Professional–Organisational Commitment: A Study of Canadian Professional Accountants

This paper extends the literature on professional and organisational commitment through an online survey of professional accountants that examines the influence of several contextual features; namely, workplace diversification, occupational stress, professional involvement and culture. The survey was carried out around the end of 2002 with Canadian chartered accountants (CAs) from four Canadian provincial institutes. Three of these provincial institutes are located in English-speaking provinces (Alberta, British Columbia and Nova Scotia), while the fourth CA association is in Quebec, a predominantly French-speaking province. In contrast to prior research carried out more than two decades ago, our results indicate that respondents in public practice do not differ from respondents in non-public accounting settings in their level of professional commitment and in their level of organisational commitment. Our results also suggest that occupational stress and professional involvement are both significantly related to professional commitment. Finally, our survey data indicate that accountants working in Quebec had a lower professional commitment than their peers working in English-speaking provinces, thereby suggesting that culture exerts significant influence on professional commitment.     

Fairness in performance evaluation and its behavioural consequences

A recent paper in Accounting and Business Research by Lau et al. (2008) offers systematic evidence to explain whether managers’ perceptions on fairness of performance evaluation procedures affect attitudes such as job satisfaction; and if it does, the different behavioural processes involved. Our paper re‐examines Lau et al.’s model and hypotheses to assess the external validity of their findings, based on a very different sample of managers. Drawing on recent organisational justice literature, it further develops the model and examines the potential interaction effects of fairness of performance evaluation procedures and other variables on job satisfaction. Finally, it extends the outcome variable to include manager performance. Using survey responses from 165 managers, supported by 24 interviews, drawn from three major organisations in the manufacturing and financial services sectors, we find that Lau et al.’s results on the indirect effects of fairness of performance evaluation procedures on job satisfaction are generalisable to other organisational settings and managerial levels. However, using their model we do not find support for the outcome‐based effects through distributive fairness. Developing a revised model we observe that the effects of distributive fairness on job satisfaction are indirect via organisational commitment. When the model is further developed to incorporate performance as the outcome variable, we observe similar findings.     

Accountants' job satisfaction: A path analysis

This study analyzes job satisfaction and some of its correlates among Canadian chartered accounts (CAs). It focuses on the formulation and examination of influence paths between professional commitment, work need deprivation, organizational commitment, job satisfaction and intention to leave the organization (migrate). The empirical model with respect to the total sample mostly replicated the theoretical one. Migration tendencies of partners and sole practitioners in public practice were found unrelated to their job satisfaction and organizational commitment. Such tendencies of CAs in industry and government as well as those of employees in CA firms were related to their organizational commitment only. Professional commitment of CAs in nonprofessional organizations was found unrelated to the study variables.     

Perceived performance,equity sensitivity and organisational commitment among bank managers

This study looks at equity sensitivity and organisational commitment and considers the possible moderation role that managers’ perception of organisational performance may have. Using an equity theory perspective, the constructs of equity sensitivity and organisational commitment, as well as the effect of perceived firm performance, are considered. A research model linking their interaction is proposed. Data are collected from managers of a commercial bank and moderated regression is used to test the hypotheses. Results support a positive effect of equity sensitivity on organisational commitment whereas high or low perceived firm performance is found to have a determining effect on this relationship.     

The impact of the antecedents and consequences of job burnout on junior accountants' turnover intentions: a structural equation modelling approach

This paper examines the impact of the antecedents and consequences of job burnout on junior accountants' turnover intentions. A questionnaire was completed by 368 junior accountants working in public accounting firms. Our results suggest that role ambiguity, role conflict and job‐related tension are important antecedents for job burnout. Role ambiguity and role conflict initially influence employees' perceived levels of job‐related tension, and job‐related tension is associated to job burnout, which, in turn, decreases employees' levels of job satisfaction and organisational commitment. Dissatisfied and uncommitted employees are more likely to seek alternative employment.     

The Impact of Social Influence Pressure on the Ethical Decision Making of Professional Accountants: Australian and New Zealand Evidence

This paper reports the results of an online survey examining whether inappropriate social influence pressure, in the form of obedience and conformity pressure generated by superiors and colleagues, influences the ethical decision making of members of four professional accounting institutes in two countries, namely Australia and New Zealand. We also evaluate the effects of organisational and professional commitment and what role, if any, such commitment plays in mitigating inappropriate social influence pressure. The results indicate that despite the members of the professional bodies displaying a high level of ethical judgement, obedience and conformity pressure do influence their ethical decision making. Furthermore, high levels of organisational and/or professional commitment were found to mitigate inappropriate social influence pressure, in that respondents who exhibit high levels of organisational and/or professional commitment are less likely to succumb to inappropriate social influence pressure. Our findings contribute to an understanding of the influences on ethical decision making by professional accountants, which could make workplace environments more conducive for ethical decision making by focusing on reducing inappropriate social influence pressure by taking steps to increase organisational and/or professional commitment.     

The association between performance appraisal systems,work‐related attitudes and academic performance

This study examines the association between Brown et al.’s (2010) four dimensions of the quality of the performance appraisal system (the clarity, communication, fairness and trust) with the work‐related attitudes [job‐related stress, employee organisational commitment (EOC) and propensity to remain] of Australian accounting academics. Furthermore, the study examines the influence of such work‐related attitudes on academic performance in respect to research, teaching and community service. Data were collected from a mail survey distributed to accounting academics within Australian universities. The results indicate that all four dimensions of the quality of the performance appraisal system were associated with work‐related attitudes. Specifically, communication, fairness and clarity were positively associated with the level of EOC, trust was negatively associated with job‐related stress and fairness was positively associated with the propensity to remain. With respect to the effect on academic performance, job‐related stress was found to be negatively associated with research performance, while the level of EOC was positively associated with both teaching and community service. The findings highlight the importance of improving the quality of performance appraisal systems within the Australian higher education sector.     

Management of frontline financial sales personnel

The employee turnover rate within the financial services industry is one of the highest among all industries. Studies demonstrate that a salesperson’s organizational commitment and propensity to leave are impacted by job satisfaction and emotional exhaustion. This study examines the relationships among emotional exhaustion, organizational commitment, propensity to leave and the facets of job satisfaction. Findings support that: (i) financial services salespeople’s propensity to leave is influenced by emotional exhaustion, (ii) emotional exhaustion is mediated by multi-faceted job satisfaction in predicting organizational commitment and (iii) the facets of job satisfaction are, in part, mediated by organizational commitment in predicting propensity to leave.     

Organisational and professional commitment of early career accountants: do mentoring and organisational ethical climate matter?

This study assesses the effects of mentoring and organisational ethical climate (OEC) on the organisational and professional commitment (PC) of early career accountants (ECAs) (i.e. accounting graduate recruits with three or less years of working experience). The empirical data are based on a questionnaire survey from 86 ECAs in Australian public accounting firms, and hypothesis testing utilises partial least squares analysis. Our results indicate when a career development style of mentoring is adopted there is greater organisational as well as PC. By contrast, a social support mentoring style has no significant impact on organisational commitment (OC) and a negative effect on PC. Further, our data also reveal OEC to be positively associated with OC, and OC in turn having a positive impact on PC. The results imply that fostering a career‐focused mentoring environment and an OEC can increase an ECA's OC and PC. These results have various implications for human resource management at both the accounting firm and professional levels.     

ORGANISATIONAL COMMITMENT IN THE POLICE SERVICE: EXPLORING THE EFFECTS OF PERFORMANCE MEASURES,PROCEDURAL JUSTICE AND INTERPERSONAL TRUST

This study aims to investigate whether, and how, the use of performance measures, procedural justice, and interpersonal trust interact to affect organisational commitment of police officers. Drawing on a survey based on a sample of 57 senior officers within a single police force, we find that the use of performance measures, procedural justice, and interpersonal trust are positively associated with organisational commitment. Further analysis reveals that trust between officer and superior mediates the relationship between the use of non‐financial measures and organisational commitment, but procedural justice does not have a mediating effect on commitment. These findings are further explored through selected interviews with respondents.     

The impact of reliance on incentive-based compensation schemes,information asymmetry and organisational commitment on managerial performance

This study examines the effects of information asymmetry and organisational commitment on the relation between the extent of reliance on incentive-based compensation schemes and managerial performance. The responses of 109 managers, drawn from a cross-section of Australian manufacturing companies, to a questionnaire survey, were analysed by using a multiple regression technique. The results provide evidence of higher managerial performance for managers with low organisational commitment and a high reliance on incentive-based compensation schemes in high information asymmetry situations. On the other hand, the results show that the performance level of managers with high organisational commitment is unaffected regardless of the degree of information asymmetry and the extent of reliance on incentive-based compensation schemes.     

THE PERSONALITY,JOB SATISFACTION AND TURNOVER INTENTIONS OF AFRICAN-AMERICAN MALE AND FEMALE ACCOUNTANTS: AN EXAMINATION OF THE HUMAN CAPITAL AND STRUCTURAL/CLASS THEORIES

The American Institute of Certified Public Accountants has made minority recruitment a major goal. Minorities, and especially African-Americans, have not been entering the accounting profession in proportion to their numbers in either the general population or the population of college graduates. Two competing explanations have been advanced that attempt to explain this failure@8ihuman capital theory, and structural/class theory. This paper reports on the results of a survey of a sample of 445 African-American accountants that attempts to test the validity of these two theories by assessing the respondents' personality characteristics, job satisfaction and turnover intentions. The distribution of personality type for the sample of African-American accountants was found to be similar to the results of a previous study conducted on groups of Anglos and Hispanics. Additionally, the job satisfaction and turnover intention results for the sample were found to be similar to those reported in previous studies. As a result, the findings fail to support the human capital theory, and implicitly lend support to the structural/class theory. Finally, anecdotal evidence from the respondents in two open-ended questions was examined. It indicated that African-American accountants' failure to advance in the profession was perceived to be attributed to a less than total commitment to diversity and the existence of glass ceilings in many organizations.     

Organisational Factors and Dimensions of Satisfaction:A Comparative Study of Accountants in Australia and the US

This paper compares perceptions of organisational characteristics and their relationship to job satisfaction dimensions of US and Australian accountants. Data were collected from accountants in an international accounting firm on perceptions of job satisfaction dimensions, autonomy, feedback on performance and access to job-related information. Given the cultural similarities of the two countries and the use of a single firm, differences were not expected. Results indicated that accountants in the two countries had similar perceptions of the organisational variables and similar levels of satisfaction. However, there were extensive differences in how the organisational variables related to the satisfaction dimensions.     

The interplay of salesperson’s job performance and satisfaction in the financial services industry

Research has not yet provided conclusive confirmation or disconfirmation of any model that discusses the relationship between job satisfaction (JS) and job performance (JP). This article reviews the relationship in the financial services industry setting and examines in line with the precedents (perceived organizational support, role ambiguity, role conflict (RC), work-family conflict (WFC), emotional exhaustion (EE)) and the consequences (organizational commitment). Findings suggest that, in the financial services industry, JP causes JS and has a positive effect on organizational commitment. This study also finds that WFC serves as an antecedent to RC, EE and JS. Most importantly, the finding that WFC is significantly related to RC is new and thus needs to be confirmed in different industry settings.     

A note on work-related values, budget emphasis and managers’ organisational commitment

Managers’ work-related values (WRVs) have important implications for designing appropriate management accounting systems (MAS) in organisations. This paper examines the effect of the interaction between managers’ WRV for innovation and budget emphasis (an integral part of MAS) on their organisational commitment. The sample consisted of 109 managers from production, marketing and support departments within Australian manufacturing firms. Hypotheses were tested using both quantitative and qualitative data collected by a questionnaire survey and post-survey interviews. The results indicate that the adoption of low budget emphasis led to high organisational commitment when managers’ WRV for innovation was high, but not when managers’ WRV for innovation was low. The results also indicate that marketing managers held higher WRV for innovation than production managers. The post-survey interviews provide further insight into how a more customer- and competitor-focused subculture of marketing managers and a more technical- and efficiency-focused subculture of production managers may promote the difference in their WRV for innovation, and affect their attitudes towards budget emphasis. The findings of the study have implications for design of performance evaluation systems for managers in functionally differentiated organisations.     

Behavioral effects of fairness in performance measurement and evaluation systems: Empirical evidence from France

The measurement and evaluation of employee performance are crucial aspects of the management accounting system because of their effects on employee motivation. It is therefore important for management accountants to understand how such effects occur. Fairness may be a key explanatory factor. This study proposes that the effects of the fairness of employee performance measurement and evaluation procedures on employee job satisfaction and organizational commitment are indirect. The results, based on a sample of 60 French managers, support these expectations. For the relationship between procedural fairness and job satisfaction, the effects are indirect through trust and fairness of outcomes. For the relationship between procedural fairness and organizational commitment, the effects are indirect through fairness of outcome, trust and job satisfaction. The results also indicate that affective effects through trust and satisfaction are substantially stronger than that through fairness of outcome. Fair performance evaluation procedures therefore do more than the mere provision of equitable outcomes among French managers.     

The Impact of Position Difference on Employees’ Organizational Commitment After the Merger of Life Insurance Companies

We investigate the impacts of job position and survey time period on employee’s organizational commitment of insurance company after the merger. Our results show that both job position and survey time period are significant determinants to employee’s organizational commitment. Results also show that there is no interaction effect between survey time period and job position. For each year, during the survey time period, the mean of organization commitment of agent employees is significantly higher than staff employees. The mean difference of organizational commitment between agent and staff employees shrank year by year during the survey time period.     

Career growth opportunities and employee turnover intentions in public accounting firms

This study examines the role of career growth opportunities in explaining turnover intentions of junior auditors in public accounting firms via a survey of them. Prior studies in applied psychology and organisational behaviour argue that employees and their organisations have a social exchange relationship in which employees and organisations provide reciprocal benefits to each other. Extending this research, this paper proposes that career growth opportunities represent a critical benefit to lower level employees in accounting firms. When these employees believe that their firm provides this benefit, they reciprocate with stronger commitment to the firm which, in turn, leads to lower turnover intentions. This study also seeks to identify the causes or antecedents of employee beliefs about career growth opportunities. Two antecedents are proposed: the effectiveness of the firm's training programmes; and, the organisational prestige of the firm. Results of path analysis suggest that both training effectiveness and organisational prestige enhance employee beliefs about the career growth opportunities offered by the public accounting firms, which, in turn lead to higher commitment and lower turnover intentions.     

Organisational change, outsourcing and the impact on management accounting

New empirical evidence is presented on organisational change, outsourcing and the impact on management accounting in three types of organisations: private sector companies, the National Health Service and Local Authorities. Spearman rank correlations are used to examine three propositions: that (i) change in organisational form exists and may be related to an increased use of outsourcing or subcontracting; (ii) outsourcing is expected to improve organisational flexibility and/or the service of an activity, to lead to cost savings, or to allow the organisation to focus more clearly on its core business; and (iii) outsourcing promotes change in management accounting. Statistical support is found for each of our three propositions. This is further supported by reference to three illustrative case studies. Overall, we conclude that organisational change, as effected by the use of outsourcing, is related to specific changes in the organisations' management accounting systems.     

Nigerian SMEs: Commitment and loyalty to their banks

Commitment has a crucial role to play in underpinning long-term business relationships, and as such, is well established in the related academic literature. Limited research does, however, exist pertaining to the specific relationships between SMEs and their banks. This paper presents and assesses commitment relationship framework that seeks to evaluate such relationships. Various validated scale-sets from the existing studies are combined here to assess commitment, advocacy and repurchase intention. Data were collected from 199 SMEs via interviews with owners or senior (financial) managers. Their assessment involved exploratory factor analysis to determine underlying data structure, with internal reliability assessment of the identified factors. Commitment is established around two components; affective and calculative, whilst advocacy and repurchase intention converge into a single behavioural intentions factor. The two-dimensional presentation of commitment and behavioural intentions are also distinct. Originality lies in the validation of commitment and behavioural intention constructs within this specific business arena and geographical location, as well as showcasing research that involves engagement with smaller organisations rather than their larger counterparts in the consideration of bank performance.