THE IMPACT OF PERFORMANCE APPRAISAL SYSTEM KNOWLEDGE, JOB OVERLOAD, ORGANIZATIONAL COMMITMENT AND OVERALL JOB SATISFACTION ON VINGROUP’S EMPLOYEE ON THE JOB BEHAVIOR
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MASTER OF BUSINESS ADMINISTRATION
INTERNATIONAL PROGRAM
&
RESEARCH PROJECT
(BMBR5103)
THE IMPACT OF PERFORMANCE APPRAISAL SYSTEM KNOWLEDGE,
JOB OVERLOAD, ORGANIZATIONAL COMMITMENT AND OVERALL JOB
SATISFACTION ON VINGROUP’S EMPLOYEE ON-THE-JOB BEHAVIOR
Ho Chi Minh City, December 2015
Advisor’s Assessment
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Advisor’s signature
Page 1 of 66
ACKNOWLEDGEMENTS
Though only my name appears on the cover of this dissertation, a great many
people have contributed to its production. I owe my gratitude to all those people
who have made this dissertation possible and because of whom my graduate
experience has been one that I will cherish forever.My deepest gratitude is to my
advisor, DBA. Khai Nguyen. I have been amazingly fortunated to have an advisor
who gave me the freedom to explore on my own and at the same time the guidance
to recover when my steps faltered. He has devoted her precious time to help me
complete this thesis. Thanks to his endeavor, I have successfully done this thesis.
Also, I would like to express gratitude to my family: my parents and my sister, who
have loved me unconditionally and support me during this hard time. Furthermore,
I am thankful to my coleagues – vingroup’s staff who participated in my survey and
have been putting so much effort in helping me conduct this survey and complete
this research. Finally, I am thankful to OUM and HUTECH University for
providing me such a lifetime opportunity in doing this thesis.
Page 1 of 66
Table of Contents
ACKNOWLEDGEMENTS
.............................................................................................................................................
1
LIST
OF
FIGURES
..........................................................................................................................................................
4
LIST
OF
TABLES
............................................................................................................................................................
5
ABBREVIATIONS
...........................................................................................................................................................
6
ABSTRACT
.......................................................................................................................................................................
7
CHAPTER
1:
INTRODUCTION
..................................................................................................................................
8
1.1
Company
introduction
..............................................................................................................................
8
1.1.1
Company Description
...........................................................................................................................
8
1.1.2
History and milestones
.......................................................................................................................
10
1.1.3
Organizational structure of Vingroup
...........................................................................................
11
1.1.4
Personnel structure
..............................................................................................................................
12
1.2
Research
introduction
............................................................................................................................
15
1.2.1 Motivation of the study
..........................................................................................................................
15
1.1.2
Significance of the study
...................................................................................................................
15
1.1.3
Purpose of the study
............................................................................................................................
16
1.1.4
Question of the study
..........................................................................................................................
16
CHAPTER
2:
LITTERATURE
REVIEW
................................................................................................................
17
2.1
Performance
Appraisal
System
Knowledge
................................................................................
17
2.2
Job
overload
..............................................................................................................................................
18
2.3
Organizational
commitment
..............................................................................................................
19
2.4
Overall
Job
satisfaction
.........................................................................................................................
20
2.5
On-‐the-‐job
behavior
...............................................................................................................................
21
2.6
The
relationship
between
Performance
Appraisal
System
Knowledge
and
.................
21
On-‐the-‐job
behavior
..............................................................................................................................................
21
2.7
The
relationship
between
Job
overload
and
On-‐the-‐job
behavior
......................................
22
Page 2 of 66
2.8
The
relationship
between
Organizational
commitment
and
On-‐the-‐job
behavior
......
23
2.9
The
relationship
between
Overall
Job
satisfaction
and
On-‐the-‐job
behavior
.................
24
CHAPTER
3:
HYPOTHESES
AND
METHODS
...................................................................................................
25
3.1
Research
Model
..........................................................................................................................................
25
3.1.1
Dependent Variables
........................................................................................................................
25
3.1.2
Independent Variables
......................................................................................................................
26
3.1.3
Constructs
..............................................................................................................................................
26
3.2
Instruments
.................................................................................................................................................
27
3.3.
Hypotheses
development
..........................................................................................................................
35
3.4
Procedure
for
Data
Collection
and
Analyze
...................................................................................
36
CHAPTER
4:
RESULTS
AND
FINDINGS
..............................................................................................................
38
4.1
Demographic
Characteristics
of
the
respondents
.......................................................................
38
4.3
Descriptive
statistic
..................................................................................................................................
42
4.4
Correlations
Matrix
..................................................................................................................................
43
4.5
Hypothesis
Testing
...................................................................................................................................
44
CHAPTER
V:
CONCLUSION
.....................................................................................................................................
47
5.1
Summary
and
Discussion
......................................................................................................................
47
5.2
Management
Implications
.....................................................................................................................
48
5.3
Limitations
and
Further
Research
Recommendation
................................................................
50
REFERENCES
................................................................................................................................................................
52
APPENDIX
1
..................................................................................................................................................................
55
APPENDIX
2
..................................................................................................................................................................
61
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LIST OF FIGURES
Figure 1: Vingroup’s Profile .......................................................................................9
Figure 2: Vingroup’s Organizational Chart ..............................................................11
Figure 3: Research model .........................................................................................25
Figure 4: Dependent Variables .................................................................................25
Figure 5: Independent Variables ...............................................................................26
Figure 6: A summary of demographic characteristics of the respondents ................39
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LIST OF TABLES
Table 1: Summary of Cronbach’s Alpha of the variables.........................................41
Table 2: Descriptive Statistics ..................................................................................42
Table 3: Summary of Correlations of all variables ...................................................43
Table 4: Model Summary of all hypotheses .............................................................45
Table 5: Coefficients of all hypotheses.....................................................................45
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ABBREVIATIONS
VINGROUP JSC
Vingroup Joint Stock Company
HRM
Human Resource Management
SPSS
Statistical Packages for the Social Science
PASK
Performance Appraisal System Knowledge
JO
Job Overload
OC
Organizational Commitment
OJS
Overall Job Satisfaction
OTJB
On-The-Job Behavior
Page 6 of 66
ABSTRACT
This study examined the impact of performance appraisal system knowledge, job
overload, organizational commitment and overall job satisfaction on Vingroup’s
employee on-the-job behavior. Data was collected through the use of standardized
questionnaires. Questionnaires were delivered personally to 250 managerial and
non- managerial employees in all over 10 member companies of Vingroup
Corporation; there were 238 questionnaires returning, in which 230 completely
responses were used for the statistical analysis. The collected data were computed
and analyzed through factor analysis, Cronbach’s alpha, descriptive statistics,
correlation, and multiple regression analysis. Result: The results supported the
hypothesis that performance appraisal system knowledge, job overload,
organizational commitment and overall job satisfaction have significant relationship
with employee’s on-the-job behavior. Conclusion: The findings in this study would
help managers of Vingroup Corporation to formulate strategies that involved work
factors such as workload, appraisal to improve the management of human resource
development. These strategies would have great impact on employee’s performance
hence improve job’s efficiency and effectiveness of the organization. Therefore, it
was worth the effort for the organization to train and educate their managers on the
impact of performance appraisal system knowledge, job overload, organizational
commitment and overall job satisfaction on the motivation on their employees’
behavior.
Keywords: performance appraisal system knowledge, job overload, organizational
commitment, overall job satisfaction and on-the-job behavior.
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CHAPTER 1: INTRODUCTION
1.1 Company introduction
Currently, the world knows Vietnam as a fast growing country. To contribution in
this recognition, Vingroup has played a great role in leading Vietnam reputation to
the worldwide. Vingroup Joint Stock Company (“Vingroup”) is a leading private
economic corporation in Vietnam, engaging in the fields of tourism and high-end
real estate with two strategic brands, Vinpearl and Vincom.
Joining in the market in 2002, Vincom spared no efforts to become Vietnam’s
premier upmarket real estate brand with a number of shopping mall, office and
apartment complexes, and large-scale modern mixed-use townships, spearheading
the trend of high-end ecological urban zones in Vietnam. In the current downturn
economy, Vingroup’s projects still stand out from the market thanks to the Group’s
commitment to progress and quality, which has established its strong brand and
excellent reputation
In order to meet the demand for developing speed, human resource management
has participated in Vingroup’s success. With the workforce of over 500,000
employees, Vingroup has shown the important of managing especially
understanding employees’ behavior from that delivered appropriate strategy to gain
the devote from its staff.
This study explored how performance appraisal system knowledge, organizational
commitment, overall job satisfaction and job overload influence on Vingroup’s
employee on-the-job behavior. This chapter also presents the motivation of the
study, significant of the study, purpose of the study, and the questions of the study
and the key words of study.
1.1.1 Company Description
After joining the market in 2001, Vingroup has recently begun operating top quality
healthcare, and fitness and beauty care facilities under two new strategic brands,
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Vinmec and Vincharm. The first Vinmec International Hospital in Hanoi, featuring
600 single in-patient rooms and clinics, was officially in augurated in January 2012.
Vingroup has always played the role of the pioneer and driver of consumer trends in
all its business sectors through offering top quality and five-star international
standard products.
In January 2012, Vinpearl JSC was merged into Vincom JSC, marking the official
operation of Vingroup Joint Stock Company, ranking among the top major
companies on Vietnam’s stock market in terms of market capitalization.
Vingroup is also known on the international capital market as the first Vietnamese
enterprise to have successfully issued international convertible bonds listed on the
Singapore Exchange (SGX). By 2012, the Group had raised a total of US $400
million. Operating with four strategic brand names: Vincom, Vinpearl, Vinmec and
Vincharm, owing and controlling interest in numerous high-end real estate and
tourism projects, Vingroup has become one of the leading private economic groups
in Vietnam, boasting dynamic and sustainable growth as well as significant
potential for integration into Asia and the world.
CORPORATION’S PROFILE
Corporate’s English name
Vingroup Joint Stock Company
No.7, Bang Lang Street, Viet Hung Ward,
Head office
Long Bien District, Hanoi
Phone – Website
+84 4 39749999 – www.vingroup.net
Business Registration Certificate No. 0103001016
Stock exchange
HOSE ( Ho Chi Minh Stock Exchange,
Vietnam)
CORPORATION’S PROFILE
Figure 1: Vingroup’s Profile
Page 9 of 66
1.1.2 History and milestones
January 2012:
- Completed the procedures for the merger of Vinpearl Joint Stock Company into
Vincom, increasing the total charter capital to approximately VND5,500 billion;
Approved the Company’s development strategy under four focal brand names:
Vincom (Real estate), Vinpearl (Tourism & Recreation), Vincharm (Fitness and
Beauty Care), Vinmec (high quality Healthcare Services), operating under a new
legal entity: Vingroup Joint Stock Company.
January 7, 2012: Inaugurated Vinmec International Hospital, one of the most
modern and luxurious hospitals in Vietnam.
March 2012: Successfully issued, for the 2nd time, USD185 million of international
convertible bonds listed on the Singapore Exchange Securities Trading Limited.
June 2012: Additionally issued USD115 million of international convertible bonds,
bringing the total international convertible bonds issued in 2012 to USD300 million.
October 2012: Inaugurated Vincom Center A Ho Chi Minh City – Vietnam’s luxury
complex of shopping, recreation and gastronomy.
December 2012: The issuance of USD300 million of international convertible
bonds was honored as “Best Vietnam Deal 2012” by Finance Asia, the most
prestigious banking and finance magazine in Asia.
January 2013: Vingroup became a founding member of the World Economics
Forum.
April 2013: Officially joined Vietnam’s education market with Vinschool brand, a
full continual system from kindergarten through high school.
May 2013: Attracted an investment of USD200 million from Warburg Pincus, a
leading global private equity firm, into Vincom Retail JSC., a subsidiary of
Vingroup.
Page 10 of 66
July 2013: Inaugurated Vincom Mega Mall Royal City, Asia’s largest underground
Retail and Entertainment Complex.
October 2013: Launched VinKC brand (Kids World), a chain of shopping centers,
educational consultancies and health care services, exclusively dedicated to
children, Vingroup officially enter retail market.
November 2013: Vingroup successfully debuted in the international debt capital
markets after pricing US$200 million of notes and became the first Vietnamese
corporate to successfully issue USD – denominated bonds.
November 2013: Launched Vinhomes brand, marking an importantly strategic
milestone in the process of planning, building and developing a product line of
premium serviced residential properties, as well as forming Vingroup’s completely
distinctive high-class service standards.
1.1.3 Organizational structure of Vingroup
Figure 2: Vingroup’s Organizational Chart
Page 11 of 66
1.1.4 Personnel structure
As at 31 December 2010, Vingroup had 1,782 employees, representing a year on
year increase of 27.28%. This number is expected to increase in the coming years
in accordance with the Company’s development plans.
The quality of Vingroup’s human resources, especially its Vietnamese workers, has
gradually improved to meet the stringent international standards for management
and services for leading recreational
Working Policy
Working hours: The Company applies its working hour policy in accordance with
the Vietnamese Labor Code. In the event of tight deadlines, the Company may
require employees to work overtime, in which case it will offer satisfactory
compensation.
Holiday leave: All employees are entitled to take off from work for Tet and
public holidays as specified in the Labor Code. Employees who have served in
the Company for 12 months or more are entitled to 12 vacation days per year.
Moreover, for every 5 years working at the Company, employees are entitled to
an additional one day off.
Sick leave and maternity leave: Employees on sick leave and maternity leave are
entitled to an allowance covered by the Social Insurance Fund in accordance with
the Labor Code.
Working Conditions: White-collar employees are provided with comfortable
and modern offices in order to ensure work productivity. Blue-collar workers
are well-equipped with the required essentials for labor safety and sanitation.
Labor safety and fire prevention and control principles are strictly adhered to by
the Company.
Recruitment, Training, and Policy for Attracting Talented Workers
Page 12 of 66
Vingroup believes it is of the utmost importance to formulate an optimal
remuneration policy, training, and personnel development programs for its
employees, as well as to build a solid corporate culture that fosters a professional
and friendly working environment.
To satisfy the growing demand for extensive and intensive human resources,
Vingroup finds its recruits on a regular basis or through job exhibitions. The
Company’s main objective is to attract competent people to the company through
its commitment to satisfactory benefits.
In addition to salary and remuneration policies that attract talented people, the
Company offers other benefits including accommodations, meals, travel
expenses, and other necessary services.
Vingroup applies the practice of on-the-job training where managers train their
employees. Training and learning is conducted on an as needed basis. The Company
also provides training through skills building, on-site overseas training, and field
trips to domestic and international hotels and resorts. The training programs and
their auxiliary activities always drive employees towards building Vinpearl’s
corporate culture, which highlights the professionalism, etiquette, and work ethic in
Vingroup’s workforce.
Remuneration, bonuses, and benefits policies
Vingroup JSC’s compensation and reward policies are contingent on each position
and are 10%-15% higher than average levels. These policies take into account
employees’ skills and qualifications by carefully assessing performance and
contributions. In addition, the Company’s objective is to motivate its staff to
exhibit the best of their capabilities and sense of responsibility for the sake of
higher productivity, quality, and efficiency. In 2010, the Company conducted four
salary reviews in order to offer salary increases of 5%-10% or higher for those with
excellent performance and/or remarkable contributions. This demonstrates the
Page 13 of 66
flexibility of the Company’s salary and promotion policy, which ensures
satisfactory offers and benefits for its staff.
The Company as stipulated by the law deducts social security, health insurance,
and unemployment insurance. In addition, all employees are paid 24/24 personal
accident insurance. The company also organizes visits to employees on serious
sick leave and/or maternity leave, gift giving for staff for birthdays, weddings,
Tet and other public holidays and the Company’s Anniversary. Benefits also
include holiday trips, spiritual activities, sports activities, and parties in order to
further enhance employees’ spiritual livelihood, solidarity, and commitment.
The Company also promptly praises and generously rewards employees who
deliver excellent performance, make remarkable contributions to the Company’s
business efficiency, and help enhance the service quality, prestige, and image of
the Company; prevent 20, contribute valuable innovative ideas for the Company’s
performance; receive letters of commendation from customers and set a good
example for other staff, etc. Commendation is always companied by a Certificate
of Merit and material rewards (in cash or in other forms such as promotion, early
salary review, and year-end rewards, etc.)
Work safety and sanitation
The Company cooperates with the Labor Inspectorate (of Hanoi’s Department of
Labor, Injured Veterans, and Social Affairs) to conduct regular training on work
safety and sanitation at the Company so as to ensure constant labor protection. In
addition to periodic health checks for staff, Vingroup also conducts work
environment checks on a regular basis to promptly detect vulnerabilities and to
ensure that all staff members are equipped with the basics for labor safety. There
were no serious labor accidents or occupational diseases in Vingroup during the
past year.
Collective activities
Page 14 of 66
The Company focuses much of its attention on staff’s collective activities,
benefits, and spiritual life. The Company has a Staff Union, which helps create
an environment that bonds staff members, encourages them to capitalize on
their abilities and helps them enhance solidarity. These concepts build and
promote a corporate culture that bolsters the Company’s position through
activities like participation in sports, singing, or skills competitions organized
by the local authorities or the tourism and real estate sector.
1.2 Research introduction
1.2.1 Motivation of the study
In business, human resource management may not be the direct tool to earn profit in
the organization, but it is like the spine to create the basic and sustainable structure
for the firm. Fully being aware of that fact, Vingroup has always been considerate
towards its employees’ living conditions and largely engaged in community
building and environmental protection activities. Vingroup is committed to
formulating a modern and professional work environment for employees with the
career development, opportunities, employer interests and the rights and benefits of
employees. For that reason, investigating in studying factors affecting to
employee’s behavior is always the priority of the corporation
1.1.2 Significance of the study
This study will be conducted from either managerial employees or non-managerial
employees to exclude the bias of self-report. The opinion of employees in Vingroup
Corporation about the impact of performance appraisal system knowledge, job
overload, organizational commitment and overall job satisfaction on Vingroup
Corporation’s employee job satisfaction will be collected to see what the being
implemented side evaluates the company HRM policies.
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1.1.3 Purpose of the study
The purpose of the current study is to investigate the impact of performance
appraisal system knowledge, job overload, organizational commitment and overall
job satisfaction on Vingroup’s employee on-the-job behavior
1.1.4 Question of the study
This study addresses some points follow:
- How are the impact performance appraisal system knowledge on Vingroup’s
employee on-the-job behavior
- How are the impact of job overload on Vingroup’s employee on-the-job behavior
- How are the impact of organizational commitment on Vingroup’s employee onthe-job behavior
- How are the impact of related overall job satisfaction on Vingroup’s employee onthe-job behavior
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CHAPTER 2: LITTERATURE REVIEW
This chapter presents the body of organizational literature containing the base
theory and relevant other theories used in this study. This chapter includes the
following:
-
(1) Performance Appraisal System Knowledge
-
(2) Job overload
-
(3) Organizational commitment
-
(4) Overall Job satisfaction
-
(5) On-the-job behavior
-
(6) The relationship between Performance Appraisal System Knowledge and
On-the-job behavior
-
(7) The relationship between Job overload and On-the-job behavior
-
(8) The relationship between Organizational commitment and On-the-job
behavior.
-
(9) The relationship between Overall Job satisfaction and On-the-job
behavior
2.1 Performance Appraisal System Knowledge
Performance appraisal system knowledge could be described as supervisor and
subordinate’s formal and organized interaction. It is usually presented in the form of
an annual or semiannual interview, in which the individual performance of an
employee is checked and considered. The purpose is to identify subordinate’s
strengths and shortcomings as well as opportunities for development and skills
improvement. In many organizations - but not all – results from the performance
appraisal system are indirectly and directly used to help determine what the reward
should be. Indeed, the purpose of the appraisal results is to pinpoint the better
performing subordinates who should receive the major part of available monetary
Page 17 of 66
increases, promotions, and bonuses. Reviews of subordinate performance could be
one of the best ways to improve productivity, boost morale and increase
performance. When done properly, performance evaluation could be considered as a
powerful planning tool for management. It could also offer essential feedback to
subordinates.
In an organization, performance evaluation is frequently performed for many
different purposes, including managerial decisions (e.g., rise, promotion), critical
feedback, improvement, and workforce research. As a result, performance
appraisals could be considered one of the most important human resource structures
in organizations since they affect important decisions which leads to a variety of
human resource reactions and consequences (Judge & Ferris, 1993). Because of its
dominance and significance for every organization, performance appraisal is also
among the most broadly researched areas in organizational as well as industrial
psychology (Murphy & Cleveland, 1995).
2.2 Job overload
Job overload could be defined as the psychological and physiological reactions to
events which are interpreted to be threatening. It is also considered “a hypothetical
state that is influenced by an environmental force and is demonstrated by reactions
at various physiological, psychological, and social levels” (Tolman and Rose,
1985). Thompson (2002), indicated that anxiety, depression, frustration, despair,
fear, and helplessness are psychological results. In the literature, stress has drawn a
great deal of attention together with the resources that create stress. One of the most
commonly researched indicators of stress is job overload, which is the circumstance
that arises when there is no correction between what is expected from employees
and what is being interested by them. Because of the job overload staff suffer from
anxiety, low work performance and most essential from stress, it results in falling
job satisfaction, and decreasing profits (Altaf, 2011).
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In the research of Thompson (2002), explained that staff that maintain high stress
level might experience effects such as dropped life fulfillment and self-esteem.
Influence of stress has been identified in almost all aspects relating to work as
Robinson et al. (2011), in their research about machineries work has showed that for
those only produced stress redistribution and there is a lack of relaxation, their job is
stressful because of their heavy workload, as well as the uncertainty and struggle
they come across at work. In different studies researchers paid attention to
individual based anxiety, some people are weaker when it comes to situational
stresses than others (Chiu and Greenhaus, 2002), causes of stress are different
between male and female staff (Fu and Shaffer, 2001), and long working hours and
high stress could have impact on both men and women (Lo, 2003). At work,
performance requires complete satisfaction and enthusiasm and if it is not provided
it could lead to undesirable work-related consequences: poor job performance,
turnover, broken relationships (Halbesleben and Buckley, 2004). Degree of worklife conflicts rises due to job stressors, for instance, work conflict, job overload, and
job uncertainty (Fu and Shaffer, 2001), and quantifiable work overload was
indicated to be the cause of stress which has been brought by job difficulty and time
pressure (Mazloum et al., 2008).
2.3 Organizational commitment
The concept of organizational commitment has attracted considerable attention over
recent years and has become a central objective of human resource management.1
As Guest, 1987 indicated, HRM policies are designed to “maximize organizational
integration, employee commitment, flexibility and quality of work” 2. For the topic
in question our focal interest refers to “Commitment” which can be described as
attachment and loyalty. Individuals can display this attachment and loyalty at a
variety of levels: their job, profession, department, boss or organization.
Realistically then, commitment may therefore be diverse and divided between any
of these. More specifically, organizational commitment has been defined by
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Mowdray, 1992 as consisting of three components: “an identification with the
goal’s and values of the organization, a desire to belong to the organization and a
willingness to display effort on behalf of the organisation.”3 This essay will
therefore analyses the notion of organizational commitment, and consider its
strengths and weaknesses in determining why managers would want it in their
workforce. In addition, this essay will also highlight whether there is any costeffective way to secure commitment.
The term commitment can be defined in various ways. For example, O’Reilly et al,
focus on the “psychological bond that ties the employee to the organisation”.4 This
bond has three forms; compliance, identification and internalization. Similarly,
Meyer & Allen have proposed a three-component model, which highlights affective
commitment (individuals want to be attached to the organization), continuance
commitment (individuals feel they need to be attached to the organization) and
normative commitment (individuals feel they ought to remain with the
organization). These various types of commitment will have varying effects on the
organization’s performance and a person can display aspects of all of them.
2.4 Overall Job satisfaction
Training director, human resource managers, and corporate executives are in
agreement that supervisor play a vital role in management of organization (Bittel &
Ramsey, 1983; Walker & Gutteridge, 1979). Proponents of participative
management stress the importance of effective supervisor to the organization’s
ability to realize productivity gains from participative management programs
(Glaser, 1980). Supervisory involvement in subordinate career planning and
development is deemed to be a key factor in the effectiveness of organizational
career planning and development programs (Walker & Gutteridge, 1979). Finally,
labor relations experts note that a positive supervisor-subordinate relationship is a
necessary condition for an effective union-management relationship (Elkouri &
Elkouri, 1983; Stepp, Baker, & Barrett, 1982). Behavioral research in labor relation
Page 20 of 66
also shoes that along with pay, fringe benefits, and job security, dissatisfaction with
one’s supervisor is a major cause of unionization (Getman, Goldberg, & Herman,
1976; Lelouarn, 1980; Schriesheim, 1978; Warner, Chisholm, & Munzenrider,
1978). Moreover, in a study conducted with nearly 88,000 clericals, sales, and
technical employees of Sears and Roebuck, Hammer and Smith (1978) found that
the strongest predictor of unionization attempts was dissatisfaction with immediate
supervision
2.5 On-the-job behavior
On the Job Behavior (OJB) is expected to be positive. When employee shows
positive work behavior, they will volunteer for additional tasks, overtime, will try to
learn new things and will be welcoming to help others. And in this extent, an
employee will waste time allocated for doing jobs. On the other side, negative job
behavior will be indicated by wasting job time, being absent for no reason, spending
most of the time chatting, doing personal tasks during office hours, leaving early,
not showing respect to supervisor or co-workers. Previous researches shows that
OJB has positive association with satisfaction, commitment, involvement, tension,
fatigue, and is negatively associated with burnout, organizational politics, justice,
and burnout (Cropanzano, Howes, Grandey, & Toth, 1997a). Job behavior has been
found having positive relation with motivation (Bigley & Steers, 2003), positive
with job satisfaction (Li, Liang, & Crant, 2010), performance (Hamid & Yahya,
2011; Nielsen, Bachrach, Sundstrom, & Halfhill, 2012), Organizational Justice
(Andrews et al., 2014).
2.6 The relationship between Performance Appraisal System Knowledge and
On-the-job behavior
Less attention has been focused on qualitative criteria such as subordinates'
reactions to appraisals and the factors contributing to these reactions (Cardy &
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Dobbins, 1994; Murphy & Cleveland, 1995). In fact, the relative lack of research
attention directed toward reaction criteria compared with psychometric and
accuracy criteria led Murphy and Cleveland to refer to reaction criteria as one class
of ‘'neglected criteria" that might be critical in evaluating the success of an appraisal
system.
It seems reasonable to expect that subordinates' reactions to appraisal systems
would have just as much impact on the success and effectiveness of an appraisal
system as the more technical aspects of the system. In fact, Bernardin and Beatty
(1984) suggested that subordinates' reactions are usually better indicators of the
overall viability of an appraisal system than are more narrow psychometric indices,
such as leniency or halo. After all, one may develop the most technically
sophisticated, accurate appraisal system, but if that system is not accepted and
supported by employees, its effectiveness ultimately will be limited (Cardy &
Dobbins, 1994; Carroll & Schneier, 1982; Lawler, 1967; Murphy & Cleveland,
1995). Furthermore, Hedge and Borman (1995), in their discussion of the changing
nature of performance appraisals, suggested that worker attitudes toward
performance appraisal may play an increasingly important role in appraisal
processes as the procedures and systems continue to develop.
As mentioned previously, the reactions of subordinates regarding their performance
appraisal can be an important determinant of the ultimate success and effectiveness
of the appraisal process. Researchers have assessed many different types of
subordinate reactions and have operationalized these reactions in various ways. The
most frequently assessed subordinate reaction to performance appraisal has been on
the job behavior.
2.7 The relationship between Job overload and On-the-job behavior
One important result discussed by the researchers in the field of psychology is that
due to job related issues, employee’s behavior will be affected and there will be
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negativity in both behavior and attitude (Maslach, 2003). Furthermore, it can be
redirected to the point that change in behavior is a result of difference in level of
expectations. Therefore, excess of workload and too many demands will lead to
fatigue, exhaustion and finally to change in on-the-job behavior. One study found a
negative relationship between job overload and on-the-job-behavior (Lee &
Ashforth, 1996)
2.8 The relationship between Organizational commitment and On-the-job
behavior
Brett et al. (1995) examined the relationship between organizational commitment and
performance using economic dependency on work as a moderator. They reported that
there are stronger relationships between organizational commitment and performance
for those with low financial requirements than for those with high requirements. Putti et at
(1990) also concluded that there is a linkage between these two variables. Meyer et at
(1989) examined the relationship between job performance and affective and continuance
commitment and concluded that affective commitment, which refers to identification with,
involvement in, and emotional attachment to the organization, is correlated positively and
continuance, which refers to commitment based on employees' recognition of the costs
associated with leaving the organization, is correlated negatively with all measures of
performance. Mayer and Schoorman (1992) also investigated the organizational commitment-job
performance relationship. Results indicated that performance is more strongly related to
value commitment (commitment leading to production). Kalleberg and Marsden (1995)
discovered a modest relationship between organizational commitment and job performance,
while Leong et al. (1994) found a weak correlation between these two variables. On the
other hand, Wright (1997) found a negative correlation between measures of
organizational commitment and job performance.
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