This study examines the structure of OCB and its relation to Organizational commitment OC, Job satisfaction relative to expectations JS, Job demands and Decision latitude JD, Person-Org
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TABLE OF CONTENTS
ABSTRACT 1
ACKNOWLEDGEMENT 2
LIST OF TABLES 3
LIST OF CONFIGURES 4
ABBREVIATION 4
CHAPTER I: INTRODUCTION 5
PART A – RESEARCH INTRODUCTION 5
1.1 Research Problem Statement: 5
1.2 Significance of Research 6
1.3 Scope of the Research 7
1.4 Purpose of the Research 7
1.5 Research Methodology 7
1.5.1 Primary data 7
1.5.2 Secondary data 8
1.6 The Structure of the Research 8
PART B – OVER VIEW OF THE VIB 9
Product and Brand Name 10
Business Objective 12
Human Resources Management 14
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CHAPTER II: LITERATURE REVIEW AND HYPOTHESES 17
2.1 Organizational Citizenship Behaviors (OCB) 17
2.2 Organizational commitment (OC) 22
2.3 Job demands and Decision latitude (JD) 24
2.4 Person-Organization Fit (POF) 26
2.5 Job Satisfaction relative to expectations (JS) 27
2.6 The relationship between OC and OCB 28
2.7 The relationship of JD and OCB 29
2.8 The relationship POF and OCB 30
2.9 The Relationship of JS and OCB 32
CHAPTER III: RESEARCH METHODOLOGY 34
3.1 Research Model: 34
3.2 Survey Process 35
3.2.1 Primary data 35
3.2.2 Secondary data 36
3.2.3 Survey process 36
3.3 Measure of each Construct 38
3.3.1 Organizational Citizenship Behaviors 38
3.3.2 Person-Organization Fit 39
3.3.3 Job demands and Decision latitude 40
3.3.4 Organizational Commitment 41
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3.3.5 Job satisfaction relative to expectations 42
CHAPTER IV: ANALYSIS AND RESULTS 43
4.1 Overview of respondents’ information 43
4.2 Reliability Statistics 46
4.3 Descriptive Statistics 48
4.4 Hypotheses Testing Results: 49
4.4.1 Hypothesis proposed (H1) 50
4.4.2 Hypothesis proposed (H2) 51
4.4.3 Hypothesis proposed (H3) 51
4.4.4 Hypothesis proposed (H4) 51
5.1 Summary of the Results: 53
5.2 Discussion and Recommendation 54
5.3 Limitation and Future Research 55
REFERENCES 56
APPENDIX 1 - QUESTIONNAIRES 61
APPENDIX II - PRESENTATION SLIDES 67
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ABSTRACT
Organization citizenship behaviors (OCB) are individual and voluntary behaviors that are not stated directly by formal system They make increase in effectiveness and efficiency of organizational performance
The quality of human resource, one of the basic and important elements, is indispensable for every business in general and banks in particular during the existence and development After stage spike when the number of banks in Vietnam was established new and expanded operations phase from 2000 to 2012, due to the impact of the financial crisis and restructuring, system banks have tended to transform descending towards decreasing the quantity and increasing the quality But besides the formed standards for the employees, the other factors that is not stated that affecting this, it is called the Organization citizenship behaviors
This study examines the structure of OCB and its relation to Organizational
commitment (OC), Job satisfaction relative to expectations (JS), Job demands and
Decision latitude (JD), Person-Organization Fit (POF) at VIB Data was collected through the use of standardized questionnaires Two-hundred and ninety seven employees of VIB filled out standardized questionnaires The collected data were computed and analyzed through factor analysis, Cronbach’s alpha, descriptive statistics, multiple regression analysis Based on results analysis, researcher makes some suggestions to the managers of VIB to improve VIB’s performance
Key words: Organizational citizenship behaviors, Organizational commitment, Job
satisfaction relative to expectations, Job demands and decision latitude,
Person-Organization Fit
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ACKNOWLEDGEMENT
I would like to express my deepest gratitude to my research Instructor, Professor Khai Nguyen The for his intensive support, valuable suggestions, guidance and encouragement during the course of my study
I would like to express my sincere gratitude to all great lecturers at the MBA program for an enjoyable learning experience that has increased my knowledge
I would like to specially express my thanks to all of my classmates, my friends for their support and encouragement
I would like to express my thanks to all my colleagues at VIB who are willing to join and complete my survey in this work in valuable way or another
Finally, I heartily dedicate this study to my beloved parents and my wife, who have always sacrificed to encourage and support me during my study
August, 2015
VU DUC THINH
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LIST OF TABLES
Table 4.1: Result of Survey 43
Table 4.2: Sample Description 45
Table 4.3: Reliability Test for employees of VIB - OC 46
Table 4.4: Reliability Test for employees of VIB - JD 47
Table 4.5: Reliability Test for employees of VIB - POF 47
Table 4.6: Reliability Test for employees of VIB - JS 47
Table 4.7: Reliability Test for employees of VIB - OCB 47
Table 4.8: Descriptive Statistics 48
Table 4.9: Variables Entered/Removeda 49
Table 4.10: Model Summary 50
Table 4.11: Coefficientsa 50
Table 4.12: hypothesis result 52
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LIST OF CONFIGURES
Figure 1.1 : Human resource manager system of VIB 13
Figure 1.2 : Personel Structure (Source : VIB – Annual Report 2014) 16
Figure 3.1 : the proposed research model of the factors affect the Organizational Citizenship Behaviors of the employees at VIB 34
ABBREVIATION
OCB Organizational Citizenship Behavior
OC Organizational commitment
JS Job satisfaction relative to expectations
JD Job demands and Decision latitude
POF Person-Organization Fit
VIB The Vietnam International Commercial Joint Stock Bank
SPSS Statistical Package for Social Science
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CHAPTER I: INTRODUCTION
The first chapter will introduce basic of the research : Research Problem Statement, Purpose of the Research, Scope of the Research, Significance of the Research, Research Methodology, and Structure of this Research The final of the chapter will supply briefly information of Vietnam International Commercial Joint Stock Bank (VIB)
PART A – RESEARCH INTRODUCTION
1.1 Research Problem Statement:
A bank is a financial institution offering deposits subject to withdrawal on demand and providing loans to the retails or corporate sector The role of bank is more and more important in the world as well as Vietnam nowadays and there are a lot of students want to develop his knowledge in banking services, including the Organizational Citizenship Behavior in banking
Organization citizenship behaviors (OCB) are individual and voluntary behaviors that are not stated directly by formal system The reason of researching OCB is that every organization, in order to sustain competition and long-term profitability, businesses, devotes themselves not only to attracting new customers but also to retaining existing customers (Yang, 2005) Several studies have demonstrated that OCB makes increase in effectiveness and efficiency of organizational performance Therefore, improving the employees’ OCB is a critical issue for business managers
in today’s competitive global marketplace) Ensuring excellent service quality and high customer satisfaction is an important issue and a challenge for the service industry (Hung et al., 2003)
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However, until now most of local commercial banks in Vietnam do not take into account the importance of OCB The evidences are that there are very rare of researches and journals about the relationship between OCB and customer satisfaction and long term development of the company especially of the bank Furthermore, with the increasing shortage of talented workers, labor turnover in Vietnamese banking services has now become a major issue According to Dutta et
al (2007), the turnover rate in banking service is significantly high, 20%-30%
professionals Therefore, the research lays its focus on the topic “The factors affecting the Organizational Citizenship Behavior in Vietnam International Commercial Joint Stock Bank”
There is a tendency of human resource in banking at the present is moving on the bank stability and tend to thrive in the future And The Vietnam International Commercial Joint Stock Bank (VIB) is one of them with staff increasing from the other banks and even from former employees have left the VIB also returned
With the strategy of sustained growth and enhanced safety, VIB is also the only bank to be held credit ratings international Moody's upgrades, becoming 1 of 2 bank index financial strength highest of 9 major banks in Vietnam is Moody's assessment
of the past year This is also one of the first 10 bank was chosen by The State Bank
of Vietnam to pilot Basel II standards in bank management The researcher make a question: ―What make the bank is better?‖ and in the answer of the researcher, one
of the factors is the increasing of employees’ Organizational Citizenship Behavior
1.2 Significance of Research
This research is conducted with the aim to have an understanding of the factors influencing Organizational Citizenship Behaviors at VIB The result of the Research will give the data for the Board of Director and Human Resources Department make decision to let VIB employees more effective
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1.3 Scope of the Research
Due to knowledge and time limitations this dissertation can only focus on the
employees’ Organizational Citizenship Behaviors in VIB
1.4 Purpose of the Research
The purpose of this Research is to examine the relationships between Organizational Citizenship Behaviors with Job satisfaction relative to expectations, Organizational commitment, Job demands and Decision latitude and Person - Organization fit of employees of VIB
The research will answer these questions:
1 What are the relevant theories of Organizational Citizenship Behaviors in working environment?
2 What is the current status of employees’ satisfaction in VIB?
3 What are the recommendations to improve the employees’ Organizational Citizenship Behaviors in VIB?
1.5 Research Methodology
The research has conducted qualitative and quantitative approaches on both of primary and secondary data
1.5.1 Primary data
The primary data used in the research is a questionnaires survey The questionnaires
is provided to the author’s colleagues who currently work at VIB The author believed the reliable of answer is sufficient due to the following reasons:
Each question was designed to focus on single issues The question format is clear and simple;
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The sample size is 380 employees in different departments in VIB to make sure the answer of each candidate are not affected by others
Before performing the survey, the author designed cross-check questions with a group of voluntary people to make sure the questionnaires are very clear to understand
Once the data is collected, there are several techniques can be applied to analyze the data The most common technique is descriptive data analysis such as charts, tables and mean value The author also applies the inferential data analysis that uses information obtained from a small group to make judgment about larger group In the research, the sample interview may not reflect the sense of VIB bank system By conducting judgment-based approach such as the real situation of human resource management, the author can assess the relationship between the sample answer and the whole system
1.5.2 Secondary data
The secondary data is documents related to Organizational Citizenship Behaviors in banking industry and other published materials that are taken from Internet such as websites, e-books and other in libraries or newspapers All these sources are authentic and will be listed out in the reference section
1.6 The Structure of the Research
The research contains five chapters as described below:
Chapter I - Introduction
This chapter explains the reason of choosing the title, and briefly explains the problem and objectives of the research The scope and data collection methods of the research are also presented in this part
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Chapter II - Literature reviews and Hypothesis
This chapter presents the relevant concepts used as foundation for analysis, suggestions and solutions in this research It includes the relationship of Organizational Citizenship Behaviors and Job satisfaction relative to expectations, Organizational commitment, Job demands and Decision latitude and Person - Organization fit From that, the author give the hypothesis
Chapter III - Research methodology
This chapter is set to provide the research model, the methodology used and how the author processes the data received from survey
Chapter IV - Research analysis and results
This part defines and analyzes the table of questionnaires achieved from survey with employees at VIB
Chapter V: Discussion and conclusions
This part recommends the most suitable solutions and conclusion conducted from analyses from previous chapters
PART B – OVER VIEW OF THE VIB
Vietnam International Commercial Joint Stock Bank, abbreviated Vietnam International Bank (VIB), was founded on 18th September 1996 After 19 years of operation, VIB has become one of the leading commercial joint stock banks in Vietnam, with total assets of nearly VND 80,000 billion The bank’s charter capital
is now VND 4,250 billion while its shareholders’ equity is nearly VND 8,200 billion Currently, VIB has approximate 4,000 people working at nearly 160 branches and transaction offices in 27 key provinces/ cities across the country
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2010 marked a significant development milestone of VIB by a strategic partnership with the Commonwealth Bank of Australia (CBA) – the Number One retail bank in Australia and the world’s leading bank with over 100 years of experience This strategic partnership facilitates VIB’s improvement in capital, technology, and risk management… in order to successfully implement the long-term plans in the bank’s business strategy and especially to improve the customer service quality in line with international standards
Being one of the pioneers in reforming business activities, VIB always takes its customers as the focus and its service quality and innovative solutions as the business motto, with the determination ―to be the most innovative and customer-centric bank of Vietnam‖ Since its foundation, one of the missions defined by the bank’s leaders is to be ―excellent in providing innovative solutions to satisfy customers’ maximum needs‖ Therefore, VIB has been enhancing its efficiency in the use of capital and management capacity and continuing to focus on the development of retail banking networks and new products through diversifying distribution channels in order to provide financial solution packages to focused customer groups, and simultaneously improving the service quality to increasingly better serve customers
Product and Brand Name
Product:
The principal activities of the Bank are to mobilise and receive short, medium and
long-term deposit funds from organizations and individuals; to lend on a short,
medium and long-term basis up to the nature and ability of the Bank’s capital
resources; to conduct settlement and cash services and other banking services as approved by the SBV; to conduct investments in associates, joint-ventures and other
companies; investments in bonds and deal in foreign exchange in accordance with applicable regulations
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Brand name:
Brand positioning statement
VIB is one of Vietnam’s top joint stock commercial banks that always put its customers’ needs first Professional staff build lasting relationships by listening to customers and working with them in a thoughtful, open and collaborative manner Our deep understanding of local, needs, global perspective and commitment to simplifying the banking experience enable us to help our customers plan their future, achieve their dreams and focus on the more important things in life
VIB’s logo
Our logo is formed by 3 letter V’s representing the connections, resources and relationships we offer our customers and partners In the center of the three V’s, there is a heart image indicating that customers are always in the heart of VIB Emotionally, the three V’s forms a human shape with welcoming arms, symbolizing the human spirit, and expressing the concept "Human Connection" in VIB’s brand The word ―VIB‖ is designed with a curved, slender shape, and the stylized ―V represents a smile to welcome our customers The blue and three shades of warm, energetic orange colour creates an open space, bringing the sense of an open, easily accessible, friendly and cooperative environment
Brand personality attributes:
Genuine: We earn our customers' respect by acting with integrity, professionalism and sincerity
Nurturing: We take a long term view and help our customers grow and succeed
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Modern: We seek and leverage on the best banking practices and advanced technologies
Performance oriented: We are committed to going the extra mile and delivering results
Intuitive: We stay in tune with the changing needs of our customers and adapt accordingly with new products and services
Business Objective
Vision:
To be the most innovative and customer-centric bank of Vietnam
Mission:
For customers: To excel in providing innovative, customer-centric solutions
to satisfy the needs of our customers
For employees: To cultivate a high performance culture, entrepreneurship and openness in our work environment
For shareholders: To provide sustainable and attractive returns to our shareholders
For the community: To support community development
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Rewards
Fastest growing Retail Bank Vietnam 2015 and Best Banking Deal Vietnam
2015 – Global Banking and Finance Review
Leading SME Trade Bank – Asian Development bank (ADB)
Excellent Brand of Vietnam 2014 – Vietnam Economic Times and Trade Promotion Agency (Ministry of Industry and Trade)
Organization Structure
Figure 1.1 : Human resource manager system of VIB
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Human Resources Management
At the end of 2012, VIB initiated the transition from a HRM model by geographic area to a centralized system headquartered at Head office, in which all HR function are managed by Head office HR staff A HR partnership model for business units was also introduced
After two years of implementation, the productivity of HR employees have been markedly improved: total HR staff was gradually trimmed down from 93 (2012) to
65 2013) and 40 (2014), increasing the average number of staff portfolio managed
by on HR staff by 31% (from 65 in 2012 and 85 in 2014) HR staff receive frequent training, and are provided ample opportunities for occupational development through various HRM tasks The quality of services provided to in-house clients have therefore continually improved: faster, more consistent, and suited to the realities of each Divisions
VIB has identified staff fraud and corruption as a serious operational risk In addition to financial losses, staff fraud is almost certainly creating significant brand and reputation damage for VIB
This situation calls for a comprehensive and BOD-sponsored anti-fraud and corruption program Therefore, the motivation of this project is to set up the foundation to fight fraud and corruption within VIB, reducing our losses to fraud and corruption, improving the working culture of VIB, and developing our brand on honesty and integrity
VIB develops the foundation for preventing, detecting, investigating and
disciplining cases of Fraud and Corruption, including:
- Anti-Fraud and Corruption Policy
- Internal Fraud and Group Investigation Unit
- Gifts and Entertainment Policy
- Whistleblower Policy and Process
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- Internal Investigation Process
- Discipline Policy and Process
- Training and Communications
- Fraud Risk Assessments of all business areas
Personnel structure
At the end of 2014, VIB has 3,436 employees (As Annual Report 2014)
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Figure 1.2 : Personnel Structure (Source : VIB – Annual Report 2014)
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CHAPTER II: LITERATURE REVIEW AND HYPOTHESES
Chapter two presents the definition of OCB of employee and overview of the theoretical basis related to the research problem Researchers selected the following variables : Job satisfaction related to expectations, Organizational commitment, Job demands and decision latitude, and Person-Organization Fit affect OCB The basis
of these Theories proposed the relationship and hypotheses for research
2.1 Organizational Citizenship Behaviors (OCB)
During the stay of an employee in the organization, there are certain behaviors which are expected from him and are abiding on him by the rules and regulations of the organization However employees at times exhibit certain behaviors that go beyond the call of the duty Such behavior is called Organizational Citizenship Behavior (OCB) OCB is also known as extra role behavior It is the behavior over and above the normal course of duty and beyond the arena of legislations/ rules/ regulations OCB refers to behavior that is not formally requested or directly rewarded but can be functional to the operations of an organization (Smith, Organ,
& Near, 1983) Organizations cannot survive or prosper without their members behaving as good citizens by engaging in all sorts of positive behaviors
Researchers (see Bateman & Organ, 1983; Organ, 1983; 1990; 1997; Organ & Lingl, 1995; Organ & Moorman, 1993; Penner, Midili, & Kegelmeyer, 1997; Tang
& Ibrahim, 1998) have found that employee satisfaction, organizational commitment, organizational justice, career development, age, tenure, personality, motivation, leadership and leadership behavior all impact and affect citizenship
behavior within an organization Jehad Mohammad et al Determining how OCB
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contributes indirectly to an organization through the organization’s social system has been of increasing interest to both scholars and managers This behavior provides the necessary flexibility to work through many unforeseen contingencies, and it helps employees in an organization to cope with stressful conditions through interdependence (Smith, Organ, & Near, 1983) The extant management literature suggests that OCB affects overall organizational effectiveness (Walz & Niehoff, 1996) and that managers often consider OCB when evaluating employee performance and determining promotions and pay increases (Podsakoff & MacKenzie, 1997) Thus, employees who engage in citizenship behavior are expected to have higher levels of job motivation and job satisfaction than employees who do not Furthermore, it is suggested that these higher levels of OCB may lead to increased productivity and, consequently, higher profitability
Organizational citizenship behavior (OCB) is the Latin root of ―Otix‖ means moral derived from Greek work ―Otos‖ that means personal characteristic or custom (Solomon, 1984, quoted by Sohrabi & Khanlari, 2009) The semantics and root of this word indicates its substantial relationship with the interpersonal characteristic, goodness of person, accurate social rules and moralities that leads the individual’s behavior On the other side, universal definition of moral includes a series of factors that make moral or unmoral judge on a phenomenon or person However, two persons who are called as moral, may have different ideas about financial punishment, persuasive behavior and discrimination and conduct differently (Schermerhorn, 1999)
The term of OCB derived from the need to encourage cooperation between organization members in order to help organization run more smoothly (Borman,
2004) According to Kohen and Vigoda (2000), some of the advantages of
Organizational Citizenship Behaviors are:
Improvement of productivity of management and employees
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More efficiency in consumption and allocation of resources
Lowering maintenance costs
Improvement of organization ability to employ high quality forces
OCB increases productivity of employees and work groups, communications, cooperation and helping between employees, encourages teamwork, reduces mistakes ratio, increases participation and involvement of employees in organizational issues and provides suitable organizational atmosphere (Jahanshahi
et al., 2011a) OCB increases performance quality of employees by influencing intra-organizational factors such as organizational atmosphere, morale improvement, organizational commitment, job satisfaction, reduction of turnover intents and reduction of absence and detrimental job behaviors and by influencing extra-organizational factors such as job satisfaction, service quality and customer loyalty (Castro et al., 2004)
Organ (1988) identified five OCB dimensions, namely: altruism, conscientiousness, sportsmanship, courtesy and civic virtue
Altruism in simple words means helping or helpfulness (Organ, 1997:
85-97) Altruism means helping other members of the organization in their tasks For e.g voluntarily helping new employees, helping co-workers who are overloaded, assisting workers who were absent, guiding employees to accomplish difficult tasks Podsakoff et al (2000) has demonstrated that altruism was significantly related to performance evaluations and correspondingly, positive affectivity
Conscientiousness is a discretionary behavior that goes well beyond the
minimum role requirement level of the organization, such as obeying rules and regulations, not taking extra breaks, working extra-long days (MacKenzie et al, 1993, 57: 107-142) If the employee is highly conscientious it implies that he is highly responsible and needs less
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supervision (Podsakoff and MacKenzie, 1997: 133-151) Conscientiousness
is used to indicate that a particular individual is organized, selfdisciplined, accountable and hardworking Organ (1988) defined it as dedication to the job which exceed formal requirements such as working long hours, and volunteer to perform jobs besides duties It is interesting to note that Kidder and McLean Parks (1993) posited the fact that males are more likely to engage in conscientious behavior than females in view of the fact that males have preference for equity over equality
Sportsmanship is defined as ―a willingness to tolerate the inevitable
inconveniences and impositions of work without complaining.‖ (Organ, 1990b, p 96) It refers to avoid complaining unnecessarily about the difficulties faced in the workplace, being positive and tolerant towards problems experienced in the workplace Sportsmanship is exhibition of willingness to tolerate minor and temporary personnel inconveniences and impositions of work without grievances, complaints, appeals, accusations, or protest This helps to conserve organizational energies for accomplishment
of task and to a large extent relieves managers of unnecessary load/stress (Organ and Ryan, 1995: 775-802; Organ, 1990: 43-72) Good sportsmanship would enhance the morale of the employees at the workplace and consequently reduce employee turnover, Podsakoff and MacKenzie (1997)
Courtesy refers to the gestures that help others to prevent interpersonal
problems from occurring, such as giving prior notice of the work schedule to someone who is in need, consulting others before taking any actions that would affect them (Organ, 1990) A courteous employee prevents managers from falling into the pattern of crisis management by making a since effort to avoid creating problems for co-workers (Podsakoff and MacKenzie, 1997: 133-151) Courtesy includes behaviors, which focus on the deterrence of problems and taking the necessary and timely steps in order to lessen the effects of the problem in the future The main idea of courtesy is avoiding
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actions that unnecessarily make colleagues’ work harder It also includes giving them enough notice to get prepared when there is an addition to their existing work load
Civic virtue is behavior on the part of an individual that indicates that
employee dutifully participates in, is actively involved in, and is concerned about the life of the company (Podsakoff et al, 1990, 1(2): 107-142) It shows willingness to participate actively in organization’s events, monitor organization’s environment for threats and opportunities, to work out the best alternative for the organization Civic virtue refers to the responsibility of the employees to actively and willingly participate in the life of the firm such as attending meetings which are not required by the firm and keeping appraised with the changes in the organization (Organ, 1988) This dimension of OCB
is actually derived from Graham’s findings which stated that employees should have the responsibility to be a good citizen of the organization (Graham, 1991) Other researchers have found that civic virtue enhances the quantity of performance and help to reduce customer complaints (Walz & Niehoff, 1996)
While Organ (1988) identifies the dimensions of altruism, conscientiousness, courtesy, sportsmanship, and civic virtue as underlying OCB, Borman and Motowidlo (1993) define OCB in terms of the extra effort and enthusiasm for one’s task, the voluntary involvement in tasks that fall outside prescribed tasks, the extension of help to and cooperation with other organizational members, the following of organizational rules and regulations, and the endorsement, support, and defense of organizational objectives
Graham (1991) breaks the concept of OCB down into organizational loyalty, organizational obedience, and organizational participation, whereas Williams and Anderson (1991) distinguish between OCB-O (i.e., OCB that is directed at the organization) and OCB-I (i.e., OCB that is directed at individuals) Research has
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also considered the specific context in which OCB takes place, distinguishing between unit- and group-level OCB (Ehrhart, 2004; Ehrhart et al., 2006; Ehrhart & Naumann, 2004; Schnake & Dumler, 2003)
Citizenship behaviors directed toward individuals (OCBI)
OCBI refers to the behaviors that immediately benefit specific individuals within an organization and, thereby, contribute indirectly to organizational effectiveness (Lee
& Allen, 2002; Williams & Anderson, 1991) Podsakoff et al (2000) labelled this dimension as helping behavior and defined it as voluntarily helping others with work-related problems While other researchers have addressed this category of behavior in a number of ways, all are similar to Williams and Anderson's (1991) definition of OCBI
Citizenship behaviors directed towards the organization (OCBO)
The second dimension of OCB includes behaviors benefiting the organization without actions aimed specifically toward any organizational member or members (e.g., adhering to informal rules, volunteering for committees) Podsakoff et al (2000) labeled this organizational compliance as it involves an internalization of a company's rules and policies Furthermore, Williams and Anderson (1991) defined
it as behaviors that benefit the organization in general These behaviors include giving prior notice regarding an absence from work or informally adhering to rules
designed to maintain order
2.2 Organizational commitment (OC)
Organizational commitment is a popular attitudinal variable in the work domain Gallie, Felstead and Green (2001) described organisational commitment as ―a conception that implies that people who feel a strong degree of personal identification with an organization that will lead them to remain with and provide a high level of work for the organization‖ (p.1085) Employee commitment is
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perceived as a set of attitudes or a motivating force that can influence many behavioral outcomes (Gould-Williams, 2007) Committed employees are those who share common values and beliefs, and who believe that their organizations would constantly offer them opportunities to grow in their career paths (Mowday, Steers,
& Porter, 1979) With this belief, they stay on, and are more inclined to deepen their commitment to the organization, particularly if they are pursuing promotion (Hea, Laib, & Lub, 2011) On the other side, managers are always seeking ways to enhance employee commitment and generate greater competitive advantages (Chan,
Tongqing, Redman, & Snape, 2006) Such positive intentions, if fulfilled adequately
by both parties, would result in positive organizational and individual outcomes such as high performance and job satisfaction (Joo & Shim, 2010)
According to Meyer and Allen (1991), there are three components of commitment: affective commitment, continuance commitment, and normative commitment Affective commitment refers to a strong belief in and acceptance of an organization’s goals and values; continuance commitment refers to the willingness
to exert considerable effort on behalf of an organization; in contrast, normative commitment refers to a strong desire to maintain membership in an organization because an employee believes it is morally right to be loyal, and stay in the
organization (Mowday et al., 1982)
Although normative commitment is widely recognized as a notable dimension of employee commitment, it has been found to be substantially inter-related with affective commitment (Allen & Meyer, 1990; Meyer & Allen, 1997; Morrow, 1993) Specifically, research has found no significant difference between the effects
of affective and normative commitment on organizational outcomes (Felfe, Yan, & Six, 2008a) Consequently, normative commitment is often excluded from studies; affective and continuance commitment being more commonly used forms (Dunham, Grube, & Castaneda, 1994; Gautam, Van Dick, & Wagner, 2004)
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Specifically, affective commitment is defined as ―the employee’s emotional attachment to, identification with, and involvement in the organization‖, whereas continuance commitment is defined as ―employees’ comparison of the costs associated with leaving the organization or staying‖ (Meyer & Allen, 1991, p.67) Affective commitment to the organization is recognized as the best predictor of reduced employee departure (Meyer & Allen, 1984, 1991) A high level of affective commitment diminishes the probability that employees will leave and join other organizations (Meyer & Allen, 1997) Employees expressing high affective organizational commitment are more satisfied with their work, report higher job involvement and are more likely to engage in behaviors that strengthen the competitiveness of the organization (Meyer & Allen, 1997)
2.3 Job demands and Decision latitude (JD)
Job demands are ―physical, social, organizational, or psychological aspects of the job that require sustained physical and/or psychological (cognitive and emotional) effort or skills‖ that are associated with certain ―physiological and/or psychological costs‖ (Bakker & Demouriti, 2007; Schaufeli & Bakker, 2004) Although job demands may not always be detrimental (Van den Broeck, De Cuyper, De Witte, & Vansteenkiste, 2010), most studies predict that the presence of highly demanding work conditions overburdens employees’ personal capacities ( Bakker & Demerouti, 2007) and has negative consequences Employees tend to consider job demands as sources of stress as these demands necessitate the expense of high levels of effort on their part (Meijman & Mulder, 1998)
Job demands have been found to challenge employees’ physical and mental being, which lead to energy depletion and negative health issues (cf Bakker & Demerouti, 2007; Bakker, Demerouti, & Schaufeli, 2003) Job demands have been categorized into physical, social, organizational, and psychological demands (Schaufeli & Bakker, 2004) I elaborate on each category briefly
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First, physical job demands encompass aspects of the job that affect employees’
tasks directly, such as task duration and frequency, the instruments used in a task, or the intensity of the labor during task accomplishment
Second, social job demands consider the stress that employees experience based on
their working relationships with others in the organization Work relationships may
be sources of anxiety, for example, when they are strongly emotion-laden and marked by high levels of interpersonal conflicts (Schaufeli & Bakker, 2004) Interpersonal conflict has been considered as a stressful job demand (i.e., stressor)
in many studies (Ilies, Johnson, Judge, & Keeney, 2011) High levels of interpersonal conflict tend to increase stress
The third relates to the organization When their managers make poor decisions,
employees may not be happy about the organization’s decision-making process; or when employees are skeptical about operating policies, they may experience stress because they wonder if the organization will be sustainable in the future
The fourth kind, psychological job demands, underlies all three of the
aforementioned categories, capturing the cognitive and emotional efforts that employees expend in their daily functions The difference between this category and the other three is somewhat blurry, in that cognitive efforts, for instance, may be required to address anxiety stemming from task, social, and the broader organization conditions
Following Karasek (1979), decision latitude was defined as the degree of control a person has over his or her work Job "Decision Latitude" is defined as the working individual's potential control over job-related decision making Component measures of "Decision Latitude" should differentiate control over use of skill, time allocation, and organizational decisions The areas available for analysis in the data base include "Personal Schedule Freedom" and "Intellectual Discretion." These measures cover, respectively, whether the individual has control over his time
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schedule of participation in the work process and, then, whether he can use judgment and assert control over his use of skill within the process itself
2.4 Person-Organization Fit (POF)
Person–organization fit (P–O fit) is the most widely studied area of person–environment fit, and is defined by Kristof (1996) as, "the compatibility between people and organizations that occurs when (a) at least one entity provides what the other needs, (b) they share similar fundamental characteristics, or (c) both" High value congruence is a large facet of person–organization fit, which implies a strong culture and shared values among coworkers This can translate to increased levels of trust and a shared sense of corporate community (Boone & Hartog, 2011) This high value congruence would in turn reap benefits for the organization itself, including reduced turnover, increased citizenship behaviors, and organizational commitment (Andrews et al., 2010; Gregory et al., 2010) The attraction–selection–attrition theory states that individuals are attracted to and seek to work for organizations where they perceive high levels of person–organization fit (Gregory et al., 2010) A strong person–organization fit can also lead to reduced turnover and increased organizational citizenship behaviors (Andrews, Baker, & Hunt, 2010)
Person-Organization Fit (POF) is a well known concept; it has been revealed as a factor that influences employee behavior in many aspects such as commitment, identification, intention to leave, corporate brand perception level, etc
The idea ―person-organization fit‖ is built on the theory ―attraction - selection attrition‖ which Schneider suggested in 1987 Schneider suggests that individuals feel more comfortable in the organizations where members have similar features, so they participate much more to this type of organizations In the same way, organizations employ the people who are closer to the organization culture After employing, both sides are trying to maintain this compatibility status Later, the organization runs its own socialization processes for adapting its own traditions and
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values The attractiveness of the organization for individual and the attractiveness
of the individual for the organization must be permanent to maintain the compatibility as long as possible Employers and employees review the degree of the compatibility between them regularly (Hauenstein et al., 2007: 4) According to Schneider, organizational climate is created by people and person-organization fit is dynamic and flexible Because people show adaptation to organization climate as well as changing it The person-organization researchers rely on values and needs while they classify the personality traits in terms of person and organization (Vianen, 2001: 2)
2.5 Job Satisfaction relative to expectations (JS)
Job satisfaction is conceptualized as both affect- and cognitive-based, with definitions ranging from a ―positive emotional state resulting from the appraisal of one’s job or job experiences‖ (Lock 1976, p 1300), to ―all characteristics of the job itself and the work environment which salespeople find rewarding, fulfilling, and satisfying, or frustrating and unsatisfying‖ (Churchill, Ford, and Walker 1974, p 255) Because it helps address the long-term viability of a sales force, salesperson job satisfaction is the most widely researched in studies of sales (Baldauf, Cravens, and Piercy 2005) Job satisfaction is seen here as ―a global, summary attitude reflecting an employee’s satisfaction with his/her job‖ (Evans, Landry, Li and Zou 2007) It has been demonstrated to have important relationships with a number of job outcome variables, such as intention to leave, stress, turnover, and performance (Childers, Dubinsky, and Skinner 1990)
It is commonly accepted that job satisfaction is a contributing factor to the physical and mental well-being of the employees; therefore, it has significant influence on job-related behaviors such as productivity, absenteeism, turnover rates and employee relations (Becker, 2004) It also plays an important role in improving the financial standing of organizations (Aronson, Laurenceau, Sieveking, & Bellet,
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2005) Thus, understanding job satisfaction of employees is an important organizational goal (Aronson et al., 2005)
The most popular definition of job satisfaction is given by Locke (1983), who defined job satisfaction as a pleasure of positive emotional state resulting from the appraisal of one's job experience This definition consists of both cognitive (an appraisal of one's job) and affective (emotional state) elements, denoting the degree
to which individuals feel positive or negative about their jobs Jehad Mohammad et
al Conceptually, it also indicates the degree to which the expectations in someone's
psychological contract are fulfilled (Arvey, Bouchard, Segal, & Abraham, 1989)
According to Smith, Kendall and Hulin (1969), all sources of job satisfaction fall into two categories: intrinsic and extrinsic satisfaction Intrinsic sources originate from within the individual and have psychological value Such satisfactions are essentially self-administered In contrast, extrinsic sources of satisfaction originate from the environment (outside the individual) Forces beyond the individual's control (e.g., job security and fringe benefits) determine the frequency and magnitude of extrinsic satisfaction
2.6 The relationship between OC and OCB
While OCB reflects actual behavior of employees, organizational commitment captures their attitudinal response to their experiences with the work environment (Meyer, Bobocel, & Allen, 1991) A key premise is that the likelihood of strong organizational commitment, and thus positive feelings toward the organization, is
lower when employees experience strongly demanding work conditions A
meta-analysis by Meyer, Stanley, Herscovitch, and Toponlnytsky (2002) shows that an employee’s affective attachment to the organization is influenced by how they experience their work conditions Additionally, in their meta-analysis, Meyer and colleagues (2002) find that the feeling of emotional attachment to the organization has a strong positive correlation with OCB
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Following previous research that finds job attitudes to serve as antecedents to behaviors (Lim, Cortina, & Magley, 2008), the author suggest that organizational commitment (an attitude) fuels OCB (a behavior)
In their study, O’Reilly III & Chatman – 1986, they predict that identification and internalization, the second and third previously discussed ways people can form a psychological attachment to their organization, will be positively related to organizational citizenship behaviors They did two studies to look at the relationship between the dimensions of commitment and organizational citizenship behaviors One involved 82 university employees, and the other involved 162 business students, which included both undergraduate and MBA level students The results show support for their hypothesis that there is a strong correlation between commitment that is based on internalization and identification, and organizational citizenship behaviors (O’Reilly III & Chatman, 1986) In the current research, we will test for this relationship in a bank setting, rather than an academic setting, and offer the following hypothesis:
Hypothesis 1: There is a positive relationship between employees’
organizational commitment and their organizational citizenship behaviors
2.7 The relationship of JD and OCB
Hockey (1997) suggests two ways in which individuals respond to excessive demands One way is to increase effort through increased mental and physical activity, which is the active coping mode; the other way is to anticipate and accept reduced performance and engage in a downward adjustment of performance targets, which is the passive coping mode With the active coping mode, employees should get exhausted over time, such that the resulting energy depletion hinders their involvement in extra-role activities such as OCB In the case of passive coping, employees tend to lose focus on how their task execution can help their organization (Hockey, 1997) Regardless of the coping mode they resort to, the result is that,
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under conditions of high job demands, employees should be less likely to engage in extra-role behaviors that help their organization Taken together, high job demands deplete or induce a shortage in employees’ expendable energy such that they may choose not to devote to extra-role behavior such as OCB, as explicated in more detail next for each of the three job demands under study
Since my interest is in examining how job demands and relational resources inform employees’ discretionary behaviors in general, and not in their effects on different targets of such behaviors, I conceptualize OCB as employees’ tendency to engage in behaviors that are beneficial to either their supervisor, other organizational members, or their organization in general (De Cremer, Mayer, van Dijke, Schouten,
& Bardes, 2009)
In recently workplaces, employees are faced with various JD For example interpersonal conflict that as an emotional stress or provides counterproductive work from employees Such potential harmful behaviors make economically and mentally enormous cost for organization (Fox and Spector, 2005) On other hand, fortunately, various job resource being exist in workplaces, which stimulate OCB in employees that also improve organization’s performance (Chen, 2011) Moreover, personal resource (such as job conscientiousness), which plays an important role in promoting OCB, exists in the organization Therefore, the purpose of this paper is, study on how some job’s characteristics as JD effect on OCB
Hypothesis 2: An employee’s Job demand and Decision latitude is positively related to organizational citizenship behaviors
2.8 The relationship POF and OCB
Vilela et al (2008) proposed that high P-O fit is an antecedent of OCB; however, there is no mention of what moderators affect the relationship Bateman and Organ (1983) suggested that job satisfaction, which is a product of high P-O fit, can lead to
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OCB The present study explores the different aspects of individuals that moderate this relationship—specifically, if factors such as how well employees perform their job-related tasks, how favorably they perceive themselves, and how agreeable they are, moderate the relationship between employees’accordance with their organization and how often they engage in OCB
High P-O fit has been confirmed as antecedent to trust, commitment, and satisfaction within an organization, all of which lead to increased OCB Conversely, those who feel disconnected from their organization (i e who have low P-O fit) are likely to respond with animosity towards it (Dailey and Kirk, 1992; Skarlicki and Folger, 1997) The importance of P-O fit has been emphasized in past research; those whose values align with the culture of the organization are more likely to experience more positive work-related outcomes, such as higher job involvement (Blau, 1993), greater organizational commitment (Meglino, Ravlin, & Adkins, 1989), and better work attitudes (Caldwell & O’Reilly, 1990) Such employees are more likely to remain in that environment (Vilela et al., 2008) Indeed, we expect to replicate the finding that the more someone fits with their organization, the more likely they are to engage in OCB
This study deals with the impact POF on another element of employee behavior – Organizational Citizenship Behaviors – i.e employees’ willingness to perform extra tasks and to carry out activities that are not part of their job, without expecting any formal or informal compensation Many academics have studied the impact of OCB impact on organizational effectiveness and have found a strong positive correlation between the two This research examined this concept in terms of an organization’s social performance, as perceived by its employees The study found that OCB is positively related to POF, so that the higher the POF the higher the OCB
Hypothesis 3: Person - organization fit is positively related to organizational citizenship behaviors
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2.9 The Relationship of JS and OCB
There are considerable evidences that OCB and job satisfaction are positively related (Bateman & Organ, 1983; Lee & Allen, 2002; MacKenzie, Podsakoff, & Ahearne, 1998; Moorman, 1993; Morrison, 1994; Organ & Konovsky, 1989; Smith
et al., 1983; William & Anderson, 1991) Bateman and Organ (1983) conducted a longitudinal, cross-lagged study in which they compared "supervisory ratings of OCB" and "employee self-reported levels of job satisfaction." They found a strong and positive relationship between overall OCB and contextual job satisfaction The most consistent and strongest relationships were between OCB and satisfaction with supervision and promotions Becker and Billings (1993) also tested the relationship between OCB and contextual job satisfaction In their study, each employee received two OCB scores: one self-reported rating and one score generated by the supervisor As there were no significant differences between the two OCB ratings, the scores were combined to produce an overall OCB score that yielded a positive relationship between OCB and job satisfaction
Several theoretical explanations are offered for the relationship between job satisfaction and OCB, including social exchange theory (Konovsky and Pugh, 1994) and psychological contract theory (Robinson and Morrison, 1995) A central aspect to most of these theories is the ―norm of reciprocity‖ (Netemeyer et al., 1997) An employee satisfied with his or her job will engage in OCB as reciprocation for those who have benefited him or her (Bateman and Organ, 1983; Schnake, 1991) The theoretical and empirical evidence confirms that job satisfaction predicts OCB (Niehoff and Moorman, 1993; Organ, 1988; Organ and Ryan, 1995; Schnake, 1991; Smith et al., 1983)
A recent study explores the existing relationship between antecedents that contribute to job satisfaction or dissatisfaction, and also the consequences of job satisfaction or dissatisfaction (Ghazzawi, 2008) Ghazzawi bases his paper on prior research in hopes of further explaining the effect job satisfaction has on people in