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To Analyze the Organizational Commitment

of Banking Employees in Karachi

A Research Project

Submitted to

Dadabhoy Institute of Higher EducationKarachi

In Complete Fulfillmentof the Requirement of the Degree

Masters in Business Administration (Finance)

bySyed Habib ur Rehman

June 2011



ABSTRACT

To Analyze the Organizational Commitment

of Banking Employees in Karachi

The primary purpose of the study was to determine the degree of organizational

commitment of employees in banks of Karachi. The scope of the study was

limited to all the banks employees of Karachi. Four hypotheses were formulatedfor the study. All the hypotheses were related to the demographic variables of

type of gender, martial status, age and year of experience. The population of the

study consisted of all the banking employees of Karachi. So, stratified random

sampling was used incorporating two principles of classification: type of control

and gender. The total sample size consisted of 36 employees drawn from 3

banks. One research instrument, a convention made questionnaire of 20

statements were used.

Out of the four hypotheses, three hypotheses were rejected and one was

accepted. It was concluded, (1) the married employees were more committed

than the unmarried employees of banks in Karachi, (2) the more experienced

employees were more committed than the less experienced employees of banks

in Karachi, (3) the older employees were more committed than the younger

employees of banks in Karachi and (4) no significant difference was found

between the male and female banking employees of Karachi.

The data were analyzed using the Graphs and Mean (X). In the light of the

findings, several actual recommendations were made.



CERTIFICATE OF APPROVAL

This is certified that Syed Habib ur Rehman has successfully

completed his research study entitled “To Analyze the Organizational

Commitment of Banking Employees in Karachi” under my supervision

and that his research project meets the highest master’s standards as

set by Dadabhoy Institute of Higher Education.

DATED: JUNE, 2011 (Dr. AHMED SAEED)

RESEARCH SUPERVISOR



ACKNOWLEDGEMENTS

First and for most, I express my deep sense of thankfulness to my research

supervisor Dr. Ahmed Saeed for his able guidance and continuous

encouragement through the study. Without his guidance and encouragement, my

research project would not have seen the light of the day.

Next, I would like to express my sincere thanks to the entire faculty members of

Dadabhoy Institute of Higher Education whose scholarly assistance made it

possible for me to complete my research project.

Last, a very special thanks to my friends and family members without their love

and moral support I would not have been able to complete this task successfully.

Syed Habib ur Rehman



TABLE OF CONTENTS

Page

Abstract i

Certificate of Approval ii

Acknowledgements iii

List of Tables vi

Chapter One – INTRODUCTION

A. Background 1

B. Purpose 2

C. Hypotheses 2

D. Justification 3

E. Scope 3

F. Definition of Key Terms 3

G. Basic Assumptions 4

Chapter Two – REVIEW OF THE RELATED LITERATURE

A. Importance 5

B. Definition 7

C. Types 8

D. Conceptual Frameworks 9

E. Measuring Instruments 10

F. Research Studies 11



Chapter Three – METHODOLOGY

A. Strategy 14

B. Population 14

C. Sampling 14

D. Research Instruments 15

E. Procedure 15

F. Plan of Analysis 15

Chapter Four – ANALYSIS OF FINDINGS

Section I: Composition of the Sample 17

Section II: Testing of Major Hypotheses 21

Chapter Five – SUMMARY, FINDINGS, CONCLUSIONS AND

RECOMMENDATIONS

A. Summary 29

B. Findings 30

C. Conclusions 31

D. Recommendations 32

REFERENCES 33

APPENDICES

Appendix I: The Questionnaire 35



LIST OF TABLES

Table Page

4.1.1 Distribution of Banking Employees of Karachi by

Gender 42

4.1.2 Distribution of Banking Employees of Karachi byMarital Status 43


Years of Experience 44


Age 45

4.2.1 Application of Mean for Testing the Null Hypothesis 1 46






CHAPTER ONE

INTRODUCTION

A. BACKGROUND

The phenomenon of organizational commitment is important for any organization.

“Organizational Commitment” is a “Multidimensional Construct” that has the

potential to predict organizational outcomes such as performance, turnover,

absenteeism, tenure, and organizational goals. Organizational commitment has

an important place in the study of organizational behavior. A relationship has

been found between organizational commitment and attitudes and behaviors in

the workplace.

Organization Commitment is the “Strength” of the feeling of responsibility that

an employee has towards the mission of the organization. Employee commitment

towards the organization is a big issue for all human resources organizations.

Progressive organizations always pay attention and feel great concern over the

growing rate of employee turnover in the organization due to the lack of

employees’ commitment in their jobs and related tasks.

Organizations are working really hard to counter this situation as employee’s

commitment has a great cost with it. Organization Commitment of Employees is

sensitive for organizations because if the employees do not have organization

commitment then they will ultimately lose interest and motivation.

This study primarily focuses on the impacts of commitment level towards the

employee’s job performance. The study was conducted in the Banking Sector of

Karachi, Pakistan. It was done specifically in organizations such as Askari Bank

Ltd, Allied Bank Ltd and Bank Al Habib Ltd. The topic of the study is of vast

importance. Therefore, the researcher has selected the topic to get existing

solution of the problem.

http://www.businessdictionary.com/definition/responsibility.html

http://www.businessdictionary.com/definition/employee.html

http://www.businessdictionary.com/definition/mission.html

http://www.businessdictionary.com/definition/organization.html

http://www.businessdictionary.com/definition/responsibility.html

http://www.businessdictionary.com/definition/employee.html

http://www.businessdictionary.com/definition/mission.html

http://www.businessdictionary.com/definition/organization.html



B. PURPOSE

GENERAL PURPOSE

The overall purpose of the study was the impact of energy crisis on economic

growth of small business in Jamshad Town Karachi.

SPECIFIC PURPOSE

The specific purpose of the study was:

• To analyze the factors which increase the energy crisis

• To study the impact of energy crisis on Pakistan economy

• To study the factors responsible for energy crisis

C.RESERCH QUESTIONS

1. .

D. JUSTIFICATION

The study is expected to yield the following benefits:

• It will lead to the understanding and prediction of the behavior of

employees in the banks under investigation.

• It is expected to throw light on the turn over, absenteeism, quality and

quantity of work being performed in the banks.

• It helps to provide the guidelines to the authorities concerned.

• It will be helpful for other researchers in the field.

• Ways are identified to enhance employee’s job satisfaction and

engagement with the organization.



E. SCOPE

The study was limited to small business men of Jamshad Town Karachi.

F. DEFINITION OF THE KEY TERMSORGANIZATION COMMITMENT

Organizational commitment is defined by Meyer and Allen as “A psychological

state that (a) characterizes the employee’s relationship with the organization, and

(b) has implications for the decision to continue or discontinue membership in the

organization” (Meyer & Allen, 1991, p. 67). Allen and Meyer (1996) also state that

organizational commitment is “a psychological link between the employee and

his or her organization that makes it less likely that the employee will voluntarilyleave the organization” (p. 252). Organizational commitment encompasses a

range of attitudes and behaviors in the work place, and the measure of this factor

is central to understanding such organizational connections (Mathews &

Shepherd, 2002). As defined by Porter and Smith (1970) proposed that

organizational commitment represented an individual’s: (a) belief in and

agreement with the company’s goals and values; (b) willingness to exert effort

toward accomplishing the company’s goals; and (c) strong desire to maintain

employment at the present organization. In general, there is a negative

relationship between organizational commitment and turnover intention.

ORGANIZATION DEVELOPMENT

“Organization Development is an effort (1) planned, (2) organization-wide, and

(3) managed from the top, to (4) increase organization effectiveness and health

through (5) planned interventions in the organization’s “process”, using

behavioral-science knowledge” (Beckhard, 1969).

PRIVATE BANK

Private bank referred to the operation of a local management that is not owned

by the government, government agencies, or foreign institutions, and includes

commercial banks, savings banks and specialized banks. These banks are

reported by the State Bank of Pakistan.



ENTRY-LEVEL EMPLOYEES

Entry-level employees referred to the employees of private banks’ branch offices

in Karachi, whose position is grade OG-III or some employees’ position is

contract.

MIDDLE MANAGEMENT

Middle management referred to the employees of private banks’ branch offices in

Karachi, whose position is grade Assistant Manager, Manager and AVP.

G. BASIC ASSUMPTIONS

1. Organizational commitment of banking employees can be measured.

2.There are many large and small banks in Karachi.

3. Thousand of employees have been working in the banks.

CHAPTER TWO

REVIEW OF THE RELATED LITERATURE

In the first chapter, the problem of the study was stated. In this chapter, a review

of the related literature will be made.

An attempt will be made to clarify the concept of organizational commitment of

banking employees in terms of its importance, definition, types, conceptual frame

work, measuring instruments and research studies.





maintain a relationship with an organization due to its attractive values or goals,

and internalization attachment occurs when behavior is driven by internal values

or goals that are consistent with those of the organization. Meyer and Allen

(1991) argued that the identification and internalization dimensions discussed by

O’Reilly and Chatman (1986) have been difficult to distinguish from each other.

Allen and Meyer (1991) separated organizational commitment into three

components: affective commitment, continuance commitment and normative

commitment. The affective component refers to the employee's emotional

attachment to, identification with, and involvement in the organization. The

continuance component refers to commitment based on the costs that the

employee associates with leaving the organization. The normative component

refers to the employee's feelings of obligation to remain with the organization.

Allen and Meyer (1990) developed a twenty-four-item scale to measure the three

components of organizational commitment.

Dunham et al. (1994) used confirmatory factor analysis to determine if

organizational commitment as measured by the fifteen-item OCQ was similar to

affective commitment, normative commitment, or calculative commitment.

Organizational commitment as measured by the OCQ converged with the

affective component of organizational commitment and diverged from the

normative and continuance components. This analysis showed that the OCQ

measures affective commitment.

Studies involving a variety of professions, including research scientists and

engineers (Steers, 1977), employees in nursing departments (Curry et al., 1986),

clergy (Baack et al., 1993), and police officers (Dunham et al., 1994), have

shown that a range of variables are related to organizational commitment. These

variables include organizational characteristics, job characteristics, and

demographic characteristics. A review of these variables allowed us to

specifically consider those that may be related to the organizational commitment

of employees with lower levels of authority.



B. DEFINITION

A standard definition of organizational commitment does not exist. There appears

to be as many definitions of organizational commitment as there are writers in thefield. This is so probably because the concept is abstract and multi-dimensional.

Blau and Boal (1987) offered a simple and straightforward definition of

organizational commitment. “It is a state in which an employee identifies with a

particular organization and its goals, and wishes to maintain membership in the

organization”.

Coopey and Hartley (1991) defined the organizational commitment in terms of

the relative strength of the employee’s identification with and involvement in a

particular organization.

Multiple definitions of organizational commitment have been found in the

literature. Bateman and Strasser (1984) stated that organizational commitment

has been operationally defined as “multidimensional in nature, involving an

employee’s loyalty to the organization, willingness to exert effort on behalf of the

organization, degree of goal and value congruency with the organization, and

desire to maintain membership”.

According to Buchanan (1974) most scholars defined commitment as being a

bond between an individual (the employee) and the organization (the employer),

though his own definition of commitment.

Organizational commitment is defined as a work attitude which is much in

common with job satisfaction. As an attitude, organizational commitment is more

global than job satisfaction because it applies to the organization as a whole, not

just to the job; and it is more stable, because day-to-day events at work are

unlikely to shift it.

C. TYPES



Various classifications have been suggested for the concept of commitment. Nias

describes three types of employees’ commitment: vocational, professional and

career-continuance.

Vocational commitment refers to the follower character of employee’s to the care

for and connectedness to young people which motivates many employees in

their work especially at the primary level.

Professional commitment views the employee’s commitment to being

knowledgeable, competent and instructionally effective. It is about doing a good

job. It is a source of satisfaction for senior for employees as they begin to take in

their own mastery, the professional competence and their capacity to improvise.

Career-continuance commitment is the commitment to remain in employment for

the security and extrinsic rewards it brings. Employees can become committed

by employment and it would enhance their professional commitment.

Another classification describes two types of commitment: attitudinal commitment

and behavioral commitment.

Mowday et al (1979) describe the attitudinal commitment to an organization as

the relative strength of an individual’s identification with and involvement in a

particular organization.According to them, this type of commitment can be characterized by three

factors: “(a) a strong belief in and acceptance of the organization’s goals and

values, (b) a willingness to exert considerable effort on behalf of the organization

and (c) a strong desire to maintain membership in the organization”.

Behavioral commitment involves a growth of commitment and an increasing

allocation of resources to a decision that gives every indication being wrong. The

tendency is to escalate commitment above and beyond what is warranted in an

effort to somehow justify the original decision.

D. CONCEPTUAL FRAMEWORKS

Many conceptual frameworks of organizational commitment have been proposed

in the related literature. We shall focus on the major ones only.



Probably one of the most widely publicized substantive frameworks has been

proposed by Martin and Nicholls (1987). In their view, “commitment is giving all of

yourself while at work,” this requires such attitudes as, using time constructively,

attention to detail, making extra efforts, accepting change, cooperating with

others, self development, respecting trust, pride in abilities, seeking

improvements and giving loyal support. They presented a model of commitment

based on three major components with sub-components as under:

(A) A sense of belonging to the organization: For successful organizational

relationship, loyalty is essential. The sense of belonging is developed by

managers who ensure that employees are informed, involved and sharing in

success.

(B) A sense of excitement in the job: A sense of excitement motivates employees

to perform well and achieve improved results. This sense of excitement can be

attained by developing pride, trust and accountability for results among the

employees.

(C) Confidence in management : Confidence and respect in management can be

increased through authority, dedication and competence. The respect and

confidence in management would increase sense of belonging and excitement. Itwould create a committed work force.

More success can be expected by creating a climate for commitment. When

people are involved and share in the decision making of the organization, they

feel proud and have more trust and sense of excitement towards their jobs.

Ultimately, they have more respect and confidence in management.

E. MEASURING INSTRUMENTS

One of the major requirements of a research study is to offer an operational

definition of the concepts under the study. This requirement is met through

instruments which provide indicators of the concept. Here, I would like to

describe some important measuring instruments that have been developed to



measure organizational commitment. For example, Mowday et al (1979) have

developed a questionnaire known as Organizational Commitment Questionnaire

(OCQ). The sample items of this questionnaire are described below:

Responses to each item are measured on a 7-point scale with scale pointanchors labeled; (1) strongly disagree, (2) moderately disagree, (3) slightly

disagree, (4) neither disagree nor agree, (5) slightly agree, (6) moderately agree

and (7) strongly agree. An “R” denotes negatively phrased and reverse scored

items.

1. I am willing to put in a great deal of effort beyond what is normally expected in

order to help this organization to be successful.

2. I talk about this organization to my friends as a great organization to work for.

3. I feel very little loyalty to this organization. (R)

4. I find that my values and the organization’s values are very similar.

5. I am proud to tell others that I am a part of this organization.

6. I really care about the outcome of this organization.

7. There’s not too much to be gained by sticking with this organization

indefinitely. (R)

8. For me this is the best of all possible organizations for which to work.

Researchers have developed various research instruments to measure the

commitment of employees to the organization. Luthans et al have taken into

account various demographic variables such as age, years of experience in the

present job, affection level, internal or external control attributions and

organizational variables such as the job design and the leadership style of one’s

superior. Northcraft and Neale have chosen non-organizational factors such as

preference to more attractive opportunities rather than the present ones. The

availability of other alternatives may effect subsequent commitment.



A review of the research studies suggests that organizational commitment can be

measured with the help of these variables: marital status, age, gender, work

experience in the organization, opportunities for advancement, job satisfaction,

etc.

F. RESEARCH STUDIES

Using variables shown to be related to organizational commitment for a range of

professions, this study attempts to develop an expanded list of variables related

to the organizational commitment of college and university internal auditors.

Because internal auditors do not have the authority to implement changes, they

are reliant on the organization; therefore, organizational variables are expected

to affect their organizational commitment. Specifically, this study will examine the

relationships of organizational support, organizational dependability, instrumental

communication, group attitudes toward the organization, and satisfaction with

promotion opportunities with organizational commitment.

The concept of organizational commitment has attracted a number of research

studies. In this review, we would describe a few of these research studies.

Past research (Settoon et al., 1996; Cropanzano et al., 1997) has used socialexchange theory to explain the positive relationship between organizational

support and organizational commitment. When employees perceive that the

organization is supportive, they may feel obligated to respond with behaviors

such as increased levels of commitment. The perception of high levels of

organizational dependability, instrumental communication, and satisfaction with

promotional opportunities may also be expected to result in these types of

reciprocal behaviors. Group attitudes toward the organization may be expected

to influence organizational commitment because such work experiences are "a

major socializing force and as such represent an important influence of the extent

to which psychological attachments are formed with the organization" (Steers,

1977).



It is also expected that internal auditors' organizational commitment will be

related to job characteristics. Hackman and Oldham (1975) indicate that positive

personal and work outcomes are obtained when jobs have high levels of five

core job dimensions: skill variety, task identity, task significance, task autonomy,

and feedback. Skill variety measures the degree to which a job requires an

employee to utilize a variety of skills. Task identity describes the degree to which

an employee completes an identifiable product as a result of the tasks

performed. Task significance represents the impact that the employee feels the

task has on others. Task autonomy refers to the degree to which an employee

may make his/her own decisions about the processes used in and the scheduling

of his/her work. Feedback measures the degree to which an employee receives

information about the effectiveness of his/her performance. All five job

characteristics are expected to be positively related to organizational

commitment based on Hackman and Oldham's (1975) theory that the five core

job dimensions lead to positive personal and work outcomes.

In addition to examining the relationships of organizational and job characteristics

with the organizational commitment of internal auditors, this study also examines

the relationships of several personal and demographic characteristics with

organizational commitment. The demographic characteristics of interest include

age, gender, organizational tenure, educational level, size of the student body,

and type of organization (private or public). Age and organizational tenure are

expected to be positively related to organizational commitment due to increased

attachment over time. Males and employees with higher levels of education are

expected to be less committed based on their perception of alternative

employment opportunities. Employees at larger organizations (as measured by

larger student bodies) are expected to be less committed based on lower potential for interaction and involvement (Somers et al., 1996).



CHAPTER THREE

METHODOLOGY

The previous chapters introduced the problem of the study and reviewed therelevant literature. This chapter will set out the methodology of the study.

A. STRATEGY



The strategy of research adopted in this study was that of survey.

B. POPULATION

The population of the study consisted of all the banking employees of Karachi.

The sampling frame of the study was obtained from different banks of Karachi.

C. SAMPLING

It was not possible to carry out a census. Therefore, stratified random sampling

design was developed. The principles of classification related to the control and

gender of the bank employees were followed. The total sample size was 36

employees drawn from 3 banks. The break down of the sample was given below:

Banks Male Female Total

Askari Bank Ltd 07 05 12

Allied Bank Ltd 09 03 12

Bank Al Habib Ltd 09 03 12

Total 25 11 36

D. RESEARCH INSTRUMENTS

A tailor-made questionnaire consisting of 20 items was developed (See Appendix

No. 1). The items of the questionnaire were drawn from the relevant content field

in consultation with the experts, review of the literature and the judgment of the

investigation. This procedure ensured the content validity of the questionnaire.

A pilot study was conducted on a small sample (n = 10) of bank employees

similar to those who were to be included in the final sample. The draft



questionnaire was tried out on the sample in order to refine each item of the

questionnaire in respect of its wording, meaningfulness and timing. Thus the

reliability of the questionnaire was ensured. In this process some items of the

questionnaire were modified and some of them dropped.

E. PROCEDURE

The questionnaires were personally administered by the investigator to the

respondents. Although this procedure was rather time consuming, it did yield a

high rate of return and provided an opportunity to the investigator to answer any

questions of the respondents regarding the questionnaire.

F. PLAN OF ANALYSIS

Data were analyzed using descriptive statistical techniques. Tables with

frequencies and percentages were used for description of data. For statistical

procedure graphs and mean were used.

CHAPTER FOUR

ANALYSIS OF FINDINGS



In the previous chapters the problem of the study was stated, the review of the

literature was presented, and the methodology of the study was outlined. In the

present chapter, the findings of the study will be described.

The findings of the study will be presented in two sections.

Section I: Composition of the Sample.

Section II: Testing of Major Hypotheses.

Section I: COMPOSITION OF THE SAMPLE

Table 4.1.1 shows the distribution of banking employees of Karachi by Gender.

TABLE 4.1.1

Distribution of Banking Employees of Karachi by Gender.

Gender Frequency (f) Percentage (%)

Male 25 69.44

Female 11 30.56

Total 36 100.00



Distribution of Banking Employees of Karachi by Gender

Male, 25, 69%

Female, 11,

31%

Male Female

It is cleared from the table and from the pie chart that out of 36 employees,69.44% employees were male and 30.56% employees were female.

Table 4.1.2 shows the distribution of banking employees of Karachi by MaritalStatus.

TABLE 4.1.2

Distribution of Banking Employees of Karachi by Marital Status.

Marital Status Frequency (f) Percentage (%)

Married 25 69.44

Unmarried 11 30.56Total 36 100.00



Distribution of Banking Employees of Karachi by Marital

Status

Married, 25

Unmarried, 11

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Frequency (f)

P e r c e n t a g e ( % )

It is cleared from the table and from the graph that out of 36 employees, 69.44%employees were married and 30.56% employees were unmarried.

Table 4.1.3 shows the distribution of banking employees of Karachi by Years of Experience.

TABLE 4.1.3

Distribution of Banking Employees of Karachi by Years of Experience.

Years of Experience Frequency (f) Percentage (%)

Less than 10 years 22 61.11

10 years and above 14 38.89Total 36 100.00



Distribution of Banking Employees of Karachi by Years

of Experience

Less than 10

years, 22

10 years and

above, 14

0% 20% 40% 60% 80% 100%

Frequency (f)

Percentage (%)

It is cleared from the table and from the bar graph that out of 36 employees,61.11% employees were less than 10 years experienced and 38.89% employeeswere 10 years and above experienced.

Table 4.1.4 shows the distribution of banking employees of Karachi by Age.

TABLE 4.1.4

Distribution of Banking Employees of Karachi by Age.

Age Frequency (f) Percentage (%)

Below 30 years 13 36.11

30 years and above 23 63.89

Total 36 100.00



Distribution of Banking Employees of Karachi by Age

Below 30years, 13, 36%

30 years and

above, 23, 64%

Below 30 years 30 years and above

It is cleared from the table and from the doughnut chart that out of 36 employees,36.11% employees were below 30 years age and 63.89% employees were 30years and above age.

Section II: TESTING OF MAJOR HYPOTHESES

Null Hypotheses 1

There will be no significant difference in the level of organizational commitment of

male and female banking employees of Karachi.

Analysis of the Problem

Table 4.2.1 shows the application of Mean (X) for testing the null hypotheses 1.

In the sample out of 36 employees, 25 employees were male and 11 employees



were female. So, N1 = 25 for male employees and N2 = 11 for female

employees.

S. No. Male Female

1 71 66

2 66 793 74 68

4 62 72

5 71 72

6 67 66

7 64 66

8 75 75

9 67 59

10 78 68

11 73 62

12 76

13 7214 75

15 59

16 72

17 67

18 66

19 54

20 69

21 52

22 84

23 69

24 74

25 62

Σ X 1,719 753

Mean (X) = Σ X N

68.76 68.45

Referring to Table 4.2.1, we find that the Mean (X) = 68.76 of male employees is

negligibly higher than the Mean (X) = 68.45 of female employees. Therefore, thenull hypothesis is accepted and it is concluded that there is no significant

difference in the level of organizational commitment of male and female banking

employees of Karachi.



From inspection of the table, it is clear that most of the male employees and

female employees are moderately committed.

Null Hypotheses 2

There will be no significant difference in the organizational commitment of

married and unmarried banking employees of Karachi.



In the sample out of 36 employees, 25 employees were married and 11

employees were unmarried. So, N1 = 25 for married employees and N2 = 11 for

unmarried employees.

S. No. Married Unmarried

1 76 742 66 62

3 71 73

4 67 66

5 64 54

6 75 69

7 67 52

8 78 74



9 76 79

10 72 66

11 75 62

12 59

13 72

14 6715 84

16 69

17 62

18 66

19 68

20 72

21 72

22 66

23 75

24 59

25 68Σ X 1,746 731

Mean (X) = Σ X N

69.84 66.45

Referring to Table 4.2.2, we find that the Mean (X) = 69.84 of married employees

is higher than the Mean (X) = 66.45 of unmarried employees. Therefore, the null

hypothesis is rejected and it is concluded that there is significant difference in the

organizational commitment of married and unmarried banking employees of

Karachi.

From inspection of the table, it is clear that the married employees are more

committed than unmarried employees.



Null Hypotheses 3

There will be no significant difference in the organizational commitment of less

experienced and more experienced banking employees of Karachi.



In the sample out of 36 employees, 22 employees were below 10 years

experienced and 14 employees were 10 years and above experienced. So, N1 =

22 for less experienced employees and N2 = 14 for more experienced

employees.

S. No. Below 10 years 10 years & Above

1 74 76

2 62 66

3 71 674 75 64

5 67 78

6 73 75

7 76 59

8 72 67

9 72 84

10 66 69

11 54 62

12 69 66

13 52 75

14 74 6215 66

16 79

17 68

18 72

19 72

20 66

21 59



22 68

Σ X 1,507 970

Mean (X) = Σ X N

68.50 69.29

Referring to Table 4.2.3, we find that the Mean (X) = 68.50 of below 10 years

experienced employees is lower than the Mean (X) = 69.29 of 10 years and

above experienced employees. Therefore, the null hypothesis is rejected and it is

concluded that there is significant difference in the organizational commitment of

less experienced and more experienced banking employees of Karachi.

From inspection of the table, it is clear that the more experienced employees are

more committed than less experienced employees.

Null Hypotheses 4

There will be no significant difference in the organizational commitment level of

younger employees and older banking employees of Karachi.





In the sample out of 36 employees, 13 employees were below 30 years aged and

23 employees were 30 years and above aged. So, N1 = 13 for younger

employees and N2 = 23 for older employees.

S. No. Below 30 years 30 years & Above

1 74 76

2 62 66

3 67 71

4 73 64

5 66 75

6 54 67

7 69 788 52 76

9 74 72

10 79 75

11 72 59

12 66 72

13 59 67

14 84

15 69

16 62

17 66

18 6819 72

20 66

21 75

22 68

23 62

Σ X 867 1,610

Mean (X) = Σ X N

66.69 70.00

Referring to Table 4.2.4, we find that the Mean (X) = 66.69 of below 30 years

age of employees is lower than the Mean (X) = 70.00 of 30 years and above age

of employees. Therefore, the null hypothesis is rejected and it is concluded that



there is significant difference in the organizational commitment level of younger

employees and older banking employees of Karachi.

From inspection of the table, it is clear that the older employees are more

committed than younger employees.

CHAPTER FIVE

SUMMARY, FINDINGS, CONCLUSIONS AND

RECOMMENDATIONS

In the previous chapters, the problem of the study was introduced; the related

literature was reviewed, the methodology of the study was described and the

findings of the study were set out.

In this chapter, a summary of the study will be presented; the findings of the

study will be catalogued, the conclusions from the study will be drawn and

recommendations will be made.



A. SUMMARY

The basic purpose of the study was to evaluate the degree of organizational

commitment of banking employees in Karachi and make recommendations for

increasing their organizational commitment so as to improve banks effectiveness.

The scope of the study was limited to all the banking employees of Karachi.

The following four hypotheses were formulated for the study.

1. There will be no significant difference in the organizational commitment of

married and unmarried banking employees of Karachi.

2. There will be no significant difference in the level of organizational

commitment of male and female banking employees of Karachi.

3. There will be no significant difference in the organizational commitment of

less experienced and more experienced banking employees of Karachi.

4. There will be no significant difference in the organizational commitment

level of younger employees and older banking employees of Karachi.

The strategy of research adopted for the study was survey.

The population of the study consisted of all the banks employees of Karachi is

too large. Since the population was large and various, stratified random sampling

was adopted to ensure the insertion of representatives from all categories of employees. The ideology of classification was based on the control and gender

of the banks employees. Group sampling design was used in the final stages of

sampling. The total sample size was 36 employees drawn from 3 banks.



One research instrument, a questionnaire were developed for the study. The

questionnaire consisted of 20 statements. Several measures were taken to

ensure the validity and reliability of the research instrument. First, the statements

were drawn from a detailed review of the relevant literature and consultation with

the experts to ensure content validity. Second, the research instrument was

administered personally so as to ensure hundred percent rate of return. Third,

the data collected were thoroughly edited. Quantitative technique was used in

analyzing data. The major hypotheses were tested through Mean (X).

B. FINDINGS

1. No significant difference in the level of organizational commitment of male

and female banking employees of Karachi was found.

2. The married employees were found to be more committed than the

unmarried employees of banks in Karachi.

3. The more experienced employees were found to be more committed than

the less experienced employees of banks in Karachi.

4. The older employees were found to be more committed than the younger

employees of banks in Karachi.

C. CONCLUSIONS

There are number of findings from this study that demand further discussion. The

review of literature shows that (a) the construct of organizational commitment hasrecently emerged as a crucial factor in organizational effectiveness; (b) it refers

to the nature of an individual’s relationship to an organization, such that a highly

committed person will indicate: (1) a strong desire to remain a member of the

particular organization, (2) a willingness to exert high level of effort on behalf of

the organization and (3) a definite belief in and acceptance of the values and



goals of the organization and (c) the conceptualization of the construct is still

going on with unabated efforts.

The findings of this study of Karachi banks employees may be explained in view

of the prevailing situation. First, the married employees were found to be more

committed than the unmarried employees of banks in Karachi. This may be due

to the fact that the married employees have to shoulder more household

responsibilities than the unmarried employees. Second, the more experienced

employees were found to be more committed than the less experienced

employees of banks in Karachi. This may be due to the fact that the lacks of

facilities and benefits given against hard working have applied bad cumulative

effect on the less experienced employees. Third, the older employees were

found to be more committed than the younger employees of banks in Karachi.

This may be due to the fact that the younger employees have more chances and

more opportunities to lean different areas of banking sector due to that he or she

is younger and have a options and ways to choose more better area of banking

sector for growth in future that why younger employees were lesser committed.

The study has made a significant contribution in the identification of the 20statements of the construct of organizational commitment of the banks. The

major conclusion that can be drawn from the analysis is that the employees on

the whole are committed to their banks as far as they go. But they do not go far

enough.

D. RECOMMENDATIONS

In the light of findings, the following recommendations are made:

INCENTIVE PACKAGE

It is recommended that an incentive package be provided to the employees. The

package may include system wide rewards such as relatively high salary, good



fringe benefits and opportunities to personal growth and advancement through

on job training programs.

HIGHER MANAGEMENT SUPPORT

It is recommended that the supervisor or manager should adopt a dynamic

democratic leadership style. Such a leadership style will appreciate participation

of employees in decision making, teamwork among the employees and high

discipline and order in the bank.

CAREER COUNSELING

It is recommended that a career counseling consultant be provided to the

employees. Such consultant guides and provides better ways and better areas of

banks to the employees with respect to his or her needs. So, the employees

must think about that there are opportunities to advancement and growth.

REFERENCES

Blau, G. J. and K. R. Boal. “Conceptualizing How Job Involvement and

Organizational Commitment Affect Turnover and Absenteeism”. Academy of

Management Review, (April 1987).

Beckhard, R. (1969). http:// media.wiley.com / product_data / excerpt / 64 /

07879842/0787984264.pdf

Buchanan, B. “Building Organizational Commitment: The Socialization of

Managers in Work Organizations”. Administrative Science Quarterly, (1974), pp.

533-546.



Coopey, J. and J. Hartley. “Reconsidering the Case for Organizational

Commitment”. Human Resource Management Journal, Vol. 1, No. 13 (Spring

1991), pp. 18-32.

Cropanzano, R.; John C. Howes, Alicia A. Grandey, Paul Toth. “The relationship

of organizational politics and support to work behaviors, attitudes and stress”.

Journal of Organizational Behavior, (March 1997).

Dunham, R. B. and Pierce, J. L. “Organizational Commitment: Pre-Employment

Propensity and Initial Work Experience”. Journal of Management (Spring 1987).

Luthans, Fred, Donald Baack and Lew Taylor. “Organizational Commitment:

Analysis of Antecedents”. Human Relations, Vol. 40, No. 4 (1987), pp. 219-236.

Martin, P. and J. Nicholls. Creating a Committed Workforce (Institute of

Personnel Management, 1987).

Meyer, J. P. and N. J. Allen. “A Three – Component Conceptualization of

Organizational Commitment”. Human Resource Management Review, Vol. 1(1991), pp. 61-89.

Miner, John B. Industrial Organizational Psychology (New York: McGraw-Hill,

1992), pp. 124.

Mowday, Richard T., Lyman W. Porter and Richard M. Steers. Employee

Organization Linkages: The Psychology of Commitment, Absenteeism and

Turnover (New York: Academic Press, 1982), pp. 49, 56 and 65.

Mowday, R. T., R. M. Steers and L. W. Porter. “The Measurement of

Organizational Commitment”. Journal of Vocational Behavior, Vol. 14 (1979), pp.

288.



Northcraft, Gregory B. and Margaret A. Neale. Organizational Behavior (Dryden,

Chicago, 1990), pp. 472.

O’Reilly, Charles A. and David F. Caldwell. “The Commitment and Job Tenure of

New Employees: Some Evidence of Post decisional Justification”. Administrative

Science Quarterly, No. 26 (1981), pp. 597-616.

O’Reilly, Charles A.; Chatman, Jennifer. “Organizational Commitment and

Psychological Attachment”. Journal of Applied Psychology, (1986).

Porter, L. W. and F. J. Smith. The Etiology of Organizational Commitment.

Unpublished paper, (1970).

Porter, L. W., et al. “Organizational Commitment, Job Satisfaction and Turnover

among Psychiatric Technicians”. Journal of Applied Psychology, 59 (1974).

Settoon, Randall P.; Bennett, Nathan; Liden, Robert C. “Social exchange in

organizations”. Journal of Applied Psychology, (June 1996).

Somers, Mark John. “A test of the Relationship between Affective and

Continuance Commitment using Non-Recursive Models”. Journal of

Occupational and Organizational Psychology, (June 1993), pp. 185-192.

Strasser, S. and Thomas S. Bateman. “A Longitudinal Analysis of the

Antecedents of Organizational Commitment”. The Academy of Management

Journal, Vol. 27, No. 1 (March 1984).



APPENDIX # 1

_______________________

Bank Name & Address

DADA BHOY INSTITUTE OF HIGHER EDUCATION

TO ANALYZE THE ORGANIZATIONAL COMMITMENT OF

BANKING EMPLOYEES IN KARACHI

QUESTIONNAIRE



Section I: Particulars about the Respondents.

Directions: Please place a check mark () in the appropriate space against

each item.

1. Gender ______ Male ______ Female

2. Age ______ Below 30 years ______ 30 – 39 years

______ 40 – 49 years ______ 50 years & above

3. Martial Status ______ Unmarried ______ Married

4. Years of Experience

______ Less than 3 years ______ 3 – 9 years

______ 10 – 14 years ______ 15 years & above

5. Qualifications (Highest)

A. Academic ______ B.A/B.Com/B.Sc. ______ M.A/M.Com/M.Sc.

B. Professional ______ B.S/B.E/BBA ______ M.S/M.E/MBA

______________________________________ Any other (Specify)

6. Job Title _____________________

7. Designation _____________________

Section II: THE BANK EMPLOYEES COMMITMENT SCALE

Directions: Bellow are listed several banking employees commitment

measurement statements. Against each statement is a five point scale: Strongly

Agree (SA), Agree (A), Undecided (U), Disagree (DA) and Strongly Disagree

(SD). Please place a check mark () on the point to which you agree.

S. No. STATEMENTS SA A U DA SD1 The goals of the bank are clearly defined.

2 I like the goals of the bank.

3 I make every effort to achieve the goals of the bank.

4 My loyalty to the bank is unquestioned.

5 I am proud to be an employee in the bank.

6 To be honest, if I get a job in some other



bank I will leave this bank.

7 The employee evaluation system in the bankis based on performance of the employee.

8 Sycophancy is the surest way to getpromotion in the bank.

9 This bank pays higher salary than other similar banks.

10 On the whole, I am satisfied with my job.

11 The higher management of the bank isstrong and supportive.

12 The bank is “the best” to work for.

13 The morale of the employees is high.

14 There is unity among the employees.

15 The public image of the bank is excellent.

16 The employees of this bank work as a team.

17 Employees’ evaluation in this bank is just

and fair.18 I always try to keep my contribution to the

bank high.

19 Future projection in the bank is high.

20 The complaint / objection handling procedurein this bank are efficient.

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