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ijcrb.webs.com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS COPY RIGHT © 2012 Institute of Interdisciplinary Business Research 103 NOVEMBER 2012 VOL 4, NO 7 JOB SATISFACTION AND ORGANIZATIONAL COMMITMENT AS ANTECEDENTS OF ORGANIZATIONAL CITIZENSHIP BEHAVIOR (OCB) Nida Qamar Virtual University of Pakistan M.A. Jinnah Campus, Defence Road, Off Raiwind Road, Lahore, Pakistan. Abstract The objective of this research work is to explore the relationship of job satisfaction and organizational commitment with Organizational Citizenship Behavior (OCB) in banking sector of Pakistan. Effects of the antecedents that are job satisfaction and organizational commitment on dimensions of OCB have been computed in the study. The present study is an explanatory study. Data has been collected from 96 employees working in banks based in Lahore. A self- administered questionnaire has been used to collect the data and respondents designed on 7-point Likert scale. The respondents were approached personally during their duty hours. Descriptive statistics along with bi-variate correlation analysis is used. It is noted that job satisfaction has significant positive moderate relation, whereas, organizational commitment has significant strong relation with OCB. Keywords: Job satisfaction, organizational commitment, organizational citizenship behavior, banking sector.

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    INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS

    COPY RIGHT © 2012 Institute of Interdisciplinary Business Research

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    JOB SATISFACTION AND ORGANIZATIONAL COMMITMENT AS ANTECEDENTS

    OF ORGANIZATIONAL CITIZENSHIP BEHAVIOR (OCB)

    Nida Qamar

    Virtual University of Pakistan M.A. Jinnah Campus,

    Defence Road, Off Raiwind Road, Lahore, Pakistan.

    Abstract

    The objective of this research work is to explore the relationship of job satisfaction and

    organizational commitment with Organizational Citizenship Behavior (OCB) in banking sector

    of Pakistan. Effects of the antecedents that are job satisfaction and organizational commitment

    on dimensions of OCB have been computed in the study. The present study is an explanatory

    study. Data has been collected from 96 employees working in banks based in Lahore. A self-

    administered questionnaire has been used to collect the data and respondents designed on 7-point

    Likert scale. The respondents were approached personally during their duty hours. Descriptive

    statistics along with bi-variate correlation analysis is used. It is noted that job satisfaction has

    significant positive moderate relation, whereas, organizational commitment has significant

    strong relation with OCB.

    Keywords: Job satisfaction, organizational commitment, organizational citizenship behavior,

    banking sector.

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    1. Introduction

    The research on the Organizational Citizenship Behavior, as well as on its antecedents and

    consequences has been extensive. Employees, who perform their task by looking beyond their

    job descriptions, make their organization to outperform in the real world (Hui, Lam, & Law,

    2000). Organizational Citizenship Behavior works on the principle that something good and

    beneficial is done by employees for their organizations. According to Smith et al. (1983) OCB

    should not be shown by the employees in order to receive reward in return. Smith et al. (1983)

    writes, "Much of what we call citizenship behavior is not easily governed by individual incentive

    schemes, because such behavior is often subtle, difficult to measure". There are number of

    antecedents of OCB which are being studied by researchers. Job satisfaction and organizational

    commitment has been found to be the essential predictors of OCB. Among the antecedents of the

    OCB, organizational commitment is said to be the strong one (Khan & Abdul Rashid, 2012).

    Job Satisfaction has been identified as a major requirement for organizations which aim to

    achieve excellence in their operations (Chiboiwa, Chipunza, & Samuel, 2011).

    According to Locke (1976), job satisfaction is the internal state of the employee that is developed

    according to the favor and disfavor of the experiences related to job and job satisfaction. The

    studies conducted by various researchers have worked on the relationship of job satisfaction and

    OCB but there are inconsistent results regarding the relationship of job satisfaction-OCB

    (Mehboob & Bhutto, 2012). The study conducted by Smith et al. (1983) found a positive

    correlation between the two dimensions of OCB; altruism & compliance, and job satisfaction. In

    recent decades, organizations have emphasized greatly on organizational commitment aspect of

    employees. Organizational Commitment is found to be the significantly correlated with OCB

    (Khan & Abdul Rashid, 2012). According to LePine, Erez, and Johnson (2002), organizational

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    commitment is one of the strong predictors of OCB. Organizational Commitment not only makes

    an employee to stay in the organization but also make it possible for the employees to take part

    in organizational activities (Steyrer, et al, 2008). According to Chang, Tsai, & Tsai (2010) if

    organizations become successful in keeping its employees committed to the organization; there is

    a higher chance of developing OCB among employees. The topic of organizational citizenship

    behaviors continues to stimulate interest among researchers and practitioners. (Netemeyer et al,

    1997). Organizations now need to establish the system of activities that that help in the

    accomplishment of organizational goals (Chiboiwa, Chipunza, & Samuel, 2011).

    Various researches done on OCB opened different dimensions of this variable along with it

    antecedents and consequences. There is lack of studies being done on organizational citizenship

    behavior in banks. This present paper is an endeavor to cover this area in the perspective of

    Pakistan. The foremost objective of this paper is to study the job satisfaction and organizational

    commitment as the antecedents of OCB (Organizational Citizenship Behavior) in the banking

    sector of Pakistan.

    The relation of these antecedents is correlated with five dimensions of the OCB that are

    Altruism, Conscientiousness, Sportsmanship, Courtesy, Civic virtue. The paper also addresses

    the influence of age on OCB.

    2. Literature review:

    Since the introduction of Organizational Citizenship Behavior (OCB), the research on this topic

    has been extensive and has dramatically increased (Bateman and Organ, 1983; MacKenzie,

    Podsakoff, & Paine, 1999). Organ (1988) defines OCB as ―individual behavior that is

    discretionary, not directly or explicitly recognized by the formal reward system, and that in the

    aggregate promotes the effective functioning of the organization. By discretionary, we mean that

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    the behavior is not an enforceable requirement of the role or the job description, that is, the

    clearly specifiable terms of the person’s employment contract with the organization; the

    behavior is rather a matter of personal choice, such that its omission is not generally understood

    as punishable.‖

    According to Hui, Lam, & Law (2000), it’s the demand of the organizations to retain those

    employees who are willing and able to do those tasks that are not defined in their job

    descriptions. As it is important for almost all kinds of the organizations and it improves

    organizational effectiveness in various (Cohen and Kol, 2000 and Organ 1988).

    Organ (1988) states OCB as a ―good soldier syndrome‖, a very essential behavior for the success

    and prosperity of the organization. It is actually a behavior that is presumably performed by

    intrinsic motivation mechanism (Chompookum & Derr, 2004), termed as ―informal

    psychological contract‖ which employees show with the hope that the organization and boss will

    perceive it as extra effort and reward it back accordingly (Dhitiporn and Brooklyn, 2004). OCB

    is subject to behavior related to personal choice and not performing it does not lead to

    punishment in organizations (Mehboob & Bhutto, 2012).

    The five dimensions of OCB as defined by Organ (1988) are:

    (1) Altruism – helping coworker on a task,

    (2) Courtesy – informing other individuals in the organization about the changes that may have

    affect their work,

    (3) Conscientiousness – doing work beyond the minimum requirements,

    (4) Sportsmanship – abstaining oneself from complaint about petty issues,

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    (5) Civic virtue – constructively participating in engagements of the organization.

    The review of various previous researches shows different views regarding the correlation of

    demographic variables with OCB. Alotaibi (2001) found no significant relationship between age,

    gender and OCB.

    Smith et, al. (1983) did the first research on predictors of OCB and found job satisfaction to be

    the best antecedent of it. A study by Chang, Tsai, & Tsai (2010) did research on organizational

    commitment and found it highly positively correlated with OCB.

    There have been several studies conducted on the antecedents of Organizational Citizenship

    Behavior. The studied antecedents of OCB are job satisfaction and organizational commitment

    (Organ and Ryan, 1995), job satisfaction and affective commitment (Tepper et, al, 2004), a

    stronger predictors of OCB than job satisfaction are perception of fairness (Moorman, 1993) and

    dispositional factors (Konovsky and organ, 1996), procedural justice, organizational

    commitment, fairness, equity perceptions (Mehboob & Bhutto, 2012).

    Locke (1976) defines job satisfaction as ―a pleasurable or positive emotional state resulting from

    the appraisal of one’s job or job experiences‖. Organizations that want to reach the goal should

    increase the job satisfaction and motivation of the employees, and create suitable work

    environment in the organization (Alizadeh et al, 2012). The term job satisfaction has taken a

    huge importance all over the world because it’s the key to the performance and productivity of

    the employees (Mehboob & Bhutto, 2012). If organizations provide their employees opportunity

    to feel satisfied then they are more likely to display Organizational Citizenship Behavior.

    (Bateman and organ, 1983).

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    There are varying results regarding the correlation of Job Satisfaction and OCB. The strong

    relationship is between JS and OCB (Organ et al, 1995), whereas only two dimensions of job

    satisfaction i.e. perceived equity and leadership are related to OCB; therefore only partial

    relationship exists between job satisfaction and OCB (Schnake, Cochran, & Dumler, 1995). A

    study by Smith et al. (1983) showed the result that job satisfaction implies to have partial

    influence on various dimensions of OCB. Adam (2000) argues that job satisfaction is not related

    to OCB. Ackfeldt & Coote (2005) identified job attitudes (job satisfaction, organizational

    commitment) related to Organizational Citizenship Behavior. A study conducted by Chiboiwa,

    Chipunza, & Samuel, 2011 (2011) among administrative employees of five organizations of

    Zimbabwe showed that there exists positive but a weak relation between job satisfaction and

    OCB. Employees become more satisfied with their job if they are handed over the autonomy.

    (Chiboiwa, Chipunza, & Samuel, 2011). Motivated employees are more satisfied as according to

    Armstrong other antecedents of Job satisfaction found are both intrinsic and extrinsic

    motivational factors (Armstrong, 2003).

    Organizational commitment is one of the most important predictor of OCB (LePine, Erez, and

    Johnson (2002). A study conducted by Allameh, Amiri , & Asadi (2011) in Mazandaran

    Regional Water Organization led to the conclusion that employee’s commitment not only

    confirms his staying in the organization but also leads to citizenship behavior. Organizational

    Commitment also seems to be positively correlated with OCB (O’Reilly, & Chatman (1986).; &

    Khan & Abdul Rashid, 2012). The variable organizational commitment is defined by Porter and

    Lawer (1968) as ―the willingness of an employee to exert high levels of effort on behalf of the

    organization, a strong desire to stay with the organization, and an acceptance of its major goals

    and values. Commitment reflects a psychological bond between people and organizations (Porter

    and Lawler. (1968). In another study, Steven and Brian (2007) defined it as ―the relative strength

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    of an individual’s identification and involvement in a particular organization‖. The three

    dimensions as stated by Allen and Meyer (1990) are; affective commitment, continuance

    commitment and normative commitment defined as follows:

    Affective commitment: employee’s emotional attachment to, identification with, and

    involvement in, the organization.

    Continuance commitment: it is based on the costs that the employee associates with

    leaving the organization.

    Normative commitment: It refers to the employee’s feeling of obligation to remain with

    the organization.

    Organizational commitment brings out positive results for the organization as it reduces the

    turnover and absenteeism (Allameh, Amiri , & Asadi, 2011). It also ensures employee’s

    permanence in the organization irrespective of the circumstances (Steyrer, et al, 2008).

    2.1 Objectives of the study:

    The objectives of this study are:

    To know the perception of the employees working in the banking sector about different

    dimensions of OCB.

    To find out to what extent employees in banks show OCB.

    To determine whether job satisfaction and organizational commitment leads to OCB.

    To determine whether gender is related with citizenship behavior in organizations.

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    2.2 Theoretical framework:

    There are three main variables in the study; job satisfaction, organizational commitment and

    Organizational Citizenship Behavior. The correlation of job satisfaction and organizational

    commitment as independent variables in said to be found with dimensions of Organizational

    Citizenship Behavior. Organ (1988) presented five dimensions of OCB that are altruism,

    conscientiousness, sportsmanship, courtesy, civic virtue.

    Following propositions are proposed based on the present study:

    Proposition one: employees who are satisfied with their jobs exhibit more citizenship

    behavior.

    Job satisfaction is the predictor of OCB. An employee who is satisfied with his job and job

    environment is more likely to look beyond his/her job description and work for organization with

    no intention of reward in return.

    Proposition two: organizational commitment leads to organizational citizenship behavior in

    employees of banks.

    If the employee is committed with the organization then s/he is willing to do work more than

    what is specified to him/her. So, this implies that organizational commitment is related with

    OCB.

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    Fig. 1: Schematic Diagram of the study

    Based on the above theoretical framework, following hypotheses can be deduced:

    2.3 Hypotheses:

    H1: Job satisfaction induces citizenship behavior in organizations.

    H2: Commitment with the organization leads to OCB.

    H3: The variable Gender is related to Organizational Citizenship Behavior.

    Job Satisfaction

    Organizational

    Commitment

    Organizational

    Citizenship Behavior

    Altruism

    Conscientiousne

    ss

    Courtesy

    Sportsmanship

    Civic Virtue

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    3. Methodology:

    The present study is explanatory research intended to measure OCB as a consequence of job

    satisfaction and organizational commitment. Self-administered questionnaire was distributed

    directly among the bank employees based in Lahore.

    125 respondents were initially selected and only 96 responded back. With this, the response rate

    is 76.8%. Questionnaire consisted of 22 items was given to bank employees based in Lahore,

    with concise description of the study, in order to have impartial responses. The banks include

    different branches of MCB, Standard Chartered, Bank Alfalah, Bank Al habib, Faysal Bank,

    KASB, Dubai Islamic Bank, Meezan Bank and CitiBank of Lahore. The respondents were given

    proper time to fill up the questionnaire. The questionnaires were collected on the next day they

    were distributed. Each item on a questionnaire was measured on a 7-point Likert scale from

    strongly disagree (1) to strongly disagree (7). The items of Likert Scale are coded by taking the

    actual response given by the respondent. Demographic Profile consisted of age, income, marital

    status is also gathered.

    4. Data Analysis:

    Statistical Software Package for Social Scientists (SPSS version 17) has been used for statistical

    analysis. Descriptive statistics such as frequencies, mean, standard deviation are calculated. In

    order to measure the relation of job satisfaction, organizational commitment with OCB, bi-

    variate correlation analysis (coefficient of correlation) is used. Analysis including

    frequencies, mean and standard deviation are used to study the sample characteristics.

    Cronbach’s alpha reliability test is used to measure the reliability of the scale. Table 1 shows that

    Cronbach’s alpha for the job satisfaction is 0.915, which shows a very high reliability of the

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    measure. While for organization commitment it is 0.884 and for Organizational Citizenship

    Behavior, the Cronbach’s alpha is 0.929. The overall Cronbach’s alpha for the questionnaire

    appears to be 0.941. The reliability is accepted as all scales show Cronbach’s alpha more than

    0.7.

    5. Discussions/Conclusions:

    After reading the literature and based upon the objectives of the study, coefficient of correlation

    is used in order to find the relation of job satisfaction, organizational commitment with OCB.

    Table 2 shows the demographic profile of respondents to make the study understanding

    meaningful.

    According to the correlation results shown in Table 3, it can be inferred that all correlation

    values are appear to be significant at 0.01. Based upon the result it can be said that first

    determinant of OCB i.e. job satisfaction has a moderate (0.391) yet positive relationship with

    OCB. Taking job satisfaction’s relation with each dimension of OCB, it is found that it has

    strongest relation with conscientiousness (0.405) and least with sportsmanship (0.290). Hence it

    can be said that different dimensions of OCB are not only significantly related to Job satisfaction

    but also positively related to each other. Whereas, organizational commitment shows somewhat

    stronger relationship with OCB as compared to relation of job satisfaction with OCB. Table 3

    shows that Organizational Commitment has strong positive relation with overall OCB (0.690). If

    relation of each dimension of OCB is calculated with Organizational Commitment, it can be

    found that that organizational commitment has strong positive relation with each dimension of

    OCB; the strongest being with altruism and courtesy. This is evident that in banking setting, if an

    employee is committed to his/her job then s/he will be more motivated to help the co-workers

    and show courteous behavior. Some interesting findings are extracted by examining the

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    relationship between dimensions of OCB. It is found out that Altruism appears to be strongly

    related to other dimensions. An employee who is ready to help his co-workers is more likely to

    show courtesy, abstaining oneself from complaining about petty issues along with being strongly

    engaged to organizational activities.

    In order to further explore that whether there is any difference between the OCB level of male

    and female independent t-test has been conducted and the results are found as shown in Table 5

    and 6. As shown in Table 6, the p-value of the Levene’s test (0.627) is greater than significance

    level (0.05) hence the equal variances are assumed. As per the analysis that gender wise what is

    the OCB level of the employees of banking sector, it is revealed that gender does not exhibit any

    significant impact on OCB.

    6. Conclusion and recommendations:

    As per the results and the analysis it is concluded that job satisfaction and organizational

    commitment have significant impact on OCB. All the dimensions of OCB are positively and

    significantly related to each other as well as to job satisfaction and organizational commitment.

    The above mentioned finding is also supported by the literature. It can be concluded that among

    job satisfaction and organizational commitment; organizational commitment appears to be more

    strongly related to OCB. Job satisfaction has moderate positive relation with OCB. Talking about

    the dimensions of OCB; Job satisfaction has strongest relation with conscientiousness whereas

    organizational commitment has with altruism and courtesy. Taking gender as a moderating

    variable, the closer analysis shows that gender is insignificantly related to OCB. The findings of

    the present study also match with the literature. This study attempts to provide recommendations

    for the future study also. The study is conducted in Lahore city only. In future the study can be

    conducted in other cities also in order to increase the generalizability of the results. The relation

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    of age and designation with OCB can also be studied as a moderating variable. Also, further

    research can be carried out in other developing countries like Pakistan so that findings can be

    compared. In the end, it is suggested that as there is significant relationship between the job

    satisfaction and organizational commitment with OCB; so the management of banking sector

    should produce atmosphere where employees feel satisfied with job and committed with the

    organization.

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    Table 1: Reliability analysis

    Factor Cronbach’s

    alpha value

    George and Malley (2003)

    thumb rule

    Job satisfaction 0.915 Excellent

    Organizational

    commitment 0.884 Good

    OCB 0.929 Excellent

    Overall 0.941 Excellent

    Table 2: Demographics of sample

    Gender N

    Male (%) 67

    Female (%) 29

    Age (years)

    20-29 57

    30-39 16

    40-90 2

    50 & above 1

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    Table 3: Correlations

    Job

    Satisfaction

    Org

    Commitment Altruism Courtesy

    Conscientious

    ness

    Civic sportsmanship

    Overall

    OCB virtue

    Job Satisfaction

    Pearson

    Correlation 1 .504** .337** .386** .405** .372** .290** .391**

    Sig. (2-tailed) 0.000 0.000 0.000 0.000 0.000 0.000 0.000

    N 96 96 96 96 96 96 96 96

    Org Commitment

    Pearson

    Correlation .504** 1 .655** .655** .640** .576** .606** .690**

    Sig. (2-tailed) 0.000 0.000 0.000 0.000 0.000 0.000 0.000

    N 96 96 96 96 96 96 96 96

    Altruism

    Pearson

    Correlation .337** .655** 1 .846** .775** .799** .852** .948**

    Sig. (2-tailed) 0.000 0.000 0.000 0.000 0.000 0.000 0.000

    N 96 96 96 96 96 96 96 96

    Courtesy

    Pearson

    Correlation .386** .655** .846** 1 .796** .729** .771** .924**

    Sig. (2-tailed) 0.000 0.000 0.000 0.000 0.000 0.000 0.000

    N 96 96 96 96 96 96 96 96

    Conscientiousness Pearson

    Correlation .405** .640** .775** .796** 1 .759** .763** .882**

    Sig. (2-tailed) 0.000 0.000 0.000 0.000 0.000 0.000 0.000

    N 96 96 96 96 96 96 96 96

    Civic virtue

    Pearson

    Correlation .372** .576** .799** .729** .759** 1 .771** .869**

    Sig. (2-tailed) 0.000 0.000 0.000 0.000 0.000 0.000 0.000

    N 96 96 96 96 96 96 96 96

    sportsmanship

    Pearson

    Correlation .290** .606** .852** .771** .763** .771** 1 .918**

    Sig. (2-tailed) 0.000 0.000 0.000 0.000 0.000 0.000 0.000

    N 96 96 96 96 96 96 96 96

    Overall OCB

    Pearson

    Correlation .391** .690** .948** .924** .882** .869** .918** 1

    Sig. (2-tailed) 0.000 0.000 0.000 0.000 0.000 0.000 0.000

    N 96 96 96 96 96 96 96 96

    ** Correlation is significant at the 0.01 level (2-tailed) Results from SPSS output

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    Table 4: Group statistics

    Gender N Mean Std. Deviation Std. Error Mean

    OCB m 67 46.6567 8.87890 1.08473

    f 29 46.3103 7.51714 1.39590

    Results from SPSS output

    Table 5: Independent samples test

    Levene's Test

    for Equality of

    Variances

    t-test for Equality of Means

    F Sig. t df Sig. (2-

    tailed)

    Mean

    Differ

    ence

    Std.

    Error

    Differen

    ce

    95% Confidence

    Interval of the

    Difference

    Lower Upper

    OCB Equal

    variances

    assumed

    .238 .627 .183 94 .855 .3463

    7

    1.88851 -3.40332 4.09606

    Equal

    variances

    not

    assumed

    .196 62.377 .845 .3463

    7

    1.76782 -3.18702 3.87976

    Table 6: Independent samples test