1. Employee satisfaction and commitment Prepared for SHP 1313 students at UTM SKUDAI By: Siti Rokiah Siwok

2. JOB RELATED ATTITUDES & BEHAVIOURS
Assessing employee attitudes and behaviours 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.
Although job satisfaction and organizational commitment are two distinct construct, they closely related.

3. JOB RELATED ATTITUDES & BEHAVIOURS
Research shows highly positive correlation between job satisfaction and organizational commitment. ( Arnold and Feldman, 1982; O’Driscoll, Ilgen and Hildreth 1992; Stumpf and Hartman, in Riggio 2009)
Part of the reason of the highly positive correlation is due to the desire to avoid cognitive dissonance.

4. JOB RELATED ATTITUDES & BEHAVIOURS
Job satisfaction and organizational commitment are affected by many factors such as ( Riggio , 2009) :
Type and variety of work
Autonomy given in the job
Level of responsibility
The quality of social relationships at work
Compensation
Chances for promotion and growth/advancement in the organization

5. JOB RELATED ATTITUDES & BEHAVIOURS
There appears some consensus that:
Organizational values influence organizational commitment
Perceived equity rewards influence job satisfaction.
Organizational commitment becomes less if the chances of finding another job somewhere else is big.

6. Job Satisfaction
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.

7. Job 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).

8. Job 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.

9. Satisfaction & 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. .

10. Is it true that the “happy workers are productive workers?”

11. Job 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 .

12. Job Satisfaction and Job Performance
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.

14. Organizational Commitment
Organizational commitment consists both attitudes and behaviours.
Attitudes include:
acceptance of the organization’s goals and values,
Willingness to exert extra effort on behalf of the organization, and
A desire to remain with the organization.

15. Organizational commitment
Commitment related behaviours include organizational citizenship behaviours ( OCB)
OCB consists of efforts by employees to promote the organization, its image as well its goals (Riggio, 2009).
OCB are positively correlated with job satisfaction and organizational commitment ( Podsakoff, MacKenzie, Paine and Bachrach, in Riggio 2009)
Employees engaged more in OCBs are less likely to turnover compared to those not engage in OCBs ( Chen, Hui and Sego, 1998)

16. Organizational commitment and OCBs
Employees engaged more in OCBs are less likely to be absent ( Lee, Mitchell, Sablynski, Burton and Holtom, 2004 in Riggio 2009) and are more safety conscious ( Gyekye and Salminen, 2005 in Riggio 2009)
OCBs also have interactive effects:
Supervisors notice OCBs and tend to give more positive appraisals.

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

18. Affective 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.

19. Continuance 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.

20. Normative commitment:
The extent the employee feel obliged to the organization, and thus feels that s/he must remain with the organization.

21. What causes employees to be satisfied with and committed to their jobs?

22. Perspectives to the study of job satisfaction and commitment
Personality perspective
Environmental perspective
Interactional perspective

23. Personality Perspectives

24. Individual Differences in Employee Satisfaction
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

25. Individual Differences and Job Satisfaction
Personal predisposition to satisfied or dissatisfied may be one of the reasons of job satisfaction.
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.

26. Personality variables
Genetic predispositions
Core-self evaluations

27. Genetic Predisposition
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

28. Core 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).

29. Core Self-Evaluations
Personality variables are likely to be satisfied with their jobs ( and their lives):
Emotional stability
Self-esteem
Self efficacy
External /internal locus of control

30. Core Self-Evaluation Judge and Bono (2001) Meta-Analysis
Corrected Correlations With
Core-Evaluation Trait
Satisfaction
Performance
Self-esteem
.26
Self-efficacy
.45
.23
Internal locus of control
.32
.22
Emotional stability
.24
.19

31. Your Predisposition to be Satisfied: measures
Interest Inventory
Life Satisfaction Measure
Core Self-Evaluation
self-esteem
locus of control
affectivity
Job Satisfaction History

32. Others: Culture and intelligence etc
Culture plays great role
Intelligence…and if you are too “ smart”, you won’t be hired.
What about gender?,
Race?
Age?

33. What are the other antecedents of job satisfaction?

34. Environment and Interactional Perspectives

35. Satisfaction 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”?

36. Job 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.
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.

37. Job 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.

38. Other antecedents of Job satisfaction are:
Good Job-organization fit
Job facets
Fairness and equity
Opportunities for challenge and growth
Job rotation, job enlargement and job enlargement

39. Job Facets Are the tasks enjoyable?
Do the employees enjoy working with their supervisors and coworkers?
Are coworkers outwardly unhappy

40. Are Rewards And Resources Given Equitably?
Equity Theory
Components
inputs
outputs
input/output ratio
Possible Situations
underpayment
overpayment
equal payment

41. Organizational Justice
Distributive justice
Procedural justice
Interactional justice

42. Correlations with Perceptions of Justice Colquitt, Conlon, Wesson, Porter, and Ng (2001)
Outcome
Procedural
Justice
Distributive Justice
Job satisfaction
.62
.56
Organizational commitment
.57
.51
Trust
.61
Withdrawal
- .46
- .50
Performance
.36
.15
Negative employee reactions
- .31
- .30

43. Is There a Chance for Growth and Challenge?
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

44. Have Surprises Order lunch for everyone
Let everyone leave an hour early
__________________

45. Assign the Right Tasks to the Right People
People have different interests
People have different skills

46. Measuring Job Satisfaction and Commitment

47. Measuring Job Satisfaction
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.

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

51. Measuring Organizational Commitment
Allen and Meyer Scale ( 1990)
Organizational Commitment Questionnaire (OCQ)
Organizational Commitment Scale (OCS)
Custom-Designed Inventories

52. How do we increase job satisfaction?

53. Increasing Job Satisfaction
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

54. Hire “Satisfied Employees”
Test for Satisfaction Potential
Interest inventory
Core self-evaluation
Satisfaction history
Provide a realistic job preview
Look for person-organization fit

55. Eliminate Dissatisfiers
Interpersonal conflict
Peers
Supervisors
Customers
Inequity
Low pay
Job security
Poor working conditions
Work schedule issues

56. Hold Special Events and Friendly Competitions
Casual or spirit days
Increase socialization through parties, picnics, and socials
Hold fun contests
Celebrate birthdays and special occasions
Encourage humor

57. Express Appreciation and Provide Proper Feedback
Liberal use of praise and thanks
Positive feedback
Service and performance awards
_________________

58. Increase Opportunities to Socialize
Picnics
Lunches
_______________

59. Hold Special Events and Friendly Competitions
Casual days
Company logo day
________________

60. Increase Humor Bulletin boards with humor
Attach cartoons to boring memos
________________

61. Assign the Right Tasks to the Right People
People have different interests
People have different skills

62. Consequences of Satisfaction/Dissatisfaction and Negative Work Attitudes
Absenteeism
Turnover
Counterproductive Behaviours
Aimed at individuals
Aimed at the organizations

63. Absenteeism

64. Year
Cost of Absenteeism
U. S. Absenteeism Rate
CCH Survey
BNA Survey
2007
2.30
2006
2.50
2005
$660
2004
$610
2.40
1.40
2003
$645
1.90
1.60
2002
$789
2.10
2001
$755
2.20
1.70
2000
1998
$757
3.25
1996
$603
2.80

65. International Differences – Nutreco (2000)
Country
Absenteeism Rate (%)
Canada
1.6
Ireland
1.9
Poland
2.3
Chile
2.7
United Kingdom
3.2
Spain
3.8
France
4.0
Belgium
6.3
Norway
7.2
Netherlands
7.8

66. Reason for Missing Work (CCH Survey)
Year
Illness
Stress
Personal Needs
Family Issues
Sense of Entitlement
2007 34 13 18 22
2006 35 12 24 11
2005 21 14
2004 38 23 10
2003 36
2002 33
2000 40 5 20
1998 16 19
1996 28 26 15

67. Actual Employee Excuses for Missing Work
I was sprayed by a skunk.
I tripped over my dog and was knocked unconscious.
My bus broke down and was held up by robbers.
I was arrested as a result of mistaken identity.
I forgot to come back to work after lunch.
I couldn’t find my shoes.
I hurt myself bowling.
I was spit on by a venomous snake.
I totaled my wife’s jeep in a collision with a cow.
A hitman was looking for me.
My curlers burned my hair and I had to go to the hairdresser
I eloped.
My cat unplugged my alarm clock.
I had to be there for my husband’s grand jury trial.
I had to ship my grandmother’s bones to India. (note: she had passed away 20 years ago)
Source: 2004 CareerBuilder.Com Survey

68. Why Employees Are Absent
No consequences for attending or missing work
Illness and personal problems
Individual differences
Unique events

69. Increasing Attendance by Having Consequences for Missing Work
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

70. Increasing Attendance by Reducing Employee Stress
Overload
Conflict
peers
supervisors
Boredom
Safety Issues

71. Increasing Attendance by Reducing Illness

72. Types of Wellness Programs SHRM 2008 Survey
% Offering
Some form of wellness program 58
24-hour nurse line 50
Health screening programs 41
Smoking cessation program 40
Weight loss program 31
On-site fitness center 21
Stress reduction programs 14
On-site medical care 12

73. Effect of Absence Control Methods Meta-Analysis Results
# of Studies
Effect Size
Well pay 4
.86
Flextime 10
.59
Compressed work schedules 5
.44
Wellness programs
.37
Feedback 3
Discipline 9
.36
Recognition 6
.30
Financial incentives 7
.17
Games
.08

74. CCH Absence Control Surveys
Absence Control Method
Percent Using
Effectiveness Rating
2003
2005
2007
Disciplinary action 96 90 89
3.3
3.4
Performance appraisal 84 79 82
2.9
3.0
Verification of illness 75 76 74
3.2
Paid leave bank 59 67 60
3.6
3.5
Personal recognition 62 66 57
2.5
2.6
No-fault systems 63
Bonus programs 52 51
3.1
Buy-back programs
548 58 53

75. Turnover

76. Why Do Employees Leave? Unavoidable Reasons Advancement Unmet Needs
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

77. Why Are Your Employees Leaving?
Exit Interviews
Attitude Surveys
Salary Surveys
pay
benefits
time off

78. The Cost of Turnover Visible Costs Per Hire
Advertising charges
Agency fees
Referral bonuses
Staff time & benefits
processing applications
interviewing
Overhead
Travel Costs
staff
applicants
Relocation Costs
Miscellaneous Costs

79. The Cost of Turnover Hidden Costs
Loss of Productivity
employee leaving
other employees
vacant position
new employee (1 year)
Inefficiency
Overtime
Training Costs

80. Estimating the Cost of Turnover
Industry Norms
rate is 1.4% per month
cost is 1.5 times salary
Custom Statistics

81. Financial Savings From Turnover Reduction
Last Year
5 employees leave each month (60 per year)
Average salary is $20,000
Cost of turnover is * $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 * $20,000 * 1.5 = $1,440,000
$360,000 saved through reduced turnover

82. Reducing Turnover Compensation Issues
Match the market
Use job evaluation to ensure internal equity
Offer retention/tenure bonuses (stay for pay)

83. Increasing Salary and Benefits Will 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

84. Reducing Turnover Selection Issues
Conduct realistic job previews
Look for person-organization fit
Study predictors of people who leave

85. Reducing Turnover Organizational Issues
Provide training
Show appreciation
Mediate conflicts
Meet employee needs
safety
social
growth

86. Strategic Use of Benefits to Attract and Retain Applicants
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

87. satisfaction, commitment, absenteeism, turnover and programmes that can be implemented : additional notes

88. Job Satisfaction, Organizational Commitment, and Employee Attendance
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.

89. Job Satisfaction, Organizational Commitment, and Employee Attendance
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.

90. Job Satisfaction, Organizational Commitment, and Employee Attendance
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).

91. Increasing Job Satisfaction and Organizational Commitment
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.

92. Increasing Job Satisfaction and Organizational Commitment
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.

93. Increasing Job Satisfaction and Organizational Commitment
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.

94. Increasing Job Satisfaction and Organizational Commitment
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).

95. Positive Employee Attitudes and Behaviors
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).

97. Positive Employee Attitudes and Behaviors
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).

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