Impact Of Organizational Commitment On Employees Job Performance Management Essay

Purpose-The purpose of this study is to investigate the relationship between organizational commitment and performance of the employees in the banking sector of Pakistan. This paper includes Organizational commitment, its three dimensions/components and demographic variables with its affect on the performance of the banking sector’s employees.

Design/methodology/approach – A quantitative approach was used in data collection, using a 26-items and seven-point Likert scaled questionnaire administered to 100 participants with 60% usable response rate.

Findings – The results from the analysis indicate that comparative analysis of the organizational commitment and its three dimensions have the positive and significant relationship with employee’s job performance.

Originality/value – This paper demonstrates that the relationships between organizational commitment, dimensions and demographic variables on employee expression of commitment to their organizations.

Keywords- organizational commitment, individual performance, banking sector.

Introduction:

Pakistan’s banking sector is developing with the passage of time. Working environment has become more competitive with the increases in level of development of this sector. So for creating the competitive environment, employers are seeking high level of efficiency among the employees because productivity and output depends on employees (Currall et al. 2005).

The foundation to this research study is informed by the findings obtained through the review of literature assessing employee commitment using Meyer and Allen’s (2007) scale.

Organizational high productivity growth is identifying in term of level of attachment and loyalty of the individuals towards their organization. Individuals who are willing to put their efforts, accomplishing task and responsibilities and is to remain with the organizations, shows more commitment with organization.

Work is most important in their lives and they are successful and satisfy with their lives and career goals because of that organization. (Irene Hau-siu Chow-1994). Jackofsky (1984), found out that low commitment is leading to high rate of turn over, whereas higher the level of job satisfaction through job security entails high level of organizational commitment which further leads to improved employees job performance (Yousuf, 1997).

(Meyer and Allen 1990) pioneers of organizational commitment suggest three types of organizational commitment that are;

affective commitment which measures an employee’s emotional attachment, identification with, and involvement in the organization. normative commitment reflects pressures on an employee to remain with an organization resulting from organizational obligations.

Continuance commitment refers commitment associated with the costs that employees perceive are related to leaving the organization.

A study of Chughtai and Zafar (2006), among university teacher of Pakistan showed that highly committed teachers outperform vis-à-vis uncommitted teachers.

Organizational Commitment is seeking the same impacts on women as it is on men, but in some instances women react differently (Chusmir 1984). Higher education levels reduce commitment (e.g. Mathieu and Zajac, 1990; Tansky et al., 1997; Wahn, 1998). Connectivity of colleagues and the style of management can enhance commitment of employees and are considered as an important asset of the company (Nijhof, de jong, and Beukhof 1998).

More highly educated employees less likely to feel “locked into” the organization (Therese A. Joiner, Steve Bakalis 2006). (Pnina Petal, Deborah Court, Orly Michael 2009) finding shows that the higher role conflict will decrease the affective commitment. Relationship between organizational commitment and job performance is positive correlated. (Darwish A. Yousef 1999).

This study primarily focuses on the impact of low/high commitment towards the employee’s job performance. The study is conducted in banking sector of Pakistan, specifically in MCB, Al-Falah and Allied bank of Islamabad, Pakistan.

Literature review

There is some relevant literature available which is discussed below showing that related studies have been done on this subject.

(James w.bishop, k.dow scott, susan m.burroughs 2000) studied 380 production employees from an automotive manufacturing plant situated in southeast united states and found that there is a positive relationship between organizational commitment and job performance.

Affective commitment is strongly associated with employee job performance (Philip Shum, Liliana Bove, Seigyoung Auh 2007). (Thomas E. Slocombe, Thomas W. Dougherty 1998) their study revealed that there is positive relationship between affirmative commitment and job performance with this normative and continuance commitment has no relationship with job performance.

(Joyce rupert, karen a. Jehn, marloes l. Van engen, renee s. M. De reuver.) Have main contribution in defining organizational commitment. They revealed that minority individuals have more affective and normative commitment towards their organization than majority individuals. Furthermore pressure to Conform can increase the level of normative commitment among the employees

employees have positive affirmative attachment towards their organization will increase the productivity of the employees but normative have little or none relationship with performance furthermore informal discussion aims at convincing employees also have low impact on the organizational individuals. Individual’s value must be match with organizational value for more productivity. (haydn Bennett, mark durkin 1999).

VARIABLES

We are using variables as organizational commitment as independent variable and individual employee performance as dependent variable. Commitment has been further disintegrated into three parts affective, normative and continuance.

Meyer and Allen (1990) defined commitment as the employee’s feelings of obligation to stay with the organization: feelings resulting from the internalization of normative pressure exerted on an individual prior to or following entry. While the job performance of employees has been defined as work performance in terms of quantity and quality expected from each employee.

THEORETICAL FRAMEWORK

The relationship between independent variable, Organizational Commitment and dependent variable, Job Performance is shown diagrammatically in figure “A”. The independent variable, organizational commitment has positive or negative impacts on job performance of the employees, as the literature suggests that organizational commitment and job performance are significantly correlated.

The schematic representation of the two variables is shown in below;

Organizational commitment

– affective commitment ­­ƒ  Job performance

– normative commitment

– continuance commitment

Ind Variable Dep Variable

PROBLEM OF THE STATEMENT

The basic purpose of this research paper is to find out the relationship between organizational commitment i.e. affective, normative and continuous commitment and employees’ job performance in banking sector (MCB, AL-FALAH, ABL) of Pakistan.

HYPOTHESIS

From the above problem statement the following hypotheses are developed.

H 1. There is a positive significant relationship between organizational commitment and employees’ job performance?

H 2. Affective commitment is positively and significantly related to employee’s job Performance.

H 3. Continuance commitment is positively and significantly related to employee’s job performance.

H 4. Normative commitment is positively and significantly related to employee’s job performance.

METHODOLOGY

1) Sample

A total of 100 questionnaires were distributed and personally administered among employees of MCB, ABL and AL-FALAH based in sectors F/10, F/11 and G/9 of Islamabad. Filled 60 questionnaires were received, thus constituting a 60 % response rate.

2) Measure

A quantitative approach was used in data collection, using a 26-items seven-point Likert scale by questionnaire administered to 100 participants with 60% usable response rate.

For measuring Organizational commitment scale has been developed by Allen & Meyer (1991) and for job performance William & Anderson (1991).

Statistical methods

Statistical tool such as correlation matrix and regression were used for data analysis.

-Correlation matrix

Correlation test was conducted to verify the existence of relationship between the independent variable i.e. organizational commitment and the dependent variable employees’ job performance.

-Regression analysis

Relative strength of relationship between employees job performance and organizational commitment in banking sector was examined though regression analysis.

REFFERENCE

Aamir Ali Chughtai and Sohail Zafar (2006), Antecedents and consequences of Organizational Commitment among Pakistani University Teachers, Applied H.R.M Research, 11 (1), 39-64.

Darwish A. Yousef, (1998), organizational commitment: a mediator of relationships of leadership behavior with job performance and satisfaction in a non-western country.emerald.com.p-17.

Ellen F. Jackofsky 1984), Turnover and Job Performance: An Integrated Process Model the Academy of Management Review, 9 (1), 74-83.

John P. Meyer, Natalie J. Allen (1991), A three component conceptualization of Organizational commitment, Human Resource Management Review, 1 (1), 61-89.

(James w.bishop, k.dow scott, susan m.burroughs 2000) support, commitment and employee outcomes in a team environment. Journal of management 2000, 26.6.1119-1123.

(Philip Shum, Liliana Bove, Seigyoung Auh 2007) Employees’ affective commitment to change. www.emeraldinsight.com/0309-0566.htm. 1364

(Thomas E. Slocombe, Thomas W. Dougherty 1998) Dissecting organizational commitment and its relationship with employee behavior. Journal of business and psychology volume 12, no. 4, summer 1998.482-484

(Pnina Petal, Deborah Court, Orly Michael 2009) Job stress and organizational commitment among mentoring coordinators. www.emeraldinsight.com/0951-354X.htm.278

(Irene Hau-siu Chow-1994). Organizational Commitment and Career Development of Chinese Managers in Hong Kong and Taiwan. The International Journal of Career Management, Vol. 6 No. 4,p-6 MCB University Press, 0955-6214

(Joyce rupert, karen a. Jehn, marloes l. Van engen, renee s. M. De reuver.)

Tilburg university.p-16-18.

(Therese A. Joiner, Steve Bakalis 2006) The antecedents of organizational

Commitment: the case of Australian casual academics. www.emeraldinsight.com/0951-354X.htm.p-448.

(haydn Bennett, mark durkin 1999).the effects of organizational change on employee psychological attachment.wwwemerald.com.p-137-139.