mallik arjun appa

ISSN (Online): 0976-0148 ISSN (Print): 0976-013X

Journal of Management & Public Policy

Vol. 1 No. 1 December 2009 Editor Srirang Jha Editorial Advisory Panel

Mansoor Al-A'ali, University of Bahrain, Bahrain Jacqueline L. Angel, University of Texas at Austin, USA Damon Anderson, Monash University, Victoria, Australia Daya Shanker, Deakin University, Melbourne, Australia Nalin Bharti , Indian Institute of Technology, Patna, India P K Chaubey, Indian Institute of Public Administration, New Delhi, India Parag Dubey, Indian Institute of Forest Management, Bhopal, India Md. Firoz, Manipal University Dubai Campus, UAE Shama Gamkhar, University of Texas at Austin, USA Francis Gonsalves, Vidyajyoti College, New Delhi, India Charles Holme, Ethical Executive Training International, UK Vidyanand Jha, Indian Institute of Management, Calcutta, India Sanjay Kumar, Centre for Study of Developing Society, New Delhi, India Naresh Khatri, University of Missouri, Columbia, USA Christopher Lakra, Indian Social Institute, New Delhi, India T Mallikarjunappa, Mangalore University, Karnataka, India Madhu B Mishra, Sambalpur University, India Kannamma Raman, University of Mumbai, Mumbai, India Francesca Recchia, University of Kurdistan Hawler, Iraq Saif Siddiqui, Jamia Millia Islamia, New Delhi, India Purnima Singh, Indian Institute of Technology, New Delhi, India Surya Prakash Singh, Xavier Institute of Management, Bhuwaneshwer, India Yinshan Tang, University of Reading, Reading, UK Nachiketa Tripathi, Indian Institute of Technology, Gauhati, India

Journal of Management & Public Policy, Vol. 1, No. 2 June 2010

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Journal of Management & Public Policy (JMPP) is a biannual peer-reviewed international journal published in June and December every year by Management Development Research Foundation, New Delhi (India). Online edition of JMPP is available at www.jmpp.in as an open access journal.

JMPP seeks to create a body of knowledge around the interface of various functional areas of Management and Public Policy. It is likely to serve as an independent forum for the academia, industry, civil society and the State to carry forward a candid and objective discussion on common issues having a bearing on economy, business, community, environment and the quality of life of the people.

JMPP is included in the database of EBSCO Publishing Inc. USA.

Subscription: Annual: Rs. 500 (India), $ 100 (Overseas) Single Copy: Rs. 250 (India), $ 50 (Overseas) Editorial and Subscription Enquiries: [email protected] Management Development Research Foundation, 2010 All rights reserved. No part of this publication may be reproduced without written permission of the Editor/Publisher. Disclaimer: The views expressed in the articles/reviews are those of the contributors and not necessarily that of the Editorial Board or Management Development Research Foundation. Articles/reviews are published in good faith and the contributors will be liable for any copyright infringements. Published by Chairman, Management Development Research Foundation, 132, DDA SFS Flats, Sector XI, Pocket 1, Dwarka, New Delhi 110 075 and printed by him at Khurana Digital Colour Solutions, Nehru Place, New Delhi.


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CONTENTS Editorial 4 The China Code: An Analysis of Chinas National Social Standards for the Textile and Apparel Industry Bala Ramasamy & Dra. Elisabet Garriga 5 Affective Commitment as a Mediator between Psychological Climate and Job involvement Soumendu Biswas 16 Determinants of Organizational Citizenship Behaviour: A Review of Literature Shweta & Srirang Jha 27 Stock Price Reactions to Dividend Announcements T. Mallikarjunappa & T Manjunatha 37 Industrial Organization and Customer Relationship Management: The Impact on Customer Service Orientation in B-to-B Markets Alexander D. Stein, Michael Smith & Richard A. Lancioni 52


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Editorial

I am humbled and excited about the launch of the inaugural issue of the Journal of Management & Public Policy (JMPP). It is the outcome of efforts, encouragement and support provided by several of my friends in academics, public administration and civil society. We had often felt a strong need to evolve an independent forum to discuss issues affecting management of corporations and governance of public institutions and political establishments vis--vis public policy. Existing journals are quite focused on either on issues pertaining to management of corporation or dedicated to public administration and public policy. Obviously, there is a void in terms of a critical interface between two distinct domains i.e. management and public policy although both are influenced by each other. I am sure; the launch of this journal will close the gap between researchers, academics, policy makers and entrepreneurs and foster an interdisciplinary approach towards analyzing issues ranging from shop-floor to corporate governance on the one hand and public policy implications on the other. Editorial discretion will be used judiciously so as to protect a unique and interdisciplinary nature of this journal. A word of thanks for all the members of the Editorial Advisory Board: I am grateful to all the scholars from around the world who agreed to be part of the Journal.

Srirang Jha


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The China Code: An Analysis of Chinas National Social Standards for the Textile and Apparel Industry

Bala Ramasamy* & Dra. Elisabet Garriga**

The China Social Compliance for Textile and Apparel (CSC 9000 T) is the first country and sector specific social standard in the world, established by the China National Textile and Apparel Council (CNTAC). The objective of this paper is to evaluate the CSC 9000T by comparing the extent of its coverage and its implementation vis--vis another popular international standard, the SA 8000, and two company level codes of conduct, namely Nike and Inditex. The comparison allows an analysis that considers a universal versus a national code, a comprehensive versus a sectoral code, and a western-based versus an Asian-based code of conduct. Our results provide justifications as to why the CSC 9000 T is a code that should be given attention by the relevant protagonists as it is based on more systematic interventions to tackle the root causes of poor compliance in Chinese reality and has a higher degree of legitimacy due to its backing from Chinas social institutions and agencies.

Keywords: China, Social Code of Conduct, Textile and Garment

Introduction

In the early 1990s, multinational corporations (MNCs) with extensive supply chains started to acknowledge their role in improving the general working conditions of workers in their respective suppliers factories. This sense of responsibility was operationalized by designing and implementing codes of conduct (Egels-Zanden and Hyllman, 2007; Kolk and van Tulder, 2002b; Radin, 2004; Sethi, 2002). The supplier factories were expected to heed the code and an extensive verification and social audit systems were put into place (Cowton and Thompson, 2000; Sethi, 1999). As a result, hundreds of codes of conduct have appeared. A recent inventory by the Organization for Economic Cooperation and Development (OECD) reveals more than 300 of such codes, and the numbers continue to increase unabated (Kolks and Van Tulder, 2001). Non-governmental organizations (NGOs), industry associations and other international organizations have also joined in and developed international social standards and self regulatory tools to address working conditions, particularly in developing countries (Beschoner and Muller, 2007). The designing and monitoring of these standards involve multi-stakeholder participation including unions, employers, MNCs, NGOs, management consultants and academics.

* Professor, China Europe International Business School, Shanghai, Peoples Republic of China E-mail: [email protected] ** Professor, China Europe International Business School, Shanghai, Peoples Republic of China E-mail: [email protected]


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One recent development in this arena of codes of conduct and social standards is the China Social Compliance for Textile and Apparel (CSC 9000 T), established by the China National Textile and Apparel Council (CNTAC), a nonprofit industry association comprising Chinese textile companies. As far as we know, this is the first industry and country specific code that exists worldwide. The relevance of this code is obvious when one considers Chinas textile and garment industry. Chinas textile and apparel industry is the largest and the most important supply chain, covering about 24 percent of the worlds textile and apparel trade. Nearly every large brand-name and garment producer has a value chain that is linked to China (Krueger, 2008; Egels-Zanden, 2007). Any initiative in social responsibility in this sector produces a greater impact given the importance of the textile and apparel sector within the Chinese economy. Furthermore, efforts in improving working conditions in a transition economy such as China, makes it unique and complex (Egels-Zanden, 2007) as the globalization of economic activities comes to terms with diverging business practices between the east and west.

The objective of this paper is to evaluate the CSC 9000 T by comparing the extent of its coverage and its implementation vis--vis another popular international standard, the SA 8000, and two company level code of conduct namely Nike and Inditex. The SA 8000 is a well known and respected code that takes a multi-stakeholder perspective while the company level codes are an active and energetic initiative to implement social responsibilities within the supply chain. Nike and Inditex were chosen due to their American and European origins respectively, as well as their consistencies with those standards championed by the International Labour Organization (ILO), OECD and the UNs Global Compact (Fairbrother and Hammer, 2005). The comparison allows an analysis that considers a universal versus a national code, a comprehensive versus a sectoral code, and a western versus an Asian code of conduct. Our analysis follows that of Kolks and van Tulder (2002) which uses the criteria of specificity and monitoring/sanctioning aspects of the respective codes.

The paper is structured as follows. First, we briefly describe the contents and main elements of the CSC 9000 T. The following section explains the methodology i.e. the criteria and sample used. Then, we present the results of detailed comparisons based on the specificity and monitoring/sanctioning criterion. In the final part, we discuss our findings and implications to the industry. Our analysis provides justifications as to why the CSC 9000 T is a code that should be given attention by the relevant protagonists and we further highlight the way forward for the code.

The CSC 9000 T Chinas New Social Standard for the Textile and Apparel Industry

CNTAC launched the CSC 9000 T in 2005. This code is the first CSR standard by a Chinese organization aimed at integrating the relevant Chinese laws and regulations as well as international conventions ratified by the Chinese government .. based on specific conditions of the (textile and apparel) industry .. and (consistent) with the international practices that are reasonably compatible with Chinese enterprises (CNTAC, Annual Report 2006). This initiative by the CNTAC was mooted due to


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limitations identified in the existing corporate codes and accreditation standards. In particular, the CNTAC points to several pitfalls in the existing system. These include, first, the expansion of the supply chain among many multinationals that makes it impossible for them to monitor compliance to both orders and the code. Second, over time, inspection becomes routine that detecting any real problems with working conditions becomes difficult. Third, the direct relation between factory auditing and product orders raises the level of hostility among factory owners towards their social responsibilities. Fifth, the existing system does not involve active participation of workers. Sixth, the delegation of accreditation to commercial entities has compromised the impartiality of the efforts. Seventh, inconsistent quality of auditors results in questionable accreditation standards. Eighth, early warning given by auditors allows factory owners to be fully prepared to disguise any shortfalls in working conditions. Finally, the accreditation system is seen to be too harsh in that an all-or-nothing choice for enterprises does not contribute to the continuous improvement process in working conditions. The CSC 9000 T is designed to address many of these concerns. Key among these is the promotion of a social responsibility management system within a factories routine management such that problems are identified; corrective actions are planned, implemented and monitored.

The CSC 9000 T comprises the Principles, the Guidelines and the Self Assessment Form as well as the Implementation Guidance. The Principles are a Collective Code of Conduct for Chinas textile and apparel industry. The Guidelines and Implementation Guidance specifies detailed requirements of the Principles and is designed to help enterprises operationalize the management system to meet the demands of the code. Finally, the Self Assessment Form can be considered as the social audit of the code which enables the enterprise to evaluate its position with respect to the socially responsible objectives and targets. The CSC 9000 T is a voluntary code specifically for Chinese suppliers and international firms are free to adopt the guidelines.

The code covers ten areas: management systems, employment contracts, child labor, forced labor, working hours, wages and salaries, trade unions, discrimination, harassment and abuse as well as occupational health. In a nutshell, the code calls for the establishment of a management system that envelopes social responsibility; the use of written employment contracts for all workers; the prohibition of child and forced labour; the adherence to specific laws on working hours; the provision of wages and benefits which is not below the legal requirement; the acknowledgement of employee rights to form and join trade unions and bargain collectively; the condemnation of discrimination, harassment and abuse; and the promotion of occupational health and safety.

Despite obvious similarities that appear between the CSC 9000 T and other well-known codes, significance differences in terms of definitions exist. For instance, corporate codes tend to follow definitions which adhere to international norms (such as those promulgated by the ILO). In some cases, the corporate code defines terms unilaterally. In other cases, the codes do not provide any specific guidance on the definition of the standard. These are highlighted in the following sections.


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Methodology

As mentioned earlier, in this paper we compare the CSC 9000 T with three other codes - the SA 8000 and two multinational codes, Inditex and Nike. The SA 8000 was founded in 1997 by Social Accountability International (SAI) and focuses on working conditions and the rights of workers. It is based on the ILO and UN conventions and its certified facilities are in more than 45 countries across 50 industries (www. sa-intl.org). The SA 8000 is an auditable standard that is verified by trained and accredited third party entities and takes into account 9 main areas: child labor, forced labor, health and safety, freedom of association, discrimination, disciplinary practices, working hours, remuneration and management systems.

Nike was among the first MNC to develop a code of conduct after a scandal in 1992 in Indonesia where contractors were paying under subsistence wages. Since then, Nike has been focusing on improving working conditions throughout its supply chain with innovation in the design and implementation of its compliance model. The code is revised and updated from time to time (www.nike.com; Frenkel and Scott, 2002).

The Inditex Group is among the fastest growing apparel and textile chain in the world. Ranked number one in the world, in terms of units sold, it is an apparel chain which opens more stores per year. Originating from Spain, Inditex is known for its active involvement in CSR and has reached unprecedented agreements with unions to control and foster their code of conduct around the world (www.inditex.com).The Inditex code has eleven areas: child labor, non discrimination, freedom of association, harassment and abuse, health and safety, remuneration policy, environment, subcontracting policy, supervision and compliance as well as publication of the code.

Criteria

Our comparative analysis of the CSC 9000 T and the three codes stated above is based on two criteria formulated by Kolk and Van Tulder (2002), namely specificity and monitoring/sanctioning. Specificity refers to the degree to which definitions and principles within codes are precise, detailed, explicit and unambiguous. The rationale here is that the more specific codes are, the better they can be measured and subsequently monitored, and leaving little room for misleading interpretation. Monitoring refers to the extent to which provisions of the code can be evaluated in terms of compliance. [See Table 1]

It should be noted that the specificity and monitoring criterions have been previously used in analyzing one element within the code of conduct child labor. Our attempt to use these criterions to compare all elements within codes of conduct comprehensively is a first, and so there is a need to adapt Kolk and Van Tulders (2002) approach. Under specificity, Kolk and Van Tulder (2002) identified five factors of specificity: definition and minimum standards, applicability, targeted organizations, reference and nature of the code. We adapted the first and last factors to include definitions, quantifiable standards and circumstantial aspects of the code, as shown in Table 1. We also excluded the third factor i.e. targeted organizations, as all the codes in our analysis are


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targeted at the same entity whether it is called business enterprise (CSC 9000 T), company (SA 8000), partner contractors (Nike) or external manufacturers and workshops (Inditex). As for monitoring and sanctions, rather than analyzing each article of the code, we make a comprehensive comparison of the entire code. Factors used to compare the monitoring aspect are shown in Table 2.

Results of Comparative Analysis

We discuss the comparison between the four codes under two main criteria: Specificity and Monitoring/Sanctioning. Detailed comparative analysis is provided in Appendix 1. The discussion that follows draws from this analysis.

Specificity

We follow the articles provided in the CSC 9000 T and analyse the specificity of the code based on the criteria explained earlier.

Management Systems. This is the first article in the CSC 9000T. The management systems itself is considered an independent component, although it envelops all other articles/elements in the code. The article emphasizes the continuous improvement nature of the code as the system is based on a plan-do-check-action model. In this way, the CSC 9000T distinguishes itself from other codes; particularly company based ones, by emphasizing the need to bring CSR into the routine operations of the company as described earlier. Systematic documentation including procedures to meet objectives and targets set jointly by stakeholders are clearly articulated and set out. The SA 8000s management system is considered at the end of its code. Like the CSC 9000 T, it presents a large and detailed explanation as to how the policy of social accountability and labour conditions are effectively documented, maintained, communicated and made accessible to all stakeholders. Continuous improvements are emphasized although these are geared towards reaching the standards set by SAI. The SA 8000 management system also includes the control of suppliers, sub suppliers and sub contractors such that their performance and commitment to the code is evaluated and documented. This seems missing in the CSC 9000 T. Nike and Inditex do not have any articles on management systems.

Employment Contract. Only the CSC 9000 T has a specific article on employment contracts. This reflects the local situation in China where migrant labour forms a large proportion of the workforce in textile and apparel factories (CNTAC, 2006). The CSC 9000T calls for a written employment contract with specific guidelines on the terms and conditions of employment. The reference is Chinas labour law, which in its recent revision includes written contracts with fixed term, part-time and contract workers. All other codes do not specify a need for an explicit contract on employment.

Child Labour. This issue has been of great interest by all codes (Kolks and Van Tulder, 2002). All codes define and quantify the minimum age, although differences exist. The CSC 9000 T is based on the Chinese law that defines a child labour to be one who is below 16 and a juvenile worker to be one that is above 16 but below 18 years old. The


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SA 8000 specifies 15 to be the minimum age (i.e. based on the ILO standards) although the fall back position is the minimum age law of the country if it is higher. Inditex and Nike apply the minimum age laws of their respective country of origin i.e. 16 and 18. Inditex and the SA 8000 do provide some exceptions for child labour above 14 years of age. Thus, the reference point of this article is different Chinese laws, home country laws and the ILO standards.

The CSC 9000 T and the SA 8000 introduce the concept of juvenile/young workers and calls for protection of this age group against intensive, hazardous, harmful and risky work. The SA 8000 emphasizes the need to ensure schooling opportunities which follow ILO recommendations while the CSC 9000T calls for a guarantee that these juvenile workers receive physical examination at least once a year.

Forced Labour. The CSC 9000T states clearly the definition of forced labour. Similarly, the SA 8000 and Nike have similar articles that prohibit forced labor that is based on the ILO standards. Inditex however, does not have such an article. It is worthwhile to note that the CSC 9000T takes into account some Chinese characteristics in that certain exceptions to the definition are made, namely when 1) any work or service is carried out under compulsory military service laws; 2) any work or service is part of normal civic obligations; 3) any work or service is carried out in cases of emergency (such as was, fire, flood, famine, earthquake etc.) that would endanger the existence or the well being of the whole or part of the population.

Working hours. There are some clear differences between the codes in this category. Inditex does not have any article on working hours, although the fall back position is the local regulation. The SA 8000 puts 48 hours as the maximum while the CSC 9000 T specifies 40 hours. Nike bases its maximum on US regulation i.e. 60 hours a week with overtime. The SA 8000 and the CSC 9000 T details overtime, a common practice in the textile industry. Overtime work is allowed but not more than 36 hours per month and 12 hours a week for the CSC and SA respectively. The CSC 9000T is more flexible in calculating the average working hours in that it can be averaged across the week, month, season or year so that enterprises can better adapt themselves in a fiercely competitive market. Regarding days off, one day holiday per week is compulsory in both Nike and SA 8000 codes. Thus, the SA 8000 and Nike refer to international standards while the CSC 9000T to Chinese laws and culture.

Wages and salaries. The four codes do not specify the amount but point to the national industry minimum as the bottom limit. Inditex states that the salaries should be consistent with particular professional categories; Nike calls for a clearly written accounting statement for every pay period; the SA 8000 includes the points above but also specifies that salaries should be in cash or checks; while the CSC 9000 T specifies it as payment in cash.

Trade Unions. The labeling of this article is freedom of association in the SA, Nike and Inditex. However, there is a general consensus that workers are allowed to organize themselves into a union, and that no retaliatory actions are taken against such workers.[ Thus, the four codes recognize the right to collective bargaining. However, while other


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codes tend to allow workers to join a union of their choice, the CSC refers to the trade union i.e. the All China Federation of Trade Unions (ACTU). The ACTU the only legally recognized trade union in China and its official mandate is to represent the interests of workers; foster economic development; uphold the socialist road, peoples democratic dictatorship and the leadership of the Chinese Communist Party. Nike, Inditex and the SA 8000 refer implicitly to the ILO conventions while the CSC 9000 T takes into account only the Chinese Law and its economic system.

Discrimination. The codes are similar in nature for discrimination. All codes provides similar definitions i.e. prohibit discrimination in factories for reasons of gender, nationality, race, sex, belief, physical disability or personal characteristics. In particular, Nike and SA 8000 specify management practices conducive to an environment free of discrimination such as in recruiting, promotion, hiring, remuneration, access to training, termination and retirement. SA 8000, Nike and Inditex base their code on the ILO articles 100 and 110 which prohibits discrimination while the CSC 9000 T is in line with article 100. CSC 9000 prohibits discrimination against women in promotion and pay or for reasons of pregnancy, child birth or breast feeding.

Harassment and Abuse. As with the category of child labour, Inditex and Nike use the concept of dignity as a positive concept to emphasize how workers should be treated. The concept of dignity is explicitly stated in the Universal Declaration on Human Rights. The CSC 9000 T also complies with the Declaration but aims to foster physical and physiological health.

Occupational Health and Safety. Under OHS, the four codes refer to injury among workers, lighting, ventilation and hygienic conditions. However, the CSC 9000 T (to a larger degree than the SA) emphasizes a management system to improve OHS through the plan-do-check-action method.

Monitoring and Sanctioning

The monitoring and compliance of corporate codes such as those of Nike and Inditex is by external auditors or other agencies. Although the SA 8000 emphasizes management systems, it has its own auditors who evaluate and accreditate its compliance. On the contrary, the CSC 9000 Ts approach is one that is internal using the PDCA (plan-do-check-action) approach. Thus, in a sense, it is the Chinese supplier who establishes the standards of the code and monitors the results. The CSC 9000T emphasizes the need for enterprises to integrate CSR management into the routine management system and culture of the organization. As explained earlier, the CSC 9000T promotes the continuous improvement approach in raising the working conditions and wellbeing of workers. However, it seems that the supplier him/herself is responsible for raising these standards over time.

As for sanctions, failure to comply or meet the standards of corporate codes means losing the business relationship with Nike and Inditex. If the business deal is linked to the SA 8000 accreditation, the fate is the same as the corporate codes. In contrast, given that the CSC 9000T is an internal system, there may be no external punishment to those


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companies that fail to meet the set standards. Theoretically, if enterprises do not meet the CSC 9000T standards, they will need to address this and find ways and means internally to meet the set standards in the next round of evaluation.

Discussion and Conclusion

There are a few marked differences between the CSC 9000T and other codes considered in this paper. First, CSR as a management system is emphasized in the CSC 9000T with a view towards a continuous improvement in working conditions. Second, employment contracts are elevated to a separate article and consistent with Chinas labour laws. Third, some differences in definitions exist, for instance the minimum legal age of workers, working hours and overtime. European and US laws are used as the minimum in the corporate codes, while the SA 8000 uses the ILOs standards. Fourth, some conceptual differences are also evident. For instance, while other codes emphasize the freedom of association, the CSC 9000T refers to the right to affiliation to the ACTU given Chinas socialist system of government. Similarly, the corporate codes link harassment and abuse to the concept of dignity which reflects a Christian ideology. In sum, our comparative analysis shows that the CSC 9000T in substance is in no way inferior to the other codes. In fact, the China code takes into account the local environment and circumstances more comprehensively than other codes, whether corporate or international.

The more significant difference between the codes is in the monitoring and compliance area. Corporate codes use a reward and punishment approach to ensure compliance. Those factories that pass the accreditation tests are awarded with supply contracts while those who fail to meet the set standards are terminated. While this may meet the requirements of the stakeholders in the country of origin i.e. the US and Europe, it may not necessarily improve the working conditions of labour in China. Although the SA 8000 has provisions for training and improvements, the manner in which it is implemented is not very different from corporate codes. External auditors are utilized to inspect and rate factories. If MNCs use the SA 8000 accreditation as a condition for supplier contracts, the outcome is similar to corporate codes. Although some may argue that introducing higher standards would raise the working conditions in developing countries (Harrison and Scorse, 2007), this may produce a contrary effect in China. The incentive to cheat is high (Egels-Zanden, 2007), particularly when the contracts are lucrative. A strict and higher standard decoupled from the local situation could be seen as unattainable and so forces deviant behavior and eliminates the incentive for suppliers to introduce changes in their factories.

In contrast, the CSC 9000T, if implemented according to its objectives, is aspirational in nature as it tries to make a case that voluntary compliance will, meet the enterprises social responsibility and financial objectives, reduce operational risks, and achieve continuous improvement (CNTAC, 2006). Thus, the CSC 9000T does not have third party accreditation but rather an internal mechanism that promotes improvements in workers wellbeing.


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The launching of a Chinese code to a certain extent marks a change in approach towards improving working conditions of millions of people in the industry. On the one hand, the Chinese government admits that something tangible needs to be done to improve the wellbeing of its populace to ensure a harmonious society. On the other, it departs from the stick approach to one that is carrot based. The harsh all-or-nothing approach has not made a significant impact on the wellbeing of workers. Previous studies have noted that while Chinese firms may formally agree to such codes as a condition for continued business, there is no assurance of sincere and complete compliance (Krueger, 2007; Egels-Zanden, 2007). When factory owners understand social compliance as something that is externally imposed (which may entail additional costs), unethical behaviours flourish. Recent studies have also highlighted the necessity to complement codes of conduct and monitoring programmes with more systematic interventions aimed at tackling the root causes of poor compliance that affects not only economic performance but also social conditions (Locke et. al., 2007; Frenkel and Scott, 2002). Some studies emphasize organizational variables (e.g. management styles, organizational structure and communication) and the relationship between the MNCs and factory owners as critical in the compliance model (Locke et. al., 2007; Locke and Romis, 2007). Frenkel and Scott (2002) in particular show how collaboration between the MNC and the supplier enhances both types of performances. Earlier, Paine (1994) had argued that such collaborations should be based on common values and standards of the stakeholders. Theoretically, the CSC 9000T is an attempt in this direction. Its objective is to help enterprises to review their own CSR management system and to find out the gap between voluntary social responsibility actions and the requirements of the CSC 9000T (CNTAC, 2006).

Like other codes, there is no guarantee that the CSC 9000T would indeed meet its objectives. However, compared to other codes, the CSC 9000 T has a certain degree of legitimacy in that it is supported by the Chinese government through the CNTAC. It is home grown and so would garner the necessary support from all relevant agencies in China. The implementation of the China code is still at a nascent stage. The trial run of the CSC among 10 large producers has so far produced laudable results (CNTAC, 2006). Nevertheless, this is not sufficient. A more objective method of monitoring the progress of the code is required. In this regard, it makes sense that the support by large overseas brand-names (Nike, Inditex, Prada and the like) be co-opted to ensure a much wider implementation of the code. Dialogue among the related parties has been proven to be critical (Beschoner and Muller, 2007). The involvement by MNCs in capacity building and training aspects considered important in ensuring compliance (FIAS, 2007) would add to ensure the success of the China code. More importantly, the nature of the code which emphasizes management systems and one that is based on reward should be adopted by these brand-names to ensure success of the code. This would not only benefit workers, but also satisfy the many stakeholders of those MNCs.


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Affective Commitment as a Mediator between Psychological Climate and Job Involvement

Soumendu Biswas*

The psychological climate of the workplace is viewed as one of the most important environmental factor affecting an individuals workplace attitudes. At the same time, a favourable climate in the absence of commitment can be a source of misuse of workplace freedom by individuals. The present paper attempts to study the mediating role played by affective commitment between psychological climate and job involvement. Data for the present study were collected from manufacturing as well as service sector organizations all over India. The results and their theoretical and practical implications are discussed in detail. Keywords: Affective Commitment, Psychological Climate, Job Involvement Introduction The increasing global spread of business and the greater participation of multi-national corporations (MNCs) in developing markets, calls for focusing attention towards management practices in different parts of the world (Budhwar, 2003; Napier & Vu, 1998). In this context, it is worth mentioning that among the rapidly expanding economies of the world, India holds a position of prominence (Biswas, Giri, & Srivastava, 2006; Budhwar & Boyne, 2004). It is evident therefore, that global changes have had a significant impact on the Indian economy too. Moreover, Chauhan, Dhar, and Pathak (2005) observed that change per se is a routine affair in the contemporary business scenario; what is more important is a recognition of the fact that managerial efficacy need to keep pace with such rapid transformations. Furthermore, it appears that in the era following the South East Asian financial crisis of 1997-98 (World Bank, 2001) and in accordance with the report published by Goldman Sachs investment bank (2003), India along with Brazil, Russia, and China is poised to be a major player in the world business scenario. Culture and Behavioural Aspects of Business In continuation with the discussion about swiftly evolving economies such as India, it is necessary to examine the cultural factors that affect behavioural features of managerial effectiveness in the organizational context (Biswas, 2006). This viewpoint is further corroborated by an earlier study by Zucher (1968) wherein it is mentioned that in a cross-cultural context it is necessary to study behavioural constructs especially with the continuous growth of worldwide commercial operations. With reference to India in particular, it has been observed that its national culture has a rich heritage which is helpful in clarifying different human actions. It is further understood that these cultural facets are deeply ingrained in the individual psyche and

* Assistant Professor, Management Development Institute, Gurgaon, India Email: [email protected]


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are relevant in positive cognition and affect of individuals at the workplace (Rao & Abraham, 2003). At the same time, the indigenous culture of India has been quick to accept alien customs and mores while preserving its distinctive values and rules (Biswas et al., 2006). This has established the Indian social order as a classic example of the oriental world. In terms of crossvergent socio-cultural ethos therefore, India stands as a leader in establishing the norms and practices that dominate managerial practices in the contemporary borderless business environment (Ralston, Holt, Terpstra, & Kai-Cheng, 1997). In a cross-cultural framework, the above discussion indicates that the stature of India is quite elevated in the global socio-economic map. So much so that Varma, Budhwar, Biswas, and Toh (2005) noted that Indias traditional cultural systems are acting as fulcrum of the South East Asian business environment. To continue, England and Lee (1974) noted that during periods of environmental turmoil, societies in emergent economies such as, India tend to follow a path that leads to stability. This further implies that in a bid to maintain internal homogeneity and acclimatize to the external changes, society focuses on retaining certain behavioural aspects that are indigenous and at the same time give way to a certain level of novelty. Given that organizations operate within the domain of societal norms and values, it is evident that behavioural aspects of managing organizations call for further study. Based on this supposition, the objective of the current study was formulated wherein the interrelationship between four behavioural constructs were examined namely, psychological climate, affective commitment, and job involvement. More specifically, the present study investigates the causal impact of psychological climate on job involvement through affective commitment which acts as the mediator. The following section reviews literature related to the key variables. THEORETICAL BACKGROUND Psychological Climate (PC) Before the introduction of the New Economic Policy (NEP) in 1991, the Indian business environment was discernible through the dominance of firms in the manufacturing sector. These firms, whether public or private, were usually large organizations and were marked by mechanistic processes and rigid practices (Biswas & Varma, 2007). In fact, firms belonging to the service sector such as, educational institutions, healthcare organizations, and media and communications were basically owned by the state. This was a direct consequence of Nehruvian welfare philosophy that emphasized pluralistic utilitarianism. The fall out of such a socio-political arrangement was the lack of emphasis on individual behavioural aspirations (c.f. Varma, et al., 2005). Thus, till the privatization of the Indian economy in the early 1990s, Indian organizations were extremely bureaucratic and were characterized by one-way flow of decision making from the top to the bottom. Indeed, Hofstede (2001) observed that such managerial philosophies and practices are not uncommon in social cultures that are dominated by collectivism and high power distance norms.

However, with the liberalization of the Indian business environment, managerial practices especially those related to cognitive and affective facets of individual employees at the workplace underwent major alterations. Furthermore, human resource


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(HR) practices in Indian firms have experienced a sea change, as contemporary HR policies and practices are designed in a manner that promotes individual involvement on-the-job and encourages extra-role behaviour in addition to the in-role behaviour of employees (Biswas, 2006; Budhwar & Khatri, 2001; Pattnaik & Biswas, 2005). As Biswas and Varma (2007; p.666) observed that HR practices in India are increasingly geared towards improving the way individual employees perceive their day-to-day working environment, or the way they perceive the psychological climate [italics added] in the workplace.

Thus, to understand the group of actions in relation to the administration of members of an organization, the appropriate literature recommends an investigation of those variables that are related to an individuals acuity a propos their immediate workplace atmosphere based on their everyday experiences (Schneider, 1975; Strutton, Pelton, & Lumpkin, 1993). In this regard, it is worth noting that the relevant literature recommend the examination of psychological climate as a primary antecedent of a variety of individual-level outcomes such as affective commitment, job involvement, and organizational citizenship behaviour (James, James, & Ashe, 1990; Parker, Baltes, Young, Huff, Altmann, Lacost, & Roberts, 2003; Woodard, Cassill, & Herr, 1994). This article seeks to empirically inspect these theoretical suggestions in the context of the Indian management scenario.

Affective Commitment Commitment of a person at the place of work is revealed in a variety of behaviour such as obligation to his/her organization, to his/her immediate workgroup, or to another individual at office (Meyer & Allen, 1997). The current study conceptualizes affective commitment as an attitude borne out of an individuals awareness about his or her daily work settings and the extent to which he/she is devoted to his/her employing organization (Blau & Boal, 1987; Porter, Steers, Mowday, & Boulian, 1974). In fact, affective commitment is one of the three factors along with normative and continuance commitment that makes up the higher-order construct of organizational commitment (Meyer & Allen, 1997). Affective commitment has been stated in literature to be linked with variables that pertain to individual character of employees such as, attachment to job and other role-related issues like, job characteristics, professional behaviour, and work experiences (Hrebiank & Alutto, 1972; Koch & Steers, 1978; Morris & Koch, 1979; Steers, 1977; Welsh & Le Van, 1981). However, of all the frequent consequences of affective commitment, job involvement and organizational citizenship behaviour have received extensive consideration in the relevant literature (Hom, Katerberg, & Hulin, 1979; Ibrahim & Rue, 1994; Mathieu & Zajac, 1990; Meyer & Allen, 1986; OReilly & Chatman, 1986; Smith, Organ, & Near, 1983; Tett & Meyer, 1993; Williams & Anderson, 1991).


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Job Involvement

According to literature, job involvement is a construct that arises out of interactions between individual disparity of sensitivity about the work settings and personality traits (Ruh, White, & Wood, 1975; Sandler, 1974; Schein, 1983). According to Lodahl and Kejner (1965), job involvement affect people for whom his or her job constitutes the most important portion of life. Thus, job involvement can be conceptualized as the degree to which a person identifies psychologically with his work or the importance of work in his total self image (Lodahl & Kejner, 1965; p. 24). Hence, job involvement appears to be a construct that follows directly from the way individuals are affected by their immediate work environment and interpersonal relationships (Ruh et al., 1975).

On the basis of the above discussion, the following hypotheses were tested (Figure 1 presents the conjectured model): H1: An individuals perception of the PC will have a significant and positive influence on his/her affective commitment towards his/her employing organization. H2: The level of an individuals affective commitment will significantly and positively affect an individuals job involvement. Figure 1 The Conceptual Model

METHOD Data Collection Procedure The respondents involved in the study were executives/managerial cadre employees from different organizations. Data were collected from a total of 357 participants through a survey questionnaire. A covering letter describing the reason of the study was attached with each questionnaire. This letter gave details about the voluntary and anonymous nature of the study. Furthermore, participants were assured that the responses would be used only for research purpose. The questionnaires, when completed, were returned to the researcher via mail, in pre-stamped envelopes which were made available with the questionnaires. Sample Of the 357 participants, 180 (i.e. 50.42 per cent) belonged to the manufacturing sector companies, while 177 (i.e. 49.58 per cent) belonged to service sector organizations. Moreover, 83.9 per cent of the survey participants were males, while 16.1 per cent were females. The average age of participants was 36.9 years. The average weekly hour spent by the participants at work was 52.4, and their average years of work experience was 10.7. Finally, 7.3 per cent of those surveyed belonged to senior management, 35.6 per cent were from middle management, and 57.1 per cent reported working at junior management levels.


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Measures Psychological climate was calculated using the Psychological Climate Measure as reported by Brown and Leigh (1996). This scale comprised six factors of PC namely, supportive management, role clarity, contribution, recognition, self-expression, and challenge and included 21 items. The reliability measure of this scale was found to be .90. Affective commitment was measured using the eight items reported by Meyer and Allen (1997). The reliability coefficient of this scale was .82. Job involvement was measured using 4 items of the Job Attitude Scale as developed and reported by Lawler and Hall (1970). This scale measured the affective attachment of individuals with their job. The value of the Cronbachs alpha representing the scale reliability was .82. Data Analysis Technique The Statistical Package for Social Science version 10.0 (SPSS 10.0) and the Analysis of Moments Structure (AMOS 4.0) were used to analyze the data. The statistical analyses that were conducted included a measurement and a structural equation model (SEM). The path model based on the hypotheses emerging out of the review of literature was subjected to structural equation analysis and fit tests. Apart from the regression analysis, a variety of statistics including the normed Chi-square (2/d.f.), goodness-of-fit, centrality parameters, and normed-fit-indices as provided by AMOS 4.0 (Arbuckle & Wothke, 1999) were utilized to achieve the results. RESULTS Table 1 presents the means, standard deviations, correlations, and reliability indices for the key variables of this study. It may be noted that the key variables were significantly correlated; psychological climate and affective commitment (r = .38, p .01); and affective commitment and job involvement (r = .28, p .01). Table 1 Descriptive statistics and Correlation Matrix (N=357) Mean S.D. 1 2 3

1. Psychological climate

3.65 .53 (.90)

2. Affective commitment

3.52 .64 .38* (.82)

3. Job Involvement 3.52 .60 .48* .28* (.82) *p.01

Values in parentheses are reliability indices (Cronbachs alpha) In order to examine the causal linkages, multiple regression analyses were conducted on the variables included in this study. Table 2 shows the standardized regression estimates between the key constructs. As shown in the following table, affective commitment was significantly influenced by psychological climate (standardized =


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.64, p .01). Moreover, affective commitment significantly and positively influenced job involvement (standardized = .53, p .01)

Table 2 Regression Estimates

Standardized

C.R. Remarks

Psychological climate affective commitment

.64* 7.90 H1 accepted

Affective commitment job involvement

.53* 7.34 H2 accepted

* p.01 In order to calculate the fit indices that explained the relationships between the hypothesized paths among the latent constructs, AMOS 4.0 SEM procedures (Arbuckle & Wothke, 1999) was used. The present study used the maximum likelihood estimation (MLE) algorithm to determine the fit indices. Accordingly, the Goodness-of-Fit Index (GFI) and the Root Mean Square Error of Approximation (RMSEA) were reported as the absolute fit measures. According to Byrne (2001), absolute fit measures should be used for comparison between the hypothesized model and an absence of any other model. The other measures which were also reported were the Tucker-Lewis Index (TLI) and the Comparative Fit Index (CFI). These indices indicated a comparison between the hypothesized model and the model with maximum constraints. Finally, the normed chi-square value was also used as an acceptable measure of fit. Table 3 shows the fit measures of the proposed model. For the model as depicted in Figure 1, the normed 2 value is 2.59. The GFI is .87. The TLI is equal to .86, the NFI value is .82, and the CFI value is .88. With the threshold value of RMSEA being 0.07, the value of RMSEA for the proposed model is 0.07. Finally, the AGFI and the PGFI values are equal to .83 and .69 respectively, thus confirming a good fit of the model. Table 3

Fit Indices

Normed 2

GFI TLI NFI CFI AGFI PGFI RMSEA

Proposed Model

2.59 .87 .86 .82 .88 .83 .69 .07

Indepen-dent

Model

12.67 .37 .00 .00 .00 .31 .34 .18


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DISCUSSION AND CONCLUSION The results established the relationships between psychological climate as antecedent of job involvement mediated by affective commitment. As conceptualized, psychological climate refers to the way in affective commitment system being the transmitter of psychological climate also assumes significant relevance. Further, the results demonstrated that a positive psychological climate leads to an individual experiencing psychological empowerment, which is reflected in positive attitudinal change towards the execution of their jobs. This explains the role of psychological climate in positively influencing employees affective, normative, and continuance commitment to their organization. Thus, a favourable psychological climate makes it possible for individuals to widen their activity-domain and enhance their dedication to their organization. This process is reflected in the results related to the first hypothesis, which predicted a positive impact of psychological climate on employees affective commitment. The results of the present study establish a positive causal link emanating from the affective commitment construct leading to the job involvement construct. This implies that components of commitment lead to a greater attachment of individual with his/her organization. Given that, affective commitment and job involvement are both affect related components of an individuals attitude, acceptance of the second hypothesis of this study serve as an empirical support for such a theoretical conjecture. Moreover, as an individuals work lies within the broader framework of organizational activities, the acceptance of the second hypothesis further corroborates the theoretical presumption that an individuals attachment to his/her workplace as reflected by his/her level of affective commitment will complimentarily influence the degree to which he/she is involved in his/her job.

The results of this study are not without implications for the practicing managers especially those who are concerned with the human resource functions in an organization. Firstly, managers should note that they should provide such a daily working environment to their employees that the latter does not feel cognitively or affectively cramped in discharging his/her duties. This can be done providing ample scope for individuals to express themselves at their workplace.

Secondly, managers should also observe whether the provision of an encouraging psychological climate is contributing to an individuals affective commitment. In the absence of a transformation of a positive psychological climate into a greater affective commitment, there exists a possibility of misuse of workplace freedom by the employees.

Finally, managers should understand that for an employee who is committed to his/her organization, it is important that his/her immediate work settings are valuable to


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him/her to the extent that it reduces his/her cognitive and affective dissonance. Reduction of cognitive dissonance will lead to higher levels of job involvement.

Future Research Scope Three areas of future research emerged out of this study. Firstly, one may examine the role of identification as a second-order mediator between psychological climate and job involvement. Secondly, the current study focused on data related to a single culture, namely that of India. Future researchers may highlight the cross cultural validity of the study model. Finally, researchers may also carry out longitudinal studies on whether affective commitment continues to act as the mediator variable between psychological climate on the one hand and job involvement on the other. REFERENCES

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Deckop, J.R., Mangel, R., Cirka, C.C. (1999). Getting More Than You Pay For: Organizational Citizenship Behavior and Pay for Performance Plans. Academy of Management Journal, 42, 4, 420-428.

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OReilly, C.A., & Chatman, J. A. (1986) Organizational commitment and psychological attachment: The effects of compliance, identification, and internalization on prosocial behavior. Journal of Applied Psychology, 71, 492-499. Parker, C.P., Baltes, B.B., Young, S.A., Huff, J.W., Altmann, R.A., Lacost, H.A., Roberts, J.E. (2003). Relationship between psychological climate perceptions and work outcomes: A meta-analytic review. Journal of Organizational Behavior, 24, 389-416. Pattnaik, S., & Biswas, S. (2005). The mediating role of organizational citizenship behavior between organizational identification and its consequences. Paper presented at the International Research Conference of the Academy of Human Resource Development (AHRD), February 24-27, 2005, Estes Park, CO. Porter, L. W., Steers, R. M., Mowday, R. T., & Boulian, P. V. (1974). Organizational commitment, job satisfaction, and turnover among psychiatric technicians. Journal of Applied Psychology, 59, 603-609. Ralston, D. A., Holt, D. H., Terpstra, R. H., & Kai-Cheng, Y. (1997). The mipact of national culture and economic ideology on managerial work values: A study of the United States, Russia, Japan, and China. Journal of International Business Studies, 28(1), 177-207.

Rao, T. V., & Abraham, E., S. J. (2003). HRD climate in organizations. In T. V. Rao (ed.) Readings in human resource development. New Delhi, Oxford and IBH Publishing Co. Pvt. Ltd.: 36-45.

Ruh, R. A., White, J. K., & Wood, R. L. (1975). Job involvement, values, personal background, participation in decision making and job attitudes. Academy of Management Journal, 18(2), 300-312. Sandler, B. E. (1974). Eclectism at work: Approaches to job design. American Psychologist, 29, 767-773. Schein, E. H. (1983). Organizational Psychology, (3rd Ed.). New Delhi, India: Prentice Hall of India Private Limited. Schneider, B. (1975). Organizational climates: An essay. Personnel Psychology, 28, 447-479. Smith, C. A., Organ, D.W., & Near, J. P. (1983). Organizational citizenship behavior: Its nature and antecedents. Journal of Applied Psychology, 68, 653-663. Sparrow, P. R., & Budhwar, P. S. (1997). Competition and change: Mapping the Indian recipe against world wide patterns. Journal of World Business, 32(3), 224-242. Steers, R. T. (1977). Antecedents and consequences of organizational commitment. Administrative Science Quarterly, 22, 46-56. Strutton, D., Pelton, L.E., Lumpkin, J.R. (1993). The relationship between psychological climate and salesperson-sales manager trust in sales organization. Journal of Personal Selling and Sales Management, 13(4), 1-14.


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Tett, R. P., & Meyer, J. P. (1993). Job satisfaction, organizational commitment, turnover intention, and turnover: Path analysis based on meta-analytic findings. Personnel Psychology, 46, 259-293. Varma, A., Budhwar, P., Biswas, S., & Toh, S. M. (2005). An empirical investigation of host country national categorization of expatriates in the United Kingdom. Paper presented at the European Academy of Management, May 2005, Munich, Germany. Welsh, H., & Le Van, H. (1981). Interrelationships between organizational commitment and job characteristics, job satisfaction, professional behavior, and organizational climate. Human Relations, 34(12), 1079-1089. Williams, L. J., & Anderson, S. E. (1991). Job satisfaction and organizational commitment as predictors of organizational citizenship and in-role behaviors. Journal of Management, 17(3), 601-617. Woodard, G., Cassill, N., Herr, D. (1994). The Relationship between Psychological Climate and Work Motivation in a Retail Environment. New York, NY: Routledge. World Bank. (2001). World development report. New York: Oxford University Press. Zucher, L. A. (1968). Particularism and organizational position: A cross cultural analysis. Journal of Applied Psychology, 52(2), 139-144.


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Determinants of Organizational Citizenship Behaviour: A Review of Literature

Shweta* & Srirang Jha**

Scholars have studied various factors contributing towards Organizational Citizenship Behaviour (OCB) over the last three decades. However an integrated approach to the determinants of OCB is yet to emerge. Most of the researchers have examined the impact of only one or two factors on OCB, occasionally taking a third factor for probing its mediating role. Role of a number of important factors such as internal communication patterns, organizational culture, organizational climate, vision, mission and strategies, etc. as possible determinants of OCB has not been studied at length. Moreover, there is an urgent need to develop a composite view on the determinants of OCB while formulating any holistic policy to augment citizenship behavior among the employees. This review paper presents a comprehensive framework for delineating the determinants of OCB for the benefit of practicing managers as well as discerning academics and researchers. Key Words: Organizational Citizenship Behaviour, Determinants, Integrated Approach Introduction Organizational Citizenship Behaviour (OCB) is characterized by discretionary efforts of the employees for the benefit of an organization without any expected rewards. OCB has evolved as a powerful concept over the last three decades. Both researchers and practicing managers are engaged in decoding the factors that augment OCB at the shop-floor and corporate offices across all sectors, more so in knowledge-driven establishments. OCB has been generally linked to increased efficiency and profitability, innovation and process improvement, and above all, customer satisfaction and retention and above all, ability of the employees to cope with several organizational uncertainties. Characterization of OCB as discretionary has however been challenged by scholars as untenable (Zellars, Tepper & Duffy 2002). Indeed, distinction between required behavior and behavior that go beyond ones job description is too indistinct to merit any definitive labeling such as organizational citizenship behaviour especially when the role perceptions of the employees and employers vary inordinately (Rousseau, 1989, Graham, 1991, Van Dyne, Graham , & Dienesch, 1994, Morrison, 1994, Pond, Nacoste, Mohr, Rodriguez, 1997, Lam, Hui,, & Law, 1999). Further, Tepper, Lockhart,

* Lecturer, Apeejay School of Management, New Delhi, India E-mail: [email protected] **Assistant Professor, Apeejay School of Management, New Delhi India E-mail: [email protected]


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and Hoobler (2001) observed that employees indulgence in extra role behavior depend on how far they define such efforts as an integral part of their jobs. Concept of OCB Despite raging controversy over the nature of OCB, it is interesting to explore how the concept evolved and influenced management perspectives in recent times. Dennis W. Organ pioneered the concept OCB in late 1970s although scholars often endeavoured to account for the voluntary extra-role behavior or pro-social behavior at the workplace inspired by their own volition sans any remunerative considerations even during the formative stages of the evolution Management literature (Barnard, 1938, Roethlisberger & Dickson, 1939). Moreover, the scholars having research interest in OCB have benefited from the studies conducted in Social Psychology as well (Blau, 1964, Katz & Kahn, 1966, Krebs, 1970). Organ (1977) published a paper titled A Reappraisal and Reinterpretation of the Satisfaction-Causes-Performance Hypothesis that generated tremendous academic interest among the scholars and practitioners to decode the antecedents of such casual contributions of the employees which were not the part of their job description and as such could not be a source of reward or punishment (in case of non-performance). Organ along with his doctoral students field-tested the hypothesis and published the outcomes in 1983. All the efforts made by the employees to help their colleagues or to conform to the contractual role prescription were termed as Organizational Citizenship Behaviour or OCB (Bateman & Organ, 1983, Smith, Organ & Near, 1983). It was also assumed that job related attitudes of the employees such as job satisfaction, turnover intentions and organizational commitment were best exhibited through actions over which they had greater discretion. Studies by Organ and his colleagues confirmed that employees with higher job satisfaction participated in OCB more enthusiastically. They delineated two dimensions of OCB viz. altruism, or helping specific persons, and generalized compliance, a more impersonal form of conscientious citizenship. Later, Organ (1988) added sportsmanship, courtesy and civic virtue as other dimensions of OCB alongside altruism and generalized compliance. Williams & Anderson (1991) classified OCB into two distinct categories: OCBI behavior that is directed towards individuals in the organization; and OCBO behaviour that is directed towards augmenting organizational effectiveness. While altruism and courtesy are associated with OCBI, conscientiousness, sportsmanship and civic virtues are connected to OCBO (Van Dyne, Cummings & Parks, 1995). Organs classification of various dimensions of OCB may be summarized as under:

Altruism, helping other members of the organization in their tasks (e.g. voluntarily helping less skilled or new employees, and assisting co-workers who are overloaded or absent and sharing sales strategies);


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Courtesy, preventing problems deriving from the work relationship (e.g. encouraging other co-workers when they are discouraged about their professional development);

Sportsmanship, accepting less than ideal circumstances (e.g. petty grievances, real or imagined slights);

Civic virtue, responsibly participating in the life of the firm (e.g. attending meetings/functions that are not required but that help the firm, keeping up with changes in the organization, taking the initiative to recommend how procedures can be improved); and

Conscientiousness, dedication to the job and desire to exceed formal requirements in aspects such as punctuality or conservation of resources (e.g. working long days, voluntarily doing things besides duties, keeping the organization's rules and never wasting work time).

In view of diverse interpretations of the term vis--vis its nature and scope, Organ redefined OCB as efforts that contributed to the maintenance and enhancement of the social and psychological context that supported task performance (Organ, 1997). DETERMINANTS OF OCB Individual Dispositions & Motives Individual dispositions e.g. positive affectivity, negative affectivity, conscientiousness, agreeableness etc. have been linked to OCB (Organ & Ryan, 1995). Interestingly, Konovsky and Organ (1996) predicted that agreeableness would relate particularly with altruism, courtesy, and sportsmanship, whereas conscientiousness would relate with generalized compliance. Extraversion has also been described as key dispositional determinant of social behavior (Barrick, et al., 2005). However, Comeau & Griffith (2005) provided empirical evidence contrary to the popular notion that individual dispositions and OCB were linked. Locus of control also plays an important role in determining the level of OCB displayed by the employees. People with internal locus of control tend to engage in OCB more enthusiastically than those with external locus of control (Blakely, Srivastava & Moorman, 2005). However, this assumption needs to be verified empirically for broader generalization. Elanain (2007) has found empirical evidence regarding an association between openness to experience, conscientiousness, and emotional stability on the one hand and OCB on the other. Besides the individual dispositions, employees are driven by their intrinsic or extrinsic motives to indulge in OCB (Pennar et al., 1997). In case the employees are intrinsically motivated, they would engage in extra-role behavior primarily for the benefit of the coworkers. On the other hand, the employees with higher extrinsic motivation would engage in OCB so as to cultivate a good image for themselves. However, such personality/disposition oriented OCB must be managed with great care. Becton, Giles and Schraeder (2008) observed that formally evaluating and rewarding OCB could create emotional dissonance for intrinsically motivated employees, thereby resulting in


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emotional exhaustion and burnout whereas these measures would invariably enhance the intensity of OCB among employees who are extrinsically motivated. Groups Cohesiveness Employees generally relate to their immediate work group. Obviously, work group has tremendous influence on their attitudes and conduct. Groups become effective and powerful as the members develop indomitable affinity and indefatigable urge to remain connected. Individual members are more sensitive towards others and forthcoming in helping others in need in case the group is cohesive (Schachter, et al, 1951). Further, cohesiveness augments positive mood states leading to greater effectiveness of the entire group (Gross, 1954). Cartwright (1968) has truly observed that cohesiveness leads to greater intra-group communication, favourable interpersonal evaluations and stronger group influence over its members and higher OCB incidence especially if it matches group norms. Moreover, mutual benefits accruing from OCB may also augment its incidence (Axelrod, 1984). According to Mudrack (1989), even mutual commitment of group members towards each other and their tasks influenced the extent to which they would indulge in extra-role behavior. Taking cue from social exchange theory, Organ (1990) observed that OCB may reflect members effort to sustain exchange relationships within the group something that is governed by social rather than any financial considerations. On the other hand, Isen & Baron (1991) have maintained that positive mood states emerging from inexhaustible cohesiveness stimulate altruism towards fellow members. Quality of working relationships among the group members also plays a crucial role in augmenting their helping behavior (Anderson & Williams, 1996). Indeed, work group cohesiveness, mutual commitment and mutual benefits engender citizenship behaviour aimed at helping each other rather than contributing to organizational effectiveness ((Kidwell, Jr., Mossholder & Bennett, 1997). Employee Attitudes Employee attitudes such as job satisfaction and organizational commitment have often been liked to OCB. Smith, Organ & Near (1983) in their seminal study found a definite correlation between job satisfaction and OCB. Puffer (1987) arrived at a similar conclusion in a later study. Murphy, Athanasou & King (2002) also found that job satisfaction was substantially correlated with employees OCB. Foote & Tang (2008) maintained that job satisfaction and OCB were significantly correlated and the association became all the more noteworthy where the team commitment happened to be greater. Interestingly, mere presence of higher level of team commitment would not augment OCB in case the employees are reeling under lower levels of job satisfaction (Tang et al. 2008). Level of organizational commitment also influenced the incidence of OCB in several cases (OReilly & Chatman, 1986, Organ, 1990). Schnake (1991) appropriately observed that the employees indulge in OCB primarily as token of repayment for the fulfillment and belongingness they derive from highly satisfying job and holistic image


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of their respective organizations. Thus, higher levels of job satisfaction and organizational commitment are reflected in their involvement in the affairs of the organization beyond the call of duty. Further, Morrison (1994) tried to establish a positive association between affective commitment and OCB which however were mediated by job breadth. Van Dyne, Graham & Dienesch (1994) among other scholars observed that OCB depended on the positive attitudes of the employees towards their jobs as well as the organizations. Job involvement is another employee attitude that contributes significantly towards fostering OCB. According to Kanungo (1982), it refers to the degree to which individuals psychologically identify with their present job the employees develop strong relationship with their jobs so much so that they invest their personal resources in their current job. Turnipseed (1996) also found that involvement and task orientation contributed positively towards extra-role behaviour of the employees well beyond their contractual obligations. Indeed, job involvement induces positive mood and higher degree of professional and organizational commitment, making the current job all the more fulfilling which in turn result in OCB (Hoffi-Hofstetter and Mannheim, 1999). Even Mudrack (2004) has opined that employee with higher degree of job involvement tend to focus on job-related activities even in their spare time such as thinking of ways to perform even better. Leader-Member Exchange and Supervisory Behaviour Leader-Member Exchange (LMX) refers to quality of relations shared between leaders/managers and their subordinates. Employees are most likely to engage in OCB in case the managers display transformational leadership behavior such as envisioning, role modeling, invigorating subordinates intellectually and communicating higher performance expectations (Podsakoff, Mackenzie, & Bommer, 1996). Moreover, leaders contingent reward behaviour such as expressing satisfaction or appreciation for good performance also contribute towards employees OCB (Podsakoff et. al, 2000). Further, employees with whom the managers share valued resources such as time, information and personal support tend to consistently perform OCB with passion as compared to those whose managers adhere to contractually established job roles (Hui, Law & Chen, 1999). On the contrary, the employees may withhold OCB in case the managers are exploitative to the extent that the subordinates feel abused (Zellars, Tepper, & Duffy, 2002). Hence the key to employees involvement in OCB lies in the hands of the leaders. Indeed, leaders can encourage the employees engagement in OCBs, even in the case of thwarting personality characteristics (Emmerik & Euwema, 2007). Obviously, much depends on the leadership effectiveness so far as OCB is concerned. Bhal, Guati & Ansari (2009) have provided empirical evidence regarding loyalty aspect of OCB being an outcome of LMX where organizational commitment acts as a mediator: Commitment is an individuals identification with the organization. It is this identification that makes the employee takes up tasks that are not routine. Since loyalty


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as a form of citizenship behaviour is an extra-role behaviour of the subordinate, the behaviour results from the employees sense of identification with the organization. Organizational Justice Organizational justice has often been linked to OCB. Greenberg (1996) has defined organizational justice as a concept that reflects employees perception about the extent to which they are treated fairly in organizations and how such perceptions affect organizational outcomes such as commitment and satisfaction. Hoy & Tarter (2004) have provided a comprehensive set of principles determining organizational justice:

The principle of equality: This presupposes that the contributions made to the organization by individuals are in proportion to their incomes.

The principle of perception: The effect of the general perception of justice on the individual.

The principle of polyphony: This assumes that an increase in participation in decision making will entail an increase in fair decisions.

The principle of interpersonal justice: This presupposes that respectful, kind and mature behaviours will be displayed in order to ensure justice.

The principle of consistency: This is based on the view that consistency in leaders behaviours is essential to create a perception of justice among those in inferior positions.

The principle of political and social equality: This assumes that it is essential to share a collective organizational mission in decision-making and to take decisions according to personal interests independently.

The principle of correction: This is related to the amelioration of wrong or bad decisions.

Organizations which follow the general principles of organizational justice may ensure a good measure of distributive justice (fair distribution of organizational resources), procedural justice (propriety of procedures in decision-making) and interactional justice (fairness in treatment of organizational members). Each of these dimensions of organizational justice is crucial in shaping the organizational citizenship behavior of the employees in a particular organization. Bhal (2006) has emphasized a mediating role of procedural and interactional justice in augmenting OCB in the context of LMX. Ylmaz & Tasdan (2009) have indicated that there exist only moderate positive relations between organizational justice perceptions and actual OCB. Conclusion Scholars have studied various factors contributing towards OCB over the last three decades. However an integrated approach to the determinants of OCB is yet to emerge. Most of the researchers have examined the impact of only one or two factors on OCB, occasionally taking a third factor for probing its mediating role. Impact of a number of important factors such as internal communication patterns, organizational culture, organizational climate, vision, mission and strategies, etc. as possible determinants of OCB has not been studied at length. Moreover, there is an urgent need to develop a


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composite view on the determinants of OCB while formulating any holistic policy to augment citizenship behavior among the employees. REFERENCES

Anderson, S. E. & Williams, L. J. (1996). Interpersonal, job, and individual factors related to helping processes at work. Journal of Applied Psychology, Vol. 81 pp 282-296.

Axelrod, R. (1984). The evolution of cooperation. New York: Basic Books.

Barnard, C. I. (1938). The functions of the executive. Cambridge, MA: Harvard University Press.

Barrick, M. R., Parks, L. & Mount, M. K. (2005). Self-monitoring as a moderator of the relationship between personality traits and performance, Personnel Psychology, Vol. 58, No. 3, pp 745-767.

Bateman, T. S. & Organ, D.W. (1983). Job satisfaction and the good soldier: The relationship between affect and employee citizenship. Academy of Management Journal, Vol. 26, pp 587-595.

Becton, J. Bret, Giles, William F., & Schraeder, Mike. (2008). Evaluating and rewarding OCBs: Potential consequences of formally incorporating organizational citizenship behaviour in performance appraisal and reward systems. Employee Relations, Vol. 30, No. 5, pp 494-514.

Bhal, Kanika T. (20

mallik arjun appa

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