The Effect of Job Satisfaction on Organizational Commitment: Insight Into Devaraj Agency

ADP FALL 2011 ID 49801 Senior Project: Management Ms. Linda Title: The effect of job satisfaction on organizational commitment: Insight into Devaraj Agency VIJAY MUTHU RAJAH A/L ANNAVI SCSJ-0005836 Table of Contents No| Description | Page| 1| Objective | 1| 2| Methodology| 2| 3| Introduction| 3| 4| Literature Review| 4-6| 5| Findings| 7-19| 6| Result of the findings| 20-21| 7| Limitation| 22| 8| Recommendation| 23| 9| Conclusion| 24| 10| Reference | 25| 11| Appendix| 26-28| Objective The objective of this project is to analyze the relationship between job satisfaction and organizational commitment among insurance agents in Devaraj Agency. The focus of this study is to analyze the general behavior of insurance agents towards job satisfaction, which may build higher levels of organizational commitment. This study is done based on Herzberg’s two- factor theory and more specifically, on Motivators factor. The findings of this project will help agency manager to understand the current level of job satisfaction and organizational commitment of agents towards their agency. Besides that, suggestions also will be given based on the result of the findings. If the satisfaction level and organizational commitment of insurance agents is low and then many suggestion will be given to solve the problem. If it is otherwise, suggestion will be to maintain or improve further the job satisfaction and organizational commitment of the agents. By this, the agency manager gets suggestions to solve job satisfaction and organizational commitment problem if any or to improve them further. Methodology Numerous of methods are to be used to identify the job satisfaction and organizational commitment of the agents. The method are as followed: Survey A survey was done with insurance agents from Devaraj Agency. The purpose of this survey is to find out the current level of job satisfaction and organizational commitment of the insurance agents. The survey would had 56 questions related to job satisfaction and organizational commitment. Interviews An Interview has been held with agency manager and few insurance agents. The purpose of interviewing agency manager is to get information about the human resource strategy, annual turnover rate and his perception on agent’s job satisfaction and organizational commitment. External sources The external sources were used in this research. The external sources were Internet and printed materials. These materials were very useful in doing literature review about job satisfaction, organizational commitment and the relationship of them. Introduction Devaraj Agency is one of the oldest Indian insurance agencies in ING Company. The main role of this agency is to sell the insurance as well as investment products of ING Bhd through direct selling techniques. Up to now, 100 over people working as insurance agents in this agency. However, there was no attempt has been taken to measure the job satisfaction and organizational commitment of the agents in this agency. Job satisfaction means ‘a pleasurable or positive emotional state resulting from the appraisal of one’s job or job experiences. (Locke, 1976). According to Porter (1968), organizational Commitment is a willingness of employees to exert high levels of effort on behalf of the organization, a strong desire to remain in the organization, and an acceptance of the organization’s major goals and values. It is important for Devaraj Agency to learn about job satisfaction and organizational commitment of its insurance agents because if agents satisfied with their job, they will have high commitment on their agency and that translate into high job performance and low absenteeism. Literature review Job satisfaction and organizational commitment receive considerable attention from industrial and organizational psychologists, management scientists, and sociologists. Three thousand studies had been done on job satisfaction alone by the time Locke prepared his study nearly 20 years ago (Locke, 1976). The interest of analyzing job satisfaction and organizational commitment stems from the concern of the behavioral consequences that hypothesized result in job satisfaction and/or organizational commitment. Among other topics, job satisfaction and/or organizational commitment have been shown or argued to be related to productivity, attendance at work, turnover, retirement, participation, labor militancy, sympathy for unions, and psychological withdrawal from work. Job Satisfaction According to Locke (1976, p. 300), job satisfaction is ‘a pleasurable or positive emotional state resulting from the appraisal of one’s job or job experiences. There are many researchers found that Herzberg’s Two-factor motivation Theory is related with employees’ job satisfaction when apply intrinsic motivator (Cesare and Sadri, 2003;Hellriegel and Slocum, 1998; Slocum and Helliegel, 2009). The intrinsic or motivator factors consist of responsibility, recognition, advancement, ach ievement, and work itself (Slocum and Helliegel, 2009; Furnham et al. , 2009). Intrinsic motivator factor is one of the variables that use to find out the positive relationship with job satisfaction (Bhuian and Mengue, 2002). Shaffer et al. (2000) suggested that the satisfaction of work itself relate with job satisfaction while see job satisfactions itself as an individual enjoys on their job which is very much related on the classification of nature of work itself (Pool and Pool, 2006; Couger, 1988 cited in Thatcher, et al. , 2002). Besides this, Herzberg stated in his two factors theory that there are two categorizes of motives for the employees known as satisfiers and dissatisfiers. He related intrinsic factors with job satisfaction and extrinsic factors with dissatisfaction (Gagne, 200; Sarmad, 2007). Organizational Commitment Organizational commitment has been defined more pragmatically by Porter (1968), who holds that it consists of a willingness of employees to exert high levels of effort on behalf of the organization, a strong desire to remain in the organization, and an acceptance of the organization’s major goals and values. Organizational commitment of the employees has been measured in several different ways and it has been related with many job related variables. Allen & Meyer (1990) developed a measure of organizational commitment with three major components: Affective component of organizational commitment refers to employees’ emotional attachment, identification and involvement in the organization; the Continuance component refers to commitment based on the costs that employees associate with leaving the organization; and Normative commitment reflects an employee’s feeling of obligation to remain with the organization. Link between job satisfaction and organizational Commitment Job satisfaction has been associated with organizational commitment (Boles, et al. 2007; Pool and Pool, 2007; Brown and Peterson, 1993), which is broadly defined as the â€Å"psychological bond between people and organizations† (Buchanan 1974; Tett and Meyer, 1993). The study of Klaus, et al. , (2003) found that there is an effect of work challenging (intrinsic motivation) as a work nature, which can impact on affective organizational commitment . According to Steinhaus & Perry (1996) committed and satisfied employees are unlikely to indicate low performance and are normally highly productive who identify with organizational goals and organizational values (Churchill et al. , (1993). Similarly, if employees are highly satisfied with their work, promotion chances and that derive high level of overall job satisfaction with their jobs they are more likely to be committed to the organization than if they are not satisfied. The focus on this concept was not over stated because job satisfaction and commitment are primary determinants of employee turnover, performance, and productivity (Opkara, 2004). Beside that, Balfour and Wechsler (1996) pointed out that overall organizational commitment is an appropriate and significant aspect to focus for organizational productivity and performance. Ayeni and Phopoola (2007) also have found that there is a strong relationship between job satisfaction and organizational commitment. According to them Job satisfaction is mostly determine how well the organization meets employees expectations. According to Cote & Heslin (2003). Findings The job satisfaction and organizational commitment survey has been done with the insurance agents in two weekly meetings held in ING Damansara office and ING Klang office. All insurance agents attended the meeting participated in this survey. In total, the survey form had 47 questions including three demographic questions. It was divided into three sections. The first section was contained 36 questions about job satisfaction. The second section contained 8 questions about organizational commitment. The third section contained 3 questions about demographic. All questions of job satisfaction in this survey were originally derived from the job satisfaction survey form developed by Paul E. Spector. The survey form contained 36 questions of both motivator and hygiene factor. The questions related to motivator factor ware given utmost importance in this survey compared to the questions of hygiene factors because motivator factor leads to job satisfaction but hygiene factor does not and it leads to job dissatisfaction. The question number 2,5,8,11,14,17,19,20,24,27,31,32,33 and 35 in the survey had been identified as motivator factor related questions while the other questions were related to hygiene factor. The rating scale used for job satisfaction survey was a 6-point scale which ranging from â€Å"disagrees very much† to â€Å"agree very much†. The survey questions of organizational commitment were taken from the affective commitment related questions in Allen and Meyer’s Organizational Commitment Scale. Allen and Meyer’s organizational commitment scale’ original 7 point scale has been modified in this survey to 6 points scales by removing neither agree or disagree option. It is to get more accurate answers from the participants. The modified scale ranging from (1) disagrees very much to (6) agree very much. Findings of demographic In total, 56 insurance agents participated in this questionnaire. Out of 56 espondents, 36 respondents were male while 20 respondents were female. The majority of the respondents participated in this survey were aged between 30 to 39 years old. The age of other respondents were 16 respondents were between 20 to 29 years old, 12 respondents were between 40 to 49 years old and 12 respondents were between 50 to 59 years old. The race of participants did not ask in this questionn aire because Deveraj Agency is the Indian agency and all agents should be Indians. Majority of respondents (16 respondents) said their income range was between RM 4,100 to RM 5,000. The income range of others was 12 respondents was between RM2,100 to RM3,000, 8 respondents was between RM 3,100 to RM4,000, 8 respondents was more than RM5,000 and 4 respondents was between RM1,000 to RM 2,000. Findings of Job satisfaction on motivator factor The findings of Job satisfaction on motivator factor| No| | Disagree very much| Disagree moderately| Disagree slightly| Agree slightly| Agree moderately| Agree very much| 2| There is really too little chance for promotion on my job. | 28| 5| 3| 4| 7| 9| 5| When I do a good job, I receive the recognition for it that I should receive. 0| 0| 0| 5| 9| 42| 8| I sometimes feel my job is meaningless. | 23| 10| 0| 7| 16| 0| 11| Those who do well on the job stand a fair chance of being promoted. | 4| 7| 9| 0| 5| 31| 14| I do not feel that the work I do is appreciated. | 16| 17| 3| 18| 0| 2| 17| I like doing the things I do at work. | 4| 0| 0| 2| 14| 36| 19 | I feel unappreciated by the organization when I think about what they pay me. | 24| 10| 7| 3| 8| 0| 20| People get ahead as fast here as they do in other places. | 7| 0| 9| 16| 19| 17| 24| I have too much to do at work. | 6| 6| 2| 22| 5| 15| 27| I feel a sense of pride in doing my job. 0| 3| 0| 0| 34| 19| 31| I have too much paperwork. | 2| 11| 0| 26| 9| 8| 32| I don't feel my efforts are rewarded the way they should be. | 25| 12| 4| 4| 5| 6| 33| I am satisfied with my chances for promotion. | 0| 0| 0| 12| 10| 36| 35| My job is enjoyable. | 0| 8| 0| 3| 10| 35| The findings of Job satisfaction on motivator factor| No| | Agree| Disagree| 2| There is really too little chance for promotion on my job. | 34%| 66%| 5| When I do a good job, I receive the recognition for it that I should receive. | 100%| 0%| 8| I sometimes feel my job is meaningless. 33%| 67%| 11| Those who do well on the job stand a fair chance of being promoted. | 64%| 36%| 14| I do not feel that the work I do is appreciated. | 36%| 64%| 17| I like doing the things I do at work. | 93%| 7%| 19 | I fee l unappreciated by the organization when I think about what they pay me. | 27%| 73%| 20| People get ahead as fast here as they do in other places. | 71%| 29%| 24| I have too much to do at work. | 75%| 25%| 27| I feel a sense of pride in doing my job. | 93%| 7%| 31| I have too much paperwork. | 71%| 29%| 32| I don't feel my efforts are rewarded the way they should be. 29%| 71%| 33| I am satisfied with my chances for promotion. | 100%| 0%| 35| My job is enjoyable. | 86%| 14%| The findings of the statements that related to motivator factors in the job satisfaction survey as followed: 2) There is really too little chance for promotion on my job. Higher percentage of respondents (66 percent) said disagrees to the statement if compared to the number of respondent said agree (34 percent). The large number of respondents (28 respondents) said they â€Å"disagrees very much† to the statement. 5) When I do a good job, I receive the recognition for it that I should receive. For this statement, the 100 percent of respondents said that they agree that when they do a good job, they receive the recognition that they should receive. The higher number of respondent (42 respondents) said they â€Å"agree very much† to the statement. 8) I sometimes feel my job is meaningless Percentages of respondents (67 percent) disagree to the statement, which was higher than the percentages of respondents agree (33 percent). From the 67 percent of respondents said agree, the highest number of respondents (23 respondents) responded as â€Å"disagree very much† 11) Those who do well on he job stand a fair chance of being promoted. The percentage of respondent agree and disagree to the statement was (64 percent) agree and 36 percent of respondent said disagree. So, the percentage of respondents who said agree was higher than the percentage of respondent said disagree. Most number of respondent (31 respondent) said that they â€Å"agree very much† to the st atement. 14) I do not feel that the work I do is appreciated. For this statement, 64 percentage of respondents said that they disagree while 36 percentage of respondent said agree. So the percentage of respondents who disagree that they do not feel that the work they do is appreciated was higher than the percentage of respondent who agree. 17) I like doing the things I do at work. The majority of respondent in percentage said they agree that they like the things they do at work were 93 percent. Only 7 percentage of respondent said that they disagree to the statement. â€Å"Agree very much† option received most number of responses from the respondents (36 responses) if compared to the other four options. 19) I feel unappreciated by the organization when I think about what they pay me. For this negative statement, higher percentage of respondents (73 percent) disagree if compared to the percentage of respondent (27 percent) agree. The large number of respondent who said disagree were disagree very much (24 respondents). 20) People get ahead as fast here as they do in other places. The response for this positive statement was positive where 71 percent of respondent said agree. The percent of respondent said disagree was 29 percent. The highest number of respondent answered to the statement as they agree moderately and that followed by agree slightly and agree very much. 4) I have too much to do at work. For this statement, the percentage of respondents (75 percent)who said, â€Å"Agree† is higher than the percentage of respondents(25 percent) who said, â€Å"Disagree†. The highest number of respondent (22 respondents) responded as â€Å"agree slightly†. 27) I feel a sense of pride in doing my job. The large percentages of respondents (93 percent ) said agree to the statement while only small percentages of respondents (7 percent) disagree to the statement. So when compare the response received to the five scales for this statement, the scale â€Å"agree moderately† received highest response. 1) I have too much paperwork For this negative statement, higher percentages of respondent (71 percent) said agree that they have to do too much paperwork. Only lower percentage of respondents (29 percent) said that they disagree to the statement. Most respondent agree to this statement were agree slightly (26 respondents). 32) I don't feel my efforts are rewarded the way they should be For this statement, higher percentages of respondent disagree to the statement than agree. The percentage of disagree and agree was 71 percent and 29 percent respectively. The high response of respondents for â€Å"disagree† was received for â€Å"disagree very much†(26 responses). 33) I am satisfied with my chances for promotion. All responses received for this statement was positive where the percentage of respondents who said agree was 100 percent. None of the participant disagree to this statement. The high response of respondent for â€Å" agree† was received to â€Å"agree very much†(36 respondents) 35) My job is enjoyable. For this statement, the percentage of respondent who agree was (86%) which is far higher than the percentage of respondent (14%) who said disagree. The majority of respondent (35 respondents)who said agree, responded as â€Å"agree very much†. Findings of job satisfaction on hygiene factor The findings of hygiene factor related questions were also included in this paper. This finding was not used in this paper to discuss about job satisfaction because they are not related to job satisfaction but instead they are related to job dissatisfaction. But, this finding was used to identify the job dissatisfaction level of the insurance agent in Devaraj Agency. Based on the outcome, recommendation will be given if there are any hygiene factor related problems. The findings of Job satisfaction for hygiene factor| No| | Disagree very much| Disagree moderately| Disagree slightly| Agree slightly| Agree moderately| Agree very much| 1| I feel I am being paid a fair amount for the work I do. | 8| 0| 0| 8| 8| 32| 3| My supervisor is quite competent in doing his/her job. | 4| 0| 5| 3| 24| 20| 4| I am not satisfied with the benefits I receive. | 30| 0| 8| 14| 0| 4| 6| Many of our rules and procedures make doing a good job difficult. | 4| 12| 7| 9| 14| 10| 7| I like the people I work with. 3| 0| 0| 13| 8| 32| 9| Communications seem good within this organization. | 0| 0| 0| 8| 8| 40| 10| Raises are too few and far between. | 24| 12| 0| 0| 16| 4| 12| My supervisor is unfair to me. | 32| 0| 12| 8| 4| 0| 13| The benefits we receive are as good as most other organizations offer. | 4| 15| 0| 5| 20| 12| 15| My efforts to do a good job are seldom blocked by red tape. | 16| 8| 8| 12| 12| 0| 16| I find I have to work harder at my job because of the incompetenc e of people I work with. | 8| 0| 0| 8| 16| 24| 18| The goals of this organization are not clear to me. 35| 4| 0| 8| 7| 0| 21| My supervisor shows too little interest in the feelings of subordinates. | 34| 7| 2| 7| 6| 0| 22| The benefit package we have is equitable. | 0| 0| 14| 2| 16| 20| 23| There are few rewards for those who work here. | 3| 16| 1| 27| 4| 5| 25| I enjoy my coworkers. | 0| 4| 0| 12| 12| 28| 26| I often feel that I do not know what is going on with the organization. | 26| 7| 3| 13| 3| 4| 28| I feel satisfied with my chances for salary increases. | 0| 4| 0| 8| 12| 32| 29| There are benefits we do not have which we should have. 8| 5| 12| 14| 10| 7| 30| I like my supervisor. | 2| 0| 0| 7| 5| 42| 34| There is too much bickering and fighting at work. | 20| 13| 2| 7| 3| 11| 36| Work assignments are not fully explained. | 16| 17| 4| 4| 12| 3| | | | | | | | | The findings of Job satisfaction for hygiene factor| No| | Agree| Disagree| 1| I feel I am being paid a fair amount f or the work I do. | 48| 8| 3| My supervisor is quite competent in doing his/her job. | 47| 9| 4| I am not satisfied with the benefits I receive. | 18| 38| 6| Many of our rules and procedures make doing a good job difficult. 33| 23| 7| I like the people I work with. | 3| 52| 9| Communications seem good within this organization. | 56| 0| 10| Raises are too few and far between. | 20| 36| 12| My supervisor is unfair to me. | 12| 44| 13| The benefits we receive are as good as most other organizations offer. | 43| 13| 15| My efforts to do a good job are seldom blocked by red tape. | 24| 32| 16| I find I have to work harder at my job because of the incompetence of people I work with. | 38| 8| 18| The goals of this organization are not clear to me. 15| 41| 21| My supervisor shows too little interest in the feelings of subordinates. | 13| 43| 22| The benefit package we have is equitable. | 46| 10| 23| There are few rewards for those who work here. | 36| 20| 25| I enjoy my coworkers. | 52| 4| 26| I often feel that I do not know what is going on with the organization. | 20| 36| 28| I feel satisfied with my chances for salary increases. | 52| 4| 29| There are benefits we do not have which we should have. | 33| 23| 30| I like my supervisor. | 54| 2| 34| There is too much bickering and fighting at work. 21| 35| 36| Work assignments are not fully explained. | 19| 37| Overall, job dissatisfaction of insurance agents in Devaraj Agency is low. The evident is that the respondents responded positively to 22 statements in the hygiene related job satisfaction questionnaire but only for 3 statements they respondent negatively. Findings of Organizational Commitment Findings of Organizational Commitment Survey (Affective Commitment)| No| | Disagree very much| Disagree moderately| Disagree slightly| Agree slightly| Agree moderately| Agree very much| 1| It would e very hard for me to leave my agency right now, even if I wanted to| 2| 0| 5| 7| 10| 32| 2| I do not feel any obligation to r emain with my current employer| 24| 13| 7| 0| 0| 12| 3| I would be very happy to spend the rest of my career with this agency| 0| 0| 4| 0| 7| 45| 4| Even if it were to my advantage, I do not feel it would be right to leave my agency now| 5| 0| 3| 9| 15| 24| 5| I really feel as if this agency’s problems are my own| 6| 6| 0| 5| 24| 15| 6| Right now, staying with my agency is a matter of necessity as much as desire| 0| 0| 3| 12| 24| 17| 7| I do not feel a strong sense of â€Å"belonging† to my agency| 16| 14| 4| 12| 7| 3| 8| I feel that I have too few options to consider leaving this agency| 16| 2| 0| 25| 7| 8| Findings of Organizational Commitment Survey (Affective Commitment)| No| | Agree| Disagree| | It would be very hard for me to leave my agency right now, even if I wanted to| 88%| 12%| 2| I do not feel any obligation to remain with my current employer| 21%| 79%| 3| I would be very happy to spend the rest of my career with this agency| 93%| 7%| 4| Even if it were to my advantage, I do not feel it would be right to leave my agency now| 68%| 32%| 5| I really feel as if this agency’s problems are my own| 79%| 21%| 6| Right now, staying with my agency is a matter of necessity as much as desire| 95%| 5%| 7| I do not feel a strong sense of â€Å"belonging† to my agency| 39%| 61%| 8| I feel that I have too few options to consider leaving this agency| 29| 71%| For the first question of organizational commitment, 88 percent of respondents said that they wound not leave the agency right now even if they wanted but only 12 percent of respondents said they would. The large numbers of respondents (32 respondents) â€Å"agree very much† that they would not leave the agency if they wanted also. The next question was â€Å"I do not feel any obligation to remain with my current employer†. 79 percent of respondents said that they disagree to the statement and said that they do have the feeling of obligation to remain with their current employer. The number of respondents who â€Å"disagree very much† to the statement (24 respondents) was higher than the total number of respondents who said they â€Å"agree slightly†, â€Å"agree moderately† and â€Å"agree very much†. For the statement â€Å"I would be very happy to spend the rest of my career with this agency†, 93 percentage of respondents said agree while 7 percent of respondents said disagree. So, the number of respondents who said agree is higher than the number of respondents who said disagree. Out of the 93 percentage of respondents, the highest numbers of respondents (45 respondents) â€Å"agree very much† than agree slightly or agree moderately. The statement â€Å"Even if it were to my advantage, I do not feel it would be right to leave my agency now† received higher number of agree as response than disagree from the participants. The percentage of respondents who said agree and disagree was 68 percent of respondents said agree and 32 percent of respondents said disagree. Most respondents â€Å"agree moderately† and â€Å"agree very much† to the statement. The fifth statement in the organizational commitment questionnaire â€Å"I really feel as if this agency’s problems are my own, 79 percent of respondent said they agree they do feel the agency’s problem as their problem while 21 percent of respondents said they do not feel so. Thus, the number of respondent agree to the statement is higher than the respondents who disagree. Similar to the previous statement, most respondents â€Å"agree moderately† and â€Å"agree very much† to this statement. The next statement was â€Å"Right now, staying with my agency is a matter of necessity as much as desire†. For this statement also the majority of respondents said that they agree that staying with this agency is a matter of necessity as much as desire. The percentage of respondent who said agree and disagree was 95 percent of respondents said agree while only 5 percent of respondents said disagree. Of 95 percent of respondents, the largest number of respondents said that they agree moderately and that followed by â€Å"agree very much† and then â€Å"agree slightly†. For the statement â€Å"I do not feel a strong sense of â€Å"belonging† to my agency, the number of respondents who disagree is higher than the respondents who agree. 39 percent of respondents and 61 percent of respondents said agree and disagree respectively to the statement. The number of respondents â€Å"disagree very much† to the statement. The last statement was â€Å"I feel that I have too few options to consider leaving this agency†. Higher percent of respondent (71 percent of respondents) answered as disagree and said that there are many options available out there to consider if they wanted to leave the agency but 29 percent of respondents said disagree and support the statement. However, most respondents just â€Å" agree slightly† to the statement. Findings from interview Based on the interview with Mr Devaraj, the information of the average agents’ performance, overall agency’s performance and turnover rate has been collected. The average agent’s performance level from January 2011 to 9 November 2011 was 69 percent. He also said that the major contributor for the higher average agent’s performance level was a small number of high performers. Besides that, he said the overall agency’s performance was 71 percent. It enabled Deveraj Agency to still hold on the title of top Indian agency in Klang Valley, which it was defending more than 5 consecutive years. Besides that, he said turnover rate of insurance agent was a major problem. The average annual turnover was 6 % percent. The major contributor to this turnover was new insurance agent because when they find hard to sell insurance products, they quit the job. The turnover of senior agents was not even 0. 5 percent of annual turnover. Result of the findings The relationship between job satisfaction and organizational commitment has been proven once again through this research. According to the findings, the job satisfaction of the insurance agents in Devaraj Agency is high. The proof is the result of motivator factor questions in the job satisfaction questionnaire. There was 13 motivator factor related questions in the questionnaire. Out of the 13 questions, for 11 questions the insurance agents responded positively while only for 1 question they responded negatively. Positive response means the insurance agents agree to the positive statement about job satisfaction and disagree to negative statement. Example of positive statement in this job satisfaction questionnaire is â€Å"I am satisfied with my chances for promotion. † The overall response of respondents to this positive statement was positive means they gree to the statement. Negative response means the insurance agents disagree to positive statement and agree to negative statement. Example of negative statement in job satisfaction questionnaire that received positive response from respondent s was â€Å"I have too much paperwork†. It means the respondent agree to the negative statement. Overall, positive response to the questionnaire is higher than the negative response. It means that insurance agents were highly satisfied with their job. As the respondents responded positively to the job satisfaction questionnaire, the same way they responded positively to organizational commitment questionnaire. In the organizational commitment questionnaire, there were 8 statement related to affective commitment. Out of the 8 statements, the respondents responded positively to all the statements. An example of positive statement and positive response was â€Å"It would be very hard for me to leave my agency right now, even if I wanted to† is the positive statement and the positive response is 85. 7% of respondents said agree to the statement. Similarly, the example of negative statement and negative response is I do not feel any obligation to remain with my current employer was the negative statement and negative response was 78. 6% of respondents said disagree to the statement. The negative statement and negative response shows positive response toward organizational commitment. Based on job satisfaction and organizational commitment questionnaire result, it is proven that there is a strong relationship between job satisfaction and organizational commitment. So, if job satisfaction of an employee is high, the organizational commitment also high. It is what happened in Devaraj agency; the job satisfaction of the insurance agents was high so the organizational commitment also high. Due to the higher organization commitment, the average job performance of the insurance agents was as high as 69% and average agency performance was as high as 87% and turnover rate was as low as 6% low annually. So, the high organizational commitment of an insurance agent will result in higher job performance, higher overall agency performance and lower turnover rate. Limitation There were two limitations in my research. The first limitation was that not all insurance agents in Devaraj Agency have taken the job satisfaction and organizational commitment survey. The survey only have been done with the agents attended the meeting. So the result of the survey could not be guaranteed, as 100% accurate as the views of the insurance agents who did not attend meeting were not taken. The second limitation in my research was that the connection of job satisfaction leads to organizational commitment could not be proven through the help of job satisfaction and organizational commitment questionnaire. But the relationship of job satisfaction and organizational commitment has been proved in a way that if job satisfaction of an employee is high, the organizational commitment is also high and it is otherwise if the job satisfaction is low. Recommendation Recommendations were done based on the problem identified through job satisfaction and organizational commitment questionnaire. 1) Hiring more clerical staff Based on the job satisfaction questionnaire, most insurance agents responded that they have to do too much paperwork. It may affect the agents’ job satisfaction. So Devaraj Agency should hire more clerical staff to help the insurance agents to do the paperwork. 2) Revise current code of procedure Many respondents said through the questionnaire that they are not happy with their current rules and procedures because they make their job difficult. So, the agency manager should bring this issue to ING management and find ways to solve this problem. Revising current rules and procedure would be ideal solution. 3) Introduce more monetary benefits Many insurance agents expressed their concern that there are benefits they do not have which they should have. The benefits such as petro allowance and toll allowance is given to sales people from other company but ING Bhd do not give such benefits to its insurance agents. So Devaraj Agency should bring this issue to ING management. Conclusion The relationship of job satisfaction and organizational commitment has been proved through literature review and from my research on Devaraj Agency. The result showed that there are strong relationship between job satisfaction and organizational commitment. Overall, the job satisfaction of insurance agents in Devaraj Agency is high and organizational commitment is also high. There was also relationship between organizational commitment and job performance, turnover rate and agency performance. It was also proved where the job performance, turnover rate and agency performance was high because the organizational commitment of insurance agents was high. Reference Appendix JOB SATISFACTION SURVEY| PLEASE CIRCLE THE ONE NUMBER FOR EACH QUESTION THAT COMES CLOSEST TO REFLECTING YOUR OPINIONABOUT IT. | Disagree very muchDisagree moderatelyDisagree slightlyAgree slightlyAgree moderatelyAgree very much| 1 | I feel I am being paid a fair amount for the work I do. | 1 2 3 4 5 6| 2| There is rea lly too little chance for promotion on my job. | 1 2 3 4 5 6| 3| My supervisor is quite competent in doing his/her job. | 1 2 3 4 5 6| 4 | I am not satisfied with the benefits I receive. | 1 2 3 4 5 6| 5| When I do a good job, I receive the recognition for it that I should receive. 1 2 3 4 5 6| 6| Many of our rules and procedures make doing a good job difficult. | 1 2 3 4 5 6| 7| I like the people I work with. | 1 2 3 4 5 6| 8| I sometimes feel my job is meaningless. | 1 2 3 4 5 6| 9| Communications seem good within this organization. | 1 2 3 4 5 6| 10| Raises are too few and far between. | 1 2 3 4 5 6| 11| Those who do well on the job stand a fair chance of being promoted. | 1 2 3 4 5 6| 12| My supervisor is unfair to me. 1 2 3 4 5 6| 13| The benefits we receive are as good as most other organizations offer. | 1 2 3 4 5 6| 14| I do not feel that the work I do is appreciated. | 1 2 3 4 5 6| 15| My efforts to do a good job are seldom blocked by red tape. | 1 2 3 4 5 6| 16| I find I h ave to work harder at my job because of the incompetence of people I work with. | 1 2 3 4 5 6| 17| I like doing the things I do at work. | 1 2 3 4 5 6| 18| The goals of this organization are not clear to me. | 1 2 3 4 5 6| PLEASE CIRCLE THE ONE NUMBER FOR EACH QUESTION THAT COMES CLOSEST TO REFLECTING YOUR OPINIONABOUT IT. | Disagree very muchDisagree moderatelyDisagree slightlyAgree slightlyAgree moderatelyAgree very much| 19 | I feel unappreciated by the organization when I think about what they pay me. | 1 2 3 4 5 6| 20| People get ahead as fast here as they do in other places. | 1 2 3 4 5 6| 21| My supervisor shows too little interest in the feelings of subordinates. | 1 2 3 4 5 6| 22| The benefit package we have is equitable. | 1 2 3 4 5 6| 23| There are few rewards for those who work here. 1 2 3 4 5 6| 24| I have too much to do at work. | 1 2 3 4 5 6| 25| I enjoy my coworkers. | 1 2 3 4 5 6| 26| I often feel that I do not know what is going on with the organization. | 1 2 3 4 5 6| 27| I feel a sense of pride in doing my job. | 1 2 3 4 5 6| 28| I feel satisfied with my chances for salary increases. | 1 2 3 4 5 6| 29| There are benefits we do not have which we should have. | 1 2 3 4 5 6| 30| I like my supervisor. 1 2 3 4 5 6| 31| I have too much paperwork. | 1 2 3 4 5 6| 32| I don't feel my efforts are rewarded the way they should be. | 1 2 3 4 5 6| 33| I am satisfied with my chances for promotion. | 1 2 3 4 5 6| 34| There is too much bickering and fighting at work. | 1 2 3 4 5 6| 35| My job is enjoyable. | 1 2 3 4 5 6| 36| Work assignments are not fully explained. | 1 2 3 4 5 6| ORGANIZATIONAL COMMITMENT SURVEY| | PLEASE CIRCLE THE ONE NUMBER FOR EACH QUESTION THAT COMES CLOSEST TO REFLECTING YOUR OPINIONABOUT IT. Disagree very muchDisagree moderatelyDisagree slightlyAgree slightlyAgree moderatelyAgree very much| 1| It would be very hard for me to leave my agency right now, even if I wanted to| 1 2 3 4 5 6| 2| I do not feel any obligation to remain with m y current employer| 1 2 3 4 5 6| 3| I would be very happy to spend the rest of my career with this agency| 1 2 3 4 5 6| 4| Even if it were to my advantage, I do not feel it would be right to leave my agency now| 1 2 3 4 5 6| 5| I really feel as if this agency’s problems are my own| 1 2 3 4 5 6| 6| Right now, staying with my agency is a matter of necessity as much as desire| 1 2 3 4 5 6| 7| I do not feel a strong sense of â€Å"belonging† to my agency| 1 2 3 4 5 6| 8| I feel that I have too few options to consider leaving this agency| 1 2 3 4 5 6| Demographic questions Personal Particulars Are you Male or Female? (a) Male (b) Female What is your age? (a) 11 to 19 years old (b) 20 to 29 years old (c) 30 to 39 years old (d) 40 to 49 years old (e) 50 to 59 years old (f) 60 years old and above What is your income? a) Less than RM1000 (b) RM1000 to RM2000 (c) RM2100 to RM3000 (d) RM 3100 to RM4000 (e) RM4100 to RM5000 (f) More than RM5000 Reference 1) Noor Harun, A. K. & Noo r Hasrul N. M. N. (2007). Evaluating the psychometric properties of allen and meyer’s organizational commitment scale: A cross culture application among Malaysian academic librarians. Malaysian Journal of Library & information science, 11(1), Retrieved from http://myjurnal. um. edu. my/filebank/published_article/2034/360. pdf. 2) Price, James L & Mueller, C. W. (1997, October). Measures of job satisfaction Retrieved 7 October 2011 from http://home. ubalt. edu/tmitch/641/jsscales. htm ) Shrivastava. A and Purang. P. (2009). Employee Perceptions of job satisfaction: Comparative study on Indian banks. Asian Academy of Management Journal, 14(2), Retrieved from http://web. usm. my/aamj/14. 2. 2009/AAMJ_14. 2. 4. pdf. 4) Shrivastava. A and Purang. P. (2009). Employee Perceptions of job satisfaction: Comparative study on Indian banks. Asian Academy of Management Journal, 14(2), Retrieved from http://web. usm. my/aamj/14. 2. 2009/AAMJ_14. 2. 4. pdf. 5) Sangroengrob. T. Techachaicherd choo. The impact of employee’s satisfaction, organization commitment and work commitment to turnover intention: A case study of IT outsourcing company in Thailand. Retrived from http://bai-conference. org/files/BAI2010%20Proceeding/Papers/7. OB&HRM/7204. pdf 6) Samad. S, (2011). The Effects of Job Satisfaction on Organizational Commitment and Job Performance Relationship: A Case of Managers in Malaysia’s Manufacturing Companies. European Journal of Social Sciences, 18(4). Retrieved from http://www. eurojournals. com/EJSS_18_4_11. pdf 7) Padala. S. R,(2011). 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