Impact of Organizational Commitment and Employee Performance on Employee Satisfaction
Added on 2023-06-15
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84
© 2014 The authors and IJLTER.ORG. All rights reserved.
International Journal of Learning, Teaching and Educational Research
Vol. 1, No. 1, pp. 84-92, January 2014
Impact of Organizational Commitment and
Employee Performance on the Employee
Satisfaction
Naveed Ahmad
Faculty of Management Sciences,
Indus International Institute, D. G. Khan,
Pakistan
Nadeem Iqbal, Komal Javed
Faculty of Management Sciences,
Baha Uddin Zakariya University Multan,
Pakistan
Naqvi Hamad
PhD Statistics Govt. Postgraduate College, D. G. Khan,
Pakistan
Abstract. The purpose of this study is to investigate the impact of
Organizational Commitment and Employee Performance on Employee
Satisfaction. Author used statistical population of Banking Sector which
covers 110 employees of 10 banks and data was collected through a self
administrative questionnaire. Correlation coefficient, Regression
analysis and “ANOVA were tested for the data analysis. There are two
independent variables 1) Organizational commitment 2) Employee
performance whereas Employee satisfaction is taken as dependent
variable. Results showed Positive relationship between Organizational
commitment and employee satisfaction and similarly Employee
Performance has Positive relationship with employee satisfaction.
Keywords: employee satisfaction; organizational commitment;
employee performance
Introduction
Modern era of globalization brought many opportunities along with different
challenges for corporations. In today’s world, organizations are competing
“globally”. Globalization has shaped many opportunities as well as challenges
for global and local firms. Cost of manufacturing is rising gradually due to many
worldwide factors as economic depression, increase of fuel prices and limitation
of resources. This increase in prices is pushing corporations to adopt those ways
through which cost can be minimized to survive in competitive environment.
© 2014 The authors and IJLTER.ORG. All rights reserved.
International Journal of Learning, Teaching and Educational Research
Vol. 1, No. 1, pp. 84-92, January 2014
Impact of Organizational Commitment and
Employee Performance on the Employee
Satisfaction
Naveed Ahmad
Faculty of Management Sciences,
Indus International Institute, D. G. Khan,
Pakistan
Nadeem Iqbal, Komal Javed
Faculty of Management Sciences,
Baha Uddin Zakariya University Multan,
Pakistan
Naqvi Hamad
PhD Statistics Govt. Postgraduate College, D. G. Khan,
Pakistan
Abstract. The purpose of this study is to investigate the impact of
Organizational Commitment and Employee Performance on Employee
Satisfaction. Author used statistical population of Banking Sector which
covers 110 employees of 10 banks and data was collected through a self
administrative questionnaire. Correlation coefficient, Regression
analysis and “ANOVA were tested for the data analysis. There are two
independent variables 1) Organizational commitment 2) Employee
performance whereas Employee satisfaction is taken as dependent
variable. Results showed Positive relationship between Organizational
commitment and employee satisfaction and similarly Employee
Performance has Positive relationship with employee satisfaction.
Keywords: employee satisfaction; organizational commitment;
employee performance
Introduction
Modern era of globalization brought many opportunities along with different
challenges for corporations. In today’s world, organizations are competing
“globally”. Globalization has shaped many opportunities as well as challenges
for global and local firms. Cost of manufacturing is rising gradually due to many
worldwide factors as economic depression, increase of fuel prices and limitation
of resources. This increase in prices is pushing corporations to adopt those ways
through which cost can be minimized to survive in competitive environment.
85
© 2014 The authors and IJLTER.ORG. All rights reserved.
Organizational growth requires more workforce and new hiring but satisfied
and committed workers are true assets of an organization.
The idea of employee satisfaction has been a center of study for two decades
(Greasley, et. al., 2005) and is regarded as a serious issue for managerial
performance. Different academicians and organizational “gurus” strained the
importance of employee satisfaction. Theorists have common consent that
employee satisfaction is as essential as customer satisfaction (Chen, et. al., 2006).
Different theorists have defined employ satisfaction differently. Rousseau (1978)
recognized three factors of the employee satisfaction: 1) individuality of
organization 2) work task factors 3) personal character. Establishment which
raises high employee’s job satisfaction is also further proficient of retaining and
fascinating the employees through skills which they needed (Mosadegh Rad &
Yarmohammadian, 2006).
A. Objectives
1) To explore the impact of Organizational commitment on employee
satisfaction.
2) To investigate the impact of employee performances on employee
satisfaction.
B. Research questions
Based on research objectives there are two research questions:
1) What is the relationship between organizational commitments and
employee satisfaction?
2) What is the relationship between employee performances and employee
satisfaction?
It is also obvious from existing literature that employee satisfaction is very
important for organizations and similarly the relation between employee
positive attitude and Human Resource practices is also verified by different
researchers (Edgar and Geare, 2005). This research study provides more strength
to existing literature by explaining the importance of employee satisfaction and
commitment for organizational performance.
Literature Review
A. Employee Job Satisfaction
According to Janssen, (2001) job satisfaction means how an employee of an
organization feels about work. These feelings may be positive or negative, more
positive feelings mean employee’s level of job satisfaction is high. In other words
positive emotions of an employee towards workplace also describe job
satisfaction. Locke, (1976) identified that there is a positive relationship between
job characteristics and the need of individuals. There is also common consent
among researchers that Maslow theory of needs also explains this relationship
between job characteristics and individual needs. Luthans (1998) indicated that
job satisfaction has three dimensions 1) job satisfaction relates to emotional
response of an employee to a job situation 2) job satisfaction can be measured by
© 2014 The authors and IJLTER.ORG. All rights reserved.
Organizational growth requires more workforce and new hiring but satisfied
and committed workers are true assets of an organization.
The idea of employee satisfaction has been a center of study for two decades
(Greasley, et. al., 2005) and is regarded as a serious issue for managerial
performance. Different academicians and organizational “gurus” strained the
importance of employee satisfaction. Theorists have common consent that
employee satisfaction is as essential as customer satisfaction (Chen, et. al., 2006).
Different theorists have defined employ satisfaction differently. Rousseau (1978)
recognized three factors of the employee satisfaction: 1) individuality of
organization 2) work task factors 3) personal character. Establishment which
raises high employee’s job satisfaction is also further proficient of retaining and
fascinating the employees through skills which they needed (Mosadegh Rad &
Yarmohammadian, 2006).
A. Objectives
1) To explore the impact of Organizational commitment on employee
satisfaction.
2) To investigate the impact of employee performances on employee
satisfaction.
B. Research questions
Based on research objectives there are two research questions:
1) What is the relationship between organizational commitments and
employee satisfaction?
2) What is the relationship between employee performances and employee
satisfaction?
It is also obvious from existing literature that employee satisfaction is very
important for organizations and similarly the relation between employee
positive attitude and Human Resource practices is also verified by different
researchers (Edgar and Geare, 2005). This research study provides more strength
to existing literature by explaining the importance of employee satisfaction and
commitment for organizational performance.
Literature Review
A. Employee Job Satisfaction
According to Janssen, (2001) job satisfaction means how an employee of an
organization feels about work. These feelings may be positive or negative, more
positive feelings mean employee’s level of job satisfaction is high. In other words
positive emotions of an employee towards workplace also describe job
satisfaction. Locke, (1976) identified that there is a positive relationship between
job characteristics and the need of individuals. There is also common consent
among researchers that Maslow theory of needs also explains this relationship
between job characteristics and individual needs. Luthans (1998) indicated that
job satisfaction has three dimensions 1) job satisfaction relates to emotional
response of an employee to a job situation 2) job satisfaction can be measured by
86
© 2014 The authors and IJLTER.ORG. All rights reserved.
estimating how well outcomes meet expectations 3) job satisfaction can be
determined through several job related attitudes.
Choo & Bowley (2007) indicated that satisfaction and employee performance are
interconnected with each other and satisfaction is the resultant of job
performance. Khan, Nawaz, Aleem, & Hamed, (2012) investigated job
satisfaction of employees and performance and established the fact that job
satisfaction provides input for better performancce to employeess. The sttructure
of performance mangament also emphasizes on employee job satisfaction
(Tinofirei, 2011). Job satisfaction is to create positive emotion among employees
about their occupation Robbin and Judge (2008). Greater job satisfaction creates
more positive emotions in the mind of employees about their job. Luthans (2006)
indicated that job satisfaction creates positive emotional feelings that results
from work evaluation. Nasaradin (2001) specified that the job satisfaction might
be an enjoyable or the positive emotional state which is resultant from review of
one’s job or his or her job experience.
B. Employee Job Performance
Performance is described as the attained result of skilled workers in some
specific situations (Prasetya & Kato, 2011). Dharma (1991) thought that the
performance is somewhat that is prepared, or products shaped and offered by a
cluster of people. Robbins (2001), indicated that when employee feels happy
about work related tasks then his performance is increased and he/she performs
tasks in better way. Brandt, Krawczyk & Kalinowski (2008) said that there is a
disagreement between employee personal life and performance. Prawirosentoso
(2000) Explored that performance is outcome of work in an efficient way with
cosiderable obligation for organization without interupting any law and
organizational goals Mangkunegara (2005) says that performance of employee is
the work consequence in excellence and the quantity that accomplished by
somebody in directing his/her job obligations.
C. Organizational Commitment
Employee’s affiliation with organization is regarded as organizational
commitment. Generally there are three dimensions of organizational
commitment 1) continuance commitment 2) normative commitment 3) affective
commitment (Allen and Meyer, 1996; Karrasch, 2003; Turner and Chelladurai,
2005; Greenberg, 2005; Boehman, 2006; Canipe, 2006). Meyer & Allen (1997)
indicated that these types are independent and are demonstrated by different
individuals at different levels of management in organizations. Similarly, porter
(1974) explained that organizational commitment is the extent to which
employees accept the goals and values of organization and are desirous to
remain in the organization. Committed personnel of an organization
demonstrate positive intentions to serve their organization and they think very
less about quitting the organization. (Hunt and Morgan, 1994; Robbins and
Coulter, 2003; Mowday, Steers, & Porter, 1982). According to Buchanan (1974)
organizational commitment is defined as the emotional commitment to achieve
the organizational objectives. Organizational commitment is “the aggregate
© 2014 The authors and IJLTER.ORG. All rights reserved.
estimating how well outcomes meet expectations 3) job satisfaction can be
determined through several job related attitudes.
Choo & Bowley (2007) indicated that satisfaction and employee performance are
interconnected with each other and satisfaction is the resultant of job
performance. Khan, Nawaz, Aleem, & Hamed, (2012) investigated job
satisfaction of employees and performance and established the fact that job
satisfaction provides input for better performancce to employeess. The sttructure
of performance mangament also emphasizes on employee job satisfaction
(Tinofirei, 2011). Job satisfaction is to create positive emotion among employees
about their occupation Robbin and Judge (2008). Greater job satisfaction creates
more positive emotions in the mind of employees about their job. Luthans (2006)
indicated that job satisfaction creates positive emotional feelings that results
from work evaluation. Nasaradin (2001) specified that the job satisfaction might
be an enjoyable or the positive emotional state which is resultant from review of
one’s job or his or her job experience.
B. Employee Job Performance
Performance is described as the attained result of skilled workers in some
specific situations (Prasetya & Kato, 2011). Dharma (1991) thought that the
performance is somewhat that is prepared, or products shaped and offered by a
cluster of people. Robbins (2001), indicated that when employee feels happy
about work related tasks then his performance is increased and he/she performs
tasks in better way. Brandt, Krawczyk & Kalinowski (2008) said that there is a
disagreement between employee personal life and performance. Prawirosentoso
(2000) Explored that performance is outcome of work in an efficient way with
cosiderable obligation for organization without interupting any law and
organizational goals Mangkunegara (2005) says that performance of employee is
the work consequence in excellence and the quantity that accomplished by
somebody in directing his/her job obligations.
C. Organizational Commitment
Employee’s affiliation with organization is regarded as organizational
commitment. Generally there are three dimensions of organizational
commitment 1) continuance commitment 2) normative commitment 3) affective
commitment (Allen and Meyer, 1996; Karrasch, 2003; Turner and Chelladurai,
2005; Greenberg, 2005; Boehman, 2006; Canipe, 2006). Meyer & Allen (1997)
indicated that these types are independent and are demonstrated by different
individuals at different levels of management in organizations. Similarly, porter
(1974) explained that organizational commitment is the extent to which
employees accept the goals and values of organization and are desirous to
remain in the organization. Committed personnel of an organization
demonstrate positive intentions to serve their organization and they think very
less about quitting the organization. (Hunt and Morgan, 1994; Robbins and
Coulter, 2003; Mowday, Steers, & Porter, 1982). According to Buchanan (1974)
organizational commitment is defined as the emotional commitment to achieve
the organizational objectives. Organizational commitment is “the aggregate
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