YANGON UNIVERSITY OF ECONOMICS

DEPARTMENT OF MANAGEMENT STUDIES

MBA PROGRAMME

THE EFFECT OF ORGANIZATIONAL CULTURE ON JOB

PERFORMANCE OF EMPLOYEES AT AYA MYANMAR
GENERAL INSURANCE CO., LTD

HSU HTET HLAING

MBA II – 13

MBA 23rd BATCH

NOVEMBER 2019
 YANGON UNIVERSITY OF ECONOMICS

DEPARTMENT OF MANAGEMENT STUDIES

MBA PROGRAMME

THE EFFECT OF ORGANIZATIONAL CULTURE ON JOB

PERFORMANCE OF EMPLOYEES AT AYA MYANMAR
GENERAL INSURANCE CO., LTD

HSU HTET HLAING

MBA II – 13

MBA 23rd BATCH

NOVEMBER 2019

2
 YANGON UNIVERSITY OF ECONOMICS

DEPARTMENT OF MANAGEMENT STUDIES

MBA PROGRAMME

THE EFFECT OF ORGANIZATIONAL CULTURE ON JOB

PERFORMANCE OF EMPLOYEES AT AYA MYANMAR
GENERAL INSURANCE CO., LTD

ACADEMIC YEAR (2017 – 2019)

Supervised by Submitted by

Dr. Yin Min Htwe Hsu Htet Hlaing

Lecturer MBA II – 13

Department of Management Studies MBA 23rd Batch

Yangon University of Economics 2017 – 2019

3
 YANGON UNIVERSITY OF ECONOMICS

DEPARTMENT OF MANAGEMENT STUDIES

MBA PROGRAMME

THE EFFECT OF ORGANIZATIONAL CULTURE ON JOB

PERFORMANCE OF EMPLOYEES AT AYA MYANMAR
GENERAL INSURANCE CO., LTD

A thesis submitted to the Board of Examiners in partial fulfilment of the requirements for
the degree of Master of Business Administration (MBA)

Supervised by Submitted by

Dr. Yin Min Htwe Hsu Htet Hlaing

Lecturer MBA II – 13

Department of Management Studies MBA 23rd Batch

Yangon University of Economics 2017 – 2019

4
 ACCEPTANCE

This is to certify that the thesis entitled “The Effect of Organizational Culture on
Job Performance of Employees at AYA Myanmar General Insurance Co., Ltd” has
been accepted by the Examination Board for awarding Master of Business Administration
(MBA) degree.

Board of Examiners

……..…………

(Chairman)
Dr. Tin Win
Rector
Yangon University of Economics

……………...... …...……………

(Supervisor) (Examiner)

…...…………… …...……………

(Examiner) (Examiner)

NOVEMBER 2019

5
 ABSTRACT

This study explores the effect of organizational culture on job performance of

employees at AYA Myanmar General Insurance Co., Ltd. The objective of the study is to
analyze the effect of organizational culture on organizational commitment at AYA
Myanmar General Insurance Co., Ltd and to explore the effect of organizational
commitment on job performance of employees in AYA Myanmar General Insurance Co.,
Ltd. The primary data are collected from 155 respondents of different positions and
different departments by using simple random sampling method with structured
questionnaires. The organizational culture has positive effect on organizational
commitment. Involvement, consistency and adaptability are the most influencing factors
on affective commitment. Normative commitment is mostly influenced by both consistency
and mission. For continuance commitment; involvement, consistency, and mission are
mostly influenced. The result also supports that all three types of organizational
commitment: affective, normative, continuance have strong influence on both contextual
and task performance of employees at AYA Myanmar General Insurance Co., Ltd.

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 ACKNOWLEDGEMENT

First, I would like to express my deepest graduate firstly to Professor Dr. Tin Win,
Rector of Yangon University of Economics, and Professor Dr. Nilar Myint Htoo, Pro-
Rector of Yangon University of Economics for their kind permission to undertake this
study as a partial fulfillment towards the Master of Business Administration. My deepest
thanks to Professor Dr. Nu Nu Lwin, Program Director, Head of Department of
Management Studies for her permission, guidance and support to this study.

I am absolutely thankful with the bottom of my heart to my supervisor, Dr. Yin Min
Htwe, Lecturer of Department of Management Studies, for her kindly guidance, helpful
advice, and encouragement during all this implementation process and for her support to
complete this study successfully. Moreover, I feel grateful to all of the professors, associate
professors, lecturers from Department of Studies, and visiting lecturers for their valuable
lectures, and guidance during the study in Yangon University of Economics.

I would like to express my sincere gratitude to U Myo Min Thu, Managing Director
of AYA Myanmar General Insurance Co., Ltd for his permission and my gratitude towards
all of the employees at AYA Myanmar General Insurance Co., Ltd who provided me with
the references to collect relevant data for my study.

Last but not the least, my sincere thanks go to my family, seniors, friends and all of
my classmates from 23rd Batch for their care and encouragement until the completion of
this study. Finally, I do my deepest gratitude to everyone who contributed a great effort
throughout my study.

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 TABLE OF CONTENT

Page
ABSTRACT i
ACKNOWLEDGEMENT ii
TABLE OF CONTENTS iii
LIST OF TABLES v
LIST OF FIGURES vi

CHAPTER 1 INTRODUCTION 1
1.1 Rationale for the Study 2
1.2 Objectives of the Study 3
1.3 Scope and Method of Study 3
1.4 Organization of the Study 4

CHAPTER 2 THEORETICAL BACKGROUND 5

2.1 Organizational Culture 5
2.2 Models of Organizational Culture 6
2.3 Organizational Commitment 11
2.4 Job Performance 12
2.5 Previous Studies 13
2.6 Conceptual Framework of the Study 14

CHAPTER 3 ORGANIZATIONAL CULTURE OF AYA 16

MYANMAR GENERAL INSURANCE CO., LTD
3.1 Profile of AYA Myanmar General Insurance Co., Ltd 16
3.2 Organizational Culture of AYA Myanmar General 18
Insurance Co., Ltd
3.3 Research Design 20
3.4 Reliability Test 21
3.5 Demographic Profile of Respondents 22

8
CHAPTER 4 ANALYSIS ON THE EFFECT OF 26
ORGANIZATIONAL CULTURE ON JOB
PERFROMANCE OF AYA MYANMAR GENERAL
INSUARNCE CO., LTD
4.1 Employees Perception on Organizational Culture 26
of AYA Myanmar General Insurance Co., Ltd
4.2 Employees Perception on Organizational Commitment of 31
AYA Myanmar General Insurance Co., Ltd
4.3 Job Performance of Employees at AYA Myanmar 35
General Insurance Co., Ltd
4.4 Effect of Organizational Culture on Organizational 37
Commitment of AYA Myanmar General Insurance Co.,
Ltd
4.5 Effect of Organizational Commitment on Job 44
Performance of AYA Myanmar General Insurance Co.,
Ltd

CHAPTER 5 CONCLUSION 48
5.1 Findings and Discussions 48
5.2 Suggestions and Recommendations 50
5.3 Needs for Further Research 52

REFERENCE

APPENDICES

9
 LIST OF TABLES

Table No. Title Page

Table (3.1) Reliability Analysis 22

Table (3.2) Demographic Profile of Respondents 23

Table (4.1) Involvement 27

Table (4.2) Consistency 27

Table (4.3) Adaptability 28

Table (4.4) Mission 29

Table (4.5) Overall Mean of Organizational Culture 30

Table (4.6) Affective Commitment 32

Table (4.7) Normative Commitment 32

Table (4.8) Continuance Commitment 33

Table (4.9) Overall Mean of Organizational Commitment 34

Table (4.10) Contextual Performance 35

Table (4.11) Task Performance 36

Table (4.12) Overall Mean of Job Performance 37

Table (4.13) Effect of Organizational Culture on Affective Commitment 38

Table (4.14) Effect of Organizational Culture on Normative Commitment 40

Table (4.15) Effect of Organizational Culture on Continuance Commitment 42

Table (4.16) Effect of Organizational Commitment on Contextual Performance 44

Table (4.17) Effect of Organizational Commitment on Task Performance 47

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 LIST OF FIGURES

Figure No. Title Page

Figure (2.1) Schein’s Three-Layer Organizational Model 7

Figure (2.2) Kotter and Heskett’s Culture Model 8

Figure (2.3) Hofstede’s Model of Organizational Culture 8

Figure (2.4) Denison Organizational Culture Model 9

Figure (2.5) Conceptual Framework of the Study 15

Figure (3.1) Organizational Structure of AYA Myanmar General Insurance 18

Co., Ltd

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 CHAPTER 1

INTRODUCTION

The multinational corporations are facing new challenges and opportunities in the
contemporary business environment on the daily basis. Organization is a cluster of people
which is combined for the purpose to fulfill the organizational goals. For the purpose of
accomplished organizational goals, people are working under the system. According to
(Brooks, 2006), “the great organizational behavior can facilitate the corporations to have
the efficient management mechanism”. Organizational culture is closely interrelated with
rest of the functions in the corporation and which has great impact on all the business
activities.

It can be argued that organizational culture of corporation is based on the

conventional culture of its environment. The culture of an organization leads to a major
competitive advantage in the business environment. It is notable that although the
organizational culture is not the property that an organization can automatically be owned,
the great organizational structure can create the better organization. Corporate culture is a
fundamental principal of the development of the organization and the cornerstone of the
building efficient corporate management mechanism. The conventional culture involves
the vision, values, norms, systems, symbols, language, assumptions, beliefs and habits of
the corporation. According to (Deal & Kennedy, 1982), the organizational culture can be
defined as the underlying beliefs, value and assumptions which is naturally appeared in the
interaction between organization and its stakeholders (Ostroff, 2013). Thus, it is notable
that the conventional culture has significant impact on the organizational culture. In
addition, organizational culture also has significant impact on the performance and
operational management of the corporation (Zabid & Sambasivan, 2003).

It is notable that there is a high correlation between organizational culture and

organizational commitment. Organizational commitment can be used to evaluate the
business values and can indicate the strength of the corporation. In addition, it is linked to
the variety of business outcomes which involve performance and productivity of
employees, innovation in the business and employee job satisfaction. It can be suggested
that the organizational commitment of the employees may be increased by changing the
organizational culture (Mitic, 2016).

12
 The business environment is dramatically changing as the requirement of
customers’ demands. Employee performance is important to face these pressures and
remain competitive. As the reformation in the insurance sector and deregulation
movements, new entrants have an opportunity to enter the Myanmar financial services
market. Insurance is a kind of service and there are many competitions. In order to serve
customers, employee performance is critical to obtaining organizational results and success
results. Therefore, this study introduces the process of analyzing the impact of
organizational culture on business performance at one of Myanmar's best insurance
companies, AYA Myanmar General Insurance Co., Ltd.

1.1 Rationale of the Study

Organizational culture has been linked to organizational commitment and is

perceived to be a central determinant of overall organizational efficacy (Lok & Crawford,
2004). The organizational culture play as a key role to achievement of an organization’s
objective. If an organization does not have employees who are committed to the
organization and engaged in their work, it will be difficult to attain goals. ‘Understanding
the conditions under which individuals would actively engage is highly relevant for both
employees and employers’ (Wildermuth, 2008).

Many organizations are now facing challenges with tasks of retaining their
employees at the same time, the employers need to make sure employees have loyal and
commitment organization. For insurance industry, the Myanmar insurance sector has been
monopolized for several years. In 2012, the government liberalizes the insurance sector by
licensing 12 private insurance companies. The insurance market is awaiting regulations to
free up the needed range of products and end state-controlled pricing.

The foreign insurers will be entered Myanmar insurance market as joint ventures or
independently to inject much needed know-how and capital to enable to meet the needs of
population. As new competitors enter into the market, the competition in the insurance
sector has become intense. By law, the same premium rates are charged on the insurance
products for all insurance companies to evade price competition in this industry. Thus,
insurance companies have to focus on customer services and process that they can provide
to compete in this industry to attain market share. Customer service is the main source to
get a competitive advantage over competitors.

13
 In this competitive environment, the success of organization depends on the
competent and motivated human resources. The organization’s activities and services can
be performed effectively and efficiently if employees have organizational commitment and
job performance. Satisfied and motivated employees are productive and dutiful. Providing
service is the main source of competitive advantage for insurance companies. Therefore,
the organization must need to know the importance of organizational culture which can
boost the job performance of employees by the strength of organizational commitment.
This study focuses on the effect of organization culture on job performance of AYA
Myanmar General Insurance Co., Ltd.

1.2 Objectives of the Study

The main objective of the study is to explore the organizational culture practices
that could create organizational commitment AYA Myanmar General Insurance Co., Ltd.
Consequently, the specific objectives of the study are as follow:

1. To analyze the effect of organizational culture on organizational commitment at

AYA Myanmar General Insurance Co., Ltd
2. To examine the effect of organizational commitment on job performance of
employees at AYA Myanmar General Insurance Co., Ltd

1.3 Scope and Method of the Study

This study focuses mainly on the organizational culture, organizational

commitment and job performance of employees. This study focuses on head office of AYA
Myanmar General Insurance Co., Ltd. The analytical research method is used. The primary
and secondary data are used in this research. The primary data is obtained from survey of
employees from head office with structured questionnaires. The questionnaires are set and
distributed to all of the employees at head office. A total of 155 respondents in Head Office
take part in this study. This study applies the simple random sampling method. A five-point
Likert-scales questionnaire is used. It includes four parts to collect necessary data.

To explores the organizational culture (involvement, consistency, adaptability and

mission) of the organization depicted on “Organizational Culture Model” developed by
Denison. To measure the form of organizational commitment, “Three Component Model”
developed by Allen & Meyer (1997), is applied. For job performance of employees, Job

14
Performance Scale developed by Goodman & Svyantek (1999) is used. The multiple linear
regression model is used to present the influence of organizational culture on organizational
commitment and the effect of organizational commitment on job performance of
employees at AYA Myanmar General Insurance Co., Ltd.

1.4 Organization of the Study

This study is organized into five chapters. In Chapter one, it introduces about the
research. It describes rationale, objectives, scope and research method, and the organization
of the study. Chapter two explains the theoretical background of organizational culture,
organizational commitment, and job performance of employees. Chapter three presents the
profile of company, its organizational structure and profile of respondents. Moreover,
Chapter four consists of analysis on the effect of organizational culture on organizational
commitment and the analysis on the effect of organizational commitment and job
performance of employees at AYA Myanmar General Insurance Co., Ltd. Finally, Chapter
five highlights and gives the summary of the main findings in relation to the aim of the
study. It includes final assessment and conclusion of findings and discussions, suggestions
and recommendations and needs for further study.

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 CHAPTER 2

THEORETICAL BACKGROUND

This chapter describes the theoretical background, concepts, and models that form
the conceptual framework of research. This chapter begins with the theoretical background
of organizational culture. Later, it explains the way to measure the job performance of
employees and the theories studied on these topics are discussed in this chapter. Finally,
the conceptual framework used in the study is explained.

2.1 Organizational Culture

The values, underlying assumptions, expectations and definitions are characterizing

organizations and their employees. “Organizational culture is the set of values, beliefs and
behavior patterns that represent the central identity of an organization and play an important
role in employee behavior” (Tuan, 2015). ‘The values, concepts and models are generally
learned, accepted and institutionalized by members of a group working in an organization’
(Pirayeh.N, 2011). A unique identity and the contributions of the organization can be the
result of this culture to increase the organizational commitment of employees. Chenot
(2007) stated that “organizational culture as a system of meanings and knowledge which
become acquired standards”. Then they created standards that allow employees to assess
their own behavior against other behaviors against organizational standards. These rules
create meaning for employees to realize the nature of the organization. Therefore, these key
attributes are useful for understanding the culture of the organization in its dynamic nature.

2.1.1 Importance of Organizational Culture

Each organization has its own work style that contributes to its culture. The work
culture controls the behavior of employees and people outside the organization. The people
in organization vary depending on the profession, the level of hierarchy and the work group
or team to which belong, and these have certain characteristics. Individuals sharing
common feelings, values and beliefs come together to form subunits within the
organization and reflect their own culture. The past success stories and learning on
organization can impact on culture of organization. The organization should forecast and

16
anticipate the changes of business environment actively to monitor the organizational
capabilities and requirement of business environment.

2.2 Models of Organizational Culture

Models of organizational culture are linked to positive or negative outcomes for

both organizational efficiency and individual employees of an organization. The
individual’s positive outcomes include motivation and satisfaction, and the individual's
negative outcomes include work anxiety and stress. Based on the concept and definition of
culture, it is important to investigate the various models of organizational culture in order
to gain a deeper understanding of the integration of concepts. According to (Zwaan, 2006),
these models are famous Schein E. (1992), Kotter & Heskett (1992), Hofstede, (1985), and
Denision (1990). This model is processed to provide the context of the organizational
culture. Because the current research is based solely on this model, it focuses on Denison's
organizational culture model.

2.2.1 Schein’s Model of Organizational Culture

Schein E. (1992) argued that there are three levels at which culture can be defined.
The most striking levels of culture are built physical, social and environmentally
constructed artifacts and creations. The basic assumptions that evolve into problem
solutions consist as third level. In Figure (2.1), the basic premise was treated as the core of
culture, and values and actions were separated by observed expressions of cultural elements
and culture essence.

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2.2.2 Kotter and Heskett’s Model of Organizational Culture

This model has two levels in terms of visibility in culture and resistance to change.
In Figure (2.2), each level of culture has a natural tendency to affect other levels. Culture
can be defined as long lasting values, even if the group members shared by the people in
the group have changed at deeper level. At a visible level, the culture represents an
organization's behavioral pattern or style that encourages new employees to follow
automatically.

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2.2.3 Hofstede’s Model of Organizational Culture

In Figure (2.3), this model classifies the index of culture into four groups; ‘symbols,
heroes, rituals and values.

19
 A symbol is a word, gesture or picture that has a specific meaning in culture. A
hero is alive or dead, a real person or a virtual person, and is used as a behavioral model
with characteristics that are highly appreciated in culture. Rituals is collective activities,
but it may be carried out for one's purpose in a group activity that is culturally and socially
essential.

2.2.4 Denison Organizational Culture Model

The Denison organizational culture model emphasizes on the linking management

practices of assumptions and beliefs when addressing the culture, efficiency and
effectiveness of the organization. There are four key cultural traits: ‘involvement,
consistency, adaptability and mission’.

(i) Involvement

Involvement is “the range of employees working together to perform individual

tasks at all levels of the organization and to achieve the organization's goals” (Denison,
1990). An effective organization empowers and engages employees to build an
organization around a team and develop human skills at all levels. An organizational
culture characterized by strong participation creates ownership and responsibility to
encourage employees to participate. Employees feel that decisions that affect their work
only have a certain impact on their work, and that their work is directly related to the
goals of the company,

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 (ii) Consistency

Consistency is the core value and internal system of an organization that supports
efficiency, and effectiveness at all levels and at all organizational levels. A common
perspective, beliefs, and values among members strengthen internal cooperation and
promote the meaning and identity of members (Denison, 1990). If the organization is
consistent and well-integrated, the organization can be effective one.

(iii) Adaptability

The organization ability to scan the external environment and meet the needs of
changing customers and other stakeholders can be defined as adaptability. “The
organization maintains a norms and beliefs that support stake and interpret environmental
signals and support their abilities through changes in internal behavior that increase the
likelihood of survival” (Denison, 1990). Adaptive organizations are turning the needs of
the organizational environment into behavior.

(iv) Mission

The mission is that each individual knows where the organization and members
are going and how they are trying to get to help each individual attain organizational goals.
“If the organization has clear objectives and directions that define organizational goals and
strategic goals and express the vision of how the organization looks in the future, this
organization can achieve success” (Denison & Neale, 2008). It provides clear directions
and goals that define the appropriate behavioral processes for organizations and members.
Organizations can embody current behavior by envisioning the future state of their choice
with a sense of mission.

2.3 Organizational Commitment

According to (Meyer & Allen, 1984), organizational commitment is “the

psychological relationship between an employee and the organization and encourages
employees to adhere to the organization so that they do not voluntarily leave”. A strong
belief and acceptance of the organization's goals and values, a willingness to make
substantial efforts on behalf of the companies, and a commitment as a strong desire to

21
maintain organizational membership. Thus, commitment occurs when a person links
internal interests to a consistent line of activity.

2.3.1 Importance of Organizational Commitment

Organizational commitment is recognized as an action applied by internal

normative pressures to achieve organized goals and benefits. These internalized standards
reinforce the tendency towards personal behavior rather than considering the consequences
of these behaviors. Organizational commitment also serves as an important role in success.
Commitment means an intention to sustain a series of actions. Organizational commitment
is linked to increased job satisfaction, job performance, and organizational adaptability, as
well as absence from work and reduced motivation for work (Meyer & Allen, 1997). As a
result, organizations often seek to promote employee engagement to achieve stability and
reduce costly turnover.

2.3.2 Meyer and Allen’s Model of Organizational Commitment

The three-component model of Meyer et Allen's organizational commitment has

become the primary model for studying workplace commitments. The model consists of
three simultaneous thoughts, including affective, normative, and continuance
commitments, where employees are organized and committed. Affective commitments are
the development of the organization and employees through the experience of positive
work. It reflects commitments based on the emotional linkages that are made. Normative
commitments are based on recognized obligations to the organization. Continuance
commitment reflects the underlying commitments, which are the economics that are
recognized when leaving an organization. It reflects commitments based on social costs,
which are modeled on employee turnover and citizenship behavior, and job performance.

(i) Affective Commitment

It is the psychological attachment to the organization. Emotional effort is

considered a more effective measure than the promise of the organization. “Affective
commitment is almost natural when employees are emotionally involved in the
organization and constantly enjoy members” (Meyer & Allen, 1984). According to
Mowday (2004), “the degree of affective commitment is based on the intensity of positive

22
emotions for an organization and the motivation to increase the employee's emotional ties
to that organization”. Individuals who display a strong affective commitment will go to
work within the organization because they want to work, and they want to provide an effort
for their own organization in essence.

(ii) Normative Commitment

A second component of commitment is normative commitment, which identified as

the obligation dimension and also referred to as moral commitment. (Meyer & Allen, 1991)
described “normative commitment refers to an employee’s feelings of obligation to remain
with the organization”. Committed individuals may exhibit certain behaviors not because
they think that doing so is to their own personal benefit, but rather because they believe
that it is the right and moral thing to do.

(iii) Continuance Commitment

The third model is continuance commitment in which employees desire to keep

their relationship with an organization not due to an emotional attachment but rather to the
costs involved if they decide to leave. The employees want to remain in an organization
because of the cost associated with leaving. The availability of alternatives of other jobs is
negatively correlated with continuance commitment.

2.4 Job Performance

Job performance is as "the value compiled for the organization of a series of

behaviors where employees contribute directly or indirectly to the organization's goals".
The success of the organization depends on the superior performance of the employee, as
the quality of the business process is affected by the employee's performance. Therefore,
effective employee performance is essential to improve the organization's system. The
scale for performing tasks is very diverse and multidimensional. The Goodman & Svyantek
job performance scale was used to assess job performance. Developed in two stages.
Contextual performance: defined as the activity given to the social and psychological core
of an organization. Achievements can be defined as the effects and contributions that
contribute to the technology core of an organization by directly implementing parts of
technology and processes, or indirectly providing the necessary materials and services.

(i) Contextual Performance

23
 It is important to organizations because higher levels of such activities facilitate the
meeting of organizational goals and organizational performance (Allen & Rush, 2001) and
help to shape the internal environment of the organization. The activities such as
volunteering to carry out actions that are not formally part of the job, helping others,
following organizational rules and procedures when personally inconvenient, endorsing
and supporting organizational objectives, and persisting with extra effort to successfully
complete one’s task activities can be stated as contextual performance.

(ii) Task Performance

It is defined as “those activities that are directly involved in the accomplishment of

core job tasks, or activities that directly support the accomplishment of tasks involved in
an organization's technical core” (Borman & Motowidlo, 1993). The committed employees
invest physical, cognitive, and emotional energies into work to enhanced performance and
pay more attention to focus on responsibilities as they are emotionally connected to job.

2.5 Previous Studies

Organizational culture is “the single most important factor for success or failure and
has the greatest potential to affect organizational improvements”. “New ways of working,
globalization, increased competition and change in technology have created a greater need
for strategic innovation and co-ordination and integration across units” (Schein E. , 1992).
There is an indirect and limited way of getting at the features of culture that are most
important according to major theorists.

2.5.1 Effect of Organizational Culture on Organizational Commitment

There are a number of research models assessing organizational commitment and

its relationship with organizational cultures. (Selznick, 1957) initiated “the analysis of the
relationship between organizational culture and commitment and conceptual analysis with
the idea that organizational culture promotes commitment”. (Marcoulides & Heck, 1993)
provided an excellent quantitative analysis to prove that organizational culture promotes
commitment. (Deal & Kennedy, 1982) tried to explore the possibility that a positive culture
promotes positive attitudes, but there was not much discussion about performance as such.

24
 (Bass & Avolio, 1993) concluded that “certain cultural values promote specific
types of leadership, which in turn promotes commitment”. Research shows that
commitment can create lower costs, fewer defects, higher productivity and greater returns
under the influence of culture (Cutcher-Gershenfeld, 1991). Commitment created by
quality of work life as a manifestation of organizational culture, quality circles, and labor
management teams can increase productivity (Kenney & Florida, 1995). Moreover,
commitment created by organizational culture has positive and significant effects on
organization’s productivity.

2.5.2 Effect of Organizational Commitment on Job Performance

In every organization job performance and organizational commitment has been

given the greatest importance. It is vital that every employee of an organization needs to
give his best performance, along with highest commitment to organization goals for its
success in long term. (Meyer & Allen, 1991) defined a committed employee as being the
one “who stays with an organization, attends work regularly, puts in a full day and more”.
Committed employees are actively engaged in developing specific tasks and knowledge to
contribute creatively by improving job performance to achieve higher level of success.
(Allen & Meyer, 1990) of organizational commitment suggested three types of
organizational commitment that are, affective commitment which measures an employee’s
emotional attachment to, normative commitment reflects pressures on an employee to
remain with an organization resulting from organizational obligations.

2.6 Conceptual Framework of the Study

Organizational culture has been one of the most studied and theorized concepts in
organizational development. “New ways of working, globalization, increased competition
and change in technology have created a greater need for strategic innovation and co-
ordination and integration across units” (Schein E. H., 1992). “Culture is the single most
important factor for success or failure and has the greatest potential to affect organizational
improvements or hold it back” (Deal & Kennedy, 1982). To implement business strategies
to improve organization performance, it needs to understand the current status of the
organization culture to adapt and make changes. With this background, the relationship
between organizational culture and organizational commitment and the relationship

25
between organizational commitment and job performance are explored. Therefore, the
conceptual framework of this study is as follow:

As shown in Figure (2.5), the conceptual framework of this study. This framework
consists of three parts: first, four influencing factors of organizational culture and second,
the outcome of organizational commitment, and the third, job performance of the
employees. The first component of the proposed model suggests four dimensions of
organizational culture, namely consistency, involvement, adaptability and mission and how
these organizational cultures influence the organizational commitment. The second
component of the model is direct effect of organizational commitment which is measured
by affective, normative, and continuance commitment and it also describes how
organizational commitment has an effect on job performance of the employees as the result.
Organizational with a higher combined measure of the four culture traits show higher level
of job performance which is the result of organizational commitment. Having sound
organization culture will lead to effective organizational commitment of the employees and
having both variables enhances the job performance of the organization. Overall, there is a
strong view in the literature that organizational culture leads to increased job performance.

26
 CHAPTER 3

ORGANIZATIONAL CULTURE OF AYA MYANMAR GENERAL

INSURANCE CO., LTD

This chapter includes the organizational culture of AYA Myanmar General

Insurance Co., Ltd. This study was explored from an employee perspective. This chapter
gives an overview of AYA Myanmar General Insurance Co., Ltd. The company’s historical
background, vision, mission and corporate value, brand promise, business, business ethics,
corporate social responsibility, products and services are also included in this chapter. This
chapter also includes research design and reliability measurements for this study.

3.1 Profile of AYA Myanmar General Insurance Co., Ltd

AYA Myanmar General Insurance Co., Ltd is a leading insurance company in

Myanmar. This company granted license by Insurance Business Supervisory Board (IBSB)
under Ministry of Finance (MOF) to operate as one of the private insurance companies
offering both Life and General Insurance in June 2013. The opening ceremony of Yangon
Head Office in No. 23, Kan Yeik Thar Street, Tha Pyay Gone Ward, Mingalar Taung Nyunt
Township, Yangon on 9th March 2014.

AYA Myanmar General Insurance Company Limited has entered into a joint
venture agreement with Sompo Japan Nipponkoa Insurance Inc to form AYA SOMPO
Insurance Co., Ltd on 7th September 2019. During these years, the company has been
implementing growth, objective and strategy of the company. This company has already
provided 1 head office, 2 regional office, 10 branches, and 50 customers services kiosks.

3.1.1 Vision, Mission and Value of AYA Myanmar General Insurance Co., Ltd

The company strives to help Myanmar individuals and families live a healthier
and happier life. The vision of the company is “to be recognized as the partner for life and
play a leadership role in driving social and economic development of Myanmar”. The
mission of this company is “to be a leading insurer in Myanmar, recognized for its

27
excellence in service and technology, and admired for its best underwriting practices that
provide peace of mind”.

The company’s brand promise is an insurance company for individual and

corporate customers looking for the most convenient, efficient, reliable and personalized
service. In accordance with business ethics, the company will facilitate insurance for the
general public by providing fast and convenient quality and service, as well as developing
innovative products that meet customer needs. They aim to play a leading role in promoting
social and economic development by putting value into practice and provides long-term
benefits to customers, employees, shareholders, and the communities they serve.

3.1.2 Products of AYA Myanmar General Insurance Co., Ltd

AYA Myanmar General Insurance Co., Ltd provides a full range of general
insurance services. The insurance products include (1) Comprehensive Motor Insurance (2)
Fire Insurance (3) Marine Cargo Insurance (4) Inland Transit Insurance (5) Marine Hull
Insurance (6) Health Insurance (7) Travel Insurance (8) Cash in Safe Insurance (9) Cash in
Transit Insurance and (10) Fidelity Insurance.

3.1.3 Organizational Structure of AYA Myanmar General Insurance Co., Ltd

The hierarchical structure of the company drives the long-term business activity.
The organization structure of AYA Myanmar General Insurance Co., Ltd is shown in
Figure (3.1). According to this figure, it has seven departments in order to operate
efficiently and make profit. These seven departments are risk management, underwriting
claim, business, support and corporate affair. Under business division, there are marketing
& PR, Business Development, Regional Development and Business Administration are
included. There are information technology, administration, and human resource
departments in support division. Claim department distinguished into motor and non-
motor. Fire, motor, marine, and other are classified in underwriting department.

28
 According to organization structure of AYA Myanmar General Insurance Co., Ltd,
the coordination of activities is made through the business organizational structure. AYA
Myanmar General Insurance Co., Ltd assigns responsibility to the entire organization by
providing a clear organizational structure, providing employees with the appropriate
authority to fulfill their responsibilities, and providing processes to maintain accountability
for employee performance and setting clear guidelines for delegation and accountability.

3.2 Organizational Culture of AYA Myanmar General Insurance Co., Ltd

AYA Myanmar General Insurance Co., Ltd is guided by the value of the
company, and what the company wants to do, where the company wants go to attain
objectives. The company's corporate value is reliable, innovative, customer-centric and
ethical. It is continually striving to improve products and services to provide better service
to customers. Fair trading is the heart of corporate culture as an organizational culture, and

29
the company does it best to provide customers with the best service in a timely, fair,
transparent and professional manner. This company is fair and reasonable when it comes
to dealing with customers and acts for the best interests. In conducting their business, they
act in a socially responsible and environmentally conscious manner. It encourages the
development of human capital through internal and external education and vocational
enhancement. The company will do its best to practice governance, provide appropriate
information disclosure and increase shareholder value.

This company fulfill their commitments as responsible citizens and employees. It

consistently treats customers and company resources with the respect they deserve. It aims
to create employment opportunities and develop young employees into future leaders
across the country with the vision of playing a leadership role in diving social and economic
development in Myanmar. This company believe that people are their greatest assets, and
everyone should have the opportunity to succeed.

3.2.1 Learning and Development

Continual development of human capital is company’s priority as an organization

is responsible for ensuring that employees have the appropriate skills and knowledge to
fulfil the organization’s strategic and operational objectives. Employees must be learning
consistently in order to acquire the knowledge and skills needs to be successful. This
company provide regular learning and development plans all year round not only for new
employees but also for the continuous development for existing employees. Programs
conducted by professional trainers in-house or outsourced are tailored to meet employees.

3.2.2 Job Enrichment, Job Enlargement, and Job Rotation

The company provides career mobility opportunities across different business units,
allowing employees to understand and learn different set of skills across various functions.
This company help all the employees achieve their full potential. They are commitment to
creating a conductive work environment – one that is inclusive welcome innovation and
encourages continual learning and development.

30
3.2.3 Training Evaluation

Training evaluation is a mandatory process for all types of training programs

completed at company. Constructive advices and other necessary affairs are to be reported
to respective Head of Department for better enhancements on training programs. It also
takes a long-term view in nurturing employees and has regular programs to help with
development for workforce.

3.2.4 Innovation

The improvement on main pillars such as pushes technological boundaries, human

capital building that coach employees into future leaders and build insurance awareness
across the nation to promote financial inclusion. With the digitization of the process and
workflows, the company can be able to expand distribution channels more rapidly,
providing a completive advantage among others, at the same time, getting the company
ready for the anticipated market liberalization.

3.3 Research Design

This study aims to explore the effect of organizational culture on organizational

commitment at AYA Myanmar General Insurance Co., Ltd and to analyze the effect of
organizational commitment on job performance at AYA Myanmar General Insurance Co.,
Ltd. To achieve these objectives, both primary and secondary data are used in this study.
Primary data is collected from survey with structured questionnaire. Secondary data is
collected from journals, textbooks, company records, company’s yearbook and company
websites. Multiple Linear Regression Analysis is used in this study.

An analytical and quantitative research approach is applied in conducting this study.

The reason for adopting the analytical research is that the researcher has to use facts and
information which are available and after collecting these data the researcher can analyze
and make a critical evaluation on the materials in the method of analytical research. An
analytical research attempts to establish why it is that way or how it come to be. In this
study, the analytical method is applied by using the structured questionnaires of five-point
Likert scale only at the head office of AYA Myanmar General Insurance Co., Ltd, in other
words, this study does not have any effect on other branches of the company.

31
 This consisted of all employees of the organization based at the company’s
headquarters. In this case, the overall population of the company’s employees is 253. The
simple random sampling method is applied and the Yamane (1967) formula is used to
identify the sample size of 155 employees. The structured questionnaires are distributed to
randomly select 155 employees at all levels (Top, Middle and Bottom levels). Structured
questionnaire was used for data collection and one questionnaire for every employee who
was participated in the survey, was granted. A drop and pick approach method were used
while administering the questionnaires.

The survey question used for this study includes four parts to collect necessary data;
Section (A) includes general information of respondents, section (B) is for organizational
culture, section (C) is for organizational commitment, and last section (D) is for job
performance of employees. the questions in section (A) are closed questions. (i.e. the
respondents are required to choose one or more out of given possible answers). The
question in section (B), (C), (D) are measured with a five-point Likert scale ranging from
“strongly disagree to strongly agree”.

3.4 Reliability Test

Reliability analysis is determined by obtaining the proportion of systematic

variation in a scale, which can be done by determining the association between the scores
obtained from different administrations of the scale. According to study, it consists of three
parts. First, 24 questions were used to measure the employee opinions on organizational
culture approaches at AYA Myanmar General Insurance Co., Ltd. Second, 18 questions
were used to measure the organizational commitment and finally, 12 questions are used to
identify the job performance of the employees in an organization.

According to the Table (3.2), the results show that Cronbach’s Alpha coefficient of
most of these sub-dimensions ranged from 0.7 to 0.8. This indicates that questionnaire has
a high level of internal consistency for the scale and it can be concluded to be an acceptable
one. The two reliabilities of the instruments are good because the values are ranging from
0.6 to 0.7. Therefore, it can be interpreted that the internal consistency of the measure used
in this study can explain that results of the respective constructs are expected to be same in
different situation and the data is considered to be reliable and valid.

32
3.5 Demographic Profile of Respondents

A total of 155 questionnaires are distributed among the company and those
questionnaires are used for statistical analysis. Demographic data is collected from 155
employees by using stratified random sampling method with structured questionnaire and
the demographic profile is composed of gender, age, education level, position level, service
years, departments of respondents. In questionnaire, all of the items are described with five-
point Likert Scale. Respondents can show the organizational culture and job performance
of employees with five score (1 to 5: Strongly Disagree to Strongly Agree). The
demographic profile of respondents is discussed in the Table (3.2) as follow. The data are
presented in term of number and percentage of respondents as below.

33
 Table (3.2) Demographic Profile of Respondents

Demographic Factors No. of Respondents Percentage (%)

Total 155 100
Male 59 38
Gender
Female 96 62
Under 24 48 31
25 - 30 76 49
31 - 35 19 12.3
Age (years)
36 – 40 8 5.2
41 – 55 1 0.6
45 and above 3 1.9
Graduate 138 89
Education
Postgraduate 5 3.2
Level
Master degree 12 7.7
Junior Staff 50 32.3
Senior Staff 21 13.5
Assistant Supervisor 24 15.5
Position Level
Supervisor 28 18.1
Assistant Manager 17 11.0
Manager 15 9.7
Below 1 year 64 41.3
Services 1 - 2 years 34 21.9
(years) 2 – 3 years 26 16.8
Above 4 years 31 20.0
Human Resource 16 10.3
Administration 12 7.7
Operation 31 20.0
Finance 13 8.4
Department Marketing 23 14.8
IT 18 11.6
Claim 35 22.6
Corporate Affairs 2 1.3
Audit 5 3.2
Source: Survey Data, 2019

34
 The respondents are described by male and female with frequency and percentage.
Age is described by under 24 years, 24-30 years, 31-35 years, 36-40 years, 41-45 year and
over 45 years respectively. Furthermore, the education sector is described into graduate,
post-graduate, and master. The item, the current position of the respondents is set into
junior assistant, senior assistant, assistant supervisor, supervisor, assistant manager and
manager. Then, the service year or tenure of the respondents are categorized into under 1
year, 1-2 years, 2-3 years and above 4 years. For their department, Human resource, admin,
operation, finance, marketing, customer services, information technology, claim, audit, and
corporate affairs departments are described.

It shows the respondents by gender, age, education level, position level, services
years and department. For gender category, there are a total of 155 employees participated
in this survey. 68% of respondents are females which are majorities in a company and 32%
of respondents are male. According to these facts has more female employees because of
the nature of the work e.g. sales and marketing.

Moreover, 31% of the age of respondents are below 24, 49% of respondents are
between 25-30, 12.3% of respondents are between 31-35 years, 5.2% of respondents are
between 36-40 years, 0.6% of respondents are between 41-45 years, and 1.9% of
respondents are 45 and above. According to these factors, age less than 24 years and
between 25-30 years of employees are higher than the rest range of employees’ age.
Therefore, most of the young and adult people have been working in this company.

For Educational level, 89% of respondents are graduate, 3.2% of respondents are
post-graduated holding other certifications, diplomas and so on and 7.7% of respondents
are master-degree holders. For the facts, the company mostly appoints fresh graduates from
bachelor degree holders. The educational level of the sample majority has bachelor degree.

Various job positions held by employees participated in this research. The result
describes that the respondents from Junior Assistant are majority with 32.3% of 155
respondents and the respondents from Senior Assistant, Assistant Supervisor, Supervisor,
Assistant Manager and Manager are 13.5%, 14.5%, 18.1%, 11.0% and 9.7% respectively.
The minority of respondents are Manager which is 9.7%.

Service year refers to the duration of the employee who has been working only at
the same company. The majority of the respondents have been working in an organization
below 1 years which is a total of 41.3%. Also, 21.9% of respondents have been working

35
within an organization between 1 and 2 years. Then, 16.8% of respondents are working
with an organization for 2-3 years and 20% of respondents are working for above 4 years.
According to the above table, the number of participants who served the organizational
shorter is higher than those who served for higher period.

Concerning with the departments of employees, the respondents from Claim

department formed the majority with 22.6%, and the respondents from Operation
departments formed the second majority with 20.0%. The employees from Human
Resource, Admin, Finance, Marketing, and IT are 10.3%, 7.7%, 8.4%, 14.8% and 11.6%,
respectively. Corporate Affairs Department (1.3%) and Audit (3.2%) are also participated
in this research.

36
 CHAPTER 4

ANALYSIS ON THE EFFECT OF ORGANIZATIONAL CULTURE

ON ORGANIZATIONAL COMMITMENT OF AYA MYANMAR
GENERAL INSUARNCE CO., LTD

In this chapter, consists of five main sections. The first section is to examine the
organizational culture of AYA Myanmar General Insurance Co., Ltd. The second section
is to explore the organizational commitment of AYA Myanmar General Insurance Co., Ltd.
In the third part, the effect of organizational culture on organizational commitment is
analyzed. The fourth part is to analyze the job performance of employees at AYA Myanmar
General Insurance Co., Ltd. Finally, the effect of organizational commitment on job
performance of employees is analyzed in AYA Myanmar General Insurance Co., Ltd.

4.1 Employee Perception on Organizational Culture of AYA Myanmar General

Insurance Co., Ltd

In this paper, to examine the organizational culture, approaches of the

organizational culture consisting of 24 question on five-point Likert scale was used. Four
organizational culture approaches were explored by questionnaires that included
involvement, consistency, adaptability and mission approaches.

4.1.1 Involvement

By participating, individuals in an organization work together to accomplish

missions and achieve organizational goals. Table (4.1) describes the employee perception
on involvement. The highest mean, 3.89, shows that information is widely shared so
employees can get it when they need it. The lowest average score is 3.49, which indicates
that employees have minimal investment in skills development. The overall average score
is 3.66 and the company creates a sense of ownership that reinforces its greater commitment
through participation, and most employees own work and believe own part of the
organization.

37
4.1.2 Consistency

Consistency is an internal system that supports fundamental values of an

organization by providing efficiency and effectiveness at all levels.

According to results, Table (4.2) describes employee perceptions for consistency of

organizational culture. The highest average score is 3.76, and most employees agree that if

38
a disagreement arises, issues that are hard to work hard to achieve a "win-win" solution is
also the least likely to reach consensus with an average score of 3.46, which leads leaders
and managers to share a set of values that can create a sense of identity and clear employee
expectations. The overall average score of 3.56 which indicates that the company provides
a central source of integration, coordination and control, and that the internal governance
system is based on agreed support.

4.1.3 Adaptability

An organization maintain norms and belief that support ability to receive,

interpret, and transform signals in environment, transforming chances of survival, growth,
and development into changes in increased internal behavior.

Table (4.3) shows employees' perceptions of adaptability. The highest average

score is 4.15 and respondents agree that learning is an important goal for the company. The
lowest average is 3.4 but is almost cut to an average of 3.5. This may be due to the fact that
respondents are working under conditions of constant change that are important for the
development of their organizational culture. The overall average is 3.81, and organizations
can conclude that they can recognize and respond to the environment and customers, and
that the company can restructure, institutionalize and adapt its actions and processes.

39
4.1.4 Mission

Organizations and members know where they are going, how they will arrive,
and how each individual can contribute to the success of the organization.

According to the survey results, Table (4.4) explains employee perceptions about
the mission characteristics of organizational culture. As a result, strategic direction and
intent, vision has the highest mean score of 3.75. It can be said that organizations have a
common view of hope, future status, as well as clear strategic intent, strategic planning and
strategic direction. The minimum average score is 3.61 and a score above the average 3.5
indicates a clear direction for the employee's goals and tasks. The overall average is 3.68,
and respondents will agree to let people know why the mission is passed on to employees
and why people do what they do and how they do it every day.

4.1.5 Summary of Employee Perception on Organizational Culture

In this study, Denison's organizational culture model is used to understand the

organizational culture of AYA Myanmar General Insurance Co., Ltd. These four
characteristics were also important predictors of the organization's dedication and overall
employee performance.

40
 The average score distribution of the four cultural characteristics is shown in Table
(4.5). Comparing the four main cultural traits of the company in Table (4.5), the
adaptability traits is 3.81, which represents the highest average score. The mission received
the second highest score and indicates that employees know the mission and development
program for the company's mission and goals. The average value of participation is 3.66,
which indicates that employees are mostly satisfied with the information they have access
to and consider it an essential element of cultural development. The least influential factor
is consistency with the mean value of 3.56.

From the above analysis, the overall average of four organizational cultures can
be concluded if the forces affecting the organizational culture are critical to the company’s
work, and all respondents who affect efficiency consider all factors. Because of its highest
adaptability, this shows the relative importance of this characteristic in the insurance
industry, and the findings of this survey seem to support the need to respond to customer
needs because it is in the service industry. The company is customer-focused, enabling
employees to effectively respond to changing customer needs, which in turn affects their
ability to adapt to changing needs of customers and the environment.

Based on the classification and the above results, AYA Myanmar General
Insurance Co., Ltd can be considered externally. In the variable analysis of stability and
flexibility, the company is the most flexible insurance company in both involvement and
adaptability. As a result, four organizational cultures were used to determine research that
impacted the organization's organizational culture and to improve the organization's
commitment to affect the efficiency of the company.

41
4.2 Organizational Commitment of Employees at AYA Myanmar General
Insurance Co., Ltd

Organizational commitment can be seen in specific expansions and high job

satisfaction and job performance where employees feel deeply attached to the organization
and members. In order to explore the organizational commitment of AYA Myanmar
General Insurance Co., Ltd, a questionnaire containing 18 structured questions on a 5-point
Likert scale is used.

4.2.1 Affective Commitment

Affective commitment is defined as the emotional attachment of an organization

and its employees and is related to demographic characteristics, work experience, and
organizational participation.

Table (4.6) presents employee perceptions of affective commitment that can lead to
organizational commitment. According to the survey data, the highest average score is 3.91,
but the sentence that respondents feel connected to a part of the family in their organization
and feel the organization's problem as their own problem has the second highest mean value
3.80. Employees resolve dissatisfaction as their problem when a problem is raised. The

42
lowest average score is 3.5 indicating that employees very pleased to have the rest of career
in this organization.

The overall average score is 3.68, and most employees agree to be proud of others
about working in the organization. Respondents at this company feel that they have a strong
commitment to most organizations and think that their problems are their own. This can be
concluded that the employees of the company are dedicated to the dedication of the
organization.

4.2.2 Normative Commitment

Normative commitment refers to the sense of duty of employees in the organization.

Employees with normative commitment remain in the organization.

Table (4.7) shows that employee perception on normative commitment. The result
show that the statement of most of the employees believes that the organization deserve
their loyalty has the highest mean score 3.69. Because they think loyalty is important, they
feel a duty to the organization because they own a lot in their organization. The lowest
average score is 3.25 and if they leave the organization now, they will feel guilty. The
overall average score is 3.46, which shows that most of the company's employees agree
with what they have learned and believe in the value of staying loyal to the organization

43
and don't want to leave the organization to maintain loyalty and duty. This can be concluded
that employees of AYA Myanmar General Insurance Co., Ltd have a normative
commitment to the organization.

4.2.3 Continuance Commitment

A continuity commitment is just what employees believe will be expensive to leave

organization.

Employees' perception of normative commitments is shown in table (4.8).

According to the results, most respondents agree that there are too few options for
employees to consider placing this organization at an average value of 3.74. They are afraid
of the lack of available alternatives if they leave this organization. They also need to stay
with the organization and as much as they want. The lowest mean score is 3.36, indicating
that they might consider working elsewhere if they had not already put so much of
themselves into this organization. The overall mean score is 3.48, nearly to the cut off mean
3.5. In this situation, most respondents believe there are too few options to consider leaving
this organization at this time due to ongoing commitments. This can be concluded that the
employees have continuance commitment to organization.

44
4.2.4 Summary of Employee Perception on Organizational Commitment

Committed employees are more productive and work with a focus on quality to
increase job performance of employee and the profitability of their organization.
Organizational commitment on the part of all employees can only be achieved through
better management practices and organizational culture.

The distribution of average scores of the four cultural characteristics is given in the
table (4.9). The table (4.9) shows that most respondents have an affective commitment to
the company. Affective commitment has the highest mean score is 3.68 among the three
commitments which indicate that employees have emotional attachment and continue to
work in this company because they are intrinsically willing to make an effort for the
company. The second highest commitment respondents have towards their organization is
the continuance commitment with mean score 3.48 which indicates that the employees
aren’t probably considering the cost of leaving and staying in the organization. The last
normative commitment has the least mean score of 3.46. This indicates that employees
have a moral obligation toward their organization. As a result, there is an affective
commitment to the company, employees with a strong emotional commitment motivate
and make more meaningful contributions to higher levels of job performance than
individuals who have a sustained or normative commitment.

4.3 Job Performance of Employees at AYA Myanmar General Insurance Co., Ltd

To explore employee performance, Goodman & Svyantek's job performance

measures were used to evaluate employee performance.

45
4.3.1 Contextual Performance

Contextual performance is defined as activities that contribute to the social and

psychological core of an organization.

The table (4.10) shows the employee's perception of their situational performance.
According to the survey results, the highest average score is 4.01. Many employees agree
that they have a habit of keeping time on time in the morning and at lunch. The second
highest average score is 4.00, which helps the colleague work when the employee is absent.
The least affected turned out to be advance notice if you can't go to work. According to the
overall average score of 3.64, most employees with organizational commitments invest
more to contribute to the social and psychological core of the organization.

4.3.2 Task Performance

A task performance is defined as the effect of performing an activity in which a job

contributes to the technical core of an organization.

46
 Table (4.11) shows the employees perception on contextual performance of
employees. According to survey result, the highest mean score is 3.90, indicating the
employees can fulfill all the requirement of the jobs. The lowest mean score is 3.12 because
most of the employees think that they cannot meet the criteria for the performance of the
job. The overall average score is 3.67, which is higher than the cutoff average of 3.5, which
indicates that employees can implement activities that contribute to the technical core of
the organization by either directly implementing some of the technical processes or
indirectly providing the necessary materials or service.

4.3.3 Summary of Employee Perception on Job Performance of Employees

It consists of analysis on employee perception on job performance of employees.

The summary of overall mean value of two job performance factors are shown in Table
(4.12). According to the result, most of the respondents agree that they perform the task
performance than contextual performance. They can perform more task activities that
contribute either directly or indirectly to the technical core of the organization.

47
4.4 Effect of Organizational Culture on Organizational Commitment of AYA
Myanmar General Insurance Co., Ltd

Analyze the impact of organizational culture on organizational commitment.

Multiple regression models are developed to analyze which organizational cultures affect
organizational commitment. It was used to test the impact of independent variables in
organizational culture: involvement, consistency, adaptability, and mission to a single
dependent variable of organizational commitment: affective, normative, continuance
commitment.

4.4.1 Effect of Organizational Culture on Affective Commitment

In this study, an analysis of the impact of organizational culture on affective

commitment is performed. Multiple linear regression analysis is applied to investigate the
effect of a single dependent variable, an independent variable on emotional commitment.
The results of multiple linear regression are shown in Table (4.13).

According to Table (4.13), adjusted R square is 77.5% and it indicates that the
model can explain 77.5% of the variance of dependent variables (organizational
commitment) according to independent variables ((involvement, Consistency,
Adaptability, Mission). Durbin-Watson value is 1.652 (nearly 2) and indicates that there is
no auto correlation in sample. All the VIFs (variance inflation factor) of independent
variables are less than 10. The value of F-test, the overall significance of model, turned out
highly significant at 1% level.

48
 There is a positive relationship between positively important engagement and
affective commitment in the 99% confidence interval. The standardized coefficient (Beta)
has the value of 0.763 indicating that the involvement has the contribution to increase
affective commitment of employees.

There is positive relationship between consistency and affective commitment which

is positively significant at 99% confidence interval. The standardized coefficient (Beta) has
the value of 0.119 indicating that the consistency has the contribution to increase affective
commitment of employees of the organization.

There is positive relationship between adaptability and affective commitment which

is positively significant at 95% confidence interval. The standardized coefficient (Beta) has
the value of 0.119 indicating that the consistency has the contribution to increase affective
commitment of employees of the organization.

The involvement has the greatest contribution to the effect on affective commitment
of employees working at organization. Next to involvement is the consistency and

49
adaptability which also has contribution towards normative commitment. On the other
hand, it means that mission is not significant at any significant value. This means that
employees could not recognize the mission associated with their emotional commitment in
the company.

Since the main responsibility of employees is to provide insurance services to

customers who basically deal with customers every day, it is very important to be able to
make their own decisions in a timely and efficient manner in their daily work. They must
rely on the team's efforts to get the job done, working collaboratively towards a common
goal where all employees are responsible for each other. Competition between companies
and achieving successful results can only be achieved if the company invests in the
development of the skills of its employees to maintain a competitive and sustainable
business model. Employees in an organization feel strong ownership that is dedicated to
their work and will certainly drive the company's overall performance.

The company’s working procedure like operating and claim procedure clearly
described guidelines, clear directions of workflow and referral system help assure to
produce the best possible outcomes for both clients and employees even when they
encounter intense situations. Therefore, different functions and units of the company are
able to work together well to achieve common goals.

In conclusion, the more the management of AYA Myanmar General Insurance Co.,
Ltd implement involvement, consistency, adaptability of the organization, the affective
commitment of employees will increase. This can lead the employees to become
emotionally attached to and enjoy continuing membership in organization because they
want to remain in an organizational relationship.

4.4.2 Effect of Organizational Culture on Normative Commitment

An analysis of the impact of organizational culture on normative commitment is

carried out. Multiple linear regression analysis is applied to investigate the impact of
independent variables in organizational culture for a single dependent variable of normative
commitment.

50
 According to Table (4.14), R square is at 23.1 percent and adjusted R square is 21.1
percent. Durbin-Watson value is 1.823 (nearly 2). All the VIFs (variance inflation factor)
of independent variables are less than 10. Thus, there is no problem of multicollinearity
(correlation between independent variables) in this study. The value of F-test, the overall
significance of model, turned out highly significant at 1% level.

There is positive relationship between consistency and normative commitment

which is positively significant at 95% confidence interval. It can be said that taking all other
independent variable at zero will lead to 0.189 unit increase in effect on normative
commitment. The standardized coefficient (Beta) has the value of 0.208 indicating that the
consistency has the contribution to increase normative commitment of employees.

There is positive relationship between mission and normative commitment which

is positively significant at 95% confidence interval. It can be said that taking all other
independent variable at zero will lead to 0.139 unit increase in effect on normative

51
commitment. The standardized coefficient (Beta) has the value of 0.170 indicating that the
mission has the contribution to increase normative commitment of employees.

Regarding to the Table (4.14), the consistency has the greatest contribution to the
effect on normative commitment of employees working at the company. Next to
consistency is the mission which also has contribution towards normative commitment. On
the other hand, involvement and adaptability do not help to improve the normative
commitment of employees. Employees in an organization want to contribute to the
company's objectives, and these clear goals and objectives can be linked to their mission,
vision and strategy, and give employees clear direction in their work. Therefore, the minds
and thoughts of the employees who work for the company contribute to the normative
commitment. In conclusion, the higher the management's consistency and mission, the
higher the normative commitment of its employees. This can be a specific behavior because
employees feel obliged to the organization and believe that what they do is right and moral
rather than about their own personal interests.

4.4.3 Effect of Organizational Culture on Continuance Commitment

The multiple linear regression analysis is applied to examine the impact of

independent variables of organizational culture on a single dependent variable of
organizational commitment continuance commitment.

52
 According to Table (4.15), R square is at 53.5 percent and adjusted R square is 52.3
percent. This indicates that the model can explain 52.3 percent about the variance of the
dependent variable (Organizational Commitment) with the independent variable
(involvement, Consistency, Adaptability, Mission). Durbin-Watson value is 2.0 (nearly 2).
It indicates that there is no auto correlation in sample. All the VIFs (variance inflation
factor) of independent variables are less than 10. Thus, there is no problem of
multicollinearity (correlation between independent variables) in this study. The value of F-
test, the overall significance of model, turned out highly significant at 1% level.

There is positive relationship between involvement and continuance commitment

which is positively significant at 99% confidence interval. It can be said that taking all other
independent variable at zero will lead to 0.619 unit increase in effect on continuance

53
commitment. The standardized coefficient (Beta) has the value of 0.516 indicating that the
involvement has the contribution to increase continuance commitment of employees.

There is positive relationship between consistency and continuance commitment

which is positively significant at 99% confidence interval. It can be said that taking all other
independent variable at zero will lead to 0.360 unit increase in effect on continuance
commitment. The standardized coefficient (Beta) has the value of 0.254 indicating that the
consistency has the contribution to increase continuance commitment of employees.

There is positive relationship between mission and continuance commitment which

is positively significant at 99% confidence interval. It can be said that taking all other
independent variable at zero will lead to 0.225 unit increase in effect on continuance
commitment. The standardized coefficient (Beta) has the value of 0.200 indicating that the
mission has the contribution to increase continuance commitment of employees.

Regarding to the Table (4.15), the involvement and consistency has the greatest
contribution to the effect on continuance commitment of employees working at the
company. Next to these two is the mission which also has contribution towards continuance
commitment. On the other hand, it also means that adaptability is not important at
significant values. This means employees cannot recognize the adaptability associated with
the company's commitment to sustainability.

Employees working for the company want the authority, initiatives and abilities to
manage their daily work by creating ownership and responsibility for the organization.
Employees want to work together with their team. Employees feel a strong sense of
ownership that is dedicated to their work and that clearly drives the company's overall
performance. The employee values strategic direction and intentions, goals and objectives,
and vision. These clear goals and objectives can be linked to mission, vision and strategy,
and provide employees with a clear direction for work. The company also has a clear
understanding of how to define the organization's and strategic objectives and express its
vision of how the organization will look in the future. In conclusion, the survey shows that
the more executives in the company fulfill their organization's involvement, consistency
and mission, the higher their commitment to sustainability. This may result in employees
wanting to maintain a relationship with the organization due to an emotionally neutral
response due to penalties associated with a decision or decision to suspend the employment
of AYA Myanmar General Insurance Co., Ltd.

54
4.5 Effect of Organizational Commitment on Job Performance of Employees at of
AYA Myanmar General Insurance Co., Ltd

This study analyzes the impact of an organization's commitment to work. It has

been used to test the effectiveness of independent variables of organizational devotion:
affective, normative, continuance on single dependent variables of job performance:
contextual and task.

4.5.1 Effect of Organizational Commitment on Contextual Performance

This study analyzed the impact of the organization's commitment to the situational
performance of AYA Myanmar General Insurance Co., Ltd. Multiple linear regression
analysis is applied to investigate the impact of independent variables on the performance
of a single dependent variable context in a company.

55
 According to Table (4.16), R square is at 52.7 percent and adjusted R square is 51.7
percent. This indicates that the model can explain 51.7 percent about the variance of the
dependent variable (Contextual Performance) with the independent variable (affective,
normative, and continuance). Durbin-Watson value is 1.432 (nearly 2). It indicates that
there is no auto correlation in sample. All the VIFs (variance inflation factor) of
independent variables are less than 10. Thus, there is no problem of multicollinearity
(correlation between independent variables) in this study. The value of F-test, the overall
significance of model, turned out highly significant at 1% level. It can be said that there is
a positive relationship between the dedication of the organization and the situational
performance.

There is a positive relationship between emotional commitment and context, which

is positively important in the 99% confidence interval. It can be said that taking all other
independent variable at zero will lead to 0.318-unit increase in effect on contextual
performance. The standardized coefficient (Beta) has the value of 0.279 indicating that the
affective commitment has the contribution to increase contextual performance of
employees.

There is positive relationship between normative commitment and contextual which

is positively significant at 99% confidence interval. Taking all other independent variables
as zero, the unit increase in norm promises can lead to a 0.267-unit increase in effect on
contextual performance. The standardized coefficient (Beta) has the value of 0.200
indicating that the normative commitment has the contribution to increase contextual
performance of employees.

There is positive relationship between continuance commitment and contextual

which is positively significant at 99% confidence interval. It can be said that taking all other
independent variable at zero, a unit increase in continuance commitment will lead to 0.366
unit increase in effect on contextual performance. The standardized coefficient (Beta) has
the value of 0.428 indicating that the continuance commitment has the contribution to
increase contextual performance of employees.

An organization's commitment is positively related to the situational performance

of its employees. The employees can give their best performance, along with highest
commitment to organization goals for its success in long term. Because employees are
committed to the organization, they follow their organizational rules and procedures when

56
they make additional efforts to successfully complete their work activities by performing
volunteer activities that perform tasks that are not officially included in the job description.

4.5.2 Effect of Organizational Commitment on Task Performance

The analysis on the effect of organizational commitment on task performance is

conducted.

According to Table (4.17), R square is at 53.7 percent and adjusted R square is 52.7
percent. This indicates that the model can explain 52.7 percent about the variance of the
dependent variable (Contextual Performance) with the independent variable (affective,
normative, and continuance). Durbin-Watson value is 1.806 (nearly 2). It indicates that
there is no auto correlation in sample. All the VIFs (variance inflation factor) of
independent variables are less than 10. Thus, there is no problem of multicollinearity

57
(correlation between independent variables) in this study. The value of F-test, the overall
significance of model, turned out highly significant at 1% level.

There is positive relationship between affective commitment and task performance

which is positively significant at 99% confidence interval. It can be said that taking all other
independent variable at zero will lead to 0.526 unit increase in effect on contextual
performance. The standardized coefficient (Beta) has the value of 0.466 indicating that the
affective commitment has the contribution to increase task performance of employees

There is positive relationship between normative commitment and task

performance which is positively significant at 99% confidence interval. It can be said that
taking all other independent variable at zero will lead to 0.271 unit increase in effect on
task performance. The standardized coefficient (Beta) has the value of 0.205 indicating that
the normative commitment has the contribution to increase task performance of employees.

There is positive relationship between continuance commitment and task

performance which is positively significant at 99% confidence interval. It can be said that
taking all other independent variable at zero will lead to 0.196 unit increase in effect on
task performance. The standardized coefficient (Beta) has the value of 0.232 indicating that
the continuance commitment has the contribution to increase task performance of
employees. The organization’s efforts are clearly related to the work performance of
employees within the organization. Employees of the company are best committed to
organizational goals for long-term success and exert their best performance. In conclusion,
employees are doing their best to the organization and want to run a separate set of tasks
that contribute to the organization in various ways. In addition, dedicated employees of the
organization want to invest physical, cognitive and emotional energy in their jobs.

58
 CHAPTER 5

CONCLUSION

This chapter introduces the overall study and summarizes meaningful findings
based on the organizational culture, organizational commitment, and performance of AYA
Myanmar General Insurance Co., Ltd employees. This chapter has three main sections. The
first section is an overview and discussion of the findings of this study, and the second
section contains suggestions and recommendations. The third section consists of additional
research needs for this study.

5.1 Findings and Discussions

As the significant reform is underway in the Myanmar insurance industry and this
industry is a booming industry. The insurance market in Myanmar is open to foreign
companies, so qualified foreign insurance companies obtain business licenses in Myanmar.
Strong competition between existing and future foreign private insurance companies
requires a strong strategic plan. A properly planned and managed organizational culture in
an organization can not only improve the capacity of human resources, but also provide
better services, resulting in better quality products and distribution channels.

The study is based on the organizational culture, organizational commitment and

job performance of employees of the headquarters of AYA Myanmar General Insurance
Co., Ltd. Researchers collected structured questionnaires from 155 employees. In this
study, analytical and qualitative methods are carried out. The simple statistical techniques
and multiple regression analysis are used to determine the impact of organizational culture
on organizational commitment and the impact of organizational efforts on employee
performance.

The demographic profile of the employee assumes that there is not a significant
difference between women and men in the company, and that both male and female have
the opportunity to find employment on the same opportunity. The age range of respondents
is mostly 25 to 30 years old. In term of education level, most of respondents are graduates.
In terms of years of service, almost half of respondents are found to be less than one year.
In addition, the majority of respondents come from operations.

59
 There are two main objectives in this study. The first objective is to investigate the
effect of organizational culture on organizational commitment in AYA Myanmar General
Insurance Co., Ltd. It explored the culture of organization by using Denison Model which
is presented by four culture traits: Involvement, Consistency, Adaptability, and Mission.

For the achievement of the first objectives, it firstly explored the mean value of
organizational culture. From the survey results of the overall mean value, among the
organizational culture, adaptability is the highest mean score in the business environment.
The overall mean values of other organizational culture traits are satisfactory level.
Therefore, the management of the company understand and react to the competitive
environment and customers. Moreover, the organization also supports and encourages new
ideas and different solutions for solving problems for both individuals and organizational
to increase ability, skill, knowledge competence and performance levels on an ongoing
basis. In addition, employees also seek new and better ways to meet customer expectations
on a continuous basic.

Based on the survey result of organizational commitment, it was found out that
affective organizational commitment is the strongest because employees are feeling part of
the family in their organization. The average response rate on overall perception with
affective commitment is greater than average. This commitment was the highest compare
with the other two types of commitment which are normative and continuance
commitment. Therefore, it can be implied that employees of the company are emotionally
attached with the organization. The result showed that continuance commitment is the
second highest one in AYA Myanmar General Insurance Co., Ltd because they need to stay
in the organization resulting from their recognition of the costs and family commitment
associated with leaving the organization.

According to the regression results on the effect of organizational culture on

affective commitment, the result indicates that the three culture, involvement, consistency,
adaptability is strongly affecting on the affective commitment in positive ways. It is
indicated that if the management implements the involvement, consistency, adaptability of
the organization, the affective commitment of employees, level of employees’ emotional
attachment to organization, will increase.

Regarding normative commitment, the result indicates that consistency and mission
culture have positive relationship on normative commitment. It can be interpreted that the

60
management of the company need to implement consistency and mission culture to develop
the normative commitment of employees. Employees of the organization feel of obligation
to maintain organizational membership because they believe it is morally right to be loyal
to and stay in the organization. For continuance commitment, the result show that
involvement, consistency, and mission are strongly affecting on the continuance
commitment in positive ways. It means that if the company provides involvement,
consistency, and mission, the continuance commitment will increase.

The second objective is to analyze the effect of organizational commitment on job

performance of employees at AYA Myanmar General Insurance Co., Ltd. For the
achievement of the second objective, it firstly explored the mean value of job performance
(contextual performance and task performance). It is found out that employees at the
company have good performance in all of two job performance factors because overall
mean score are above average in those two key indicators. It can conclude that the
employees contribute not only to the social and psychological core of the organization, but
also to the technical core of the organization.

From the point of view of the regression analysis between the organization
commitment on job performance of employees, all variables of the organizational
commitment (affective, normative, continuance) have a great impact on the employee’s job
performance. If an employee has an organizational commitment, it is marked to improve
employee performance. Organizational commitment can improve employee job
performance. The dedicated employees of AYA Myanmar General Insurance Co., Ltd are
productive, focus on quality, work, increase the company's customer satisfaction and
profitability, and lead to excellent performance. In conclusion, it can conclude that the
organization's efforts are absolutely dependent on the performance of its employees.

5.2 Suggestions and Recommendations

According to research results, organizational culture is related to organizational

commitment. Participating and building an organizational culture for involvement,
consistency, adaptability and mission characteristics creates a sense of belonging and
organizational commitment at AYA Myanmar General Insurance Co., Ltd. It can have a
positive effect. Based on the above results, there are three main items to be provided and
recommended for employees and companies to be given to observation points.

61
 First, it concerns the organizational culture of AYA Myanmar General Insurance
Co., Ltd. Organizational results are related to the value of organizational culture, not
economic conditions. The company has all kinds of organizational cultures (involvement,
consistency, adaptability, and mission), but the company has to support the ability to
receive, analyze, and translate organizational signals. It needs to focus on adaptability due
to maintain norms and beliefs and develop the environment to change internal behavior and
increase the possibility of development.

The mission also needs to be developed, as it has two important implications for the
functioning of the organization. First, the mission provides the purpose and meaning of
non-economic reasons why the operations of the organization are important. Second, the
sense of mission provides organizations and members with clear directions and goals that
define an appropriate course of action. An organization can embody its current actions by
envisioning the desired future state with a sense of mission. If it can identify organization's
mission, it will contribute to both the short-term and long-term commitments of the
organization. It is an advanced engaging organization that differentiates itself from other
companies by creating a sense of responsibility. It increases commitment and advanced
learning responsibilities. In addition, a sense of ownership strengthens responsibility and
provides an atmosphere where employees feel independence and freedom from work.

A high level of participation increases ownership and responsibilities, increases

commitment to the organization, and improves the ability to exercise greater autonomy. If
the organization wants to be successful, it must provide clear value so that employees can
make consistent decisions. Consistency helps an organization develop a set of steps to
create an internal governance system, according to agreed support. Consistency is a strong
culture that began with the assertion that belief, value and symbol sharing systems widely
understood by members of the organization have reached consensus and have had a positive
impact on the ability to perform collaborative actions. Is the result.

Secondly, it is about organization commitment in AYA Myanmar General

Insurance Co., Ltd. Among the organizational commitment, to improve affective
commitment within employees, management of the company should maintain involvement,
consistency, and adaptability well. If the company wants to increase normative
commitment of employees, management should provide consistency and mission in
organization. The more commitment of employees can get the more job performance

62
outcomes from employees regarding key indicators. Therefore, the management needs to
focus on organizational culture in order to improve job performance of employees.

Finally, there is a relationship between the organization’s commitment and the

employee's job performance (context and task performance). Organizational efforts can
affect job performance. Organizational commitment behaviors (affective, normative
continuance) in all organizations has a positive correlation with work performance factors.
Dedicated employees do not think much about leaving the organization, which could lead
to active intentions to serve the organization to achieve work results. In conclusion, the
company's executives must focus on the organizational culture to improve the workplace,
to ensure that employees become harder by the organization, improve work performance
for the long-term success of the organization.

5.3 Needs for Further Research

Every study has its own limitations and boundaries for defining a path for further
study. In the current study, in terms of positive results, there are unique limitations along
with each recommendation that encouraged. Since this study will only be performed at the
headquarters of the organization, the further research should use larger samples to present
more specific data analysis not only for the company but also for specific industry sectors.

This study analyzed the impact of organizational culture on organizational commitment

and the impact of organizational commitment on employee performance. In this study, it
focuses solely on analyzing the company’s four cultural characteristics (involvement,
consistency, adaptability, and mission) using the Denison Organizational Culture Model.
Since other employee values alternative organizational culture approaches for employee
organizational commitment and job performance and this study does not explain models of
different cultures. Therefore, further research study should explore organizational culture
model than Denison organizational culture model. The further study will benefit from doing
additional research on other factors that affect organizational commitment and affect their
job performance.

63
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APPENDIX A: Survey Questionnaire

This questionnaire is designed to solicit the relevant information for the research
carried out on the topic “The Effect of Organizational Culture on Job Performance of
Employees at AYA Myanmar Insurance Co., Ltd”. The purpose of this survey
questionnaire is to measure the effect of organizational culture on job performance of
employees. This study is conducted for academic purpose for partial fulfillment of the
requirements of Master of Business Administration at Yangon University of Economics.

Hence, you are being requested to participate in a survey to provide the information
related to above topic. Participation in this survey is voluntary and your responses will be
kept confidential. The soundness and the validity of the findings highly depends on your
kind and genuine response. Therefore, I kindly request you to fill the questionnaires
carefully and truthfully. I would like to thank you for your cooperation.

Section (A)

Demographic Characteristics of Respondents

1. Gender
Male Female
2. Age (years)
Under 24 25 – 30
31 – 35 36 – 40
41 – 55 56 and above
3. Level of Education
Undergraduate Graduate
Master Degree If others, _________________
4. Position
Junior Assistant Senior Assistant
Assistant Supervisor Supervisor
Assistant Manager Manager
5. Years of Services
Below 1 year 1 – 2 years
2 – 3 years Above 4 years
6. Department
Human Resource
Operation Admin
Marketing Finance
IT Corporate
Audit Claim

71
 With respect to Section B, C, and D, please indicate the level of agreement with
each statement regarding the organizational culture, organizational commitment and job
performance by ticking (Ö ) in the box below.

1 = Strongly Disagree, 2 = Disagree, 3 = Neutral, 4 = Agree, 5 = Strongly Agree

Section (B)

Assessment of the Organizational Culture

1. INVOLVEMENT 1 2 3 4 5

1.1 Information is widely shared so that I can get the information I

need when it is needs.

1.2 Business planning is ongoing and involves everyone in the

process to some degree.

1.3 Cooperation across different parts of the organization is actively

encouraged.

1.4 Work is organized so that I can see the relationship between my

job and the goals of the organization.

1.5 There is continuous investment in the skills of employees.

1.6 The capabilities of employees are viewed as an important source

of competitive advantages.

2. CONSISTENCY 1 2 3 4 5

2.1 The leaders and managers “practices what they preach.”

2.2 There is clear and consistent set of values that governs the way I
do business.

2.3 When disagreements occur, we work hard to achieve “win-win”

solutions.

2.4 It is easy to reach consensus, even on difficult issues.

2.5 My approach to doing business is very consistent and predictable.

2.6 It is easy to coordinate projects across different parts of the

organization.

72
3. ADAPTABILITY 1 2 3 4 5

3.1 The ways things are done is very flexible and easy to change.

3.2 New and improved ways to do work are continually adopted.

3.3 Customer comments and recommendations lead to changes.

3.4 I have a deep understanding of customer wants and needs.

3.5 Innovation and risk taking are encouraged and rewarded.

3.6 Learning is important objective in my day-to-day work.

4. MISSION 1 2 3 4 5

4.1 There is a clear mission that gives meaning and direction to my

work.

4.2 The organization’s strategic direction is clear to me.

4.3 Leaders set goals that are ambitious but realistic.

4.4 I understand what need to be done for organization to succeed in

the long run.

4.5 I have a shared vision of what the organization will be like in the
future.

4.6 The organization’s vision creates excitement and motivation.

SECTION (C)

ORGANIZATIONAL COMMITMENT QUESTIONNAIRES

1. Affective Commitment Scale 1 2 3 4 5

1.1 I would be very happy to spend the rest of my career with this
organization.

1.2 I really feel as if this organization’s problems are my own.

1.3 I do not feel a strong sense of "belonging" to my organization.

1.4 I do not feel "emotionally attached" to this organization.

73
1.5 I do not feel like "part of the family" at my organization.

1.6 This organization has a great deal of personal meaning for me.

2 Normative Commitment Scale 1 2 3 4 5

2.1 I do not feel any obligation to remain with my current employer.

2.2 Even if it were to my advantage, I do not feel it would be right to leave

my organization now.

2.3 I would feel guilty if I left my organization now.

2.4 This organization deserves my loyalty.

2.5 I would not leave my organization right now because I have a sense of
obligation to the people in it.

2.6 I owe a great deal to my organization.

3. Continuance Commitment Scale 1 2 3 4 5

3.1 Right now, staying with my organization is a matter of necessity as

much as desire.

3.2 It would be very hard for me to leave my organization right now, even
if I wanted to.

3.3 Too much of my life would be disrupted if I decided I wanted to leave

my organization now.

3.4 I feel that I have too few options to consider leaving this organization.

3.5 If I had not already put so much of myself into this organization, I might
consider working elsewhere.

3.6 One of the few negative consequences of leaving this organization

would be the scarcity of available alternatives.

74
 SECTION (D)

JOB PERFORMANCE SCALES

1. Contextual Performance 1 2 3 4 5

1.1 I help other employees with their work when they have been
absent.

1.2 I help others when their workload increase.

1.3 I give innovative suggestions to improve the overall quality of the

department.

1.4 I have a habit of punctuality arriving at work on time in the morning

and after lunch breaks.

1.5 I give advance notice if unable to come to work.

1.6 I don’t spend a great deal of time in idle conversation.

2 Task Performance 1 2 3 4 5

2.1 I can achieve the objective of the job.

2.2 I meet the criteria for performance of the job.

2.3 I can fulfill all the requirements of the job.

2.4 I could manage more responsibility than typically assigned.

2.5 I can handle the tasks with proficiency.

2.6 I can plan and organize to achieve objectives of the job and meet
deadlines.

Thank you very much for your participation.

75
APPENDIX B – Statistical Outputs

1. Regression Analysis of Organizational Culture on Affective Commitment

Model Summaryb
Change Statistics
Std.
Error of R
R Adjuste the Square Sig. F Durbin
Mode Squar dR Estimat Chang F df Chang -
l R e Square e e Change 1 df2 e Watson
1 .884 133.45 15
a .781 .775 .22362 .781 4 .000 1.652
6 0
a. Predictors: (Constant), Involvement, Consistency, Adaptability, Mission
b. Dependent Variable: Affective Commitment

ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 26.695 4 6.674 133.456 .000b
Residual 7.501 150 .050
Total 34.196 154
a. Dependent Variable: Affective Commitment
b. Predictors: (Constant), Involvement, Consistency, Adaptability, Mission

Coefficientsa

95.0%
Unstandardized Standardized Confidence Collinearity
Coefficients Coefficients Interval for B Correlations Statistics

Lower Upper Zero-

Model B Std. Error Beta t Sig. Bound Bound order Partial Part Tolerance VIF

1 (Constant) .230 .199 1.159 .248 -.162 .622

Involvement
.685 .042 .763 16.191 .000 .602 .769 .868 .798 .619 .659 1.518

Consistency
.127 .048 .119 2.649 .009 .032 .221 .498 .211 .101 .724 1.381

Adaptability
.145 .058 .119 2.501 .013 .030 .259 .545 .200 .096 .646 1.548

Mission -
-.013 .043 -.013 -.295 .768 -.098 .072 .419 -.024 .722 1.384
.011

a. Dependent Variable: Affective Commitment

76
 2. Regression Analysis of Organizational Culture on Normative Commitment
Model Summaryb
Change Statistics
Std.
Error of R
R Adjuste the Square F Sig. F Durbin
Mode Squar dR Estimat Chang Chang df Chang -
l R e Square e e e 1 df2 e Watson
1 .481 15
a .231 .211 .35822 .231 11.274 4 .000 1.823
0
a. Predictors: (Constant), Involvement, Consistency, Adaptability, Mission
b. Dependent Variable: Normative Commitment

ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 5.787 4 1.447 11.274 .000b
Residual 19.248 150 .128
Total 25.035 154
a. Dependent Variable: Normative Commitment
b. Predictors: (Constant), Involvement, Consistency, Adaptability, Mission

Coefficientsa

Unstandardiz Standardize 95.0%

ed d Confidence Collinearity
Coefficients Coefficients Interval for B Correlations Statistics

Lowe
r Upper Zero
Std. Boun Boun - Partia Toleranc
Model B Error Beta t Sig. d d order l Part e VIF

1 (Constant) 1.41 4.46 .00

.318 .791 2.048
9 1 0
Involvement 1.35 .17 .09 1.51
.092 .068 .119 -.042 .226 .351 .110 .659
3 8 7 8

Consistency 2.47 .01 .17 1.38

.189 .077 .208 .038 .340 .382 .198 .724
0 5 7 1

Adaptability 1.51 .13 .10 1.54

.140 .093 .135 -.043 .323 .363 .123 .646
3 2 8 8

Mission 2.01 .04 .14 1.38

.139 .069 .170 .003 .274 .359 .162 .722
5 6 4 4

a. Dependent Variable: Normative Commitment

77
 3. Regression Analysis of Organizational Culture on Continuance Commitment
Model Summaryb
Change Statistics
Std.
Error of R
R Adjuste the Square F Sig. F Durbin
Mode Squar dR Estimat Chang Chang df Chang -
l R e Square e e e 1 df2 e Watson
1 .731 15
a .535 .523 .43434 .535 43.155 4 .000 2.077
0
a. Predictors: (Constant), Involvement, Consistency, Adaptability, Mission
b. Dependent Variable: Continuance Commitment

ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 32.566 4 8.141 43.155 .000b
Residual 28.298 150 .189
Total 60.864 154
a. Dependent Variable: Continuance Commitment
b. Predictors: (Constant), Involvement, Consistency, Adaptability, Mission

Coefficientsa

Standardiz
ed 95.0%
Unstandardize Coefficien Confidence Collinearity
d Coefficients ts Interval for B Correlations Statistics

Lower Upper Zero

Std. Boun Boun - Partia Toleranc
Model B Error Beta t Sig. d d order l Part e VIF

1 (Constant) -
.28
-.413 .386 1.07 -1.175 .349
6
1

Involvement 7.52 .00 .41 1.51

.619 .082 .516 .456 .781 .668 .524 .659
8 0 9 8

Consistency 3.87 .00 .21 1.38

.360 .093 .254 .176 .543 .508 .302 .724
8 0 6 1

Adaptability - -
.17 1.54
-.154 .112 -.095 1.37 -.376 .068 .364 -.111 .07 .646
3 8
1 6

Mission 3.05 .00 .17 1.38

.255 .083 .200 .090 .420 .478 .242 .722
8 3 0 4

a. Dependent Variable: Continuance Commitment

78
 4. Regression Analysis of Organizational Commitment on Contextual
Performance

Model Summaryb

Change Statistics
Std.
Error of R
R Adjuste the Square F Sig. F Durbin
Mode Squar dR Estimat Chang Chang df Chang -
l R e Square e e e 1 df2 e Watson
1 .726 15
a .527 .517 .37361 .527 56.017 3 .000 1.432
1
a. Predictors: (Constant), Affective Commitment, Normative Commitment, Continuance
Commitment
b. Dependent Variable: Contextual Performance

ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 23.457 3 7.819 56.017 .000b
Residual 21.077 151 .140
Total 44.534 154
a. Dependent Variable: Contextual Performance
b. Predictors: (Constant), Affective Commitment, Normative Commitment, Continuance
Commitment

Coefficientsa

Standardize 95.0%
Unstandardize d Confidence Collinearity
d Coefficients Coefficients Interval for B Correlations Statistics

Lower Upper Zero

Std. Boun Boun - Partia Toleranc
Model B Error Beta t Sig. d d order l Part e VIF

1 (Constant) .26 .38

.304 .867 -.337 .865
4 8

ACMEA .31 3.72 .00 .20 1.78

.085 .279 .150 .487 .617 .290 .561
N 8 9 0 9 4

NCMEA .26 3.34 .00 .18 1.14

.080 .200 .109 .425 .391 .263 .876
N 7 7 1 7 1

CCMEA .36 5.96 .00 .33 1.64

.061 .428 .245 .487 .646 .437 .609
N 6 8 0 4 1

a. Dependent Variable: Contextual Performance

79
 5. Regression Analysis of Effect of Organizational Commitment on Task
Performance

Model Summaryb
Change Statistics
Std.
Error of R
R Adjuste the Square F Sig. F Durbin
Mode Squar dR Estimat Chang Chang df Chang -
l R e Square e e e 1 df2 e Watson
1 .732 15
a .537 .527 .36533 .537 58.265 3 .000 1.806
1
a. Predictors: (Constant), Affective Commitment, Normative Commitment, Continuance
Commitment
b. Dependent Variable: Task Performance

ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 23.329 3 7.776 58.265 .000b
Residual 20.153 151 .133
Total 43.482 154
a. Dependent Variable: Task Performance
b. Predictors: (Constant), Affective Commitment, Normative Commitment, Continuance
Commitment

Coefficientsa

Standardize 95.0%
Unstandardize d Confidence Collinearity
d Coefficients Coefficients Interval for B Correlations Statistics

Lower Upper Zero

Std. Boun Boun - Partia Toleranc
Model B Error Beta t Sig. d d order l Part e VIF

1 (Constant) .70
.114 .298 .382 -.474 .701
3

Affective
6.29 .00 .34 1.78
Commitmen .526 .083 .466 .361 .690 .683 .456 .561
8 0 9 4
t

Normative
3.47 .00 .19 1.14
Commitmen .271 .078 .205 .117 .425 .420 .272 .876
2 1 2 1
t

Continuance 3.26 .00 .18 1.64

.196 .060 .232 .078 .315 .568 .257 .609
Commitment 9 1 1 1

a. Dependent Variable: Task Performance

80
APPENDIX C – Cronbach Alpha Values

Cronbach's Alpha value Internal Consistency

α ≥ 0.9 Excellent

0.7 ≤ α < 0.9 Good

0.6 ≤ α < 0.7 Acceptable

0.5 ≤ α < 0.6 Poor

α < 0.5 Unacceptable

81