Different Studies Define Organizational Commitment Commerce Essay

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This chapter provides the introduction of this thesis. Firstly the background regarding the research is discussed. It also provides the importance of this study with the problem discussion which will help the reader understand the purpose and research questions. Now days in organizations, commitment has become very popular subject of interest. Commitment is important in organization and as well as consequence of a number of work related variables.

Different studies define organizational commitment differently like commitment targeted specifically toward the organization as an administrative entity. The concept of organizational commitment can be comprises of followings.

Our society booms and develops, the employee`s commitment towards organization becomes more blurred and dissolves. Now day's employees are finding it difficult and hard for them to stay committed within the organization.

Different factors effect employee commitment differently. It includes certain commitments to the manager, profession, occupations or career. The concept of organizational commitment can be divided into three different types:

· Affective commitment which refers to employees' emotional attachment, identification and involvement towards the organization. Employees with a strong commitment use to stay within the organization because they want to remain in the organization.

· Continuance commitment which refers to employees' assessment; means the cost of leaving the organization is greater than the costs of staying within the organization. From employees point of view the costs of leaving the organization is greater than the costs of staying with the organization because they need to stay in the organization because they don't have any other choice while just staying in the organization.

· Normative commitment refers to employees' feeling of obligation (duty) to.

Employees' commitment consists of work commitment, organizational commitment and career commitment. Organizational commitment can also be defined as employee's involvement and his/ her level of dedication, sincerity and loyalty towards his/her organization in order to achieve organizational goals and objectives.

1.1 BACKGROUND

In this part Employee's commitment in the telecommunication industry of Pakistan is going to be discussed.

In economic sector Telecommunication is one of the important economic sectors in the world economy. It also has some impact on our lives as individuals, on our business in terms of efficiency and effectiveness and customer service on the basis of every country's competitiveness as a profitable economy.

On the other hand in business environment, employees use to face number of pressures to perform according to corporate expectations. These kinds of pressures are often created by highly competitive business environments, environments which can give continuous change and internal redesign or even stressful working conditions for the employees.

1.2 TELECOMMUNICATIONS

One of the most important economic sectors in the world is Telecommunication sector. It also has a major impact on our lives as individuals, on our business in terms of efficiency and effectiveness and every country's competitiveness as a profitable economy.

Currently Pakistan's telecommunications' industry comprises of five major service providers that are; Mobilink, Telenor, Ufone, Warid and Zong.

1.3.1 Mobilink

Mobilink Pakistan is the most Cellular Company use to claims to have 10 Millions Subscribers within nation wide.

Mobilink was the first one to launch cellular network in Pakistan. They established themselves as the major cellular company of Pakistan. Covering almost every city of Pakistan.

Mobilink is a big company that is why they are still expensive as compare to other companies like Ufone and Warid Tele etc. As majority of people are using Mobilink services this is the reason why Mobilink is still charging high rates from people especially from those people who belongs to business class and these people hesitate to switch to any other network to other cellular company.

Mobilink has the largest subscribers in Pakistan. They had also started GPRS services with Rs. 500/month of unlimited usage. Mobilink also had started service of 3 friend and family number with charges of only 2.2s/min still expensive as compared to Warid and other networks.

Mobilink has a well good enough infrastructure and a well established network. The Website of Mobilink is designed in a way that it gives the impression to the users like professionals are sitting behind to manage it. Everything is clearly described on the Website and it's easy to operate.

Mobilink is a major cellular company and it stands in first place. The only drawback Mobilink is facing that is it's the call rates which are very high (expensive).

1.3.2 Telenor

Telenor operates in almost 13 markets world wide and each on of those operates completed for the Best Brand Awards for the year 2007. The 2007 Telenor Brand Awards was given to Telenor of Pakistan.

Executive Vice President and head of Global Coordination Ragnar Korsaeth, presented the award to Telenor Pakistan as he says, the winner of this Award 2007 i.e. Telenor, because it has built up its brand preferences significantly above its market share. The company has its highest customer's level of satisfaction in highly competitive market.

Telenor is a subsidiary. It launched its GSM mobile services on 15th March 2005.

1.3.3 Ufone

Ufone is a subsidiary of PTCL and was established to provide cellular services across Pakistan. Currently Ufone is providing quality services to its subscribers across Pakistan. Ufone has currently lowered down its calling rates as compared to other networks. With the support of PTCL, Ufone always provides quality services to its subscribers.

GPRS services of Ufone are the best available in the market. They are always cooperative and listen to the problems of their subscribers and solve them as early as possible.

Ufone offers special features like Internet Bill payment for the first time in Pakistan. They are always a head from other networks in providing quality services. The best feature which is offered by Ufone is Web2SMS Chat Mobile banking pay via SMS.

Around 3 million subscribers are using Ufone network and it is still growing. Ufone is one of the best cellular companies in Pakistan with reliable coverage to over 100 cities.

1.3.4 Warid

In Pakistan May 2005, Warid launched it services and this Warid tel is operated by Abu Dhabi group which is led by Sheikh Nahyan Mabarak Al Nahayan. It has achieved a landmark by launching its services to almost 6,250 destinations, in Pakistan and expanding its quality of services around 486 cities. Warid telecom has some good features like low calling rates 30 sec billing. It is improving its coverage and hopes it will be improved as the company grows.

Major draw back it has a slowest GPRS service. Warid to Warid call rates are cheap but especially at nights sometimes it has network busy errors other than that it works fine.

Warid telecom is facing some current problems it should provide remedies for these problem in order to capture more market as their calling rates are promising.

1.3.5 Zong

First International brand of China Mobil is launched in Pakistan is Zong, in order to authorize the people of Pakistan in every corner of the country.

The core element of Zong is to allow people to communicate freely, network coverage. Zong is supported by element like ground break communications, trend setting customer service and an unmatched product offering which will redefine rules of the game. Zong is a hard struggler to be at number one spot.

Zong offer its customer with entertainments and innovative services and also authorize them by giving a variety of products and services.

1.3 PURPOSE OF THE STUDY

The purpose of the study is to find out that to what certain extent does some variables affects and address employee's commitment towards an organization and what impact it has on overall employee`s performance in the organization. This is based on private sectors of telecom industry embedded with the commitment of employees towards the organization.

1.4 PROBLEM STATEMENT

This study is exploring the relation among intervening variables (job satisfaction, loyalty, growth, incentives, working environment, communication, empowerment, motivation and training) and independent variable (employee commitment) and its effects upon the dependent variable (organizational performance). It has been found out after preliminary investigation that employees are less committed within the organization due to having less ownership in their work, low job satisfaction, not enough fruitful incentives, poor working environment, lack of growth and employee loyalty within organization and all other poor employee satisfaction factors like lack of training, empowerment, motivation and poor communication procedure within the organization, which results in high turnover rate in private sector of telecom organization.

1.5 OBSERVATION AND RESEARCH QUESTIONS

It is based upon high turnover rate in the telecom industry therefore the investigated factors affecting the commitment of employees and its effect on organizations. Also to investigate and determine the relationship between certain variable and addressing the following questions:

1. Is there a significant relationship between organizational loyalty and employee commitment,

2. Is there a significant relationship between organizational growth and employee commitment,

3. Is there a significant relationship between organization incentives and employee commitment,

4. Is there a significant relationship between working environment and employee commitment,

5. Is there a significant relationship between job satisfaction and employee commitment.

Independent variable: employee commitment

Dependent variable: better organizational development

Intervening variable: job satisfaction, loyalty, growth, incentives, working environment, overall employee satisfaction

Outcome: better organizational performance

1.7 SIGNIFICANCE OF THE STUDY

The success of any organization`s future business strategy relay on a great deal of it employee's commitment levels. It also depends upon on the organizational leadership to motivate, to attract and to retain committed employees for future business objectives.

Theoretically, this study added to the body of knowledge on the general subject of employee commitment. From a practical point of view, there is a link between affective organizational commitment and productivity in terms of outcomes such as job performance and attendance. Therefore, it is assumed that this study will be of interest to branch managers, human resource administrators, and persons who work directly with employees in the telecommunication industry.

1.8 SUMMARY OF THESIS

Chapter 1

In the opening section of Chapter 1, it includes the introduction of research topic and back ground for the research question. For this study Problem statement, purpose of the study, significance of the study and the research questions were used.

Chapter 2

This chapter contains a literature review related to the factors contributing towards employee commitment and what impact it has on organizational performance.

Chapter 3

This chapter focuses on the research methodology. The research question, sampling procedures, instrument, data-gathering procedures and the method of analysis are discussed in it.

Chapter 4

This chapter explains research and findings of the study on the basis of independent, dependent and intervening variables through the help of regression and correlation.

Chapter 5

In this chapter an elaborated views of implications, limitations and suggestions are provided.

Besides these all chapter at the end References and Appendix are also are given.

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