Perceptions of Organizational Commitment in Nepalese Insurance Companies and Commercial Banks

Abstract

This study aims to examine the status of organizational commitment (affective commitment, continuancecommitment, and normative commitment) in insurance companies and commercial banks of Nepal. Thisstudy is conducted utilizing a survey methodology with questionnaires serving as the primary tool. Sixinsurance companies and six commercial banks are covered by this study. A total of 360 questionnaires—30in each of the 12 organizations—have been distributed, and 225 (62.5%) of those that have been fullycompleted and returned are used for the study. The data are analyzed by using the latest version of thestatistical package for social science (SPSS). Descriptive statistical tools like mean and standard deviationare used. The one-way analysis of the variance is used for determining the statistical differences between theorganizational commitment dimensions found in two samples (insurance companies and commercialbanks). Based on the results, affective commitment is found at a high level, normative commitment at amoderate level, and continuance at a low level in Nepalese insurance companies and commercial banks.Insurance companies show higher affective and normative commitment than commercial banks. Significantdifferences in judgments of affective and normative commitment between employees of Nepalese insurancecompanies and commercial banks are also revealed by analysis of variance. In fact, firms that have a strongorganizational commitment are better able to keep employees, which put them in a better position to gain theadvantages of a more devoted, engaged, and dependable workforces. Therefore, today's businesses mustdesign workplaces that encourage more moral and emotional commitment among their employees.