Organizational Citizenship Behavior (OCB) and Rewards

Ali Alkahtani

doi:10.5539/ibr.v8n4p210

Abstract

Organizational Citizenship Behavior (OCB) has attracted the attention of academicians and practitioners due to its proven significance towards organizational effectiveness. The current study aims to estimate empirically the degree of relationship between OCB and Organizational Rewards given to employees. The study will answer the question that “Does the display of OCB have any impact on the rewards given to employees by the organization?” Five most widely acknowledged dimensions of OCB - Altruism, Courtesy, Sportsmanship, Conscientiousness, and Civic Virtue -have been considered for analysis purposes. OCB is measured through self-evaluation as well as peer evaluations to avoid any social desirability effect and common method variance errors. The organizational rewards taken in the study are Salary Increment, Promotion and Performance Appraisal Grade. The current study includes all of these together for analyzing this relationship with rigor. This is the first ever study of OCB which incorporates all five major dimensions of OCB (measured through self-reporting as well as through peer reports) and three well acknowledged types of rewards together in a single study. The study thus draws various practical implications for organizational managers on basis of the empirical findings from banking sector of Pakistan.

Highlights

Organizational Citizenship Behaviors (OCB) is defined as “Individual behavior that is discretionary, not directly or explicitly recognized by the formal reward system and that in the aggregate promotes the effective functioning of the organization
Results show that Total Promotion and Annual Performance Rating are significantly dependent on the Civic Virtue
OCB-Composite is proved to be significant predictor of Total Promotion and Total Salary Increment. It indicates that the number of promotions and percentage salary increment employee receives throughout the period of service in the bank is significantly dependent on the level of OCB shown

Summary

Introduction

Organizational Citizenship Behaviors (OCB) is defined as “Individual behavior that is discretionary, not directly or explicitly recognized by the formal reward system and that in the aggregate promotes the effective functioning of the organization. We mean that the behavior is not an enforceable requirement of the role or the job description, that is, the clearly specifiable terms of the person‟s employment contract with the organization; the behavior is rather a matter of personal choice, such that its omission is not generally understood as punishable.” The key issues in consequences have been (a) Managerial evaluation of performance and judgments regarding salary increment, promotion etc., and (b) Organizational performance and its effectiveness. Organ (1988) proposed “loose coupling” between employee performance and rewards i.e. employee can expect an indirect link between OCB and organizational reward The key issues in consequences have been (a) Managerial evaluation of performance and judgments regarding salary increment, promotion etc., and (b) Organizational performance and its effectiveness. Organ (1988) proposed “loose coupling” between employee performance and rewards i.e. employee can expect an indirect link between OCB and organizational reward

Objectives

Results

Conclusion