American Journal of Economics, Finance and Management
Articles Information
American Journal of Economics, Finance and Management, Vol.1, No.4, Aug. 2015, Pub. Date: May 23, 2015
Effect of Formalization on Organizational Commitment; Interactional Role of Self-Monitoring in the Service Sector
Pages: 229-235 Views: 3672 Downloads: 1667
[01] Rizwan Qaiser Danish, Hailey College of Commerce, University of the Punjab, Lahore, Pakistan.
[02] Sidra Ramzan, Hailey College of Commerce, University of the Punjab, Lahore, Pakistan.
[03] Farid Ahmad, Hailey College of Commerce, University of the Punjab, Lahore, Pakistan.
The aim of this study was to examine the effect of formalization on organizational commitment in the service sector of Pakistan. It further analyzes the interactional role of self-monitoring in the relationship of formalization and organizational commitment. Self-administered survey is conducted for the collection of responses from employees working in service sector. Overall 355 questionnaires were filled and used for further analysis. Structural equation modeling and regression analysis is used to determine the results. Findings suggest that formalization is positively and significantly related to affective, continuance and normative commitment. Self-monitoring also has positive and significant relationship with affective and normative commitment but has no significant relationship with continuance commitment. Results further suggest that self-monitoring moderates the relationship of formalization and organizational commitment. This study is investigated that formalization helps to enhance the organizational commitment and self-monitoring moderates this relation. As a result, this study is endeavors to fill the gap about the lack of academic literature. Results of this study do have practical implications for services sector, especially for their human resources department. It suggests to them that the formalized procedures, rules and regulations increase the organizational commitment whereas, self-monitoring further helps to moderates this relationship in employees of service sector.
Self-monitoring, Formalization, Organizational Commitment
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