A Survey on Formalization and Centralization Role of Organizational Structure on Employee Organizational Commitment

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ISSN 1818-4952

© IDOSI Publications, 2012

Corresponding Author: Houshang Taghizadeh, Department of Industrial Management, Tabriz Branch, Islamic Azad University,

A Survey on Formalization and Centralization Role of

Organizational Structure on Employee Organizational Commitment

Houshang Taghizadeh, Masoomeh Sobhani and Hamidreza Sobhani

1 2 3

Department of Industrial Management, Tabriz Branch, Islamic Azad University, Tabriz, Iran

1

Department of Public Management, Science and Research Branch,

2

Islamic Azad University, Tabriz, East azerbaijan, Iran

Department of Business Management, Rasht Branch, Islamic Azad University, Rasht, Iran

3

Abstract: The aim of present studies was to investigate the effect of organizational structure and job characteristics on employee job satisfaction and organizational commitment in rural organization of Iran (Guilan Province). This is a descriptive research with analytical studies. Statistical society of this research is 1281employees working in rural organization of Guilan Province. Based on random classification sampling were selected 204 rural personnel with probability proportionate. Questionnaire validity was confirmed by experts in the related field. The question of reliability is measured by Cronbach statistic; the results indicated high reliability. These questions were used to measure variables. For data analysis SPSS18 software and Visual PLS 1.04 were used. In this study, 10 hypotheses were examined; that research results indicate that there was a significant relationship between formalization and job independence, formalization and job variety, centralization and job feedback, job independence and job satisfaction, job variety and job satisfaction, feedback and job satisfaction, also job satisfaction and organization commitment of employee in rural organization of Guilan province.

Key words: Organizational Structure Job Characteristics Rural Work Results Job Satisfaction

INTRODUCTION depending on motive, perception of others, or both. Due to changes of present contemporary and exhibit OCB with some ulterior motives. This is also entering to the knowledge-based economy, attention to known as political tactics to influence their superior, with human resources is considered as the most critical the intention of fulfilling their own personal motives. OCB, strategic element and most basic way to increase on the other hand, is a genuine extra-role or discretionary effectiveness and efficiency of the organization. behavior that employees engaged in. If managers sense Organizational structure is the way of demonstrating that their subordinates are engaging in ingratiation, responsibility and power are allocated; then the work instead of OCB, they will then develop a negative procedures are carried out among organizational members perception towards the employees.

[1-7]. On the contrary, Kacmar et al. [8] have reported that Based on the evidence reported in the literature [8-10] a formalized and centralized structure should develop a it can be concluded that there is no perfect organizational high level of organizational politics among employees. structure that fits all large organizations [3, 10-12]. That was due to perception of politics which are important Organizations cannot be fully centralized or decentralized, in order to influence the decision-makers i.e. the but it must be in the form of a hybrid i.e. combination of managerial level staff. To illustrate the facts, Kakabadse centralized and decentralized. For this reason, structure in et al. [9] have discovered that organizational formalization any large organization needs to be revised from time to and culture may bring about extra-role behavior in terms time depending on changes may occur in the external and of ingratiation or organizational citizenship behavior internal environment. Therefore, it is a challenge for (OCB) among employees. Also organizational behavior is managers to identify which structure provides the most Ingratiation is a negative behavior, such that employees

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benefits to employees as well as the organization [10]. international standard [25] and extent to which they According to Galais and Mose [12] the best practice in the resemble work conditions of other professions in the private sector may not be suitable for public sector. This locality. Other inclusions are the availability of power and is because of the suitability is contingent upon various status, pay satisfaction, promotion opportunities and task factors such as external changes in the public sector clarity [4, 16, 26, 27].

[13-15]. Recently, organizational commitment has been

The job satisfaction is a topic to which the necessary studied in the public, private and non-profit sectors. Early importance should be attached in terms of its relation with research focused on defining the concept and current discontinuation, personnel turnover and job success [16]. research continues to examine organizational commitment The qualified personnel effect has a considerable amount through two popular approaches, commitment-related of importance on attainment of the long-term-targets. attitudes and commitment-related behaviors. A variety of Especially if the businesses are operating in the tourism antecedents and outcomes have been identified in the sector. Hence today’s businesses consider the human past thirty years [5, 28, 29]. Researchers [30] have found resources as one of the invaluable fortunes of the that age was positively correlated with affective and organization [17]. Job satisfaction is an important issue; normative commitment; but not to continuance its absence often leads to lethargy and reduced commitment. Allen and Meyer [31] in an exploratory and organizational commitment [12, 18]. Lack of job confirmatory analysis of factors that can significantly satisfaction is a predictor of quitting a job [19, 20]. predict job satisfaction and organizational commitment Sometimes workers may quit from public to the private among blue collar workers, reported that promotion, sector and vice versa. In the other times the movement is satisfaction, job characteristics, extrinsic and intrinsic from one profession to another that is considered a exchange, as well as extrinsic and intrinsic rewards, were greener pasture. This later is common in countries related to the commitment [32].

grappling with dwindling economy and its concomitant One of the important issues that were raised such as poor conditions of service and late payment of among the organizational factors was job design and one salaries [21]. In such countries, people tend to migrate to of the theories proposed in this area discussed by better and consistently paying jobs [22]. Explaining its Katsikea, et al. [33]. This study is intended that the nature some researcher [10, 18, 23] tend to agree that job relationship between three dimensions of job (variety, satisfaction is essentially controlled by factors described independence and feedback) and the dimensions of by Adeyemo's and others [24, 25] perspectives as external organizational structure (formalization and centralization) to the worker. From this viewpoint satisfaction on a job with organizational commitment and job satisfaction were might be motivated by the nature of the job, its pervasive analyzed, till the effect of different levels of each factor on social climate and extent to which workers peculiar needs job satisfaction and organizational commitment in are met. Working conditions that are similar to local and province rural employees were determined. According to

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Katsikea, et al.'s model illustrated in Figure 1, the Job Variety has effect on employee job satisfaction in dependent variables in this study are job satisfaction and rural organization of Guilan province.

organization commitment. These parameters are known as Job feedback has effect on employee job satisfaction independent variables in organizational structure and job in rural organization of Guilan province.

characteristics. Job satisfaction has effect on employee organization

Research Hypotheses:

Formalization has effect on employee job control and type of supervision is among the research independence in rural organization of Guilan field. This is a descriptive research with analytical values.

province. Statistical society of this research is 1281employees

Formalization has effect on employee job variety in working in Rural of Guilan Province. Based on random rural organization of Guilan province. Classification sampling were selected 204 rural personnel Formalization has effect on employee job feedback of with probability proportionate. Questionnaire validity was rural organization of Guilan province. confirmed by experts. The question of reliability is Centralization has effect on employee job measured by Cronbach statistic. The obtained results independence in rural organization of Guilan indicated high reliability; these questions were used to

province. measure defined variables.

Centralization has effect on employee job variety in

rural organization of Guilan province. Data Analysis: The above stated questions were used to Centralization has effect on employee job feedback in evaluate variables. The obtained data were analyzed in rural organization of Guilan province. SPSS18 software and Visual PLS 1.04. In this work, 10 Job independence has effect on employee job hypotheses were examined. The working model for satisfaction in rural organization of Guilan province. evaluation of hypotheses is illustrated in Figure 2.

commitment in rural organization of Guilan province. Research Methodology: In this study, the degree of

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With regard to obtained values of R ; it was statedsq Hypotheses 6: According to the test of the hypothesis, that job variety, job independence and job feedback in sixth hypothesis was confirmed. The hypotheses general can be explained (predicted); that is about 43 determined centralization has affected on employee job percent of job satisfaction variable. Also job satisfaction feedback of Guilan province rural organization. Referring variable could be explained (predicted) approximately 47% to original model in standard mode; it was observed that of the commitment variable. the relationship intensity between two variables is equal Hypotheses 1: According to the test of the hypothesis, job feedback for employees. In an investigation the first hypothesis was confirmed and it was determined conducted by Katsikea, et al. [33] the relationship that formalization has effect on employee job between two variables was confirmed.

independence of Guilan province rural organization.

Referring to original model in standard mode the Hypotheses 7: According to the test of the hypothesis, relationship definitely exist; that intensity between two seventh hypothesis was also confirmed; it has determined variables which are equal to - 0.32. Therefore; it is clear to that job independence may influence on employee job say that formalization in organization reduced job satisfaction of Guilan province rural organization. independence. In research conducted by Katsikea, et al. Referring to original model in standard mode; it is [33] the relationship between two variables such as observed that the relationship intensity between two formalization and job independence were rejected. variables is equal to 0.26. Therefore, job independence in Hypotheses 2: According to the test of the hypothesis, investigation conducted by Katsikea, et al. [33] the second hypothesis was confirmed and it was determined relationship between two variables has been confirmed. that formalization has effect on employee job variety of

Guilan province rural organization. Referring to original Hypotheses 8: According to the test of the hypothesis, model in standard mode, the intensity relation between eighth hypothesis was confirmed. It was determined that two variables is equal to -0.33. Therefore, formalization in job variety has affected on employee job satisfaction of organization reduced job variety was observed. In Guilan province rural organization. Referring to the investigation conducted by Katsikea, et al. [33] the original model in standard mode; the relationship intensity relationship between two variables was rejected. between two variables is equal to 0.24. Therefore; job Hypotheses 3: According to the test of the hypothesis, satisfaction. In a research conducted by Katsikea,et al. third hypothesis was also rejected and it was determined [33] the relationship between two variables was that formalization did not affect on employee job feedback confirmed.

of Guilan province rural organization. In an investigation

conducted by Katsikea, et al. [33] the relationship Hypotheses 9: According to the test of the hypothesis, between two variables has been confirmed. ninth hypothesis was confirmed. It was found that job Hypotheses 4: According to the test of the hypothesis, Guilan province rural organization. Referring to the forth hypothesis was also rejected; it was determined that original model in standard mode; the relationship intensity centralization does not have any effect on employee job between two variables is equal to 0.44. Therefore, job independence of Guilan province rural organization. In feedback in organization has increased employee job research conducted by Katsikea, et al. [33] the satisfaction. In an independent research conducted by relationship between two variables was confirmed. Katsikea,et al. [33] the relationship between two variables Hypotheses 5: According to the test of the hypothesis,

fifth hypothesis was even rejected and it was determined Hypotheses 10: According to the test of the hypothesis, that centralization has no effect on employee job variety tenth hypothesis was also confirmed. It was found that of Guilan province rural organization. In a research the job satisfaction has affected on employee organization conducted by Katsikea, et al. [33] the relationship commitment of Guilan province rural organization. between two variables was also confirmed. Referring to the original model in standard mode, it was to + 0.39. Therefore, centralization in organization causes

organization increased employee job satisfaction. In an

variety in organization has increased employee job

feedback has affected on employee job satisfaction of

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Table 1: Hypotheses Results

Hypotheses T-Value Hypotheses Status SS status

H1 -3.054 Confirmed H2 -2.886 Confirmed H3 -0.6 Rejected H4 -0.303 Rejected H5 +0.997 Rejected H6 +4.976 Confirmed H7 +3.855 Confirmed H8 +3.036 Confirmed H9 +7.907 Confirmed H10 +14.969 Confirmed

observed that the relationship intensity between two variables is equal to 0.68. Therefore, it was clearly stated that job satisfaction in organization increase employee organization commitment. In a research conducted by Katsikea,et al. [33] the relationship between two variables was confirmed. The outcome of 10 hypotheses with tangible results are summarized in Table 1.

CONCLUSIONS AND SUGGESTIONS According to the results of testing hypotheses which was determined that different levels of job variety, job independence and feedback on organizational commitment and job satisfaction of employees had significant effect on organizational behaviors. In order to increase the influence of these factors on organizational commitment of employees required to be considered in the following cases:

Job should be with a variety of skills and the job should be attractive for employees. In particular, managers should attempt to do their part in a creative manor; he should create a collection of work list with the extended tasks. This work lead to a in a variety of skills and prevent any simple and repetitive work. Also, through development and extension can increase employment job variety. In this regard, one has to increase area of jobs, the number of jobs; variety of jobs and the frequency of job rotations. Because of job development cause by variety of skills and provides talents flourish among staff. Individuals should have freedom and to be independent in their jobs. In particular, managers can expand the jobs through vertical responsibility and control previously responsibilities the for management assigned to the staff. Delegate authority and increasing responsibilities of employees which caused to raise employee creativity. This action would assist employee to come up new ideas. Also Administrators should give more freedom to lower

categories of employees. In order to make suitable decisions related to their work activities; empolyees should adopt to work environment. Organizational manager can establish a flexible work schedule and create trust space in work and respect to employees’ opinion and enhance degree of independence and freedom of action in their job activities.

Employees in their job should be able to receive feedback from their work performance. Also they should be aware of their job activities; that how their efforts are affected on achieving high performance and prefect output. Also, employees by receiving feedback from their job can be aware of their faults and weaknesses and shortcomings and try to resolve deficiencies. Feedback about staff performance should be given directly to the related personnel. As possible, jobs should be described accurately and guidelines for doing good work should be given to employees.

ACKNOWLEDGEMENT

Authors are sincerely acknowledged and thankful to cooperation rural organization of Guilan province for their trustful co-operations throughout the project.

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Figure

Fig. 1: Model proposed by Katsikea, et al. [33]
Fig. 1: Model proposed by Katsikea, et al. [33] p.2
Fig. 2: Model with standard coefficients
Fig. 2: Model with standard coefficients p.3
Table 1: Hypotheses Results

Table 1:

Hypotheses Results p.5

References

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