Organizational commitment and Job Satisfaction: A study of Manufacturing Sector *Dr. Garima Mathur, **Megha Salunke

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1 *Dr. Garima Mathur, **Megha Salunke ABSTRACT Everyone has some attributes and traits within their personality; few are loyal towards their organization as they want to be but few are loyal or committed because they feel attached to the organization. Job satisfaction is also one of the most important factors in the organization. If employees are satisfied with organization s policies then they will stay for long time with the organization. So the organizational commitment and job satisfaction are strong contributors in any organization & many a times success of the organization depends on these two factors. Although numerous research works have been done to study the relationship between organizational commitment and job satisfaction, no such research is still reported on the present context. The present research has been done on the employees of the manufacturing organizations in Gwalior, which resulted in the expected outcome stating that job satisfaction plays a significant role in achieving a committed workforce. Introduction Organizational Commitment Organization commitment plays an important role in any organization as employees much satisfied and committed naturally work better in organization and improve the productivity of the organizations (Oshagbemi, 1997; Yousef, 2000). According to Jaros (1997), organizational commitment is an important part of an employee s psychological state because employees who experience high organizational commitment are theorized to engage in behaviour such as citizenship activities and high job performance that are believed to be beneficial to the organization. Organizational commitment is a psychological state that binds the individual to organization in which they work (Allen & Mayer, 1991). Organizational commitment can influence organizational productivity and employee s *Associate Professor, Prestige Institute of Management, Gwalior. ** Student, Prestige Institute of Management, Gwalior 129

2 APOTHEOSIS: Tirpude s National Journal of Business Research (TNBJR). wellbeing (Meyer and Herscovitch 2001). Meyer and Allen (1997) argue that organizational commitment consists of individual's psychological status which specifies the individual's relation with organization that leads to making decision about staying with the organization. Moday, et al (1982) also define organizational commitment as staff's holding conviction to organizational goals and values, having tendency toward significant efforts representing organization as well as high interest in maintaining one's membership in organization. Researchers explained in their studies that organizational commitment is important factor to be familiar with organizational behaviour. Commitment to the organization is the strength of involvement with an organization (Brown 1969; Hall and Schneider 1972; Moday et al. 1979). Job Satisfaction Job satisfaction can be defined as that extent to which an employee or worker will be satisfied with their job and what is their feeling about different phases of their job. As we can see in the healthcare industries or in social work, women are less satisfied then men. Job satisfaction also is the perception (negative or positive) of an individual towards their job. According one study, individuals extremely satisfied with their work, coworkers and earnings will be more satisfied with their job. If an individual carries feeling of obligation and committed with his/her job then he/she will get more satisfaction and happiness. Brief (1998:86) defines job satisfaction as an internal state that is expressed by affectively and/or cognitively evaluating an experienced job with some degree of favor or disfavour. In general job satisfaction is the positive feeling about the job of an individual. Work is an important part of an individual s life and most of the time from people s life gets spent on their workplace for doing work; so it is important to know the factors related to job satisfaction. In Hackman and Oldham s (1980:160) definition of job satisfaction, job satisfaction exists when a job contains the following components: task identity, skill variety, task significance, autonomy, and feedback. Schematic diagram of Research Framework Job Literature Satisfaction Review Organizational Commitment Jamaludin (2009) tried to find out how organizational commitment can be 130

3 increased in the workplace. He established the relationship between organizational justice, organizational behavior and organizational commitment and found that procedural justice is more important to develop continuance and normative commitment and interactional justice is powerful influence of affective commitment. In this study he has not found any important impact of distributive justice in organizational commitment. Akhtar, Saleem et al (2012) found out that organizations should enhance the self efficacy of the employees which may lead to retention of employees of the organizations for longer time. They have also conducted studied on banks and have concluded that public sector banks should adopt the values and policies of private sector banks so that they can develop organizational culture to raise commitment of the employees towards their organizations. Altindis (2011) observed the relationship between organizational commitment and motivation in health professionals and has explained that health professionals with emotional commitment voluntarily participate in organizational activity. Md. Yusof (2007) described that some of the organizations are not properly administered by owner of the organization, which is why some of the employees feel overworked. If the employees performed their duties well on the job, then they will be appreciated by their employer; if they are not appreciated by their boss then employee s motivation decreases. This means that in any organization there should be proper communication between the employee and management and a people friendly environment should be formed. Sarboland (2012) revealed the relationship between emotional intelligence and organizational commitment among tax officers. They have observed that the employees who have high emotional intelligence are having high commitment towards their organization and the employees who are highly committed towards their organizations need to increase their emotional intelligence. Malik et al (2011) stated that the performance of the employees is associated with their organizational commitment. As professors and lecturers are serving their 131

4 APOTHEOSIS: Tirpude s National Journal of Business Research (TNBJR). duties to their institutions they will be more committed if there is fairness in provisions of rewards and its procedures with their institutions. Marc (2010) studied in his research, the effect of national cultural values self efficacy on organizational commitment. In this study he explained that impact of globalization is changing the business environment and interaction with different cultures in today s scenario. Perry, et al (2011), described in their paper that they studied the perceived empowerment practices, service efforts and turnover intensions among Chinese employees of service sector and also found out the role of job attitude towards this relationship. They explained that job satisfaction among employees involves work environment and organizational commitment, described as the emotional commitment, towards their organization. Sharma (2006) found out in his paper, which is on the organizational commitment and its determinant, and explained through this study that personal and situational factors both contribute to the organizational commitment of an employee. Ghorbani, et al (2012) revealed that there is positive relationship between organizational commitment and emotional intelligence. People can achieve higher success by having general intelligence. Mohamed, et al (2012) did a research on private banking sector employees and studied that there should be managers appointed who can recruit a satisfied and committed workforce. The result of this study supports leadership in managers, which can promote interdepartmental relationship among employees. Okpara (2004) explained that there is positive relationship between job satisfaction and organizational commitment. The study stated that if employees are satisfied with their work, coworkers, and supervision in the industry then they will be highly satisfied. The US employees are more satisfied than Nigerian employees in US MNCs. Khan, et al found out the relationship between organizational commitment, job satisfaction, turnover intension & procedural justice and explained the level of procedural justice in taking any decision. In any organization there may be different situations where fairness of justice is needed, like in allocation of resources in an institution, fair distribution of wages between male and female employees, etc. 132

5 Mohamadkhani, et al (2012) have reviewed literature and concluded that satisfied employees are more committed in organizations in hotel industry and also that emotional intelligence directly correlated with the commitment of the employees towards organization. This study resulted in a positive significant relationship between emotional self-awareness and maintaining membership. The hotel employees understand their own feelings, emotions and excitements and can compare it with other more enthusiastic ones to maintain and keep their job and feel good as they work with the organizations. Wegge, et al., (2004) depicted that there is correlation between job satisfaction and absenteeism and job involvement. Parvin, et al. (2011), describes about different factors contributing to affecting job satisfaction. This research explained that experience of work (pharmaceutical type) and other demographic variables leave impact on job satisfaction of the employees. They also found out that job satisfaction level of pharmaceutical company s employees was always at positive level. As they want competitive advantages in market, they should increase the level of satisfaction of their employees. Khan, et al., (2010) revealed that there is a positive relationship between job performance and organizational commitment of employees of oil and gas sector. They also found out that male employees perform better than female employees. Objectives of the study: To develop and standardize a measure for evaluating job satisfaction. To develop and standardize a measure for evaluating organizational commitment. To develop relationship between job satisfaction and organizational commitment. To evaluate the impact of job satisfaction on organizational commitment. To open new vistas of further research. Research methodology: The study is an empirical analysis since it is finding out the significant relationship between two variables. It involves questionnaire method to collect data from 150 respondents, in which target population was the employees from manufacturing organizations of Malanpur, Gwalior. 133

6 APOTHEOSIS: Tirpude s National Journal of Business Research (TNBJR). Individual employee was the sample element. Non Probability purposive quota sampling technique was used to select sample. Questionnaires were given to the respondents to fill out. From the questionnaire we are able to match the research questions posed with specific hypothesis tested; Likert type scale was used to collected data, where 1 indicated highly disagree and 5 indicated highly agree ; researcher used tools for data analysis like item to total correlation to check the internal consistency of questionnaires and then Reliability tests were applied to check the reliability of the questionnaires, in which we used cronbach alpha which is the measure by which we find reliability of the questionnaires; then we have used regression test to find out the cause and effect relationship between two variables. Hypothesis Formation: Ho: There is no relationship between job satisfaction and organizational commitment among employees of manufacturing unit. Result and discussion: Firstly consistency of all the items in the questionnaire was checked through item to total correlation. Table 1 and Table 2 shows that under this correlation, every item with total was measured and its value is found good. Table 1 Item-Total Statistics Scale Mean if Item Deleted Scale Variance if Item Deleted Corrected Item-Total Correlation Squared Multiple Correlation Cronbac h's Alpha if Item Deleted VAR VAR VAR VAR VAR VAR VAR VAR VAR VAR VAR VAR VAR Table 2 Item-Total Statistics Scale Mean if Item Deleted Scale Variance if Item Deleted Corrected Item-Total Correlation Squared Multiple Correlation Cronbach's Alpha if Item Deleted VAR VAR VAR VAR VAR VAR VAR VAR VAR

7 Reliability Statistics Cronbach's Alpha Based on Cronbach's Alpha Standardized Items N of Items Reliability test was carried out by using SPSS software and the reliability value through Cronbach s Alpha method was of first questionnaire and of second questionnaire and we can see the value is > 0.7 indicating that the questionnaires are highly reliable and can be considered for our study. Reliability of organizational commitment: Reliability of Job satisfaction: Reliability Statistics Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items SPSS Software and we found out the values of R-square, which is It indicates that job satisfaction contributes 11.5% in organizational commitment of employees. We have calculated F-value in our study, which is and it means that the model is best fitted and has high predictability; B-value is found to be which is significant at 0% level of significance, indicating that there is a positive relationship between job satisfaction and organizational commitment. In this case the hypothesis was rejected and we can say that the independent variable (job satisfaction) has significant impact on dependent variables (organizational commitment). The value of regression is 0.00, which is less than so we can say that the null hypothesis is rejected and there is an impact of job satisfaction on organizational commitment Regression: Regression is used to find out the impact of one variable on another variable as here we find out the impact of job satisfaction on organizational commitment. For this we used linear regression application in 135

8 APOTHEOSIS: Tirpude s National Journal of Business Research (TNBJR). Coefficients a Model Unstandardized Coefficients Standardized Coefficients Std. B Error Beta t Sig. 1 (Constant) Job satisfaction a. Dependent Variable: organizational commitment Discussions: In our study the independent variable job satisfaction has a positive impact on dependent variable organizational commitment ; there are many determinants like employee turnover, absenteeism and many more and our findings are consistent with Tett and Meyer s (1993) that executives can be more attached to their work than to the work. And Lisa M. Moynihan, et al (2000), in their studies have inferred that job satisfaction is somewhat of what people expect from their job and what they are actually receiving; so, if an employee expect a lot and gets little then many a times they will be unsatisfied. The results are related with Norazah Mohd Suki and Norbayah Mohd Suki (2011). CONCLUSIONS The present study has attempted to examine the impact of job satisfaction on organizational commitment i.e. studied on the employees of three different manufacturing organization and for that we have applied reliability tests, correlation and cronbach s alpha value, for testing reliability of items and then we found that the reliability was > 0.7, which means that items are highly reliable and internal consistency is also good which is > 0.14 and the study is based on finding the impact of job satisfaction on organizational commitment. For this we have used regression analysis and found that B- value is significant at 0% level of significance indicating strong positive relationship between job satisfaction and organizational commitment. So we can say that the null hypothesis is rejected and that there is an impact of job satisfaction on organizational commitment. References: Akhtar, Saleem et al (2012), Selfefficacy and optimism as predictors of organizational commitment among bank employees, International Journal of Research Studies in Psychology 136

9 Brief, A. P. (1998). Attitudes in and Around Organizations. Thousand Oaks, CA:Sage. Brown, M. (1969). Identification and Some Conditions of Organizational Involvement, Administrative Science Quarterly, 14 (3): Hackman, J.R., and Oldham, G. R. (1980). Job Redesign, Reading. M.A. Addison-Wesley. Halil dem_rer et al (2010) organizational commitment and job satisfaction: the influence of individual and organizational factors on sales persons Work attitudes in travel agencies. Mustafa Kemal University Journal of Social Sciences Institute, s Hall, D.T., Schneider, B. (1972). Correlates of Organizational Identification as a Function of Career Pattern and Organizational Types, Administrative Science Quarterly, 17 (3): Janis Maria Antony (2013) The influence of emotional intelligence on organizational commitment and organizational citizenship behavior, International Journal of Social Science & Interdisciplinary Research, Vol. 2 (3) Jaros, S.J An assessment of Meyer and Allen s (1991) therecomponent model of organizational commitment and turnover intention. Journal of Vocational Behavior 51: John O. Okpara (2004) Job Satisfaction and Organizational Commitment: Are there differences between American and Nigerian Managers Employed in the US MNCs in Nigeria? Jurgen Wegge et al (2004) Taking a Sickie : Job Satisfaction and Job Involvement as Interactive Predictors of Absenteeism, Kheyrollah Sarboland (2012) Assessment of the Relationship between Emotional Intelligence and Organizational Commitment of Employees: A Case Study of Tax Affairs Offices, Iran, Journal of Basic and Applied Scientific Research, 2(5) , K. Mohamadkhani1* and M. Nasiri Lalardi (2012), Emotional Intelligence and Organizational Commitment 137

10 APOTHEOSIS: Tirpude s National Journal of Business Research (TNBJR). between the Hotel Staff in Tehran, Iran, American Journal of Business and Management Vol. 1, No. 2, 2012, Lisa M. Moynihan et al (2000) The Influence of Job Satisfaction and Organizational Commitment on Executive Withdrawal and Performance. Madan Pal Sharma (2006) Organizational commitment and its determinants. Indian Journal of Industrial Relations, Vol.43, No.3. Mahmoud Ghorbani et al (2012) Emotional Intelligence and Personnel Organizational Commitment, Middle- East Journal of Scientific Research 11 (8): b Meyer J. & Allen N. (1997). Commitment in the workplace, SAGE Publications, Thousand Oaks, Meyer, J.P. dan Herscovitch, L Commitment in the workplace: Toward a general model. Human Resource Management Review. 11: M Sheik Mohamed et al (2012) Relationship among Organizational Commitment, Trust and Job Satisfaction: An Empirical Study in Banking Industry, Research Journal of Management Sciences, Vol. 1(2), 1-7 Mosammod Mahamuda Parvin Et Al (2011) Factors Affecting Employee Job Satisfaction Of Pharmaceutical, Australian Journal Of Business And Management Research, Vol.1 No.9 [ ] Mowday, R., Steers, R., & Porter, L. (1979). The Measurement of Organizational Commitment, Journal of Vocational Behavior, 14: Mowday R.T., Porter L.W & Streets R.M. (1982). Employee-organization linkages: The psychology of commitment, absenteeism and turnover, Academic Press, New York, Muhammad Ehsan Malik et al (2011) Impact of Perceived Organizational Justice on Organizational Commitment of Faculty: Empirical Evidence from Pakistan, Interdisciplinary Journal of Research in Business, Vol. 1, Issue. 9, (pp.92-98) Muhammad Riaz Khan et al (2010) The Impacts of Organizational Commitment on Employee Job Performance, European Journal of Social Sciences Volume

11 Norazah Mohd Suki et al (2011) Job satisfaction and organizational Commitment: the effect of gender, International Journal of Psychology Research, Volume 6, Issue 5, pp Oshagbemi T. (1997). Job satisfaction and dissatisfaction in higher education, Education & Training, 39 (9), Rozman Hj. Md. Yusof (2007) Relationships between Emotional Intelligence And Organizational Commitment and Job Performance among Administrators In A Malaysian Public University Saima Khan et al Procedural Justice & Organizational Performance, Abasyn Journal of Social Sciences; Vo. 4 No.1 Selma Altindis (2011) Job motivation and organizational commitment among the health professionals: A questionnaire survey, African Journal of Business Management Vol. 5(21), pp , Tett, R.P., & Meyer, J.P. (1993). Job satisfaction, organizational commitment, turnover intention, and turnover: Path analyses based on metaanalytic findings. Personnel Psychology, 46, Virginie Marc (2010) A study of the effect of National culture value and self efficacy on organizational commitment in Haiti. Zaini Jamaludin (2009) Perceived Organizational Justice And Its Impact To The Development Of Commitments: A Regression Analysis, World Journal of Management Vol.1 No.1 Pp ANNEXURE: Table: showing that F-value and R-squre value Model Std. Error Change statistics R Adjusted of the R Square F Durbin- watson R Square R Square Estimate Change Change df1 df2 Sig F- change a

12 APOTHEOSIS: Tirpude s National Journal of Business Research (TNBJR). ANOVA b Model Sum of Mean Squares Df Square F Sig. 1 Regression a Residual Total a. Predictors: (Constant), job satisfaction b. Dependent Variable: organizational commitment Table showing reliability of each and every question of job satisfaction questionnaire Item Means Mean Minimu m Summary Item Statistics Maximu m Range Maximum / Minimum Variance N of Items Table showing reliability of each question, which we have taken in our questionnaire on organizational commitment. Item Means Mean Minimu m Summary Item Statistics Maximu m Range Maximum / Minimum Variance N of Items Regression Test: Table Showing comparison between organizational commitment and Job Satisfaction Descriptive Statistics 140

13 Mean Std. Deviation Organizational commitment Job satisfaction N Pearson Correlation Sig. (1-tailed) N Organisational commitment Correlations organisationalcommit ment jobsatisfaction Job satisfaction Organizational..000 commitment Job satisfaction.000. Organizational commitment Job satisfaction Minimum Residuals Statistics a Maximu m Mean Std. Deviation Predicted Value Residual Std. Predicted Value Std. Residual a. Dependent Variable: organizational commitment N 141

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