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Impact of Different Types of Employee Participation on Organizational Commitment: A Comparative Study of Pakistan and United States of America.


The objective of this study was to explore the impact of types of employee participation (i.e. financial participation, direct participation and representative participation) on forms of organizational commitment (i.e. Affective commitment, continuous commitment and normative commitment).

This research study is based on the universal perspective showing a comprehensive review of theoretical and empirical literature with references to employee financial participation, employee direct participation, Representative participation, affective commitment, normative commitment and continuous commitment. Literature related to employee participation, and organizational commitment has been critically reviewed.

This exploratory study utilized a questionnaire distributed to a wide sample of employees of both American and Pakistani commercial banks. All middle level employees of commercial banks listed in Karachi stock exchange and New York stock exchange were included in the population. The estimated sample of the study is 250 employees from Pakistan and 250 employees from USA. Total number of banks selected for the study was 50 from both countries. The survey instrument was developed using a combination of existing scales across the four key themes of the thesis: Financial participation (Erik Poutsma, 2001), direct participation (Lammers, Meurs, Mijs, 1987), representative participation (Lammers, Meurs, Mijs, 1987), and organizational commitment (Meyer and Allen, 1991). Purposive sampling method was used to select the sample. Total response rate of the study was 67.4%. Keeping in view theories and evidences that are provided in the current literature hypotheses were developed.

This research study is based on four research questions. To answer these research questions statistical methods like descriptive statistics, scatter diagrams, Pearson correlation,multiple regression analysis and interaction forms were used.

This study indicated that in Pakistani settings types of employee participation has a significant and positive relationship with forms of organizational commitment while in American settings financial participation, direct participation and representative participation has strong and positive relationship with forms of commitment but weak relationship as compared to Pakistan.

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