This research is an empirical analysis of how organizational structures affect job attitude(organizational commitment, and job satisfaction). Its analytical data is based on a perceptional survey of public servants working in the central government of...
This research is an empirical analysis of how organizational structures affect job attitude(organizational commitment, and job satisfaction). Its analytical data is based on a perceptional survey of public servants working in the central government offices of the Republic of Korea. In particular, by analyzing the mediating role of organizational commitment in efforts to establish the relationship between organizational structures and job satisfaction, the research established what the situational context and structural relationship was between organizational structures and work attitude. Based on the theories of organizational structures by Robbins(1987) and Aiken & Hage(1968), job satisfaction theories by Mason(1995) and Hage(1986) and organizational commitment theories by Allen & Mayer(1991) and Poter & Steers(1974), the research was carried out using a research design and questionnaires. To facilitate an empirical analysis, 1,410 questionnaires have been distributed to be filled out. Out of the total number of questionnaires distributed, 1,161 questionnaires were filled out and returned, and 1,114 of them have been used for a final analysis.
To identify measurable variables for an empirical analysis of organizational structures and job attitude, the research did a causal analysis. The causal variables for organizational structures are centralization of power, formalization, and complexity; measures for organizational commitment are affective commitment, continuance commitment, and normative commitment; measures for job satisfaction are intrinsic job satisfaction and extrinsic job satisfaction. The research also analyzed the reliability of these measures, which proved to be high.
For carrying out a structural equation modeling analysis, which is the central analytical model of this research, and for testing its hypothesis, the research used LISREL statistics program. The following is the summary of results and findings obtained from the empirical analysis.
First, concerning the relationship between organizational structures and job satisfaction, the research found the following results. The higher the formality of an organizational structure, the greater was the level of job satisfaction(intrinsic job satisfaction > extrinsic job satisfaction). There was a positive relationship between the formality of an organizational structure and the level of job satisfaction. On the other hand, the more centralized an organizational structure was, the level of job satisfaction(extrinsic job satisfaction > intrinsic job satisfaction) decreased. Thus, there was a negative relationship between the two. This analytical result is in line with the research done by such authors as Ji Dong Soo(1991), Oh Yeon Poong ‧ Cho Song Won ‧ Kim Jae Poong(2001), who argued that the more formalized an organization became, that is, as organizational rules and guidelines became clearer, the job satisfaction level increased. On the other hand, as an organization became more centralized, the level of job satisfaction decreased. This finding is in line with the research results of Tannenbaum(1968), Pennings(1976), and Sorensen(1976) who argued that as an organization became more decentralized, the effectiveness of that organization would increase.
Second, as far as the relationship between organizational structures and organizational commitment was concerned, the variables of formality, centralization, and complexity proved to have a positive relationship with affective commitment and normative commitment; on the other hand, the three variables had a negative relationship with continuance commitment. This analytical result demonstrates that the public servants' sense of duty and responsibility and emotional attachment to the organization were important causal factors affecting job motivation.
Third, using the three organizational commitment variables(affective/ normative/ continuance) as suggested by Allen & Mayer(1991), the research tried to determine what the mediating effect of formalization, centralization, and complexity was on intrinsic and extrinsic job satisfaction and drew the following conclusions. Although there was a positive relationship between formalization and intrinsic/extrinsic job satisfaction, it was not at a level of statistical significance. On the other hand, in efforts to determine the relationship between formalization and intrinsic/extrinsic job satisfaction using the mediating variable of organizational commitment, the results showed that there was a positive relationship of statistical significance. Thus, it found that an organizational commitment had an mediating effect on formalization and job satisfaction.
This research conducted an empirical analysis demonstrating that organizational structures affected job attitude. Thus, analytical discussions and conclusions of the research carry the following policy implications.
First, this research confirmed that there was a causal relationship between organizational structures and the level of job satisfaction. In particular, based on its analytical findings that a centralized organizational structure had a negative effect on the level of job satisfaction, the research was able to infer the following. In a centralized organization where organizational vision or objectives are decided at the top level, members of such an organization proved unable to internalize the vision and objectives. In other words, it was difficult to form a consensus among the members because they treated the vision and objectives of the organization as being exclusive. On the other hand, in a decentralized organization, members of such an organization had a greater commitment to the organizational vision or objectives. In conclusion, the research found that it was easier to form a consensus among members of decentralized organizations than in centralized organizational structures.
Second, this research was able to confirm that the variable of organizational commitment had an mediating effect in the relationship between organizational structures and job satisfaction. Depending on the level of organizational commitment, the level of individual employee's job satisfaction could also be affected by changes in the organizational structure. Thus, serious consideration should be given to various policy measures that could have a positive effect on the organizational commitment. What is primarily needed is the ability to draw consensus among and support from organizational members and to make them believe that the changes introduced by the organization are for the progressive development of both the organization as well as individual members. One of the effective ways to speed up the process of increasing organizational commitment would be to introduce and implement an educational and training program, which will be geared towards creating a consensus among the organizational members for the vision and values of the organization.
Third, now that it has been established that an organizational structure has an effect on job attitude(organizational commitment, and job satisfaction), an effective change management strategy may be needed to induce a positive job attitude. To help induce behavioral and attitudinal changes among the members of the organization for greater job performance, one may need to consider adopting a strategic approach such as decentralization and formalization for rationalizing the organizational structure.
Although this research tried to do an empirical analysis of the effect of organizational structures on job attitude, it realizes that there are some further studies that need to be done. The author believes that further research work needs to be done on those areas that could not be covered here.
First, ensuring continuous stability while an organization goes through a process of change is very important. Hence, there should be greater interest in doing research on organizational climate or organizational culture. Although this research did not cover such variables as organizational climate, culture and leadership and how they can affect work attitude, it believes that there should be more comprehensive studies in the future by including these variables.
Second, future research should not only rely on subjective indicators such as perceptional survey but should also try and find objective indicators or proxy variables that can be used in public organizations.
Finally, a long-term, objective, and an in-depth study is needed on the process of change in governmental organizational structures and the accompanying changes in work attitude among the organizational members. In the process the study should also try and determine what the important causal factors are for change in government organizations.