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Table of contents
Abstract............................................................................................2
Acknowledgement...........................................................................3
Chap 1.......Introduction..................................................................4
Background......................................................................................6
Research Objective..........................................................................7
Research Question...........................................................................8
Significance of Study.......................................................................9
Scheme of Study..............................................................................16
Chap 2........Literature review........................................................24
Chap 3.......Theoretical Framework.............................................32
Chap 4........Data and Methodology...............................................33
Chap 5.......Analysis........................................................................35
Chap 6........Result and Conclusion................................................36
Chap 7........Refrences......................................................................37
ABSTRACT
Over the past several years, the researcher has compared public and private organizations, using
a variety of approaches to examine whether the performance of public and private organization
was same or not. This study compares the public and private sector organization in terms of
organizational commitment and work value. There are two independent variable that is
organizational commitment and work value and one dependent variable that is organizational
performance. And the result shows that their relationship are positive. The data are collected in
one public sector organization (Pakistan Institute of Medical Sciences) and one private sector
organization (Shifa International Hospital). The questionnaire techniques can be used to collect
the data and the overall sample size are 100. In public sector organization (Pakistan Institute of
Medical Sciences) the size of sample are 50 and in private sector organization (Shifa
International Hospital) the size of sample are also 50. The SPSS (Statistical Package for Social
Sciences) software can be used to analyze the data and the result shows that the organizational
commitment and work value of private sector organization employee are relatively higher than
the organizational commitment and work value of public sector organizations employee that
resulted the increase in the performance of private sector organization as compared to public
sector organization.
Keywords: Organizational Commitment, Work value, Organizational performance.
ACKNOWLEDGEMENT
All praise to Allah, the most merciful, kind and beneficent, and the source of all knowledge,
wisdom within and beyond our comprehension. He is the only God, who can help us in every
field of life. All respect and possible tributes goes to Holy Prophet Mohammad (PBUH), who is
forever guidance and knowledge for all human beings on this earth. This research was
supported/partially supported by [Mam Gulbaher]. We thank our colleagues from who provided
insight and expertise that greatly assisted the research, although they may not agree with all of
the interpretations/conclusions of this paper. We thank public sector organization (Pakistan
Institute of Medical Sciences) and private sector organization (Shifa International Hospital) that
can allow to collect the data.
Chapter 1
INTRODUCTION
BACKGROUND
Public and private sectors have long been a topic of interest for many
researchers and academics, even talk shows. Among the past studies like the
New Public Management (NPM) movement (Barzelay 2001; Osborne and
Gaebler 1992) has downplayed sectoral distinctions through its implicit
suggestion that management is management, regardless of sector. The
NPM paradigm has its roots in the business concepts of customer service and
total quality management and in public-choice theory, a branch of economics
that views individuals as self-interested and rational decision makers who
primarily seek to maximize their personal utility ( Argyriades 2003; Borins
2002). The basis for one's psychological attachment to an organization may
be predicated on three independent foundations: (a) compliance or
instrumental involvement for specific, extrinsic rewards; (b) identification or
involvement based on a desire for affiliation; and (c) internalization or
involvement
predicated
on
congruence
between
individual
and
are
less
productive,
than
their
private
sector
counterparts
featuresa100-cupcoffeeurnasitscenterpiece.
(http://home.earthlink.net/~jmarshal/introduction.htm).
Available
federal
at
employees
reported working very hard. Although these findings contradict the prevailing
view of public employees, they are limited in scope.
5
RESEARCH OBJECTIVES
To find the query, either of the two sectors is performing well in comparison
to each other. Also to find either the people perception, "public employees
are underperforming comparing to their counterpart private sector" is reality.
The researchers seek to determine whether there are any significant
differences in public and private sector employees. First researchers seek To
determine whether there are significant differences in what both the sector
employees, public and private seek from their work. The analysis of work
values will guide the researchers to some indication of whether or not
people are attracted to one or the other sector on the basis of their work
values. Secondly, the researchers seek To find the difference between the
commitment level of public and private sector employees. The analysis of
commitment level will guide the researchers to indicate which sector poses
more loyal and committed members. Finally the researcher would want to
see the effect of the two variables, work values and organizational
commitment, on organizational performance.
Summarizing the objective
RESEARCH QUESTIONS
The researcher can compares the performance of public and private sector organization in terms
of organizational commitment and work value. There are two independent variable that is
organizational commitment and work value and one dependent variable that is organizational
performance.
The research question of this study is the following:
SIGNIFICANCE OF STUDY
The Significance of this study was that to determine whether there is any differences on
performance from public sector organization and private sector organization. One of the main
characteristics of the public sector is the large number of formal processes that appear to be
essential to ensure that it functions. The second major subject analyzed in many of the studies in
our sample is the specificity of the objectives of the organizations in both sectors.
Chapter 2
LITERATURE REVIEW
Introduction
Since in Pakistan, it has been observed that so many public institutions (like
PIA, Pakistan Steel Mill, Railway etc) are underperforming in terms of
creating customer value and profit maximizing comparing to the counterpart
private institutions. The aim of this paper is to find the comparison of public
and private sectors employees effects on the organizational performance of
these two sectors public and private.
Public and private sectors have long been a topic of interest for many
researchers and academics, even talk shows. Among the past studies like the
New Public Management (NPM) movement (Barzelay 2001; Osborne and
Gaebler 1992) has downplayed sectoral distinctions through its implicit
suggestion that management is management, regardless of sector. The
NPM paradigm has its roots in the business concepts of customer service and
total quality management and in public-choice theory, a branch of economics
that views individuals as self-interested and rational decision makers who
primarily seek to maximize their personal utility ( Argyriades 2003; Borins
2002). Polls show that the public believes government employees work less
hard and are less productive, than their private sector counterparts
(Volcker,1989,pp.82,91).Talk-show callers complain about road crews leaning
on their shovels and the satirical Monument of the Unknown Government
Employee featuresa100-cupcoffeeurnasitscenterpiece. Available at
(http://home.earthlink.net/~jmarshal/introduction.htm). federal employees
9
reported working very hard. Although these findings contradict the prevailing
view of public employees, they are limited in scope
The research is based on, work value, and level of commitment differences
between public and private sector. Although there are already other
publications that studied these factors of comparison but those are confined
to the American samples. we would study these factors and examine the
sectoral differences within a sample of Pakistan.
A value can be defined as an enduring belief that a specific mode of
conduct or end-state of existence is personally or socially preferable to an
opposite or converse mode of conduct or end-state of existence ( Rokeach
1973, 5)
The higher level of job satisfaction is associated with a higher level of top
proposed by Meyer and Allen (1984; 1997), which categorizes commitment into three distinctive
scales, namely, affective, normative and continuance commitment. The relationship between an
employee and the organization is founded on behaviors bounded by a contract of economic
gains (Becker 1990). Researchers claim engagement has a positive relationship with customer
satisfaction, productivity, profit, employees' retention (Coffman and Gonzalez-Molina, 2002;
Buckingham and Coffman, 1999) and organizational success and profit (Richman, 2006;
Baumruk, 2004). Harter et al. (2002) argue that employee engagement is important for
'meaningful business results and performance in many organizations. Saks (2006) defines
employee engagement as the extent to which an individual is attentive and absorbed in the
performance of his/her roles. He discerned between two types of employee engagement: job
engagement and organizational engagement. Job engagement refers to the extent to which an
individual is actually fascinated in the performance of his/her own individual job role
meanwhile, organizational engagement reflects the extent to which an individual is
psychologically present as a member of an organization. According to May et al (2004)
engagement is most closely associated with the constructs of job involvement and flow
(Csikszentmihalyi 1990). Job involvement is defined as a cognitive or belief state of
psychological identification (Kanungo 1982:342). This differs from engagement in that it is
concerned more with how the individual employs him/her self during the performance of his/her
job. Furthermore, whilst the focus of job involvement is on cognitions, engagement, according to
most definitions, also encompasses emotions and behaviors. According to Holbeche and
Springett (2003), peoples perceptions of meaning with regard to the workplace are clearly
linked to their levels of engagement and, ultimately, their performance. They argue that
employees actively seek meaning through their work and, unless organizations try to provide a
sense of meaning, employees are likely to quit. In comparison of public and private sector
employees, work values and general values. Organizational commitment has long been a topic of
interest for management researchers, and it has been linked to performance (Mowday, Porter, and
Steers 1974; Porter, Crampon, and Smith 1976). Buchanan (1974) argues that the relative lack of
organizational commitment among public sector managers is the result of the weak performanceoutcome link in public management. Because the goals of public agencies are broad and diffuse
rather than specific and tangible, managers in the public sector are less able to gauge the value of
their efforts in meeting overall organizational requirements. Because public managers must often
12
focus on process rather than outcomes, they identify less with the broader goals of their
organization and more with their immediate work. This leads them to be less committed to the
organization's higher-level goals. No significant sector differences were observed in any of the
10 value types proposed by Schwartz's (1992) value model when the effect so f age, gender, and
educational level were controlled for. Zeffane (1994) noted a lack of clear theoretical explanation
for the lower relative organizational commitment among public sector employees. This study
identified differences in the work values of employees in different sectors, qualitative research is
needed to fully interpret and explain the nature and causes of these differences. Of particular
interest is the issue of causality. It is important to know whether work value differences among
employees in different sectors are the result of occupational choices based on existing work
values or the product committed to their organizations than public sector employees. Romzek
(1990) argues that government organizations are at risk of dropping below a critical threshold of
dedicated employees. The results of this study punctuate her warning. Most studies have
concluded that public sector workers are less extrinsically and hence more intrinsically motivated
(Cacioppe and Mock 1984; Crewson 1997). In a comparison of 474 Australian public sector
employees and 944 private sector employees, Zeffane (1994). Moon (2000) found that public
sector managers have a lower level of organizational commitment than do private sector
managers especially in term so f their willingness to expend extra effort. Some other studies,
however, have reported a higher level of commitment among public sector managers or no
difference ( Rainey1 983). Farid( 1997), for example, compared the organizational commitment
of 54 and 43 middle managers from public sector and private sector organizations respectively
and found no significant difference. Commitment to the job (Lee and Olshfski 2002) is at least as
important as commitment to the organization or to the public interest. Individuals enter the
organization with specific skills, desires, and goals, and expect a work setting where they can use
their skills, satisfy their desires, and achieve their goals. To the extent the organization is
perceived as facilitating these ends, organizational commitment is likely to increase. On the other
hand, if the organization is perceived as failing to provide sufficient opportunities along these
lines, organizational commitment is likely to diminish (Steers, 1977). All the dimensions of
organizational climate are positively associated with organizational commitment except the
dimension 'participative management' in the sample organizations. With regard to the ownership,
it can be seen that all the dimensions of climate except 'participative management' and 'training
13
14
Chapter 3
15
THEORETICAL FRAMEWORK
THEORETICAL FRAMEWORK
First, we seek to determine whether there are significant differences in the general values of
public servants employees and private sector employees. This will give us an indication of
whether individuals working in the public service hold a value set that differs from their private
sector counterparts. Second, we seek to determine whether public sector and private sector
employees differ in what they seek from their work. This will provide some indication of
whether employees motivation is on the basis of their work values. Third, we seek to determine
whether employees in the two sectors differ with respect to their level of commitment to their
organizations. This will allow us to determine whether public sector and private sector
organizations vary in their ability to engender feelings of involvement and dedication in their
employees.
16
Independent variable
Dependent variable
Organizational
Commitment
Organizational
performance
Intrinsic
values
Extrinsic
values
Altruistic
values
Work Value
Prestige
values
Social values
HYPOTHESIS
This study compares the performance of public and private sector organization in terms of
organizational commitment and work value. There are two independent variable that is
organizational commitment and work value and one dependent variable that is organizational
performance. Hypothesis of this research are as following
H0: There is no difference in work value and level of commitment between Public and Private
Sector employees.
H1: There is a difference in Work value between Public and Private Sector employee.
H2: There is a comparisons in level of commitment between Public and Private Sector
employees.
17
Chapter 4
18
SOURCES OF DATA
The researcher use primary data source by studying articles and check the relation between
public and private sector employees regarding work value and job performance .The researcher
collect data through questionnaires. Questionnaires often use various measuring scales to obtain
information from the respondents. To obtain the bio data of the respondents, we use nominal
scale as it serves as label or identification such as gender and age, which often does not involve
calculations. To gather respondents' preferences, we use ordinal scale which is used to arrange
objects or alternatives according to their magnitude in an ordered relationship. To obtain
information related to attitude, we use rating scales. Rating asks the respondents to estimate the
magnitude of a characteristic or quality.
The researcher collect data through questionnaires from public sector and private sector
organization and then apply different statistical operation to get result of comparison of public
and private sector employees organizational performance. The researcher collect data for these
three variables work values organizational commitment and general values. For this purpose
19
researcher will also study the literature and then collect the data how these elements are
important for the employees of two different organization.
ESTIMATION METHODOLOGY
Data Collection Method Since this was a descriptive study, therefore, survey and primary data
methods were used to collect the requisite information. Our surveys aimed to determine what
factors are influencing the organization performance of the public and private companies and do
these organizational performance factors differ in terms of sector of employment. In this
connection a self-administered questionnaire was circulated amongst the 50 employees of public
and private companies. The first part of the questionnaire was designed to collect biographical
information that includes gender, age, qualification and job experience. The second part consists
of five major organizational performance scales to be measured regarding the public and private
employees performance in the questionnaire on a five point Likert-scale ranging from 1
=strongly disagree to 5=strongly agree. A convenient sampling technique was used for data
collection.
The statistical program used for the data analyses and presentation of data in this research is
Statistical Package for Social Sciences (SPSS).The descriptive statistics utilized are based on
frequency tables to provide information on key demographic variables in this study. This is
followed with presentation of the inferential statistics based on examination of each hypothesis
formulated for the research. The dependent variables consist of the average ranking of each of
the five job factors (financial rewards, work contents, career development opportunities,
supportive work & social environment, and work-life balance). These variables are labeled as
scale. The independent variables used for the hypothesis testing are factual background data
consisting of sector of employment (Public/Private). They are type of categorical variable.
RESEARCH DESIGN
The research design refers to the overall strategy that you choose to integrate the different
components of the study in a coherent and logical way, thereby, ensuring you will effectively
address the research problem; it constitutes the blueprint for the collection, measurement, and
analysis of data.
20
Purpose of Study:
The purpose of this study is to compare the public and private sector organization with respect to
organizational commitment, work values, general value. This study has exams the work value
and general value and their relationship to organizational performance and the level of
commitment among the employees of public and private sector organization. The employee of
the private sector organization will be more committed to their job and will show higher job
satisfaction as compared to the employees of public sector organization.
Research strategy:
The data for this study were collected using simple random sampling technique. Total 20
questionnaires were personally distributed among the faculty members of the public and private
sector organization. The questionnaires were distributed among the subordinates.
Research interference:
The extent of interference (Intervention) by the researcher with the normal flow of work at the
workplace has a direct bearing (influence/impact) on whether the study undertaken is causal or
Correlational. The researcher tries to manipulate certain variables so as to study the effects of
such manipulation on the dependent variable of interest.
Unit of analysis:
Individual as a unit of analysis. The data can be collected in the individual to the public and
private sector organization. Data will have to be collected from each individual staff member
and the unit of analysis is individual.
Time horizontal:
Time horizontal is the cross sectional because a study can be done in which data
are gathered just once, perhaps over a period of days or weeks or months, in order
to answer a research question.
Study setting:
21
The study setting is the natural environment because we can compare the public and private sector
organization with respect to organizational commitment, work values, general value in natural
environment that provide the accurate results.
POPULATION
This research is based on the population living in Pakistan. Our population for this research is all
the employees of Pakistan whether they were in public or private sector, for our research there is
no age limit no gender discrimination, no income level limit, we consider all the employees of
Pakistan both public and private sector. Individuals that are working in Pakistan Im public or
private sector are our population.
SAMPLE
Researcher have done non-probability sampling. Further in non-probability sampling we cover
judgmental sampling. This is because we want data from the people that are knowledgeable and
can provide more reliable information. Researcher selected 100 employees from both sector, 50
from public and 50 from private sector to conduct the sampling. sampling was collected through
providing questionnaire to the elements. Employees of PIMS and SHIFA hospital were selected
for sampling purpose. PIMS is a public hospital and SHIFA is private sector hospital.
INSTRUMENTS
Researcher used primary data for this research. Data is been collected through the technique of
questionnaires. Questionnaire been filled by the 100 knowledgeable employees, employees been
selected through judgmental sampling technique. Analysis of data has been made in this study
by employing descriptive statistics. The collected data has been fed into the Statistical Package
for Social Sciences (SPSS-Version 20) for computation. To report demographic data, the
22
descriptive statistics included frequency measures such as percentage, mean and standard
deviation. The final sample consisted of 100 employees.
PROCEDURE
The present study has been designed with a view to investigate the satisfaction level of Public
Sector Bank employees and Private Sector employees, to find out the effect of various aspects
(pay and fringe benefits, relation with co-workers supervision, employees empowerment, nature
of job, employees participation, performance appraisal and training and development, etc.) on
job satisfaction. The study covers a Commercial hospital in all, taking two from Public Sector
namely PIMS and one from Private Sector, SHIFA. One hundred employees of selected
Hospitals located at Islamabad been approached to ascertain their views on job satisfaction.
Primary data has been collected from one hundred respondents of different age group, education
level, income and designation. The coverage is adequate keeping in view the nature of the study
and limited resources at the disposal of the respondents. Sampling used in this research is simple
judgmental sampling. The survey conducted on employees of Public Sector Bank and Private
Sector Hospitals. The target audience was doctors, officers and clerks.
23
The diversity of the study is that it involves employees of all age groups and career levels. A
semi structured questionnaire has been used with a number of variables related to job
satisfaction. The following five point Likert scaling technique has been used for obtaining
response on each question: Analysis of determinants of job satisfaction and criteria for coping
patterns of employees is the primary focus of this research. Given the nature of the data and
findings of the study, the statistical tools used were percentage method, discriminate analysis.
Chapter 5
24
Statistics
Gender
Valid
Experience
Age
Occupation
50
50
50
50
1.38
2.16
2.82
1.00
2.00
3.00
Std. Deviation
.490
.817
1.024
Variance
.240
.668
1.049
Missing
Mean
Median
ANALYSIS
DEMOGRAPHIC VARIABLE
Public Sector:
Percent
Valid Percent
Cumulative
Percent
Valid
Male
31
62.0
62.0
62.0
Female
19
38.0
38.0
100.0
Total
50
100.0
100.0
25
In public sector organization the data are collected in 31 for male and 19 for female.
Age
Frequency
Percent
Valid Percent
Cumulative
Percent
Less than 20
Valid
12.0
12.0
12.0
21-30
13
26.0
26.0
38.0
31-40
15
30.0
30.0
68.0
50 above
16
32.0
32.0
100.0
Total
50
100.0
100.0
Experience
Frequency
Percent
Valid Percent
Cumulative
Percent
Valid
13
26.0
26.0
26.0
2-3 Years
16
32.0
32.0
58.0
4-5 Years
21
42.0
42.0
100.0
Total
50
100.0
100.0
13employee are less than 1 year experience. 16 employee are two to three year experience. 21
employee are four to five year experience.
Private Sector:
Statistics
Gender
Age
Occupation
50
50
50
50
Mean
1.42
2.22
2.78
Median
1.00
2.00
3.00
Std. Deviation
.499
.815
1.055
Valid
Experience
Missing
26
Variance
.249
.665
1.114
Gender
Frequency
Percent
Valid Percent
Cumulative
Percent
Valid
Male
29
56.9
58.0
58.0
Female
21
41.2
42.0
100.0
Total
50
98.0
100.0
In private sector organization the data are collected in 29 for male and 21 for female.
Age
Frequency
Percent
Valid Percent
Cumulative
Percent
Less than 20
Valid
15.7
16.0
16.0
21-30
10
19.6
20.0
36.0
31-40
17
33.3
34.0
70.0
50 above
15
29.4
30.0
100.0
Total
50
98.0
100.0
Experience
Frequency
Percent
Valid Percent
Cumulative
Percent
Valid
12
23.5
24.0
24.0
2-3 Years
15
29.4
30.0
54.0
4-5 Years
23
45.1
46.0
100.0
Total
50
98.0
100.0
13 employee are less than 1 year experience. 15 employee are two to three year experience. 23
employee are four to five year experience.
27
DESCRIPTIVE STATISTICS
Public Sector:
Descriptive Statistics
N
Minimum
Maximum
Mean
Std. Deviation
Gender
50
1.36
.485
Experience
50
2.10
.839
Age
50
2.74
1.065
Occupation
Valid N (listwise)
Private Sector:
Descriptive Statistics
N
Minimum
Maximum
Mean
Std. Deviation
Gender
50
1.42
.499
Experience
50
2.22
.815
Age
50
2.78
1.055
Occupation
Valid N (listwise)
28
CORRELATION
Public sector:
Correlations
Organizational
Work Value
Commitment
Pearson Correlation
Organizational Commitment
Sig. (2-tailed)
N
Work Value
.204
.154
50
50
Pearson Correlation
.204
Sig. (2-tailed)
.154
50
50
The organizational commitment and work value are positively correlated in public sector
organization (PIMS)
Private sector:
Correlations
Organizational
Work Value
Commitment
Pearson Correlation
Organizational Commitment
Sig. (2-tailed)
N
.605
50
29
.075
50
Work Value
Pearson Correlation
.075
Sig. (2-tailed)
.605
50
50
The organizational commitment and work value are positively correlated in private sector
organization (SHIFA)
Regression
Public Sector:
Variables Entered/Removeda
Model
Variables
Variables
Method
Entered
Removed
Work Value,
Organizational
Commitment
Mode
Model Summary
a. Dependent Variable:
Performance
Adjusted
R
Std.
Error
of
b. All requested variables entered.
Square
.615
. Enter
.378
Square
.352
Change Statistics
the
R Square
Estimate
Change
Change
6.40156
.378
14.296
df1
df2
Sig. F
Change
47
.000
ANOVAa
Model
Sum of Squares
df
Mean Square
Regression
1171.678
585.839
Residual
1926.056
47
40.980
Total
3097.733
49
F
14.296
Sig.
.000b
Private Sector:
Variables Entered/Removeda
Model
Variables
Variables
Entered
Removed
Method
Work Value,
1
Organizational
Commitment
. Enter
ANOVA
Model
R
R
1 Mode Regression
l
Square
Residual
Adjusted
R Std. Error2of
1238.869
Square
the
77.251
47
Estimate
Total
1316.120
49
.970a
1
.941
.939
1.28204
a. Dependent Variable: Performance
F
Change
376.869 Statistics
619.434
R Square
1.644
Change
df1
.000b
df2
Change
.941 376.869
Predictors:
(Constant),
Work
Value, Organizational
b. a.
Predictors:
(Constant),
Work Value,
Organizational
Commitment
Sig.
Change
2
47
Commitment
The R shows that the Work Value, Organizational Commitment can change the
performance of private sector organization (SHIFA) by .941
2
31
Sig. F
.000
This study compares the public and private sector organization in terms of organizational
commitment and work value. The data are collected in one public sector organization (Pakistan
Institute of Medical Sciences) and one private sector organization (Shifa International Hospital).
The questionnaire techniques can be used to collect the data and the overall sample size are 100.
In public sector organization (Pakistan Institute of Medical Sciences) the size of sample are 50
and in private sector organization (Shifa International Hospital) the size of sample are also 50.
The SPSS (Statistical Package for Social Sciences) software can be used to analyze the data and
the result shows that the organizational commitment and work value of private sector
organization employee are relatively higher than the organizational commitment and work value
of public sector organizations employee that resulted the increase in the performance of private
sector organization as compared to public sector organization. The regression equation shows
that when the employee of private sector organization are more committed and importance to
work value then the performance of organization is changed by .941. And when the employee of
public sector organization are more committed and importance to work value then the
performance of organization is changed by .378.
Conclusion:
The organizational commitment and work value of private sector organization employee are
relatively higher than the organizational commitment and work value of public sector
organizations employee that resulted the increase in the performance of private sector
organization as compared to public sector organization. This research study found that
organizational commitment and work value directly effects the organizational performance. The
significantly strong relationship between set of two independent variable such as organizational
commitment and work value and one dependent variable that is organizational performance.
Whether the employee of private or public sector organization are more committed or more
importance to work value, the performance of organization increases.
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