Impact of Job Satisfaction on Organizational
Commitment of Public Bank Employees
Dr. M.Fiaz, J. Naeem2, Z.Musab3
1PhD,
Northwestern Polytechnical University, Xian, China currently working in UET Lahore, Pakistan
fiaz0128@gmail.com
2MBA-Continue,
Institute of Business and Management, UET Lahore, Pakistan
jasimnaeem@yahoo.com
3MBA-Continue,
Institute of Business and Management, UET Lahore, Pakistan
zmusab@yahoo.com
1. Introduction
Abstract
The purpose of this study is to examine the
relationship between components of organizational
commitment and job satisfaction among employees
of Public Banks of Punjab. Therefore this study could
make important contribution to extant research in
management and organizational behavior. In the
beginning of this study, problem statement is given.
Then, literature is discussed about organizational
commitment and job satisfaction that focusing on the
relationship between them. The result showed that
affective, continuance and normative commitment
that was not found to have significant positive
relationship with job satisfaction.
Key Terms
Job
Satisfaction,
Affective
Commitment,
Continuous
Commitment,
Normative
Commitment, Bank Employees
Organizational
Organizational
Organizational
This study examines the relationship between Job
Satisfaction and Independent variables like Affective
Organizational
Commitment,
Continuous
Organizational
Commitment
and
Normative
Organizational Commitment. In this research,
problem statement and literature of Job Satisfaction
and Organizational Commitment is defined In
general terms, organizational commitment is a strong
belief in and acceptance of the organizational goals
and values; a willingness to exert considerable effort
on behalf of the organization, and a definite desire to
maintain organizational
membership (Chow,
2004).Also, it is seen as the identification with one’s
employer that includes the willingness to work on
behalf of the organization and the intention to remain
on the organization for an extended period of time
(Wager &Hollenbeck, 2005). Organizational
commitment also refers to a psychological link
between the employee and the organization that
makes it less likely that the employee will voluntarily
leave the organization (Allen & Meyer,
2006).However, changes in the banking sector have
led to the high level of uncertainty, threat and job
insecurity among employees there by affecting their
level of organizational commitment. Downsizing has
almost become a way of life in the banks as away to
cope with competitive pressures as well as
restructuring initiatives of the central bank. This has
led to the high level of employees' turnover,
absenteeism, apathy, cynicism, intent to quit among
others. Since these attitude and behavior affect the
level of employees' commitment to the organization,
it is thought that this will affect the job satisfaction of
employees of banks. Thus, the main problem that
called for this study is to ascertain whether
organizational commitment affects or influences
profitability, employee satisfaction and quality
service delivery in banks.
Problem Statement
The
relationship
between
components
of
organizational commitment and job satisfaction
among employees of Public Banks of Punjab.
Research Objective
To measure the level of job satisfaction of bank
employees and to measure the level of organizational
commitment and the relationship between job
satisfaction and organizational commitment of bank
employees
Scope of Study
The scope of this study is limited to building Public
sector Banks of Lahore only. The data for this study
was gathered through a questionnaire survey.
2. Literature Review
Job Characteristics
In the paper of Samad (2006) examining the job
characteristics relationship between job satisfaction,
the theory of Hezberg (1996), and the result indicated
that job satisfaction was associated with a high
statistically significant at the .05 level for all
variables of job characteristics and was consistent
with the research of Thomas, Buboltz, and
Winkelspecht (2004) who have studied affection of
job characteristics to work adjustment with a sample
of new graduates the result showed that the job
characteristic influence job satisfaction with
statistically significant at the .05 level. From these
aforementioned studied results, it can be clearly seen
that the positive job characteristics has direct
influence to job satisfaction and work adjustment.
Dimensions of employees’ jobs have also been
related to organizational commitment.
When these variables were entered into a regression
model as a group, they were found to be significantly
related to organizational commitment; however,
when entered separately, only task identity had a
significant
relationship
with
organizational
commitment for both samples studied. Similarly,
Bhuian et al. (1996) found that job variety
significantly influenced organizational commitment
for expatriate employees in Saudi Arabia, while
autonomy, identity, and feedback were not
significantly related to organizational commitment.
Colbert and Kwon’s (2000) study shows that there is
a strong correlation between organizational
commitment and job skill variety and feedback.
Job Satisfaction
Job satisfaction is the extent to which people are
satisfied or dissatisfied with their jobs (Spector,
2007)
Determinants of Job Satisfaction
A large number of studies over the past several
decades have argued that demographic factors
including individual factors such as age, marital
status, and education; and organizational factors or
work-related factors such as job level and years of
experience, impact job satisfaction (Abdulla et al.,
2011; Zeffane et al., 2008; Ellickson and Logsdon,
2001). Individual demographic variables, to start
with, have been a source of variation in job
satisfaction (Bennett, 1994; Khaleque and Rahman,
1987; Metle, 1997, 2001, 2002), but the direction of
this relationship seems problematic. For example, the
positive relationship between age and satisfaction has
been documented in several empirical studies in
Western and Middle Eastern contexts (Metle, 1997;
Clark et al., 1994; Kuo and Chen, 2004; Al Ajmi,
2001; Bennett, 1994; Reese et al., 2007),
This positive linear relationship between age and
satisfaction has been claimed by numerous studies
including Reese et al. (2007). Durst and DeSantis
(1997) explain this phenomenon but state that older
employees have more realistic expectations about
their jobs and a stronger sense of achievement than
their younger counterparts and are thus more satisfied
with their jobs. However, the linearity of the
relationship between age and job satisfaction has
been challenged by a number of studies including
Clark et al. (1994). After analyzing a large sample of
employees in Britain, Clark et al. (1994) found that
satisfaction declined from a moderate level in the
early years of employment and then increased
steadily up to retirement. Metle (2004) indicated that
attention has shifted to the shape rather than the
causes of the relationship between age and job
satisfaction. The focus is on understanding whether
the relationship is linear or curvilinear, and not on the
possibility that the shape could be different in
different organizations for different workers in
different countries (Metle, 2004, p. 51).
Organizational Characteristics
Employees’
perceptions
of
organizational
characteristics have been shown to be related to
organizational commitment. One such characteristic,
organizational support was described by Eisenberger
et al. (1990) as employees’ perceptions of “the extent
to which the organization values their contributions
and cares about their well-being” (p. 51).
Organizational support was found to be positively
related to the organizational commitment of hourly
employees and managerial employees in a large steel
plant (Eisenberger et al., 1990) and of nonsupervisory hospital employees (Settoon et al.1996).
Organizational Commitment
Organizational commitment has been integral to
organizational research for over 25 years (Gautam,
Van Dick, & Wagner, 2004, P. 301). As a construct,
organizational commitment is a fundamental aspect
of the employer employee relationship (Mohammed,
Taylor,
&
Hassan,
2006).
Organizational
commitment remains popular (Cullen, Parlobteeah, &
Victor, 2003) and encompasses multiple dimensions
and conceptual leitmotifs (Loi et al., 2006).
Organizational commitment also relates to other
variables as an antecedent, consequence, or correlate
(Meyer & Allen, 1997). Contemporary research
largely extends and environmentally contextualizes
predictive aspects of organizational commitment.
The concept of organizational commitment has been
treated as a variable of interest in its own right and a
variety of definitions and measures have been
proposed (Mowday et al., 1982; Meyer et al., 1998;
Coyle-Shapiro et al., 2006). The concept has attracted
more attention recently from organizational
scientists, perhaps due to changes taking place in
employment practices that have arisen from the
international employment marketplace and increased
alternatives for skilled employees in a global
economy (Sullivan and Arthur, 2006).
Forms of Organizational Commitment
The construct of commitment has been viewed in the
main as a composite of three main components
representing affective, normative and continuance
aspects of commitment (Coyle-Shapiro et al., 2006).
Allen and Meyer (2000) define affective
commitment as an employee’s organizational
commitment emotional attachment to, identification
with and involvement in the organization.
Continuance commitment is sometimes termed as
calculative commitment (Hackett et al., 2004) as it is
based on the cost that an employee associates with
leaving an organization. Normative commitment
may be viewed as an employee’s feelings of
obligation to remain with the organization, and in
contrast to affective and continuance commitment, it
focuses on the “right or moral thing to do” by
concentrating on the obligation and/or moral
attachment of employees that are produced through
the socialization process binding employees to the
organization’s goals and values (Allen and Meyer,
2000).
Research Significance
To relate the benefit and contribution of the research
to the advancement of humanity, this study is carried
out with the aim of increasing the wealth of
knowledge accumulated so far on organizational
commitment and job satisfaction of banks.
Management of banks will find this research
beneficial since the study seeks to appraise the
importance
of
commitment
in banks with a view to proffering solution to cushion
the negative importance of the exercise. Banks
intending to commitment their staff at all levels will
find this work as a practical guide on how to carry
out the exercise in order to minimize the problem that
may associate with it. The study will also contribute
significantly to the economic development since it is
also as engine for banks , or research on the impact of
organizational on job satisfaction of banks is useful I
making policy recommendations for improvement,
and receive stability on banks.
Situational Factors
Overall satisfaction is a function of a combination of
situational characteristics and situational occurrences.
The situational characteristics commonly proposed as
key factors in job satisfaction are: the work itself,
pay, promotion, supervision and co-workers,
although other variables such as organizational
commitment may also have impact. Situational
theories assume that job satisfaction is influenced by
the interaction of variables such as task characteristic,
organization
characteristic
and
individual
characteristic (Hoy and Miskel, 1996). Adam and
King (1996) stated that there are several aspects or
factors of job satisfaction that influence perception of
overall job satisfaction such as career advancement
opportunities, communication, management, reward
and other. On the other hand, dissatisfaction will
bring negative effect to organization. Organization
with higher turnover and low compensation was the
most common reason given for dissatisfaction.
3. Theoretical Framework
Based upon the literature review, there is a need to
study the relationship between organizational
commitment and job satisfaction among employee of
the institutions. The conceptual framework below
will offer the conceptual foundation to examine and
explore more to the study in verifying the
relationship between organizational commitment and
job satisfaction.
Independent Variables
Independent variable consists of one variable that is
organizational commitment with three main focus
affective organizational commitment, continuance
organizational
commitment
and
normative
organizational commitment.
Dependent Variable
Dependent variable consists of one variable and that
is job satisfaction.
Organizational Commitment
1. Affective Organizational
Commitment
2. Continuous Organizational
Commitment
3. Normative Organizational
Commitment
Independent Variable
Job Satisfaction
Dependent Variable
Hypothesis
H1: There will be significant relationship between the Affective Organizational Commitment and Job Satisfaction
H2: There will be significant relationship between Continuous Organizational Commitment and Job Satisfaction.
H3: There will be significant relationship between Normative Organizational Commitment and Job Satisfaction
4. Data Collection
Primary and secondary sources were used for collection of data.
• Primary Source
Questionnaire used as a research instrument and also called primary source for collecting data from respondents.
• Secondary Source
Secondary data refer to the data that gathered through existing sources by someone than the researcher conducting
the current study such as company record, publication, industry analysis offered by the media, web publications etc.
Population and Sample
It includes the employees of public banks of Punjab. Employees in grade 17 or above are included in the population
of this study. The sample of this research study is composed of hundred (100) (N= 100) banking employees working
in different banks of Punjab. Moreover, sampling was done using convenience sampling technique.
Research Design
• Type of Study
The research is focusing on relationship between organizational commitment and job satisfaction. This study is a
quantitative in nature by using survey method to examine the relationship between independent and dependent
variables. The findings and conclusion of the study will depend on the fully utilization of statistical data collected
and analyzed using SPSS.
Questionnaire Design
The questionnaire was divided into five sections to study the characteristics of the important variables in identifying
the relationship between the relationship between organizational commitment and job satisfaction among
employees. Following are the details of questionnaires and measures:
There are 7 questions in questionnaire to measure the affective organizational commitment; next seven questions are
related to continuous organizational commitment, six questions are in questionnaire to measure the normative
organizational commitment. In the last, seven questions are in questionnaire to present Job satisfaction as a
dependent variable of employees.
Variables
Items
Affective Organizational Commitment
7
Continuous Organizational Commitment
7
Normative Organizational Commitment
6
Job satisfaction
7
• Rating Scale
Five point likert scales was used in questionnaire.
Strongly disagree
Disagree
1
2
Neutral
Agree
Strongly Agree
3
4
5
Data Collection Method
In this study, data was collected using a structured questionnaire which consisted of 29 items. The questionnaire was
distributed to employees of public banks of Lahore. The respondents are given 4 days to answer and returned
questionnaires by respondents through e-mail.
Multiple Regression Analysis is conducted to examine which among the three dimensions in independent variables
is the most important in explaining the relationship between organizational commitment and job satisfaction among
employees.
5. Data Analysis
Reliability Analysis
The reliability test concerned with the stability and consistency measurement to access the goodness of a measure. It
will answer the questions on how consistently it measures a particular concept. Based on the output of the analysis,
the Cronbach’s alpha acquired indicates that all the items are positively correlated to one another and it is internally
consistent. For that purpose, the Cronbach's alpha has been used to measure reliability among variables.
•
Summary of Reliability Analysis
Reliability Statistics
Cronbach's Alpha
N of Items
.844
4
Descriptive Analysis
All variables are evaluated based on a 5-point scale (1 being strongly disagreed to 5 being strongly agreed). The
results show that the mean on affective commitment was 3.9571 with SD = .56289, the mean for continuance
commitment was 3.9471 with SD = .54508, the mean for normative commitment was 3.9733 with SD = .51885 and
the mean and standard deviation for job satisfaction was 3.9450 and .52468 respectively. The mean values for all the
variables are above moderate.
Summary of Descriptive Analysis
Descriptive Statistics
AOC total
COC total
NOC total
JS total
Valid N (list wise)
N
Range
Minimum
Maximum
Mean
Std. Deviation
Statistic
Statistic
Statistic
Statistic
Statistic
Statistic
Statistic
Std. Error
100
2.57
2.43
5.00
3.9571
.56289
-.521
.241
100
2.14
2.57
4.71
3.9471
.54508
-.999
.241
100
1.83
3.00
4.83
3.9733
.51885
-.240
.241
100
2.14
2.57
4.71
3.9450
.52468
-.916
.241
100
Skewness
Hypothesis Testing
Correlation
Correlation test is to show the strength of the association between the variables involved. Inter-correlations
coefficients (r) were calculated by the means of Pearson’s Product Moment. AOC and NOC have moderate values
of other variables. COC has strong value of JS having value of 0.944. It means Job Satisfaction has strong impact of
Continuous Organizational Commitment.
Correlations
AOCtotal
AOCtotal
Pearson Correlation
COCtotal
1
Sig. (2-tailed)
NOCtotal
JStotal
.437
JStotal
**
.395**
.000
.000
.557
.000
N
Pearson Correlation
COCtotal
NOCtotal
**
100
100
100
100
.437**
1
.552**
.944**
.000
.000
Sig. (2-tailed)
.000
N
Pearson Correlation
100
100
100
100
.557**
.552**
1
.580**
Sig. (2-tailed)
.000
.000
N
Pearson Correlation
100
100
100
100
**
**
**
1
.395
.000
.944
.580
Sig. (2-tailed)
.000
.000
.000
N
100
100
100
100
**. Correlation is significant at the 0.01 level (2-tailed).
Regression
Job Satisfaction has 89% impact on independent variables like Affective Organizational Commitment, Continuous
Organizational Commitment and Normative Organizational Commitment. Independent Variables like AOC, COC
and NOC have 11% (100-89%) impact on Dependent Variable that is Job Satisfaction.
Model Summaryb
Model
1
R
R Square
.948a
Adjusted R Square
.899
.896
Std. Error of the
Estimate
.16904
a. Predictors: (Constant), NOCtotal, COCtotal, AOCtotal
b. Dependent Variable: JStotal
Our study has 0 significance which is less than 0.05.
Change Statistics
R Square Change
.899
F Change
285.907
df1
df2
3
Sig. F Change
96
.000
Equation:
ANOVAb
Model
1
Sum of Squares
Regression
Residual
Total
df
Mean Square
F
24.510
3
8.170
2.743
96
.029
27.254
99
Sig.
285.907
.000a
a. Predictors: (Constant), NOCtotal, COCtotal, AOCtotal
b. Dependent Variable: JStotal
JS=0.273+ (-0.063)(AOC)+ (0.876)(COC)+ (0.117)(NOC)
Coefficientsa
Standardized
Coefficients
Unstandardized Coefficients
Model
1
B
(Constant)
Std. Error
Beta
.273
.152
AOCtotal
-.063
.037
COCtotal
.876
NOCtotal
.117
t
Sig.
1.795
.076
-.068
-1.705
.092
.038
.910
23.011
.000
.043
.116
2.706
.008
a. Dependent Variable: JStotal
Recommendations:
This study had provided only a small portion of idea regarding relationship between organizational commitment and
job satisfaction in the context of Public banking sector. Hence, it would be beneficial for future research to consider
the following suggestion:
Expand the study into other industries by investigate the relationship of organizational commitment and job
satisfaction in public and private sector. This kind of investigation would help explain the comparison among the
facets of organizational commitment in developing job satisfaction.
Conclusion:
Based on regression analysis, all the dimensions of organizational commitment clearly have no significant
relationship with job satisfaction. In addition, the finding of this study also can help the organization in planning and
developing the strategies to enhance the organizational commitment of the employees. It may become one of the
tool and guidance for further actions. This is important to keep the survival of the organization in the global era
whereby nowadays it is not easy to make employees to feel obliged and become committed to the organization. So,
new strategies must be developed from time to time and it depends on the result of this kind of study.
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