Employee Satisfaction and Its’ Impact on Organizational Commitment: A Resource Based Approach

Authors

  • Md. Faisal-E-Alam Begum Rokeya University, Rangpur 5404, Bangladesh
  • Asma Aktarun Nahar North Bengal International University, Rajshahi 6206, Bangladesh

DOI:

https://doi.org/10.31674/ijrtbt.2022.v06i02.001

Abstract

Satisfaction of employees and commitment in Nationalized Commercial Banks (NCBs) is of highest concern due to the nature of organizations in Bangladesh. This study directed to assess the influence of employee satisfaction of work on three levels of firms’ commitment such as affective, continuance and normative commitment within NCBs in Bangladesh. The cross-sectional research design is followed in this investigation. Quantitative survey research was carried out and the sample of 100 employees filled up the questionnaire from four NCBs in Khulna City. The outcomes revealed that the employees’ satisfaction is completely related with Affective Commitment (AC). Furthermore, the Continuance Commitment (CC) of employees is significantly predicted by employee satisfaction at the workplace. Finally, the outcomes also show how the Normative Commitment (NC) of employees is positively impacted by their work satisfaction. Owing to research design, caution was taken in making the results’ generalization. The present study might be of interest and practice for banks in formulating strategic Human Resource Management Policies. Because it considers how managers or bosses, or experts understand their employees’ sense of attachment toward a particular organization. This study also highlighted the bank management practices’ nature and significance for the sustainability of the banking sector.

Keywords:

Satisfaction of Employee, Commitment of Organization (AC, CC and NC), NCBs

Downloads

Download data is not yet available.

References

Agus, A., & Selvaraj, R. (2020). The mediating role of employee commitment in the relationship between quality of work life and the intention to stay. Employee Relations: The International Journal, 42(6), 1231-1248. https://doi.org/10.1108/ER-07-2019-0292

Alharbi, S. S., & Abuelhassan, A. E. (2020). The impact of trust in supervisor on turnover intention: organizational commitment as a mediating mechanism. International Journal on Recent Trends in Business and Tourism (IJRTBT), 4(2), 1-8.

Allen, N. J., & Meyer, J. P. (1990). The measurement and antecedents of affective, continuance and normative commitment to the organization. Journal of Occupational Psychology, 63(1), 1-18. https://doi.org/10.1111/j.2044-8325.1990.tb00506.x

Alrazehi, H. A. A. W., Amirah, N. A., Emam, A. S. M., & Hashmi, A. R. (2021). Proposed model for entrepreneurship, organizational culture and job satisfaction towards organizational performance in International Bank of Yemen. International Journal of Management and Human Science (IJMHS), 5(1), 1-9.

Bailey, A. A., Albassami, F., & Al-Meshal, S. (2016). The roles of employee job satisfaction and organizational commitment in the internal marketing-employee bank identification relationship. International Journal of Bank Marketing, 36(6), 821-840. https://doi.org/10.1108/IJBM-06-2015-0097

Bansal, H. S., Irving, P. G., & Taylor, S. F. (2004). A three-component model of customer to service providers. Journal of the Academy of Marketing Science, 32(3), 234-250. https://doi.org/10.1177/0092070304263332

Barnes, D. C., Ponder, N., & Hopkins, C. D. (2015). The impact of perceived customer delight on the frontline employee. Journal of Business Research, 68(2), 433-441. https://doi.org/10.1016/j.jbusres.2014.06.005

Beck, K., & Wilson, C. (2000). Development of affective organizational commitment: A cross-sequential examination of change with tenure. Journal of Vocational Behavior, 56(1), 114-136. https://doi.org/10.1006/jvbe.1999.1712

Brown, S. P., & Peterson, R. A. (1993). Antecedents and consequences of salesperson job satisfaction: Meta-analysis and assessment of causal effects. Journal of Marketing Research, 30(1), 63-77. https://doi.org/10.2307/3172514

Byrne, B. M. (2013). Structural Equation Modeling with Mplus: Basic Concepts, Applications, and Programming. Routledge. https://doi.org/10.4324/9780203807644

Charni, H., Brun, I., & Ricard, L. (2020). Impact of employee job satisfaction and commitment on customer perceived value: An original perspective. International Journal of Bank Marketing, 38(3), 737-755. https://doi.org/10.1108/ijbm-03-2019-0097

Cramer, D. (1996). Job satisfaction and organizational continuance commitment: a two‐wave panel study. Journal of Organizational Behavior, 17(4), 389-400. https://doi.org/10.1002/(SICI)1099-1379(199607)17:4<389::AID-JOB755>3.0.CO;2-2

Ćulibrk, J., Delić, M., Mitrović, S., & Ćulibrk, D. (2018). Job satisfaction, organizational commitment, and job involvement: The mediating role of job involvement. Frontiers in Psychology, 9(Feb), 1-12. https://doi.org/10.3389/fpsyg.2018.00132

Eleswed, M., & Mohammed, F. (2013). Job satisfaction and organizational commitment: A correlational study in Bahrain. International Journal of Business, Humanities and Technology, 3(5), 44-53.

Falkenburg, K., & Schyns, B. (2007). Work satisfaction, organizational commitment, and withdrawal behaviours. Management Research News, 30(10), 708-723. https://doi.org/10.1108/01409170710823430

Fatima, J. K., Di Mascio, R., Quazi, A., & Johns, R. (2020). The dynamic role of rapport on satisfaction–commitment relationship: Testing alternative models. International Journal of Bank Marketing, 38(4), 917-932. https://doi.org/10.1108/ijbm-01-2020-0005

Felfe, J., & Yan, W. H. (2009). The impact of workgroup commitment on organizational citizenship behaviour, absenteeism, and turnover intention: the case of Germany and China. Asia Pacific Business Review, 15(3), 433-450. https://doi.org/10.1080/13602380802667411

Hackett, R. D., Bycio, P., & Hausdorf, P. A. (1994). Further assessments of Meyer and Allen's (1991) three-component model of organizational commitment. Journal of Applied Psychology, 79(1), 15-23. https://doi.org/10.1037/0021-9010.79.1.15

Hair, J., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Pearson education international; upper saddle river. Multivariate data analysis.

Hassi, A. (2018). “You get what you appreciate”: Effects of leadership on job satisfaction, affective commitment, and organisational citizenship behaviour. International Journal of Organizational Analysis, 27(3), 786-811. https://doi.org/10.1108/IJOA-08-2018-1506

Hossan, C. G., Sarker, M., Rahman, A., & Afroze, R. (2012). An Assessment of Managerial Skills in the Labour-Intensive Industry: A Case Study of a Garments Manufacturing Firm. Journal of Accounting, Business & Management, 19(2), 1-14.

Hua, N. T. A. (2020). The relationship between task-oriented leadership style, psychological capital, job satisfaction and organizational commitment: evidence from Vietnamese small and medium-sized enterprises. Journal of Advances in Management Research, 17(4), 583-604. https://doi.org/10.1108/jamr-03-2020-0036

Islam, T., Ahmad, U. N. U. B., & Ahmed, I. (2013). Organizational learning culture and leader‐member exchange quality: The way to enhance organizational commitment and reduce turnover intentions. The Learning Organization, 20(4/5), 322-337. https://doi.org/10.1108/TLO-12-2012-0079

Islam, T., Khan, S. U. R., Ahmad, U. N. B. U., Ali, G., & Ahmed, I. (2014). Organizational learning culture and psychological empowerment as antecedents of employees’ job-related attitudes: a mediation model. Journal of Asia Business Studies, 8(3), 249-263. https://doi.org/10.1108/JABS-06-2013-0035

Jahangir, N. (2003). The relationship between manager's use of power and employees' work variables in nationalized commercial banks in Bangladesh (Doctoral dissertation, ACU Research Bank).

Jehanzeb, K., & Mohanty, J. (2018). Impact of employee development on job satisfaction and organizational commitment: person–organization fit as moderator. International Journal of Training and Development, 22(3), 171-191. https://doi.org/10.1111/ijtd.12127

Jena, R. K. (2015). An assessment of demographic factors affecting organizational commitment among shift workers in India. Management-Journal of Contemporary Management Issues, 20(1), 59-77.

Jung, H. S., & Yoon, H. H. (2015). The impact of employees’ positive psychological capital on job satisfaction and organizational citizenship behaviors in the hotel. International Journal of Contemporary Hospitality Management, 27(6), 1135-1156. http://dx.doi.org/10.1108/IJCHM-01-2014-0019

Karuna, A. (2021). Impact of Job Satisfaction on Organizational Citizenship Behaviour Mediated by Organizational Commitment in Public Sector Banks. Turkish Journal of Computer and Mathematics Education (TURCOMAT), 12(5), 1609-1615. https://doi.org/10.17762/turcomat.v12i5.2137

Ketchand, A. A., & Strawser, J. R. (2001). Multiple dimensions of organizational commitment: Implications for future accounting research. Behavioral Research in Accounting, 13(1), 221-251. https://doi.org/10.2308/bria.2001.13.1.221

Khand, K., Khand, S., & Pitafi, A. (2020). Job Satisfaction and Organizational Commitment in Banking Sector: A Comparative Study of Conventional and Islamic Banks. Sukkur IBA Journal of Management and Business, 7(1), 107-123. https://doi.org/10.30537/sijmb.v7i1.286

Konovsky, M. A., & Cropanzano, R. (1991). Perceived fairness of employee drug testing as a predictor of employee attitudes and job performance. Journal of Applied Psychology, 76(5), 698-707. https://doi.org/10.1037/0021-9010.76.5.698

Kord, B., & Tamini, B. K. (2012). A cross-cultural study of job satisfaction and organizational commitment of bank employees of Iran and India. Journal of Basic and Applied Scientific Research, 2(1), 605-609.

Lee, Y. K., Nam, J. H., Park, D. H., & Lee, K. A. (2006). What factors influence customer‐oriented prosocial behavior of customer‐contact employees? Journal of Services Marketing, 20(4), 251-264. https://doi.org/10.1108/08876040610674599

Linda, M. R., & Yonita, R. (2018). The Effect of Job Satisfaction and Perceived Organizational Support on Organizational Commitment of Banks’ Employees in Padang. Advances in Economics, Business and Management Research, 57, 216-222. https://doi.org/10.2991/piceeba-18.2018.50

Lok, P., & Crawford, J. (2004). The effect of organisational culture and leadership style on job satisfaction and organisational commitment: A cross‐national comparison. Journal of management development, 23(4), 321-338. https://doi.org/10.1108/02621710410529785

Luz, C. M. D. R., de Paula, S. L., & de Oliveira, L. M. B. (2018). Organizational commitment, job satisfaction and their possible influences on intent to turnover. Revista de Gestão, 25(1), 84-101. https://doi.org/10.1108/REGE-12-2017-008

Markovits, Y. (2012). The two ‘faces’ of continuance commitment: The moderating role of job satisfaction on the continuance commitment organizational citizenship behavior relationship. Intern. J. Acad. Organ. Behav. Manag, 3, 62-82.

Masum, A. K. M., Azad, M. A. K., & Beh, L. S. (2016). The role of human resource management practices in bank performance. Total Quality Management & Business Excellence, 27(3-4), 382-397. https://doi.org/10.1080/14783363.2014.1002762

Meyer, J. P., & Allen, N. J. (1997). Commitment in the workplace: Theory, research, and application. Sage publications. https://dx.doi.org/10.4135/9781452231556

Meyer, J. P., Paunonen, S. V., Gellatly, I. R., Goffin, R. D., & Jackson, D. N. (1989). Organizational commitment and job performance: It's the nature of the commitment that counts. Journal of applied Psychology, 74(1), 152. https://doi.org/10.1037/0021-9010.74.1.152

Nunnally, J. C. (1978). An overview of psychological measurement. Clinical diagnosis of mental disorders, 97-146. https://doi.org/10.1007/978-1-4684-2490-4_4

Paulin, M., Ferguson, R. J., & Bergeron, J. (2006). Service climate and organizational commitment: The importance of customer linkages. Journal of Business Research, 59(8), 906-915. https://doi.org/10.1016/j.jbusres.2006.03.004

Pepe, M. (2010). The impact of extrinsic motivational dissatisfiers on employee level of job satisfaction and commitment resulting in the intent to turnover. Journal of Business & Economics Research (JBER), 8(9), 99-108. https://doi.org/10.19030/jber.v8i9.762

Ramaswami, S. N., & Singh, J. (2003). Antecedents and consequences of merit pay fairness for industrial salespeople. Journal of Marketing, 67(4), 46-66. https://doi.org/10.1509/jmkg.67.4.46.18690

Ramay, I. M. (2012). Antecedents of organizational commitment of banking sector employees in Pakistan. Serbian Journal of Management, 7(1), 89-102. https://doi.org/10.5937/sjm1201089A

Raub, S., & Robert, C. (2013). Empowerment, organizational commitment, and voice behavior in the hospitality industry: Evidence from a multinational sample. Cornell Hospitality Quarterly, 54(2), 136-148. https://doi.org/10.1177/1938965512457240

Robbins, S., Judge, T. A., Millett, B., & Boyle, M. (2013). Organisational behaviour. Pearson Higher Education AU.

Salman, S.A., Fang, B.F., Fei, D.K., Peng, H., Qing, J.X., & Ping, J.W. (2021). Research on employee job satisfaction-taking the new generation of enterprise as an example. Philosophical Readings, XIII(4), 2700-2707. http://doi.org/10.5281/zenodo.5750437

Senthilkumar, D. (2020). Evaluate the Relationship Level of Job Satisfaction and Organizational Commitment with Public and Private Banking Sector Employees in Tamilnadu. The International journal of analytical and experimental modal analysis, XII(II), 1083-1093.

Sohail, M., & Ilyas, M. (2018). The impact of Job Satisfaction on aspects of Organizational Commitment (Affective, Continuance and Normative Commitment). Journal of Managerial Sciences, 12(3), 221-234.

Stewart, G. L. (1996). Reward structure as a moderator of the relationship between extraversion and sales performance. Journal of Applied Psychology, 81(6), 619. https://doi.org/10.1037/0021-9010.81.6.619

Suparjo. (2017). Job Satisfaction as an Antecedent of Organizational Commitment: A Systematic Review. International Journal of Civil Engineering and Technology (IJCIET), 8(9), 832–843.

Vandenberghe, C., & Tremblay, M. (2008). The role of pay satisfaction and organizational commitment in turnover intentions: A two-sample study. Journal of Business and Psychology, 22(3), 275-286. https://doi.org/10.1007/s10869-008-9063-3

Weiss, D. J., Dawis, R. V., & England, G. W. (1967). Manual for the Minnesota satisfaction questionnaire. Minnesota Studies in Vocational Rehabilitation, 22, 120.

Weng, Q., & McElroy, J. C. (2012). Organizational career growth, affective occupational commitment, and turnover intentions. Journal of Vocational Behavior, 80(2), 256-265. https://doi.org/10.1016/j.jvb.2012.01.014

Wu, C. M., & Chen, T. J. (2018). Collective psychological capital: Linking shared leadership, organizational commitment, and creativity. International Journal of Hospitality Management, 74(60), 75-84. https://doi.org/10.1016/j.ijhm.2018.02.003

Published

01-04-2022

How to Cite

Md. Faisal-E-Alam, & Asma Aktarun Nahar. (2022). Employee Satisfaction and Its’ Impact on Organizational Commitment: A Resource Based Approach. International Journal on Recent Trends in Business and Tourism (IJRTBT), 6(2), 1-16. https://doi.org/10.31674/ijrtbt.2022.v06i02.001

Metrics