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Evaluating the effects of job satisfaction in ANZ bank vietnam

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RESEARCH PROJECT
(BMBR5103)

EVALUATING THE EFFECTS OF JOB SATISFACTION
IN ANZ BANK VIETNAM

STUDENT’S FULL NAME

: HOANG MINH THANG

STUDENT ID

: CGS00018518

INTAKE

: SEPTEMBER, 2014

ADVISOR’S NAME & TITLE

: NGUYEN THE KHAI, DBA

December, 2015

Page | i


ADVISOR’S ASSESSMENT
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Advisor’s print name and signature

________________


Page | ii


TABLE OF CONTENTS
ACKNOWLEDGEMENTS .................................................................................. 5
LIST OF FIGURES ............................................................................................... 6
LIST OF TABLES................................................................................................. 7
ABBREVIATIONS................................................................................................ 8
ABSTRACT ........................................................................................................... 9
CHAPTER I - INTRODUCTION ...................................................................... 10
1.1 Company Introduction .................................................................................. 10
1.2 Research Introduction ................................................................................... 14
1.2.1 Problem statement ..................................................................................... 14
1.2.2 Purpose of the study................................................................................... 15
1.2.3 The scope of the research ........................................................................... 15
1.2.4 Research questions..................................................................................... 16
CHAPTER II – LITERATURE REVIEW......................................................... 17
2.1 Job Satisfaction ............................................................................................ 17
2.2 Organizational Commitment......................................................................... 20
2.3 Organizational Citizenship Behaviors ........................................................... 25
2.4 Voice Behaviors ........................................................................................... 27
2.5 Job Stress ..................................................................................................... 28
CHAPTER III: RESEACH MODEL AND HYPOTHESES ............................ 31
3.1 Research Model............................................................................................ 31
3.1.1 Dependent Variables: ................................................................................. 31
3.1.2 Independent Variables: .............................................................................. 31
3.1.3 Constructs .................................................................................................. 31
3.2 Research Hypotheses .................................................................................... 32
3.3 Instruments ................................................................................................... 36
3.4 Research Participants ................................................................................... 37

3.5 Procedure for Data Collection and Analyze .................................................. 37
CHAPTER IV: ANALYSIS AND RESULTS .................................................... 39
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4.1 Demographic Characteristics of the respondents........................................... 39
4.2 Reliability Analysis ...................................................................................... 41
4.3 Descriptive Analysis..................................................................................... 42
4.4 Correlation of all variables statistics ............................................................. 42
4.5 Hypotheses Testing ...................................................................................... 43
CHAPTER V: CONCLUSION ........................................................................... 47
5.1 Summary and Discussion: ........................................................................... 47
5.2 Management Implications: ........................................................................... 48
5.3 Limitations and Further Research Recommendation: .................................... 49
REFERENCES .................................................................................................... 51
APPENDIX A ...................................................................................................... 51
APPENDIX B ...................................................................................................... 59

Page | iv


ACKNOWLEGEMENTS

First of all, I would like to express my deep gratitude to Dr. Nguyen The Khai, my
research advisor, for his patient guidance, enthusiastic encouragement and useful
critiques of this business research work. I would also like to extend my thanks to
assistant lecturers of the MBAOUM-K15C class for their help in running and
analyzing data.
Then, I am thankful to all my colleagues at ANZ Bank and classmates for their
support and assistance in completing the survey questionnaire on schedule as well as

consultation, orientation and comment during my research process.
Last but not least, I wish to thank my beloved family for their encouragement and
continuous support throughout my study in the MBA program.

Page | 5


LIST OF FIGURES
Figure 1: Proposed Research Model of Job Satisfaction in ANZ Bank................... 31
Figure 2: A summary of demographic characteristics of the respondents ............... 40

Page | 6


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: Multiple Regression of Hypothesis 1 ....................................................... 45
Table 5: Multiple Regression of Hypothesis 2 ....................................................... 46
Table 6: Multiple Regression of Hypothesis 3 ....................................................... 47
Table 7: Multiple Regression of Hypothesis 4 ....................................................... 47

Page | 7


ABBREVIATIONS
ANZ

ANZ Bank


HRM

Human Resource Management

SPSS

Statistical Packages for the Social Science

JS

Job Satisfaction

OC

Organizational Commitment

OCB

Organizational Citizenship Behaviors

VB

Voice Behaviors

JSS

Job Stress

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ABSTRACT
The aim of the study is to investigate the relationship and effects of job satisfaction
among the employees working in ANZ Bank. Self-administrated questionnaire was
distributed by selecting a convenient sampling the data collected was 225
employees (nearly 30% of total employees) in the bank. The data were analyzed
with the help of Statistical Package of Social Sciences (SPSS). The findings of the
study revealed that a positive relationship was found between job satisfaction and
organizational commitment, organizational citizenship behaviors and voice
behaviors among the employees, whereas negative relationship between job
satisfaction and job stress was not found due to unsupported data. The study results
are useful for the bankers. The study also provided the limitations and
recommendations for future research.

Keywords: Job satisfaction, organizational commitment, organizational citizenship
behaviors, voice behaviors, job stress, ANZ Bank, banking industry.

Page | 9


CHAPTER I - INTRODUCTION
1.1 Company Introduction
Australia and New Zealand Banking Group (ANZ) are fully committed to
Vietnam. ANZ was one of the first foreign banks to open, and has been in Vietnam
since 1993. ANZ Vietnam now has eight Branches and Transaction offices, one
Saving Kiosk in two major cities, Hanoi and HCMC and two Representative Offices,
servicing Retail & Wealth, Consumer Finance, Institutional and Commercial
customers. ANZ Vietnam has more than 750 employees, and named the Best Retail
Bank in Vietnam in The Asian Banker’s International Excellence in Retail Financial

Services Awards 2013.
In 2008, ANZ became one of the first three 100% foreign owned banks to be
granted a banking license by the State Bank of Vietnam to locally incorporate in
Vietnam. The new license allowed ANZ to step up its expansion strategy in Vietnam
and led to the opening of more branches and representative points in Hanoi and Ho
Chi Minh City in 2009.
As the key hub for the Greater Mekong Region, which includes Vietnam,
Cambodia, Laos, Thailand and Myanmar, ANZ Vietnam plays a pivotal role in the
Bank’s wider super regional strategy, connecting customers with each other and with
markets across the region.
ANZ has an exciting ambition to become a super regional bank – providing the
scale and quality of a global business to customers in our core markets of Australia,
New Zealand, Asia and the Pacific. In order to achieve our goals, we know we need
to nurture great people. That’s why we’ve made it our business to be an organization
where people want to work and can deliver their best.

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We expect employees to take ownership of their career and ambitions while we
provide learning and development opportunities to help them achieve goals, as well as
competitive remuneration and benefits. In line with our focus on outperformance,
employees who deliver great results and outperform while doing the right thing can
expect to receive higher rewards.
We want the best talent working at ANZ – no matter who they are or where
they’re from. Diversity of ideas and experiences is key to our success.
ANZ is a culturally diverse organization with employees born in more than 130
countries who speak over 90 languages, and we promote flexibility as the way we
work. Our work/life flexibility options include: flexible hours, job sharing, roaming
work, part-time work, career extension for over 55s, career breaks and career’s,

lifestyle and study leave. We’re proud to be recognized as a mature age champion
by the Federal Government and an Employer of Choice for Women by EOWA
(Equal Opportunity for Women in the Workplace Agency). Through our
Reconciliation and Disability Action Plans, we’re committed to meeting significant
targets for the employment of Indigenous Australians and people with disabilities.
ANZ in the community
ANZ’s key corporate responsibility initiatives, namely MoneyMinded Vietnam,
Project 3E and our partnership with Blue Dragon Children’s Foundation, focus on
developing the local communities we serve.
MoneyMinded is our flagship adult financial education that helps people improve
their financial skills, knowledge and confidence.
Project 3E, which stands for Educate, Enrich and Employ, is a 3-year educational
community initiative done in partnership with the Saigon Children's Charity and the
local government, Launched in November 2013, Project 3E aims to provide access

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to quality schooling in a sustainable way to over 4,000 disadvantaged children in the
Long My district in Hau Giang province, Vietnam.
Through our partnership with Blue Dragon, we are committed to provide both
financial and volunteering support to over 2,000 underprivileged children, including
homeless street children, supported by the community initiative, Blue Dragon
House.
Products and Services
Institutional and Commercial banking


Relationship Banking – corporate and institutional banking, mergers &
acquisitions.




Global markets and loans – structuring and customer solutions, corporate and
institutional sales, commodities solutions, wealth distribution, trading, debt
capital markets, syndications, structured leasing and asset finance, project and
structured finance, as well as structured export finance.



Transaction banking – trade and supply chain, payments and cash management,
and clearing services.

Retail banking


Relationship Banking - Signature Priority Banking.



Products - current and savings accounts, bank assurance, term deposits, dual
currency investment, foreign exchange, structured deposits, credit cards,
unsecured lending and mortgages.

Key milestones

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2013

ANZ opens Representative Office in Binh Duong Province under ANZ Bank
(Vietnam) Limited.
2012
ANZ opens Representative Office in Can Tho City under ANZ Bank (Vietnam)
Limited.
2011
ANZ opens the Operations Centre at The Crescent Plaza in the Phu My Hung New
City Centre, District 7, Ho Chi Minh City.
2009
ANZ establishes ANZ Bank (Vietnam) Limited.
ANZ expands its network in Vietnam by opening more outlets in Hanoi and HCMC.
ANZ acquires and completes the integration of the Royal Bank of Scotland’s
corporate and institutional banking businesses in Vietnam.
2003
ANZ opens a Representative Office in Can Tho under ANZ Banking Group
Limited.
1996
ANZ opens a sub-branch in Ho Chi Minh City.
1993
ANZ opens its first Branch in Hanoi.

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1.2 Research Introduction
1.2.1 Problem statement
The Board Management of ANZ Bank are aware of the critical role of talent
workforce and striving to attract and retain their bankers by various measures such
as increasing salary and allowance fairly compared with the market, conducting
intensive training courses, offering more opportunities for career promotion and

incentive abroad trips for outperformance bankers. However, as the result of annual
My Voice Survey 2015 of ANZ Bank which has been published recently, the
numbers of employees have the job tension gets increasing year over year. That may
lead the bank to critical impact of leaking its skilled and well trained workforce. Not
only that, it will take huge invisible cost for the bank if these well trained and
qualified employees run out of the company and come to work for the competitors.
It is important for ANZ to retain the employees who are committed and help
enhance the competitiveness of the bank. One of the important aspects in
influencing OC, OCB, VB behaviors and JSS attitude that needs to be examined is
about the job satisfaction of employees. The satisfaction of work becomes
interesting and important issue. Job satisfactory is the difference between what we
expect and what we get related to the alternative which is available in the situation
that has been set.
Why is the employee not strongly motivated to contribute to the bank’s
success? How much percent are the bankers satisfied with their current job? Is there
relationship

between

job

satisfaction

among

organizational

commitment,

organizational citizenship behaviors, voice behaviors and job stress?

Related to it, the manangement of resources is the important thing and
concerned. One of the variables which can improve performance is by creating the
positive employee’s behaviors. OC, OCB, VB are positive behaviors of the people
in one organization, which expressed in availability of concerning and voluntarily to
work. OC, OCB, VB gives the positive impact not only to the employee but also
giving the contribution to the organization which is expected formally by the

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organization. Besides, JSS is a negative attitude of the people feels working under
high workload, work stress. The successful organization has employees which has
great responsibility on formal employee and is allowed to do their work freely.
Their behavior is unspecified, but it gives the contribution to function of the
organization. An organization wouldn’t last or prosperous without its members’
behavior as as a good citizen, strong commitment and to be involved in every
positive behavior.
The job satisfaction in organization and individual, the low level of work
satisfaction in an organization is a sequence of reduction in doing work, the increase
of attendance and the decrease of moral. Whereas in the individual level, the
dissatisfaction of job which related to a great desirability to quit job, the increase of
work stress, and many physiological and physical conflicts that arose (Handoko,
1992).

1.2.2 Purpose of the study
This research is undertaken in order to analyze how job satisfaction effects on
organizational commitment, organizational citizenship behaviors, voice behaviors,
job stress of ANZ Bank employees. This research analyzes how ANZ Bank can
build job satisfaction by considering factors and employee’s behavior. Then, ANZ
management team can the project’s results as reference on adjusting and developing

couple of solutions that may fill in the gap in HRM system and encouraging
employee’s talents and abilities to fulfill its vision to be the best connected, most
respected bank across the Asia Pacific region.

1.2.3 The scope of the research
Given the limited resources and time, the empirical data for the research were
collected from 225 employees (accounted by 30% total number employees) of ANZ
Vietnam in 5 divisions including Branch Sales, Marketing, Card and Lending
Operation, Payment Operation and Credit Assessment.

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Examinees on this study include male or female; officers, senior officers,
managers, business unit head and who achieved associate, bachelor and higher
degree.

1.2.4 Research questions
The research will focus on examining the relations of job satisfaction and job
attitudes and behaviors among ANZ employees. Therefore, the following questions
will be addressed in the scope of study:

RQ1: Is there any relationship between job satisfaction and organizational
commitment and job stress?
RQ2: Does job satisfaction affect on organizational citizenship and voice
behaviors?
RQ3: How can managers build job satisfaction among their employees?

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CHAPTER II – LITERATURE REVIEW
2.1 Job Satisfaction
Job satisfaction is an employee's general positive attitude toward the job
(Byars and Rue, 2000). It is a commonly defined as the extent to which bankers like
their work (Agho et al., 1993). It is also an attitude based on employee's negative or
positive perception of their jobs or work environments (Reilly et al., 1991), the
degree to which there is a good fit between the individual and the organization
(Ivancevich et al., 1997). Simply stated, the more people's work environment meet
their needs including intrinsic and extrinsic needs (Abraham Maslow,1954), values,
or personal characteristics, the greater the degree of job satisfaction (Ellickson,
2002) will be.
Recent studies have identified that job satisfaction of employees is defined and
measured in two aspects: overall satisfaction of job and satisfaction of job
components. Job satisfaction is one criterion for establishing the health of an
organization and overall satisfaction is a function of a combination of situational
characteristics and situational occurrences and it is also presented emotions covered
all aspects of work. Smith et al. (1996) developed a scale to measure job satisfaction
(JDI-index). Different authors have different approaches towards defining job
satisfaction. Hoppock defined job satisfaction as any combination of psychological,
physiological and environmental circumstances that cause a person truthfully to say
I am satisfied with my job (Hoppock, 1935). According to this approach although
job satisfaction is under the influence of many external factors, it remains
something internal that has to do with the way how the employee feels. That is job
satisfaction presents a set of factors that cause a feeling of satisfaction.
There is a belief that when the employee is happy he will be productive. Happy
employees are more likely to attract more customers by a welcoming and kind
manner and unhappy employees can lead customers to leave (Hanif, 2008). Much
research has been undertaken by job satisfaction and its consequences but


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unfortunately a few numbers of them are about banking industry. It showed that job
satisfaction correlates with raised output, being loyal with bank, organization’s
efficiency and decrease in absenteeism. Davis (2007) indicated that job satisfaction
positively influences the effort, capability and ability of employees. He also
emphasizes that dissatisfied employees may cause difficulties such as increasing
cost and decreasing profits and consequently dissatisfy customer.
The success of business can be determined by the level of employee job
satisfaction (Jegan, 2011). Moreover, this finding is consistent with other research
that done by Panchanatham (2011), which has showed the positive relation between
satisfaction of bank employees and productivity. He indicated that if bank
employees feel satisfied that there is less likelihood of resignation compares to
dissatisfied employees.
Considering the above, seven factors are proposed in this study as antecedents
of job satisfaction. They are: work challenge, training and promotion opportunities,
leadership support, colleague relationship, salary, benefit, work environment.
Additionally, organizational and individual characteristics are included into the
model as moderating factors (age, gender, and organization ownership and
organization size).
Locke (1969) defined job satisfaction as a positive emotional feeling, a result
of one’s evaluation towards one`s job experience by comparing between what one`s
expects from the job and what one actually gets from it. Again in 1976 Locke define
job satisfaction is a pleasurable or positive emotional state resulting from the
appraisal of one’s job or job experience. Spector (1997) says that job satisfaction is
“the extent to which people like (satisfaction) or dislike (dissatisfaction) their jobs”
(p. 2). Job satisfaction is a general and global affective response that an individual
has about his job (Chiun Lo and Ramayah, 2011). A Job satisfaction phenomenon is
more about how an employee feels than the fulfillment of his needs (Locke, 1976).

I can conclude from the above definitions that job satisfaction is the perception
of an employee about his job. It is psychological phenomenon of an employee

Page | 18


which describes the feeling and thought of an employee towards his job. Job
satisfaction is actually the satisfaction of an employee from the characteristics of the
job. Low satisfaction can be the result of working with unskilled or inappropriately
trained staff, laborious tasks such as documentation, repetition of duties, tensions
within role expectations, role ambiguity, role conflict, feeling overloaded, the
increasing need to be available for overtime, relations with co-workers, personal
factors and organizational factors (Rad and Yarmohammadian, 2006).
There are many factors that make an employee happy or unhappy with his job, these
factors vary from one employee to another and from day to day activities (Chiun Lo
and Ramayah, 2011).
The manager must try to get the knowledge about needs of each worker to
attain the high level of employees’ job satisfaction (Locke, 1976). Researchers have
worked on this issue and they developed six assessment models (Descriptive index,
Minnesota Satisfaction Questionnaire, Job Diagnostic Survey, Job Satisfaction
Survey, Job in General Scale and Michigan Organization Assessment) to assess the
employees’ job satisfaction by considering job satisfaction factors (Spector, 1997,
p.7). Two of them are useful and popular. One is Job Satisfaction Survey model that
is developed by Spector in 1985. It is the most popular format in job satisfaction
scale. This model discusses nine factors for job satisfaction i.e, pay, promotion,
supervision, fringe benefits, contingent rewards, operating conditions, coworkers,
nature of work, communication. The second most popular model is Job Descriptive
Index that is developed by Jdi Smith, Kendall, and Hullin in 1969. This is also most
useable and popular model among organizational researchers. This model discusses
five factors to develop job satisfaction; work, pay, promotion, supervision, and

coworkers (Spector, 1997).
Ting (1997) describes that different characteristics of job such as pay,
promotional opportunity, task clarity and significance, and skills utilization, as well
as characteristics of organization such as commitment and relationship with

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supervisors and co-workers have significant effects on job satisfaction. The factors
to investigate the overall job satisfaction among employees are discussed below.

2.2 Organizational Commitment
Organizational commitment is a widely researched construct in the
Management Literature (Meyer and Allen 1991; Mowday, Porter and Steers 1982;
Swailes 2002; Argyle 1989; Etzioni 1975) describes the involvement and faithfulness
of employee towards the company. The identification, involvement, and loyalty
subscales correlated positively with work rewards and committed behaviors, which
included such actions as reading in-house publications, attending general meetings,
voting frequently in internal elections, activism, and job effort. The three subscales all
correlated negatively with the range of other employment alternatives (Oliver, 1990).
Furnham et al. (1994) found that a personality style that tends to attribute positive
events at work to internal causes correlated positively with the combined measure of
organizational commitment.
There are various definitions of the concept Organizational Commitment include
Porter’s (1974) definition which descript organizational commitment as the relative
strength of an individual’s identification with and involvement in a particular
organization. According to Mowday, R.T., Steers, R.M., & Porter, L.W. (1979)
organizational commitment is a strong belief in and acceptance of the organization’s
goals and values; a willingness to exert considerable effort on behalf of the
organization; and a strong desire to maintain membership in the organization. Allen &

Meyer (1990) is of the view that organizational commitment has been defined as a
psychological state that binds an employee to an organization, thereby reducing the
incidence of turnover.
Batemen & Strasser (1984) believe that the aims of studying organizational
commitment are related to:
-

Employee’s behaviors and performance effectiveness.
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-

Attitudinal, affective and cognitive constructs such as job satisfaction

-

Characteristics of the employees’ job and role, such as responsibility

-

Personal characteristics of the employee such as age and job tenure.

Meyer & Herscovitch (2001) stated that commitment is a force that binds an
individual to a course of action of relevance to one or more targets.
O’Reilly

(1989)

defined


Organizational

Commitment

as

an

individual's

psychological bond to the organization, including a sense of job involvement,
loyalty and belief in the values of the organization.
Schwartz & Tessler (1972) see that personal norms are introduced as a responsible
factor for what Wiener referred to as an incorporated normative pressure, which
makes organizational commitment a moral obligation because an employee feels he
or she must do so. According to Wiener & Verdi (1980), this feeling of moral
obligation measured by the extent to which an employee feels that she or he should
be faithful to organization, make an employee sacrifice to help it out and not
disapprove it.
In general, organizational commitment describes the attachment and involvement of
the employee to the organization.
Many scientists have developed various definitions of organizational commitment,
and numerous scales to measure them. Meyer and Allen's model of commitment is
an exemplary of this work.
According to Meyer and Allen's (1991) three-component model of
commitment was created to argue that commitment has three different components
that correspond with different psychological states. Meyer and Allen created this
model for two reasons: first "aid in the interpretation of existing research" and
second "to serve as a framework for future research”. Their study was based mainly

around previous studies of organizational commitment. Meyer and Allen’s research
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indicated that there are three "mind sets" which can characterize an employee's
commitment to the organization:
Firstly, Affective Commitment is defined as the employee's positive emotional
attachment to the organization. Meyer and Allen pegged Affective Commitment as
the “desire” component of organizational commitment. An employee who is
affectively committed strongly identifies with the goals of the organization and
desires to remain a part of the organization because he/she want to do so (Cohen,
1993). This commitment can be influenced by many different demographic
characteristics: age, tenure, sex, and education but these influences are neither
strong nor consistent. The problem with these haracteristics is that while they can be
seen, they cannot be clearly defined. Meyer and Allen gave this example that
“positive relationships between tenure and commitment maybe due to tenure-related
differences in job status and quality”. In developing this concept, Meyer and Allen
drew largely on Mowday, Porter, and Steers's (2006) concept of commitment, which
in turn drew on earlier work by Kanter (1968).
Secondly, Continuance Commitment is the “need” component or the gains
verses losses of working in an organization. “Side bets,” or investments, are the
gains and losses that may occur should an employee stay or leave an organization.
An employee may commit to the organization because he/she perceives a high cost
of losing organizational membership (cf. Becker's 1960 "side bet theory". Things
like economic costs (such as pension accruals) and social costs (friendship ties with
co-workers) would be costs of losing organizational membership. But an individual
doesn’t see the positive costs as enough to stay with an organization he/she must
also take into account the availability of alternatives (such as another organization),
disrupt personal relationships, and other “side bets” that would be incurred from
leaving his/her organization.

Finally, Normative Commitment reflects a feeling of obligation to continue
employment. Employees with a high level of normative commitment feel that they
ought to remain with the organization (Meyer & Allen, 1997). The feeling may

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derive from an agreement on an individual before and after joining an organization.
For example, the organization may have invested resources in training an employee
who then feels a 'moral' obligation to put forth effort on the job and stay with the
organization to 'repay the debt.' It may also reflect an internalized norm, developed
before the person joins the organization through family or other socialization
processes, that one should be loyal to one's organization. The employee stays with
the organization because he/she "ought to". But generally if an individual invest a
great agreement, he/she will receive “advanced rewards.” Normative commitment is
higher in organizations that value loyalty and systematically communicate the fact
to employees with rewards, incentives and other strategies. Normative commitment
in employees is also high where employees regularly see visible examples of the
employer being committed to employee well-being. An employee with greater
organizational commitment has a greater chance of contributing to organizational
success and will also experience higher levels of job satisfaction. High levels of job
satisfaction, in turn, reduces employee turnover and increases the organization’s
ability to recruit and retain talent.
There has been conceptual critique to the above three – component conceptual
model, especially from the psychologists. They have argued that commitment
reflects the Psychological bond that ties the employee to the organization but that
the nature of the bond can take three forms, labeled compliance, identification, and
internalization (O’Reilly & Chatman, 1986). Compliance occurs when attitudes and
behaviors are adopted not because of shared beliefs but simply to gain specific
rewards. In this case, public and private attitudes may differ. Identification occurs

when an individual accepts influence to establish and maintain a relationship; that
is, an individual may respect a group’s values without adopting them. On the other
hand, internalization occurs when influence is accepted because the included
attitudes and beliefs are congruent with one’s own values (Caldwell, Chatman, &
O’Reilly, 1990; Meyer & Allen, 1997; O’Reilly & Chatman, 1986; O’Reilly,
Chatman, & Caldwell, 1991).

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To date, the three-component conceptual model has been regarded as the
leading model for organizational commitment because it ties together three aspects
of earlier commitment research (Becker, 2005; Buchanan, 2005; Kanter, 1968;
Mathieu & Zajac, 1990; Mowday, Porter, & Steers, 1982; Salancik, 2004; Weiner,
2004; Weiner & Vardi, 2005). However, a collection of studies have shown that the
model is not consistent with empirical findings. Solinger, Olffen, and Roe use a later
model by Alice Eagly and Shelly Chaiken, Attitude-behavior Model (2004), to
present that three- component model combines different attitude phenomena. They
have come to the conclusion that three- component model is a model for predicting
turnover. In a sense the model describes why people should stay with the
organization whether it is because they want to, need to, or ought to. The model
appears to mix together an attitude toward a target, that being the organization, with
an attitude toward a behavior, which is leaving or staying. They believe the studies
should return to the original understanding of organizational commitment as an
attitude toward the organization and measure it accordingly. Although the threecomponent model is a good way to predict turnover, these psychologists do not
believe it should be the general model. Because Eagly and Chaiken's model is so
general, it seems that the three-component conceptual model can be described as a
specific subdivision of their model when looking at a general sense of
organizational commitment. It becomes clear that affective commitment equals an
attitude toward a target, while continuance and normative commitment are

representing different concepts referring to anticipated behavioral outcomes,
specifically staying or leaving. This observation backs up their conclusion that
organizational commitment is perceived by three- component model as combining
different target attitudes and behavioral attitudes, which they believe to be both
confusing and logically incorrect. The attitude-behavioral model can demonstrate
explanations for something that would seem contradictory in the three-component
conceptual model. That is that affective commitment has stronger associations with
relevant behavior and a wider range of behaviors, compared to normative and

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continuance commitment. Attitude toward a target (the organization) is obviously
applicable to a wider range of behaviors than an attitude toward a specific behavior
(staying). After their research, Sollinger, Olffen, and Roe believe Eagly and
Chaiken's attitude-behavior model from 1993 would be a good alternative model to
look at as a general organizational commitment predictor because of its approach at
organizational commitment as a singular construct, which in turn would help
predicting various behaviors beyond turnover.

2.3 Organizational Citizenship Behavior
As Organizations complete the paradigm shift from formal hierarchical
structures and individualized jobs to team-based work structures (Ilgen & Pulakos,
1999)

organizational citizenship behavior (OCB), or behavior that contributes

indirectly to the organization through maintenance of the organization's social
system (Organ, 1997),


has become of increasing interest to academics and

practitioners alike (Lepine, Erez & Johnson, 2002; Podsakoff, Mackenzie, Paine, &
Bachrach, 2000; Motowildo & Schmidt, 1999, Organ & Ryan, 1995).
Organizational citizenship behavior (OCB) is general defined as behavior that
goes beyond the formal requirements of the job and is beneficial to the organization
(Spector, 2006; Robbins, 2005). Organ (1977) and his colleagues (Bateman &
Organ, 1983; Smith, Organ, and Near, 1983) first used the term organizational
citizenship behavior to describe work behavior that is discretionary, not directly or
explicitly recognized by the formal reward system, and that, in the aggregate,
promotes the effective functioning of the organization (Organ, 1988, p.4). Other
terms for overlapping behavioral domains include prosocial organizational behavior
(Brief & Motowildo, 1986), organizational spontaneity (George & Jones, 1997), and
extra-role behavior (Van Dyne, Cummings, & McLean Parks, 1995). Contextual
performance (Borman & Motowildo, 1993, 1997), activities that support the social
and psychological context in which the organization's technical core is embedded,
similarly overlaps with OCB though the latter has historically emphasized

Page | 25


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