Vertical Occupational Mobility of Labour and Organization

Abstract

The study of my topic i. e. vertical occupational mobility of labour and Organizational commitment comes under Human Resource Management (HRM). HRM itself by its name describes that it is an approach of people working in an organization which play an important role in achieving organization’s objective. This subject area basically helps in managing workforce to acquire maximum efficiency.

The Human Resources Management includes a variety of activities such as whether to use independent contractors or hire employees, recruitment, time management, workforce planning, training and development, performance appraisal etc. There are two type of labour mobility i. e. geographic and occupational mobility. Geographic mobility is defined as changes in location of workers across physical space which is further divided into two parts i. e. short distance and long distance moves.

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Occupational mobility is defined as changes in location of workers across asset of jobs. This research will help managers and policy makers to know how vertical occupational mobility and organizational commitment are related. This research will identify those factors which lead to vertical occupational mobility which then affects commitment of an employee with an organization. Before segmenting the labour market policy makers will have an idea before that what will be its effect to organizational commitment.

Study Objectives

1. To test the proposition that wage gaps among employees within an organization affects task and technology of an organization and has significant/insignificant impact on organizational commitment.
2. To test the proposition that job performance of an employee plays an important role in organizational development (task and technology) and has significant/insignificant impact on organizational commitment.
3. To test the proposition that distributive justice affects organizational culture and has significant/insignificant impact on organizational commitment.
4. To test the proposition that Human Capital Investments affects the organizational strategy of an organization and has significant/insignificant impact on organizational commitment.
5. To test the proposition that mobility attitudes affects organizational behaviour of an organization and has significant/insignificant impact on organizational commitment.
6. To test the proposition that skills of an employee affects organizational development (task and technology) of an organization and has significant/insignificant impact on organizational commitment.

Literature Review

Occupational Mobility: “Occupational mobility is defined as the fraction of currently employed individuals who report a current occupation different from their most recent previous report” by Gueorgui Kambourov and Iourii Manovskii (2004). Nachum Sicherman & Oded Galor (1990) in their research describes occupational mobility as an important part of worker’s career. When a person has high experience he is likely to have occupational mobility within the organization in terms of promotion. Schooling plays an important role in upward occupational mobility.

It also describes that when workers expect high probability of promotion in a firm and they are not promoted, mostly they quit the organization. Gender based Occupational Mobility Shirley Dex, Kelly Ward & Heather Joshi (2006), in their research on women’s place and their workings in labor market, indicates that downward occupational mobility of labor among women has decreased after their first child birth as compared with previous generations according to Women and Employment Survey (WES).

Occupational and Geographical Labor Mobility

Larry D. Schroeder. (1976) studies the interdependence between geographicaland occupational mobility using two data sets (samples). One data set is of maletaxpayers in Winconsin during the period 1947-59 which states that inter-country mobility and occupational mobility are not independent when age differences are accounted for. The second data set is of 1970’s Census of Population which resulted that occupational mobility and inter-country mobility are not independent when accounted for different age and sex groups.

Larry D. Schroeder. (1976) created an occupational mobility matrix by observing mobility patterns of non-movers and interstate movers of United States (observation period is five years or more), after which it was evident that occupational and geographic mobility are affiliated which each other. He further states that manpower planners must keep this relationship in mind when they project the responses to their strategies to stimulate occupational and inter-state mobility.

Occupational Mobility and Wage Inequality

Nachum Sicherman & Oded Galor (1990) states that if a wage profile difference across individuals in a firm is found workers will change their occupation or quit from that specific firm. Furthermore, Gueorgui Kambourov and Iourii Manovskii (2004) in their study indicate that occupational mobility and wage inequality are interrelated. They developed a general equilibrium model which resulted that increase in occupational mobility is 90% because of the significant increase in wage inequality over the time.

Research Design Research Type

The type of this research is applied which means to undertake investigation to acquire new knowledge.

Applied research is directed mainly towards a specific practical aim. This research is not carried out just for the sake of knowledge; it will also help to solve practical problems. In this case the research identifies the factors which lead to vertical occupational mobility in commercial banks of Pakistan in relation to employees’ commitment with the bank.

Data Type and Reference Period

Data type used in this research is primary in nature. Surveys through questionnaire will be carried out in form of personal interviews which will be attached with APPENDIX.

This survey will be conducted at various managerial levels in different braches of various banks. These managerial levels include branch managers, floor managers, team managers, area sales managers, relationship manager, assistant managers, operation managers, processing officers etc. The banks in which this survey will be carried out are Dubai Islamic Bank, Standard Chartered Bank, ABN-AMRO, Faysal Bank, Muslim Commercial Bank, Bank of Punjab and Bank Alfalah Limited. The reference period of this survey will be April, 2010 RESEARCH HYPOTHESIS 1.

H0: To test the hypothesis that wage gaps among employees within an organization affects task and technology of an organization and has insignificant impact on organizational commitment (H0: 1 = 0) H1: To test the hypothesis that wage gaps among employees within an organization affect task and technology of an organization and have significant impact on organizational commitment (H1: 1  0) 2. H0: To test the hypothesis that job performance of an employee plays an important role in organizational development (task and technology) and has insignificant impact on organizational commitment (H0: ? = 0) H1: To test the hypothesis that job performance of an employee plays an important role in organizational development (task and technology) and has significant impact on organizational commitment (H1: 2 0) 3. H0: To test the hypothesis that distributive justice affects organizational culture and has insignificant impact on organizational commitment (H0: 3 = 0) H1: To test the hypothesis that distributive justice affects organizational culture and has significant impact on organizational commitment (H1:  3 0) 4.

H0: To test the hypothesis that Human Capital Investments affects the organizational strategy of an organization and has insignificant impact on organizational commitment (H0: ? 4 = 0) H1: To test the hypothesis that Human Capital Investments affects the organizational strategy of an organization and has significant impact on organizational commitment (H1: ? 4 ? 0) 5. H0: To test the hypothesis that mobility attitudes affects organizational behaviour of an organization and has insignificant impact on organizational commitment (H0: ? = 0) H1: To test the hypothesis that mobility attitudes affect organizational behavior of an organization and have significant impact on organizational commitment (H1: ? 5 ? 0) 6.

H0: To test the hypothesis that the skills of an employee affects organizational development (task and technology) of an organization and has insignificant impact on organizational commitment (H0: ? 6 = 0) H1: To test the hypothesis that the skills of an employee affects organizational development (task and technology) of an organization and has a significant impact on organizational commitment (H1: 0)

Conclusion

This research analyzes the relation between vertical occupational mobility and organizational commitment. The study will provide an additional dimension that vertical occupational mobility does not affect organizational commitment directly; organizational development is an intervening variable between them. Multiple linear regression and parametric test of significance (t-test) may be used as a tool to find out the relationship between the variables i. e. vertical occupational mobility and organizational commitment.

If the chance of getting promoted for an employee in a bank is high he is likely to be more committed to the bank. Finally, if the working conditions (job safety, peer pressure, internal environment of bank etc) in a bank are favourable employee will be more committed to the bank.

Direction for Further Research

Due to time constraints and limited resources sample size may be small and survey will conduct in banks of Lahore only. In further research other dimensions of vertical occupational mobility and organizational commitment will be discussed including the intervening variable between them i. . organizational development. Furthermore, the survey will be carried out in all the banks of Pakistan which will enhance the result of our analysis. Future research may investigate the factors which lead to vertical occupational mobility in telecom sector of Pakistan in relation to the commitment of an employee to the organization. The reason why I selected the Banks of Pakistan is, I have some personal relations with some of the employers working in banks in Pakistan. So, collecting data would not be a problem for me.

References

1. Gueorgui Kambourov and Iourii Manovskii. 2009).
2. Occupational Mobility and Wage Inequality. Review of Economic Studies. 76 (2), 731-759.
3. Nachum Sicherman & Oded Galor. (1990). A Theory of Career Mobility. The Journal of Political Economy. 98 (1), 169-192.
4. Shirley Dex, Kelly Ward & Heather Joshi. (2006). Changes in Women’s Occupations and Occupational Mobility over 25 years. Women and Employment Survey. 1 (1), 18-24.
5. Larry D. Schroeder. (1976). Interrelatedness of Occupational and Geographical Labor Mobility. Industrial and Labor Relations Review. 29 (3), 405-413.

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