Relationship of job satisfaction and organizational commitment: A Field study in insurance sector
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Date
2015
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Uva Wellassa University of Sri Lanka
Abstract
“Employee satisfaction” and “organizational commitment” are two main concepts associated with
the retention of personnel in a variety of occupational settings. Job satisfaction is affected by
personal and organizational factors, which cause an emotional reaction affecting organizational
commitment (Mowday, Steers & Porter 1979).Organizational Commitment is a behavioral situation
which explains further as the power of identification and involvement of an individual with a
certain organization (Porter, steers Mowday and Boullan 1974). Job satisfaction influences people’s
attitude towards their jobs and various aspects of their jobs (Spector 1997).
This study assessed the relationship between job satisfaction and organizational commitment
among insurance agents in Colombo district. There are contradictory findings relating to the
relationship between job satisfaction and organizational commitment. Suma, S. and Lesha, J. (2013)
stated that there is a positive strong relationship between job satisfaction and organizational
commitment, while Currivan(1999) and Malik, M. E et.al (2010) revealed that there is a negative
relationship between job satisfaction and organizational commitment. Moreover, Kang-Lin
Chao(2010) concluded that there is a no relationship between job satisfaction and organizational
commitment. Further, According to Insurance Board of Sri Lanka annual reports, there were 65,000
agents who worked in the field in 2010 and it has rapidly decreased to the 32,651 in 2011. This
study empirically evaluated eight job satisfaction dimensions (pay, promotion, supervision, fringe
benefits, operating conditions, co-workers nature of work and communication) and their impact on
organizational commitment.
Methodology
One hundred insurance agents who were selected from the 5 insurance companies which have
highest contribution to the total number of agents with reference to Colombo district were included
in the sample. Primary data were gathered through an adopted questionnaire. Descriptive analysis,
correlation coefficient analysis and multiple linear regression analysis were used as data analysis
technique.
Results and Discussion
In this study, it was found that the most of the insurance agents agree with the existing level of job
satisfaction and organizational commitment in insurance sector. Furthermore the study revealed that
under the independent variable, majority of the insurance agents have agreed with the existing level
of pay, promotion, supervision, fringe benefits, coworkers, nature of work and co mmunication
while moderately agree with the operating conditions. In the Organizational Commitment
dimensions most of the agents have agreed with affective commitment and normative commitment
whereas moderately agree with continuance commitment. Moreover it revealed that there is a
positive relationship between job satisfaction and organizational commitment
Correlation between the job satisfaction (independent variable) and organizational commitment
(dependent variable) was 0.656 and which implied that there was a moderate positive relationship
between job satisfaction and organizational commitment. Fringe benefits dimension (0.768), pay
(0.563), operating conditions (0.637), coworkers (0.554) and nature of work (0.568) had strong
positive relationship though promotion (0.471) has weak positive relationship with organizational
commitment.
According to multiple regression analysis, pay, promotion, fringe benefits, operating conditions,
nature of work and communication were highly significant for the model as its p-values were less
than 0.05.
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Keywords
Management, Human Resource Management, Entrepreneurship and management, Job Satisfaction