The Influence of Organizational Factors on Employees’ Commitment Levels: A Study of the Banking Sector of Pakistan

Abstract

Although a lot of international research studies have highlighted organizational practices to be an important determinant of employees’ commitment to their organizations, little attempt has been made to explore the relationship of these two concepts by researchers in Pakistan. The rationale for this study was to offer an insight into how Organizational Commitment and its three components namely Affective, Continuance and Normative Commitment may be influenced and enhanced by organizational factors consisting of Teamwork, Rewards, Training and Communication. This study also examined the relationship of demographic factors with the employees’ organizational Commitment to ascertain which set of variables has the highest impact on employee commitment. A random sample of 200 commercial bank employees was surveyed in Lahore through a questionnaire. Correlational, stepwise regression analyses were carried out to study the association between the dependant and the independent variables. Results revealed that on the whole, organizational factors were important determinants of employees’ commitment levels, while demographic factors had a relatively less significant association with the organizational commitment and its forms. Continuance form of commitment also showed weaker association with organizational factors as compared to Affective and Normative Commitments. Implications and recommendations have been presented for managers to utilize key organizational factors in order to enhance employees’ commitment levels.