Examining the relationship between employee attitudes and a firm's financial performance: a theoretical framework and causal investigation.balanced scorecard Balanced Scorecard
A performance metric used in strategic management to identify and improve various internal functions and their resulting external outcomes. The balanced scorecard attempts to measure and provide feedback to organizations in order to assist in implementing (Kaplan Kaplan may refer to one of the following:
- An individual with the surname of Kaplan
- The origin and history of the surname Kaplan
- Kaplan, Inc., an education company
American educator, writer, and editor who founded the Nation (1865). , 1992), accounting researchers have conducted numerous studies that examine the relationship of non-financial measures with firm performance (see, for example, Ittner and Larcker, 1998; Hoque and James James, person in the Bible
James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship.
James, rivers, United States
James. , 2000; Banker et al., 2000; Ittner et al., 2003; Davis and Albright Al·bright , Horace Marden 1890-1987.
American conservationist and cofounder of the National Park Service. , 2004). Kaplan and Norton (1996) argue these non-financial measures may be better predictors of performance than traditional financial accounting measures.
The assumed relationship between non-financial measures and performance is that non-financial measures drive performance. Employee attitudes often are used as non-financial measures of performance. However, Schneider Schnei·der , Vreni Born 1964.
Swiss alpine skier. She won the overall World Cup in 1989, 1994, and 1995, was a four-time world champion, and earned five Olympic medals. et al. (2003b) have developed a model that suggests performance (i.e., financial outcomes) drives employee attitude, rather than the reverse. Our research empirically explores this relationship.
BACKGROUND AND MODEL DEVELOPMENT
There are important reasons for studying the links between financial performance and employee attitudes. Research suggests that when customers are more satisfied with a firm, they increase their loyalty which results in reducing price elasticities Price elasticities
The percentage change in quantity divided by a percentage change in the price. Answers the question: How much will the demand for my product decrease if I raise prices by 10%? , lowering market costs, and decreasing transaction costs Transaction Costs
Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). , thereby improving overall financial performance (Anderson Anderson, river, Canada
Anderson, river, c.465 mi (750 km) long, rising in several lakes in N central Northwest Territories, Canada. It meanders north and west before receiving the Carnwath River and flowing north to Liverpool Bay, an arm of the Arctic et al., 1994; Fornell, 1992; Reichheld and Sasser Sasser is
- The Sasser Pass (also Saser Pass, Saser-la) on the old caravan route between Ladakh and Yarkand.
- The Sasser computer worm.
- Jim Sasser, a Democrat who represented Tennessee in the senate from 1977 to 1995.
- Sasser, Georgia
- Sasser Cup
American writer of semifictional biographies, such as The Lion and the Throne (1957), a life of Sir Edward Coke. , 1985; Schneider et al., 1980 1992). When employees are more satisfied with their firms, they provide customers with better interactions, thereby increasing customer satisfaction.
In addition, numerous studies show that employee attitudes also contribute to organizational citizenship behaviors Organizational Citizenship Behaviors (OCBs) are a special type of work behavior that are defined as individual behaviors that are beneficial to the organization and are discretionary, not directly or explicitly recognized by the formal reward system. (OCBs) (Bateman Bateman might refer to: People
- Charles Bateman, architect
- C. Donald Bateman Chief Engineer, Flight Safety Avionics, Honeywell, Bellevue, WA. Inventor of EGPWS and older obsolete GPWS.
Acceptance of organizational goals and a willingness to exert effort on the organization's behalf is a characteristic of strong organizational commitment In the study of organizational behavior and Industrial/Organizational Psychology, organizational commitment is, in a general sense, the employee's psychological attachment to the organization. (Angle and Perry, 1981; Porter et al., 1974; Bridges and Harrison Harrison, town (1990 pop. 13,425), Hudson co., NE N.J., an industrial suburb on the Passaic River opposite Newark; inc. 1869. The town has several foundries. Its manufactures include plastics, paperboard, and metal products. , 2003; Colbert and Kwon, 2000). According to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. Mathieu and Zajac (1990) and Randall (1990), work outcomes, such as job performance, are linked to organizational commitment. Further, Westerman and Simmons (2007) find that work environment may play a predominant pre·dom·i·nant
1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant.
2. role in employee performance and commitment. Nouri and Parker (1996) argue that while self-interest is a powerfully motivating force in the workplace, individuals with strong organizational affiliations can be motivated mo·ti·vate
tr.v. mo·ti·vat·ed, mo·ti·vat·ing, mo·ti·vates
To provide with an incentive; move to action; impel.
mo by organizational interest (organizational commitment). Difficult goals are more likely to lead to significant performance gains if individuals are committed to achieving them (Webb, 2004). Mathieu and Zajac (1990) found organizational commitment to positively correlate with employee motivation and to correlate negatively with turnover and absenteeism ab·sen·tee·ism
1. Habitual failure to appear, especially for work or other regular duty.
2. The rate of occurrence of habitual absence from work or duty. . In addition, they found affective affective /af·fec·tive/ (ah-fek´tiv) pertaining to affect.
1. Concerned with or arousing feelings or emotions; emotional.
2. (attitudinal) commitment to have a stronger relationship with work outcomes than continuance The adjournment or postponement of an action pending in a court to a later date of the same or another session of the court, granted by a court in response to a motion made by a party to a lawsuit. or "calculative" commitment. (1)
Despite advances that have been made in understanding the relationship between employee attitudes and financial performance, there are still several shortcomings A shortcoming is a character flaw.
Shortcomings may also be:
- Shortcomings (SATC episode), an episode of the television series Sex and the City
tr.v. val·i·dat·ed, val·i·dat·ing, val·i·dates
1. To declare or make legally valid.
2. To mark with an indication of official sanction.
3. measures of the attitudinal variables of interest or designed the study to specifically test a model. Moreover, employee job satisfaction is often the only attitudinal variable investigated. There are many other potentially important attitudinal predictors such as pay satisfaction, commitment, or organizational justice Organizational justice is the study of people’s perception of fairness in organizations.
Organizational literature tends to focus on three specific forms of justice perceptions :
First, we begin by presenting a theoretical framework for understanding how employee attitudes should be related to financial performance. Second, drawing from the social psychology literature, we present evidence and test our hypothesis that firm performance predicts attitudes. Since our study is longitudinal lon·gi·tu·di·nal
Running in the direction of the long axis of the body or any of its parts. , we have several data points containing both financial and non-financial measures. We assess several employee attitudes, using existing, validated measures, and offer both research and practical implications for our findings.
While early research suggested that work-related behaviors were reflected in successful organizational outcomes (Argris, 1957; McGregor, 1960), most of this work focused more on individual outcomes rather than organization performance. More recent works (Harter et al., 2002; Ostroff, 1992; Ryan et al., 1996; Schneider et al., 2003b) have demonstrated specific relationships between financial performance and employee attitudes. Thus, research on the relationship between employee attitudes and a firm's financial performance has been investigated on two sides: the strength of that relationship, but more importantly, a search for causality causality, in philosophy, the relationship between cause and effect. A distinction is often made between a cause that produces something new (e.g., a moth from a caterpillar) and one that produces a change in an existing substance (e.g. .
The Quest for Verb 1. quest for - go in search of or hunt for; "pursue a hobby"
quest after, go after, pursue
look for, search, seek - try to locate or discover, or try to establish the existence of; "The police are searching for clues"; "They are searching for the Causality
Schneider et al. (2003b) originally proposed a model to support attitudes predicting performance; however, they found the opposite with many of their variables. These authors argued that results from the research of Porter and Lawler (1968) as well as Locke and Latham (1990) suggest that when organizations do well, employees can reap the benefits of that success through rewards (i.e., pay increases) which, in turn, lead to increased satisfaction or other work attitudes. Thus, when firms do well, this should lead to an increase in positive employee attitudes, consistent with the model depicted de·pict
tr.v. de·pict·ed, de·pict·ing, de·picts
1. To represent in a picture or sculpture.
2. To represent in words; describe. See Synonyms at represent. in Figure I. Ostroff (1992) also proposed that if performance causes attitudes, then an increase in, or improvement of, firm performance should translate into improved employee attitudes. The consistency principle con·sis·ten·cy principle
In psychology, the desire to be consistent, especially in attitudes and beliefs. would support these contentions as well; that is, if all is going well in a firm, employees should maintain positive beliefs and feelings congruent con·gru·ent
1. Corresponding; congruous.
a. Coinciding exactly when superimposed: congruent triangles.
b. with their knowledge of the firm's performance. Accordingly, and based on this theory and research:
H1: A firm's performance will have an impact on employee attitudes.
[FIGURE 1 OMITTED]
Field Site Description
The field site for this study was a community bank ("the bank") located in the southeast United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . The bank employed approximately 480 employees at over 45 branches and one headquarters location; all bank locations were contained within one state. The branches were grouped into 14 banking centers and these banking centers were divided into three geographic regions. The bank produced internal financial reports at the banking center, region and bank-wide level on a monthly basis.
Two separate web-based surveys were distributed to bank employees in October 2001 (survey 1) and July 2003 (survey 2). Each survey gathered similar information pertaining per·tain
intr.v. per·tained, per·tain·ing, per·tains
1. To have reference; relate: evidence that pertains to the accident.
2. to employee attitudes and behaviors as well as demographic information. For each survey, bank employees received an email from an executive vice-president asking them to participate in the survey. The email contained a link to a website that hosted the survey. Employees who participated had their names placed in a drawing for one of 10 cash prizes of $50.
Survey 1 generated 293 responses (a 61% response rate). A large majority of responses (79%) were from females and 62% of the responses were from individuals employed at the bank for less than four years. Employees in clerical positions (tellers, customer service representatives, loan assistants and administrative assistants) made up 62% of the responses; the remainder of the responses was from employees in non-clerical positions (such as branch presidents and headquarter head·quar·ter
v. head·quar·tered, head·quar·ter·ing, head·quar·ters Usage Problem
To provide with headquarters: professionals).
Survey 2 generated 364 responses (a 76% response rate). Female respondents In the context of marketing research, a representative sample drawn from a larger population of people from whom information is collected and used to develop or confirm marketing strategy. accounted for 81% in survey 2 and 61% of the responses were from employees employed at the bank for less than four years. Employees in clerical positions (tellers, customer service representatives, loan assistants and administrative assistants) made up 45% of the responses in survey 2. Finally, quarterly financial performance data were gathered for each banking center from December 2000 to September 2003.
Analyses were run using all data from both surveys as well as matching data between surveys 1 and 2. Although findings were consistent in both analyses, the purpose of our research was to demonstrate that bank performance would predict attitudes. To do this, we needed to assess a change in performance and how this change impacted attitudes in general. Thus, for purposes of our study, we used the full data set for these analyses.
Attitudinal Measures Collected in Surveys 1 and 2
Job Satisfaction. Due to the number of other constructs being investigated, a single-item measure of overall job satisfaction was used to minimize the number of questions on the employee survey. One-item satisfaction measures have been shown to be acceptable and valid measures (Scarpello and Campbell, 1983; Wanous et al., 1997).
Pay Satisfaction. A modified version of the Pay Satisfaction Questionnaire (PSQ PSQ Political Science Quarterly (journal)
PSQ Pipsqueak (gene)
PSQ Patient Satisfaction Questionnaire
PSQ Presidential Studies Quarterly ) (Heneman and Schwab, 1985) was used. Five items assessed each of the PSQ categories (level, benefits, raise, structure) and overall pay satisfaction on a scale of 1 = very dissatisfied dis·sat·is·fied
Feeling or exhibiting a lack of contentment or satisfaction.
dis·satis·fied to 7 = very satisfied. Cronbach's alpha Cronbach's (alpha) has an important use as a measure of the reliability of a psychometric instrument. It was first named as alpha by Cronbach (1951), as he had intended to continue with further instruments. was 0.88 at time 1 and 0.89 at time 2.
Organizational Commitment. The 12-item organizational commitment measure from O'Reilly and Chatman's (1986) work was used on a scale of 1 = strongly disagree to 7 = strongly agree. Items were summed to form a single construct. Reliabilities were 0.91 at time 1 and 0.88 at time 2.
Organizational Justice. Again, due to the size of our survey, a reduced measure of organizational justice was used. Six items representing perceptions of procedural fairness and three items representing distributive dis·trib·u·tive
a. Of, relating to, or involving distribution.
b. Serving to distribute.
2. fairness were taken from Moorman's (1991) measure of organizational justice. While Moorman also assessed interactional justice Interactional Justice' - A degree to which the people affected by decision are treated with politeness, dignity, and respect. Focusing on the interpersonal treatment people receive when procedures arre implemented. , those items were not used in our study. Using a scale of 1 = strongly disagree to 7 = strongly agree, respondents indicated the degree to which they perceived fairness in the firm. Reliability estimates for procedural fairness were 0.91 at time 1 and 0.93 at time 2. Cronbach's alphas were 0.96 at time 1 and 0.96 at time 2 for distributive justice DISTRIBUTIVE JUSTICE. That virtue, whose object it is to distribute rewards and punishments to every one according to his merits or demerits. Tr. of Eq. 3; Lepage, El. du Dr. ch. 1, art. 3, Sec. 2 1 Toull. n. 7, note. See Justice. .
Financial Performance Measure. Consistent with similar prior research, (Schneider et al., 2003b; Ittner et al., 2003), we used return on assets Return on assets (ROA)
Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets). (ROA ROA
See: Return on assets
See: Right of accumulation
See return on assets (ROA). ) as a measure of financial performance. Improving ROA was a shared goal of each banking center and the measure represented a direct and independent assessment of performance. Further, because our study used several business units within the same organization, we avoided several common concerns that arise when comparing financial and attitudinal data cross-sectionally, such as industry differences, economic differences between various regions, and corporate culture dynamics.
Data Analysis Procedures
The goal of this research was to test our hypothesis that financial performance impacts employee attitudes.
According to Figure I, if financial performance is a predictor of employee attitudes, a significant difference in employee attitudes for banking centers with differing financial performance should be observed at some point in time after the observed financial performance. To test this assertion, banking centers were divided into "high" and "low" groups based on their financial performance. Attitudes of employees in the "high"-performing banking centers were compared to employee attitudes of those in the "low"-performing banking centers. Banking centers were segmented by ROA level and by change in ROA for various time periods to determine if either predicted employee attitudes. The "high" and "low" groups of banking centers consisted of the top third and bottom third of banking centers as they ranked on ROA level and change. Comparing the attitude measures of those banking centers in the top third to those in the bottom third ensured that a significant difference existed in ROA measures for the groups in the comparison. Both sets of analyses described above were conducted on survey 1 data and repeated with survey 2 data to test our assertions at two different points in time.
Average intercorrelations across time among the key attitudinal variables are presented in Table 1. Tables 2 (time 1) and 3 (time 2) present the results of the statistical tests comparing employee attitudes for employees in higher ROA-performing banking centers to employees in lower ROA-performing banking centers. Significant differences were found in employee attitudes using both levels of ROA and changes in ROA as a means for segmenting attitude data.
When comparing employee attitudes using levels of ROA as a predictor, employees in banking centers with lower levels of ROA (one and two quarters prior to measuring attitude levels) were observed to have higher attitude levels compared to employees in banking centers with greater ROA performance. Many of these differences were statistically significant, as indicated in Tables 2 and 3. These findings are consistent across both survey periods and are opposite of the expectations derived from theory and previous studies.
Comparing employee attitudes using changes in ROA as a predictor, employees in banking centers that are experiencing greater positive changes in ROA (one and two quarters prior to measuring attitude levels) were observed to have higher attitude levels compared to employees in banking centers experiencing little or negative changes in ROA. Most differences are statistically significant and all are in the expected direction; findings are consistent across both survey periods.
Post-hoc Analysis--Employee Attitudes as Predictors of Financial Performance
Based on the equivocal EQUIVOCAL. What has a double sense.
2. In the construction of contracts, it is a general rule that when an expression may be taken in two senses, that shall be preferred which gives it effect. Vide Ambiguity; Construction; Interpretation; and Dig. findings of past research investigating causality and our findings in Tables 2 and 3, we tested the reverse hypothesis that attitudes predict firm performance. No evidence was found that employee attitudes are related to future financial performance. With one exception (see below), no significant differences existed between ROA levels or changes in ROA for banking centers with higher levels of employee attitudes when compared to banking centers with lower levels of employee attitudes. These results are constant for a period of one year after the collection of attitudinal data for survey 1. (2)
The one exception merits discussion. Banking centers with higher pay satisfaction in October 2001 had a significantly lower level of ROA performance in December 2001 than banking centers with lower pay satisfaction in October 2001. This result is inconsistent with expected relationships and does not hold for tests repeated with similar data collected in July 2003 (when compared to ROA levels for September 2003).
Despite a number of advances in our understanding of how employee attitudes are linked with a firm's financial performance, research to date has still been unable to definitively determine the causal causal /cau·sal/ (kaw´z'l) pertaining to, involving, or indicating a cause.
relating to or emanating from cause. relationship between the two constructs. Our research differs from previous attitude/performance research in that it uses multiple validated measures of attitudes, takes place within a single organization, and collects attitudinal data at two different points in time. These combined research characteristics strengthen the research design and allow for more confidence in drawing conclusions from the results.
Our findings suggest financial performance leads to employee attitudes, most specifically when the financial performance improved. The findings are of interest to researchers (and practitioners) in a number of important ways. Most notably, we found that when exploring the relationship between financial performance and employee attitudes, it was important to investigate changes in financial performance rather than just levels of financial performance. When only levels of ROA were investigated, attitude levels, in general, were significantly higher in banking centers that had performed the worst financially and lower in banking centers that had performed the best financially. These findings were contrary to the expectations derived from theory and prior research. However, when looking at the changes in financial performance over three- and six-month periods preceding the collection of attitudinal data, banking centers that experienced the highest positive change in ROA had employees with significantly greater attitude levels than employees in banking centers that experienced the lowest change in financial performance. These results support Ostroff's (1992) suggestion that the positive outcomes likely to occur when a firm does well translate to more satisfied employees. In follow-up follow-up,
n the process of monitoring the progress of a patient after a period of active treatment.
follow-up plan discussions, the Vice President of the bank at which we conducted our study confirmed that employee compensation packages were affected by their banking center's financial performance and that employees at the bank received monthly financial data, so they were well aware of the potential benefits to them when their banking center did well. However, in our study, we extend prior research beyond just job satisfaction to include other attitudinal variables, including organizational commitment, organizational justice and pay satisfaction. Not only were employees in financially-improving banking centers more satisfied with their job, they were significantly more committed to the organization, more satisfied with their pay, and perceived greater organizational fairness than their counterparts in banking centers that were not experiencing similar financial performance. Moreover, this finding was present for two different time periods ill which we gathered attitudinal data. These results suggest that when firms do well financially, that success has potentially far-ranging effects on many different employee attitudes.
The findings from this research provide some practical/managerial applications. When a firm does well financially, there is the potential for positive outcomes for employees. Isen and her colleagues (see Isen and Baron baron
Title of nobility, ranking in modern times immediately below a viscount or a count (in countries without viscounts). The wife of a baron is a baroness. Originally, in the early Middle Ages, the term designated a tenant of whatever rank who held a tenure of barony , 1991) have shown that doing nice things for someone can create positive mood or affect in individuals. In turn, when individuals are in positive moods, positive outcomes occur (OCBs, creativity, etc.). Thus, ensuring employees are informed when a firm is doing well, especially if that favorable fa·vor·a·ble
1. Advantageous; helpful: favorable winds.
2. Encouraging; propitious: a favorable diagnosis.
3. outcome will ultimately lead to other positive outcomes for employees (e.g., raises, bonuses), can create positive affect in employees, explaining their positive attitudes. Thus, an important consideration for firms is to implement communication channels that convey successes to individuals in the firm.
When a firm performs well and employees benefit from that success, it is easy to see how those employees' attitudes should be positive (or the reverse if a firm performs poorly); however, those favorable attitudes should then translate into positive individual behaviors that ultimately contribute to a firm's success. Thus, organizations need to constantly reinforce positive attitudes. As discussed earlier, the culture of the firm is the ideal way to develop and strengthen those positive attitudes and behaviors and create a climate for valuing human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. as encouraged by Schneider and his colleagues (Schneider and Bowen, 1993; Schneider et al., 2003a; Schneider et al., 1994).
Limitations and Future Research
This study was subject to several important limitations. First, it was conducted in only one organization within one industry. While using a single firm helps reduce some of the effects of potential moderators such as different cultures, industry effects, etc., future research needs to test the hypothesized model in other industries and firms. Moreover, unlike the heavily customer-driven banking industry, other non-customer-oriented businesses may yield different results.
Another limitation is that this study only investigated the link between employee attitudes and financial performance. There are many other potential firm performance outcomes that could have differential effects on employee attitudes. For example, corporate citizenship Corporate Citizenship
The extent to which businesses are socially responsible in meeting legal, ethical and economic responsibilities placed on them by shareholders. The aim it to create higher standards of living and quality of life in the community in which it operates, while has been shown to impact financial performance (Verschoor, 2002; Waddock and Graves, 1997). Since the social performance of a firm has the potential to be highly visible, particularly if the firm is behaving in a socially irresponsible ir·re·spon·si·ble
1. Marked by a lack of responsibility: irresponsible accusations.
2. Lacking a sense of responsibility; unreliable or untrustworthy.
3. way, such actions should be investigated to the extent that they impact employee attitudes or at least moderate the relationship between financial performance and attitudes. Thus, the impact of a firm's social performance on attitudes is another fruitful fruit·ful
a. Producing fruit.
b. Conducive to productivity; causing to bear in abundance: fruitful soil.
2. area for future research.
Another important area for future research could be to investigate the timing sensitivity of the relationships explored in this study. There is no specific theory on the lasting effects of financial performance on attitudes. Such findings would benefit firms by providing a framework for the frequency of communicating successful firm outcomes, but also when to prepare for the effects of potentially negative attitudes should the firm experience financially difficult times.
While causality has been an elusive finding in the relationship between employee attitudes and firm performance, this study extends existing research by presenting and testing a theoretically- and empirically-driven model that illustrates financial performance is likely to lead to employee attitudes. Both practical and empirical implications are offered along with several potential avenues for future research in continuing its efforts to unravel the intricacies surrounding sur·round
tr.v. sur·round·ed, sur·round·ing, sur·rounds
1. To extend on all sides of simultaneously; encircle.
2. To enclose or confine on all sides so as to bar escape or outside communication.
n. this relationship. How a firm performs financially does have implications for the way its employees feel about the company.
Anderson, E. W., C. Fornell, and D. R. Lehmann. 1994. "Customer Satisfaction, Market Share, and Profitability: Differences between Goods and Services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. ." Journal of Marketing Research (July): 53-66.
Angle, H. L. and J. L. Perry. 1981. "An Empirical Assessment of Organizational Commitment and Organizational Effectiveness Organizational effectiveness is the concept of how effective an organization is in achieving the outcomes the organization intends to produce. The idea of organizational effectiveness is especially important for non-profit organizations as most people who donate money to non-profit ." Administrative Science Quarterly Administrative Science Quarterly, founded in 1956, is one of the most eminent academic journals in the field of organizational studies. It is published by Cornell University.
People claimed to have been involved as founders include James D. 26: 1-14.
Argris, C. 1957. Personality and Organization. New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY: HarperCollins.
Banker, R. D., G. Potter A potter is someone who makes pottery.
Potter may also refer to: People
- Potter, Alonzo, Bishop of Pennsylvania
- Potter, Barnaby (1577–1642), Bishop of Carlisle
- Potter, Beatrix (1866–1943), British children's writer
Bateman, T. S. and D. W. Organ. 1983. "Job Satisfaction and the Good Soldier: The Relationship between Affect and Employee Citizenship." Academy of Management Journal 26: 587-595.
Becker, H. 1960. "Notes on the Concept of Commitment." American Journal of Sociology Established in 1895, the American Journal of Sociology (AJS) is the oldest scholarly journal of sociology in the United States. It is published bimonthly by The University of Chicago Press.
AJS is edited by Andrew Abbott of the University of Chicago. 66: 32-42.
Bridges, S. and J. K. Harrison. 2003. "Employee Perceptions of Stakeholder stakeholder n. a person having in his/her possession (holding) money or property in which he/she has no interest, right or title, awaiting the outcome of a dispute between two or more claimants to the money or property. Focus and Commitment to the Organization." Journal of Managerial Issues 15 (4): 498-509.
Colbert, A. and G. Kwon. 2000. "Factors Related to the Organizational Commitment of College and University Auditors AUDITORS, practice. Persons lawfully appointed to examine and digest accounts referred to them, take down the evidence in writing, which may be lawfully offered in relation to such accounts, and prepare materials on which a decree or judgment may be made; and to report the whole, together ." Journal of Managerial Issues 12 (4): 484-501.
Davis, S. and T. Albright. 2004. "An Investigation of the Effect of Balanced Scorecard Implementation on Financial Performance." Management Accounting Research 15 (2): 135-153.
Fornell, C. 1992. "A National Customer Satisfaction Barometer: The Swedish Experience." Journal of Marketing (January): 6-21.
George, J. 1991. "State or Trait trait (trat)
1. any genetically determined characteristic; also, the condition prevailing in the heterozygous state of a recessive disorder, as the sickle cell trait.
2. a distinctive behavior pattern. : Effects of Positive Mood on Pro-social Behavior at Work." Journal of Applied Psychology Journal of Applied Psychology is a publication of the APA. It has a high impact factor for its field. It typically publishes high quality empirical papers.
www.apa. 76: 299-307.
Harter, J. K., F. L. Schmidt, and T. L. Hayes. 2002. "Business-unit-level Relationship between Employee Satisfaction, Employee Engagement, and Business Outcomes: A Meta-analysis meta-analysis /meta-anal·y·sis/ (met?ah-ah-nal´i-sis) a systematic method that takes data from a number of independent studies and integrates them using statistical analysis. ." Journal of Applied Psychology 87 (2): 268-279.
Heneman, H. G. III and D. P. Schwab. 1985. "Pay Satisfaction: Its Multidimensional mul·ti·di·men·sion·al
Of, relating to, or having several dimensions.
multi·di·men Nature and Measurement." International Journal of Psychology 20:129-141.
Hoque, Z. and W. James. 2000. "Linking Balanced Scorecard Measures to Size and Market Factors: Impact on Organizational Performance Organizational performance comprises the actual output or results of an organization as measured against its intended outputs (or goals and objectives).
Specialists in many fields are concerned with organizational performance including strategic planners, operations, ." Journal of Management Accounting Research 12: 1-17.
Isen, A. M. and R. A. Baron. 1991. "Positive Affect as a Factor in Organizational Behavior." Research in Organizational Behavior 13: 1-53.
Ittner, C. and D. F. Larcker. 1998. "Are Nonfinancial Measures Leading Indicators Leading Indicator
A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators are used to predict changes in the economy, but are not always accurate. of Financial Performance? An Analysis of Customer Satisfaction. "Journal of Accounting Research 36 (Supplement): 1-35.
--, --, and T. Randall. 2003. "Performance Implications of Strategic Performance Measurement in Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject.
Please [ improve this article] or discuss the issue on the talk page. Firms." Accounting, Organizations and Society 28:715-741.
Kaplan, R. S. and D. P. Norton. 1996. The Balanced Scorecard: Translating Strategy into Action. Boston, MA: Harvard Business School Harvard Business School, officially named the Harvard Business School: George F. Baker Foundation, and also known as HBS, is one of the graduate schools of Harvard University. Press.
Kaplan, R. and D. Norton. 1992. "The Balanced Scorecard--Measures that Drive Performance." Harvard Business Review Harvard Business Review is a general management magazine published since 1922 by Harvard Business School Publishing, owned by the Harvard Business School. A monthly research-based magazine written for business practitioners, it claims a high ranking business readership and 70 (1): 71-79.
Konovsky, M. A. and D. W. Organ. 1996. "Dispositional and Contextual Determinants of Organizational Citizenship Behavior." Journal of Organizational Behavior 17: 253-266.
Locke, E. A. and G. P. Latham. 1990. A Theory of Goal Setting and Task Performance. Englewood Cliffs, NJ: Prentice Hall Prentice Hall is a leading educational publisher. It is an imprint of Pearson Education, Inc., based in Upper Saddle River, New Jersey, USA. Prentice Hall publishes print and digital content for the 6-12 and higher education market. History
In 1913, law professor Dr. .
Mathieu, J. E. and D. M. Zajac. 1990. "A Review and Meta-analysis of the Antecedents, Correlates, and Consequences of Organizational Commitment." Psychological Bulletin 108:171-194.
McGregor, D. M. 1960. The Human Side of Enterprise. New York, NY: McGraw-Hill.
Moorman, R. H. 1991. "Relationship between Organizational Justice and Organizational Citizenship Behavior: Do Fairness Perceptions Influence Employee Citizenship?" Journal of Applied Psychology 76 (6): 845-855.
Nouri, H. and R. J. Parker. 1996. "The Effect of Organizational Commitment on the Relation between Budgetary Participation and Budgetary Slack 1. (operating system) slack - Internal fragmentation. Space allocated to a disk file but not actually used to store useful information.
2. (jargon) slack ." Behavioral behavioral
pertaining to behavior.
see psychomotor seizure. Research in Accounting 8: 74-90.
O'Reilly, C. and J. Chatman. 1986. "Organizational Commitment and Psychological Attachment: The Effects of Compliance, Identification, and Internalization Internalization
A decision by a brokerage to fill an order with the firm's own inventory of stock.
When a brokerage receives an order they have numerous choices as to how it should be filled. on Prosocial Behavior." Journal of Applied Psychology 71 (3): 492-499.
Organ, D. W. 1988. Organizational Citizenship Behavior': The Good Soldier Syndrome. Lexington, MA: Lexington Books.
Ostroff, C. 1992. "The Relationship between Satisfaction, Attitudes, and Performance: An Organizational Level Analysis." Journal of Applied Psychology 77 (6): 963-974.
Porter, L. W. and E. E. Lawler III. 1968. Managerial Attitudes and Performance. Homewood, IL: Irwin.
--, R. M. Steers, R. T. Mowday, and P. V. Boulian. 1974. "Organizational Commitment, Job Satisfaction, and Turnover among Psychiatric psy·chi·at·ric
Of or relating to psychiatry.
psychiatric adjective Pertaining to psychiatry, mental disorders Technicians." Journal of Applied Psychology 59 (5): 603-609.
Randall, D. M. 1990. "The Consequences of Organizational Commitment: Methodological Investigation." Journal of Organizational Behavior 11: 361-378.
Reichheld, E F. and W E. Sasser, Jr. 1990. "Zero Defections: Quality Comes to Services." Harvard Business Review (September/October): 105-111.
Ryan, A. M., J. M. Schmit, and R. Johnson. 1996. "Attitudes and Effectiveness: Examining Relations at an Organizational Level." Personnel Psychology 49 (4): 853-882.
Scarpello, V. and J. P. Campbell. 1983. "Job Satisfaction: Are All the Parts There?" Personnel Psychology 36: 577-600.
Schneider, B. and D. E. Bowen. 1993. "The Service Organization: Human Resources Management is Crucial." Organizational Dynamics 21 (4): 39-52.
--and--. 1985. "Employee and Customer Perceptions of Service in Banks: Replication In database management, the ability to keep distributed databases synchronized by routinely copying the entire database or subsets of the database to other servers in the network.
There are various replication methods. and Extension." Journal of Applied Psychology 70: 423-433.
--, E. G. Godfrey, S. C. Hayes, M. Huang, B. Lim, L. Nishii, J. L. Raver rave
v. raved, rav·ing, raves
1. To speak wildly, irrationally, or incoherently.
2. To roar; rage: The storm raved along the coast.
3. , and J. C. Ziegert. 2003a. "The Human Side of Strategy: Employee Experiences of Strategic Mignment in a Service Organization." Organizational Dynamics 32 (2): 122-141.
--, S. K. Gunnarson, and K. Niles-Jolly. 1994. "Creating the Climate and Culture of Success." Organizational Dynamics 23 (1): 17-29.
--, P. J. Hanges, D. B. Smith, and A. N. Salvaggio. 2003b. "Which Comes First: Employee Attitudes or Organizational Financial and Market Performance ?" Journal of Applied Psychology 88 (5): 836-851.
--, J. J. Parkington, and N. M. Buxton. 1980. "Employee and Customer Perceptions of Service in Banks." Administrative Science Quarterly 25 (2): 252-267.
Smith, C. W., D.W. Organ, and J. P. Near. 1983. "Organizational Citizenship Behavior: Its Nature and Antecedents." Journal of Applied Psychology 68: 655-663.
Verschoor, C. C. 2002. "Best Corporate Citizens Have Better Financial Performance." Strategic Finance 83 (7): 20-23.
Waddock, S. A. and S. B. Graves. 1997. "The Corporate Social Performance-Financial Performance Link." Strategic Management Journal 18 (4): 303-319.
Wanous, J. P., A. E. Reichers, and M.J. Hudy. 1997. "Overall Job Satisfaction: How Good Are Single-Item Measures?" Journal of Applied Psychology 82 (2): 247-252.
Webb, A. R. 2004. "Managers' Commitment to the Goals Contained in a Strategic Performance Measurement System." Contemporary Accounting Research 21 (4): 925-958.
Westerman, J. and B. Simmons. 2007. "The Effects of Work Environment on the Personality-Performance Relationship: An Exploratory Study." Journal of Managerial Issues 19 (2): 288-306.
Williams, L.J. and S. E. Anderson. 1991. "Job Satisfaction and Organizational Commitment as Predictors of Organizational Citizenship and In-role Behaviors." Journal of Management 17 (3): 601-617.
Diane E. Johnson
Associate Professor of Management and Miles-Rose Professor of Leadership
The University of Alabama The University of Alabama (also known as Alabama, UA or colloquially as 'Bama) is a public coeducational university located in Tuscaloosa, Alabama, USA. Founded in 1831, UA is the flagship campus of the University of Alabama System.
Stan STAN Stanchion
STAN Stärke- und Ausrüstungsnachweis (German)
Stan Standard Man (human patient simulator)
STAN SEMCIP Technical Assistance Network
STAN System Trace Audit Number
STAN Star Trek Area Network B. Davis
Guerry Associate Professor of Accounting
University of Tennessee at Chattanooga UTC was founded in 1886 as then-private Chattanooga University (later known as Grant College). In 1907, the university changed its name to the University of Chattanooga. In 1969, the university merged with Chattanooga City College to form the modern UTC campus as part of the University
Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM).
The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs L. Albright
Professor of Accounting and J. Reese Phifer Faculty Fellow
The University of Alabama
(1) "Affective commitment is characterized char·ac·ter·ize
tr.v. character·ized, character·iz·ing, character·iz·es
1. To describe the qualities or peculiarities of: characterized the warden as ruthless.
2. by: (1) a strong belief in and acceptance of the organization's goals and values and (2) a willingness to exert considerable effort on behalf of the organization" (Porter et al., 1974: 604). Continuance (or calculative) commitment originates in the perceived costs associated with leaving the organization (e.g., loss of benefits and seniority) (Becker, 1960).
(2) We conducted these statistical tests using financial data for up to two years after Survey 1 and found similar results. Our statistical analysis in this section relied on comparing two groups of five ROA measures. Due to the small number of observations in each group, we also performed nonparametric nonparametric
said of statistical techniques which do not depend on the data having a normal or some other definable distribution. statistical tests and found similar results. The results of the second year comparisons and nonparametric tests were omitted for parsimony par·si·mo·ny
1. Unusual or excessive frugality; extreme economy or stinginess.
2. Adoption of the simplest assumption in the formulation of a theory or in the interpretation of data, especially in accordance with the rule of .
Table 1 Descriptive Statistics and Average Intercorrelations of Measures (with Cronbach's Alpha Coefficients) Measure Mean SD N 1. Job Satisfaction 6.15 1.03 660 2. Pay Satisfaction 4.61 1.39 640 3. Organizational Commitment 5.71 0.91 641 4. Procedural Justice 5.07 1.26 651 5. Distributive Justice 4.65 1.68 654 Measure 1 2 3 4 5 1. Job Satisfaction 2. Pay Satisfaction 0.52 (.88) 3. Organizational Commitment 0.61 0.58 (.90) 4. Procedural Justice 0.55 0.60 0.54 (.92) 5. Distributive Justice 0.47 0.77 0.55 0.65 (.97) Note: Descriptive statistics, correlations, and Cronbach's alpha data are for the combined data set for both surveys. Cronbach's alpha is located on the diagonal. Table 2 Relationships between Employee Attitudes and ROA Performance Financial Performance as a Predictor of Employee Attitudes Survey 1 (collected October 2001) Organizational Job ROA Data Commitment Satisfaction (Predictor) (a) Mean SD Mean SD March 2001 HIGH (N = 53) 5.28 1.09 5.96 1.11 LOW (N = 73) 5.90 0.82 6.14 1.00 F-Stat 13.349 ** 1.013 June 2001 HIGH (N = 60) 5.15 1.04 5.72 1.24 LOW (N = 77) 5.54 1.18 5.85 1.36 F-Stat 4.149 ** 0.334 Sept 2001 HIGH (N = 70) 5.34 1.03 5.90 0.95 LOW (N = 69) 5.87 0.81 6.24 0.86 F-Stat 11.158 ** 3.805 [DELTA] March-Sept 2001 HIGH (N = 46) 5.91 0.82 6.42 0.65 LOW (N = 89) 5.13 1.16 5.62 1.36 F-Stat 16.867 ** 14.925 [DELTA] June-Sept 2001 HIGH (N = 45) 6.08 0.68 6.49 0.62 LOW (N = 70) 5.01 1.24 5.57 1.40 F-Stat 27.935 ** 17.822 ** Pay Distributive ROA Data Satisfaction Justice (Predictor) (a) Mean SD Mean SD March 2001 HIGH (N = 53) 4.20 1.37 4.04 1.65 LOW (N = 73) 4.77 1.31 4.71 1.64 F-Stat 5.558 * 5.299 * June 2001 HIGH (N = 60) 4.04 1.27 3.90 1.67 LOW (N = 77) 4.27 1.57 4.35 1.74 F-Stat 0.875 2.319 Sept 2001 HIGH (N = 70) 4.28 1.36 4.11 1.72 LOW (N = 69) 4.79 1.36 4.76 1.65 F-Stat 4.917 * 5.247 * [DELTA] March-Sept 2001 HIGH (N = 46) 4.77 1.36 4.78 1.64 LOW (N = 89) 3.90 1.46 3.91 1.65 F-Stat 11.078 ** 8.689 * [DELTA] June-Sept 2001 HIGH (N = 45) 5.03 1.27 5.01 1.58 LOW (N = 70) 3.73 1.46 3.80 1.70 F-Stat 23.900 ** 14.616 ** Procedural ROA Data Justice (Predictor) (a) Mean SD March 2001 HIGH (N = 53) 4.91 1.20 LOW (N = 73) 5.26 1.03 F-Stat 3.169 June 2001 HIGH (N = 60) 4.65 LOW (N = 77) 5.09 1.33 F-Stat 3.918 * Sept 2001 HIGH (N = 70) 4.85 LOW (N = 69) 5.35 1.09 F-Stat 6.06 * [DELTA] March-Sept 2001 HIGH (N = 46) 5.21 LOW (N = 89) 4.80 1.36 F-Stat 2.848 [DELTA] June-Sept 2001 HIGH (N = 45) 5.35 1.20 LOW (N = 70) 4.65 1.46 F-Stat 7.163 ** (a) Represents high and low groupings of banking centers based on either the level or change in ROA for the period shown. Each group of banking centers includes the top (or bottom) five centers based on ROA performance. * Significant at the 0.05 level (two-tailed test); ** Significant at the 0.01 level (two-tailed test). Table 3 Relationships between Employee Attitudes and ROA Performance Financial Performance as a Predictor of Employee Attitudes Survey 2 (collected July 2003) Organizational Job Commitment Satisfaction ROA Data (Predictor)a Mean SD Mean SD Dec 2002 HIGH (N = 76) 5.45 0.99 5.92 1.14 LOW (N = 119) 5.90 0.74 6.38 0.82 F-Stat 13.257 ** 10.895 ** March and June 2003 HIGH (N = 89) 5.59 0.94 6.01 1.05 LOW (N = 106) 5.84 0.79 6.36 0.89 F-Stat 3.882 ** 6.688 ** [DELTA] Dec-Jun 2003 HIGH (N = 89) 6.00 0.75 6.41 0.82 LOW (N = 98) 5.68 0.87 6.18 0.94 F-Stat 7.393 ** 3.262 [DELTA] March-Jun 2003 HIGH (N = 97) 5.89 0.81 6.40 0.80 LOW (N = 100) 5.63 0.91 6.10 0.99 F-Stat 4.761 * 5.913 * Pay Distributive ROA Data Satisfaction Justice (Predictor)a Mean SD Mean SD Dec 2002 HIGH (N = 76) 4.19 1.49 4.08 1.73 LOW (N = 119) 4.80 1.27 4.98 1.59 F-Stat 9.398 ** 14.351 ** March and June 2003 HIGH (N = 89) 4.47 1.46 4.37 1.73 LOW (N = 106) 4.66 1.32 4.84 1.65 F-Stat 0.918 4.035 * [DELTA] Dec-Jun 2003 HIGH (N = 89) 4.95 1.36 5.15 1.61 LOW (N = 98) 4.60 1.33 4.62 1.59 F-Stat 3.265 5.250 ** [DELTA] March-Jun 2003 HIGH (N = 97) 4.80 1.34 5.12 1.49 LOW (N = 100) 4.56 1.43 4.43 1.71 F-Stat 1.593 9.251 ** Procedural ROA Data Justice (Predictor)a Mean SD Dec 2002 HIGH (N = 76) 4.55 1.35 LOW (N = 119) 5.24 1.24 F-Stat 13.723 ** March and June 2003 HIGH (N = 89) 4.79 1.34 LOW (N = 106) 5.14 1.29 F-Stat 3.609 [DELTA] Dec-Jun 2003 HIGH (N = 89) 5.35 1.26 LOW (N = 98) 5.02 1.19 F-Stat 3.440 [DELTA] March-Jun 2003 HIGH (N = 97) 3.52 1.18 LOW (N = 100) 4.82 1.34 F-Stat 7.88 ** (a) Represents high and low groupings of banking centers based on either the level or change in ROA for the period shown. Each group of banking centers includes the top (or bottom) five centers based on ROA performance. * Significant at the 0.05 level (two-tailed test); ** Significant at the 0.01 level (two-tailed test).
|Printer friendly Cite/link Email Feedback|
|Author:||Johnson, Diane E.; Davis, Stan B.; Albright, Thomas L.|
|Publication:||Journal of Managerial Issues|
|Date:||Sep 22, 2009|
|Previous Article:||Examining managerial thinking style, EQ, and organizational commitment.|
|Next Article:||The relationship of locus of control and motives with psychological ownership in organizations.|