Sources of Sources of Organizational Organizational CommitmentCommitment

Yang, Song, Steven Worden, Yang, Song, Steven Worden, and George Wilson 2004 and George Wilson 2004 Sociological SpectrumSociological Spectrum

24:667-68824:667-688

Theoretical motivationsTheoretical motivations

Organizational commitment is so Organizational commitment is so consequential to employees and consequential to employees and employersemployers

Loyal and happy workers are Loyal and happy workers are productive!productive!

Loyal and happy workers are steady Loyal and happy workers are steady and countable!and countable!

Loyal and happy workers are also Loyal and happy workers are also mentally healthy at home.mentally healthy at home.

Sources of CommitmentSources of Commitment

We also know a lot about what We also know a lot about what contributes to great organizational contributes to great organizational commitment. commitment.

Individual variables: Race, and Marital Individual variables: Race, and Marital Status.Status.

Job characteristics: income, tenure, Job characteristics: income, tenure, union, and position/occupation.union, and position/occupation.

Workplace features: democratic Workplace features: democratic workplaces, bureaucratic type, internal workplaces, bureaucratic type, internal labor market, and workplace size. labor market, and workplace size.

Internal labor marketInternal labor market

Internal labor market (ILM) Internal labor market (ILM) supposedly increases workers supposedly increases workers commitment by providing high job commitment by providing high job security and steady promotion based security and steady promotion based on seniorityon seniority

However, workers in post-industrial However, workers in post-industrial society such as US embrace a wide society such as US embrace a wide variety of job expectations, many of variety of job expectations, many of which are incongruous with what the which are incongruous with what the ILM has to offer.ILM has to offer.

InterplayInterplay Thus, a critical issue that awaits answer is Thus, a critical issue that awaits answer is

how worker valuation/job expectation how worker valuation/job expectation interplay with ILM to have an impact on interplay with ILM to have an impact on workers organizational commitment.workers organizational commitment.

In particular, one may reasonably In particular, one may reasonably hypothesize that workers whose job hypothesize that workers whose job valuation matches with the ILM offerings valuation matches with the ILM offerings would come to appreciate the ILM by would come to appreciate the ILM by showing great loyalty to their showing great loyalty to their employers/organizations. Conversely those employers/organizations. Conversely those whose expectations are incongruence with whose expectations are incongruence with the ILM offerings are largely indifferent to the ILM offerings are largely indifferent to what the ILM has to offer.what the ILM has to offer.

An Elaboration ModelingAn Elaboration Modeling

ILMOrganizational Commitment

Job Expectation

(Kalleberg and Mastekaasa 1994)

(Yang et al., 2004)

Employer offers through ILM: job security and steady promotion along internal ladder

YES Employees: Are those what you want? NO

Organizational Commitment

Why understudy?Why understudy?

Plenty of theoretical discussions on interplay Plenty of theoretical discussions on interplay between workers’ job expectations and between workers’ job expectations and employers’ offering, so called matching employers’ offering, so called matching theory.theory.

Why so few empirical analyses?Why so few empirical analyses? Reason 1: statistical issue – interaction terms Reason 1: statistical issue – interaction terms

in multivariate regression is not widely known in multivariate regression is not widely known and used by Sociologists until recently.and used by Sociologists until recently.

Reason 2: Methodological issue – cross-level Reason 2: Methodological issue – cross-level dataset that captures employer-employee dataset that captures employer-employee variables is not readily available until NOS variables is not readily available until NOS 19911991

No more excuse!No more excuse!

With a unique employer-employee With a unique employer-employee dataset from the 1991 NOS, and an dataset from the 1991 NOS, and an advancement of interaction analyses advancement of interaction analyses in multiple regression by Aiken and in multiple regression by Aiken and West 1991, we are set to re-analyze West 1991, we are set to re-analyze organizational commitment.organizational commitment.

Interaction termInteraction term

Centering method to curb multicollinearityCentering method to curb multicollinearity Our study has two interaction termsOur study has two interaction terms One is ILM * worker job security One is ILM * worker job security

expectationexpectation One is ILM * worker job promotion One is ILM * worker job promotion

expectationexpectation

KK XXXXXY ......)( 2132211

GSS 1991GSS 1991 Organizational commitment scaleOrganizational commitment scale 1) 1) I am willing to work harder than I have to in order to help I am willing to work harder than I have to in order to help

this this organization succeedorganization succeed 2) 2) I feel very little loyalty to this organizationI feel very little loyalty to this organization 3) 3) I would take almost any job to keep working for this I would take almost any job to keep working for this

organizationorganization 4) 4) I find that my values and the organization’s values are quite I find that my values and the organization’s values are quite

similarsimilar 5) 5) I am proud to be working for this organizationI am proud to be working for this organization 6) 6) I would turn down another job for more pay in order to stay I would turn down another job for more pay in order to stay

with this with this organization organization Coding are strongly agree (4), agree (3), disagree (2), and strongly Coding are strongly agree (4), agree (3), disagree (2), and strongly

disagree (1). Question 2 is reverse coded disagree (1). Question 2 is reverse coded The results are summed up and divided by 6, producing a The results are summed up and divided by 6, producing a

commitment scale from 0 to 4commitment scale from 0 to 4 Internal consistency reliability (0.74)Internal consistency reliability (0.74) N = 688 + 39 = 727, because the outcome variable is the individual N = 688 + 39 = 727, because the outcome variable is the individual

worker attributes (GSS-NOS), not an organization variable (NOS).worker attributes (GSS-NOS), not an organization variable (NOS).

GSS 1991GSS 1991

Valuation of job securityValuation of job security is measured is measured by a single item: “How important is by a single item: “How important is ‘not being in danger of being fired’ to ‘not being in danger of being fired’ to you?” Answers range from “most you?” Answers range from “most important” (5), “the second most important” (5), “the second most important” (4), “the third most important” (4), “the third most important” (3), “the fourth most important” (3), “the fourth most important” (2), and “the fifth most important” (2), and “the fifth most important” (1).important” (1).

GSS 1991GSS 1991

Valuation of job promotionValuation of job promotion is is measured by a single item: “how measured by a single item: “how important are “chances for job important are “chances for job advancement to you?” Answers advancement to you?” Answers range from “the most important (5)”, range from “the most important (5)”, “the second most important (4)”, “the second most important (4)”, “the third most important (3)”, “the “the third most important (3)”, “the fourth most important (2)”, and “the fourth most important (2)”, and “the fifth most important (1).”fifth most important (1).”

NOS 1991NOS 1991 Firm Internal Labor Market Firm Internal Labor Market is an additive index is an additive index

consisting of three items: “Do you sometimes fill consisting of three items: “Do you sometimes fill (occupation) vacancies with people already (occupation) vacancies with people already employed at your establishment?”(yes = 1; no = 0); employed at your establishment?”(yes = 1; no = 0);

““Does your establishment have occupational levels? Does your establishment have occupational levels? (yes = 1, no =0)”(yes = 1, no =0)”

““Is it possible for an occupation to be promoted to a Is it possible for an occupation to be promoted to a level above? level above?

How often does this happen? (Not very often = 0), How often does this happen? (Not very often = 0), (often = 1) (very often = 2)”. (often = 1) (very often = 2)”.

The results of the three measuring items are The results of the three measuring items are summed up, producing an index that ranges in summed up, producing an index that ranges in value from 0 to 4. value from 0 to 4.

Table 1: Descriptive Statistics on Key Variables: GSS and NOS Samples Variable Mean St. Dev

Organizational Commitment 2.88

.56

Internal Labor Market 2.52

.93

Valuation of Promotion 3.30

1.17

Valuation of Job Security 2.39 1.20

FIG. 1: FILM AND ORG. COMMITMENT

LEVELS OF J OB SECURITY VALUATION VARY

Firm Internal Labor Market (FILM)

High FILMMedian FILMLow FILM

Org

. C

om

mit

me

nt

2.9

2.8

2.7

2.6

2.5

HIGHSEC

LOWSEC

MIDSEC

FIG. 2: FILM AND ORG. COMMITMENT

LEVELS OF PROMOTION VALUAT ION VARY

Firm Internal Labor Market (FILM)

High FILMMid FILMLow FILM

Org

. C

om

mit

me

nt

3.0

2.9

2.8

2.7

2.6

2.5

2.4

HIGHPROMOTION

LOWPROMOTION

MIDPROMOTION

FindingsFindings ILM does not automatically increase workers ILM does not automatically increase workers

organizational commitment.organizational commitment. The extent to which ILM is conducive to great The extent to which ILM is conducive to great

commitment is contingent on whether ILM commitment is contingent on whether ILM produces the substances that are desired by produces the substances that are desired by workers.workers.

Standing-alone model with either solo workers Standing-alone model with either solo workers characteristics or solo workplace feature is not characteristics or solo workplace feature is not sufficient to account for variations in sufficient to account for variations in organizational commitment.organizational commitment.

Interplay model that incorporates both workers Interplay model that incorporates both workers valuation and their employers’ programs offers valuation and their employers’ programs offers unique contribution to extend our understanding unique contribution to extend our understanding of organizational commitment of organizational commitment

Future studiesFuture studies A bit out-dated dataset: whether relations A bit out-dated dataset: whether relations

reported here hold with new empirical dataset?reported here hold with new empirical dataset? We focus only on affective commitment: questions We focus only on affective commitment: questions

abound whether our findings hold when we study abound whether our findings hold when we study other types of commitment as outcome variables: other types of commitment as outcome variables: continuance commitment, calculative continuance commitment, calculative commitment, and normative commitment? commitment, and normative commitment?

Workers valuation is constantly changing and it Workers valuation is constantly changing and it can be indoctrinated by their employers. This can be indoctrinated by their employers. This study portrays a snap-shot, one time cross-study portrays a snap-shot, one time cross-sectional analysis. A longitudinal study can sectional analysis. A longitudinal study can describe such dynamic process better than our describe such dynamic process better than our static modeling.static modeling.