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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS

COPY RIGHT © 2014 Institute of Interdisciplinary Business Research 118

FEBRUARY 2014

VOL 5, NO 10

THE ROLE OF ORGANIZATIONAL VIRTUOUSNESS

ON THE ORGANIZATIONAL COMMITMENT OF EMPLOYEES

(CASE STUDY: ISLAMIC AZAD UNIVERSITY)

Sedighe Haji Abedi,

Department of Public Administration, yazdscienec and Research Branch, Islamic Azad

University, Yazd, Iran.

Hoseyn Eslami

Faculty member of Islamic Azad University Meybod

Nahid Amrolahi

Abstract

The organizational virtuousness is almost neglected in organizational literature and out of the

focus of practitioners‟ attention. In the other hand, organizational commitment is one of the most

noteworthy issues in managerial researches. To do so this research will investigate the relation

between these two variables in Islamic Azad University. To answer the questions of the research,

we use questionnaires. The results of the research showed that both designed questionnaires

about organizational virtuousness and Organizational Commitment which were taken from Rego

and Alen Meyer's models got an acceptable supported confirm. The results of investigating

relation between variables of the research show that except normative commitment there is a

positive and meaningful correlation between other variables. Moreover, in the estimated

regression model only integrity variable coefficient was estimated meaningful.

Keyword: Organizational Commitment, Normative commitment, Ongoing commitment ,

Affective commitment, Organizational Virtuousness

Introduction

Organizational virtuousness has not received increasing attention in the organizational settings

and there is no growing literature on this topic (arminrgoet al 2011 ). However, some of the

researchers believe that the organizational virtuousness includes the dimensions of the

organizational structures, including the good habits, hopes and some operations such as

compassion, integrity, forgiveness and trust at both the individual and social levels (Cameron et

al, 2004; Bright et al, 2006). Due to the shocks resulted from the financial and ethical crisis at the

global level; the commercial media and the society propose that the organizational virtuousness

at the individual and organizational levels will improve the individual performance and will

increase the organizational efficiency. (Cameron, 2010, George, 2003, Wright and Gudastin,….)

argue that conducting studies about this topic is considered the same as revitalizing the tradition

of forgiveness and virtuousness of the management. Based on Cameron (2003), virtuousness is

tied to what is good to and for the human beings. Therefore, omitting virtuousness from

scientific investigation leaves a void in perceiving the full range of organizational phenomena.

According to Vey (2004), developing and employing organizational virtuousness represent the

hopeful results in the relationship between the performance and the organizational virtuousness.

Many studies about the social capital of the organizations are common in the literature. Knack

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and Keefer (1997) showed that reinforcing trust and social capital result in the improvement of

the job performance and economic growth of the organization. Leana and Van Buren (1999)

found that the social capital provides the chance to describe and legalize the common goals.

Senge (1999) believed that serious relationships within an organization lead to essential effects

on the virtue developments. He also argued that group learning is the process of increasing group

capacities to achieve those results which the members are seeking.

Mashayekhi (2005) suggested that learning is not a function reserved for the management group;

however, the behaviors which define the learning and those behaviors that identify the

productivity are found to be equal. Learning is the main part of the productivity operations.

Simply stated, learning is a new form of operations (Markvart, 2006).

Theoretical Background

Organizational Virtuousness

Virtuousness is a termed used to show the ability or excellence. The virtuous is the manifestation

of the habits, desires and affairs that produce social and personal good (Aristotle, 1999,Cameron,

2003 ،gori,2007). In addition, the moral philosopher and the religious thinkers evaluate the

virtuousness as the main specification (Peterson and Silgman, 2004). Recently, the virtuousness

has been known as the best human characteristic, honorable behavior, human excellence and the

best human aspirations. There are growing literatures about this topic in psychology settings

(viner1993). Based on Adam Smith and George Smile (1950), the virtuousness flourishes based

on the basics of the societies and economies, because the virtuousness is the synonym of the

nature of the ethical regulations which produce social coordination (okselan 1999(. The

virtuousness is associated with the correct element of good citizen (White, 1980), mutual

operation (simel,1950) and stability (Smith, 1976) which requires the life of the society

(Cameron et al, 2004).

The ethical issues might be either considered or ignored. The virtuousnessis one of the main

approaches of business ethics, but it is not a utilitarian approach. There are two specific

dimensions and characteristics in the virtuousness which make it differentce. These dimensions

are the ability in capturing the feelings and paying attention to the individual satisfaction. This

theory rejects those decisions that are made only based on the calculations and logics (Hartman,

1998; Stark, 1993).

The most important dimension of virtue used in the literature is the trust which includes the true

judgment such as reliability and honesty. The level of employees‟ awareness about trust might

impact their organizational trust (Maguir and &Phillips, 2008).

Until recently, the organizational

virtuousness has not been much considered by the organizations and the managers ignored its

significance when confronting with financial and competitive pressures (Manz et al, 2008). The

organizational virtuousness directs individuals to become better citizens, more responsible and

civilized and helps them in having better work ethics (Seligman, 2000).

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Virtuousness has at least five characteristics emerging in an organization (Cameron, 2003):

1. Virtuousness fosters the feeling of goodness and respect of the human.

2. Virtuousness is experienced in terms of emotional, cognitive and behavioral dimensions.

3. Virtuousness creates cooperation and balance in the communications.

4. Virtuousness positively reinforces the deviations.

5. Virtuousness provides mediating services and fosters the flexibility.

Organizational Commitment

Organizational commitment is a significant topic in terms of the job and organizational

dimensions which has been much debated by many of the scholars of organizational behavior

and psychology. This attitude has changed a lot over three decades ago and the most significant

change is associated with the multidimensional attitude to this concept.The organizational

learning is strongly associated with the innovative performance of the productions and includes

the achievement, dissemination and application of the knowledge (Fernandez Mesa, 2012). The

competitive advantage derives from the innovation, creativity and entrepreneur energies of the

individuals. The organizational learning is about the way an organization learns and adapts.

Through the organizational learning, the organizations learn how to improve or change the

existing technology so that the achievement of the competitive advantage facilitates. Failure in

learnings from the change might lead to an inability to remain (Mat CheRezak, 2011).

The existing knowledge about the human resource is a factor for the organizational success and

competitive advantage (Bhatnagar, 2006). Snell et al (1996) concluded that when the employees

possess the knowledge and the ability required by the organization and when they are motivated

to use them, then they might help in learning (Lopez et al, 2005). Job satisfaction is another

effective factor in the organizational success (Allameh et al, 2010). In addition, the individual‟s

success is closely associated with the organizational success (Stumpf, 2009). Working

compensation and job satisfaction increase the performance and productivity (Allameh et al,

2010). The prior studies have shown that the job satisfaction is determined through

organizational culture and structure.

Methodology

Most of the sciences seek to understand the whole dimensions and perceive the surrounding

globe. To become aware of the issues and problems of the social globe, the scientific methods

have changed significantly. These trends and movements caused the application of the scientific

methods for investigating different humanities disciplines. Using an appropriate research method

is one of the characteristics of a scientific study which aims to uncover the realities. Selecting the

appropriate methodology depends on the objectives, nature, subject and executive facilities. The

studies intend to find easy responds to the questions. The present study is an applied study using

descriptive surveys to collect the data.

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Research Model

The research model in chart 1 intends to examine the relationship between the dimensions of the

organizational virtuousness and job commitment of the employees of the Islamic Azad

University of Yazd. The present study investigates the following items:

1. Describing the organizational commitment model of the employees of the Islamic Azad

University of Yazd

2. Describing the organizational virtuousness model of the employees of the Islamic Azad

University of Yazd

3. Investigating the relationship between the dimensions of organizational virtuousness and working

commitment of the employees of the Islamic Azad University of Yazd.

Data Collection Method

DataCollection, Validity and Reliability

The research data are gathered by using the library method and field studies. To collect the data

about the goodness of the model, a questionnaire has been employed. To measure the

organizational commitment, the model of Allen and Meyer is used which is composed of 24

questions developed in terms of three dimensions of affective, continuance and normative

commitments. To measure the organizational virtuousness, the model of rego et al (2011) has

been used. This model is composed of five dimensions, including optimism, trust, compassion,

integrity and forgiveness. The items of the questionnaire are measured by five-point Likert

scale.

The questionnaire has been designed based on the feedbacks of the experts. Therefore, the

questionnaire is found to have an acceptable content validity. In addition to the content validity,

the confirmatory factor analysis has been also examined. The reliability of the questionnaire of

the organizational virtuousness and commitment is estimated by the coefficient of Chronbach‟s

alpha.

Organizational

Excellence

Optimism

Compassion

Trust

Integrity

Forgiveness

Organizational

Commitment

Emotional

commitment

Continuous commitment

Normative

commitment

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Population and Sample

The population of the study constitutes of the employees of the Islamic Azad University of Yazd.

The population composed of 280 employees and the sample is determined to be constituted of

162 individuals. As a result, 180 questionnaires were distributed among the employees and 158

of them were returned back.

Figure 2. Results of confirmatory factor analysis of organizational virtuousness (standard

coefficients and t statistics)

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Findings

The research questionnaire is designed based on the literature review and the standard

questionnaires. To ensure that the factor structure fits the collected data, it is necessary to

conduct confirmatory factor analysis by using LISREL software. The results of the confirmatory

factor analysis are represented in terms of the factor loadings of the indexes and t-values of both

models of organizational commitment and virtuousness.

Figure 3: Results of confirmatory factor analysis model of organizational commitment

(standardized coefficients and statistical )

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Table1: Standard deviation, andmeancross-correlationvariables

Integrity Compassion Trust Optimism Norm Continues Emotional SD M varible

- .706 3.5868 Emotional

- .290** .557 3.2079 Continues

- .355** .633** .765 3.3297 Norm

- .602** .158 .437** .812 3.4751 Optimism

- .378** .293** -.011 .224** 1.407 3.6045 Trust

- .454** .622** .466** .089 .418** .915 3.3669 Compassion

- .606** .432** .557** .556** .136 .476** .779 2.8709 Integrity

.562** .644** .361** .631** .452** .133 .452** .905 3.3722 Forgiveness

**. P < 0.01 The results of the confirmatory factor analysis confirm the fitness of the collected data in both of

the research models. The results of analyzing the conceptual model are provided. Table 1 shows

the standard deviation, mean and correlation of the variables.

The results shown in table1, confirm that the score of “integrity” is lower than the average level.

Generally, the average scores of the organizational commitment and virtuousness in the Islamic

Azad University of Yazd indicate that these variables are satisfactory.

On the other hand, the findings reveal that the affective and normative commitments are

significantly correlated with the total dimensions of the organizational virtuousness at the 99

percent level of significance. However, it is found that the continuance commitment is not

significantly correlated with any of the dimensions of the organizational virtuousness. By

examining the relationship between the dimensions of the organizational commitment, it is

interpreted that these three dimensions are significantly associated. This relationship holds for

the dimensions of the organizational virtuousness. The correlation coefficients indicate that the

highest correlation is attributed to the forgiveness and compassion.

Based on the findings of table 1 and the correlations between the research variables, the

conceptual model of the research is analyzed by LISREL software to identify the direct and

indirect effects. Figures 4 and 5 represent the final model which indicates the relationship

between the variables based on the theoretical framework.

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Figure 4: Standardized coefficients in the structural model.

Figure 5: t-statisticsand significant relationships in the structural model.

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The results (Figure 4 and 5 ) suggests that the model fitness indices were with in acceptable

ranges. Fitness parameters of the final model inTable 2 is presented.The results obtained can be

compared with the range of acceptable acknowledged all fitness parameters in the model were

acceptable range and therefore the model is confirmed.

Table 2: The parameters of the model fitness

FitIndex df

2 SRMR RMSEA GFI AGFI NFI NNFI CFI

Acceptable

range 5 05.0 1.0 9.0 9.0 9.0 9.0 9.0

results 0.404 0.000 0.000 1 0.99 0.99 0.99 1

Structural models of the relationship between organizational excellence and commitment

dimensions were determined.

Table 3: Results of hierarchical regression

Model

Unstandardized

Coefficients

Standardized

Coefficients

t Sig.

Collinearity

Statistics R

Square

Durbin

-

Watso

n B

Std.

Error Beta

Tolerance VIF

1 (Constant) 2.164 .175

12.33

8 .000

.275

2.207

Optimism .347 .049 .525 7.053 .000 1.000 1.000

2 (Constant) 1.934 .177

10.92

0 .000

.350 Optimism .226 .056 .341 4.010 .000 .690 1.450

Integrity .227 .059 .329 3.861 .000 .690 1.450

a. Dependent Variable:

Commitment

Conclusion

The present study aims to examine the relationship between the dimensions of the organizational

virtuousness and organizational commitment of the employees of the Islamic Azad University of

Yazd. The results of the confirmatory factor analysis of the models of organizational

commitment and virtuousness reveal that both of the models have acceptable confirmatory

validity. The averages of the variables showed that all variables, except for the integrity

dimension, have scores higher than average. Among the research variables, “integrity “

dimension of the organizational virtuousness and affective commitment has the highest score.

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This finding confirms that there is a good trust between the organizational personnel of the

higher education institutes in terms of the working environment. After investigating the position

of the research variables, their correlation has been analyzed. The results reveal that the

normative and the affective commitments and optimism, compassion, integrity and forgiveness

are positively correlated. The highest correlation is attributed to the normative commitment and

compassion. By investigating the relationship between the dimensions of the organizational

commitment, it is found that these three dimensions are significantly associated. This

relationship holds true for the dimensions of the organizational virtuousness. The correlation

coefficients of the organizational virtuousness indicate that the highest correlation is for the

forgiveness and compassion. The results represent that, except for the affective commitment, the

other variables have significant positive correlations. Finally, LISREL software is used to

respond to the questions. The results of the goodness of the fit indicate that the following

coefficients are significant.

Table4. Results of path analysis Path Path coefficient statisticT

Optimism-normative 0.37 5.02

Integrity -normative 0.34 4.38 Integrity - affective 0.32 3.61

Forgiveness -

normative 0.25 2.96

These findings reveal that the highest path coefficient is the path of optimism-normative. The

other proposed paths of the conceptual model are found to be insignificant. It shows that there

are positive correlations between the research variables which are resulted from the indirect

effects of the variables. Paying special attention to the religion, ethics and the dimensions of the

organizational virtuousness for appointing the responsibilities will reinforce the social

commitments.

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