THE EFFECTS OF EMPLOYEE SATISFACTION, ORGANIZATIONAL CITIZENSHIP BEHAVIOR, AND TURNOVER ON ORGANIZATIONAL EFFECTIVENESS: A UNIT-LEVEL, LONGITUDINAL STUDY
DANIEL J. KOYS
Department of Management
This week’s reading covered regression and inferences about differences. Regression is a statistical measure that attempts to determine the strength of the relationship between one dependent variable and a series of other changing variables. This information helps determine what factors affect certain outcomes and which do not. This article was really interesting as it explored a very realistic question of whether positive employee attitudes and behaviors influence business outcomes or whether positive business outcomes influence positive employee attitudes and behaviors.
At its core concept, regression takes a group of random variables, thought to be predicting an outcome, and tries to find a mathematical relationship between them. This relationship is typically linear and takes into account all the individual data points. The hypothesis in this study by Daniel Koys was that employee satisfaction, organizational citizenship behavior, and employee turnover influence profitability and customer satisfaction. Data was gathered from a restaurant chain using employee surveys, manager surveys, customer surveys, and organizational records. Regression analyses showed that employee attitudes and behaviors at a given ‘Time 1’ were related to organizational effectiveness at given ‘Time 2’ however additional regression analyses show no significant relationship between organizational effectiveness at Time 1 and the employee attitudes and behaviors at Time 2. Overall it was determined that employee behaviors have a more direct impact on organizational effectiveness than do employee attitudes, especially when the concept of organizational effectiveness includes profitability as well as customer attitudes towards the restuarant.
Further research was