Impact Of Organizational Commitment On Job Performance Management Essay

Now a days almost in every organization job performance and organizational commitment has been given the greatest importance. It is vital that every employee of an organization needs to give his best performance, along with highest commitment to organization goals for its success in long term. Pakistan banking sector has progressed in recent years. Many international banks have opened their branches and merger between different banks were seen. Our research will concentrate on bank employees how much they are committed to their work and what level of performance they are giving in their designated position. The research will help us to understand the potential aspects that would lead better performance and factors which would lead high commitment of employees with organization. Such researches are needed in countries like Pakistan where rules and norms of work place are completely neglected. Individuals in a firm are as important as firm it-self. Without them it doesnt exist or function. The primary focus of this research paper is to investigate the relationship between organizational commitment i.e. affective, normative and continuous commitment and employees job performance in banking sector of Pakistan focusing on employees of public and private banks.

The study of employees job performance and organizational commitment is of primary importance to the top-level management of the organizations. Somersl & Birnbaum (1998) studied the relationship of career commitment to performance effectiveness and resulted in a positive relationship. Job satisfaction is not the single dependent variable of commitment; it also has various other outcomes in the organizations. Jackof sky (1984), found out that low commitment is leading to high rate of turnover, 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). Job performance has been defined as work performance in terms of quantity and quality expected from each employee (business dictionary). Pioneers (Meyer and Allen1990) of organizational commitment suggest three types of organizational commitment that are, affective commitment which measures an employee’s emotional attachment to, classification 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. Organizational Commitment is seeking the same impacts on women as it is on men, but in some instances women react differently (Chusmir 1984). Connectivity of social group 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). Commitment of employees can be an important instrument for improving the performance of the organizations. The job performance of employees has been (Yu, 1996) defined as work performance in terms of quantity and quality expected from each employee. In most of the organizations the high rate of stress leads to lower satisfaction and in turn produces very low organizational commitment (Elangovan 2001). The higher level of communication in organization led to higher level of commitment and there by increased performance (Chen, Silverthorne and Hung 2005). A study conducted by Chughtai and Zafar (2006), among university teacher of Pakistan concluded that highly committed teachers outperform in comparison with uncommitted teachers. This study primarily focuses on the impacts of low/high commitment towards the employees job performance. This study will be conducted on the banking sector of Pakistan focusing on employees in private and public banks.

Literature review

(Ladebo, 2003) This study investigated the relationship between the organizational commitment and job performance of faculty involved in agricultural training and research in Nigerian universities. Organizational commitment is a multidimensional, comprising an affective commitment, the employees psychological attachment, and involvement in the organization. Continuance commitment, the cost an employee associates with leaving the organization, while normative commitment refers to the employees feelings of obligation to remain with the organization (Allen & Meyer, 1990). Universally, faculty are expected to, and indeed do, engage in varying degrees in teaching, research and service; but often, faculty performance is usually assessed and rewarded based on scholarly output and publication counts, with less priority being accorded to the performance of teaching and service roles (Massy & Zemsky, 1994; Republic of Nigeria, 1999; Milem, Berger, & Dey, 2000). Independent variable commitment scale was adapted from Jauch, et al., (1980). The original 18-item scale was initially subjected to principal component analysis (PC), to determine its dimensions. Dependent variable job performance is based on the self-report of individual faculty of total career publications at the time of the study. The result of Principal component analysis showed that the commitment of the faculty is characterized by three facets: orientation toward the profession, peer group, and the employing institution. The commitment has no direct significant influence on the productivity of the faculty, but only indirectly as an individual faculty stays longer on the job and advances through the ranks. However, the three commitments do not have direct influence on the performance of the faculty, but influence indirectly as the faculty stays longer on the job and advances through the ranks. The results of such research are likely to be less relevant to the local farm conditions. This might explain why farmers selectively adopt improved technologies in Nigeria.

(UYGUR & KILIC, 2009) The investigation studied the level of organizational commitment and the job involvement of the personnel at Central Organization of Ministry of Health in Turkey. Organizational commitment is defined as the overall strength of an employees identification and involvement in an organization. The way for employees to be satisfied with the organization in which they work can be said to be as crucial as providing goods and services (Çöl, 2004). In this research they took the positive effects of organizational commitment. Organizational commitment has become an issue of great importance to be dealt with, because it helps to increase employee performance (Shore & Martin, 1989; Meyer et al., 1989; Meyer et al., 1993; Meyer et al., 2002; Siders et al., 2001; Jaramillo et al., 2005) and helps to minimize turning up late to work, absenteeism, and leaving. Job involvement is related with the work motivation that a person has with a job (Bashaw & Grant, 1994; Hackett et al., 2001; McElroy et al., 1995; Blau, 1986; Blau & Boal, 1987; Balay, 2000). The research employed a questionnaire survey as the main tool to gather data. 210 subjects, selected randomly, were distributed the questionnaire forms. The first part of the questionnaire contained the questions related to the demographic attributes of the employees. The second part employs a 15-item scale (Mowday et al., 1979; Mowday et al., 1982) to determine the level of organizational commitment. In the third part, a job involvement scale, designed by Kanungo (1982) and developed by Karacaoglu (2005), was employed to find out the level of job involvement. Likerts five-point scale was employed. This study has revealed that there is a moderate positive correlation between the organizational commitment and job involvement levels of the employees working for the Central Organization of the Ministry of Health. Firstly the respondents tend to response positively to most of the question related to their firm. The population for research was restricted to specific group and cannot be applied to the general population.

(Sharma & Bajpai, 2009) Despite an increasing number of studies on organizational commitment, no unifying work is focused on the measurement of degree of difference in organizational commitment in a public sector organization and a private sector organization in Indian context. Organizational commitment is a feeling of dedication to ones employing organization, willingness to work hard for that employer, and the intent to remain with that organization (Meyer and Allen, 1988). A respected theory proposes that there are three components to organizational commitment: affective, continuance, and normative commitment (Meyer and Allen, 1991). Organizational commitment is widely described in the management and behavioral sciences literature as a key factor in the relationship between individuals and organizations. There is no doubt that organizational commitment leads to job satisfaction. Job satisfaction has been recognized as a component of organizational commitment (Kovach, 1977). More specifically organizational commitment can be understood as a predictor of job satisfaction. LaLopa (1997) stated that Job satisfaction is a significant predictor of organizational commitment. According to Brown and Peterson, (1993) job satisfaction is an ancestor to organizational commitment. They also suggested that the organizational commitment relationship from a more detailed perspective of job satisfaction facets rather than global or overall job satisfaction. Subject of the present study are selected from managerial and non-managerial staff of one public sector and one private sector organization. For sampling, simple random sampling is used. Total 250 subjects are randomly selected from each organization and were given same questionnaire, in which, respondents indicated their opinion about organizational dimensions. Organizational commitment score is high for public sector organization as compared to private sector organization. It seems that due to factors like job security and status employees exhibit higher level of commitment in public sector organization. On the other hand, private sector organizations are not able to provide this kind of psychological security to employees. As a result, employees always feel insecure about their job status and are in mode of changing the job when there will be an appropriate time. Regression results showed a significant positive linear relationship between job satisfaction and organizational commitment. Due to time constraint many public and private sector organizations have not been catered and because to cost constrain, geographic coverage of the study is limited.

(Karim, 2010) This study attempted to assess the impact of five work related variables (role conflict, role clarity, job autonomy, job performance feedback and job involvement) on organizational commitment and job satisfaction. Additionally, the study was carried out to determine whether this set of five work related variables collectively had an impact on both organizational commitment and job satisfaction and more importantly whether the impact is greater for organizational commitment than for job satisfaction or vice versa. The topic of organizational commitment and job satisfaction has received considerable empirical attention from scholars and researchers in the field of organizational behavior, organizational psychology and human resource management (Meyer and Allen 1997; Spector 1997; Spector 2000; Cohen 2003; Klein, Becker and Meyer 2009). The target population for this study was university librarians (professionally trained library employees) in all the major university libraries in West Malaysia. a sample size of 222. The findings for this study were based on the analysis of responses from the 139 usable questionnaires that were returned. Job involvement has been conceptually defined by Lodahl and Kejner (as cited in Cook et al, 1981) in terms of the extent to which employees personally identify with their work. The five work related variables that were employed to examine their impact on organizational commitment among university librarians in Malaysia, only three were found to correlate. The only work related variable that predicts the variation in both organizational commitment and job satisfaction appears to be role clarity. The findings from this study should be viewed cautiously due to several methodological limitations. As with all types of data collection techniques, the self-reported or self-administered questionnaire too has its share of shortcomings. One of the problems facing cross-sectional survey investigators is that of social desirability. Longitudinal and experimental studies need to be conducted to provide stronger causal evidence of how a set of work related variables can affect the variation in organizational commitment and job satisfaction.

(Gunlu, Aksarayli, & Percin, 2010) The aim of this paper is to identify the effects of job satisfaction on organizational commitment for managers in large-scale hotels. In addition, to examine whether there is a significant relationship between the characteristics of the sample, organizational commitment, and job satisfaction. It should be noted that job satisfaction is a key factor to maintaining high performance and efficient service, which will directly increase the productivity of the organization. Mowday et al. (1979) underlined a concept named as attitudinal commitment, whereas Price and Mueller (1986) defined it as behavioral commitment. Another approach was that of Meyer and Allen (1991). They suggested that organizational commitment was a multidimensional three-component model. Most of the research has treated job satisfaction as an independent and organizational commitment as a dependent variable (Gaertner, 1999; Jernigan et al., 2002; Lok and Crawford, 2001; Mowday et al., 1982). The data was collected through structured questionnaires that were administered to large-scale hotel managers in the tourism industry. The regression analysis results suggest that the job satisfaction components; intrinsic, extrinsic and general; have a significant relationship with normative and affective organizational commitment. According to the findings, normative commitment obviates affective commitment by the effect of seasonality. Managers working in city and/or independent hotels feel affective commitment more when compared with the others. For future research being conducted in the tourism industry, it is desirable to adapt Meyer and Allens Three Component Model of Organizational Commitment and Minnesota Job Satisfaction Questionnaire to the characteristic. In addition, cross-cultural researches comparing job satisfaction and organizational commitment of managers in different tourism destinations should be encouraged.

(Zhen Xiong Chen, 2003 ) Study examined the relationship between the three components of organizational commitment and performance, defined as in role performance and organizational citizenship behavior (OCB). Participants in this study were employees of a large pharmaceutical manufacturer in South China with about 800 employees. A total of 253 supervisors (253 subordinates and 102 supervisors) remained and constituted the sample for this study. To examine the structure of the three components of commitment measures (Meyer et al., 1993) in a Chinese setting and Also conducted CFAs to examine the uniqueness of the three performance measures in-role performance, altruism (OCB), and conscientiousness (OCB). To test the hypotheses proposed in this study, hierarchical moderated regression procedures were used (Aiken and West, 1991; Dooley and Fryxell, 1999). The study also provides some evidence regarding the dimensionality of the three components of commitment. First of all, different from the finding of McGee and Fords study (1987), the results suggest that the two sub dimensions of CC such as low perceived alternatives and high personal sacrifice are not distinguishable. Results suggest that manager can enhance employee performance by understanding and managing the nature of employee commitment to the organization. Some limitations need to be noted when studying the results of this study. First, the cross-sectional nature of the data suggests that cause-effect relations among the three components of commitment and performance. Future research shows that use of longitudinal design will be particularly useful in establishing the causal order of the relationships reported in this study. Secondly it is focused on single culture and cannot be applied on general public.

(Dr. Li Yueh Chen, 2004)This study examines specific employee behaviors associated with transformational and transactional leadership and how they both moderate and mediate effects of organizational culture and commitment. Surveys were distributed to 84 Taiwanese manufacturing and service organizations with a total of 1,451 employees. Of the 57 organizations, 34 organizations are in the manufacturing industry and 23 are in the service industry. A questionnaire combining instruments and demographic questions has been developed specifically for this study. This questionnaire has been translated into Chinese to for the respondents who are citizens of the China. It consists of six parts organizational culture, leadership behavior, organizational commitment, job satisfaction, job performance and demographic questions. (1) significant positive correlations between transformational leadership behaviors and organizational commitment and culture, (2) significant positive correlations between organizational commitment and organizational culture and job satisfaction, but no significant correlation with job performance, and (3) significant positive correlations with organizational culture and job satisfaction, but not significantly correlated with job performance. Previous research has looked at specific human resource behaviors associated with the transformational and transactional leadership models as both moderating and mediating effects of organizational culture and commitment respectively. Yet none has examined these relationships in Asian settings. This study, therefore, is unique in that it has helped to fill this gap in an effort to improve our understanding of the role of leadership in the global environment.

(Fernando Jaramillo, 2005) This article investigates the relationship between organizational commitment and job performance is positive and stronger for sales employees than for non-sales employees, a meta-analysis that include studies conducted over the past 25 years across 14 countries . Meta-analysis is a statistical method that allows a systematic synthesis of quantitative empirical evidence of research studies and is capable of finding effects or relationships between constructs (Lipsey and Wilson, 2001). Meta-analysis is based on six eligibility criteria: effect size, measures, linguistic range, sample origin, time frame, and publication type. This meta-analysis shows that the relationship between organizational commitment and job performance is stronger for sales compared to non-sales employees. It was also found that the relationship between organizational commitment and job performance is stronger for groups than individualistic cultures. The nature of meta-analysis as a statistical method, this study has several limitations. First, although attention was given to reduce selection bias, similar studies with different results may have been ignored. This should encourage redoubling of effort toward future research to identify other variables that may explain job performance. Also, although this meta-analysis found a positive correlation between organizational commitment and job performance overall, no claim of causality between the two variables is presented.

(Khan, Ziauddin, Jam, & Ramay, 2010) This study investigated the impact of Organizational Commitment on employee job performance from public and private and public sector employees of oil and gas sector in Pakistan. Total of 230 questionnaires were distributed and personally administered among employees of OGDCL, OMV and SNGPL in Pakistan. Filled 153 questionnaires were received. The scale used to measure organizational commitment in terms of effectiveness, normative and continuance was developed by Allen and Meyer (1991) and the scale used for measuring job performance has been developed by Willams and Anderson (1991), using four items on a five point scale. All the results in Pakistani data are consistent with previous literature. All three types of commitments showed positive relationship with employee job performance. Managers working in Pakistani environment and worldwide should pay special attention to background of organizational commitment and all the factors which encourage employee commitment. Many organizations facing productivity problem should get solution of increased employee performance by encouraging commitment.

(Anisa, 2012) This paper examines the effect of organizational commitment on Organizational Citizenship Behavior (OCB) in a telecommunication organization. Meyer and Allen (1991) reported that the most general forms of organizational commitment are: (a) affective commitment; (b) continuance commitment; and (c) normative commitment. In order to achieve the objectives of the study, a draft questionnaire was developed based on comprehensive reviews of the extensive literature. The total numbers of employees were 725 which is the total population of the study. Simple random sampling method was adopted. SEM approach was used to develop model. SEM is a second generation multivariate technique gaining popularity in management research (Fornell and Bookstein, 1982). The study hypotheses were tested by examining the direction, size and significance of the paths from independent variables to dependent variables. The results showed the study developed and tested a structural model linking affective commitment, continuance commitment and normative commitment to OCB. Except affective commitment to OCB, all other paths were found to be significant. This study provided insights into different types of organizational commitment and their differential effect on OCB. The sample size in the present study is small and it might have prevented an exact assessment of the relationship among variables. The organization that participated in the present study was a public sector organization; the results may not be generalized.

Research hypothesis:

The following proposition (hypotheses) is developed.

H 0. There is not a positive significant relationship between organizational commitment and employees job performance?

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

H 0. Affective commitment is not positively and significantly related to employees job Performance.

H 1. Affective commitment is positively and significantly related to employees job Performance.

H 0. Continuance commitment is not positively and significantly related to employees job performance.

H 1. Continuance commitment is positively and significantly related to employees job performance.

H 0. Normative commitment is not positively and significantly related to employees job Performance.

H 1. Normative commitment is positively and significantly related to employees job Performance.

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 following

Organizational commitment

􀂷 Affective

􀂷 Normative

􀂷 Continuance

Job performance

Variables

The variables under study are organizational commitment as independent variable and employees job performance as dependent variable. Commitment has been further disintegrated into three parts affective, normative and continuance. Meyer and Allen (1990) defined commitment as the employees feelings of responsibility 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 (Yu, 1996) defined as work performance in terms of quantity and quality expected from each employee.

Expected Findings

Organizational commitment

Job performance

Positive

Khan & Zia-ud-Din (2010)

Affective commitment

Job performance

Positive

Khan & Zia-ud-Din (2010)

Continuance commitment

Job performance

Positive

Khan & Zia-ud-Din (2010)

Normative commitment

job performance

Positive

Khan & Zia-ud-Din (2010)

Organizational commitment

Job performance

Positive

Ladebo, (2003)

Organizational commitment

Performance

Positive

Zhen Xiong Chen (2003)

Research Methodology

The primary focus of this research paper is to investigate the relationship between organizational commitment i.e. affective, normative and continuous commitment and employees job performance in banking sector of Pakistan focusing on employees of public and private banks.

An exploratory study will be undertaken and perhaps the best option available as it will help to expand the existing knowledge and to investigate the relationship among organizational commitment i.e. affective, normative and continuous commitment and employees job performance in banking sector of Pakistan focusing on employees of public and private banks. Primary data will be taken by extensive interviews of bank managers and employees of several public and private banks in Lahore. Questionnaire will be prepare on the basis of information collected through qualitative research i.e. from the main article I am going to replicate with the intention of investigate the relationship among organizational commitment i.e. affective, normative and continuous commitment and employees job performance in banking sector of Pakistan focusing on employees of public and private banks. The time frame of this research work will be from September 2012 to April 2013.

A survey will be used to gather the primary data in which questionnaire will be used as a research instrument. Target population for this study will be employees of different private and public banks in Lahore Through questionnaires they will be asked about association among organizational commitment i.e. affective, normative and continuous commitment and employees job performance. For this, a convenient sampling technique will be used with a sample size consisting of a total of 100 respondents.

Questionnaires will be filled by these 100 employees who will lead the foundation for this research. After getting a response from distributed questionnaires, statistical techniques in the form of charts, graphs and regression analysis will be used to further analyze the responses and to come up with the findings of the research by using different statistical software like SPSS.

Bibliography

Anisa, M. S. (2012). Relationship Between Organizational Commitment and Organizational Citizenship Behavior. The IUP Journal of Organizational Behavior , 7-22.

Dr. Li Yueh Chen. (2004). Examining the Effect of Organization Culture and Leadership Behaviors on Organizational Commitment, Job Satisfaction, and Job Performance at Small and Middle-sized Firms of Taiwan. The Journal of American Academy of Business, Cambridge , 432-438.

Fernando Jaramillo, J. P. (2005). A meta-analysis of the relationship between organizational commitment. Fernando Jaramillo, Jay Prakash Mulki, Greg W. Marshall , 705-714.

Gunlu, E., Aksarayli, M., & Percin, N. S. (2010). Job satisfaction and organizational commitment of hotel managers in Turkey. International Journal of Contemporary Hospitality Management , 693-717.

Karim, N. H. (2010). The impact of work related variables on librarians organizational commitment and job satisfaction. Malaysian Journal of Library & Information Science , 149-163.

Khan, M. R., Ziauddin, Jam, F. A., & Ramay, M. I. (2010). The Impacts of Organizational Commitment on Employee Job Performance. European Journal of Social Sciences , 292-298.

Ladebo, D. O. (2003). Organizational Commitment as a Predictor of Job Performance among Faculty: Implications for Development of Agricultural Technology in Nigeria. Journal of International Agricultural and Extension Education , 57-64.

Sharma, J. P., & Bajpai, N. (2009). Organizational Commitment and its Impact on Job Satisfaction of Employees: A Comparative Study in Public and Private Sector in India. EuroJournals , 7-19.

UYGUR, A., & KILIC, G. (2009). A Study into Organizational Commitment and Job Involvement: An Application Towards the Personnel in the Central Organization for Ministry of Health in Turkey. Ozean Journal of Applied Sciences , 113-125.

Zhen Xiong Chen, A. M. (2003 ). The relationship between the three components of commitment and employee performance in China. Journal of Vocational Behavior , 490-510.