to be influenced by an organisation diversity climate. Similarly, (Ordu, 2016) found that diversity management positively correlates with job satisfaction.

Furthermore, several studies have looked into the relationship between job satisfaction and the intention to leave a job. The prevailing viewpoint among scholars is that there is an inverse relationship between job satisfaction and turnover intention (Ali & French, 2019). This implies that low job satisfaction is associated with a higher likelihood of leaving one's job.Ankomah, Kwarteng, and Osei (2020) conducted a study which revealed that job satisfaction among employees is contingent upon their work environment and demographic factors. Moreover, the study found a strong correlation between job satisfaction and turnover intention.

In the light of the foregoing literature review discussion, the following four hypotheses have been formed:

H1: There is a significant positive relationship between diversity management and job satisfaction.

H2: There is a significant negative relationship between abusive leadership and job satisfaction.

H3 There is a significant negative relationship between job satisfaction and turnover intention.

H4: There is a significant negative relationship between diversity management and turnover intention.

H5: There is a significant positive relationship between abusive leadership and turnover intention.

H6: Job satisfaction mediates the relationship between diversity management and turnover intention.

H7: Job satisfaction mediates the relationship between abusive leadership and turnover intention.

The hypothetical relationships among all the four variables i.e diversity management, abusive leadership, job satisfaction and turnover intention have been presented as a conceptual framework in Figure 1.

Measurement of Variables

The 8-item scale measuring abusive leadership was adopted from the study conducted by Lin, Ma, and Johnson (2016). Diversity management was measured using a three- item scale taken from previous research (Choi, 2009; Pitts, 2009). The construct of job satisfaction was measured using a 10-item scale adopted from the study of Cooper, Rout, and Faragher (1989). Finally, turnover intention was measured using a 3-item scale adopted from the study of (Long, Thean, Ismail, & Jusoh, 2012). All of the constructs were measured using a 5-point Likert scale ranging from strongly disagree to strongly agree. The responses, for example, were coded as 1 for strongly disagree, 2 for disagree, 3 for neutral, 4 for agree, and 5 was assigned to strongly agree. For analysis purposes, SPSS and Smart-PLS were used. The demographics of the collected data were presented using SPSS, whereas the structural and measurement models have been run using Smart PLS to validate the results.

Measurement model

The SMART-PLS was employed to assess the reliability and validity of each construct. The Cronbach Alpha and composite reliability values were used. To ensure an acceptable value of Cronbach Alpha, a pilot survey was conducted over 25 respondents before serving the questionnaire to the entire survey frame. Besides that construct, validity was assessed by employing average variance extracted values.

Sekaran and Bougie (2016) were of the view that the value for composite reliability and Cronbach’s Alpha should be greater than 0.70 and the acceptable value for average variance extracted (AVE) should be greater than 0.50 (Hair, Hult, Ringle, & Sarstedt, 2016). Table 2 below shows that the average variance extracted values and values regarding reliability are more than their required thresholds. Table 2 indicates the number of items used to measure each of the constructs along with the factor loadings which are also within the prescribed threshold.

Discriminant validity under the Fornell-Larcker criterion is presented in Table 3. Fornell and Larcker (1981) argued that square root of AVE must surpass its highest correlation with other constructs in the model. However, (Henseler, Ringle, & Sarstedt, 2015) argue that this criterion is ineffective, particularly when there are slight variations in the indicator loadings of a construct (e.g., loadings ranging from 0.65 to 0.85). Thus, the Fornell-Larcker criterion, as argued by Radomir and Moisescu (2019) usually fails to recognise issues with discriminant validity in practical applications accurately, and it is recommended to avoid it (Hair et al., 2016). Instead, (Hair et al., 2021) proposes using the heterotrait-monotrait ratio (HTMT) of correlations (Henseler et al., 2015) as a more reliable choice to measure discriminant validity.

Hair et al. (2016) believe that HTMT as the latest standard used for assessing discriminant validity and the acceptance value of HTMT should be less than 0.90. Table 4 shows that the HTMT values are less than 0.90; hence, it confirms the discriminant validity among the variables of our theoretical framework.

Structural model

After presenting the reliability analysis and discriminant validity results, this study depicts the results of the structural model in Figure 2. These results comprise total effects and path effects as shown in Table 5; Table 4. After determining the measurement model, hypothesis testing was performed. Table 5 shows the result of H1 & H2. It was found that abusive leadership has a positive significant relationship with turnover intention with a beta value of 0.308, a standard deviation of 0.059 and a p-value of 0.000, less than 0.05. Hence, it confirms the link between abusive leadership and employee turnover. People having different cultures and backgrounds perceive abusive leadership differently.

Mediation analysis

A mediator variable facilitates the mediation effect between independent and dependent variables. Put simply, a mediator serves as an explanatory variable that improves our understanding of the connection between the independent and dependent variables (Preacher & Kelley, 2011). In the present study, job satisfaction was considered a mediator between diversity management and turnover intention and between abusive leadership and turnover intention.

The mediation analysis conducted using SMART-PLS adheres to the principles outlined by (Hair et al., 2021) andPreacher and Hayes (2008) and utilises the bootstrapping technique to achieve a greater level of statistical power (Hair et al., 2016). As per the recommended approach of SMART-PLS for testing mediation, it was anticipated that exogenous variables would have a considerable impact on the mediator variable, and the mediator variable would significantly impact the endogenous variable (refer to Table 6).

The study found that job satisfaction significantly affects the relationship between diversity management and turnover intention and between abusive leadership and turnover intention. Therefore, the hypothesised mediatory relationship was confirmed in the present study.