work stress, job satisfaction and organizational commitment

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European Journal of Social Sciences – Volume 18, Number 1 (2010) 156 Work Stress, Job Satisfaction and Organizational Commitment among Public Employees before Privatization Fisnik Bytyqi University of Maryland University College-Europe Post and Telecom of Kosova JSC E-mail: [email protected] Tel: +377-44-527000 Vllaznim Reshani Public Procurement Revision E-mail: [email protected] Tel: +377-44-693938 Vyrtyt Hasani Universum College E-mail: [email protected] Tel: +377-44-166301 Abstract This study examined employees’ level of work stress, job satisfaction and organizational commitment and the impact these workplace dimensions have in one another. The study was conducted in Kosovo within central public organizations that are in the process of privatization or corporatization. The quantitative research findings revealed high level of job satisfaction, organization commitment and work stress. However, the findings indicate that satisfied and committed workforce is not a guarantee to have low level of work stress and vice versa. Keywords: Work Stress, Job Satisfaction, Organizational Commitment, Public Sector, Privatization, Corporatization, Kosovo. 1. Introduction Publicly owned organizations in Kosovo have been subject of continuous pressure to change their ownership statute due to their performances, corruption affairs, mismanagement and government interference. There is an increasing belief that public organizations should be privatized in order to preserve their value, improve their performance and void any government interference (Riinvest, 2008 and 2009). Publicly owned organizations in Kosovo do not have the freedom to manage their own operations due to the forces outside the organization (Riinvest, 2008 and 2009; The Organization for Democracy, Anticorruption and Dignity – Çohu, 2008a and 2009). In line with this, Davies (1999) discusses the impact of forces outside the organization coming from politicians, professional groups, public opinion, media reporting and regulatory framework, and forces inside the organization like the culture, norms and staff behaviors. Based on the Law on Publicly Owned Enterprises in the Republic of Kosovo (Law No. 03/L-087, 2008), all publicly owned organizations are owned by the Government of Kosovo. Based on Article 12 of the Law, the Board of Directors is appointed by the Government

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Page 1: Work Stress, Job Satisfaction and Organizational Commitment

European Journal of Social Sciences – Volume 18, Number 1 (2010)

156

Work Stress, Job Satisfaction and Organizational Commitment

among Public Employees before Privatization

Fisnik Bytyqi University of Maryland University College-Europe

Post and Telecom of Kosova JSC E-mail: [email protected]

Tel: +377-44-527000

Vllaznim Reshani Public Procurement Revision

E-mail: [email protected] Tel: +377-44-693938

Vyrtyt Hasani

Universum College E-mail: [email protected]

Tel: +377-44-166301

Abstract This study examined employees’ level of work stress, job satisfaction and organizational commitment and the impact these workplace dimensions have in one another. The study was conducted in Kosovo within central public organizations that are in the process of privatization or corporatization. The quantitative research findings revealed high level of job satisfaction, organization commitment and work stress. However, the findings indicate that satisfied and committed workforce is not a guarantee to have low level of work stress and vice versa. Keywords: Work Stress, Job Satisfaction, Organizational Commitment, Public Sector,

Privatization, Corporatization, Kosovo. 1. Introduction Publicly owned organizations in Kosovo have been subject of continuous pressure to change their ownership statute due to their performances, corruption affairs, mismanagement and government interference. There is an increasing belief that public organizations should be privatized in order to preserve their value, improve their performance and void any government interference (Riinvest, 2008 and 2009).

Publicly owned organizations in Kosovo do not have the freedom to manage their own operations due to the forces outside the organization (Riinvest, 2008 and 2009; The Organization for Democracy, Anticorruption and Dignity – Çohu, 2008a and 2009). In line with this, Davies (1999) discusses the impact of forces outside the organization coming from politicians, professional groups, public opinion, media reporting and regulatory framework, and forces inside the organization like the culture, norms and staff behaviors. Based on the Law on Publicly Owned Enterprises in the Republic of Kosovo (Law No. 03/L-087, 2008), all publicly owned organizations are owned by the Government of Kosovo. Based on Article 12 of the Law, the Board of Directors is appointed by the Government

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and has the authority to recruit and dismiss key management positions within these organizations. The Organization for Democracy, Anticorruption and Dignity – Çohu (2008a and 2009) argues that political figures are appointed within public organizations, including Post and Telecom of Kosovo (hereinafter PTK) and Prishtina International Airport (hereinafter PIA).

The organizations involved in this study have begun (the case of PTK) or concluded (the case of PIA) the process of ownership change. Based on the Law nr.03/L-090 on Public-Private Partnership and Concessions, on 12.08.2010, the shareholder (Government of Kosovo) has signed a contract with Limak Aeroports de Lyon to give on concession PIA for a period of 20 years. In addition, on October 24, the Parliament of Kosovo has approved the Strategy for Privatization of PTK. However, the approval of the strategy has been subject of numerous contradictions and accusations from the opposition parliamentarian parties and civil society and therefore no deadline has been decided to conclude the privatization of PTK. 2. Review of Literature Review of literature will provide a theoretical framework on each of the workplace dimensions studied in this research. The overall purpose of this part of the research is to support the research questions and to build the instrument utilized in this research (the questionnaire). 2.1. Work Stress

Work stress has a considerable importance for the organization considering that it has a direct impact in employee’s health and consequently impacts work performance. According to Jennings (2008) work stress remains a significant concern for many organizations, affecting both individuals and organizations. For the individual, regardless of whether stress is perceived positively or negatively its effects may eventually contribute to illness. While for the organization and work stress may contribute to absenteeism and turnover.

It’s important to note that work stress will also impact job satisfaction and organizational commitment. Bennett, Lowe, Mathews, Dourali and Tattersall (2001) consider that when employees deal with work stress they tend to be less satisfied with their jobs. In addition, Elangovan (2001) considers that there are strong relationship between work stress and job satisfaction (higher stress leads to lower satisfaction) and between satisfaction and commitment (lower satisfaction leads to lower commitment), consequently in his research the author argued that lower level of commitment leads to higher intention to quit. 2.2. Job Satisfaction

Job satisfaction plays a very important role in our everyday life, both for employees and organizations. Organizations have significant effects on all employees and how they feel at work is reflected in their jobs as well. Based on many studies, when employees are satisfied with their jobs they will be more committed to their employer and will be more productive. Job satisfaction impacts employee productivity, well-being and consequently impacts job quality. According to Diaz-Serrano and Cabral Vieira (2005) job satisfaction is considered a strong predictor of overall individual well-being and job quality.

According to Aluja, Blanch and Garcia (2005), job satisfaction is a result of employees’ perception of how well their job provides those things that are considered important from their side. They also provide three dimensions of job satisfaction that are emotional respond to the work situation, the fitness between yield and their expectation, and the individual attitude that reflects a relationship among employees.

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2.3. Organizational Commitment

Organizational commitment should exist within every employee, from managerial staff to non-managerial staff in order to determine the success of an organization. Employee commitment is gained when the organization shows the same amount of commitment as well. Cooperation and appreciation between each and every members of the organization is needed to achieve the organization’s goal. This can be achieved only if strong commitment exists within the members of the organization (Ratmawati, 2007).

Many efforts have been made to study organizational commitment in relation to other workplace dimensions. In addition, many empirical studies have focused on the effects of demographic factors, such as job level, tenure, and longevity or job characteristics, including job scope, variety, and challenge on employee commitment and involvement (Cohen, 1992). While according to Abraham, Lanny, Kenneth and MA (2001), there have been many researches in the field of managerial competency and organizational commitment that are related to employee empowerment and job satisfaction in order to obtain company performance. Further, Allen and Meyer (1990) argue that older workers are more committed to an organization. 3. Research Questions The research questions will be tested and answered after examining the following workplace dimensions: job satisfaction, organizational commitment and work stress. The research questions utilized in this study were:

• Research Question 1: What is employee work stress, job satisfaction and organization commitment?

• Research Question 2: What is the impact of work stress on job satisfaction and organizational commitment, and vice versa? Every organization aims to achieve a high level of employee satisfaction since many processes

depend upon employees’ job satisfaction. When employees are satisfied with their jobs, with their organization, they are more likely to commit their future to the organization and consequently it is assumed to have low level of work stress. 4. Methodology This research is prepared based on primary and secondary data. The primary data consisted on a questionnaire that was distributed to employees of PTK and PIA. The secondary data has been comprised of both internal and external data sources i.e., internal reports and analyses; published reports, published surveys, internet and web-based sources of information. 4.1. Sample

The research has taken place in the Republic of Kosovo and the key focus of the research has been focused in the central public organizations that are or were in the process of ownership change. The questionnaire was administered to a random selection of 300 employees. Respondents could fill in the questionnaire at work or at home. A total of 165 completed questionnaires were returned for a response rate of 66%. 4.2. Measures

The respondents rated the statements in the questionnaire using a Likert Scaling ranging from 1 (strongly disagree) to 5 (strongly agree). By using a scale of five alternatives the respondents also had the alternative to choose a neutral option as well, which will be scaling number 3.

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The questionnaire was developed following a review of a substantial number of relevant publications on the themes of work stress, job satisfaction and organizational commitment published by Babin and Boles, 1996; Himle et al., 1989; Narver and Slater, 1990.

The use of a questionnaire as the survey instrument provided a substantial proportion of the organization’s staff with the opportunity to share their opinions and perspectives on the workplace dimensions studied in this research. 5. Results A descriptive research has been used to present the findings according to the following measures i.e., Mean (x), Standard Deviation (std) and Coefficient of Variation (cv). The presentation of the data has been conducted based on these measures as per the following two steps. First, the scores of each statement individually have been presented. Then, their overall scores for each workplace dimension will be presented. 5.1. Work Stress

There were total of four statements included in the questionnaire intending to measure employee work stress. Higher scores indicate high level of work stress. Table 1: Descriptive Statistics of All Statements Examining Work Stress

Statement x std cv Often I’m upset about things at work that happen unexpectedly 3.7 0.8 14 Recently I felt very nervous and/or stressed 4.0 0.8 17 Recently I could not cope with the things that I had to do 2.9 0.9 38 Often I am angered because of things that happened that were outside of my control 3.7 0.8 22 Overall Scores – Work Stress 3.57 0.82 22.7

The overall mean score of these statements is (3.57) indicating a high level of work stress;

whereas, the overall standard deviation and coefficient of variation is (0.82) and (22.7%), meaning the values are not far from the mean. 5.2. Job Satisfaction

There were total of seven statements included in the questionnaire intending to measure employee job satisfaction. Higher scores indicate high level of job satisfaction. Table 2: Descriptive Statistics of All Statements Examining Job Satisfaction

Statement x std cv I am satisfied with my job in general 4.4 0.7 14 I am willing to work beyond my work schedule in order to help my organization succeed 4.2 0.5 13 I tell my friends that my Employer is a great place to work for 4.3 0.9 16 I find that my values fit with my organization’s values 4.0 0.6 22 I am proud to tell others I am a part of this organization 4.0 0.6 18 I am really glad that I chose my Employer to work for over other organizations 4.3 0.6 18 I really care about the fate of my Employer 4.6 0.6 11 Overall Scores 4.25 0.64 16

The overall mean score of these statements is (4.25) indicating a very satisfied workforce;

whereas, the overall standard deviation and coefficient of variation is (0.64) and (16%), meaning the values are close to the mean.

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5.3. Organizational Commitment

There was one statement included in the questionnaire intending to measure organizational commitment. Lower scores indicate high level of organizational commitment. Table 3: Descriptive Statistics of the Statement Examining Organizational Commitment

Statement x std cv I will probably look for a new job in the next year 1.9 1.1 16.5 Overall Scores 1.9 1.1 16.5

The overall mean score of this statement is (1.9) indicating high level of organizational

commitment; whereas, the overall standard deviation and coefficient of variation for is (1.1) and (16.5%), meaning the values are not far from the mean. 6. Discussion and Conclusions During the last couple of years PTK and PIA have gone through some difficult but indispensable processes of change. Regardless of the challenges, these organizations have all needed capabilities, resources and competencies to manage and overcome successfully these change processes. 6.1. Discussion

Based on the findings obtained we answer the research questions posted in this study: Research Question 1: What is employee work stress, job satisfaction and organization

commitment? The findings obtained indicate that the organizations surveyed have a very satisfied and committed workforce, but they must be careful with employee work stress.

Research Question 2: What is the impact of work stress on job satisfaction and organizational commitment? The impact of work stress on job satisfaction and organizational commitment is limited for organizations that are in the process of privatization or corporatization. Even though employees feel stressed they are satisfied with their jobs and are committed to their organization and vice versa. Job satisfaction and organizational commitment is not a guarantee to achieve low level of work stress.

We can assume that employees are satisfied with their jobs and committed to their organizations but feel stressed due to the following facts: a) PTK and PIA provide above the market compensation strategies. Our assumption is supported by a Compensation & Benefit Survey Kosovo 2009 conducted by PricewaterhouseCoopers in which PTK is placed in 75 percentile for most of the positions surveyed in the labor market of Kosovo, b) High unemployment rate in Kosovo. According to the United Nations Development Program unemployment rate in Kosovo is almost 45 per cent (Loxha, 2009). De Lange, De Witte and Notelaers (2008) argue that highly committed employees tend to have difficulties to detaching themselves from the job due to the investments made in the job and due to the high level of identification with their job, c) these organizations are in the process of privatization or were in the process of corporatization. On 12.08.2010, the Government has signed a contract with Limak Aeroports de Lyon to give on concession PIA for a period of 20 years; while, on October 24, the Parliament of Kosovo has approved the Strategy for Privatization of PTK, d) the ownership statute of these organizations. PTK and PIA are (or were in case of PIA) publicly owned organizations and interference from the government may be present (Riinvest, 2008; The Organization for Democracy, Anticorruption and Dignity – Cohu, 2008a). 6.2. Conclusion

Although findings showed a very committed and satisfied workforce, PTK and PIA should pay close attention to their level of work stress. Management of these organizations should assist employees in

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dealing with work stress, in particular when dealing with uncertainty and issues that are outside ones control and/or come from outside the organization.

Job satisfaction and employee commitment is not a onetime process but changes constantly especially when the organization deals with high level of employee work stress. Work stress should not be taken for granted but pragmatic measures should be employed to deal with it and void eventual negative effect on both, job satisfaction and organizational commitment.

PTK and PIA should provide employee assistance programs to help employees deal with work stress by specifically helping them to live with and deal with uncertain situations which are out of their control. In addition, it is very important to enhance employee empowerment and employee involvement by enabling them to have control over their work and by letting them have input about the decisions made affecting their work. Lastly, the organizations should train employees in order to build competencies needed to help them do their job independently and professionally without any possible uncertainty. 6.3. Further Research

Further research can be concentrated on measuring the most contributing factors causing work stress within all the categories tested throughout the organization. A special emphasizes can be further addressed to the categories of employees who have shown higher level of work stress.

The study has certain limitations. First, the statements within the questionnaire were devised from the consultation with industry experts, senior managers, employees from the organizations surveyed, and from broad literature. Hence, in a quantitative approach, while gathering data from a large sample of staff cannot provide a thorough analysis. Second, participation in the study was delimited to only PTK and PIA employees; generalization to other publicly owned organization that are in the process of privatization or corporatization may not be warranted. References [1] Abraham, S. E., Lanny A K., Kenneth S. and MA M. (2001). Managerial Competencies and the

Managerial Performance Appraisal Process. Journal of Management Development, 20 (10), 842-852.

[2] Allen, N. J., & Meyer, J. P. (1990), “The Measurement and Antecedents of Affective, Continuance and Normative Commitment to the Organization”, Journal of Occupational Psychology, 63(1), 18.

[3] Aluja, A., Blanch, A. and Garcia, L.F. (2005). Dimensionality of the Maslach Burnout Inventory in School Teachers: A Study of Several Proposals. European Journal of Psychological Assessment, 21 (1), 67 - 76.

[4] Babin, B. J. and Boles, J.S. (1996). The effects of perceived co-worker involvement and supervisor support on service provider role stress, performance, and job satisfaction. Journal of Retailing, Vol. 72 No. 1, 57 - 75.

[5] Bennett, P., Lowe, R., Matthews, V., Dourali, M., & Tattersall, A. (2001). Stress in nurses: Coping, managerial support, and work demand. Stress and Health: Journal of the International Society for the Investigation of Stress, 17(1), 55-63.

[6] Cohen, A. (1992) “Antecedents of Organizational Commitment across Occupational Groups: A Meta-Analysis”, Journal of Organizational Behavior, 13, 539–558.

[7] Davies, H. T. O. (1999). Falling public trust in health services: implications for accountability. Journal of Health Services Research and Policy, 4, 193 - 194.

[8] de Lange, A. H., De Witte, H., and Notelaers, G. (2008). Should I stay or should I go? Examining longitudinal relations among job resources and work engagement for stayers versus movers. Work and Stress, 22, 201 - 223.

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[9] Diaz-Serrano, L. and Cabral Vieira, J.A.. (2005). Low pay, higher pay and job satisfaction within the European Union: Empirical evidence from fourteen countries, IZA Discussion Papers No. 1558, Institute for the Study of Labour (IZA), available at: http://ideas.repec.org/p/iza/izadps/dp1558.html

[10] Elangovan A.R. (2001). Causal ordering of stress, satisfaction and commitment, and intention to quit: a structural equations analysis, Leadership & Organization Development Journal, 22(4), 159-165.

[11] Himle, D. P., Jayaratne, S. and Thyness, P.A. (1989), The buffering effects of four types of supervisory support on work stress, Administration in Social Work, Vol. 13, No. 1, 19-34.

[12] Jennings, B. M. (2008). Work stress and burnout among nurses: Role of the work environment and working conditions. In R. G. Hughes (Ed.), Patient safety and quality: An evidence-based handbook for nurses. Rockville, MD: Agency for Healthcare Research and Quality.

[13] Law nr. 03/L-087 on Publicly Owned Enterprises. Available at: http://www.gazetazyrtare.com/e-gov/index.php?option=com_content&task=view&id=164&Itemid=56#

[14] Law nr.03/L-090 on Public-Private Partnership and Concessions. Available at: http://www.gazetazyrtare.com/e-gov/index.php?option=com_content&task=view&id=380&Itemid=28

[15] Law nr. 2003/17 for Public Procurement in Kosovo. Available at: http://www.assembly-kosova.org/common/docs/ligjet/2003_17_al.pdf

[16] Narver, J. C. and Slater S. F. (1990). The effect of a market orientation on business profitability, Journal of Marketing, Vol. 54, 20-35.

[17] Ratmawatti, R. (2007). Managerial competency and management commitment to employee empowerment: banking companies case, Proceedings of the 13th Asia Pacific Management Conference, Melbourne, Australia, 556 – 562.

[18] Riinvest (2008). Socio-economic situation in Kosovo: advancing governance and increasing investment attractiveness, Pristina.

[19] Riinvest (2009). Dilemmas and backwards in a fast track. Privatization of POEs in Kosovo, Pristina.

[20] The Organization for Democracy, Anticorruption and Dignity – Çohu. (2008a). Airport of Pristina – the first casualty of politicizing public organizations, Pristina.

[21] The Organization for Democracy, Anticorruption and Dignity – Çohu. (2008b). Another political appointee within the public sector, Pristina.

[22] The Organization for Democracy, Anticorruption and Dignity – Çohu. (2009). One year with Thaci government: monopolizing the state and legitimizing corruption, Pristina.

[23] The Organization for Democracy, Anticorruption and Dignity – Çohu. (2008c). Damaging public sector from corrupt politics: case study on telecommunication market, Pristina.