1. E MPLOYEE SATISFACTION AND COMMITMENT P REPARED FOR SHP 1313 STUDENTS AT UTM SKUDAI B Y : S ITI R OKIAH S IWOK SRSIWWOK @ GMAIL. COM

2. JOB RELATED ATTITUDES Assessing employee attitudes 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.

3. J OB S ATISFACTION 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.

4. J OB 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 ).

5. J OB 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.

6. S ATISFACTION & 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..

7. I S IT TRUE THAT THE “ HAPPY WORKERS ARE PRODUCTIVE WORKERS ?”

8. J OB 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.

9. J OB S ATISFACTION AND J OB P ERFORMANCE 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.

11. O RGANIZATIONAL C OMMITMENT Organizational commitment consists of a worker’s feelings and attitudes about the entire work organization.

12. O RGANIZATIONAL COMMITMENT There are three motivational facets to organizational commitment ( Meyer and Allen, 1997): Affective commitment Continuance commitment Normative commitment ( Read Aamodt, 2010 for details )

13. A FFECTIVE 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.

14. C ONTINUANCE 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.

15. N ORMATIVE C OMMITMENT Normative commitment : The extent the employee feel obliged to the organization, and thus feels that s/he must remain with the organization.

16. W HAT CAUSES EMPLOYEES TO BE SATISFIED WITH AND COMMITTED TO THEIR JOBS ?

17. P ERSPECTIVES TO THE STUDY OF JOB SATISFACTION AND COMMITMENT Personality perspective Environmental perspective Interactional perspective

18. P ERSONALITY P ERSPECTIVES

19. 19 I NDIVIDUAL D IFFERENCES IN E MPLOYEE S ATISFACTION Important Findings Consistency across jobs Consistency across time Relationship between life satisfaction and job satisfaction Due to: Genetic predispositions Core self-evaluations self-esteem self-efficacy internal locus of control optimism/positive affectivity

20. I NDIVIDUAL D IFFERENCES AND J OB S ATISFACTION Personal predisposition to satisfied or dissatisfied may be one of the reasons of job satisfaction. Individual difference theory 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. Individual difference theory

21. P ERSONALITY VARIABLES Genetic predispositions Core-self evaluations

22. G ENETIC P REDISPOSITION 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

23. C ORE 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).

24. C ORE S ELF -E VALUATIONS Personality variables are likely to be satisfied with their jobs ( and their lives ): 1. Emotional stability 2. Self-esteem 3. Self efficacy 4. External /internal locus of control

25. 25 C ORE S ELF -E VALUATION J UDGE AND B ONO (2001) M ETA -A NALYSIS Corrected Correlations With Core-Evaluation TraitSatisfactionPerformance Self-esteem.26 Self-efficacy.45.23 Internal locus of control.32.22 Emotional stability.24.19 Source: Aamodt Slides on Employee Satisfaction and Commitment

26. 26 Y OUR P REDISPOSITION TO BE S ATISFIED : MEASURES Interest Inventory Life Satisfaction Measure Core Self-Evaluation self-esteem locus of control affectivity Job Satisfaction History

27. O THERS : C ULTURE AND INTELLIGENCE ETC CultureCulture plays great role Intelligence…and if you are too “ smart”, you won’t be hired. What about gender?, Race? Age?

28. What are the other antecedents of job satisfaction?

29. E NVIRONMENT AND I NTERACTIONAL P ERSPECTIVES

30. S ATISFACTION 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”?

31. J OB 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. 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.

32. J OB 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.

33. O THER ANTECEDENTS OF J OB SATISFACTION ARE : Good Job-organization fit Job facets Fairness and equityequity Opportunities for challenge and growth Job rotation, job enlargement and job enlargement

34. 34 J OB F ACETS Are the tasks enjoyable? Do the employees enjoy working with their supervisors and coworkers? Are coworkers outwardly unhappy

35. 35 A RE R EWARDS A ND R ESOURCES G IVEN E QUITABLY ? Equity Theory Components inputs outputs input/output ratio Possible Situations underpayment overpayment equal payment

36. 36 O RGANIZATIONAL J USTICE Distributive justice Procedural justice Interactional justice

37. 37 C ORRELATIONS WITH P ERCEPTIONS OF J USTICE C OLQUITT, C ONLON, W ESSON, P ORTER, AND N G (2001) OutcomeProcedural Justice Distributive Justice Job satisfaction.62.56 Organizational commitment.57.51 Trust.61.51 Withdrawal-.46-.50 Performance.36.15 Negative employee reactions-.31-.30

38. 38 I S T HERE A C HANCE FOR G ROWTH AND C HALLENGE ? Enriched jobs Variety of skills needed Employee completes entire task Tasks have meaning Employee has input/control employee receives feedback Methods Job rotation Job enlargement Job enrichment

39. 39 H AVE S URPRISES Order lunch for everyone Let everyone leave an hour early __________________

40. 40 A SSIGN THE R IGHT T ASKS TO THE R IGHT P EOPLE People have different interests People have different skills

41. M EASURING J OB S ATISFACTION AND C OMMITMENT

42. M EASURING J OB S ATISFACTION 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.

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

46. M EASURING O RGANIZATIONAL C OMMITMENT Allen and Meyer Scale ( 1990) Organizational Commitment Questionnaire (OCQ) (OCQ) Organizational Commitment Scale (OCS) Custom-Designed Inventories

47. H OW DO WE INCREASE JOB SATISFACTION ?

48. 48 I NCREASING J OB S ATISFACTION 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

49. 49 H IRE “S ATISFIED E MPLOYEES ” Test for Satisfaction Potential Interest inventory Core self-evaluation Satisfaction history Provide a realistic job preview Look for person-organization fit

50. 50 E LIMINATE D ISSATISFIERS Interpersonal conflict Peers Supervisors Customers Inequity Low pay Job security Poor working conditions Work schedule issues

51. 51 H OLD S PECIAL E VENTS AND F RIENDLY C OMPETITIONS Casual or spirit days Increase socialization through parties, picnics, and socials Hold fun contests Celebrate birthdays and special occasions Encourage humor

52. 52 E XPRESS A PPRECIATION AND P ROVIDE P ROPER F EEDBACK Liberal use of praise and thanks Positive feedback Service and performance awards _________________

53. 53 I NCREASE O PPORTUNITIES TO S OCIALIZE Picnics Lunches _______________

54. 54 H OLD S PECIAL E VENTS AND F RIENDLY C OMPETITIONS Casual days Company logo day ________________

55. 55 I NCREASE H UMOR Bulletin boards with humor Attach cartoons to boring memos ________________

56. 56 A SSIGN THE R IGHT T ASKS TO THE R IGHT P EOPLE People have different interests People have different skills

57. C ONSEQUENCES OF S ATISFACTION /D ISSATISFACTION AND N EGATIVE W ORK A TTITUDES Absenteeism Turnover Counterproductive Behaviours Aimed at individuals Aimed at the organizations

58. A BSENTEEISM

59. 59 W HY E MPLOYEES A RE A BSENT No consequences for attending or missing work Illness and personal problems Individual differences Unique events

60. 60 I NCREASING A TTENDANCE BY H AVING C ONSEQUENCES FOR M ISSING W ORK 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

61. 61 I NCREASING A TTENDANCE BY R EDUCING E MPLOYEE S TRESS Overload Conflict peers supervisors Boredom Safety Issues

62. 62 I NCREASING A TTENDANCE BY R EDUCING I LLNESS

63. 63 T YPES OF W ELLNESS P ROGRAMS SHRM 2008 S URVEY Wellness Program% Offering Some form of wellness program58 24-hour nurse line50 Health screening programs41 Smoking cessation program40 Weight loss program31 On-site fitness center21 Stress reduction programs14 On-site medical care12

64. 64 E FFECT OF A BSENCE C ONTROL M ETHODS M ETA -A NALYSIS R ESULTS Absence Control Method# of StudiesEffect Size Well pay4.86 Flextime10.59 Compressed work schedules5.44 Wellness programs10.37 Feedback3.37 Discipline9.36 Recognition6.30 Financial incentives7.17 Games6.08

65. 65 CCH A BSENCE C ONTROL S URVEYS Absence Control Method Percent UsingEffectiveness Rating 200320052007200320052007 Disciplinary action 9690893.33.4 Performance appraisal 8479822.93.02.9 Verification of illness 7576742.93.2 Paid leave bank 5967603.63.53.6 Personal recognition 6266572.52.6 No-fault systems 6263593.0 2.9 Bonus programs 5257513.13.3 Buy-back programs 54858533.33.53.4

66. 66 TURNOVER

67. 67 W HY D O E MPLOYEES L EAVE ? 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

68. 68 W HY A RE Y OUR E MPLOYEES L EAVING ? Exit Interviews Attitude Surveys Salary Surveys pay benefits time off

69. 69 T HE C OST OF T URNOVER V ISIBLE C OSTS P ER H IRE Advertising charges Agency fees Referral bonuses Staff time & benefits processing applications interviewing Overhead Travel Costs staff applicants Relocation Costs Miscellaneous Costs

70. 70 T HE C OST OF T URNOVER H IDDEN C OSTS Loss of Productivity employee leaving other employees vacant position new employee (1 year) Inefficiency Overtime Training Costs

71. 71 E STIMATING THE C OST OF T URNOVER Industry Norms rate is 1.4% per month cost is 1.5 times salary Custom Statistics www.advantagehiring.com/calculators/calc_turnover.sht ml www.uwex.edu/ces/cced/publicat/turn.html

72. 72 F INANCIAL S AVINGS F ROM T URNOVER R EDUCTION 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

73. 73 R EDUCING T URNOVER C OMPENSATION I SSUES Match the market Use job evaluation to ensure internal equity Offer retention/tenure bonuses (stay for pay)

74. 74 I NCREASING S ALARY AND B ENEFITS W ILL 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

75. 75 R EDUCING T URNOVER S ELECTION I SSUES Conduct realistic job previews Look for person-organization fit Study predictors of people who leave

76. 76 R EDUCING T URNOVER O RGANIZATIONAL I SSUES Provide training Show appreciation Mediate conflicts Meet employee needs safety social growth

77. 77 S TRATEGIC U SE OF B ENEFITS TO A TTRACT AND R ETAIN A PPLICANTS 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

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

79. J OB S ATISFACTION, O RGANIZATIONAL C OMMITMENT, AND E MPLOYEE A TTENDANCE 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.

80. J OB S ATISFACTION, O RGANIZATIONAL C OMMITMENT, AND E MPLOYEE A TTENDANCE 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.

81. J OB S ATISFACTION, O RGANIZATIONAL C OMMITMENT, AND E MPLOYEE A TTENDANCE 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).

82. I NCREASING J OB S ATISFACTION AND O RGANIZATIONAL C OMMITMENT 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.

83. I NCREASING J OB S ATISFACTION AND O RGANIZATIONAL C OMMITMENT 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.

84. I NCREASING J OB S ATISFACTION AND O RGANIZATIONAL C OMMITMENT 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.

85. I NCREASING J OB S ATISFACTION AND O RGANIZATIONAL C OMMITMENT 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).

86. P OSITIVE E MPLOYEE A TTITUDES AND B EHAVIORS 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).

88. P OSITIVE E MPLOYEE A TTITUDES AND B EHAVIORS 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).

89. R EFERENCES Aamodt, M.G (2007). Industrial and organizational psychology. An applied approach (5 th ed) Belmont, CA: Thomson Aamodt, M.G (2010). Industrial and organizational psychology. An applied approach (6 th ed) Belmont, CA: Wadsworth Riggio, R. E. ( 2009). Introduction to Industrial/Organizational Psychology (5 th ed). New Jersey: Pearson/Prentice Hall.