EMPLOYEE SATISFACTION AND COMMITMENT

PREPARED FOR UHS 2062 & SHP 1313 STUDENTS AT UTM SKUDAI

BY:SITI ROKIAH SIWOK

SRSIWOK@GMAIL.COM

JOB RELATED ATTITUDES & BEHAVIOURS

Assessing employee attitudes and behaviours about their jobs is one of the major tasks of IO psychologist.

Among the most commonly studied job related attitudes are job satisfaction and organizational commitment.

Although job satisfaction and organizational commitment are two distinct construct, they closely related.

JOB RELATED ATTITUDES & BEHAVIOURS

Research shows highly positive correlation between job satisfaction and organizational commitment. ( Arnold and Feldman, 1982; O’Driscoll, Ilgen and Hildreth 1992; Stumpf and Hartman, 1984 in Riggio 2009)

Part of the reason of the highly positive correlation is due to the desire to avoid cognitive dissonance.

JOB RELATED ATTITUDES & BEHAVIOURS

Job satisfaction and organizational commitment are affected by many factors such as ( Riggio , 2009) :Type and variety of workAutonomy given in the jobLevel of responsibilityThe quality of social relationships at workCompensationChances for promotion and

growth/advancement in the organization

JOB RELATED ATTITUDES & BEHAVIOURS

There appears some consensus that:Organizational values influence

organizational commitmentPerceived equity rewards influence job

satisfaction. Organizational commitment becomes

less if the chances of finding another job somewhere else is big.

JOB SATISFACTION Job satisfaction consists of the

positive and negative feelings and attitudes about one’s job.The global approach views job

satisfaction as an overall construct.The facet approach views job satisfaction

as made up of individual elements, or facets.

JOB SATISFACTION AND COMMITMENT

Job satisfaction and commitment are multifaceted.

Examples of job satisfaction facets are pay, supervision, coworkers, promotion, work facility, worksite, work policy etc

An employee may be satisfied with one facet, (such as pay) but not another ( such as work facility).

JOB RELATED ATTITUDES Although 2 different constructs, job

satisfaction and organizational commitment are highly correlated and result in similar employee behaviours.

In general, satisfied employees show positive behaviours.

SATISFACTION & ORG. COMMITMENT

Meta analyses show that satisfied employees tend to be :

committed to the organization, and thus less likely to be absent;

stay with the organization , punctual, engage in helpful behaviours

etc.

.

IS IT TRUE THAT THE “HAPPY WORKERS ARE

PRODUCTIVE WORKERS?”

JOB SATISFACTION AND PERFORMANCE

The relationship between job satisfaction and performance is not consistent across people or jobs.

E.g: For complex jobs, there is a strong relationship between job satisfaction and performance, than jobs of low or medium complexity .

JOB SATISFACTION AND JOB PERFORMANCE

Meta-analyses indicate a moderate correlation between job satisfaction and performance (Judge et al., 2001).

The Porter-Lawler model (1968) states that job satisfaction and performance are not directly linked, but are related when workers perceive fairness in receipt of work-related rewards.

ORGANIZATIONAL COMMITMENT Organizational commitment

consists both attitudes and behaviours.

Attitudes include: acceptance of the organization’s goals

and values, Willingness to exert extra effort on

behalf of the organization, and A desire to remain with the

organization.

ORGANIZATIONAL COMMITMENT Commitment related behaviours include

organizational citizenship behaviours ( OCB) OCB consists of efforts by employees to

promote the organization, its image as well its goals (Riggio, 2009).

OCB are positively correlated with job satisfaction and organizational commitment ( Podsakoff, MacKenzie, Paine and Bachrach, 2000 in Riggio 2009)

Employees engaged more in OCBs are less likely to turnover compared to those not engage in OCBs ( Chen, Hui and Sego, 1998)

ORGANIZATIONAL COMMITMENT AND OCBS

Employees engaged more in OCBs are less likely to be absent ( Lee, Mitchell, Sablynski, Burton and Holtom, 2004 in Riggio 2009) and are more safety conscious ( Gyekye and Salminen, 2005 in Riggio 2009)

OCBs also have interactive effects:Supervisors notice OCBs and tend to give

more positive appraisals.

ORGANIZATIONAL COMMITMENT There are three motivational facets to

organizational commitment ( Meyer and Allen, 1997):Affective commitmentContinuance commitmentNormative commitment

( Read Aamodt, 2010 for details )

AFFECTIVE COMMITMENT Affective commitment is the extent to

which an employee wants to remain with the organization, cares about the organization and is willing to exert effort for the organization.

CONTINUANCE COMMITMENT Continuance commitment is the extent to

which the employee believes s/he must remain with the organization due the time, expenses and effort that has been pun into it.

Continuance commitment is also due to the difficulties in finding another job.

NORMATIVE COMMITMENTNormative commitment:

The extent the employee feel obliged to the organization, and thus feels that s/he must remain with the organization.

WHAT CAUSES EMPLOYEES TO BE SATISFIED WITH AND COMMITTED TO THEIR JOBS?

PERSPECTIVES TO THE STUDY OF JOB SATISFACTION AND COMMITMENT

Personality perspective Environmental perspective Interactional perspective

PERSONALITY PERSPECTIVES

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INDIVIDUAL DIFFERENCES IN EMPLOYEE SATISFACTION

Important FindingsConsistency across jobsConsistency across timeRelationship between life

satisfaction and job satisfaction Due to:

Genetic predispositionsCore self-evaluations

self-esteem self-efficacy internal locus of control optimism/positive affectivity

INDIVIDUAL DIFFERENCES AND JOB SATISFACTION Personal predisposition to satisfied or

dissatisfied may be one of the reasons of job satisfaction.

Individual difference theory posits that job satisfaction variation is due to the personal tendencies to enjoy/not to enjoy jobs.

Utilising Individual difference theory , satisfaction across jobs is consistent.

PERSONALITY VARIABLES Genetic predispositions

Core-self evaluations

GENETIC PREDISPOSITION Genetic predisposition (30%), a study by

Arvey et. al.1989, 1994), due to the presence of inherited personality traits such as “negative affectivity”.

Genetic predisposition studies are controversial and received lots of criticism

CORE SELF EVALUATIONS A series of personality variables seem to be

related to job satisfaction, meaning that some type of personalities have tendency to be satisfied or dissatisfied with their jobs.

Judge, Locke and Durham ( 1997) hypothesized that four ( 4) personality variables are likely to be satisfied with their jobs ( and their lives).

CORE SELF-EVALUATIONS Personality variables are likely to be

satisfied with their jobs ( and their lives):1. Emotional stability2. Self-esteem3. Self efficacy4. External /internal locus of control

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CORE SELF-EVALUATIONJUDGE AND BONO (2001) META-ANALYSIS

Corrected Correlations WithCore-Evaluation Trait Satisfaction Performance

Self-esteem .26 .26Self-efficacy .45 .23Internal locus of control .32 .22

Emotional stability .24 .19

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YOUR PREDISPOSITION TO BE SATISFIED: MEASURES

Interest Inventory Life Satisfaction

Measure Core Self-Evaluation

self-esteem locus of controlaffectivity

Job Satisfaction History

OTHERS: CULTURE AND INTELLIGENCE ETC

Culture plays great role

Intelligence…and if you are too “ smart”, you won’t be hired.

What about gender?, Race? Age?

What are the other antecedents of job

satisfaction?

ENVIRONMENT AND INTERACTIONAL PERSPECTIVES

SATISFACTION WITH OTHER ASPECTS OF LIFE

A number of researchers theorize that job satisfaction is consistent across time AND also to the extent which a person is satisfied with all other aspects of life.

People who are satisfied with their jobs tend to be satisfied with life; thus supports the theory that job satisfaction is significantly correlated with life satisfaction. Vice versa. A very important finding.

Fancy using “John Travolta method”?

JOB EXPECTATIONS AND SATISFACTION ETC When job expectations are not being met, job

satisfaction is low and employees have the intentions to leave the jobs; consistent with discrepancy theories.

Meta-analysis by Wanous, Poland, Premack and Davis (1992) conclude that when employees’ expectations are not met, the result is lower job satisfaction, decrease in organizational commitment and increased intent to leave the organization.

JOB EXPECTATIONS AND SATISFACTION ETC On the contrary, Irving and Meyer (1994)

found most employees’ experiences on the job are most related to job satisfaction. The difference between their expectations and their experiences was only MINIMAL LY related to job satisfaction.

OTHER ANTECEDENTS OF JOB SATISFACTION ARE:

Good Job-organization fit Job facets Fairness and equity Opportunities for challenge and growth

Job rotation, job enlargement and job enlargement

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JOB FACETS Are the tasks

enjoyable? Do the employees

enjoy working with their supervisors and coworkers?

Are coworkers outwardly unhappy

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ARE REWARDS AND RESOURCES GIVEN EQUITABLY?

Equity Theory Components

inputsoutputs input/output ratio

Possible Situationsunderpaymentoverpaymentequal payment

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ORGANIZATIONAL JUSTICE

Distributive justice Procedural justice Interactional

justice

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CORRELATIONS WITH PERCEPTIONS OF JUSTICECOLQUITT, CONLON, WESSON, PORTER, AND NG (2001)

Outcome ProceduralJustice

Distributive Justice

Job satisfaction .62 .56

Organizational commitment .57 .51

Trust .61 .51

Withdrawal - .46 - .50

Performance .36 .15

Negative employee reactions - .31 - .30

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IS THERE A CHANCE FOR GROWTH AND CHALLENGE? Enriched jobs

Variety of skills neededEmployee completes entire taskTasks have meaningEmployee has input/controlemployee receives feedback

Methods Job rotation Job enlargement Job enrichment

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HAVE SURPRISES Order lunch for

everyone Let everyone leave

an hour early __________________ __________________ __________________ __________________

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ASSIGN THE RIGHT TASKS TO THE RIGHT PEOPLE

People have different interests

People have different skills

MEASURING JOB SATISFACTION AND COMMITMENT

MEASURING JOB SATISFACTION Job satisfaction can be assessed by asking

how employees feel about their job, either by using questionnaire or interview.

The most widely used self-report measures are the Minnesota Satisfaction Questionnaire (MSQ) and the Job Descriptive Index (JDI).

The MSQ measures satisfaction with 20 job facets, including supervisor competence, working conditions, task variety, and chances for advancement.

The JDI measures satisfaction with five job facets: the job itself, supervision, pay, promotions, and coworkers.

JOB SATISFACTION: OTHER SCALES Faces Scale Job in General Scale Nagy Satisfaction Scale Custom designed inventories

MEASURING ORGANIZATIONAL COMMITMENT

Allen and Meyer Scale ( 1990)

Organizational Commitment Questionnaire (OCQ)

Organizational Commitment Scale (OCS)

Custom-Designed Inventories

HOW DO WE INCREASE JOB SATISFACTION?

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INCREASING JOB SATISFACTION Hire “Satisfied” Employees Eliminate Dissatisfiers Express appreciation and provide proper

feedback Increase opportunities to socialize Hold special events and friendly

competitions Increase humor Have surprises Assign the right tasks to the right people

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HIRE “SATISFIED EMPLOYEES”

Test for Satisfaction Potential Interest inventoryCore self-evaluationSatisfaction history

Provide a realistic job preview

Look for person-organization fit

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ELIMINATE DISSATISFIERS Interpersonal conflict

PeersSupervisorsCustomers

Inequity Low pay Job security Poor working

conditions Work schedule issues

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HOLD SPECIAL EVENTS AND FRIENDLY COMPETITIONS Casual or spirit days Increase socialization

through parties, picnics, and socials

Hold fun contests Celebrate birthdays

and special occasions Encourage humor

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EXPRESS APPRECIATION AND PROVIDE PROPER FEEDBACK Liberal use of praise

and thanks Positive feedback Service and

performance awards _________________ _________________ _________________

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INCREASE OPPORTUNITIES TO SOCIALIZE Picnics Lunches _______________ _______________ _______________ _______________ _______________

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HOLD SPECIAL EVENTS AND FRIENDLY COMPETITIONS

Casual days Company logo day ________________ ________________ ________________ ________________

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INCREASE HUMOR Bulletin boards with

humor Attach cartoons to

boring memos ________________ ________________ ________________

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ASSIGN THE RIGHT TASKS TO THE RIGHT PEOPLE

People have different interests

People have different skills

CONSEQUENCES OF SATISFACTION/DISSATISFACTION AND

NEGATIVE WORK ATTITUDES

Absenteeism Turnover Counterproductive Behaviours

Aimed at individuals Aimed at the organizations

ABSENTEEISM

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Year Cost of Absenteeism

U. S. Absenteeism RateCCH Survey BNA Survey

2007 2.302006 2.502005 $660 2.302004 $610 2.40 1.402003 $645 1.90 1.602002 $789 2.10 1.602001 $755 2.20 1.702000 $610 2.10 1.701998 $757 3.25 1.601996 $603 2.80 1.60

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INTERNATIONAL DIFFERENCES – NUTRECO (2000)

Country Absenteeism Rate (%)Canada 1.6Ireland 1.9Poland 2.3Chile 2.7United Kingdom 3.2Spain 3.8France 4.0Belgium 6.3Norway 7.2Netherlands 7.8

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Reason for Missing Work (CCH Survey)

Year Illness Stress Personal Needs

Family Issues

Sense of Entitlement

2007 34 13 18 22 132006 35 12 18 24 112005 35 12 18 21 142004 38 11 18 23 102003 36 11 18 22 132002 33 12 21 24 102000 40 5 20 21 141998 20 16 24 21 191996 28 11 20 26 15

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ACTUAL EMPLOYEE EXCUSES FOR MISSING WORK I was sprayed by a skunk. I tripped over my dog and was knocked unconscious. My bus broke down and was held up by robbers. I was arrested as a result of mistaken identity. I forgot to come back to work after lunch. I couldn’t find my shoes. I hurt myself bowling. I was spit on by a venomous snake. I totaled my wife’s jeep in a collision with a cow. A hitman was looking for me. My curlers burned my hair and I had to go to the hairdresser I eloped. My cat unplugged my alarm clock. I had to be there for my husband’s grand jury trial. I had to ship my grandmother’s bones to India. (note: she had

passed away 20 years ago)

Source: 2004 CareerBuilder.Com Survey

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WHY EMPLOYEES ARE ABSENT No consequences for

attending or missing work

Illness and personal problems

Individual differences Unique events

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INCREASING ATTENDANCE BY HAVING CONSEQUENCES FOR MISSING WORK

Rewards for Attending Financial incentives

Well pay Games Financial bonuses

Paid Time-off Programs Recognition programs

Discipline for Not Attending Clear Policy and Record Keeping

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INCREASING ATTENDANCE BY REDUCING EMPLOYEE STRESS

Overload Conflict

peerssupervisors

Boredom Safety Issues

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INCREASING ATTENDANCE BY REDUCING ILLNESS

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TYPES OF WELLNESS PROGRAMSSHRM 2008 SURVEY

Wellness Program % OfferingSome form of wellness program 5824-hour nurse line 50Health screening programs 41Smoking cessation program 40Weight loss program 31On-site fitness center 21Stress reduction programs 14On-site medical care 12

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EFFECT OF ABSENCE CONTROL METHODSMETA-ANALYSIS RESULTS

Absence Control Method # of Studies Effect SizeWell pay 4 .86Flextime 10 .59Compressed work schedules 5 .44Wellness programs 10 .37Feedback 3 .37Discipline 9 .36Recognition 6 .30Financial incentives 7 .17Games 6 .08

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CCH ABSENCE CONTROL SURVEYSAbsence Control

MethodPercent Using Effectiveness Rating

2003 2005 2007 2003 2005 2007

Disciplinary action 96 90 89 3.3 3.4 3.4

Performance appraisal 84 79 82 2.9 3.0 2.9

Verification of illness 75 76 74 2.9 3.2 3.2

Paid leave bank 59 67 60 3.6 3.5 3.6

Personal recognition 62 66 57 2.5 2.6 2.6

No-fault systems 62 63 59 3.0 3.0 2.9

Bonus programs 52 57 51 3.1 3.3 3.3

Buy-back programs 548 58 53 3.3 3.5 3.4

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WHY DO EMPLOYEES LEAVE? Unavoidable Reasons

school ends job transfer illness family issues

Advancement more responsibility better pay

Unmet Needs

Escape From people

management coworkers customers

working conditions stress

Unmet Expectations organization job career

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WHY ARE YOUR EMPLOYEES LEAVING?

Exit Interviews Attitude Surveys Salary Surveys

paybenefitstime off

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THE COST OF TURNOVERVISIBLE COSTS PER HIRE

Advertising charges Agency fees Referral bonuses Staff time & benefits

processing applications

interviewing Overhead

Travel Costs staff applicants

Relocation Costs Miscellaneous Costs

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THE COST OF TURNOVERHIDDEN COSTS Loss of Productivity

employee leaving other employeesvacant positionnew employee (1

year) Inefficiency Overtime Training Costs

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ESTIMATING THE COST OF TURNOVER Industry Norms

rate is 1.4% per month cost is 1.5 times salary

Custom Statistics www.advantagehiring.com/calculators/

calc_turnover.shtml www.uwex.edu/ces/cced/publicat/turn.html

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FINANCIAL SAVINGS FROM TURNOVER REDUCTION

Last Year 5 employees leave

each month (60 per year)

Average salary is $20,000

Cost of turnover is 60 * $20,000 * 1.5 = $1,800,000

This Year 4 employees leave

each month (48 per year)

Average salary is $20,000

Cost of turnover is 48 * $20,000 * 1.5 = $1,440,000

$360,000 saved through reduced turnover

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REDUCING TURNOVERCOMPENSATION ISSUES Match the market

Use job evaluation to ensure internal equity

Offer retention/tenure bonuses (stay for pay)

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INCREASING SALARY AND BENEFITS WILL ONLY WORK IF:

Employees are leaving due to low compensation or benefits

The turnover rate is high The salary increase will

be a meaningful amount

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REDUCING TURNOVERSELECTION ISSUES

Conduct realistic job previews Look for person-organization fit Study predictors of people who

leave

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REDUCING TURNOVERORGANIZATIONAL ISSUES Provide training Show appreciation Mediate conflicts Meet employee

needssafetysocialgrowth

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STRATEGIC USE OF BENEFITS TO ATTRACT AND RETAIN APPLICANTS

By Providing Health care for

domestic partners Daycare benefits

Meal benefits Paid time-off Flexible schedules Tuition/books

You Can Attract/Retain Gay employees

Dual career families and parents on public assistance

Students and retirees Young people Homemakers/parents Students

SATISFACTION, COMMITMENT, ABSENTEEISM, TURNOVER AND PROGRAMMES THAT CAN BE IMPLEMENTED : ADDITIONAL NOTES

JOB SATISFACTION, ORGANIZATIONAL COMMITMENT, AND EMPLOYEE ATTENDANCE

Voluntary absenteeism is when employees miss work because they want to do something else (i.e., not because they are ill or unable to work).

Involuntary absenteeism occurs when employees have a legitimate excuse for missing work–typically illness.

Involuntary absenteeism is inevitable; organizations can try to eliminate voluntary absenteeism, but this is difficult because it is difficult to distinguish between voluntary and involuntary absences.

JOB SATISFACTION, ORGANIZATIONAL COMMITMENT, AND EMPLOYEE ATTENDANCE Turnover can also be categorized as

voluntary or involuntary. Involuntary turnover occurs when an

employee is fired or laid off. Voluntary turnover occurs when

competent and capable employees leave to work elsewhere.

Meta-analyses (Griffeth et al., 2000) indicate that low job satisfaction and low organizational commitment are related to higher turnover.

JOB SATISFACTION, ORGANIZATIONAL COMMITMENT, AND EMPLOYEE ATTENDANCE

A strong predictor of employee turnover is absenteeism, particularly the rate of absences immediately before the employee leaves.

Turnover intentions refers to workers’ self-reported intentions to leave their jobs.

Voluntary turnover is costly, and research indicates that employees who feel they are not treated fairly are more likely to leave an organization (Griffeth and Gaertner, 2001).

INCREASING JOB SATISFACTION AND ORGANIZATIONAL COMMITMENT Changes in job structure can be used to

increase satisfaction and commitment. Job rotation is the systematic movement

of workers from one type of task to another to alleviate boredom and enhance worker training.

Job enlargement involves the expansion of a job to include additional and more varied work tasks.

Job enrichment involves raising the level of responsibility of a job by allowing workers a greater voice in planning, execution, and evaluation of their own work activities.

INCREASING JOB SATISFACTION AND ORGANIZATIONAL COMMITMENT

Changes in pay structure can be used to increase satisfaction and commitment.

Skill-based pay is compensation in which workers are paid based on their knowledge and skills rather than their organizational positions.

Merit pay is compensation in which employees receive a base rate and additional pay based on performance.

Gainsharing is compensation based on effective group performance.

Profit-sharing is a plan where all employees receive a small share of an organization’s profits.

INCREASING JOB SATISFACTION AND ORGANIZATIONAL COMMITMENT

Flexible work schedules can be used to increase satisfaction and commitment.

Compressed work weeks are schedules that decrease the number of days in the workweek while increasing number of hours worked per day.

Flextime is a schedule that commits an employee to working a specified number of hours, but offers flexibility in regard to beginning and ending times for each day.

INCREASING JOB SATISFACTION AND ORGANIZATIONAL COMMITMENT

Benefits programs are perhaps the most common way for employers to increase employees’ job satisfaction and commitment.

Benefit programs can include flexible working hours, a variety of health care options, retirement plans, career development, health promotion programs, and employee-sponsored childcare.

On-site child care programs increase job satisfaction, but have little effect on employee absenteeism (Goff et al., 1990).

POSITIVE EMPLOYEE ATTITUDES AND BEHAVIORS

Organizational citizenship behaviors (OCBs) involve efforts by organizational members that advance or promote the work organization and its goals.

OCBs are positively correlated with both job satisfaction and organizational commitment (Podsakoff et al., 2000).

Employees who engage in OCBs are less likely to leave the organization and have lower voluntary absenteeism (Chen et al., 1998; Lee et al., 2004).

POSITIVE EMPLOYEE ATTITUDES AND BEHAVIORS

Recently, there has been an explosion of research examining the role of positive affect (positive emotions that affect mood in the workplace) in affecting job satisfaction and positive employee behaviors.

Dispositional (traitlike) positive affect is linked to higher job satisfaction and performance, and lower absenteeism and turnover (Pelled and Xin, 1999).

Emotionally positive workers are more likely to engage in OCBs than emotionally negative workers (Bachrach and Jex, 2000).

REFERENCES Aamodt, M.G (2007). Industrial and

organizational psychology. An applied approach (5th ed) Belmont, CA: Thomson

Aamodt, M.G (2010). Industrial and organizational psychology. An applied approach (6th ed) Belmont, CA: Wadsworth

Riggio, R. E. ( 2009). Introduction to Industrial/Organizational Psychology (5th ed). New Jersey: Pearson/Prentice Hall.