A study of employee affective organizational commitment and retention in Pakistan: the roles of psychological contract breach and norms of reciprocity

Abstract

Social exchange theory and notions of reciprocity have long been assumed to explain the relationship between psychological contract breach and important employee outcomes. To date, however, there has been no explicit testing of these assumptions. This research, therefore, explores the mediating role of negative, generalized, and balanced reciprocity, in the relationships between psychological contract breach and employees’ affective organizational commitment and turnover intentions. A survey of 247 Pakistani employees of a large public university was analyzed using structural equation modeling and bootstrapping techniques, and provided excellent support for our model. As predicted, psychological contract breach was positively related to negative reciprocity norms and negatively related to generalized and balanced reciprocity norms. Negative and generalized (but not balanced) reciprocity were negatively and positively (respectively) related to employees’ affective organizational commitment and fully mediated the relationship between psychological contract breach and affective organizational commitment. Moreover, affective organizational commitment fully mediated the relationship between generalized and negative reciprocity and employees’ turnover intentions. Implications for theory and practice are discussed.     

High commitment HRM and organizational and occupational turnover intentions: the role of organizational and occupational commitment

Using data from 41 managers and 143 chefs from 41 Indonesian restaurants, we examined whether High Commitment Human Resource Management (HCHRM) is negatively related to chefs’ organizational (ORTI) and occupational turnover intentions (OCTI). In addition, we examined whether organizational commitment (ORC) mediates the HCHRM–ORTI relationship and occupational commitment (OCC) moderates the HCHRM–OCTI relationship. Results from hierarchical level modeling analyses (chefs nested in restaurants) showed that HCHRM is negatively related to both chefs’ ORTI and OCTI. In addition ORC mediates the HCHRM–ORTI relationship, and OCC moderates HCHRM–OCTI relationship. These results have important implications in terms of the unique role the two foci of commitment play in the HCHRM–ORTI and OCTI linkages.     

New evidence on absenteeism and presenteeism

This paper draws from two separate but complementary theories, namely social exchange theory and social identity theory, as a means of understanding the organizational antecedents of organizational commitment. Its purpose is to study the connections between the characteristics of work in the organization (a source of perceived organizational support), the characteristics of the organization (reflected in perceived external prestige), organizational commitment and turnover intentions. We test our assumption using a sample of 249 managers and a longitudinal design. The results show that perceived organizational support and perceived prestige are differently influenced by the characteristics of and in the organization. This suggests that the characteristics of the firm, reflected in the notion of perceived external prestige, play a complementary role to the characteristics of work in the organization, reflected in perceived organizational support, in shaping organizational commitment and turnover intentions.     

Banking Employees’ Perceptions of Corporate Social Responsibility,Value-Fit Commitment,and Turnover Intentions: Ethics as Social Glue and Attachment

Evidence suggests that efforts to improve corporate ethics and social responsibility are associated with enhanced work attitudes, but the nature of these relationships is still subject to investigation. Consequently, this study determines the degree to which perceptions of corporate social responsibility are related to individuals’ value-fit commitment and turnover intentions (both employee-reported and manager-reported). Information was obtained from subjects employed in a southern regional branch of a national banking and financial services institution. Two unique self-report questionnaires were developed to collect information from managers and employees, resulting in ninety-two matched pairs of forms. Mediation analysis indicated that perceived corporate social responsibility was associated with increased value-fit commitment, and that value-fit commitment was negatively related to employee-reported and manager-reported turnover intentions. The presence of full mediation was identified in both frameworks. These findings present a number of important managerial and research implications, which are discussed in this study.     

Linking job insecurity to well-being and organizational attitudes in Belgian workers: the role of security expectations and fairness

The aim of this study was to investigate how perceptions of job insecurity and fairness associate with individual well-being (job satisfaction and general health) and organizational attitudes (organizational commitment and turnover intention), under the condition that the psychological contract as perceived by the employee includes a promise on job security, or not. More specifically, we suggest that (H1) job insecurity is negatively related to individual well-being and organizational commitment and positively related to turnover intentions when job security is expected as part of the psychological contract, (H2) that job insecurity is negatively related to fairness perceptions when job security is expected as part of the psychological contract, (H3) that fairness associates positively with individual well-being and organizational commitment and negatively with turnover intentions and (H4) that the association between job insecurity, individual well-being and organizational outcomes is mediated by fairness under the condition that job security is expected as part of the psychological contract. Thus, we propose a model of mediated moderation. Results based on a sample of Belgian employees (N = 559) supported our hypotheses for organizational outcomes. For individual well-being, the mediation framework was not conditional upon a perceived promise of job security as part of the psychological contract. We conclude that employees' perceptions of job insecurity and fairness are important factors in employees' well-being and their attitudes towards the organization. More importantly, these perceptions can in part be shaped by organizational agents such as managers and supervisors. Additionally, the active utilization of the psychological contract in management strategies seems to have favourable results for the fostering of pro-organizational attitudes among employees.     

When the going gets tough: the influence of expatriate resilience and perceived organizational inclusion climate on work adjustment and turnover intentions

Abstract

Despite the strong evidence for the beneficial influence of resilience for employee stress resistance in domestic settings, the construct has not received much attention in the expatriation literature, where stress is considered a major factor for expatriates’ poor cross-cultural adjustment and turnover. Drawing upon conservation of resources theory, the present study examines resilience as an antecedent of expatriate work adjustment and turnover intentions. Furthermore, this study investigates the moderating role of perceived organizational inclusion climate as a resource-protecting organizational factor. Results from a survey of 175 expatriates in South Korea indicate that resilience is positively related to expatriate work adjustment and that these positive effects are more pronounced when expatriates perceive their organizational climate to be highly inclusive. Furthermore, findings suggest that work adjustment mediates the effects of resilience on turnover intentions and that this mediation is moderated by a perceived organizational inclusion climate. Implications for theory and practice are discussed.     

Employee work values and organizational attachment in North Mexican maquiladoras

Maquiladoras in Northern Mexico are currently plagued by low organizational attachment among production workers. Workers often feel little psychological commitment to their maquiladora, and turnover rates in the plants average about 10 per cent per month. In this study we examine the role that work values play in maquiladora workers' attachment to their organizations. An analysis of data from 227 production workers in two maquiladoras reveals that the upward-striving value (a desire continually to seek a higher-level job) is positively associated with turnover intentions and negatively associated with organizational commitment, while the social-status-of-job value (the perception that a good job merits respect) is positively associated with organizational commitment. The findings offer guidance to managers and management scholars attempting to understand and combat the organizational attachment problem in Northern Mexico.     

Affective,Normative and Continuance Commitment: Can the ‘Right Kind’ of Commitment be Managed?

This study examines the multi-dimensionality of organizational commitment: affective, normative and continuance (including the sub-components of low perceived alternatives and high personal sacrifice), and how these are differentially related to a set of antecedents and consequences (i.e. turnover intentions, absenteeism and acceptance of change). The results, based on a sample of 505 Australian male fire-fighters, indicate that organizational commitment is best represented by the four-factors of affective, normative, low perceived alternatives and high personal sacrifice. In addition, employees experience different personal, job-related and environmental causes of commitment depending on whether they feel they want to, ought to, or need to remain with the organization. Further, not all facets of commitment enhanced organizational effectiveness, with affective being the most beneficial (i.e. employees are less likely to leave, be absent and are more accepting of change) and low perceived alternatives being the most detrimental (i.e. less accepting of change). The implications of these findings for the management of desirable forms of commitment are discussed.     

The role of assessment centers in job satisfaction and organizational commitment: a case of the Korean government

While many studies have shown how assessment centers affect employees’ career success or job performance, these studies do not demonstrate how employees’ attitudes are affected by their perception of assessment centers. This study aims to investigate the influence of employees’ perception of assessment centers on their job satisfaction and organizational commitment, which are the key elements in predicting working behaviors, such as job performance, job involvement, and turnover intentions. To analyze the nature of the influence, 306 employees who had been evaluated by an assessment center in the Korean Rural Development Administration (KRDA) were surveyed. Regression analysis revealed that although there is no influence on their organizational commitment, employees with a positive perception of assessment centers experience higher levels of job satisfaction (p < .01). These results suggest that the positive perception of assessment centers affects the general feeling of organizational members about their work even though it does not affect their emotional attachment to the organization or dedication to organizational values. Thus, assessment centers can be used as a tool not only to select capable candidates but also to yield positive effects on organizational members’ job attitudes.     

The role of organizational culture in the relationship between leadership and organizational commitment: an empirical study in a Greek organization

The aim of this paper is to explore the nature of relationships between organizational culture and leadership behaviours in affecting employees' commitment to their work organization. Building on organizational commitment literature, this study used a survey methodology. Empirical evidence was obtained from 300 employees working in a large Greek service company. The analyses indicated that the culture orientations examined served as mediators in the relationship between leader behaviour and followers' affective and normative commitment to the organization. The findings also indicated that continuance commitment is a two-dimensional construct; the ‘personal sacrifices’ dimension was found to be related to organizational culture and transactional contingent reward. This research paper has key messages for practitioners contributing to the fields of commitment, organizational culture, leadership and human resource management.     

Exploring the role of perceived external prestige in managers' turnover intentions

Employee turnover is an important topic in the human resource management literature. Several researchers have sought to analyse its multiple determinants and to model the turnover process. The purpose of this paper is to study the impact of employees' perception of the external image of the company they work for on their intentions to leave. It is based on a questionnaire survey of 801 French managers that attempted to incorporate the notion of perceived external prestige (PEP) within the literature's classical model of turnover. The results show that the impact of PEP on intentions to leave is partially mediated by the two determinants of turnover in the model: organizational commitment and job satisfaction. Yet there still remains a direct effect of PEP on intentions to quit. Our research also attempted to confirm the existence of a possible moderator effect, but was unable to find such an effect.     

Employees are satisfied with their benefits,but so what? The consequences of benefit satisfaction on employees’ organizational commitment and turnover intentions

Firms are increasing their efforts to offer benefits that satisfy their employees. However, the attitudinal and behavioral consequences of such satisfaction remain unclear. This article draws on the social exchange perspective and organizational support theory to examine the consequences of three dimensions of employees’ benefit satisfaction on organizational commitment and turnover intention, by considering the mediating effect of perceived organizational support (POS). A hypothesized model is developed and tested using partial least squares analysis on a sample of 870 employees working in Spanish firms. The results show that three dimensions of benefit satisfaction contribute to the development of POS, and that POS mediates their effects on organizational commitment. However, only benefit determination and benefit administration satisfaction have an effect on turnover intention, through the mediation of POS and organizational commitment.     

Effective HR implementation: the impact of supervisor support for policy use on employee perceptions and attitudes

Abstract

Effective implementation of human resource (HR) policies appears to depend on supervisors’ active involvement in the intervention process. Following recommendations of a recent intervention evaluation framework, we examine how perceived supervisor support during the implementation of a work-life intervention helps to change participants’ perceptions of organizational family supportiveness, and how this ultimately changes participants’ engagement and turnover intentions. A three-wave longitudinal study in a professional services firm (N = 434) that has formally involved supervisors in the process of a work-life intervention showed support for our study hypotheses. Supervisor support for policy use influenced employees’ positive work–home culture perceptions, which in turn strengthened employees’ work engagement and diminished their turnover intentions over time. We discuss practical implications and give recommendations on the future design of HR interventions and related policies.     

Normative commitment in the workplace: A theoretical analysis and re-conceptualization

Among the components of the Meyer and Allen's [Meyer, J. P., & Allen, N. J. (1991). A three-component conceptualization of organizational commitment. Human Resource Management Review, 1, 64?89] three-component model of organizational commitment, normative commitment (NC) has received the least attention. It is sometimes dismissed as a redundant construct that bears many similarities to affective commitment and does not explain work behaviors beyond other components. In this review, we seek to re-establish the theoretical and practical significance of NC. We argue that NC has a dual nature and that it manifests itself differently depending on the strength of other components in an employee's commitment profile. NC can be experienced either as a moral duty or a sense of indebtedness, each having different implications for work behavior. Drawing on theories of perceived organizational support, motivation, psychological contracts, leadership, and culture, the paper justifies the distinction between two “faces” of NC, delineates organizational factors that could promote a more positive interpretation of NC, and proposes an agenda for future research.     

Organizational Justice and Individuals' Withdrawal: Unlocking the Influence of Emotional Exhaustion

This study examined the relationships between organizational justice and withdrawal outcomes and whether emotional exhaustion was a mediator of these linkages. Data were obtained from 869 military personnel and civil servants; using structural equation modelling techniques, we examined an integrative model that combines justice and stress research. Our findings suggest that individuals' justice perceptions are related to their psychological health. As predicted, emotional exhaustion mediated the linkages between distributive and interpersonal (but not procedural and informational) justice and individuals' withdrawal reactions. Results showed that distributive and interpersonal justice negatively related to emotional exhaustion and emotional exhaustion negatively related to organizational commitment which, in turn, negatively influenced turnover intentions. These findings were observed even when controlling for the presence of contingent‐reward behaviours provided by supervisors and individuals' psychological empowerment.     

Unpacking Commitment: Multiple Loyalties and Employee Behaviour*

abstract We present findings from three UK studies on the nature and consequences of employees’ multiple commitments in the workplace, with samples drawn from private manufacturing, private services and the public sector. Co‐workers, the union, the union representative, customers, and the immediate boss emerge as separate foci of commitment, distinct from ‘global’ commitment to the organization as a whole. Consistent with social exchange theory, attitudinal and behavioural outcomes are predicted by commitment to those foci that might be expected to benefit from the outcome in question. There is evidence that global organizational commitment mediates the relationship between foci‐specific commitments and organization‐related outcomes, but there is no mediation in the case of those foci and outcomes that are more cognitively distant from the organization. A comparison of the studies suggests that the pattern and outcomes of commitment are influenced by the nature of the job and of the work context.     

Reexamining the Workplace Justice to Outcome Relationship: Does Frame of Reference Matter?

Using a combination of self‐interest and deontological theories as justification, we propose a demarcated view of workplace justice that separates justice for an individual (personal justice) and inferred assessments of justice for organizational members (third party justice). Results of two studies confirmed the appropriateness of separate justice measures and demonstrated differential effects on key criteria based on the relevancy (personal or joint) of the outcome in question. Specifically, Studies 1 and 2 found that personal justice was a better predictor of organizational commitment and turnover intentions while third party justice was more closely related to workplace cohesion (Study 1), citizenship behaviours (Study 2), and deviance behaviours (Study 2). Implications of these findings and future research needs are discussed.     

Structural Determinants of Job Satisfaction and Organizational Commitment in Turnover Models

Using Meta-Analytical Structural Equation Modeling (SEM), the relationships between structural determinants of job satisfaction and organizational commitment were investigated in the context of contemporary turnover models. Data for this study were obtained from nine empirical studies conducted under the direction of James L. Price and Charles W. Mueller at the University of Iowa. The results suggest that only three structural determinants (distributive justice, promotional chances, and supervisory support) are directly related to organizational commitment over and above their impact on job satisfaction. The effect size of these direct links, however, is small in that they are not detectable in smaller samples (e.g., n=244). On the other hand, most structural determinants are directly related to job satisfaction. The notable exception is the amount of pay employees received which is not related to either job satisfaction or organizational commitment. These findings and implications for future turnover research are discussed.     

THE EFFECTS OF EMPLOYEE OWNERSHIP ON EMPLOYEE ATTITUDES: AN INTEGRATED CAUSAL MODEL AND PATH ANALYSIS*

Research on employee-owned organizations to date has utilized alternative theoretical perspectives and has examined varying attitudinal outcomes. This study reviews previous research and attempts to integrate the findings into a causal model that combines the results of prior studies. the resulting causal model was tested empirically with a sample (N= 181) of employees from a firm that adopted an employee ownership programme. Financial value of the ESOP was positively related to satisfaction with the ESOP plan, but was not related to other attitudinal variables. Perceived influence from ownership was positively related to ESOP satisfaction, job satisfaction, and organizational commitment. ESOP satisfaction, job satisfaction, and organizational commitment were negatively related to turnover intention. ESOP satisfaction and turnover intention were related to actual employee turnover behaviour over an extended time period.     

Control and commitment HR practices,job satisfaction and turnover intentions: a comparison between local and multinational firms in China

There is a growing body of literature and debate around control versus commitment human resource management (HRM) systems and their impacts on employees. However, the impacts of these constructs have not been widely examined in more emerging economies. Taking a specific sample of educated professionals working for multinational and local firms in China, this study investigated employee perceptions of control and commitment HR practices, job satisfaction and turnover intentions. A total of 311 respondents completed a structured survey questionnaire. Results revealed that those working for multinational firms reported more positive perceptions of their employers' control and commitment HR practices. In multinational firms, the use of commitment HR practices predicted lower intentions to leave. However, in domestic firms a lack of control HR practices predicted higher turnover intentions. Theoretically, the study adds to discussions about the nature and roles of these constructs, their impacts on HR outcomes and how institutional mechanisms might shape the degree of HRM homogeneity and hybridity across organizations in China. Practically, the study provides guidance to international and local firms on how to improve their HRM effectiveness to achieve a higher retention of their most talented professionals.