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EMPLOYEE EMPOWERMENT
AND ITS RELATION TO
AFFECTIVE COMMITMENT
New World of Work
Eveliene Westgeest
Student nr.: 337965
Thesis Coach: dr. Michaéla Schippers
Co-reader: dr. Peter van Baalen
Date: September, 2011
Master Thesis MSc. Business Administration
Human Resource Management, RSM Erasmus University
i
The author declares that the text and work presented in this Master thesis is original and that
no sources other than those mentioned in the text and its references have been used in creating
this Master thesis.
The copyright of the Master thesis rests with the author. The author is responsible for its
contents. RSM Erasmus University is only responsible for the educational coaching and
beyond that cannot be held responsible for the content.
“For the first time in human history, we now can have the best of both worlds
the economic and scale efficiencies of large organizations, and the human
benefits of small ones: freedom, motivation, creativity, and flexibility.”
- Thomas W. Malone in: The Future of Work (2004) -
ii
Acknowledgments
This thesis is the final challenge that I took up in order to finish my master Human Resource
Management. The moment I am writing this preface makes me look back on the last months,
and on the process that led me to reach my final goal. Finishing this assignment means that I
will no longer be a student at the Erasmus University. The end of my student life also implies
a new starting point with many new challenges ahead. I was able to finish my thesis in only a
few months' time and therefore I would like to thank especially some of my colleagues and
friends who have been supportive.
First of all I would like to thank the Erasmus@work research group for enabling me to
join the New World of Work Research project. Being part of this group increased my
enthusiasm and determination to write my thesis. I owe many thanks to my coach, Dr.
Michaela Schippers ,who stood by me at critical moments during the process of writing my
thesis. I would also like to thank my co-reader Dr. Van Baalen, who reviewed my thesis in a
critical way, while thinking along with me. Writing my master thesis would not have been
possible without the cooperation of Rabobank, I would therefore like to thank the employees
who filled out the questionnaire.
Finally, I would like to thank my family and friends. From the moment of choosing a
topic until the moment I handed in my thesis, they always supported me. Their everlasting
trust encouraged me to persevere and made me believe that this challenge was not impossible
for me.
Eveliene Westgeest
Amsterdam, September 2011
iii
Executive Summary
Empowerment can be of great value for a company and its employees. However, to be able to
benefit most from giving employees empowerment, it is not only important to focus on the
achievements that could be gained by giving employees empowerment, but also to take into
account the possible disadvantages and risks. This study investigates the relations between the
dimensions of empowerment (impact, competence, meaning and self-determination) and
affective commitment. This study also investigates the interactional effects of the dimensions
of empowerment with job engagement and trust in the management on affective commitment.
The research was done among Dutch employees working at the Rabobank. Rabobank
has an internal program which is focused on giving employees more responsibilities and more
autonomy in their work. This program has been implemented gradually, and employees who
were just acquainted with the program have been approached for this study.
The results of this study show two main effects, the first main effect is a marginally
significant one with empowerment meaning and the second one is a significant inverted u-
shaped relationship. Besides significant moderating effects are shown. The results show that
empowerment meaning is positively related to affective commitment. Thus, when an
employee feels his work is meaningful and fits in with his personal ideals, it positively relates
to affective commitment. An inverted u-shaped relation is found between self-determination
and affective commitment. This means that an increase from low to moderate levels of self-
determination is associated with an increase in affective commitment. However, affective
commitment decreases at relatively high levels of self-determination.
In addition to these effects, there are also certain moderating effects. The results show
that job engagement can strengthen or weaken the relationship between empowerment
competence and affective commitment. The highest degree of affective commitment can be
achieved by a low level of competence and a high level of job engagement. The results also
show moderating effects with trust in the management and three dimensions of
empowerment: impact, meaning and competence. When an employee scores low on
empowerment meaning, the degree of identification with organizational goals, and scores high
on trust in the management, this leads to the highest degree of affective commitment. When
the employee has already identified his own goals with those of the organization, trust in the
management does not play a large role. The second interaction to achieve the highest degree
of affective commitment, shows the employee has to feel he has an impact on the
organizational outcome and trusts the management. Finally, a low score on an employee‟s
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competence in combination with a high score on trust in the management causes the highest
score on affective commitment. For these latter two interactions with the dimensions impact
and competence, the degree of trust in the management is especially important when the
employee already has a high score on these dimensions.
Empowering people does not automatically cause benefits for the organization. It is
important to take into account the degree in which employees are empowered, as well as the
role of job engagement and trust in the management.
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Table of Contents
1. Introduction............................................................................................................................... 1
2. Literature................................................................................................................................... 4
2.1 Current environment ......................................................................................................... 4
2.2 Knowledge workers .......................................................................................................... 4
2.3 Empowerment ................................................................................................................... 6
2.4 Affective commitment ...................................................................................................... 8
2.5 Relationship between empowerment and affective commitment ................................... 10
2.6 Extra analysis .................................................................................................................. 11
2.7 Job engagement............................................................................................................... 13
2.8 The interaction between job engagement and empowerment ......................................... 13
2.9 The interaction between job engagement and the dimensions of empowerment............ 14
2.10 Trust in management....................................................................................................... 16
2.11 The interaction between trust management and empowerment...................................... 16
2.12 The interaction between trust management and the dimensions of empowerment......... 16
3. Relevance, Research Goal & Contribution............................................................................. 18
3.1 Relevance........................................................................................................................ 18
3.2 Research goal .................................................................................................................. 19
3.3 Contribution .................................................................................................................... 20
4. Research model and hypotheses ............................................................................................. 21
4.1 Research model............................................................................................................... 21
4.2 Summary of hypotheses.................................................................................................. 21
5. Research methods................................................................................................................... 24
5.1 Sample............................................................................................................................. 24
5.2 Procedure ........................................................................................................................ 24
5.3 Measures ......................................................................................................................... 25
5.3.1 Empowerment................................................................................................................ 25
5.3.2 Affective commitment ................................................................................................... 25
5.3.3 Job engagement ............................................................................................................. 26
5.3.4 Trust in management ..................................................................................................... 26
5.3.5 Control variables............................................................................................................ 26
5.3.6 Summary Descriptives................................................................................................... 27
6. Results..................................................................................................................................... 28
6.1 Factor Analysis ............................................................................................................... 28
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6.2 Correlations..................................................................................................................... 29
6.3 Regression analysis......................................................................................................... 32
6.3.1 Exploring Regression Analysis: Empowerment divided in four dimensions ................ 32
6.3.2 Final Regression Analysis: Empowerment divided in four dimensions........................ 33
6.3.3 Multicollinearity ............................................................................................................ 34
6.4 Hypotheses testing .......................................................................................................... 36
6.4.1 Relationship between empowerment and affective commitment .................................. 36
6.4.2 Relationships between dimensions empowerment and affective commitment ............ 36
6.4.3. Moderating effect of Job engagement .......................................................................... 37
6.4.4. Moderating effect of trust in the management.............................................................. 37
6.4.5. Final results interactions............................................................................................... 39
6.5 Extra analysis .................................................................................................................. 43
7. Discussion............................................................................................................................... 44
8. Conclusion.................................................................................................................................. 47
8.1 Strengths, limitations and future research....................................................................... 49
8.2 Practical implications...................................................................................................... 50
8.2.1 Putting it into practice.................................................................................................... 51
Bibliography................................................................................................................................... 53
Appendix A: Measurements concepts............................................................................................ 57
Appendix B: Explorative Regression Analysis with dependent variable Affective Commitment. 58
Appendix C: Tolerance and VIF values......................................................................................... 59
1
1. Introduction
Imagine, you have a full-time „nine to five‟ job and the office is one hour by car from your
house. Taking the traffic into account, you depart at half past seven in the morning. When you
are lucky, your working day ends at five o‟ clock, but usually the meeting takes longer and
you will not make it on time for dinner. During your car drive you think about the day at the
office and realize you did a great job for the boss, you finished all the tasks your manager
specified for you. However, if you look closer it was a great job for your boss, but are you
really satisfied by performing precisely what your boss wanted you to do? This is not why
you did four years of study! Fortunately, your lovely spouse already heated up your food and
you are exactly on time to watch the evening news. Unfortunately, the children are sleeping
already as it is almost every time on a midweek day. After a while, you get used to it, but this
is obviously not an ideal situation.
Now imagine the situation from a different point of view. You are the manager of an
organization, having a lot of deadlines, impossible to achieve all by yourself. What„s more,
you have the feeling that the expectations of your employees are changing; they seem to want
to solve problems by themselves and do not want to be told in detail what to do day after day.
Sometimes you secretly think of a way to delegate decision making by giving your employees
in the organization some of your responsibilities. But how do you know for sure that they can
manage these responsibilities? Giving employees autonomy in their jobs, but still telling them
how to perform the task in detail and controlling their behavior, does not make a lot of sense.
In the last few decades, a lot has changed for organizations, leadership and employees. In this
rapidly changing environment, in which globalizing organizations have to deal with a lot of
competition, and which is characterized by immense developments in technology, by
employees who attach great importance to self-employment and self-determination and by
organizations‟ processes and rules that are no longer top-down, there is a need for research.
In contemporary economy, concepts like autonomy, empowerment, knowledge
workers, commitment and job engagement are widely used to improve performance in several
ways. Companies and in scientific literature show great differences in their approach to
organization management. There are different kinds of organizations varying for example in
products, in technology facilities, size, workforce and purpose which requires a unique
approach. And even organizations which are very similar to each other may well show a lot of
differences in, for example the delegation of power.
2
Our economy has changed from an industrial economy into a knowledge economy
(Drucker, 1993). During this period a lot has changed, the focus has shifted away from the
manual worker to the knowledge worker. In his book „The future of work‟, Malone (2004)
states that we are in a revolution. In the past it was accepted that people could exercise power
over others in society, and this was also common practice within companies. In the current
revolution mentioned by Malone, personal desires are more important. For example the
knowledge workers attach great importance to personal desires like flexibility, freedom,
creativity and motivation. According to Davenport (2005) knowledge workers are
characterized by their need for a certain degree of autonomy in their work and their
unwillingness to share knowledge. This is because their knowledge can be seen as a
competitive advantage, something that makes a knowledge worker special and valuable for
the organization, which the employee would want to protect. However his unwillingness to
share knowledge also can be caused by a lack of trust. In both cases this leads to a situation in
which employees will not share knowledge in the interest of the organization, but will only
think of their individual interests. The degree in which employees have an energetic and
effective connection with their work activities and see themselves as able to deal completely
with the demands of their job is called engagement (Schaufeli et al, 2002).
In present-day knowledge economy it is important to know how to deal with the needs
and characteristics of the knowledge worker and his degree of job engagement. A concept that
concerns power and preferred autonomy is the concept of empowerment. There is a growing
consensus that employee empowerment can be a source of competitive advantage for
contemporary organizations (Quinn & Spreitzer, 1999). The concept of empowerment may
play an important role in meeting organizations' demands.
One of the outcomes influenced by empowerment is commitment. Commitment refers,
according to Porter et al. (1974), to the strength of an individual's identification with and
involvement in a particular organization. The degree of commitment can positively influence
several organizations‟ outcomes. However, besides this positive image around the concept of
empowerment, is there any chance a company empowers its employees too much? In general,
is there a positive relationship between empowerment and commitment, in which an increase
in empowerment causes an increase in commitment, or is there a chance that this relationship
might change from a certain degree of empowerment? In other words, is there a risk of losing
the employees‟ connection with the company because they are allowed too much
empowerment? Committing the knowledge workers can be of great importance to keep them
focused on the overall goal of the organization so that the knowledge workers will not become
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too individualistic and to make them more willing to share their knowledge and not behave in
a selfish way, which eventually can lead to better overall performance. Prior research has
already shown that empowerment and commitment are related, but could there be variables
that influence this relationship? For example, what is the role of job engagement in this
relationship or the role of trust?
The aim of this thesis is to gain a clear insight into the relation between employees‟
involvement and their identification with the organization, and empowerment to knowledge
workers, taking into account the new (flexible) working environment with its rapidly
changing technologies. In specific, the focus will be on affective commitment, in the sense of
the employee who prefers to stay within the organization. Affective commitment is related to
several beneficial behaviors. As already mentioned it is important to keep the knowledge
worker focused on the overall goal of the organization and besides it is important to keep the
knowledge worker within the organization in order to keep the knowledge. Besides, the
effects of job engagement and trust in the management in this relationship will be examined.
The following research question has been formulated:
How does empowerment influence the employee‟s affective commitment to the organization
and what is the role of job engagement and trust in management in this relationship?
In this thesis first the literature will be discussed related to the study. In addition the
hypotheses are specified. In the third chapter the relevance, the research goal and contribution
are defined. In the fourth chapter the research model and a summary of the hypotheses are
presented. How the model is tested is specified in chapter 5. In chapter 6 the results found in
this research are presented. These main findings and results serve as a basis for a conclusion
and for future research.
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2. Literature
2.1 Current environment
During the transition phase of the industrial economy to the knowledge economy, a lot has
changed. The focus has shifted away from the manual worker to the knowledge worker.
Today‟s society is characterized by individualization and quite some development in
information technology. In the past, people lived in communities. Within these communities
people shared beliefs, standards and values. Gradually this changed and people became more
detached of these communities and consequently more aware of their own interests and
desires. Besides, they became more independent in structuring their life. This trend can be
seen in business life as well, in a way that people are more demanding and attach more value
to freedom, flexibility and creativity (Malone 2004). Besides this change in society,
information technology has developed immensely. This has led to lower communication
costs, has ensured fading boundaries and has made the world smaller and larger
simultaneously. As to knowledge sharing, these developments make the world smaller,
because distance no longer plays an important role, and larger because more knowledge is
available. Increased opportunities to share knowledge have also influenced business life.
When information sharing is easier, organizations can operate outside their boundaries.
Within organizations information technology plays an important role as well. The revolution
in business life dealing with power and control mentioned by Malone (2004) is possible
because of information technology development. Employees or knowledge workers have the
possibility to share more information in a shorter period of time. Drucker (1993) mentioned
the need to pay more attention to knowledge work and knowledge workers influenced by the
development of information technology. He also emphasized that the most important
contribution of management in the 20th
century was the immense fifty-fold increase of the
productivity of the manual worker. In the 21st century the most important contribution needs
to be a similar increase in productivity of the knowledge worker.
2.2 Knowledge workers
In his book „Thinking for a living‟, Davenport (2005) defines knowledge workers as follows:
“Knowledge workers have high degrees of expertise, education, or experience, and the
primary focus of their jobs involves the creation, distribution, or application of knowledge”
(p.10).
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This definition still does not make clear the exact characteristics of a knowledge
worker and how can be determined if an organization has to do with them. According to
Davenport (2005) a knowledge worker can be characterized by six characteristics, listed and
summarized underneath.
1. Knowledge workers like autonomy: Knowledge workers are hired for their
knowledge and are paid for their expertise, experience and education. As a result, they can be
offensive when someone else interferes in his or her area of expertise. However, the
knowledge worker does not want his work to be ignored by others and wants to be informed
about the broader significance of his task. A certain degree of autonomy is preferred.
2. Specifying the detailed steps and flow of knowledge-intensive processes is less
valuable and more difficult than of other types of work: In the first place it is not very useful
to analyze process workflows of a knowledge worker, because another knowledge worker
could perform the same task in a different way. Moreover, it could be very complex in some
cases. Sometimes it is impossible to describe the workflow when the number of variations is
too great.
3. You can observe a lot by watching: It is very hard to describe the working processes
of a knowledge worker, therefore the technique of observation is often used to get a better
insight in the process.
4. Knowledge workers often have good reasons for doing what they do: one needs to
take the workers at their word or deed. Knowledge workers have a certain way of working
and have their reasons for acting like they do.
5. Commitment matters: It is inconceivable for the knowledge worker to achieve a
great performance when he or she is not mentally and emotionally committed to the job. As
noted earlier, the knowledge worker prefers a certain degree of autonomy. A perception of
fairness and giving the knowledge worker a say can foster his commitment.
6. Knowledge workers value their knowledge, and don’t share it easily: To a
knowledge worker, knowledge is his competitive advantage, as something very valuable and
distinctive. Knowing this, a knowledge worker is probably not willing to just share his
knowledge.
In short, managing knowledge workers with the aim of excellent performance,
demands a deliberate approach. Taken into account the preferred autonomy and the required
commitment to the job, attempts should be made to keep the knowledge worker within the
organization. Besides, the unclear work processes and thereby the need for trust in the
6
employee possibly calls for changes in leadership style. Finally, one needs to deal with the
unwillingness of the knowledge worker to share knowledge.
2.3 Empowerment
In his book „The Future of Work‟ Malone (2004) describes the current revolution in business
which involves power and control. There are several ways to deal with power and control in
an organization and it is important to take into account the present environment. In his book,
Malone states that because of the importance of knowledge workers and development in
information technology, decentralization in organizations can be expected. Malone defines
decentralization as “participation of people in making the decisions that matter to them”(P. 5).
The concept of decentralization described by Malone is close to another concept that deals
with power and control, empowerment. According to Liden & Tewksbury (1995)
empowerment is an important construct because it offers the potential to positively influence
outcomes that benefit both individuals and organizations. Besides Quinn and Spreitzer (1999)
mention that there is a growing consensus that employee empowerment can be a source of
competitive advantage for contemporary organizations. The concept of empowerment is
defined in a variety of ways, by a number of researchers.
According to Rodwell‟s analysis (1996) the concept is widely used in society for
several ideologies. In this analysis she describes that the concept of empowerment would
appear to be a process of enabling or imparting power transfer from one individual or group to
another. This means for example that someone gets the right to make a decision while this
right previously belonged to someone else. Spreitzer and Doneson (2005) define the concept
with a focus on employees, and deepen the definition of Rodwell (1996) by stating that
empowering practices allow employees to decide on their own how they will deal with a
problem.
Aside from different definitions of empowerment, the concept is also in several ways
divided in literature. Quinn and Spreitzer (1999) discovered two very different perspectives of
empowerment during interviews in an organization that had started an empowerment
program. The researchers advocate two approaches, a mechanistic approach, referring to a top
down process in which empowerment is about delegating decision making within a set of
boundaries, and an organic approach implying a bottom up process in which empowerment is
seen as a process of risk taking and personal growth.
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Spreitzer and Doneson (2005) review three perspectives used by contemporary
management scholars and practitioners to understand empowerment. First, the social
structural perspective emphasizes the importance of shifting away from organizational
policies and structures that foster powerlessness, toward high involvement practices. Second,
the psychological perspective refers to a set of psychological conditions necessary for
individuals to feel in control of their own destiny and third, the critical perspective argues that
feeling empowered is not the same as being empowered. Taking into account these different
perspectives, empowering people partly appears to be about implementation and facilitating
people and partly about awareness and allowing people time to get used to it. Saying to people
they are empowered, is also not the same as feeling empowered.
In their focus on the psychological perspective of empowerment, which takes into
account the internal processes of the employee, Thomas and Velthouse (1990) mention four
dimensions. Individuals make judgments with respect to various tasks and use them to
interpret their working situation. The four dimensions mentioned by Thomas and Velthouse
are meaning, competence, self-determination and impact. Meaning is the dimension in which
the individual assesses his working activities as meaningful, depending on the degree of fit
between work role or goals and personal beliefs, values and behaviors. Impact is about
making a difference in one's working environment and the extent to which outcomes in work
can be influenced. Competence refers to the belief of one‟s capability to perform work
activities, also called self-efficacy, which is comparable to self-esteem. The dimensions
impact and competence defer in the way that impact focuses on perceived control in the
working environment and competence focuses on control on one‟s work activities (Butts et
al., 2009). Self-determination refers to the sense of autonomy and the degree to which
decisions can be made about how to perform the task. According to Stander and Rothman
(2009) the four dimensions of psychological empowerment create an overall construct of
psychological empowerment. The lack of one of the four dimensions will cause a decrease,
but not completely eliminate the overall effect of experienced empowerment. For example, in
the case that someone cannot identify his own goals with the ones of the organization, he
could feel that he can contribute to the goals and outcomes of the organization to a high
degree. In this way, by splitting empowerment into four dimensions, it is possible to examine
the origin of a sense of empowerment.
Research already showed the influence of empowerment on several outcome variables
and in several environments. In a study conducted among staff nurses, empowerment showed
increased levels in trust, which in turn had a positive influence on affective commitment. This
8
research also showed an increased work effectiveness (Laschinger et al, 1999). Previous
research of Jun et al. (2006) and Spreitzer et al. (1997) showed that empowerment has a
significant influence on job satisfaction. The first research showed results in Maquiladoras in
Mexico, locations for off shoring manufacturing. And the research of Spreitzer et al. showed
results in a manufacturing and a service organization sample.
2.4 Affective commitment
According to Suliman and Iles (2000), organizational performance is determined for a
significant part by the level of organizational commitment. Besides, organizational
commitment affects or is related to other outcomes, like employees‟ absenteeism (Sagie,
1998) and turnover (Somers, 1995). In literature commitment is defined in many ways. Porter
et al. (1974) describe commitment as “the strength of an individual's identification with and
involvement in a particular organization” (p. 604). Building on this definition, following the
article of Allen and Meyer (1990) organization commitment emphasizes the attachment to an
employing organization, including its goals and values and thereby define it as a mindset.
This mindset or psychological state concerns the employee‟s relationship with the
organization. In this article organization commitment is divided in three components;
affective commitment, continuance commitment and normative commitment. First, affective
commitment refers to the “employees‟ emotional attachment to, identification with and
involvement in, the organization” (p.1) or to the “employees' emotional bond to their
organization” (Rhoades et al, 2001, p.825). Secondly, continuance commitment refers to the
recognition of costs when leaving the organization. Kanter (1968, p. 504) defines continuance
commitment as “profit associated with continued participation and a cost associated with
leaving“ and thus the importance and the benefits of remaining within the organization.
According to Meyer and Allen (1990) both components or views cause a decrease in leaving
the organization, but affective commitment is about the employee's wish to be part of the
organization and wants to stay in the organization and continuance commitment is about the
need to stay within the organization. Finally, normative commitment is about the obligation of
staying with the organization from a moral point of view. In their article on lifetime
commitment, Marsh and Manaari (1977) define this to be a sense of moral duty to stay within
the organization, independent of the satisfaction the employee gains by it. Allen and Meyer
(1990) use this definition for explaining normative commitment. In their concept, there is
again a link with turnover, but here it concerns a sense of expectation.
9
The insights mentioned above about commitment are important, because they show in
which ways employees can be committed to the organization. When viewing the meta-
analysis conducted by Meyer et al. (2002), we can draw the overall conclusion that the
strongest correlations exist between affective commitment and the outcome variables. In this
analysis the three components are examined on turnover and withdrawal cognition,
absenteeism, job performance, organizational citizen behavior, and finally stress and work-
family conflict. For all these outcomes the correlation with affective commitment is
considered the strongest. Work behaviors like attendance, job performance and organizational
citizen behavior have the strongest positive relationship with affective commitment, followed
by normative commitment. Continuance commitment is not positively related to these
variables, but is unrelated or negatively related to these behaviors.
Apart from the results of this meta-analysis, other research also showed some positive
relations: Affective commitment is assumed to be positively related to behaviors that are
beneficial to the organization such as performance, attendance, and staying with the
organization (Mathieu & Zajac, 1990; Meyer & Allen, 1997; Mowday, Porter, & Steers,
1982; Randall, 1990).
When viewing the three above mentioned components of commitment, we assume that
empowerment will especially influence the affective component or the normative component
of commitment. The affective component because research already showed a positive relation
between empowerment and affective commitment (Laschinger et al., 1999). Also a
relationship between empowerment and job satisfaction has been demonstrated (Jun et al.,
2006; Spreitzer et al., 1997). Job satisfaction is defined here as the degree to which an
employee is proud of his or her company, and satisfied with the job. A relation between
empowerment and normative commitment can be expected because of a sense of obligation
caused by empowering the employee, for example when he is given more autonomy. A
relation between empowerment and continuance commitment is less obvious, because the
degree of continuance commitment depends on the need to stay in the organization and is
assumed not to be caused by empowerment. It can be very important to „hold‟ people within
the organization, working toward the same goal and achieving a good performance. For this
research there will be a focus on the relation between empowerment and affective
commitment, because of the strongest correlations found with desired outcomes (Meyer et al.,
2002). There will be examined how psychological empowerment is related to affective
commitment.
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2.5 Relationship between empowerment and affective commitment
Regarding the characteristics and desires of the contemporary knowledge workers, the
concept of empowerment may play an important role by meeting their demands. One of the
outcomes influenced by empowerment is commitment. Previous research of Avolio et al.
(2004) already showed this relationship. In this research also is mentioned that empowered
employees are more willing to reciprocate with higher levels of commitment. In the research a
definition of organization commitment is used from Mowday et al. (1982). In their research
they define the concept as “the relative strength of an identification and involvement in a
particular organization” (1982, p.27). In another research of Laschinger et al. (1999) the
relationship between empowerment and affective commitment, in which trust plays an
important role, has already been shown. Does this relationship still exist in the contemporary
competitive and rapidly changing working environment, in which there is an increase in
knowledge workers?
H1: A relationship is expected between empowerment and affective commitment.
When we split the concept of empowerment up into the four dimensions specified by
Thomas and Velthouse (1990) we expect three relationships to be positive. First, we expect a
positive relationship between empowerment impact and affective commitment. Previous
research has not shown the relationship between impact and affective commitment. However,
Ashforth (1990) argues that fostering a sense of control can stimulate involvement. It may be
assumed that when an employee feels that he really contributes to department goals, affective
commitment will be higher.
H2A: People who score high on empowerment impact, will score high on affective
commitment.
The dimension meaning is also assumed to be related to affective commitment. A
positive relation is expected between empowerment meaning and affective commitment.
Spreitzer (1995) and Liden et al. (2000) already showed a positive relationship between the
dimension meaning and organizational commitment. When an employee feels the work is
very meaningful and fits in with his personal ideals, a higher score of affective commitment
can be expected.
11
H2B: People who score high on empowerment meaning will score high on affective
commitment.
We do not know how empowerment competence will influence affective commitment.
On the one hand it might have a positive influence on the variable, because a feeling of
competence and confidence of one‟s capabilities to perform work activities can cause a sense
of willingness to stay in the organization and may motivate the employee to discuss the
organization with people from outside, influencing the degree of affective commitment. On
the other hand a strong belief in one‟s capabilities can also cause a sense of prevalence or
over-confidence. This independence may create a certain distance to the organization.
H2C: A relationship between empowerment competence and affective commitment is
expected.
The fourth dimension of empowerment is self-determination and is expected to be
positively related to affective commitment. Previous research has not indicated a relationship
between self-determination and affective commitment. However, Ashforth (1989), showed
that powerlessness, defined as “a lack of autonomy and participation” (P.207), is related to
work alienation. Thereby, when an employee feels he can decide on his own how to perform
his tasks, this can cause a sense of reciprocity, which probably causes a higher degree of
affective commitment.
H2D: A positive relationship between empowerment self-determination and affective
commitment is expected.
2.6 Extra analysis
Extra attention is paid to the last hypothesis formulated to describe a relation between self-
determination and affective commitment. Self-determination refers to the sense of autonomy
and the degree to which decisions can be made on how to perform a certain task. Affective
commitment subsequently refers to the employee‟s emotional attachment to, identification
with and involvement in, the organization. When it is assumed that reciprocity comes into
play by giving employees autonomy in their tasks causing a sense of self-determination, a
positive relationship with affective commitment can be expected. However, another approach
12
might also be possible. In this approach an inverted u-shaped relationship is expected. If the
degree of employees‟ self-determination is very low, because there is no opportunity for the
employees to make decisions about how to perform the task on their own, employees are
unlikely to be committed in an affective way to the organization. Contrary, if the degree of
employees‟ self-determination is very high, because they have the opportunity to decide a lot
of things on their own, a certain distance to the organization could arise, which could
influence the degree of affective commitment to the organization in a negative way. Finally,
affective commitment of employees will probably be highest, when the degree of self-
determination is moderate. This is not supported by any literature so far, but in this study the
inverted u-shaped relationship will be assumed.
H2D*: The relation of empowerment self-determination and affective commitment shows an
inverted u-shaped curve. When there is a moderated degree of self-determination affective
commitment will be high; when the level of self-determination is low or high, the relation with
affective commitment will be low.
An example of an inverted u-shaped relationship is shown in figure 2.1. The relationship
starts out to be positive, but on a certain degree, this relation is changing into a negative one.
For the relation between self-determination and affective commitment it is expected that from
a low level up to a moderate level of self-determination, the relation with affective
commitment is positive. Subsequently, the relation changes into a negative one.
Figure 2.1: Inverted u-curved relationship
13
2.7 Job engagement
Following Robinson et al (2004), researchers at the institute for employment studies (IES),
engagement is large in the consultancy market, but there is a lack of academic research in this
area. IES declares that engagement brings clear business benefits, but that raising and
maintaining certain engagement levels means making an effort, taking time and doing an
investment. In academic literature, engagement is defined in different ways. Kahn (1990)
describes personal engagement and personal disengagement as “behaviors by which people
bring in or leave out their personal selves during work role performances” (p.694). People
will, when engaged, employ and express themselves physically, cognitively, and emotionally
during role performances and be present in their job role. Schaufeli et al. (2002) define
engagement as the degree in which employees have an energetic and effective connection
with their work activities and see themselves as able to deal completely with the demands of
their job. In this article they define the concept from the perspective of the employee as “a
positive, fulfilling, work-related state of mind that is characterized by vigor, dedication, and
absorption” (p.74). In this article these three aspects are characterized as follows: vigor by
energy, dedication by involvement and absorption by attachment to one‟s job. Thus, first
vigor refers to energy, to the energy and willingness to put effort in one‟s work, both in daily
and normal situations and in difficult situations. When there is a lack of vigor, it could be that
workers just work to survive and will not achieve results in a difficult task. Second,
dedication is characterized by involvement in one‟s work, in which enthusiasm,
meaningfulness, inspiration, pride and challenge are experienced. When a worker is not
dedicated, he is probably not willing to signal opportunities for the organization. Finally,
absorption refers to the attachment to one‟s job, to be fully concentrated and hardly able to
detach oneself. A lack of absorption can also have the consequence of suboptimal outcomes,
because of a lack of concentration.
2.8 The interaction between job engagement and empowerment
In an environment in which there is a lot of competition and where employees are
autonomous, it is easier for them to commit themselves to their jobs than to the organization.
Engaging employees to the organization might be very important in a situation in which
employees, knowledge workers, may be at risk of losing the necessary connection with the
organization to perform their jobs. Previous research has shown that engagement is the
antipode of burnout (Schaufeli et al, 2006), leads people to behave altruistically and behave as
14
good team players (Robinson, 2004), and influences company success (Harter et al, 2002).
These are important aspects influencing the performance of the organization.
As already been mentioned, job engagement influences the employee‟s behavior and
attitude. In this research the role of job engagement in the relationship between empowerment
and affective commitment is further examined. Does job engagement strengthen the
relationship between the dimensions of empowerment and affective commitment, or in the
contrary, does it weaken the relationship? Previous research showed a positive relationship
between job engagement and several outcomes, so we expect a change in the relationship
between empowerment and affective commitment when the relationship is moderated by job
engagement.
H3: The relationship between empowerment and affective commitment is moderated by job
engagement.
2.9 The interaction between job engagement and the dimensions of empowerment
In this study, hypotheses are also formulated in order to test interactions between the
dimensions of empowerment and job engagement and the influence on affective commitment.
Previous research has not investigated these relations yet. For this reason, assumptions will be
made and the hypotheses are exploratory. It is plausible to think that the highest affective
commitment will be reached by a high degree of empowerment impact in combination with a
high degree of job engagement. When an employee has the feeling that he can influence the
organizational outcomes by doing his or her job, and besides is very concentrated to do the
job and wants to put a lot of effort in the job, high affective commitment can be expected.
H4A: The positive relation between impact and affective commitment is stronger for
employees which score high on job engagement.
When an employee scores high on the dimension of empowerment meaning, the
moderator job engagement will positively influence the relationship with affective
commitment. The assumption is that a high identification with the organizational goals causes
more satisfaction in work and this in combination with absorption in the job will lead to a
higher affective commitment to the organization. When an employee scores low on the
dimension meaning, we expect a low score on affective commitment, and we do not expect
15
affective commitment to be higher when the employee‟s job engagement is high. On the
contrary, we expect even a lower score on affective commitment in case the employee is very
engaged in his job. This is assumed because the employee does not identify his own goals
with the ones of the organization, which is not really satisfying. Besides he is concentrated to
his work activities and this causes a chance that the employee is not really committed to the
organization and is not really involved with the willingness to stay there.
H4B: The positive relation between meaning and affective commitment is stronger for
employees which score high on job engagement. This is only the case when an employee
already scores high on empowerment meaning.
The direction of the hypothesis set up to test the direct relationship between
empowerment competence and affective commitment is not mentioned. Because we do not
know if a high degree of competence is likely to cause a distance to the organization, or on the
contrary, a willingness to stay in the organization, we do not know for sure what happens
when the moderation occurs. We assume the relationship in both cases is influenced by job
engagement.
H4C: The relationship between competence and affective commitment will be moderated by
job engagement.
In the direct hypothesis, a positive relationship between empowerment self-
determination and affective commitment is expected. When an employee has the feeling he
can determine the way he performs his tasks, and he is very engaged in his job as well, there
is a chance a certain distance arises between the employee and the organization. For this
hypothesis we assume the positive direct relationship changes into a negative one when the
moderator job engagement comes into play.
H4D: The interaction between self-determination and job engagement causes a negative
influence on affective commitment.
16
2.10 Trust in management
Trust is defined by Mayer & Davis (1995) as “the willingness of a party to be vulnerable to
the actions of another party based on the expectation that the other will perform a particular
action important to the trustor, irrespective of the ability to monitor or control that other
party.” (P.712) In this research it refers to the willingness of the employee to trust the
management in their actions. Previous research by Konovsky and Pugh (1994) has already
shown that trust in supervisors was positively related to organizational citizen behavior.
Furthermore, research by Whitney (1994) has shown that trust in organizational authorities
influenced subordinates' attitudes and behaviors. Being aware of the competitive environment
and the characteristics of knowledge workers and their unwillingness to share knowledge, it is
assumed in this research that trust in management can influence the relationship between
empowerment and affective commitment. Besides, research by Allen and Meyer (1990) has
already shown a strong correlation between dependability and affective commitment (p.61).
Dependability is defined here as the degree in which the organization can be trusted to behave
as it said it would.
2.11 The interaction between trust management and empowerment
We expect that the degree of trust in management will influence the relationship between
empowerment and affective commitment. In specific, we assume the relationship between
empowerment and affective commitment will be moderated by trust in the management.
H5: The relationship between empowerment and affective commitment is moderated by trust
in the management. In such a way that, when trust in management is high, the relationship
between empowerment and affective commitment will be stronger.
2.12 The interaction between trust management and the dimensions of empowerment
Hypotheses are also formulated in order to test interactions between the dimensions of
empowerment and trust in the management on affective commitment. An interaction effect
between empowerment impact and trust in management is expected. It is assumed that when
an employee feels he has a lot of influence on the organizational outcomes and trusts the
management, this could improve affective commitment. However, we assume the interaction
effect of a high degree of trust in management is stronger for an employee scoring low on
impact.
17
H6A: The positive relation between impact and affective commitment is enhanced when
employees are high on trust in management. This effect is stronger when empowerment
impact is low than when empowerment impact is high.
When an employee can identify his personal goals and ideals with those of the
organization, the trust in management will play a less important role in the degree of affective
commitment than in case the employee cannot identify his personal goals and ideals with
those of the organization.
H6B: The positive relation between meaning and affective commitment is enhanced when
employees are high on trust in management. This effect is stronger when empowerment
meaning is low than when empowerment meaning is high.
In the previous hypotheses we did not know for sure how the dimension empowerment
competence would influence affective commitment. When an employee feels very competent
in his or her work, it is assumed that an interaction with trust in management would have a
positive influence on affective commitment.
H6C: The interaction between competence and trust in management effects affective
commitment in such a way that affective commitment will be higher when trust in
management is high.
In the direct hypothesis a positive relationship between empowerment self-
determination and affective commitment is expected. In this study it is assumed that self-
determination interacting with trust in management has a positive influence on affective
commitment.
H6D: The positive relation between self-determination and affective commitment is stronger
for employees which are high on trust in management. This effect is stronger when
empowerment self-determination is low than when empowerment self-determination is high.
18
3. Relevance, Research Goal & Contribution
3.1 Relevance
In order to remain attractive for the current and the next generation employees, it is important
for organizations to (re)consider their policy in the rapidly changing environment. In the past
it has always been accepted that people could exercise power over the behavior of others. This
not only applies to society, but to companies and their employees as well (Malone, 2004).
During the transition phase of the industrial economy to the knowledge economy, a lot has
changed, and the focus has shifted away from the manual worker to the knowledge worker.
Today‟s society is characterized by increasing individualization and the development
of information technology. The trend of individualization is noticed in business life in the way
that people are more demanding and attach more value to freedom, flexibility and creativity.
Further development of information technology, causing lower communication costs, also
influences business life. When information sharing becomes easier, organizations can also
operate outside their boundaries. Within organizations, information technology also plays an
important role. It has enabled the revolution in business life as to dealing with power and
control, mentioned by Malone (2004). Moreover, it has enabled employees to share more
information in a faster way. Besides, physical presence is hardly necessary anymore. In all, it
has led to a new world of working.
Erasmus@work, a research program by the Erasmus University, started the New
World of Work project. The aim of this project is to gain knowledge of and insight in new
ways of working. Within this project several innovative organizations are participating. Some
of the consequences mentioned by the new ways of working are for example an increase in
access to information, changes in decision making and the flexibility of workplace and
working hours. The knowledge workers' desires, globalizing organizations together with the
flexibility and possibility to work without physical presence led to the contemporary result-
oriented organization. This new way of working also forces organizations to rethink their
policies. A concept that relates to the new ways of working, taking into account control,
current working environment, and the desires of the knowledge workers, is the concept of
empowerment. When people are given empowerment, is there a risk of losing the employees‟
connection with the company? Literature focuses on creativity and productivity, but what
happens to the employees‟ attitude toward the company? Committed employees deliver many
benefits for the organizations. Affective commitment is assumed to be positive related to
behaviors that are beneficial to the organization, such as performance, attendance, and staying
19
with the organization (Mathieu & Zajac, 1990; Meyer & Allen, 1997; Mowday, Porter, &
Steers, 1982, Randall, 1990).
In short, working environments require research, especially when organizations are
result-orientated and people‟s physical presence is not necessary anymore. Business
environment and people‟s attitudes are changing and it is important to be aware of the
consequences.
3.2 Research goal
The new ways of working are fairly new in our current society. For this thesis we want to
obtain better insights in the effects of empowerment on the willingness to stay in the
organization within this new world of working. Empowerment, a concept which is often heard
nowadays, will be the focus of this research. This concept can be divided into four
dimensions: impact, self-determination, meaning and competence. In this research we use
these four dimensions to gain a better insight and to find out how each dimension of
empowerment influences a variable that has to deal with commitment to the organization and
the willingness to stay in the organization, affective commitment. However, apart from the
positive image of the concept of empowerment, could a company empower its employees too
much? In general, is there a positive relationship between empowerment and commitment, an
increase in empowerment causing an increase in commitment, or could this relationship
change when a certain degree of empowerment is reached? In other words, is there a risk of
losing the employees‟ connection with the company caused by allowing them too much
empowerment? As has already been discussed, affective commitment is positively related to
behaviors that are beneficial to the organization, such as performance, attendance, and staying
within the organization. For this research it is an assumption that a high degree of
commitment to the organization is important for the organization‟s outcomes, which is also in
line with previous research. Thereby we assume, taking into account the characteristics of
knowledge workers and the competitive environment of today, that empowerment, trust and
job engagement can play an important role. To reach the research goal the following research
question has been formulated:
How does empowerment influence the employee‟s affective commitment to the organization
and what is the role of job engagement and trust in management in this relationship?
20
3.3 Contribution
This thesis contributes to academic literature as well as to practice. For this thesis we want to
gain better insight into the effect of providing empowerment to knowledge workers, taking
into account the new (flexible) working environment with rapidly changing technologies. By
rapidly changing technologies we mean technologies which enable us to work in a flexible
way, for example by cloud computing, virtual working, etc. As already been stated, we will
assess the four dimensions of empowerment in relation to affective commitment. Previous
research (Laschinger et al., 2000) has shown a positive relation between empowerment and
affective commitment. However, the effect of the dimensions of empowerment on affective
commitment has not been established previously. In addition to testing these direct
relationships, the examination of the effect of job engagement and of trust in management will
contribute to already existing literature about empowerment. With the New World of Work
project, RSM@work focuses on three elements, the three P‟s: People, Planet and Profit. The
first element, People, focuses on the working conditions, flexibility, work/life balance and
employee satisfaction. The second P, Planet, focuses on the impact on the environment and
the last P, Profit, focuses on productivity and creativity. In this thesis we will make a
contribution to the People element. Several relations between empowerment and outcome
variables regarding the People element within the New World of Work have already been
examined. However, the relation between the dimensions of empowerment and affective
commitment has not been examined before.
One of the organizations participating in the project of the New World of Work is
Rabobank. Rabobank has an internal program which holds for the entire organization, called
Rabo Unplugged. The program focuses on giving employees responsibility and autonomy in
job performance. In recent years this program was implemented gradually. Research data has
been collected from employees working at Rabobank. The research will focus on two
departments and three locations of Rabobank. These departments just started the
implementation of the unplugged project. Rabobank will put this thesis to practical use by
gaining a better insight in the dimensions of empowerment, in the influence of job
engagement and in trust in management and in the relationship with affective commitment in
the unplugged environment. It will help to improve managing the employees working at
Rabobank. Besides, other organizations can benefit. It will help to improve managing
employees working in organizations implementing a comparable project.
21
4. Research model and hypotheses
4.1 Research model
The conceptual model represents the relationships and hypotheses mentioned in the literature
review above. In the model below, these hypotheses are summarized.
Figure 4.1: Conceptual Model
4.2 Summary of hypotheses
In this study we first will test the hypotheses set up to test the direct relationships between
empowerment and affective commitment. Next in the test are hypotheses that have been
formulated to examine moderation effects. This paragraph lists the hypotheses mentioned
earlier.
Job
engagement
Trust in
management
Affective
commitment
Empowerment
Competency
Empowerment
Impact
Empowerment
Self-determination
Empowerment
Meaning
+
?
+
?*
+
22
Hypothesis on the relationship between empowerment and affective commitment
 H1: A relationship is expected between empowerment and affective commitment.
Hypotheses on the relationships between the dimensions of empowerment and affective
commitment
 H2 A: People who score high on empowerment impact, will score high on affective
commitment.
 H2 B: People who score high on empowerment meaning will score high on affective
commitment.
 H2 C: A relationship between empowerment competence and affective commitment is
expected.
 H2 D: People who score high on empowerment self-determination, will score high on
affective commitment.
Extra analysis
 H2 D*: The relation of empowerment self-determination and affective commitment
shows an inverted u-shaped curve. When there is a moderate degree of self-
determination, affective commitment will be high; however, when the level of self-
determination is low or high, the level of affective commitment will be low.
Hypothesis on the interaction between job engagement and empowerment
 H3: The relationship between empowerment and affective commitment is moderated
by job engagement.
Hypotheses on the interaction between job engagement and dimensions of empowerment
 H4 A: The positive relation between impact and affective commitment is stronger for
employees which score high on job engagement.
 H4 B: The positive relation between meaning and affective commitment is stronger
for employees which score high on job engagement. This is only the case when an
employee already scores high on empowerment meaning.
 H4 C: The relationship between competence and affective commitment is moderated
by job engagement.
 H4 D: The interaction between self-determination and job engagement causes a
negative influence on affective commitment.
23
Hypotheses on the interaction between trust in management and empowerment
 H5: The relationship between the dimensions of empowerment and affective
commitment is moderated by trust in the management. In such a way that when trust
in management is high, the relationship between empowerment and affective
commitment will be stronger.
Hypotheses on the interaction between trust in the management and dimensions of
empowerment
 H6 A: The positive relation between impact and affective commitment is enhanced
when employees are high on trust in management. This effect is stronger when
empowerment impact is low than when empowerment impact is high.
 H6 B: The positive relation between meaning and affective commitment is enhanced
when employees are high on trust in management. This effect is stronger when
empowerment meaning is low than when empowerment meaning is high.
 H6 C: The interaction between competence and trust in management effects affective
commitment in such a way that affective commitment will be higher when trust in
management is high.
 H6 D: The positive relation between self-determination and affective commitment is
stronger for employees which are high on trust in management. This effect is stronger
when empowerment self-determination is low than when empowerment self-
determination is high.
24
5. Research methods
5.1 Sample
In this thesis, the participants are Dutch Rabobank employees in two divisions: banking
operations, and concern purchase. The research will focus on two departments and three
locations of Rabobank. The first department, Banking operations, consists of Marketing
Support (MaS), Site Management (SiM) and a customer service center. The second
department is a purchase center. Since spring 2010 the Marketing Support and Site
Management sections have moved to a new unplugged environment in Boxtel. However, both
sections have been in the process for as long as two years. Apart from gathering data from
these two sections, also data is collected from employees working in the customer contact
center in Tilburg. These people have not moved to the unplugged building and only have the
opportunity to work in the office. Finally, data was collected from the purchase department in
Eindhoven. In Eindhoven people have been unplugged for a longer period already and have
been working with a lot of unplugged dimensions. The participants included both executing
employees and managers of various educational backgrounds, all varying in age. Besides, the
employees have been working in different employments.
5.2 Procedure
The data used for this research is gathered on one moment in time and with one and the same
survey distributed to the three locations. For this research potential participants included 408
employees that could fill out the survey online. Questionnaires were distributed online by a
member of the department. Each questionnaire had an accompanying letter to explain the
purpose of the questionnaire. Employees were asked to share their experiences and opinions
with the new unplugged working approach and environment of RABO bank. Participation
was voluntary, but because of a low initial response rate, employees were requested to
cooperate. Finally, we were able to gather useful data among 184 participants. When we put a
10 minutes' limit on the time allowed for filling out the survey, we filtered out one participant,
who could not satisfy this requirement.
Table 5.1: Respondents
Department Employees Participants Response rate
Boxtel 80 32 40%
Tilburg 270 116 43%
Eindhoven 58 36 62%
25
5.3 Measures
Each variable has been measured in the survey according to the constructs defined to
represent the particular variable. The entire list of measured items can be found in appendix
A.
5.3.1 Empowerment
The concept of empowerment can be defined as giving someone the right to make a decision
while this right previously belonged to someone else. In this research we will focus on
psychological empowerment, or the employee's perception of empowerment. The degree of
empowerment was measured by using the 12 items in Spreitzer's article (1995). In this article
empowerment is divided into four dimensions. These four dimensions are meaning,
competence, self-determination and impact. The validation of these four dimensions allows us
to accurately examine behaviors that lead the employee to feel empowered (Gómez & Rosen,
2001). Each dimension is measured by three items. An example of one of the items to
measure meaning is: „My work activities have a personal meaning to me‟. The Cronbach‟s
Alpha of meaning is .81. An example of one of the items to measure competence is: „I have
confidence in my ability to do my work‟. The Cronbach‟s Alpha of competence is .69. An
example of one of the items to measure self-determination is: „I can decide for myself how I
should tackle my work‟. The Cronbach‟s Alpha of self-determination is .88. And an example
of one of the items to measure impact is: „I have considerable influence in what goes on
within my department‟. The Cronbach‟s Alpha of impact is .85. The items are measured on a
scale ranging from totally disagree (1) to totally agree (5).
5.3.2 Affective commitment
Affective commitment refers to the employee‟s emotional attachment to, identification with
and involvement in the organization and was measured by using a part of the three component
conceptualization of organizational commitment, composed by Allen and Meyer (1990). De
Gilder et al. (1997) formulated a Dutch version of this construct. In this Dutch version some
items are defined differently. The direct translation into Dutch led to lengthy definitions.
Together with the negatively defined items, this brought down the validity of the scale. The
Dutch writers argue that these items were „bad for the psychometric characteristics‟ (p.97).
For this reason we have used the version of the scale in Dutch. An example of one of the
items to measure affective commitment is: „I really feel as if this organization‟s problems are
26
my own‟. The items are measured on a scale ranging from totally disagree (1) to totally agree
(5). The Cronbach‟s Alpha of affective commitment is .87.
5.3.3 Job engagement
In this research, the concept of job engagement is defined as the degree in which an employee
is attentive and absorbed in his performance of the job. The concept will be measured using
the three aspects absorption, dedication and vigor. In the survey each aspect is measured by
three items formulated by Schaufeli et al. (2006). An example of one of the items to measure
absorption is: „When I am working, I forget everything around me‟. An example of one of the
items to measure dedication is: „My work inspires me‟. And an example to measure vigor is:
„I am full of energy at work‟. Job engagement is evaluated on a scale ranging from totally
disagree (1) to totally agree (5). The Cronbach‟s Alpha of job engagement is .86
5.3.4 Trust in management
In this research, the concept of trust management is defined as employees' perceptions of the
level of their trust in management's honesty and competence to make effective decisions. The
concept of trust management is measured by four items based on the article of Cook and Wall
(1980). An example of an item to measure trust management is: „The management carries out
its tasks efficiently, as far as I can assess‟. The Cronbach‟s Alpha of trust in management is
.83.
5.3.5 Control variables
The control variables used in this research are age and employment. Age is measured by
asking people their age. For this research it is assumed that the age of the employee can have
an influence on the affective commitment to the organization. Research by Finegold et al.
(2002) already indicated a significant influence of age on variables that predict commitment
and the willingness to stay in the company. Employment is measured by asking the question:
„How many hours per week do you spend on your work on average?‟ This concerns the actual
total number of working hours, including overtime, meetings, business travel and education.
This research covered participants with several employments. In this research it is assumed
that the average number of working hours can influence affective commitment. It is plausible
to think that an employment of 16 hours a week in comparison with an employment of 40
hours a week can cause a difference in one‟s identification with and attachment to the
organization.
27
5.3.6 Summary Descriptives
Table 5.2: Summary Descriptives
Variable Nr. Of items M SD Cronbach's Alpha α
Meaning 3 3,77 0,6418 0,809
Impact 3 3,058 0,793 0,847
Competence 3 4,199 0,473 0,689
Self-determination 3 3,469 0,988 0,883
Affective commitment 8 3,482 0,583 0,865
Trust in Management 4 3,62 0,572 0,832
Job engagement 9 3,693 0,517 0,86
28
6. Results
6.1 Factor Analysis
Factor analyses can be used for different purposes. For example, it can be useful to reduce
variables to a smaller number of dimensions or to investigate if items are measuring aspects of
an underlying dimension (Kim & Mueller, 1978). In this research a factor analysis is
performed of empowerment. In table 6.1 the loadings on the four dimensions of
empowerment are shown. In this factor analysis the Varimax rotation method is used. When
using this method it is desired to have an obvious variance between high and low loadings.
Moreover, it is important and desired that variables only have high loadings on one factor.
Following the article of Tinsley and Tinsley (1987) a rule of thumb is factor loadings of .30
are acceptable. Therefore, loadings should be at least .30
When assessing the factor loadings, it is obvious that the factors are not loaded in a
perfectly satisfying way. First, empowerment appears to consists of only three factors instead
of four. In specific, out of this figure emerges no obvious distinction between the dimension
of self-determination and impact. Secondly, one item should be removed from the second
factor measuring the dimension meaning. One item of the dimension impact has a fairly high
value on this factor. Which further meets the requirements of a satisfying factor. Thirdly, the
loadings on competence are not perfectly loaded; one item hardly meets the rule of thumb of
.30. Besides, this item has a much higher value in the fourth factor.
Despite these shortcomings, it is chosen in this research to continue with the four
dimensions of empowerment, containing three items per dimension. The four dimensions of
empowerment are common and widely accepted. Besides, previous research argue that each
of the four dimensions of empowerment adds a unique facet to the individual‟s experience of
empowerment (Thomas & Velthouse, 1990). Finally, we have evaluated the Cronbach
Alpha‟s of the four dimensions. Three dimensions scored above .80, which is satisfying, and
only competence scored .689, which is still acceptable. When removing one item, the
Cronbach‟s Alpha only slightly improves.
29
Table 6.1: Factor analysis Empowerment
Component
1 2 3 4
I have considerable autonomy in determining
how I do my work
,849 ,119 ,084 ,040
I can decide for myself how I should tackle my
work
,858 ,082 ,203 -,092
I have ample opportunity and freedom
regarding the way in which I carry out my
work
,857 ,077 ,199 -,015
My impact on what goes on within my
department is great
,599 ,431 -,145 ,297
I have a great deal of control on what goes on
within my department
,720 ,261 -,089 ,245
I have considerable influence on what goes on
within my department
,757 ,275 -,168 ,271
The work that I do is very important to me ,224 ,858 ,221 -,087
My work activities have a personal meaning to
me
,177 ,707 -,031 ,303
The work that I do means a lot to me ,145 ,843 ,263 -,023
I have confidence in my ability to do my work ,021 ,104 ,801 ,334
I am self-assured in respect of my capabilities
to carry out my work
,151 ,060 ,362 ,824
I have learnt the skills I need for my work ,080 ,200 ,827 ,012
6.2 Correlations
This research aims to investigate the relationship between empowerment and affective
commitment. First, we will evaluate the direct influence of empowerment, divided into
subscales, on affective commitment. In addition, we examine the effect of two moderators,
trust in management and job engagement, on this relationships.
In order to determine if there are linear relationships between the subscales of
empowerment and affective commitment, we evaluated the correlations and their significance.
The correlations between the variables are shown in table 6.2.
30
Table 6.2: Correlations Matrix
Correlations
Variable 1 2 3 4 5 6 7 8 9 10
1 .Age Pearson Correlation
Sig. (2-tailed)
2. Employment Pearson Correlation -,019
Sig. (2-tailed) ,802
3. Meaning Pearson Correlation ,016 ,234
Sig. (2-tailed) ,835 ,001
4. Competence Pearson Correlation ,103 ,232 ,347
Sig. (2-tailed) ,163 ,002 ,000
5. Impact Pearson Correlation -,083 ,421 ,460 ,183
Sig. (2-tailed) ,264 ,000 ,000 ,013
6. Self-determination Pearson Correlation -,097 ,500 ,365 ,243 ,672
Sig. (2-tailed) ,192 ,000 ,000 ,001 ,000
7. Squared self-determination Pearson Correlation -,102 ,507 ,368 ,280 ,676 ,988
Sig. (2-tailed) ,169 ,000 ,000 ,000 ,000 ,000
8. Affective commitment Pearson Correlation ,059 ,135 ,463 ,139 ,187 ,138 ,125
Sig. (2-tailed) ,424 ,068 ,000 ,060 ,011 ,061 ,090
9. Job engagement Pearson Correlation ,049 ,127 ,727 ,230 ,417 ,300 ,320 ,541
Sig. (2-tailed) ,506 ,086 ,000 ,002 ,000 ,000 ,000 ,000
10. Trust management Pearson Correlation -,007 -,149 ,234 ,096 ,183 ,087 ,087 ,392 ,363
Sig. (2-tailed) ,924 ,044 ,001 ,197 ,013 ,241 ,242 ,000 ,000
Direct relationships with dependent variable
Meaning and affective commitment are positively correlated, and significant. Competence
and affective commitment are positively correlated, but marginally significant. This means
that the relationship is significant on 10% instead of on 1% or 5%. Self-determination is
positively correlated to affective commitment, but also marginally significant. Impact and
affective commitment are positively correlated and significant.
Independent variables
The four dimensions of empowerment are positively related and significant. Strong relations
emerge between impact and self-determination as well as between impact and meaning.
Independent variables and job engagement
Job engagement and the dimensions of empowerment are positively related and significant.
31
Independent variables and trust management
Trust in management and the dimensions of empowerment are positively related. However,
not all relationships are significant. The relationship between meaning and trust in
management and the relationship between impact and trust in management proves to be
significant.
Job engagement, trust management and affective commitment
Job engagement is positively related to affective commitment and is significant. Trust in
management and affective commitment have a positive relationship which is also significant.
Control variables
Gender is slightly related in a positive way to affective commitment, but is not significant.
The relation between employment and affective commitment also appears to be positive and
is marginally significant.
Squared self-determination
In the hypotheses an extra hypothesis is set up in order to get a better insight in the dimension
self-determination. In specific, an inverted u-shaped relationship is expected between self-
determination and affective commitment. As expected, positive correlations are found with
the three other dimensions of empowerment. Besides, a marginally significant relationship
with affective commitment is shown in the table.
Some correlations are remarkably high, for example between job engagement and meaning
and between self-determination and impact. In the next paragraph there will be paid more
attention to these observations.
32
6.3 Regression analysis
Regression analysis is used to analyse and to understand how the value of a dependent
variable, in our case affective commitment, changes or is influenced by changing the value of
an independent variable when others are held constant. Before we set up a regression
analysis, the means were centered, this is done to reduce multicollinearity (Aiken & West,
1991).
6.3.1 Exploring Regression Analysis: Empowerment divided in four dimensions
Several regression analyses need to be performed in order to determine a final model. In order
to get a first impression of the relationships between the variables of the dimensions of
empowerment, affective commitment and two moderators, a regression analysis is performed,
which includes all assumptions made for the hypotheses. This model, attached in appendix B,
consists of six steps, and each step adds new variables to the model. In the first step, the
control variables age and employment have been added in order to determine if they would
influence the dependent variable affective commitment. By adding these control variables,
each next step will be controlled for these variables. The model shows in the first step age has
no significant influence (β = .06, P = 0.401) and employment has a marginally significant
influence (β = .14, P = 0.066). This means that the variable is significant on 10% instead of
the desired 1% or 5%.
In the second step the four dimensions of empowerment are added to the model. In this
step employment is no longer marginally significant (β = .06, P = .442). The model shows a
positive causal relationship between the dimension meaning and affective commitment (β =
.49, P = 0.000). The other dimensions of empowerment are negatively related to affective
commitment. However, these relationships are not significant.
In the third model, job engagement and trust management are added to the model. In
this model the control variable employment is significant again (β = .18, P = .016). Besides,
the relation with the dimension meaning remains significant, however the significance
changed from 1% (P= 0.000) to 5% (P = 0.043) and the three other dimensions stay
insignificant. The significance of the two new variables is 1%.
In the fourth model the two-way interactions with job engagement are added to the
model. This step shows one significant interaction, namely the one with the dimension
competence (β = -.19, P = 0.04).
In the fifth model the interactions with trust management are added to the model. The
model shows three significant interactions. The interactions with impact (β = .25, P = 0.007)
33
and meaning (β = -.24, P = 0.004) are significant on 1% and the interaction with competence
(β = .189, P = 0.014) is significant on 5%. The interaction with self-determination is negative
and almost marginally significant (β = -.14, P = 0.108). Finally, the interaction between
competence and job engagement is still significant (β = -.31, P = 0.002).
In the sixth step the squared term self-determination is added to the model. The direct
influence of meaning is changed into a marginally significant influence (β = .19, P = .060).
Besides, the interaction between competence and job engagement is stronger and still
significant (β = -.29, P = .004). Significant interactions still exist for three dimensions of
empowerment. The interaction between self-determination and trust management is less
significant in this step (-.128, P = .144). However, squared self-determination shows a
negative and significant relation with affective commitment (β = -.17, P = .035). This model
has served as an exploring model and for a first impression.
Trust in the management showed to be a very significant moderator in the relation
between the dimensions of empowerment and affective commitment. However, in the
relationship with job engagement, empowerment and affective commitment, only the
interaction between competence and job engagement shows a significant effect. Therefore we
can already reject hypotheses H4A, H4B and H4D. With these results a new model is set up,
in which only the significant interaction between job engagement and competence is
preserved. Furthermore, all interactions, significant and insignificant, with trust in
management remain in the model. Although the insignificant interactions with job
engagement have been removed from the model, the insignificant interaction between self-
determination and trust management is preserved. This is on account of the P-values, which
were very high in the insignificant interactions between job engagement and the dimensions
of empowerment and less high in the interaction between trust management and self-
determination (β = -.13, P = .14). To examine if significant interactions between squared self-
determination and job engagement and between squared self-determination and trust
management exist, two new steps were added to the model. After this, the model was not
significant anymore. For this reason we let these steps out of our final regression model.
6.3.2 Final Regression Analysis: Empowerment divided in four dimensions
The results of the adjusted and final regression are shown in table 6.3. The regression model
consists of 6 steps and each step adds some new variables to the model. In the first step the
control variables age and employment are added to test if they influence the dependent
variable. By adding these variables, each next step will be controlled for these variables. In
34
the first step, the results show no significant influence of the control variable age, however
there is a slightly marginally significant influence of employment (β = .14, P = 0.066).
In the second step, the four dimensions of empowerment are added to the model. The
influence of the control variable employment is not marginally significant anymore. The
model shows that the dimension meaning is significant on 1% (β = .49, P = .000).
In the third step, job engagement and trust management are added to the model. In this
model one of the control variables, employment, is significant on 5 %. Besides, the dimension
meaning is still significant (β = .19, P = .043) and also the newly added variables job
engagement and trust management are significant on 1%.
In the fourth step, the two-way interaction of job engagement and competence is added
to the model and shows to be significant (β = -.16, P = .007).
In the fifth step, two-way interactions with trust management are added and all the
interactions are significant. Only the interaction with self-determination is marginally
significant; this means that the interaction is significant on 10% instead of the desired 1% or
5%. The interaction with competence is significant on 5% and the interactions with meaning
and impact are significant on 1%. Besides, the interaction between competence and job
engagement stays significant on 1% and the direct relation between meaning and affective
commitment also still exists in this model and is significant on 5%.
In the sixth step squared self-determination is added to the model. In this model the
direct relation between meaning and affective commitment is marginally significant (β = .16,
P = .084). The interaction between job engagement and competence still exists. Besides, three
interactions with trust management exist, only the interaction between self-determination and
trust management does not exist anymore. However, there is a significant relation between the
squared self-determination and affective commitment (β = -.15, P = .040).
6.3.3 Multicollinearity
In the correlation matrix high correlations were found for some of the variables. For this
reason the tolerance values are evaluated to check for multicollinearity. The rule of thumb
according to Van Dalen and De Lede (2009) is that there is no reason to suspect
multicollinearity when the tolerance value is above 0.2 and the Variance Inflation Factor
(VIF) is below 5. The final regression model shows a lowest tolerance value of 0.742 and a
highest VIF score of 1.348, for this reason multicollinearity is not plausible. The tolerance
values and the values of the Variance Inflation Factors are available in appendix C.
35
Table 6.3: Regression Model with dependent variable Affective commitment
Variable Model 1 Model 2 Model 3 Model 4 Model 5 Model 6
Beta T Beta T Beta T Beta T Beta T Beta T
Control variables
Age .06 .84 .05 .75 .03 .54 .03 .55 .00 .03 -.01 -0,18
Employment .14ᶴ 1.85ᶴ .06 .77 .18*
2.42 .19**
2.61 .19**
2.73 0.2** 2.85
Empowerment
Meaning .49**
6.20**
.19*
2.04 .21*
2.31 .20*
2.22 .16ᶴ 1.74
Competence -.04 -.48 -.04 -.68 -.06 -.90 -.06 -.98 -.02 -.25
Self-determination -.04 -.40 -.05 -.56 -.05 -.58 -.04 -.49 -.14 -1.44
Impact -.03 -.28 -.13 -1.52 -.13 -1.48 -.14 -1.61 -.12 -1.41
Moderators
Job engagement .36**
3.91 .34**
3.71 .32**
3.54 .36** 3.96
Trust management .28**
4.18 .29**
4.46 .30**
4.51 .28** 4.26
Two-way interaction with job engagement
EngagementXCompetence -.16**
-2.73 -.21**
-3.11 -.18** -2.68
Two-way interaction with trust management
Trust management X Competence .16*
2.21 .16* 2.22
Trust management X Self-determination -.16∫
-1.82 -.13 -1.53
Trust management X Impact .24**
2.78 .23** 2.68
Trust management X Meaning -.19**
-2.67 -.21** -2.9
Squared self-determination -.15* -2.07
R Square .02 .22**
.38**
.40**
.45** .46*
Adjusted R square .01 .20**
.35**
.37**
.40** .42*
Note: ; ᶴp < .10; *p < .05; **p < .01; two-tailed
36
6.4 Hypotheses testing
In this paragraph first the hypotheses are tested to examine the direct effects of empowerment
on affective commitment. After this, the hypotheses are tested to examine the role of two
moderators in the relationships. The hypotheses are tested using the final regression model
(table 6.3).
6.4.1 Relationship between empowerment and affective commitment
Hypothesis 1 predicts a relationship between empowerment and affective commitment. To
examine the direct influence of the dimensions on the dependent variable, not taking into
account the possibility of the influence of moderators, the results of step 2 of the final
regression model are evaluated. The results of this step show no significant influence of the
control variables age and employment. The dimension of meaning is positive and significant
(β=.49, P=0.00). The other three dimensions show a negative beta and are not significant.
This model explains 22% of the total variation in affective commitment (Rsquare =.22, P =
0.00). When we take into account the number of dependent variables, this model explains
20% of affective commitment (adjusted Rsquare = .195, P=0.00). Hypothesis 1 is partly
supported. The assumption was that the dimensions of empowerment would have an effect on
affective commitment, however only the dimension meaning is directly and positively related
to affective commitment, as well as significant.
6.4.2 Relationships between dimensions empowerment and affective commitment
In hypothesis 2 relationships between the dimensions of empowerment and affective
commitment are predicted. Hypothesis 2A predicts a positive relationship between the
dimension impact and affective commitment. In the sixth step the relationship is weak and not
significant (β = -.12, P = 0.16). The table shows no significant causal relation between impact
and affective commitment. Hypothesis 2A is not supported.
Hypothesis 2B predicts a positive relationship between meaning and affective
commitment. The table shows that from the second step up to the sixth step this relationship is
indeed positive and significant. However, the strength of the relationship varies in the
different steps. In the second step the relationship is the strongest (β= .49, P=0.00). In
subsequent steps the relationship is a little weaker and less significant. However, in the sixth
step the relation still is positive and marginally significant (β = .16, P=0.084). Thus,
hypothesis 2B is supported.
37
Hypothesis 2C predicts a relationship between competence and affective commitment.
As this relationship could not be observed, the direction could not be determined either. The
model shows no significant relationship between the dimension competence and affective
commitment. A very weak negative relationship is shown, but this relationship is not
significant (β = -.02, P = 0.805). A significant direct causal relationship is not found between
competence and affective commitment, thus hypothesis 2C is not supported.
In hypothesis 2D a positive relationship between self-determination and affective
commitment is expected. The model shows no significant relationship between self-
determination and affective commitment. In the sixth step the relationship shows to be
negative and very weak, and besides is not significant (β = -.14, P = 0.151). No direct positive
causal relationship is found between the dimension of self-determination and affective
commitment. Thus, hypothesis 2D is not supported.
6.4.3. Moderating effect of Job engagement
In this paragraph the hypotheses set up to test the relations involving job engagement are
discussed. We will test if the relationship between empowerment and affective commitment is
moderated by job engagement. In the sixth step, the model shows job engagement (β = .36, P
= 0.00) is positive and significant. In hypothesis 3 a moderating effect of job engagement is
expected in the relationship with affective commitment. The model only shows a significant
interaction between competence and job engagement on affective commitment. The
hypothesis predicted an overall moderating effect, so that hypothesis 3 can partly be
supported. During the examination of the exploring regression model, no significant
interactions could be found between job engagement and impact, meaning and self-
determination. For this reason only the interaction between job engagement and competence
is discussed.
In hypothesis 4C a moderating effect of job engagement is expected in the relationship
between the dimension of competence and affective commitment. No direct effect between
competence and affective commitment has been found (β = -.02, P = 0.805). In the sixth step
of the regression model, a significant interaction is shown (β = -.18, P = 0.008).
6.4.4. Moderating effect of trust in the management
In this paragraph the hypotheses set up to test relations with trust in management are
discussed. We will test if the relationship between empowerment and affective commitment is
38
moderated by trust in management. In the sixth step, the model shows trust in management (β
= .28, P = 0.00) is positive and significant.
In hypothesis 5 a moderating effect of trust in the management is expected in the
relationship with affective commitment. For three dimensions of empowerment, the model
shows significant interactions with trust in management. Overall we find a significant
influence of the moderator trust in management on the relationship between empowerment
and affective commitment. Therefore hypothesis 5 is supported.
First, the moderating effect of trust in management in the relationship between impact
and affective commitment is discussed. In hypothesis 6A a two-way interaction between
impact and affective commitment is expected. The model shows a two-way interaction effect.
The model shows a negative direct effect, however this relationship is not significant (β = -
.12, P = .16). The sixth model shows a significant two-way interaction between trust in
management and impact (β = .23, P = 0.008).
Secondly, the moderating effect of trust in management in the relationship between
meaning and affective commitment is discussed. In hypothesis 6B a two-way interaction
between meaning and affective commitment is expected. The model shows a two-way
interaction effect. A direct and positive relationship is shown in the second and in each next
step of de model. However, the direct relationship between meaning and affective
commitment differs in the steps. In the second step the direct relationship is stronger and more
significant (β = .49, P = 0.000) than in the sixth step (β = .16, P = 0.084). The model shows in
step six a significant two-way interaction between meaning and trust in the management (β =
-.21, P = 0.004).
The third moderating effect of trust in the management is shown in the relationship
between competence and affective commitment. In hypothesis 6C a moderating effect of trust
in management is expected in the relationship between competence and affective
commitment. The model shows a negative direct effect of competence on affective
commitment, however this relationship is not significant (β= -.016, P=0.805) No direct and
significant effect in the relationship between competence and affective commitment is shown.
In step six an interaction effect between competence and affective commitment is shown in
the model and is significant (β = .16, P = 0.028).
Finally, the moderating effect of trust in management in the relationship between self-
determination and affective commitment is discussed. In hypothesis 6D a moderating effect of
trust in management in expected in the relationship between self-determination and affective
commitment. The model shows a slightly negative direct relationship. However this
39
relationship is not significant (β = -.14, P = 0.151). No direct effect in the relationship is
found. In step 6 an interaction effect is shown in the model, however this interaction is not
significant (β = -.131, P = 0.127).
6.4.5. Final results interactions
The regression model showed one significant interaction between job engagement and the
dimension competence, and in addition the model showed three significant interactions
between trust in management and the dimensions of empowerment. These interactions are
assumed to affect the degree of affective commitment. To get a visual indication of the
effects, the significant interactions are plotted in the figures below. By means of these figures,
the hypotheses will be evaluated.
Hypothesis 4C predicts the relationship between competence and affective
commitment would be moderated by job engagement. The visualization of the significant
two-way interaction of competence and job engagement is shown in figure 6.1. The highest
degree of affective commitment is related to a low score on competence and a high score on
job engagement. This two-way interaction indicates that when an employee does not have the
feeling that he or she is competent and can perform his work activities very well, the degree
of job engagement influences his affective commitment to the organization. In specific, when
the employee is very concentrated in performing his tasks and wants to put a lot of effort in
the job as well, affective commitment will be high. However, when he already experiences a
high degree of competence, his engagement to the job will not influence the relationship with
affective commitment. Hypothesis 4C is supported.
Hypothesis 6A predicts that the positive relation between impact and affective
commitment is stronger for employees who are high on trust in management. It is expected
that this effect is stronger when empowerment impact is low than when empowerment impact
is high. The visualization of the significant two-way interaction of impact and trust in
management is shown in figure 6.2. The highest degree of affective commitment is achieved
when both impact and trust in management are high. This two-way interaction shows that
when an employee feels his or her work activities have significant influence on the
organizational outcomes, the way in which the employee trusts the management influences his
or her affective commitment to the organization. The highest and lowest degree of affective
commitment relate to the employee who feels he has a great influence on the organizational
outcomes. In specific, an employee who scores high on impact and has a high degree of trust
in management, will score high on affective commitment. Conversely, the lowest score on
Westgeest (2011) employee empowerment and its relation t
Westgeest (2011) employee empowerment and its relation t
Westgeest (2011) employee empowerment and its relation t
Westgeest (2011) employee empowerment and its relation t
Westgeest (2011) employee empowerment and its relation t
Westgeest (2011) employee empowerment and its relation t
Westgeest (2011) employee empowerment and its relation t
Westgeest (2011) employee empowerment and its relation t
Westgeest (2011) employee empowerment and its relation t
Westgeest (2011) employee empowerment and its relation t
Westgeest (2011) employee empowerment and its relation t
Westgeest (2011) employee empowerment and its relation t
Westgeest (2011) employee empowerment and its relation t
Westgeest (2011) employee empowerment and its relation t
Westgeest (2011) employee empowerment and its relation t
Westgeest (2011) employee empowerment and its relation t
Westgeest (2011) employee empowerment and its relation t
Westgeest (2011) employee empowerment and its relation t
Westgeest (2011) employee empowerment and its relation t
Westgeest (2011) employee empowerment and its relation t

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Westgeest (2011) employee empowerment and its relation t

  • 1. EMPLOYEE EMPOWERMENT AND ITS RELATION TO AFFECTIVE COMMITMENT New World of Work Eveliene Westgeest Student nr.: 337965 Thesis Coach: dr. Michaéla Schippers Co-reader: dr. Peter van Baalen Date: September, 2011 Master Thesis MSc. Business Administration Human Resource Management, RSM Erasmus University
  • 2.
  • 3. i The author declares that the text and work presented in this Master thesis is original and that no sources other than those mentioned in the text and its references have been used in creating this Master thesis. The copyright of the Master thesis rests with the author. The author is responsible for its contents. RSM Erasmus University is only responsible for the educational coaching and beyond that cannot be held responsible for the content. “For the first time in human history, we now can have the best of both worlds the economic and scale efficiencies of large organizations, and the human benefits of small ones: freedom, motivation, creativity, and flexibility.” - Thomas W. Malone in: The Future of Work (2004) -
  • 4. ii Acknowledgments This thesis is the final challenge that I took up in order to finish my master Human Resource Management. The moment I am writing this preface makes me look back on the last months, and on the process that led me to reach my final goal. Finishing this assignment means that I will no longer be a student at the Erasmus University. The end of my student life also implies a new starting point with many new challenges ahead. I was able to finish my thesis in only a few months' time and therefore I would like to thank especially some of my colleagues and friends who have been supportive. First of all I would like to thank the Erasmus@work research group for enabling me to join the New World of Work Research project. Being part of this group increased my enthusiasm and determination to write my thesis. I owe many thanks to my coach, Dr. Michaela Schippers ,who stood by me at critical moments during the process of writing my thesis. I would also like to thank my co-reader Dr. Van Baalen, who reviewed my thesis in a critical way, while thinking along with me. Writing my master thesis would not have been possible without the cooperation of Rabobank, I would therefore like to thank the employees who filled out the questionnaire. Finally, I would like to thank my family and friends. From the moment of choosing a topic until the moment I handed in my thesis, they always supported me. Their everlasting trust encouraged me to persevere and made me believe that this challenge was not impossible for me. Eveliene Westgeest Amsterdam, September 2011
  • 5. iii Executive Summary Empowerment can be of great value for a company and its employees. However, to be able to benefit most from giving employees empowerment, it is not only important to focus on the achievements that could be gained by giving employees empowerment, but also to take into account the possible disadvantages and risks. This study investigates the relations between the dimensions of empowerment (impact, competence, meaning and self-determination) and affective commitment. This study also investigates the interactional effects of the dimensions of empowerment with job engagement and trust in the management on affective commitment. The research was done among Dutch employees working at the Rabobank. Rabobank has an internal program which is focused on giving employees more responsibilities and more autonomy in their work. This program has been implemented gradually, and employees who were just acquainted with the program have been approached for this study. The results of this study show two main effects, the first main effect is a marginally significant one with empowerment meaning and the second one is a significant inverted u- shaped relationship. Besides significant moderating effects are shown. The results show that empowerment meaning is positively related to affective commitment. Thus, when an employee feels his work is meaningful and fits in with his personal ideals, it positively relates to affective commitment. An inverted u-shaped relation is found between self-determination and affective commitment. This means that an increase from low to moderate levels of self- determination is associated with an increase in affective commitment. However, affective commitment decreases at relatively high levels of self-determination. In addition to these effects, there are also certain moderating effects. The results show that job engagement can strengthen or weaken the relationship between empowerment competence and affective commitment. The highest degree of affective commitment can be achieved by a low level of competence and a high level of job engagement. The results also show moderating effects with trust in the management and three dimensions of empowerment: impact, meaning and competence. When an employee scores low on empowerment meaning, the degree of identification with organizational goals, and scores high on trust in the management, this leads to the highest degree of affective commitment. When the employee has already identified his own goals with those of the organization, trust in the management does not play a large role. The second interaction to achieve the highest degree of affective commitment, shows the employee has to feel he has an impact on the organizational outcome and trusts the management. Finally, a low score on an employee‟s
  • 6. iv competence in combination with a high score on trust in the management causes the highest score on affective commitment. For these latter two interactions with the dimensions impact and competence, the degree of trust in the management is especially important when the employee already has a high score on these dimensions. Empowering people does not automatically cause benefits for the organization. It is important to take into account the degree in which employees are empowered, as well as the role of job engagement and trust in the management.
  • 7. v Table of Contents 1. Introduction............................................................................................................................... 1 2. Literature................................................................................................................................... 4 2.1 Current environment ......................................................................................................... 4 2.2 Knowledge workers .......................................................................................................... 4 2.3 Empowerment ................................................................................................................... 6 2.4 Affective commitment ...................................................................................................... 8 2.5 Relationship between empowerment and affective commitment ................................... 10 2.6 Extra analysis .................................................................................................................. 11 2.7 Job engagement............................................................................................................... 13 2.8 The interaction between job engagement and empowerment ......................................... 13 2.9 The interaction between job engagement and the dimensions of empowerment............ 14 2.10 Trust in management....................................................................................................... 16 2.11 The interaction between trust management and empowerment...................................... 16 2.12 The interaction between trust management and the dimensions of empowerment......... 16 3. Relevance, Research Goal & Contribution............................................................................. 18 3.1 Relevance........................................................................................................................ 18 3.2 Research goal .................................................................................................................. 19 3.3 Contribution .................................................................................................................... 20 4. Research model and hypotheses ............................................................................................. 21 4.1 Research model............................................................................................................... 21 4.2 Summary of hypotheses.................................................................................................. 21 5. Research methods................................................................................................................... 24 5.1 Sample............................................................................................................................. 24 5.2 Procedure ........................................................................................................................ 24 5.3 Measures ......................................................................................................................... 25 5.3.1 Empowerment................................................................................................................ 25 5.3.2 Affective commitment ................................................................................................... 25 5.3.3 Job engagement ............................................................................................................. 26 5.3.4 Trust in management ..................................................................................................... 26 5.3.5 Control variables............................................................................................................ 26 5.3.6 Summary Descriptives................................................................................................... 27 6. Results..................................................................................................................................... 28 6.1 Factor Analysis ............................................................................................................... 28
  • 8. vi 6.2 Correlations..................................................................................................................... 29 6.3 Regression analysis......................................................................................................... 32 6.3.1 Exploring Regression Analysis: Empowerment divided in four dimensions ................ 32 6.3.2 Final Regression Analysis: Empowerment divided in four dimensions........................ 33 6.3.3 Multicollinearity ............................................................................................................ 34 6.4 Hypotheses testing .......................................................................................................... 36 6.4.1 Relationship between empowerment and affective commitment .................................. 36 6.4.2 Relationships between dimensions empowerment and affective commitment ............ 36 6.4.3. Moderating effect of Job engagement .......................................................................... 37 6.4.4. Moderating effect of trust in the management.............................................................. 37 6.4.5. Final results interactions............................................................................................... 39 6.5 Extra analysis .................................................................................................................. 43 7. Discussion............................................................................................................................... 44 8. Conclusion.................................................................................................................................. 47 8.1 Strengths, limitations and future research....................................................................... 49 8.2 Practical implications...................................................................................................... 50 8.2.1 Putting it into practice.................................................................................................... 51 Bibliography................................................................................................................................... 53 Appendix A: Measurements concepts............................................................................................ 57 Appendix B: Explorative Regression Analysis with dependent variable Affective Commitment. 58 Appendix C: Tolerance and VIF values......................................................................................... 59
  • 9. 1 1. Introduction Imagine, you have a full-time „nine to five‟ job and the office is one hour by car from your house. Taking the traffic into account, you depart at half past seven in the morning. When you are lucky, your working day ends at five o‟ clock, but usually the meeting takes longer and you will not make it on time for dinner. During your car drive you think about the day at the office and realize you did a great job for the boss, you finished all the tasks your manager specified for you. However, if you look closer it was a great job for your boss, but are you really satisfied by performing precisely what your boss wanted you to do? This is not why you did four years of study! Fortunately, your lovely spouse already heated up your food and you are exactly on time to watch the evening news. Unfortunately, the children are sleeping already as it is almost every time on a midweek day. After a while, you get used to it, but this is obviously not an ideal situation. Now imagine the situation from a different point of view. You are the manager of an organization, having a lot of deadlines, impossible to achieve all by yourself. What„s more, you have the feeling that the expectations of your employees are changing; they seem to want to solve problems by themselves and do not want to be told in detail what to do day after day. Sometimes you secretly think of a way to delegate decision making by giving your employees in the organization some of your responsibilities. But how do you know for sure that they can manage these responsibilities? Giving employees autonomy in their jobs, but still telling them how to perform the task in detail and controlling their behavior, does not make a lot of sense. In the last few decades, a lot has changed for organizations, leadership and employees. In this rapidly changing environment, in which globalizing organizations have to deal with a lot of competition, and which is characterized by immense developments in technology, by employees who attach great importance to self-employment and self-determination and by organizations‟ processes and rules that are no longer top-down, there is a need for research. In contemporary economy, concepts like autonomy, empowerment, knowledge workers, commitment and job engagement are widely used to improve performance in several ways. Companies and in scientific literature show great differences in their approach to organization management. There are different kinds of organizations varying for example in products, in technology facilities, size, workforce and purpose which requires a unique approach. And even organizations which are very similar to each other may well show a lot of differences in, for example the delegation of power.
  • 10. 2 Our economy has changed from an industrial economy into a knowledge economy (Drucker, 1993). During this period a lot has changed, the focus has shifted away from the manual worker to the knowledge worker. In his book „The future of work‟, Malone (2004) states that we are in a revolution. In the past it was accepted that people could exercise power over others in society, and this was also common practice within companies. In the current revolution mentioned by Malone, personal desires are more important. For example the knowledge workers attach great importance to personal desires like flexibility, freedom, creativity and motivation. According to Davenport (2005) knowledge workers are characterized by their need for a certain degree of autonomy in their work and their unwillingness to share knowledge. This is because their knowledge can be seen as a competitive advantage, something that makes a knowledge worker special and valuable for the organization, which the employee would want to protect. However his unwillingness to share knowledge also can be caused by a lack of trust. In both cases this leads to a situation in which employees will not share knowledge in the interest of the organization, but will only think of their individual interests. The degree in which employees have an energetic and effective connection with their work activities and see themselves as able to deal completely with the demands of their job is called engagement (Schaufeli et al, 2002). In present-day knowledge economy it is important to know how to deal with the needs and characteristics of the knowledge worker and his degree of job engagement. A concept that concerns power and preferred autonomy is the concept of empowerment. There is a growing consensus that employee empowerment can be a source of competitive advantage for contemporary organizations (Quinn & Spreitzer, 1999). The concept of empowerment may play an important role in meeting organizations' demands. One of the outcomes influenced by empowerment is commitment. Commitment refers, according to Porter et al. (1974), to the strength of an individual's identification with and involvement in a particular organization. The degree of commitment can positively influence several organizations‟ outcomes. However, besides this positive image around the concept of empowerment, is there any chance a company empowers its employees too much? In general, is there a positive relationship between empowerment and commitment, in which an increase in empowerment causes an increase in commitment, or is there a chance that this relationship might change from a certain degree of empowerment? In other words, is there a risk of losing the employees‟ connection with the company because they are allowed too much empowerment? Committing the knowledge workers can be of great importance to keep them focused on the overall goal of the organization so that the knowledge workers will not become
  • 11. 3 too individualistic and to make them more willing to share their knowledge and not behave in a selfish way, which eventually can lead to better overall performance. Prior research has already shown that empowerment and commitment are related, but could there be variables that influence this relationship? For example, what is the role of job engagement in this relationship or the role of trust? The aim of this thesis is to gain a clear insight into the relation between employees‟ involvement and their identification with the organization, and empowerment to knowledge workers, taking into account the new (flexible) working environment with its rapidly changing technologies. In specific, the focus will be on affective commitment, in the sense of the employee who prefers to stay within the organization. Affective commitment is related to several beneficial behaviors. As already mentioned it is important to keep the knowledge worker focused on the overall goal of the organization and besides it is important to keep the knowledge worker within the organization in order to keep the knowledge. Besides, the effects of job engagement and trust in the management in this relationship will be examined. The following research question has been formulated: How does empowerment influence the employee‟s affective commitment to the organization and what is the role of job engagement and trust in management in this relationship? In this thesis first the literature will be discussed related to the study. In addition the hypotheses are specified. In the third chapter the relevance, the research goal and contribution are defined. In the fourth chapter the research model and a summary of the hypotheses are presented. How the model is tested is specified in chapter 5. In chapter 6 the results found in this research are presented. These main findings and results serve as a basis for a conclusion and for future research.
  • 12. 4 2. Literature 2.1 Current environment During the transition phase of the industrial economy to the knowledge economy, a lot has changed. The focus has shifted away from the manual worker to the knowledge worker. Today‟s society is characterized by individualization and quite some development in information technology. In the past, people lived in communities. Within these communities people shared beliefs, standards and values. Gradually this changed and people became more detached of these communities and consequently more aware of their own interests and desires. Besides, they became more independent in structuring their life. This trend can be seen in business life as well, in a way that people are more demanding and attach more value to freedom, flexibility and creativity (Malone 2004). Besides this change in society, information technology has developed immensely. This has led to lower communication costs, has ensured fading boundaries and has made the world smaller and larger simultaneously. As to knowledge sharing, these developments make the world smaller, because distance no longer plays an important role, and larger because more knowledge is available. Increased opportunities to share knowledge have also influenced business life. When information sharing is easier, organizations can operate outside their boundaries. Within organizations information technology plays an important role as well. The revolution in business life dealing with power and control mentioned by Malone (2004) is possible because of information technology development. Employees or knowledge workers have the possibility to share more information in a shorter period of time. Drucker (1993) mentioned the need to pay more attention to knowledge work and knowledge workers influenced by the development of information technology. He also emphasized that the most important contribution of management in the 20th century was the immense fifty-fold increase of the productivity of the manual worker. In the 21st century the most important contribution needs to be a similar increase in productivity of the knowledge worker. 2.2 Knowledge workers In his book „Thinking for a living‟, Davenport (2005) defines knowledge workers as follows: “Knowledge workers have high degrees of expertise, education, or experience, and the primary focus of their jobs involves the creation, distribution, or application of knowledge” (p.10).
  • 13. 5 This definition still does not make clear the exact characteristics of a knowledge worker and how can be determined if an organization has to do with them. According to Davenport (2005) a knowledge worker can be characterized by six characteristics, listed and summarized underneath. 1. Knowledge workers like autonomy: Knowledge workers are hired for their knowledge and are paid for their expertise, experience and education. As a result, they can be offensive when someone else interferes in his or her area of expertise. However, the knowledge worker does not want his work to be ignored by others and wants to be informed about the broader significance of his task. A certain degree of autonomy is preferred. 2. Specifying the detailed steps and flow of knowledge-intensive processes is less valuable and more difficult than of other types of work: In the first place it is not very useful to analyze process workflows of a knowledge worker, because another knowledge worker could perform the same task in a different way. Moreover, it could be very complex in some cases. Sometimes it is impossible to describe the workflow when the number of variations is too great. 3. You can observe a lot by watching: It is very hard to describe the working processes of a knowledge worker, therefore the technique of observation is often used to get a better insight in the process. 4. Knowledge workers often have good reasons for doing what they do: one needs to take the workers at their word or deed. Knowledge workers have a certain way of working and have their reasons for acting like they do. 5. Commitment matters: It is inconceivable for the knowledge worker to achieve a great performance when he or she is not mentally and emotionally committed to the job. As noted earlier, the knowledge worker prefers a certain degree of autonomy. A perception of fairness and giving the knowledge worker a say can foster his commitment. 6. Knowledge workers value their knowledge, and don’t share it easily: To a knowledge worker, knowledge is his competitive advantage, as something very valuable and distinctive. Knowing this, a knowledge worker is probably not willing to just share his knowledge. In short, managing knowledge workers with the aim of excellent performance, demands a deliberate approach. Taken into account the preferred autonomy and the required commitment to the job, attempts should be made to keep the knowledge worker within the organization. Besides, the unclear work processes and thereby the need for trust in the
  • 14. 6 employee possibly calls for changes in leadership style. Finally, one needs to deal with the unwillingness of the knowledge worker to share knowledge. 2.3 Empowerment In his book „The Future of Work‟ Malone (2004) describes the current revolution in business which involves power and control. There are several ways to deal with power and control in an organization and it is important to take into account the present environment. In his book, Malone states that because of the importance of knowledge workers and development in information technology, decentralization in organizations can be expected. Malone defines decentralization as “participation of people in making the decisions that matter to them”(P. 5). The concept of decentralization described by Malone is close to another concept that deals with power and control, empowerment. According to Liden & Tewksbury (1995) empowerment is an important construct because it offers the potential to positively influence outcomes that benefit both individuals and organizations. Besides Quinn and Spreitzer (1999) mention that there is a growing consensus that employee empowerment can be a source of competitive advantage for contemporary organizations. The concept of empowerment is defined in a variety of ways, by a number of researchers. According to Rodwell‟s analysis (1996) the concept is widely used in society for several ideologies. In this analysis she describes that the concept of empowerment would appear to be a process of enabling or imparting power transfer from one individual or group to another. This means for example that someone gets the right to make a decision while this right previously belonged to someone else. Spreitzer and Doneson (2005) define the concept with a focus on employees, and deepen the definition of Rodwell (1996) by stating that empowering practices allow employees to decide on their own how they will deal with a problem. Aside from different definitions of empowerment, the concept is also in several ways divided in literature. Quinn and Spreitzer (1999) discovered two very different perspectives of empowerment during interviews in an organization that had started an empowerment program. The researchers advocate two approaches, a mechanistic approach, referring to a top down process in which empowerment is about delegating decision making within a set of boundaries, and an organic approach implying a bottom up process in which empowerment is seen as a process of risk taking and personal growth.
  • 15. 7 Spreitzer and Doneson (2005) review three perspectives used by contemporary management scholars and practitioners to understand empowerment. First, the social structural perspective emphasizes the importance of shifting away from organizational policies and structures that foster powerlessness, toward high involvement practices. Second, the psychological perspective refers to a set of psychological conditions necessary for individuals to feel in control of their own destiny and third, the critical perspective argues that feeling empowered is not the same as being empowered. Taking into account these different perspectives, empowering people partly appears to be about implementation and facilitating people and partly about awareness and allowing people time to get used to it. Saying to people they are empowered, is also not the same as feeling empowered. In their focus on the psychological perspective of empowerment, which takes into account the internal processes of the employee, Thomas and Velthouse (1990) mention four dimensions. Individuals make judgments with respect to various tasks and use them to interpret their working situation. The four dimensions mentioned by Thomas and Velthouse are meaning, competence, self-determination and impact. Meaning is the dimension in which the individual assesses his working activities as meaningful, depending on the degree of fit between work role or goals and personal beliefs, values and behaviors. Impact is about making a difference in one's working environment and the extent to which outcomes in work can be influenced. Competence refers to the belief of one‟s capability to perform work activities, also called self-efficacy, which is comparable to self-esteem. The dimensions impact and competence defer in the way that impact focuses on perceived control in the working environment and competence focuses on control on one‟s work activities (Butts et al., 2009). Self-determination refers to the sense of autonomy and the degree to which decisions can be made about how to perform the task. According to Stander and Rothman (2009) the four dimensions of psychological empowerment create an overall construct of psychological empowerment. The lack of one of the four dimensions will cause a decrease, but not completely eliminate the overall effect of experienced empowerment. For example, in the case that someone cannot identify his own goals with the ones of the organization, he could feel that he can contribute to the goals and outcomes of the organization to a high degree. In this way, by splitting empowerment into four dimensions, it is possible to examine the origin of a sense of empowerment. Research already showed the influence of empowerment on several outcome variables and in several environments. In a study conducted among staff nurses, empowerment showed increased levels in trust, which in turn had a positive influence on affective commitment. This
  • 16. 8 research also showed an increased work effectiveness (Laschinger et al, 1999). Previous research of Jun et al. (2006) and Spreitzer et al. (1997) showed that empowerment has a significant influence on job satisfaction. The first research showed results in Maquiladoras in Mexico, locations for off shoring manufacturing. And the research of Spreitzer et al. showed results in a manufacturing and a service organization sample. 2.4 Affective commitment According to Suliman and Iles (2000), organizational performance is determined for a significant part by the level of organizational commitment. Besides, organizational commitment affects or is related to other outcomes, like employees‟ absenteeism (Sagie, 1998) and turnover (Somers, 1995). In literature commitment is defined in many ways. Porter et al. (1974) describe commitment as “the strength of an individual's identification with and involvement in a particular organization” (p. 604). Building on this definition, following the article of Allen and Meyer (1990) organization commitment emphasizes the attachment to an employing organization, including its goals and values and thereby define it as a mindset. This mindset or psychological state concerns the employee‟s relationship with the organization. In this article organization commitment is divided in three components; affective commitment, continuance commitment and normative commitment. First, affective commitment refers to the “employees‟ emotional attachment to, identification with and involvement in, the organization” (p.1) or to the “employees' emotional bond to their organization” (Rhoades et al, 2001, p.825). Secondly, continuance commitment refers to the recognition of costs when leaving the organization. Kanter (1968, p. 504) defines continuance commitment as “profit associated with continued participation and a cost associated with leaving“ and thus the importance and the benefits of remaining within the organization. According to Meyer and Allen (1990) both components or views cause a decrease in leaving the organization, but affective commitment is about the employee's wish to be part of the organization and wants to stay in the organization and continuance commitment is about the need to stay within the organization. Finally, normative commitment is about the obligation of staying with the organization from a moral point of view. In their article on lifetime commitment, Marsh and Manaari (1977) define this to be a sense of moral duty to stay within the organization, independent of the satisfaction the employee gains by it. Allen and Meyer (1990) use this definition for explaining normative commitment. In their concept, there is again a link with turnover, but here it concerns a sense of expectation.
  • 17. 9 The insights mentioned above about commitment are important, because they show in which ways employees can be committed to the organization. When viewing the meta- analysis conducted by Meyer et al. (2002), we can draw the overall conclusion that the strongest correlations exist between affective commitment and the outcome variables. In this analysis the three components are examined on turnover and withdrawal cognition, absenteeism, job performance, organizational citizen behavior, and finally stress and work- family conflict. For all these outcomes the correlation with affective commitment is considered the strongest. Work behaviors like attendance, job performance and organizational citizen behavior have the strongest positive relationship with affective commitment, followed by normative commitment. Continuance commitment is not positively related to these variables, but is unrelated or negatively related to these behaviors. Apart from the results of this meta-analysis, other research also showed some positive relations: Affective commitment is assumed to be positively related to behaviors that are beneficial to the organization such as performance, attendance, and staying with the organization (Mathieu & Zajac, 1990; Meyer & Allen, 1997; Mowday, Porter, & Steers, 1982; Randall, 1990). When viewing the three above mentioned components of commitment, we assume that empowerment will especially influence the affective component or the normative component of commitment. The affective component because research already showed a positive relation between empowerment and affective commitment (Laschinger et al., 1999). Also a relationship between empowerment and job satisfaction has been demonstrated (Jun et al., 2006; Spreitzer et al., 1997). Job satisfaction is defined here as the degree to which an employee is proud of his or her company, and satisfied with the job. A relation between empowerment and normative commitment can be expected because of a sense of obligation caused by empowering the employee, for example when he is given more autonomy. A relation between empowerment and continuance commitment is less obvious, because the degree of continuance commitment depends on the need to stay in the organization and is assumed not to be caused by empowerment. It can be very important to „hold‟ people within the organization, working toward the same goal and achieving a good performance. For this research there will be a focus on the relation between empowerment and affective commitment, because of the strongest correlations found with desired outcomes (Meyer et al., 2002). There will be examined how psychological empowerment is related to affective commitment.
  • 18. 10 2.5 Relationship between empowerment and affective commitment Regarding the characteristics and desires of the contemporary knowledge workers, the concept of empowerment may play an important role by meeting their demands. One of the outcomes influenced by empowerment is commitment. Previous research of Avolio et al. (2004) already showed this relationship. In this research also is mentioned that empowered employees are more willing to reciprocate with higher levels of commitment. In the research a definition of organization commitment is used from Mowday et al. (1982). In their research they define the concept as “the relative strength of an identification and involvement in a particular organization” (1982, p.27). In another research of Laschinger et al. (1999) the relationship between empowerment and affective commitment, in which trust plays an important role, has already been shown. Does this relationship still exist in the contemporary competitive and rapidly changing working environment, in which there is an increase in knowledge workers? H1: A relationship is expected between empowerment and affective commitment. When we split the concept of empowerment up into the four dimensions specified by Thomas and Velthouse (1990) we expect three relationships to be positive. First, we expect a positive relationship between empowerment impact and affective commitment. Previous research has not shown the relationship between impact and affective commitment. However, Ashforth (1990) argues that fostering a sense of control can stimulate involvement. It may be assumed that when an employee feels that he really contributes to department goals, affective commitment will be higher. H2A: People who score high on empowerment impact, will score high on affective commitment. The dimension meaning is also assumed to be related to affective commitment. A positive relation is expected between empowerment meaning and affective commitment. Spreitzer (1995) and Liden et al. (2000) already showed a positive relationship between the dimension meaning and organizational commitment. When an employee feels the work is very meaningful and fits in with his personal ideals, a higher score of affective commitment can be expected.
  • 19. 11 H2B: People who score high on empowerment meaning will score high on affective commitment. We do not know how empowerment competence will influence affective commitment. On the one hand it might have a positive influence on the variable, because a feeling of competence and confidence of one‟s capabilities to perform work activities can cause a sense of willingness to stay in the organization and may motivate the employee to discuss the organization with people from outside, influencing the degree of affective commitment. On the other hand a strong belief in one‟s capabilities can also cause a sense of prevalence or over-confidence. This independence may create a certain distance to the organization. H2C: A relationship between empowerment competence and affective commitment is expected. The fourth dimension of empowerment is self-determination and is expected to be positively related to affective commitment. Previous research has not indicated a relationship between self-determination and affective commitment. However, Ashforth (1989), showed that powerlessness, defined as “a lack of autonomy and participation” (P.207), is related to work alienation. Thereby, when an employee feels he can decide on his own how to perform his tasks, this can cause a sense of reciprocity, which probably causes a higher degree of affective commitment. H2D: A positive relationship between empowerment self-determination and affective commitment is expected. 2.6 Extra analysis Extra attention is paid to the last hypothesis formulated to describe a relation between self- determination and affective commitment. Self-determination refers to the sense of autonomy and the degree to which decisions can be made on how to perform a certain task. Affective commitment subsequently refers to the employee‟s emotional attachment to, identification with and involvement in, the organization. When it is assumed that reciprocity comes into play by giving employees autonomy in their tasks causing a sense of self-determination, a positive relationship with affective commitment can be expected. However, another approach
  • 20. 12 might also be possible. In this approach an inverted u-shaped relationship is expected. If the degree of employees‟ self-determination is very low, because there is no opportunity for the employees to make decisions about how to perform the task on their own, employees are unlikely to be committed in an affective way to the organization. Contrary, if the degree of employees‟ self-determination is very high, because they have the opportunity to decide a lot of things on their own, a certain distance to the organization could arise, which could influence the degree of affective commitment to the organization in a negative way. Finally, affective commitment of employees will probably be highest, when the degree of self- determination is moderate. This is not supported by any literature so far, but in this study the inverted u-shaped relationship will be assumed. H2D*: The relation of empowerment self-determination and affective commitment shows an inverted u-shaped curve. When there is a moderated degree of self-determination affective commitment will be high; when the level of self-determination is low or high, the relation with affective commitment will be low. An example of an inverted u-shaped relationship is shown in figure 2.1. The relationship starts out to be positive, but on a certain degree, this relation is changing into a negative one. For the relation between self-determination and affective commitment it is expected that from a low level up to a moderate level of self-determination, the relation with affective commitment is positive. Subsequently, the relation changes into a negative one. Figure 2.1: Inverted u-curved relationship
  • 21. 13 2.7 Job engagement Following Robinson et al (2004), researchers at the institute for employment studies (IES), engagement is large in the consultancy market, but there is a lack of academic research in this area. IES declares that engagement brings clear business benefits, but that raising and maintaining certain engagement levels means making an effort, taking time and doing an investment. In academic literature, engagement is defined in different ways. Kahn (1990) describes personal engagement and personal disengagement as “behaviors by which people bring in or leave out their personal selves during work role performances” (p.694). People will, when engaged, employ and express themselves physically, cognitively, and emotionally during role performances and be present in their job role. Schaufeli et al. (2002) define engagement as the degree in which employees have an energetic and effective connection with their work activities and see themselves as able to deal completely with the demands of their job. In this article they define the concept from the perspective of the employee as “a positive, fulfilling, work-related state of mind that is characterized by vigor, dedication, and absorption” (p.74). In this article these three aspects are characterized as follows: vigor by energy, dedication by involvement and absorption by attachment to one‟s job. Thus, first vigor refers to energy, to the energy and willingness to put effort in one‟s work, both in daily and normal situations and in difficult situations. When there is a lack of vigor, it could be that workers just work to survive and will not achieve results in a difficult task. Second, dedication is characterized by involvement in one‟s work, in which enthusiasm, meaningfulness, inspiration, pride and challenge are experienced. When a worker is not dedicated, he is probably not willing to signal opportunities for the organization. Finally, absorption refers to the attachment to one‟s job, to be fully concentrated and hardly able to detach oneself. A lack of absorption can also have the consequence of suboptimal outcomes, because of a lack of concentration. 2.8 The interaction between job engagement and empowerment In an environment in which there is a lot of competition and where employees are autonomous, it is easier for them to commit themselves to their jobs than to the organization. Engaging employees to the organization might be very important in a situation in which employees, knowledge workers, may be at risk of losing the necessary connection with the organization to perform their jobs. Previous research has shown that engagement is the antipode of burnout (Schaufeli et al, 2006), leads people to behave altruistically and behave as
  • 22. 14 good team players (Robinson, 2004), and influences company success (Harter et al, 2002). These are important aspects influencing the performance of the organization. As already been mentioned, job engagement influences the employee‟s behavior and attitude. In this research the role of job engagement in the relationship between empowerment and affective commitment is further examined. Does job engagement strengthen the relationship between the dimensions of empowerment and affective commitment, or in the contrary, does it weaken the relationship? Previous research showed a positive relationship between job engagement and several outcomes, so we expect a change in the relationship between empowerment and affective commitment when the relationship is moderated by job engagement. H3: The relationship between empowerment and affective commitment is moderated by job engagement. 2.9 The interaction between job engagement and the dimensions of empowerment In this study, hypotheses are also formulated in order to test interactions between the dimensions of empowerment and job engagement and the influence on affective commitment. Previous research has not investigated these relations yet. For this reason, assumptions will be made and the hypotheses are exploratory. It is plausible to think that the highest affective commitment will be reached by a high degree of empowerment impact in combination with a high degree of job engagement. When an employee has the feeling that he can influence the organizational outcomes by doing his or her job, and besides is very concentrated to do the job and wants to put a lot of effort in the job, high affective commitment can be expected. H4A: The positive relation between impact and affective commitment is stronger for employees which score high on job engagement. When an employee scores high on the dimension of empowerment meaning, the moderator job engagement will positively influence the relationship with affective commitment. The assumption is that a high identification with the organizational goals causes more satisfaction in work and this in combination with absorption in the job will lead to a higher affective commitment to the organization. When an employee scores low on the dimension meaning, we expect a low score on affective commitment, and we do not expect
  • 23. 15 affective commitment to be higher when the employee‟s job engagement is high. On the contrary, we expect even a lower score on affective commitment in case the employee is very engaged in his job. This is assumed because the employee does not identify his own goals with the ones of the organization, which is not really satisfying. Besides he is concentrated to his work activities and this causes a chance that the employee is not really committed to the organization and is not really involved with the willingness to stay there. H4B: The positive relation between meaning and affective commitment is stronger for employees which score high on job engagement. This is only the case when an employee already scores high on empowerment meaning. The direction of the hypothesis set up to test the direct relationship between empowerment competence and affective commitment is not mentioned. Because we do not know if a high degree of competence is likely to cause a distance to the organization, or on the contrary, a willingness to stay in the organization, we do not know for sure what happens when the moderation occurs. We assume the relationship in both cases is influenced by job engagement. H4C: The relationship between competence and affective commitment will be moderated by job engagement. In the direct hypothesis, a positive relationship between empowerment self- determination and affective commitment is expected. When an employee has the feeling he can determine the way he performs his tasks, and he is very engaged in his job as well, there is a chance a certain distance arises between the employee and the organization. For this hypothesis we assume the positive direct relationship changes into a negative one when the moderator job engagement comes into play. H4D: The interaction between self-determination and job engagement causes a negative influence on affective commitment.
  • 24. 16 2.10 Trust in management Trust is defined by Mayer & Davis (1995) as “the willingness of a party to be vulnerable to the actions of another party based on the expectation that the other will perform a particular action important to the trustor, irrespective of the ability to monitor or control that other party.” (P.712) In this research it refers to the willingness of the employee to trust the management in their actions. Previous research by Konovsky and Pugh (1994) has already shown that trust in supervisors was positively related to organizational citizen behavior. Furthermore, research by Whitney (1994) has shown that trust in organizational authorities influenced subordinates' attitudes and behaviors. Being aware of the competitive environment and the characteristics of knowledge workers and their unwillingness to share knowledge, it is assumed in this research that trust in management can influence the relationship between empowerment and affective commitment. Besides, research by Allen and Meyer (1990) has already shown a strong correlation between dependability and affective commitment (p.61). Dependability is defined here as the degree in which the organization can be trusted to behave as it said it would. 2.11 The interaction between trust management and empowerment We expect that the degree of trust in management will influence the relationship between empowerment and affective commitment. In specific, we assume the relationship between empowerment and affective commitment will be moderated by trust in the management. H5: The relationship between empowerment and affective commitment is moderated by trust in the management. In such a way that, when trust in management is high, the relationship between empowerment and affective commitment will be stronger. 2.12 The interaction between trust management and the dimensions of empowerment Hypotheses are also formulated in order to test interactions between the dimensions of empowerment and trust in the management on affective commitment. An interaction effect between empowerment impact and trust in management is expected. It is assumed that when an employee feels he has a lot of influence on the organizational outcomes and trusts the management, this could improve affective commitment. However, we assume the interaction effect of a high degree of trust in management is stronger for an employee scoring low on impact.
  • 25. 17 H6A: The positive relation between impact and affective commitment is enhanced when employees are high on trust in management. This effect is stronger when empowerment impact is low than when empowerment impact is high. When an employee can identify his personal goals and ideals with those of the organization, the trust in management will play a less important role in the degree of affective commitment than in case the employee cannot identify his personal goals and ideals with those of the organization. H6B: The positive relation between meaning and affective commitment is enhanced when employees are high on trust in management. This effect is stronger when empowerment meaning is low than when empowerment meaning is high. In the previous hypotheses we did not know for sure how the dimension empowerment competence would influence affective commitment. When an employee feels very competent in his or her work, it is assumed that an interaction with trust in management would have a positive influence on affective commitment. H6C: The interaction between competence and trust in management effects affective commitment in such a way that affective commitment will be higher when trust in management is high. In the direct hypothesis a positive relationship between empowerment self- determination and affective commitment is expected. In this study it is assumed that self- determination interacting with trust in management has a positive influence on affective commitment. H6D: The positive relation between self-determination and affective commitment is stronger for employees which are high on trust in management. This effect is stronger when empowerment self-determination is low than when empowerment self-determination is high.
  • 26. 18 3. Relevance, Research Goal & Contribution 3.1 Relevance In order to remain attractive for the current and the next generation employees, it is important for organizations to (re)consider their policy in the rapidly changing environment. In the past it has always been accepted that people could exercise power over the behavior of others. This not only applies to society, but to companies and their employees as well (Malone, 2004). During the transition phase of the industrial economy to the knowledge economy, a lot has changed, and the focus has shifted away from the manual worker to the knowledge worker. Today‟s society is characterized by increasing individualization and the development of information technology. The trend of individualization is noticed in business life in the way that people are more demanding and attach more value to freedom, flexibility and creativity. Further development of information technology, causing lower communication costs, also influences business life. When information sharing becomes easier, organizations can also operate outside their boundaries. Within organizations, information technology also plays an important role. It has enabled the revolution in business life as to dealing with power and control, mentioned by Malone (2004). Moreover, it has enabled employees to share more information in a faster way. Besides, physical presence is hardly necessary anymore. In all, it has led to a new world of working. Erasmus@work, a research program by the Erasmus University, started the New World of Work project. The aim of this project is to gain knowledge of and insight in new ways of working. Within this project several innovative organizations are participating. Some of the consequences mentioned by the new ways of working are for example an increase in access to information, changes in decision making and the flexibility of workplace and working hours. The knowledge workers' desires, globalizing organizations together with the flexibility and possibility to work without physical presence led to the contemporary result- oriented organization. This new way of working also forces organizations to rethink their policies. A concept that relates to the new ways of working, taking into account control, current working environment, and the desires of the knowledge workers, is the concept of empowerment. When people are given empowerment, is there a risk of losing the employees‟ connection with the company? Literature focuses on creativity and productivity, but what happens to the employees‟ attitude toward the company? Committed employees deliver many benefits for the organizations. Affective commitment is assumed to be positive related to behaviors that are beneficial to the organization, such as performance, attendance, and staying
  • 27. 19 with the organization (Mathieu & Zajac, 1990; Meyer & Allen, 1997; Mowday, Porter, & Steers, 1982, Randall, 1990). In short, working environments require research, especially when organizations are result-orientated and people‟s physical presence is not necessary anymore. Business environment and people‟s attitudes are changing and it is important to be aware of the consequences. 3.2 Research goal The new ways of working are fairly new in our current society. For this thesis we want to obtain better insights in the effects of empowerment on the willingness to stay in the organization within this new world of working. Empowerment, a concept which is often heard nowadays, will be the focus of this research. This concept can be divided into four dimensions: impact, self-determination, meaning and competence. In this research we use these four dimensions to gain a better insight and to find out how each dimension of empowerment influences a variable that has to deal with commitment to the organization and the willingness to stay in the organization, affective commitment. However, apart from the positive image of the concept of empowerment, could a company empower its employees too much? In general, is there a positive relationship between empowerment and commitment, an increase in empowerment causing an increase in commitment, or could this relationship change when a certain degree of empowerment is reached? In other words, is there a risk of losing the employees‟ connection with the company caused by allowing them too much empowerment? As has already been discussed, affective commitment is positively related to behaviors that are beneficial to the organization, such as performance, attendance, and staying within the organization. For this research it is an assumption that a high degree of commitment to the organization is important for the organization‟s outcomes, which is also in line with previous research. Thereby we assume, taking into account the characteristics of knowledge workers and the competitive environment of today, that empowerment, trust and job engagement can play an important role. To reach the research goal the following research question has been formulated: How does empowerment influence the employee‟s affective commitment to the organization and what is the role of job engagement and trust in management in this relationship?
  • 28. 20 3.3 Contribution This thesis contributes to academic literature as well as to practice. For this thesis we want to gain better insight into the effect of providing empowerment to knowledge workers, taking into account the new (flexible) working environment with rapidly changing technologies. By rapidly changing technologies we mean technologies which enable us to work in a flexible way, for example by cloud computing, virtual working, etc. As already been stated, we will assess the four dimensions of empowerment in relation to affective commitment. Previous research (Laschinger et al., 2000) has shown a positive relation between empowerment and affective commitment. However, the effect of the dimensions of empowerment on affective commitment has not been established previously. In addition to testing these direct relationships, the examination of the effect of job engagement and of trust in management will contribute to already existing literature about empowerment. With the New World of Work project, RSM@work focuses on three elements, the three P‟s: People, Planet and Profit. The first element, People, focuses on the working conditions, flexibility, work/life balance and employee satisfaction. The second P, Planet, focuses on the impact on the environment and the last P, Profit, focuses on productivity and creativity. In this thesis we will make a contribution to the People element. Several relations between empowerment and outcome variables regarding the People element within the New World of Work have already been examined. However, the relation between the dimensions of empowerment and affective commitment has not been examined before. One of the organizations participating in the project of the New World of Work is Rabobank. Rabobank has an internal program which holds for the entire organization, called Rabo Unplugged. The program focuses on giving employees responsibility and autonomy in job performance. In recent years this program was implemented gradually. Research data has been collected from employees working at Rabobank. The research will focus on two departments and three locations of Rabobank. These departments just started the implementation of the unplugged project. Rabobank will put this thesis to practical use by gaining a better insight in the dimensions of empowerment, in the influence of job engagement and in trust in management and in the relationship with affective commitment in the unplugged environment. It will help to improve managing the employees working at Rabobank. Besides, other organizations can benefit. It will help to improve managing employees working in organizations implementing a comparable project.
  • 29. 21 4. Research model and hypotheses 4.1 Research model The conceptual model represents the relationships and hypotheses mentioned in the literature review above. In the model below, these hypotheses are summarized. Figure 4.1: Conceptual Model 4.2 Summary of hypotheses In this study we first will test the hypotheses set up to test the direct relationships between empowerment and affective commitment. Next in the test are hypotheses that have been formulated to examine moderation effects. This paragraph lists the hypotheses mentioned earlier. Job engagement Trust in management Affective commitment Empowerment Competency Empowerment Impact Empowerment Self-determination Empowerment Meaning + ? + ?* +
  • 30. 22 Hypothesis on the relationship between empowerment and affective commitment  H1: A relationship is expected between empowerment and affective commitment. Hypotheses on the relationships between the dimensions of empowerment and affective commitment  H2 A: People who score high on empowerment impact, will score high on affective commitment.  H2 B: People who score high on empowerment meaning will score high on affective commitment.  H2 C: A relationship between empowerment competence and affective commitment is expected.  H2 D: People who score high on empowerment self-determination, will score high on affective commitment. Extra analysis  H2 D*: The relation of empowerment self-determination and affective commitment shows an inverted u-shaped curve. When there is a moderate degree of self- determination, affective commitment will be high; however, when the level of self- determination is low or high, the level of affective commitment will be low. Hypothesis on the interaction between job engagement and empowerment  H3: The relationship between empowerment and affective commitment is moderated by job engagement. Hypotheses on the interaction between job engagement and dimensions of empowerment  H4 A: The positive relation between impact and affective commitment is stronger for employees which score high on job engagement.  H4 B: The positive relation between meaning and affective commitment is stronger for employees which score high on job engagement. This is only the case when an employee already scores high on empowerment meaning.  H4 C: The relationship between competence and affective commitment is moderated by job engagement.  H4 D: The interaction between self-determination and job engagement causes a negative influence on affective commitment.
  • 31. 23 Hypotheses on the interaction between trust in management and empowerment  H5: The relationship between the dimensions of empowerment and affective commitment is moderated by trust in the management. In such a way that when trust in management is high, the relationship between empowerment and affective commitment will be stronger. Hypotheses on the interaction between trust in the management and dimensions of empowerment  H6 A: The positive relation between impact and affective commitment is enhanced when employees are high on trust in management. This effect is stronger when empowerment impact is low than when empowerment impact is high.  H6 B: The positive relation between meaning and affective commitment is enhanced when employees are high on trust in management. This effect is stronger when empowerment meaning is low than when empowerment meaning is high.  H6 C: The interaction between competence and trust in management effects affective commitment in such a way that affective commitment will be higher when trust in management is high.  H6 D: The positive relation between self-determination and affective commitment is stronger for employees which are high on trust in management. This effect is stronger when empowerment self-determination is low than when empowerment self- determination is high.
  • 32. 24 5. Research methods 5.1 Sample In this thesis, the participants are Dutch Rabobank employees in two divisions: banking operations, and concern purchase. The research will focus on two departments and three locations of Rabobank. The first department, Banking operations, consists of Marketing Support (MaS), Site Management (SiM) and a customer service center. The second department is a purchase center. Since spring 2010 the Marketing Support and Site Management sections have moved to a new unplugged environment in Boxtel. However, both sections have been in the process for as long as two years. Apart from gathering data from these two sections, also data is collected from employees working in the customer contact center in Tilburg. These people have not moved to the unplugged building and only have the opportunity to work in the office. Finally, data was collected from the purchase department in Eindhoven. In Eindhoven people have been unplugged for a longer period already and have been working with a lot of unplugged dimensions. The participants included both executing employees and managers of various educational backgrounds, all varying in age. Besides, the employees have been working in different employments. 5.2 Procedure The data used for this research is gathered on one moment in time and with one and the same survey distributed to the three locations. For this research potential participants included 408 employees that could fill out the survey online. Questionnaires were distributed online by a member of the department. Each questionnaire had an accompanying letter to explain the purpose of the questionnaire. Employees were asked to share their experiences and opinions with the new unplugged working approach and environment of RABO bank. Participation was voluntary, but because of a low initial response rate, employees were requested to cooperate. Finally, we were able to gather useful data among 184 participants. When we put a 10 minutes' limit on the time allowed for filling out the survey, we filtered out one participant, who could not satisfy this requirement. Table 5.1: Respondents Department Employees Participants Response rate Boxtel 80 32 40% Tilburg 270 116 43% Eindhoven 58 36 62%
  • 33. 25 5.3 Measures Each variable has been measured in the survey according to the constructs defined to represent the particular variable. The entire list of measured items can be found in appendix A. 5.3.1 Empowerment The concept of empowerment can be defined as giving someone the right to make a decision while this right previously belonged to someone else. In this research we will focus on psychological empowerment, or the employee's perception of empowerment. The degree of empowerment was measured by using the 12 items in Spreitzer's article (1995). In this article empowerment is divided into four dimensions. These four dimensions are meaning, competence, self-determination and impact. The validation of these four dimensions allows us to accurately examine behaviors that lead the employee to feel empowered (Gómez & Rosen, 2001). Each dimension is measured by three items. An example of one of the items to measure meaning is: „My work activities have a personal meaning to me‟. The Cronbach‟s Alpha of meaning is .81. An example of one of the items to measure competence is: „I have confidence in my ability to do my work‟. The Cronbach‟s Alpha of competence is .69. An example of one of the items to measure self-determination is: „I can decide for myself how I should tackle my work‟. The Cronbach‟s Alpha of self-determination is .88. And an example of one of the items to measure impact is: „I have considerable influence in what goes on within my department‟. The Cronbach‟s Alpha of impact is .85. The items are measured on a scale ranging from totally disagree (1) to totally agree (5). 5.3.2 Affective commitment Affective commitment refers to the employee‟s emotional attachment to, identification with and involvement in the organization and was measured by using a part of the three component conceptualization of organizational commitment, composed by Allen and Meyer (1990). De Gilder et al. (1997) formulated a Dutch version of this construct. In this Dutch version some items are defined differently. The direct translation into Dutch led to lengthy definitions. Together with the negatively defined items, this brought down the validity of the scale. The Dutch writers argue that these items were „bad for the psychometric characteristics‟ (p.97). For this reason we have used the version of the scale in Dutch. An example of one of the items to measure affective commitment is: „I really feel as if this organization‟s problems are
  • 34. 26 my own‟. The items are measured on a scale ranging from totally disagree (1) to totally agree (5). The Cronbach‟s Alpha of affective commitment is .87. 5.3.3 Job engagement In this research, the concept of job engagement is defined as the degree in which an employee is attentive and absorbed in his performance of the job. The concept will be measured using the three aspects absorption, dedication and vigor. In the survey each aspect is measured by three items formulated by Schaufeli et al. (2006). An example of one of the items to measure absorption is: „When I am working, I forget everything around me‟. An example of one of the items to measure dedication is: „My work inspires me‟. And an example to measure vigor is: „I am full of energy at work‟. Job engagement is evaluated on a scale ranging from totally disagree (1) to totally agree (5). The Cronbach‟s Alpha of job engagement is .86 5.3.4 Trust in management In this research, the concept of trust management is defined as employees' perceptions of the level of their trust in management's honesty and competence to make effective decisions. The concept of trust management is measured by four items based on the article of Cook and Wall (1980). An example of an item to measure trust management is: „The management carries out its tasks efficiently, as far as I can assess‟. The Cronbach‟s Alpha of trust in management is .83. 5.3.5 Control variables The control variables used in this research are age and employment. Age is measured by asking people their age. For this research it is assumed that the age of the employee can have an influence on the affective commitment to the organization. Research by Finegold et al. (2002) already indicated a significant influence of age on variables that predict commitment and the willingness to stay in the company. Employment is measured by asking the question: „How many hours per week do you spend on your work on average?‟ This concerns the actual total number of working hours, including overtime, meetings, business travel and education. This research covered participants with several employments. In this research it is assumed that the average number of working hours can influence affective commitment. It is plausible to think that an employment of 16 hours a week in comparison with an employment of 40 hours a week can cause a difference in one‟s identification with and attachment to the organization.
  • 35. 27 5.3.6 Summary Descriptives Table 5.2: Summary Descriptives Variable Nr. Of items M SD Cronbach's Alpha α Meaning 3 3,77 0,6418 0,809 Impact 3 3,058 0,793 0,847 Competence 3 4,199 0,473 0,689 Self-determination 3 3,469 0,988 0,883 Affective commitment 8 3,482 0,583 0,865 Trust in Management 4 3,62 0,572 0,832 Job engagement 9 3,693 0,517 0,86
  • 36. 28 6. Results 6.1 Factor Analysis Factor analyses can be used for different purposes. For example, it can be useful to reduce variables to a smaller number of dimensions or to investigate if items are measuring aspects of an underlying dimension (Kim & Mueller, 1978). In this research a factor analysis is performed of empowerment. In table 6.1 the loadings on the four dimensions of empowerment are shown. In this factor analysis the Varimax rotation method is used. When using this method it is desired to have an obvious variance between high and low loadings. Moreover, it is important and desired that variables only have high loadings on one factor. Following the article of Tinsley and Tinsley (1987) a rule of thumb is factor loadings of .30 are acceptable. Therefore, loadings should be at least .30 When assessing the factor loadings, it is obvious that the factors are not loaded in a perfectly satisfying way. First, empowerment appears to consists of only three factors instead of four. In specific, out of this figure emerges no obvious distinction between the dimension of self-determination and impact. Secondly, one item should be removed from the second factor measuring the dimension meaning. One item of the dimension impact has a fairly high value on this factor. Which further meets the requirements of a satisfying factor. Thirdly, the loadings on competence are not perfectly loaded; one item hardly meets the rule of thumb of .30. Besides, this item has a much higher value in the fourth factor. Despite these shortcomings, it is chosen in this research to continue with the four dimensions of empowerment, containing three items per dimension. The four dimensions of empowerment are common and widely accepted. Besides, previous research argue that each of the four dimensions of empowerment adds a unique facet to the individual‟s experience of empowerment (Thomas & Velthouse, 1990). Finally, we have evaluated the Cronbach Alpha‟s of the four dimensions. Three dimensions scored above .80, which is satisfying, and only competence scored .689, which is still acceptable. When removing one item, the Cronbach‟s Alpha only slightly improves.
  • 37. 29 Table 6.1: Factor analysis Empowerment Component 1 2 3 4 I have considerable autonomy in determining how I do my work ,849 ,119 ,084 ,040 I can decide for myself how I should tackle my work ,858 ,082 ,203 -,092 I have ample opportunity and freedom regarding the way in which I carry out my work ,857 ,077 ,199 -,015 My impact on what goes on within my department is great ,599 ,431 -,145 ,297 I have a great deal of control on what goes on within my department ,720 ,261 -,089 ,245 I have considerable influence on what goes on within my department ,757 ,275 -,168 ,271 The work that I do is very important to me ,224 ,858 ,221 -,087 My work activities have a personal meaning to me ,177 ,707 -,031 ,303 The work that I do means a lot to me ,145 ,843 ,263 -,023 I have confidence in my ability to do my work ,021 ,104 ,801 ,334 I am self-assured in respect of my capabilities to carry out my work ,151 ,060 ,362 ,824 I have learnt the skills I need for my work ,080 ,200 ,827 ,012 6.2 Correlations This research aims to investigate the relationship between empowerment and affective commitment. First, we will evaluate the direct influence of empowerment, divided into subscales, on affective commitment. In addition, we examine the effect of two moderators, trust in management and job engagement, on this relationships. In order to determine if there are linear relationships between the subscales of empowerment and affective commitment, we evaluated the correlations and their significance. The correlations between the variables are shown in table 6.2.
  • 38. 30 Table 6.2: Correlations Matrix Correlations Variable 1 2 3 4 5 6 7 8 9 10 1 .Age Pearson Correlation Sig. (2-tailed) 2. Employment Pearson Correlation -,019 Sig. (2-tailed) ,802 3. Meaning Pearson Correlation ,016 ,234 Sig. (2-tailed) ,835 ,001 4. Competence Pearson Correlation ,103 ,232 ,347 Sig. (2-tailed) ,163 ,002 ,000 5. Impact Pearson Correlation -,083 ,421 ,460 ,183 Sig. (2-tailed) ,264 ,000 ,000 ,013 6. Self-determination Pearson Correlation -,097 ,500 ,365 ,243 ,672 Sig. (2-tailed) ,192 ,000 ,000 ,001 ,000 7. Squared self-determination Pearson Correlation -,102 ,507 ,368 ,280 ,676 ,988 Sig. (2-tailed) ,169 ,000 ,000 ,000 ,000 ,000 8. Affective commitment Pearson Correlation ,059 ,135 ,463 ,139 ,187 ,138 ,125 Sig. (2-tailed) ,424 ,068 ,000 ,060 ,011 ,061 ,090 9. Job engagement Pearson Correlation ,049 ,127 ,727 ,230 ,417 ,300 ,320 ,541 Sig. (2-tailed) ,506 ,086 ,000 ,002 ,000 ,000 ,000 ,000 10. Trust management Pearson Correlation -,007 -,149 ,234 ,096 ,183 ,087 ,087 ,392 ,363 Sig. (2-tailed) ,924 ,044 ,001 ,197 ,013 ,241 ,242 ,000 ,000 Direct relationships with dependent variable Meaning and affective commitment are positively correlated, and significant. Competence and affective commitment are positively correlated, but marginally significant. This means that the relationship is significant on 10% instead of on 1% or 5%. Self-determination is positively correlated to affective commitment, but also marginally significant. Impact and affective commitment are positively correlated and significant. Independent variables The four dimensions of empowerment are positively related and significant. Strong relations emerge between impact and self-determination as well as between impact and meaning. Independent variables and job engagement Job engagement and the dimensions of empowerment are positively related and significant.
  • 39. 31 Independent variables and trust management Trust in management and the dimensions of empowerment are positively related. However, not all relationships are significant. The relationship between meaning and trust in management and the relationship between impact and trust in management proves to be significant. Job engagement, trust management and affective commitment Job engagement is positively related to affective commitment and is significant. Trust in management and affective commitment have a positive relationship which is also significant. Control variables Gender is slightly related in a positive way to affective commitment, but is not significant. The relation between employment and affective commitment also appears to be positive and is marginally significant. Squared self-determination In the hypotheses an extra hypothesis is set up in order to get a better insight in the dimension self-determination. In specific, an inverted u-shaped relationship is expected between self- determination and affective commitment. As expected, positive correlations are found with the three other dimensions of empowerment. Besides, a marginally significant relationship with affective commitment is shown in the table. Some correlations are remarkably high, for example between job engagement and meaning and between self-determination and impact. In the next paragraph there will be paid more attention to these observations.
  • 40. 32 6.3 Regression analysis Regression analysis is used to analyse and to understand how the value of a dependent variable, in our case affective commitment, changes or is influenced by changing the value of an independent variable when others are held constant. Before we set up a regression analysis, the means were centered, this is done to reduce multicollinearity (Aiken & West, 1991). 6.3.1 Exploring Regression Analysis: Empowerment divided in four dimensions Several regression analyses need to be performed in order to determine a final model. In order to get a first impression of the relationships between the variables of the dimensions of empowerment, affective commitment and two moderators, a regression analysis is performed, which includes all assumptions made for the hypotheses. This model, attached in appendix B, consists of six steps, and each step adds new variables to the model. In the first step, the control variables age and employment have been added in order to determine if they would influence the dependent variable affective commitment. By adding these control variables, each next step will be controlled for these variables. The model shows in the first step age has no significant influence (β = .06, P = 0.401) and employment has a marginally significant influence (β = .14, P = 0.066). This means that the variable is significant on 10% instead of the desired 1% or 5%. In the second step the four dimensions of empowerment are added to the model. In this step employment is no longer marginally significant (β = .06, P = .442). The model shows a positive causal relationship between the dimension meaning and affective commitment (β = .49, P = 0.000). The other dimensions of empowerment are negatively related to affective commitment. However, these relationships are not significant. In the third model, job engagement and trust management are added to the model. In this model the control variable employment is significant again (β = .18, P = .016). Besides, the relation with the dimension meaning remains significant, however the significance changed from 1% (P= 0.000) to 5% (P = 0.043) and the three other dimensions stay insignificant. The significance of the two new variables is 1%. In the fourth model the two-way interactions with job engagement are added to the model. This step shows one significant interaction, namely the one with the dimension competence (β = -.19, P = 0.04). In the fifth model the interactions with trust management are added to the model. The model shows three significant interactions. The interactions with impact (β = .25, P = 0.007)
  • 41. 33 and meaning (β = -.24, P = 0.004) are significant on 1% and the interaction with competence (β = .189, P = 0.014) is significant on 5%. The interaction with self-determination is negative and almost marginally significant (β = -.14, P = 0.108). Finally, the interaction between competence and job engagement is still significant (β = -.31, P = 0.002). In the sixth step the squared term self-determination is added to the model. The direct influence of meaning is changed into a marginally significant influence (β = .19, P = .060). Besides, the interaction between competence and job engagement is stronger and still significant (β = -.29, P = .004). Significant interactions still exist for three dimensions of empowerment. The interaction between self-determination and trust management is less significant in this step (-.128, P = .144). However, squared self-determination shows a negative and significant relation with affective commitment (β = -.17, P = .035). This model has served as an exploring model and for a first impression. Trust in the management showed to be a very significant moderator in the relation between the dimensions of empowerment and affective commitment. However, in the relationship with job engagement, empowerment and affective commitment, only the interaction between competence and job engagement shows a significant effect. Therefore we can already reject hypotheses H4A, H4B and H4D. With these results a new model is set up, in which only the significant interaction between job engagement and competence is preserved. Furthermore, all interactions, significant and insignificant, with trust in management remain in the model. Although the insignificant interactions with job engagement have been removed from the model, the insignificant interaction between self- determination and trust management is preserved. This is on account of the P-values, which were very high in the insignificant interactions between job engagement and the dimensions of empowerment and less high in the interaction between trust management and self- determination (β = -.13, P = .14). To examine if significant interactions between squared self- determination and job engagement and between squared self-determination and trust management exist, two new steps were added to the model. After this, the model was not significant anymore. For this reason we let these steps out of our final regression model. 6.3.2 Final Regression Analysis: Empowerment divided in four dimensions The results of the adjusted and final regression are shown in table 6.3. The regression model consists of 6 steps and each step adds some new variables to the model. In the first step the control variables age and employment are added to test if they influence the dependent variable. By adding these variables, each next step will be controlled for these variables. In
  • 42. 34 the first step, the results show no significant influence of the control variable age, however there is a slightly marginally significant influence of employment (β = .14, P = 0.066). In the second step, the four dimensions of empowerment are added to the model. The influence of the control variable employment is not marginally significant anymore. The model shows that the dimension meaning is significant on 1% (β = .49, P = .000). In the third step, job engagement and trust management are added to the model. In this model one of the control variables, employment, is significant on 5 %. Besides, the dimension meaning is still significant (β = .19, P = .043) and also the newly added variables job engagement and trust management are significant on 1%. In the fourth step, the two-way interaction of job engagement and competence is added to the model and shows to be significant (β = -.16, P = .007). In the fifth step, two-way interactions with trust management are added and all the interactions are significant. Only the interaction with self-determination is marginally significant; this means that the interaction is significant on 10% instead of the desired 1% or 5%. The interaction with competence is significant on 5% and the interactions with meaning and impact are significant on 1%. Besides, the interaction between competence and job engagement stays significant on 1% and the direct relation between meaning and affective commitment also still exists in this model and is significant on 5%. In the sixth step squared self-determination is added to the model. In this model the direct relation between meaning and affective commitment is marginally significant (β = .16, P = .084). The interaction between job engagement and competence still exists. Besides, three interactions with trust management exist, only the interaction between self-determination and trust management does not exist anymore. However, there is a significant relation between the squared self-determination and affective commitment (β = -.15, P = .040). 6.3.3 Multicollinearity In the correlation matrix high correlations were found for some of the variables. For this reason the tolerance values are evaluated to check for multicollinearity. The rule of thumb according to Van Dalen and De Lede (2009) is that there is no reason to suspect multicollinearity when the tolerance value is above 0.2 and the Variance Inflation Factor (VIF) is below 5. The final regression model shows a lowest tolerance value of 0.742 and a highest VIF score of 1.348, for this reason multicollinearity is not plausible. The tolerance values and the values of the Variance Inflation Factors are available in appendix C.
  • 43. 35 Table 6.3: Regression Model with dependent variable Affective commitment Variable Model 1 Model 2 Model 3 Model 4 Model 5 Model 6 Beta T Beta T Beta T Beta T Beta T Beta T Control variables Age .06 .84 .05 .75 .03 .54 .03 .55 .00 .03 -.01 -0,18 Employment .14ᶴ 1.85ᶴ .06 .77 .18* 2.42 .19** 2.61 .19** 2.73 0.2** 2.85 Empowerment Meaning .49** 6.20** .19* 2.04 .21* 2.31 .20* 2.22 .16ᶴ 1.74 Competence -.04 -.48 -.04 -.68 -.06 -.90 -.06 -.98 -.02 -.25 Self-determination -.04 -.40 -.05 -.56 -.05 -.58 -.04 -.49 -.14 -1.44 Impact -.03 -.28 -.13 -1.52 -.13 -1.48 -.14 -1.61 -.12 -1.41 Moderators Job engagement .36** 3.91 .34** 3.71 .32** 3.54 .36** 3.96 Trust management .28** 4.18 .29** 4.46 .30** 4.51 .28** 4.26 Two-way interaction with job engagement EngagementXCompetence -.16** -2.73 -.21** -3.11 -.18** -2.68 Two-way interaction with trust management Trust management X Competence .16* 2.21 .16* 2.22 Trust management X Self-determination -.16∫ -1.82 -.13 -1.53 Trust management X Impact .24** 2.78 .23** 2.68 Trust management X Meaning -.19** -2.67 -.21** -2.9 Squared self-determination -.15* -2.07 R Square .02 .22** .38** .40** .45** .46* Adjusted R square .01 .20** .35** .37** .40** .42* Note: ; ᶴp < .10; *p < .05; **p < .01; two-tailed
  • 44. 36 6.4 Hypotheses testing In this paragraph first the hypotheses are tested to examine the direct effects of empowerment on affective commitment. After this, the hypotheses are tested to examine the role of two moderators in the relationships. The hypotheses are tested using the final regression model (table 6.3). 6.4.1 Relationship between empowerment and affective commitment Hypothesis 1 predicts a relationship between empowerment and affective commitment. To examine the direct influence of the dimensions on the dependent variable, not taking into account the possibility of the influence of moderators, the results of step 2 of the final regression model are evaluated. The results of this step show no significant influence of the control variables age and employment. The dimension of meaning is positive and significant (β=.49, P=0.00). The other three dimensions show a negative beta and are not significant. This model explains 22% of the total variation in affective commitment (Rsquare =.22, P = 0.00). When we take into account the number of dependent variables, this model explains 20% of affective commitment (adjusted Rsquare = .195, P=0.00). Hypothesis 1 is partly supported. The assumption was that the dimensions of empowerment would have an effect on affective commitment, however only the dimension meaning is directly and positively related to affective commitment, as well as significant. 6.4.2 Relationships between dimensions empowerment and affective commitment In hypothesis 2 relationships between the dimensions of empowerment and affective commitment are predicted. Hypothesis 2A predicts a positive relationship between the dimension impact and affective commitment. In the sixth step the relationship is weak and not significant (β = -.12, P = 0.16). The table shows no significant causal relation between impact and affective commitment. Hypothesis 2A is not supported. Hypothesis 2B predicts a positive relationship between meaning and affective commitment. The table shows that from the second step up to the sixth step this relationship is indeed positive and significant. However, the strength of the relationship varies in the different steps. In the second step the relationship is the strongest (β= .49, P=0.00). In subsequent steps the relationship is a little weaker and less significant. However, in the sixth step the relation still is positive and marginally significant (β = .16, P=0.084). Thus, hypothesis 2B is supported.
  • 45. 37 Hypothesis 2C predicts a relationship between competence and affective commitment. As this relationship could not be observed, the direction could not be determined either. The model shows no significant relationship between the dimension competence and affective commitment. A very weak negative relationship is shown, but this relationship is not significant (β = -.02, P = 0.805). A significant direct causal relationship is not found between competence and affective commitment, thus hypothesis 2C is not supported. In hypothesis 2D a positive relationship between self-determination and affective commitment is expected. The model shows no significant relationship between self- determination and affective commitment. In the sixth step the relationship shows to be negative and very weak, and besides is not significant (β = -.14, P = 0.151). No direct positive causal relationship is found between the dimension of self-determination and affective commitment. Thus, hypothesis 2D is not supported. 6.4.3. Moderating effect of Job engagement In this paragraph the hypotheses set up to test the relations involving job engagement are discussed. We will test if the relationship between empowerment and affective commitment is moderated by job engagement. In the sixth step, the model shows job engagement (β = .36, P = 0.00) is positive and significant. In hypothesis 3 a moderating effect of job engagement is expected in the relationship with affective commitment. The model only shows a significant interaction between competence and job engagement on affective commitment. The hypothesis predicted an overall moderating effect, so that hypothesis 3 can partly be supported. During the examination of the exploring regression model, no significant interactions could be found between job engagement and impact, meaning and self- determination. For this reason only the interaction between job engagement and competence is discussed. In hypothesis 4C a moderating effect of job engagement is expected in the relationship between the dimension of competence and affective commitment. No direct effect between competence and affective commitment has been found (β = -.02, P = 0.805). In the sixth step of the regression model, a significant interaction is shown (β = -.18, P = 0.008). 6.4.4. Moderating effect of trust in the management In this paragraph the hypotheses set up to test relations with trust in management are discussed. We will test if the relationship between empowerment and affective commitment is
  • 46. 38 moderated by trust in management. In the sixth step, the model shows trust in management (β = .28, P = 0.00) is positive and significant. In hypothesis 5 a moderating effect of trust in the management is expected in the relationship with affective commitment. For three dimensions of empowerment, the model shows significant interactions with trust in management. Overall we find a significant influence of the moderator trust in management on the relationship between empowerment and affective commitment. Therefore hypothesis 5 is supported. First, the moderating effect of trust in management in the relationship between impact and affective commitment is discussed. In hypothesis 6A a two-way interaction between impact and affective commitment is expected. The model shows a two-way interaction effect. The model shows a negative direct effect, however this relationship is not significant (β = - .12, P = .16). The sixth model shows a significant two-way interaction between trust in management and impact (β = .23, P = 0.008). Secondly, the moderating effect of trust in management in the relationship between meaning and affective commitment is discussed. In hypothesis 6B a two-way interaction between meaning and affective commitment is expected. The model shows a two-way interaction effect. A direct and positive relationship is shown in the second and in each next step of de model. However, the direct relationship between meaning and affective commitment differs in the steps. In the second step the direct relationship is stronger and more significant (β = .49, P = 0.000) than in the sixth step (β = .16, P = 0.084). The model shows in step six a significant two-way interaction between meaning and trust in the management (β = -.21, P = 0.004). The third moderating effect of trust in the management is shown in the relationship between competence and affective commitment. In hypothesis 6C a moderating effect of trust in management is expected in the relationship between competence and affective commitment. The model shows a negative direct effect of competence on affective commitment, however this relationship is not significant (β= -.016, P=0.805) No direct and significant effect in the relationship between competence and affective commitment is shown. In step six an interaction effect between competence and affective commitment is shown in the model and is significant (β = .16, P = 0.028). Finally, the moderating effect of trust in management in the relationship between self- determination and affective commitment is discussed. In hypothesis 6D a moderating effect of trust in management in expected in the relationship between self-determination and affective commitment. The model shows a slightly negative direct relationship. However this
  • 47. 39 relationship is not significant (β = -.14, P = 0.151). No direct effect in the relationship is found. In step 6 an interaction effect is shown in the model, however this interaction is not significant (β = -.131, P = 0.127). 6.4.5. Final results interactions The regression model showed one significant interaction between job engagement and the dimension competence, and in addition the model showed three significant interactions between trust in management and the dimensions of empowerment. These interactions are assumed to affect the degree of affective commitment. To get a visual indication of the effects, the significant interactions are plotted in the figures below. By means of these figures, the hypotheses will be evaluated. Hypothesis 4C predicts the relationship between competence and affective commitment would be moderated by job engagement. The visualization of the significant two-way interaction of competence and job engagement is shown in figure 6.1. The highest degree of affective commitment is related to a low score on competence and a high score on job engagement. This two-way interaction indicates that when an employee does not have the feeling that he or she is competent and can perform his work activities very well, the degree of job engagement influences his affective commitment to the organization. In specific, when the employee is very concentrated in performing his tasks and wants to put a lot of effort in the job as well, affective commitment will be high. However, when he already experiences a high degree of competence, his engagement to the job will not influence the relationship with affective commitment. Hypothesis 4C is supported. Hypothesis 6A predicts that the positive relation between impact and affective commitment is stronger for employees who are high on trust in management. It is expected that this effect is stronger when empowerment impact is low than when empowerment impact is high. The visualization of the significant two-way interaction of impact and trust in management is shown in figure 6.2. The highest degree of affective commitment is achieved when both impact and trust in management are high. This two-way interaction shows that when an employee feels his or her work activities have significant influence on the organizational outcomes, the way in which the employee trusts the management influences his or her affective commitment to the organization. The highest and lowest degree of affective commitment relate to the employee who feels he has a great influence on the organizational outcomes. In specific, an employee who scores high on impact and has a high degree of trust in management, will score high on affective commitment. Conversely, the lowest score on