The Effect of Job Satisfaction on Organizational Commitment: Insight Into Devaraj Agency

Topics: Job satisfaction, Organizational commitment, Employment Pages: 21 (6926 words) Published: January 25, 2012
ID 49801 Senior Project: Management
Ms. Linda
The effect of job satisfaction on organizational commitment: Insight into Devaraj Agency VIJAY MUTHU RAJAH A/L ANNAVI

Table of Contents
No| Description | Page|
1| Objective | 1|
2| Methodology| 2|
3| Introduction| 3|
4| Literature Review| 4-6|
5| Findings| 7-19|
6| Result of the findings| 20-21|
7| Limitation| 22|
8| Recommendation| 23|
9| Conclusion| 24|
10| Reference | 25|
11| Appendix| 26-28|

The objective of this project is to analyze the relationship between job satisfaction and organizational commitment among insurance agents in Devaraj Agency. The focus of this study is to analyze the general behavior of insurance agents towards job satisfaction, which may build higher levels of organizational commitment. This study is done based on Herzberg’s two- factor theory and more specifically, on Motivators factor. The findings of this project will help agency manager to understand the current level of job satisfaction and organizational commitment of agents towards their agency. Besides that, suggestions also will be given based on the result of the findings. If the satisfaction level and organizational commitment of insurance agents is low and then many suggestion will be given to solve the problem. If it is otherwise, suggestion will be to maintain or improve further the job satisfaction and organizational commitment of the agents. By this, the agency manager gets suggestions to solve job satisfaction and organizational commitment problem if any or to improve them further.

Numerous of methods are to be used to identify the job satisfaction and organizational commitment of the agents. The method are as followed: Survey
A survey was done with insurance agents from Devaraj Agency. The purpose of this survey is to find out the current level of job satisfaction and organizational commitment of the insurance agents. The survey would had 56 questions related to job satisfaction and organizational commitment. Interviews

An Interview has been held with agency manager and few insurance agents. The purpose of interviewing agency manager is to get information about the human resource strategy, annual turnover rate and his perception on agent’s job satisfaction and organizational commitment. External sources

The external sources were used in this research. The external sources were Internet and printed materials. These materials were very useful in doing literature review about job satisfaction, organizational commitment and the relationship of them.

Devaraj Agency is one of the oldest Indian insurance agencies in ING Company. The main role of this agency is to sell the insurance as well as investment products of ING Bhd through direct selling techniques. Up to now, 100 over people working as insurance agents in this agency. However, there was no attempt has been taken to measure the job satisfaction and organizational commitment of the agents in this agency. Job satisfaction means ‘a pleasurable or positive emotional state resulting from the appraisal of one’s job or job experiences. (Locke, 1976). According to Porter (1968), organizational Commitment is a willingness of employees to exert high levels of effort on behalf of the organization, a strong desire to remain in the organization, and an acceptance of the organization’s major goals and values. It is important for Devaraj Agency to learn about job satisfaction and organizational commitment of its insurance agents because if agents satisfied with their job, they will have high commitment on their agency and that translate into high job performance and low absenteeism.

Literature review
Job satisfaction and organizational commitment receive considerable attention from industrial and organizational psychologists, management scientists, and...
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