Job Satisfaction and Organizational Commitment: The ...

PREO Journal of Business and Management Vol. 1, Issue 1, February 2018

ISSN: 2619-6824

Job Satisfaction and Organizational Commitment: The Case of Employees of a Government Agency in Region III, Philippines Lena E. Nacpil (Corresponding author) Graduate School (Student) Our Lady of Fatima University – Pampanga, Campus, Philippines [email protected] Jean Paolo G. Lacap City College of Angeles, Angeles City, Philippines [email protected] Abstract The study examines the level of job satisfaction and organizational commitment of employees of a government agency in Region III, Philippines. It specifically assesses the significant differences in the level of job satisfaction of the respondents when grouped in terms of demographic factors, the significant differences in the level of organizational commitment of the participants when grouped in terms of demographic factors, and the significant relationship of job satisfaction and organizational commitment. A purposive sampling technique was used in identifying the respondents and a descriptive research design was employed in the study. Using t-test, ANOVA, and Pearson correlation, the findings revealed that significant differences exist in the level of job satisfaction when grouped according to sex, years of service, and age. Whereas, significant differences exist in the level of organizational commitment when grouped based on years of service and age. Moreover, a significant, positive correlation was found in the job satisfaction and organizational commitment relationship. Keywords: job satisfaction, organizational commitment, government agency, government employees 1. Introduction People or human resources are considered to be the primary asset in any organization. Being the life blood of the company, they are vital in the success of the firm. But their contribution to the feat of the organization does not lie solely on the tangible aspects that they are receiving from their jobs; intangible factors are also important in order for them to sustainably share their knowledge, skills, and abilities. Employees are among the most important determinants and leading factors that determine the success of an organization in a competitive environment. Besides that, if managed properly, employee commitment can lead to beneficial consequences such as increased effectiveness, performance, and productivity, and decreased turnover and absenteeism at both the individual and organizational levels (Fiorita, Bozeman, Young, & Meurs, 2007). Employees in an organization establish attitudes about many different things. They are likely to have attitudes towards their salary, their possible promotion, their boss or supervisor, their benefits, and so on. Some of these attitudes are organizational commitment and job satisfaction (Griffin & Moorhead, 2014).

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In any organization, organizational commitment is regarded as one of the important managerial and business concepts. Organizational commitment refers to the desired end-result of socialization whereby employees become committed to the goals of the enterprise and to the organization as a whole (Gulati, Mayo, & Nohria, 2013). According to Blau and Boal (1987) as cited in Robbins and Coulter (2013) organizational commitment is the degree to which an employee identifies with a particular organization and its goals and wishes to maintain membership in that organization. Hayes and Abernathy (2007) as cited in Gulati et al (2013) mentioned that the process by which organizational commitment is achieved typically evolves over three stages – from compliance to identification to internalization. An internalized culture can lead to stronger aggregate performance as employees feel like owners of the firm. As such, they are willing to go above and beyond to ensure that the firm delivers its commitments to customers as well as to other employees. When employees are committed to their employer and to the organization, they will deliver high-level of performance, thus, helping the organization achieve greater returns every year than any average- or low-committed employees. Khan et al (2010) further emphasized that employees that are highly committed will generally have high performance as compared to those employees that have less organizational commitment. Choong, Wong, and Lau (2011) stressed out that organizational commitment has played an important role in different organizations which results in high individual and organizational performance. Thus, the level of organizational commitment of each employee plays an important role in the success and failure of the company. In an ideal situation, the more the employee is committed to the organization, the more he/she highly performs in the firm. On one hand, job satisfaction is one of the most discussed work attitudes (Schermerhorn, 2013). It reflects the extent to which people find gratification or fulfillment in their work (Griffin & Moorhead, 2014). Employee satisfaction is essential to the success of any business. A high rate of employee contentedness is directly related to a lower turnover rate. Thus, keeping employees satisfied with their careers should be a major priority for every employer (Gregory, 2011). Hence, when an employee enjoys his/her scope of work, achieving success becomes an easier task. Instead of thinking of the task assigned as a burden, the employee considers the journey in accomplishing duties an enjoyable undertaking. Success is relative, and in many cases, has nothing to do with money or any monetary amount (Korkki, 2010). Organizational commitment and job satisfaction are widely used variables in management and business literatures (Bodla & Danish, 2009; Bodla & Naeem, 2008a, 2008b). Understanding these two management concepts - organizational commitment and job satisfaction - is also vital in the public sector. 2. Research Framework and Hypotheses Job satisfaction and organizational commitment are two (2) of the well-researched management concepts in the field of organizational behavior. Several studies on job satisfaction and organizational commitment pointed out that these constructs can impact the organization both positively and negatively. For instance, Fu and Deshpande (2014) investigated how caring climate, job satisfaction, organizational commitment, and job performance are interrelated. Using structural equation modelling, the results showed that caring climate has a significant but indirect effect on organizational commitment and this relationship is mediated by job satisfaction. Moreover, job satisfaction and organizational commitment mediate the relationship of caring climate and job performance. Furthermore, it was also found that job satisfaction is positively related to organizational commitment and significantly but indirectly related to job performance. Additionally, 2


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the results also revealed that organizational commitment and job performance are significantly and directly related. Mafini and Dlodlo (2014) scrutinized the interrelationships of extrinsic motivation, job satisfaction, and life satisfaction. The findings showed that significant relationships exist between job satisfaction and four extrinsic motivation factors: remuneration, quality of work life, supervision and teamwork. Furthermore, the relationship with promotion was insignificant, but a statistically significant relationship was established with life satisfaction. Millan et al (2013) explored the determinants of job satisfaction. The authors identified two (2) types of job satisfaction – job satisfaction in relation to type of work and job satisfaction in terms of job security. The results showed that self-employed individuals are considered more satisfied in terms of work type and have less satisfaction in job security as compared to paid employees. Sarwar and Abugre (2013) investigated the link between rewards and employees’ job satisfaction. The results revealed that rewards impact positive job satisfaction and employee job satisfaction increases loyalty to the organization. On the contrary, pay and amount of work reflected high level of employee dissatisfaction. Masvaure et al (2014) explored how work engagement, intrinsic motivation, and job satisfaction are related. These findings showed that job satisfaction is positively related to work engagement and intrinsic motivation. Moreover, work engagement is also positively related to intrinsic motivation. The results also revealed that age and marital status impact job satisfaction, intrinsic motivation and work engagement. And, as the levels of intrinsic motivation and work engagement increase, job satisfaction also increases. Tabatabaei et al (2013) investigated the relationship of job satisfaction and demographic factors. The findings revealed that there is a correlation between job satisfaction and respondents’ sex, age, and education. Moreover, it was also found out that significant differences in job satisfaction exist when respondents are grouped based on sex, marital status, employment status, and salaries. Kavanaugh et al (2006) examined the relationship of job satisfaction and demographic profiles of healthcare professionals. The findings showed that the years in the profession (professional experience) are associated with job satisfaction. Peng et al (2016) investigated the mediating effects of organizational commitment and job satisfaction in the core self-evaluations and job burnout relationship. The findings showed that the identified variables are highly correlated and organizational commitment and job satisfaction significantly mediate the relationship of core self-evaluations and job burnout. Suma and Lesha (2013) investigated employee job satisfaction and its relations on job dimensions and perceived organizational commitment. The results revealed that an employee’s job satisfaction positively impacts organizational commitment. Top et al (2013) examined the relationships of organizational commitment, organizational trust, job satisfaction, and transformational leadership. The results showed that significant relationships exist among job satisfaction, transformational leadership, and organizational trust. Moreover, it was also found out that organizational trust and job satisfactions predict organizational commitment. 3


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Srivastava (2013) investigated a moderation model where trust and locus of control were considered the moderating factors in the job satisfaction and organizational commitment link. The results indicated that there is a significant and positive link between job satisfaction and organizational commitment. Moreover, the findings showed that trust and locus of control significantly moderate the identified relationship. Nifadkar and Dongre (2014) examined how job satisfaction and demographic factors impact organizational commitment. The findings revealed that there is a positive relationship between job satisfaction and organizational commitment. Furthermore, it was also found out that there is a direct link between age and organizational commitment. On the other hand, respondents’ education was found to be negatively related with organizational commitment. Dogar (2014) explored the relationship between organizational commitment and demographic factors in banking industry. The results revealed that affective and continuance commitment domains are positively related with age and job experience. Moreover, organizational commitment is positively related with years of service. Affum-Osei et al (2015) also examined the relationship of organizational commitment and identified demographic variables. The findings showed that majority of the respondents were moderately and highly committed. Moreover, male participants were highly committed than females. It was also noted that sex, age, educational attainment, work experience, and marital status showed significant relationship with organizational commitment. Iqbal (2010) assessed the relationship between the demographic variables and organizational commitment. The findings showed that length of service is significantly related to organizational commitment while education level is negatively related with organizational commitment. Moreover, no significant correlation was identified in organizational commitment and age relationship. It was also identified that supervisors are more committed than the workers. Azeem (2010) investigated the relationship of demographic variables, job satisfaction, and organizational commitment. The findings revealed that job satisfaction and organizational commitment of the respondents were at moderate level. Moreover, positive relationships also exist among the identified variables – job satisfaction, demographic factors, and organizational commitment. It was also indicated that the predictors of organizational commitment include supervision, pay, overall job satisfaction, age, and job tenure. From the related studies identified, the goal of the present study is to contribute to the body of knowledge of job satisfaction and organizational commitment. Since majority of studies related to these two (2) management concepts explore interrelationships of other constructs in organizational behavior, the current undertaking identified the significant differences in the respondents’ demographic profiles and their levels of job satisfaction and organizational commitment. Moreover, the correlation of the two (2) constructs – job satisfaction and organizational commitment - was also performed.

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Based on the extant literature review and research objectives, the hypotheses of the study are as follows: H1: There is no significant difference in the level of job satisfaction when grouped based on respondents’ sex. H2: There is no significant difference in the level of job satisfaction when grouped based on respondents’ educational qualification. H3: There is no significant difference in the level of job satisfaction when grouped based on respondents’ years of service. H4: There is no significant difference in the level of job satisfaction when grouped based on respondents’ age. H5: There is no significant difference in the level of job satisfaction when grouped based on respondents’ employment status. H6: There is no significant difference in the level of organizational commitment when grouped based on respondents’ sex. H7: There is no significant difference in the level of organizational commitment when grouped based on respondents’ educational qualification. H8: There is no significant difference in the level of organizational commitment when grouped based on respondents’ years of service. H9: There is no significant difference in the level of organizational commitment when grouped based on respondents’ age. H10: There is no significant difference in the level of organizational commitment when grouped based on respondents’ employment status. H11: There is no significant relationship between the respondents’ level of job satisfaction and organizational commitment.

Figure 1. Research Framework From the research objectives and hypotheses formulated, Figure 1 shows how the identified variables were gauged. The study aims to examine if the demographic factors – sex, educational qualification, years of service, age, and employment status – influence respondents’ level of job satisfaction and organizational commitment. Furthermore, it investigates the impact of job satisfaction and organizational commitment. 3. Methods

3.1. Research Design

A descriptive research design was employed in the study in order to measure the significant difference in the respondents’ job satisfaction and organizational commitment when grouped according to sex, educational qualification, years of service, age, and employment status. A descriptive research design is used to provide explanation on current issues or problems by means of data collection in order to describe the occurrence completely (Fox & Bayat, 2008). A causal research design was also employed to identify the relationships of the respondents’ level of job satisfaction and organizational commitment. A causal research, also called as explanatory research, is utilized to show cause-andeffect relationships of the variables under study (Zikmund et al, 2013).

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3.2. Participants of the Study

A purposive sampling was employed in the study. A purposive sampling technique, also called judgment sampling, is used when the researcher relies on his or her own judgment in identifying the member of the population to participate in the undertaking (Collis & Hussey, 2013). The participants were employees of a government agency in Region III, Philippines, and a total of 211 of them voluntarily signified to participate in the study as respondents. Table 1 manifests the demographic characteristics of the participants. Majority of the respondents were female and finished college degree (bachelor’s degree). Most of the respondents had 1 to 5 years of service. In terms of age groups, more than 50% belonged to 21 to 30 and 51-60 age brackets and almost all were regular/permanent/plantilla employees. Table 1. Demographic Characteristics of the Respondents Frequency Percentage Sex Male Female Educational Attainment College Graduate College Undergraduate Master's Graduate Master's Undergraduate Doctorate Degree Graduate Doctorate Degree Undergraduate Others Years of Service 1-5 6-10 11-15 16-20 21-25 26-30 31-35 36-40 Age Groups 21-30 31-40 41-50 51-60 61-70 Employment Status Regular/Permanent/Plantilla Temporary

62 149

29.4 70.6

118 1 53 29 1 6 3

55.9 0.5 25.1 13.7 0.5 2.8 1.4

69 20 5 31 10 9 37 30

32.7 9.5 2.4 14.7 4.7 4.3 17.5 14.2

59 39 32 59 22

28.0 18.5 15.2 28.0 10.4

201 10

95.3 4.7

3.3. Research Instrument

A survey questionnaire was used in the study. It was composed of two (2) parts – demographic profile and job satisfaction and organizational commitment constructs. The demographic factors include sex, educational qualification, years of service, age, and employment status. With regard to assessment of organizational commitment, an Organizational Commitment Questionnaire (OCQ) (Allen & Meyer,1993, Meyer & Allen, 1997; Meyer & Herscovitch, 2001) which includes three factors namely: 6


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affective, continuance, and normative (Meyer, Stanley, Herscovitch, & Topolnytsky, 2002) was utilized. On the other hand, to measure the job satisfaction of the respondents, the Minnesota Satisfaction Questionnaire (MSQ) by Weiss, Dawis, England, and Lofquist (1967) was used in the study.

3.4. Statistical Treatment

In order to measure the significant difference between the demographic factors and the levels of job satisfaction and organizational commitment of the respondents, t-tests and analysis of variance were used. Moreover, a correlation test was also utilized to measure the significant relationship between job satisfaction and organizational commitment. 4. Results

4.1. Respondents’ Level of Job Satisfaction and Organizational Commitment

Table 2 presents the respondents’ level of job satisfaction. A weighted mean of 3.96 reflects that the employees are generally satisfied. Table 2. Respondents’ Level of Job Satisfaction Job Satisfaction JS1 JS2 JS3 JS4 JS5 JS6 JS7 JS8 JS9 JS10 JS11 JS12 JS13 JS14 JS15 JS16 JS17 Total Weighted Mean

Weighted Mean 4.10 4.11 3.95 4.11 3.93 3.55 3.45 3.67 4.16 4.18 4.14 4.07 4.07 3.91 3.94 4.01 3.91 3.96

Interpretation Agree Agree Agree Agree Agree Agree Neither agree nor disagree Agree Agree Agree Agree Agree Agree Agree Agree Agree Agree Agree

Legend: 1.00-1.49: strongly disagree; 1.50-2.49: disagree; 2.50-3.49: neither agree nor disagree; 3.50-4.49: agree; 4.50-5.00: strongly agree

Table 3 reflects the respondents’ level of organizational commitment. In all domains of organizational commitment – continuance, affective, and normative – the employees exhibit a connection with their organization and/or a feel that they fit in and understand the goals of the workplace. The overall weighted mean of 3.75 revealed that the respondents are generally committed with their current workplace.

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Table 3. Respondents’ Level of Organizational Commitment Organizational Commitment Continuance Commitment (9 items) Affective Commitment (10 items) Normative Commitment (7 items) Total Weighted Mean

Weighted Mean 3.53 3.82 3.89 3.75

Interpretation Agree Agree Agree Agree

Legend: 1.00-1.49: strongly disagree; 1.50-2.49: disagree; 2.50-3.49: neither agree nor disagree; 3.50-4.49: agree; 4.50-5.00: strongly agree

4.2. Results of the Independent Sample T-test, ANOVA, and Pearson Correlation

Table 4 shows the significant difference in the level of job satisfaction of the respondents when grouped according to sex. With the t-value of -2.604 and p-value of .05, the results revealed that there is no significant difference in the respondents’ level of job satisfaction when grouped according to their educational attainment. Thus, H2 is not rejected.

Job Satisfaction

Table 5. Significant Difference in the Level of Job Satisfaction when grouped based on Respondents’ Educational Attainment Educ. Attainment

N

Mean

College Grad

118

3.89

College Undergrad

1

3.41

Master’s Grad

53

3.99

29

4.53

1

4.19

6

3.59

3

3.93

Master’s Undergrad Doctorate Grad Doctorate Undergrad Others

F computed

P-value

Decision

Remark

1.580

.154

Fail to reject H2

Not Significant

Table 6 shows the significant difference in the level of job satisfaction of the respondents when grouped according to years of service. With the F-value of 2.167 and p-value of .05, the results revealed that there is no significant difference in the level of organizational commitment of the respondents when grouped according to sex. Thus, H6 is not rejected.

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Table 8. Significant Difference in the Level of Organizational Commitment when grouped based on Respondents’ Sex OC

Sex Male Female

N 62 149

Mean 3.68 3.77

t-computed

P-value

-1.536

.189

Decision Fail to Reject H6

Remark Not Significant

OC is organizational commitment

Table 9 shows the significant difference in the level of organizational commitment of the respondents when grouped according to educational attainment. With the F-value of 1.016 and p-value of >.05, the results revealed that there is no significant difference in the level of organizational commitment of the respondents when grouped according to educational attainment. Thus, H7 is not rejected.

Organizational Commitment

Table 9. Significant Difference in the Level of Organizational Commitment when grouped based on Respondents’ Educational Attainment Educ. Attainment

N

Mean

College Grad

118

3.71

College Undergrad

1

3.23

Master’s Grad

53

3.80

Master’s Undergrad

29

3.79

Doctorate Grad Doctorate Undergrad Others

1

3.27

6

3.72

3

3.78

F computed

P-value

Decision

Remark

1.016

.416

Fail to reject H7

Not Significant

Table 10 shows the significant difference in the level of organizational commitment of the respondents when grouped according to years of service. With the F-value of 2.209 and p-value