To Analyze the Organizational Commitment of Banking Employees in Karachi

A Research Project Submitted to Dadabhoy Institute of Higher Education Karachi

In Complete Fulfillment of the Requirement of the Degree Masters in Business Administration (Finance)

by Syed 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 formulated for 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 masters 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 Certificate of Approval Acknowledgements List of Tables Chapter One INTRODUCTION A. Background B. Purpose C. Hypotheses D. Justification E. Scope F. Definition of Key Terms G. Basic Assumptions Chapter Two REVIEW OF THE RELATED LITERATURE A. Importance B. Definition C. Types D. Conceptual Frameworks E. Measuring Instruments F. Research Studies 5 7 8 9 10 11 1 2 2 3 3 3 4 i ii iii vi

Chapter Three METHODOLOGY A. Strategy B. Population C. Sampling D. Research Instruments E. Procedure F. Plan of Analysis Chapter Four ANALYSIS OF FINDINGS Section I: Composition of the Sample Section II: Testing of Major Hypotheses Chapter Five SUMMARY, FINDINGS, CONCLUSIONS AND RECOMMENDATIONS A. Summary B. Findings C. Conclusions D. Recommendations REFERENCES APPENDICES Appendix I: The Questionnaire 35 29 30 31 32 33 17 21 14 14 14 15 15 15

LIST OF TABLES
Table
4.1.1 Distribution of Banking Employees of Karachi by Gender 4.1.2 Distribution of Banking Employees of Karachi by Marital Status 4.1.3 Distribution of Banking Employees of Karachi by Years of Experience 4.1.4 Distribution of Banking Employees of Karachi by Age 4.2.1 4.2.2 4.2.3 4.2.4 Application of Mean for Testing the Null Hypothesis 1 Application of Mean for Testing the Null Hypothesis 2 Application of Mean for Testing the Null Hypothesis 3 Application of Mean for Testing the Null Hypothesis 4 45 46 47 48 49 44 43 42

Page

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 employees 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 employees 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.

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 employees 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 TERMS

ORGANIZATION COMMITMENT
Organizational commitment is defined by Meyer and Allen as A psychological state that (a) characterizes the employees 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 voluntarily leave 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 individuals: (a) belief in and agreement with the companys goals and values; (b) willingness to exert effort toward accomplishing the companys 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 organizations 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.

A. IMPORTANCE
To determine factors related to organizational commitment, the concept of organizational commitment must be clearly defined. One commonly used definition of organizational commitment was developed by Porter et al. (1970). In their definition, three factors of organizational commitment were identified: a strong belief in and acceptance of the organization's goals and values, a willingness to exert considerable effort on behalf of the organization, and a strong desire to remain in the organization. According to Meyer and Allen (1997), a committed employee tends to stay with the organization through ups and downs, attend work regularly, put in a full day, protect companys assets and therefore share the goals and values of the company. As such, organizational commitment has been found to affect job performance and turnover (OReilly & Chatman, 1986). It is also claimed that organizational commitment has effects on societies as a whole as it affects job movement, community stability and national productivity (Porter et al., 1974).

One of the key areas in which there is little agreement is the how organizational commitment should be measured. Porter et al (1974) defined organizational commitment as the strength of an individual identification with and involvement in a particular organization (p.604). In such a light, organizational commitment is measured as employees motivation and identification with the values of the organization and their intention to remain as an employee (Porter et al., 1974). OReilly and Chatman (1986) however, approached organizational commitment from the perspective of psychological attachment and believed that it reflects the degree to which the individual internalizes or adopts characteristics or perspectives of the organization (p.493). They proposed that the bond between an employee and an organization could take three forms: compliance, identification and internalization. According to OReilly and Chatman (1986), compliance attachment reflects instrumental behavior designed to gain rewards; identification attachment occurs when employees behave because they want to

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 OReilly 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 the field. 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 employees 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 employees 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 employees 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 employees 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 individuals 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 organizations 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. It would 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 point anchors 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 organizations 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. Theres 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 ones 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 social exchange 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 the relevant 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 Askari Bank Ltd Allied Bank Ltd Bank Al Habib Ltd Total

Male 07 09 09 25

Female 05 03 03 11

Total 12 12 12 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: Section II: Composition of the Sample. 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 Male Female Total Frequency (f) 25 11 36 Percentage (%) 69.44 30.56 100.00

Distribution of Banking Employees of Karachi by Gender

Female, 11, 31%

Male, 25, 69%

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 Marital Status. TABLE 4.1.2 Distribution of Banking Employees of Karachi by Marital Status. Marital Status Married Unmarried Total Frequency (f) 25 11 36 Percentage (%) 69.44 30.56 100.00

Distribution of Banking Employees of Karachi by Marital Status

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

Unmarried, 11

Percentage (%)

Married, 25

Frequency (f)

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 Less than 10 years 10 years and above Total Frequency (f) 22 14 36 Percentage (%) 61.11 38.89 100.00

Distribution of Banking Employees of Karachi by Years of Experience

Frequency (f)

Less than 10 years, 22

10 years and above, 14

0%

20%

40%

60%

80%

100%

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% employees were 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 Below 30 years 30 years and above Total Frequency (f) 13 23 36 Percentage (%) 36.11 63.89 100.00

Distribution of Banking Employees of Karachi by Age

Below 30 years, 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 30 years 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. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 X Mean (X) = X N Male 71 66 74 62 71 67 64 75 67 78 73 76 72 75 59 72 67 66 54 69 52 84 69 74 62 1,719 68.76 Female 66 79 68 72 72 66 66 75 59 68 62

753 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, the null 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. Analysis of the Problem Table 4.2.2 shows the application of Mean (X) for testing the null hypotheses 2. 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. 1 2 3 4 5 6 7 8 Married 76 66 71 67 64 75 67 78 Unmarried 74 62 73 66 54 69 52 74

9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 X Mean (X) = X N

76 72 75 59 72 67 84 69 62 66 68 72 72 66 75 59 68 1,746 69.84

79 66 62

731 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. Analysis of the Problem Table 4.2.3 shows the application of Mean (X) for testing the null hypotheses 3. 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. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Below 10 years 74 62 71 75 67 73 76 72 72 66 54 69 52 74 66 79 68 72 72 66 59 10 years & Above 76 66 67 64 78 75 59 67 84 69 62 66 75 62

22 X Mean (X) = X N

68 1,507 68.50

970 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.

Analysis of the Problem Table 4.2.4 shows the application of Mean (X) for testing the null hypotheses 4. 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. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 X Mean (X) = X N Below 30 years 74 62 67 73 66 54 69 52 74 79 72 66 59 30 years & Above 76 66 71 64 75 67 78 76 72 75 59 72 67 84 69 62 66 68 72 66 75 68 62 1,610 70.00

867 66.69

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 has recently emerged as a crucial factor in organizational effectiveness; (b) it refers to the nature of an individuals 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 20 statements 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. OReilly, 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. OReilly, 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: each item.

1. Gender

Particulars about the Respondents.

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

______ Male ______ Female

2. Age

______ Below 30 years ______ 40 49 years

______ 30 39 years ______ 50 years & above ______ Married ______ 3 9 years ______ 15 years & above ______ M.A/M.Com/M.Sc. ______ M.S/M.E/MBA

3. Martial Status 4. Years of Experience

______ Unmarried ______ Less than 3 years ______ 10 14 years

5. Qualifications (Highest) A. Academic B. Professional 6. Job Title 7. Designation ______ B.A/B.Com/B.Sc. ______ B.S/B.E/BBA _____________________ _____________________

______________________________________ Any other (Specify)

Section II:

THE BANK EMPLOYEES COMMITMENT SCALE are listed several banking employees commitment

Directions: Bellow

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. 1 2 3 4 5 6 STATEMENTS The goals of the bank are clearly defined. I like the goals of the bank. I make every effort to achieve the goals of the bank. My loyalty to the bank is unquestioned. I am proud to be an employee in the bank. To be honest, if I get a job in some other SA A U DA SD

7 8 9 10 11 12 13 14 15 16 17 18 19 20

bank I will leave this bank. The employee evaluation system in the bank is based on performance of the employee. Sycophancy is the surest way to get promotion in the bank. This bank pays higher salary than other similar banks. On the whole, I am satisfied with my job. The higher management of the bank is strong and supportive. The bank is the best to work for. The morale of the employees is high. There is unity among the employees. The public image of the bank is excellent. The employees of this bank work as a team. Employees evaluation in this bank is just and fair. I always try to keep my contribution to the bank high. Future projection in the bank is high. The complaint / objection handling procedure in this bank are efficient.