THE EFFECT OF
PERFORMANCEAND
RELATIONSHIP
JOB SATISFACTION ON JOB
ORGANIZATIONAL OBLIGATION
Fakhraddin Maroofi, department of management University of Kurdistan Sanandaj, Iran
Corresponding author Email: maroofif2900@gmail.com
Marzieh Dehghani, Department of management, science and research branch, Islamic Azad University,
Sanandaj, Iran
Email: sima67_2012@yahoo.com
Abstract
This research tested the relationship between organizational obligation and job performance. As a result the
research concluded the effect of job satisfaction on the relationship between organizational obligation and job
performance. A self-manage questionnaire was occupied and allocated among senior and middle management
staff of manufacturing sector in electrical and electronic companies in Iran. Five hindered and eighty four
samples were randomly selected in the research. The obtained data were analyzed based on the descriptive and
conclusive statistics using SPSS. The results showed that there was as a positive relationship between
organizational obligation and job performance. The hierarchical analysis discovered that job satisfaction played
moderating role on the relationship between organizational obligation and job performance.
Keywords: Organizational obligation, job performance, job satisfaction, Iran
1. Introduction
According to Steinhaus & Perry (1996) obligated and satisfied workers are improbably to show low
performance and are usually highly productive who relate to organizational targets and organizational values
(Churchill et al., (1993). The popularity of work attitudes concepts arise from its linkage with several workers’
work behaviors. Robbins, (2005) and Lancaster and Jobber, (1994) suggested that job satisfaction can had an
effect on several work related results like job performance (Robbins, 2005 and Lancaster and Jobber, 1994);
absenteeism (Lawson and Fukami, 1984) and voluntary turnover (Hom and Griffeth, 1995). Although
previous research emphasis on the behavioral work results of turnover and absenteeism, it has however been
identified that employee’s job performance is more important than turnover (Meyer et al., 1989). Most of the
research (Chen, 2006; Feinstein and Vondrasek, 2001; Kim et al., 2005; McDonald and Makin, 2000; Silva,
2006) has addressed the satisfaction and obligation level of the workers, but only a few of them (Lau and
Chong, 2002; Lok and Crawford, 2004) have considered managers’ viewpoints. However, managers are the core
points of the service production; therefore, their impact on the workers is very important. If the managers are not
satisfied and not obligated to the organization, their effectiveness in managing a Job Performance should be
questioned. Therefore there is a greater need for more research to examine the relationship and effect of work
1
relational outlooks such as organizational obligation and job satisfaction on worker, work results of job
performance. Managers are usually faced with various challenges that require them to remain competitive in
uncertain circumstances. Larger ambiguity may result to higher stress that can cause dissatisfaction and some
other relational and behavioral results among staff at managerial level in business sectors (Jestin and Gampel,
2002). This is no objection to managers an Iranian manufacturing and industrial sector specifically in electrical
and electronic companies. An Iranian confidence on business in this sector which cause d more than 40% in
Growth Domestic Product (GDP) definitely demand them to be always highly obligated and performed (Trade
Chakra, 2010). The following questions regarding the relational and behavioral related outlooks are greatly not
replied to Iranian context: a) whether there is a significant and positive relationship between organizational
obligation and job performance? Does job satisfaction moderate the relationship between organizational
obligation and job performance? In spite of the management staff in Iranian companies and organizations plays
a key role in guarantee the quality services of their customers, there has been a lack of research that addressed
the above topic. This research therefore investigates the above mentioned not replied to questions among
managers of manufacturing companies in Iran. Organizational obligation has been determined and measured
in several different ways due to different definitions and measures in the academic literature. However the
definitions and measures generally share a common subject in that organizational obligation is identified to be a
bond of the individual to the organization. Monday et al. (1982) agree that two observes of organizational
obligation dominate the literature: (1) behavioral outlook and (2) relational outlook. The behavioral approach to
obligation is concerned mainly with the process by which individuals develop a sense of connection not to an
organization but to their own activity. The relational obligation, studied type of organizational obligation
(Mathieu and Zajac, 1990) sees obligation as an attitude reflecting the nature and quality of the linkage between
an worker and organization.
Mowday et al. (1982) define obligation on both affective and continuing outlook which describes a highly
obligated individual as one who has: (1) a strong faith in and acceptance of the organization’s targets and
values; (2) a readiness to use important effort with the knowledge of the organization; and (3) An urge to
support membership in the organization. Mathieu & Zajac (1990) observe obligation as a psychological suggest
that first of all, characterizes the individual’s relationship with organization and secondly has indirect suggestion
for the decision to continue or discontinue membership in organization. Building on these observe points, it is
acceptable to hypothesize that there must be a significant relationship between organizational obligation and
behavioral results such as job performance.Theories seem to maintain that relational factor such as workers
organizational obligation is closely related with job performance. However the findings of past research have
been not decisive. Ward and Davis (1995) discovered a positive relationship between organizational obligation
and job performance. On a research of the relationship between obligation and work results among managers,
Meyer et al. (1989) discovered that the direction of the relationship was based on the type of the obligation.
Meyer and Allen’s (1996) research discovered a positive relationship between affective obligation and job
performance and a negative relationship between continuing obligation and job performance. This finding
shows that although the relationship between obligation and job performance was recognized, but the direction
of the relationship different as a function of the nature of the obligation. Other research reported that
organizational obligation was not related to job performance. This research therefore was to determine the
relationship between organizational obligation and job performance specifically among managers in Iranian
manufacturing companies. Job satisfaction is a contribution of perceptive and affective reactions to the
differential feelings of what and worker wants to accept compared with what he or she actually accepts (Cranny
et al., 1992). According to Mowday et al. (1979), organizational obligation is an attitude, which exists between
the individual and the organization. That is why, it is considered as a relative strength of the individual’s
psychological identification and involvement with the organization (Jaramillo et al., 2005). According to the
organizational studies there are a number of job satisfaction theories which are more that always been referred in
organizational and behavioral studies is Hezberg’s two factor theory (1973).
The Hezberg’s theory is based on psychological growth or motivating factors and the need to avoid pain or
hygiene factors. The motivating factors form positive elements that cause regarding job satisfaction and
motivation, while hygiene factors are negative elements that could cause dissatisfaction at work. Job satisfaction
also symbolizes one important type of operation effects and has been related to many organizational behavioral
2
results including job performance (Koys ,2001). The contribution of job satisfaction and its ingredients on work
results has been deeply researched. Earlier literature has stressed more on linear relationship between job
satisfaction and job performance (Ward and Davis, 1995 and Fletcher and William, 1996). According to Rashed
(2001) individuals would expect higher levels of job performance and it has been associated with higher levels
of job satisfaction, although they do not systematically correlate. The discussion suggests that there is a
relationship between job satisfaction and job performance however the nature of relationship is not decisive.
Further less research was investigate on the role of job satisfaction on organizational obligation and job
performance relationship. In addition, for a couple of decades ago organizational industrialists have been
stressed the significance of relational outlooks such as job satisfaction on the relationship between obligation
and job performance and in improving the working environment (Farh et al., 1997and Roberts et al., 1997).
Therefore this study attempted to unravel the inconclusive previous research findings. From motivational
outlook, organizational obligation has been discovered as theoretically associated with job performance (Hunt et
al., 1985, Birnbaum and Somers, 1998). However according to Ingram et al. (1989) empirical studies on the
relationship between organizational obligation and job performance have been less encouraging. Mathieu and
Zajac (1990) discovered that the correlation between obligation and job performance was relatively low but
positive. Although Lee and Mowday (1989) discovered an insignificant relationship has been recognized
between obligation and job performance. This led to the faith that there may be variables that moderate the
relationship between organizational obligation and job performance. Therefore, it is useful in this research to
relate the Hezberg’s dual-factor theory in analyzing organization work results specifically on the organizational
obligation and job performance relationship. Generally, Hezberg’s theory emphasizes the significance of
individual in organization to progress. The progress indirectly will change individual’s needs. As a result it will
help individuals to put extra efforts without stopping to obtain their needs and satisfaction. Looking at the role
and obligation of managers in Iranian manufacturing companies, it is certain that human relation parameters as
explained in the Hezberg’s theory are important in guarantee high performance organization and operation of
organizational targets. At the same time, workers in the organization who find their work profitable and
rewarding would produce and perform better work than those who are dissatisfied. Earlier studies have focused
greatly on direct relationship among organizational obligation, job satisfaction and job performance. However
the effect of job satisfaction on the organizational obligation job performance relationship has not been
investigate widely. More significantly the majority of earlier studies were carried out in non-Eastern settings.
There is a great concern over whether the western business practices theories are related in Iranian private
organizations specifically in manufacturing companies. This research emphasizes the effects of job satisfaction
on the relationship between organizational obligation and job performance among managers in Iranian
manufacturing companies.
2. Hypotheses
The main purpose of this research was to examine the relationship between organizational obligation and job
performance and the measure job satisfaction simplifies the relationship between organizational obligation and
job performance among managers in Iranian manufacturing companies. Therefore the hypotheses assume for
this research are:
H1: There will be a positive relationship between organizational obligation and job performance.
H2: The relationship between organizational obligation and job performance will be moderated by six
motivational aspect of job satisfaction.
H3: The relationship between organizational obligation and job performance will be moderated by eight
hygiene aspect of job satisfaction.
3. Research Method
Participants in the research were the middle and senior management staff of manufacturing companies
specifically in electrical and electronic companies in Iran. A total of 700 questionnaires were sent out to the
managerial staff in the selected companies of Iranian Manufacturer. The selection of the respondent was based
3
on the simple random sampling method. Respondents were given 4 weeks to answer the questionnaires. In all, a
total of 584 useable questionnaires were used in the statistical analysis, representing a response rate of 83.43%
(Table 1). The independent variable of this research is organizational obligation. The Organizational Obligation
Questionnaire (OOQ) was taken up based on a developed instrument by Mowday et al. (1982). The
questionnaire which contains 13 items based on the 5 point Likert scale ranging from 1 for strongly disagree to 5
for strongly agree was used to measure organizational obligation. The reliability coefficient of this variable is
.92. The questionnaire of job satisfaction comprised a combination of items adapted from Minnesota
Satisfaction Questionnaire (Weiss et al., 1967) and Seegmiller (1977). This instrument measures the various
ingredients or aspect of Hezberg’s job satisfaction theory mainly on motivational and hygiene factors.
Motivational factors include: work itself, operation, obligation, progress and identification for operation.
Hygiene factors include, relationship with supervisor, relationship with friends, quality of supervision, policy
and management, job security, working condition and salary. For each of hygiene and motivational ingredient
contains 5 items or statements. The response alternatives for these items were 5 point Likert-scale range from
strongly disagree (1) to strongly agree (5). The reliability coefficient for overall job satisfaction aspect scale is
.93. The dependent variable of the research is job performance. Job performance was measured based on
adapted instrument developed by Hind and Baruch (1997) which measured job performance on estimation from
manager or supervisor, self-rating and self-rating as compared to friends. For each of this estimation of job
performance contains 3 items for supervisor rating, and one item each for self-rating and self-rating as compared
to friends. The response alternatives for these items were based on 1 to 5 point Likert-scale, ranging from
strongly disagree to strongly agree. Results were then summarize and divided by 5 to get to a summary
indicator of a workers job performance. Higher mean scores are indicative of greater job performance. In
general reliability coefficient for this scale was .94.
4. Results
Table 1; shows the average age of the respondents in the research is 45.02 years while the mean age of
experience in the organization and in the present job was 10.08 and 7.08 years respectively. Most of the
respondents are married and 33.2% of them are single. Meanwhile 65% of the respondents are male and 37%
are female (Table 1). Table 2 presents the mean, standard deviations and the Pearson’s correlation coefficients
of the research variables. Table 2, shows the mean value for each of the variables and aspect of job satisfaction
changes from as low as 2.64 to as high as 4.35 for the sample involved. The standard deviation for these
variables ranges from 0.52 to 0.89. Job performance, on the other hand, had a mean value of 4.24 with a
standard deviation of 0.77 and the mean for organizational obligation is 3.91 and standard deviation is 0.78. As
can be seen from Table 2, the Cronbach’s alpha values for the dependent, moderating and independent variables
were discovered to be above 0.8 shows that the measurements used in this research were statistically reliable
(Nunnally, 1978). The results show a positive relationship between organizational obligation and job
performance. This finding is consistent with expectations and earlier research that there was significant and
positive relationship between organizational obligation and job performance. The results parallel to earlier
findings (Wagner and Rush 2000 and Moses, 1993) giving some support to the construct validity of these
measures. Findings of the research care for suggest that organizational obligation were seen as the stimulator for
management staff in manufacturing companies to do better than in their job performance. The results support the
first hypothesis of the research that there was a positive relationship between organizational obligation and job
performance. Therefore the first hypothesis is accepted. The second and third hypotheses of the research were
tested using hierarchical retrogression analysis to determine the effects of job satisfaction on the organizational
obligation and job performance relationship. A hypothesized mediator effect is supported if the interaction terms
significantly increase the variance explained by the predictors (Cohen and Cohen, 1975). Based on this method
the organizational obligation was record in the first step, followed by the moderating variables in the second
step. In the third step, the interaction terms were record. Table 3 describes the effects of job satisfaction
(motivational factors) on the relationship between organizational obligation and job performance while Table 4
describes the effects of job satisfaction (hygiene factors) on the relationship between organizational obligation
and job performance. As arrange in Table 3 it was discovered that the model variables together with the
moderating variables of job satisfaction (stimulator factors) could jointly explain 64% of variance in job
performance. Organizational obligation was discovered to have a significant and positive effect on job
4
performance (b =0.24, p < 0.05).The retrogression coefficient for job satisfaction (motivation factors) of work
itself (b =0.30, p < 0.05); operation (b =0.25, p < 0.05); possibility for growth (b =0.26, p < 0.05; obligation (b
=0.15, p < 0.05); progress (b =0.24, p < 0.05) and identification for progress (b =0.27, p < 0.05) were
discovered to have a significant and positive effect on job performance. In examining the interaction terms, all
of the job satisfaction aspect (stimulator factors were discovered to be the mediator of the relationship between
organizational obligation and job performance. When the interaction terms for stimulator factors were record,
the incremental variance in job performance of 15% was discovered to be significant (p < 0.05). This shows that
all of the stimulator factors did moderate the relationship between organizational obligation and job
performance. The results suggest that if obligated workers are made happy by improving the stimulator factors
in the work place, they would be willing to give the best of their services to the management and increase their
job performance. An examination of the full model from the block of interactions in Step III show that variable
identification for operation was discovered to be the highest interaction effect of organizational obligation on
job performance (b =0.55, p < 0.05.) followed by variables of progress, work itself, obligation and operation.
Therefore, the increase in interaction effect of motivating factors showed that all of the five stimulator variables
explaining important variations in job performance and suggests that the job performance of obligated workers
will be high if the levels of satisfaction with these job satisfaction aspect in which they are interested are
increased. The results confirm the second hypothesis of the research. Therefore the second hypothesis is
supported. As for the third hypothesis it was discovered that the model variables together with the moderating
variables of job satisfaction (hygiene factors) could jointly explain 67% of variance in job performance.
Organizational obligation was discovered to have a significant and positive effect on job performance (b =0.43,
p < 0.05).The retrogression coefficient for job satisfaction (hygiene factors) of status (b =0.37, p <
0.05);relationship with supervisor(b =0.23, p < 0.05); relationship with friends(b =0.19, p < 0.05); quality of
supervision(b =0.23, p < 0.05); policy and management(b =0.27, p < 0.05); job security(b =0.16, p < 0.05);
working condition (b =0.18, p < 0.05) and salary(b =0.48, p < 0.05) were discovered to have a significant and
positive effect on job performance. An examination to the interaction terms showed that all of the job
satisfaction aspect (hygiene factors) was discovered to be the mediator of the relationship between
organizational obligation and job performance. When the interaction terms for hygiene factors were record, the
incremental variance in job performance of 24% was discovered to be significant (p < 0.05). This shows that all
of the hygiene factors did moderate the relationship between organizational obligation and job performance. The
results suggest that if obligated workers are made happy by improving the hygiene factors such as in terms of
salary, they would be willing to give better services to the organization which will increase high job
performance. An examination to the interaction terms showed that all of the job satisfaction aspect (hygiene
factors) was discovered to be the mediator of the relationship between organizational obligation and job
performance. When the interaction terms for hygiene factors were record, the incremental variance in job
performance of 24% was discovered to be significant (p < 0.05). This shows that all of the hygiene factors did
moderate the relationship between organizational obligation and job performance. The results suggest that if
obligated workers are made happy by improving the hygiene factors such as in terms of salary, they would be
willing to give better services to the organization which will increase high job performance. The results also
showed that the full model from the block of interactions in Step III show that variable salary was discovered to
be the highest interaction effect of organizational obligation on job performance (b =0.57, p < 0.05.) followed
by variables of job security, working condition, policy and management, quality of supervision, relationship
with friends, relationship with supervisors and status. The increase in interaction effect of hygiene factors
showed that all of the eight hygiene variables explaining important variations in job performance and suggests
that the job performance of obligated workers will be high if the levels of satisfaction with these job satisfaction
aspect in which they are interested are increased. On the whole based on step III the increase in interaction
effect of hygiene factors indirectly suggested that those who seen highly obligated and satisfied with seven
hygiene factors are performing better in their job. This results support the third hypothesis of the research.
5. Concluding
The main purpose of this research was to examine the relationship between organizational obligation and job
performance. The second and third objective in the research was to determine the moderating effects of job
satisfaction (stimulator and hygiene factors) on the relationship between organizational obligation and job
5
performance. The findings of the research were in the hypothesized direction as organizational obligation was
related to increased job performance. As a result the research concluded that job satisfaction simplifies the
relationship between organizational obligation and job performance. The main contribution of this research was
the moderating effects played by the motivational and hygiene factors in the organizational obligation-job
performance relationship. The findings of the research implied that the manager of Iranian manufacturing
companies who are obligated to their organization are likely to perform better in their jobs if the level of
satisfaction both on hygiene and stimulator factors they accepted were improved. This findings care for point to
the fact that the Hezberg’s theory is a possible model in the organizational obligation-job performance
relationship. The results of the research support those by earlier researchers (Birch and Kamali, 2001), thus the
present research confirms the result obtained by these researches and conclude it to the other groups of workers.
This is the first issue dealt with in this research that has not been stressed in earlier studies especially among
managerial levels in Iranian manufacturing companies. Earlier studies were usually conducted in western
setting. The research showed here presents that western management and organizational theories could be valid
in a non-western setting and the findings discovered in a certain society can be clear in a different society. This
research should not be an end in itself therefore possible expansions of this paper could be investigated. It would
be interesting to test the responsiveness of the findings to using other measures of policy and behaviors in
organization or to take advantage of more than one measure of organizational obligation. Robustness can also be
validated through using different samples in a variety of settings. The impacts of other variables on the
relationship between organizational obligation and job performance could be further investigated to confirm the
findings of the research.
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Table 1: Summary of Profile of Respondents
8
SD
6.57
6.91
3.29
-
Mean
45.02
10.08
7.08
-
Age
Experience in the organization
Present job experience
Male
Female
Married
Single
n
372
212
394
190
%
65
37
67.1
33.2
Table 2: Correlation Matrix of all variables
Mean
3.44
4.35
2.87
3.27
2.63
3.58
3.99
3.48
3.64
4.22
3.99
3.91
4.24
S.D
0.76
0.48
0.79
0.79
0.89
0.78
0.78
0.77
0.89
0.71
0.85
0.78
1
.80
.17*
.33*
.26*
.23*
.16*
.43*
.44*
.35*
.38*
.32*
.39*
2
3
4
5
6
7
8
9
10
11
.80
.63*
.65*
.64*
.44*
.45*
.46*
.68*
.34*
.33*
.51*
.84
.33*
.44*
.51*
.50*
.44*
.37*
.35*
.57*
.34*
.86
.31*
.29*
.55*
.59*
.40*
.66*
.35*
.40*
.89
.56*
.51*
.46*
.50*
.69*
.50*
.53*
.93
.45*
.40*
.38*
.36*
.49*
.39*
.89
.35*
.38*
.33*
.40*
.52*
.81
.22*
.36*
.32*
74
.35*
.39*
.85
.47*
.73
12
0.77
.29*
.43*
.66*
.45*
.41*
.33*
.49*
.54*
.47*
.39*
.60*
.92
*p = 0.05, alpha reliability values of variables. 1. Work itself 2. Possibility for growth 3. Responsibility 4.
Recognition (motivational facets)} {5. status 6. relationship with supervisor 7. operation 8. working condition 9.
salary (hygiene facets)} 10. Relationship with friends 11. Organizational obligation. 12. Job performance.
9
Table 3: Hierarchical Retrogression Analysis Predicting Job Performance of Workers by Motivator Factor
Independent Variable
Model Variables
Organizational obligation
Moderating Variable
Motivator factor:
Work itself (Wis)
operation (Ope)
Possibility for growth (Pg)
Responsibility (Res)
Recognition for advancement (Ra)
Interaction Terms
OO X Wis
OO X Ope
OO X Pg
OO X Res
OO X Ra
R2
Adj R2
R2 Change
Sig. F Change
P < 0.05
10
Std Beta Step 1
Std Beta Step
2
Std Beta Step
3
.15*
.24*
.33*
.30*
.25*
.26*
.15*
.27*
.41*
.38*
.26*
.39*
.64*
0.59
0.64
.18*
.29*
.38*
.37*
.55*
0.76
0.56
0.59
10.90*
0.61
0.07
21.35*
0.73
0.15
18.60*
Table 4: Hierarchical Retrogression Analysis Predicting Job Performance of Workers by Hygiene Factor
Independent Variable
Model Variables
Organizational obligation
Moderating Variable
Hygiene factor
Status (Sts)
Relationship with supervisor (RS)
Relationship with friends (Rf)
Working Condition (WC)
Salary (SL)
Interaction Terms
OO X Sts
OO X Rs
OO X Rf
OO X WC
Std Beta
Step 1
Std Beta Step 2
Std Beta
Step 3
.17*
.43*
.46*
.37*
23*
.19*
.18*
.48*
.65*
.25*
.22*
.18*
.50*
.17*
26*
.40*
.53*
11