Individual-Level Factors and Organizational ...

JPART 15:245–261

Individual-Level Factors and Organizational Performance in Government Organizations Sangmook Kim Seoul National University of Technology

ABSTRACT In this journal, Rainey and Steinbauer proposed a theory of effective government organizations, and Brewer and Selden conducted an empirical study with data from the 1996 Merit Principles Survey that confirmed most hypothesized relationships in the theoretical model of organizational performance. Following these studies, this study focuses only on the individual-level factors, such as job satisfaction, affective commitment, public service motivation, and organizational citizenship behavior. It empirically tests the effects of these variables on organizational performance in the public sector of Korea. When the survey data of 1,739 public employees in government agencies were analyzed, the hypothesized relationships in the proposed model were confirmed. I discuss the survey results in light of previous studies, especially those of Brewer and Selden.

In this journal, Rainey and Steinbauer (1999) proposed a theory of effective government organizations, urging that this theory be tested empirically; Brewer and Selden (2000) conducted an empirical study with data from the 1996 Merit Principles Survey and confirmed most hypothesized relationships in the theoretical model of organizational performance. In those studies, both individual-level and organization-level factors are involved in the theoretical models; thus each level was not fully examined, and some important factors remain to be considered. Brewer and Selden (2000) inspire me to pursue further evidence about whether the individual attitudes and behaviors of public employees may affect government performance. Popovich defined high-performance organizations as ‘‘groups of employees who produce desired goods or services at higher quality with the same or fewer resources’’ (1998, 11). Good public employees may be imagined to have such characteristics as high satisfaction with their jobs, high commitment to the organization, high motivation to serve the public, and strong intentions to work for the organization willingly and devotedly. I assume that public employees with these characteristics will contribute to organizational performance and thus that individual-level factors will positively affect organizational performance. I will discuss the individual-level factors and develop the model that relates

I would like to thank the anonymous reviewers for the useful suggestions and comments provided through the review process. Address correspondence to the author at [email protected]. doi:10.1093/jopart/mui013 Advance Access publication on December 16, 2004 Journal of Public Administration Research and Theory, Vol. 15, no. 2 ª 2005 Journal of Public Administration Research and Theory, Inc.; all rights reserved.

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Figure 1 Theoretical Model of Individual-Level Factors and Organizational Performance

them to organizational-level performance. Then I will empirically test the hypothesized relationships. First of all, this research reviews recent efforts on individual-level factors, which seem to be important to predict organizational performance. Second, I explore the theoretical model predicting organizational performance with individual-level variables. Third, I operationalize and test the model with data from the survey conducted by Park, Kang, Kwon, and Kim (2001) in the Republic of Korea. MODEL DEVELOPMENT

Figure 1 shows the theoretical framework for this study. I identify four individual-level factors that may positively affect organizational performance: job satisfaction, organizational commitment, public service motivation, and organizational citizenship behavior. Public employees with high levels in these factors will be more willing to work toward organizational goals and objectives and give their services wholeheartedly to the organization and to the public, hence promoting organizational performance. Thus public organizations that have employees with high levels in these factors will achieve better performance. It should be noted that the nature of the causal direction is debatable. Organizational performance could lead to satisfaction and commitment, in that public employees in higherperforming organizations become more satisfied, committed, and motivated than those in organizations with poor performance. In this study, only the simple relationship between the two will be investigated. Job Satisfaction

Job satisfaction is defined as ‘‘a pleasurable or positive emotional state, resulting from the appraisal of one’s job or job experiences’’ (Locke 1976, 1304). Job satisfaction is an affective or emotional response toward various facets of one’s job. Most scholars recognize that job satisfaction is a global concept that also comprises various facets (Judge et al. 2001a). The topic of job satisfaction is important because of its implications for job-related variables. Job satisfaction is positively correlated with motivation, job involvement,

Kim Individual-Level Factors and Organizational Performance

organizational citizenship behavior, organizational commitment, life satisfaction, mental health, and job performance. It is negatively related to absenteeism, turnover, and perceived stress (Judge et al. 2001a; Kreitner and Kinicki 2001, 33–34; Spector 1997). However, the relationship between job satisfaction and performance is controversial. In a meta-analysis, accumulating results from seventy-four studies with a total subject pool of 12,192, there was only a small positive relationship between satisfaction and performance (Iaffaldano and Muchinsky 1985). But researchers have identified several key reasons that this result is misleading and understates the true relationship between satisfaction and performance (Judge et al. 2001b). A new meta-analysis was conducted on 312 samples with a combined pool of 54,417 and found that the mean true correlation between overall job satisfaction and job performance was estimated to be 0.30 (Judge et al. 2001b). Using the data collected from 298 schools and 13,808 teachers, Ostroff (1992) supported the positive relationships between employee satisfaction and organizational performance. Using a sample from public and private workers in the United Arab Emirates, Yousef (1998) found that the more the employees are satisfied with the security of their jobs, the better their performance in their jobs. Thus it is possible to assume that organizational performance will be improved by increasing public employees’ job satisfaction.

Organizational Commitment

Organizational commitment may be defined as the relative strength of an individual’s identification with, and involvement in, a particular organization. Commitment represents something beyond mere passive loyalty to an organization. It involves an active relationship with the organization, such that individuals are willing to give something of themselves in order to contribute to the organization’s well being.1 Hence, commitment could be inferred not only from the expressions of an individual’s beliefs and opinions but also from his or her actions (Mowday, Steers, and Porter 1979). It can be characterized by at least three factors: (a) a strong belief in, and acceptance of, the organization’s goals and values; (b) a willingness to exert considerable effort on behalf of the organization; and (c) a strong desire to maintain membership in the organization (Porter et al. 1974, 604). Two views of organizational commitment dominate the literature: the attitudinal approach and the behavioral approach. The attitudinal approach sees commitment as an attitude reflecting the nature and quality of the linkage between an employee and an organization. The behavioral approach is concerned mainly with the process by which individuals develop a sense of attachment not to an organization but to their own actions (Liou and Nyhan 1994; Robertson and Tang 1995). Angle and Perry (1981) identified two subscales: value commitment, which reflected a commitment to support organizational goals, and commitment to stay, which reflected a desire to retain organizational membership. Meyer and Allen (1984) used the terms affective commitment and continuance commitment to measure the attitudinal and behavioral views of commitment, respectively. According to Meyer and Allen (1991), the three components of organizational commitment can be identified as affective, continuance, and normative commitments. 1 Some scholars have attached different labels to the same entity, such as ‘‘sense of mission,’’ ‘‘character,’’ ‘‘distinctive competence,’’ ‘‘essence,’’ ‘‘reputation,’’ and ‘‘strong culture.’’ For a useful review of the muddy conceptual waters surrounding the concept of organizational commitment, see DiIulio (1994).

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Affective commitment refers to the employee’s emotional attachment to, identification with, and involvement in the organization. Continuance commitment refers to an awareness of the costs associated with leaving the organization. Normative commitment reflects a feeling of obligation to continue employment. O’Reilly and Chatman (1986) also developed a scale to measure three definitions of commitment, including compliance, identification, and internalization commitment. Balfour and Wechsler (1996) distinguished the three dimensions of organizational commitment as affiliation, identification, and exchange commitment. However, empirical studies have not yet shown significant support for using a three-dimensional definition of organizational commitment (Allen and Meyer 1990; Balfour and Wechsler 1990). Research has found that highly committed employees may perform better than less committed ones (Mowday, Porter, and Dubin 1974). Higher levels of organizational commitment are linked to higher levels of job performance (Larson and Fukami 1984). However, affective commitment is more important to organizational performance than continuance or normative commitment. Researchers express less confidence in the concept of normative commitment and question the clarity of the concept (Allen and Meyer 1990; Chiu and Ng 1999; Liou and Nyhan 1994). Affective commitment correlated positively, while continuance commitment correlated negatively, with the performance of lower-level managers in a large food service company (Meyer et al. 1989). Somers and Birnbaum (2000) confirmed the same result, that only affective commitment is associated with desirable outcomes, when analyzing the data from professional employees of a medical center. Evidence suggests that employees with high levels of continuance commitment have lower performance ratings (Angle and Lawson 1994; Shore and Wayne 1993). The empirical results support the importance of affective commitment in the public organization (Liou and Nyhan 1994; Romzek 1989, 1990). Public employees’ commitment is primarily based on their emotional attachment to, identification with, and involvement in their public organizations. Thus, I can assume that only affective commitment will affect organizational performance. Public Service Motivation

Perry and Wise defined public service motivation as ‘‘an individual’s predisposition to respond to motives grounded primarily or uniquely in public institutions and organizations’’ (1990, 368). They identified three bases of public service motivation: rational, norm based, and affective. Rational motives are grounded in individual utility maximization, norm-based motives are grounded in a desire to pursue the common good and further the public interest, and affective motives are grounded in human emotion. Various rational, norm-based, and affective motives appear to be primarily or exclusively associated with public service. Rational motives are participation in the process of policy formulation, commitment to a public program because of personal identification, and advocacy for a special or private interest. Norm-based motives are a desire to serve the public interest, loyalty to duty and to the government as a whole, and social equity. Affective motives are commitment to a program from a genuine conviction about its social importance and patriotism of benevolence. A recent study reveals that all three types of motives are important to public sector employees (Brewer, Selden, and Facer 2000). Perry and Wise (1990) formulated three propositions: First, the greater an individual’s public sector motivation, the more likely it is that the individual will seek membership in a


public organization. Second, in public organizations, public sector motivation is positively related to performance. Third, public organizations that attract members with high levels of public sector motivation are likely to be less dependent on utilitarian incentives to manage individual performance effectively. Perry (1996) developed a survey instrument to measure six hypothesized dimensions of public service motivation: attraction to policy making, compassion, self-sacrifice, commitment to the public interest, social justice, and civic duty. According to Rainey (1982) and Wittmer (1991), public employees place a higher value on helping others and performing work that is worthwhile to society. Crewson (1997) found that public sector employees rate a feeling of accomplishment and performing work helpful to society and to others as more important job characteristics than do private sector employees. Naff and Crum (1999) found a significant relationship between public service motivation and federal employees’ job satisfaction, performance, intention to remain in the government, and support for the government’s reinvention efforts. Houston (2000) showed that public service motivation does exist and that public employees are more likely to place a higher value on the intrinsic reward of work that is important and provides a feeling of accomplishment. In testing a comprehensive model, public service motivation is a modestly important predictor of organizational performance (Brewer and Selden 2000). Therefore, I can expect that public service motivation will be positively related with organizational performance. But the links between public service motivation and performance are clearly not yet robust (Alonso and Lewis 2001). It is meaningful to examine the relationship between public service motivation and organizational performance. Organizational Citizenship Behavior

Organizational citizenship behavior has been defined as ‘‘individual behavior that is discretionary, not directly or explicitly recognized by the formal reward system, and that in the aggregate promotes the efficient and effective functioning of the organization’’ (Organ 1988, 4). Organizational citizenship behaviors include working beyond required job duties (such as assisting others with their tasks), promoting a positive work environment, avoiding unnecessary conflicts, being involved in organizational activities, and performing tasks beyond normal role requirements. The practical importance of organizational citizenship behavior is that such behaviors improve efficiency and effectiveness in both public and private organizations. Smith, Organ, and Near (1983) used sixteen items for measuring citizenship behavior, which consists of two fairly interpretable and distinct factors—altruism and generalized compliance. Altruism is defined as helping coworkers personally, such as assisting a coworker to lift a heavy load. Generalized compliance is impersonal helpful behavior, such as being on time and not wasting time on the job. Organ (1988) proposed five categories of organizational citizenship behavior. Conscientiousness means that employees carry out in-role behaviors well beyond the minimum required levels. Altruism implies that they give help to others. Civic virtue suggests that employees responsibly participate in the political life of the organization. Sportsmanship indicates that people do not complain and have positive attitudes. Courtesy means that they treat others with respect. It has been argued that organizational citizenship behaviors facilitate organizational performance by lubricating the social machinery of organizations (Smith, Organ, and Near

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1983, 654). However, in contrast to the numerous studies exploring the antecedents of organizational citizenship behavior, in relatively few studies have scholars investigated the relationship between citizenship behavior and organizational performance (Bolino, Turnley, and Bloodgood 2002, 505). Podanskoff and Mackenzie (1997) also insisted that organizational citizenship behavior is linked to organizational performance. In a study conducted in a regional restaurant chain, Koys (2001) showed that organizational citizenship behavior influences profitability. Thus I can assume that there is a positive relationship between organizational citizenship behavior and organizational performance.

Organizational Performance

Organizational performance is hard to measure in the public sector. Brewer and Selden (2000, 689) propose a measure of organizational performance based on the perceptions of the organization’s members. Traditionally, objective data have been preferred for evaluating performance. Objective data have been believed to be less biased but are not always available, especially in the public sector. When objective performance data are not available, subjective (i.e., perceptual) performance measures may be a reasonable alternative (Allen and Helms 2002; Delaney and Huselid 1996; Dess and Robinson 1984; Dollinger and Golden 1992; McCracken, McIlwain, and Fottler 2001; Schmid 2002; Venkatraman and Ramanujam 1987). Although there is always some doubt cast upon selfreported and perceptual measures of performance, there is evidence of a high correlation between perceptual and objective measures at the organizational level. Dess and Robinson (1984) found a strong positive correlation between perceptual data and financial performance measures. Other studies have also found measures of perceived organizational performance correlated positively to objective measures of organizational performance (Dollinger and Golden 1992; McCracken, McIlwain, and Fottler 2001; Powell 1992; Venkatraman and Ramanujam 1987). There is a lack of consensus as to what constitutes a valid set of organizational performance and organizational effectiveness criteria (Au 1996; Forbes 1998; Ostroff 1992). Although many researchers rely on a single indicator, there seems to be a general agreement that multiple internal (preferred by internal participants) and external (preferred by clients and citizens) criteria are needed for a more comprehensive evaluation of organizations (Cameron 1986; Connolly, Conlon, and Deutsch 1980).2 Previous research has tended to focus on narrow, efficiency-related measures of performance and to neglect other values such as equity and fairness. Such narrow measures of performance can produce misleading conclusions about organizational effectiveness (Brewer and Selden 2000, 688). The concept of organizational performance refers to whether the agency does well in discharging the administrative and operational functions pursuant to the mission and 2 Epstein (1992) suggested that, for measuring the performance of a public service organization, we need to look not only inward to its own operations but also outward to the public. A comprehensive picture of the performance of a public service organization can be used to achieve external (or public) accountability as well as internal (or management) accountability for public service performance. Boschken (1992) developed constituency-grounded measures of performance in which constituencies and performances are classified into organization-centered and social program–centered categories. Wolf (1997) also used both outcome-oriented criteria and operation-oriented criteria for evaluating performance. Multiple internal and external criteria are needed for a more comprehensive evaluation of organizational performance (Jobson and Schneck 1982).


Table 1 Background of Respondents and Population

Demographic Variables Sex Age

Educational Background

Length of Service

Hierarchical Rankb

Characteristics

Respondents (%)a

Population (%)

Male Female 20s 30s 40s 50s or older High school diploma or under Junior college diploma (2 yrs) Undergraduate degree (4 yrs) Graduate degree or more 0–10 yrs 10–20 yrs 20þ yrs Grade 4 or higher Grade 5 Grade 6 Grade 7 Grade 8 or lower

69.9 30.1 5.9 44.0 43.3 6.8 17.0 15.8 52.7 14.5 35.2 41.9 22.8 3.8 15.1 27.1 28.4 25.5

78.9 21.5 14.8 41.1 29.9 14.2 34.8 19.5 40.0 5.7 45.0 29.9 25.1 2.9 7.8 22.7 30.4 36.2

Note: The number of respondents is 1,739 and that of the population is 275,046. The population is based on the public employee census that is conducted every five years (Ministry of Government Administration and Home Affairs 1998). a No answer is excluded. b Grade 1 is the highest level in the Korean civil service.

whether the agency actually produces the actions and outputs pursuant to the mission or the institutional mandate. The agency’s internal management and operation have contributed substantially to the achievement of these goals (Rainey and Steinbauer 1999). The dimensions of organizational performance in the public sector are divided into internal and external performance, and each specifies the following performance-related values: efficiency, effectiveness, and fairness. Organizational performance is assumed to be affected by individual-level variables. DATA AND METHODS

The model and hypotheses are tested using data from the 2001 survey of Park et al. (2001). The participants—2,000 permanent full-time public employees in nine central government agencies, five provincial government agencies, and twenty-six lower-level local government agencies in the Republic of Korea—were given surveys to complete during regular working hours in 2001; 1,739 completed surveys were returned, yielding a response rate of 87.0 percent. I included in the survey public employees from central government (29.1 percent), provincial governments (41.0 percent), and lower-level local governments (29.9 percent). Table 1 shows the distribution of respondents’ sex, age, educational background, length of service, and hierarchical rank, compared with these data for the whole civil service. The appendix describes how the independent and dependent variables are operationalized and reports means and standard deviations for each survey item. Respondents were asked to respond to items on a five-point scale, representing strong disagreement (1)

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Table 2 The Dimensions of Organizational Performance

Efficiency Organizational Focus

Internal External

Internal Efficiency External Efficiency

Administrative Values Effectiveness Internal Effectiveness External Effectiveness

Fairness Internal Fairness External Fairness

Source: Brewer and Selden (2000, 689).

to strong agreement (5). Thus a ‘‘3’’ represented indifference, that is, neither agreement nor disagreement. Twelve questions were used to measure the dependent variable, perceived organizational performance (a 5 0.8735). These items provide a broad assessment of perceived organizational performance by tapping each dimension of the concept shown in table 2. I operationalize job satisfaction with Mason’s (1995) ten-item index that includes the following facets: job interest, feedback from agents, comparable worth and pay, coworkers, external equity and pay, supervision, performance evaluation, fair treatment, overall job satisfaction, and company satisfaction (a 5 0.7787). I use the average value of all ten items to capture the degree of job satisfaction. Affective commitment is evaluated by the three items with the highest factor loading of the ‘‘Organizational Commitment Questionnaire’’ (Meyer, Allen, and Smith 1993). The scale reliability coefficient was 0.7806. For public service motivation I use five items that are very similar to those used in the studies of Alonso and Lewis (2001), Brewer and Selden (2000), and Naff and Crum (1999): two self-sacrifice questions, plus one each for public interest, compassion, and social justice (a 5 0.7479).3 I measure organizational citizenship behavior with seven items of altruism and two items of generalized compliance from the index of Smith, Organ, and Near (1983). The original index consists of sixteen items in which seven items represent altruism, as in this study, and nine items represent generalized compliance. But the other items in the category of generalized compliance, except two, are excluded, since some are not applicable in the context of Korean government and some are overlapped. The scale reliability coefficient was 0.7931. Demographic characteristics may influence organizational performance. To reduce the possibility of spurious statistical influence, I also measured demographic control variables: gender, age, educational background, length of service, and hierarchical rank. FINDINGS AND DISCUSSION

The organizational performance of government organizations in Korea was measured with twelve items of six dimensions, as in the appendix. The mean scores for internal factors are lower than those for external ones. The average values of the two questions in each category are 3.20 in internal efficiency, 3.45 in internal effectiveness, and 3.00 in internal fairness and 3.48 in external efficiency, 3.67 in external effectiveness, and 3.70 in external 3 I performed confirmatory factor analysis to see whether these five questions could be collapsed into a single index. Only one factor had an eigenvalue (2.506) higher than one and explained 50.1 percent of the variance. The factor loadings on the five questions were from 0.585 to 0.775.


Table 3 Predicting Organizational Performance

Control Variables Gender Age Education Length of service Hierarchical rank

Model 1 (b)

Model 2 (b)

0.098** 0.045 0.008 0.161*** 0.030

0.080** 0.013 0.020 0.073* 0.100***

0.052 15.276*** 0.052 15.276*** 1,392

0.360*** 0.103*** 0.073** 0.198*** 0.318 174.383*** 0.370 90.234*** 1,392

Individual-Level Variables Job satisfaction Affective commitment Public service motivation Organizational citizenship behavior Change in R2 F Change R2 F Value N Note: Categories for gender are coded as follows: 0 5 male and 1 5 female. *p , .05; **p , .01; ***p , .001.

fairness. The lowest means of all are for the two internal fairness items. That the responses about internal matters are lower or less favorable than the responses about external matters suggests that Korean public employees, like the American federal employees in the Brewer and Selden (2000) study, perceive that the external factors, such as ‘‘customers,’’ receive better attention and treatment than internal factors, such as fairness. This in turn suggests the importance of improving public personnel management practices related to internal fairness and efficiency. Using correlational analyses I examined the relationship between independent variables. As predicted, the significant correlations between individual-level factors were confirmed. I found a positive correlation between job satisfaction and affective commitment (r 5 0.629, p , .01), as well as between public service motivation and job satisfaction (r 5 0.459, p , .01) and between organizational citizenship behavior and job satisfaction (r 5 0.380, p , .01). Public service motivation and affective commitment were significantly correlated (r 5 0.479, p , .01). Organizational citizenship behavior is also positively correlated with public service motivation (r 5 0.555, p , .01) and similarly with affective commitment (r 5 0.399, p , .01). The statistical method employed is hierarchical regression, which resembles stepwise regression, except that independent variables are evaluated in a sequence theoretically predetermined by the researcher on theoretical grounds, rather than in order of magnitude of correlation. As shown in table 3, I entered the five control variables in Model 1 and added the four individual-level variables as independent variables in Model 2. As recommended by Cohen and Cohen (1983), this procedure provides a unique partitioning of the total variance accounted for in a dependent variable by a set of predictors. Any significant change in R2 resulting from the final step is due to unique contribution because confounding or spurious influences have been removed.

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Table 3 reports the results of hierarchical regression analysis.4 The initial equation regressed organizational performance on the five control variables.5 The demographic characteristics resulted in a highly significant (p , .001) 5.2 percent change in R2 for organizational performance. However, gender and the length of service accounted for the change. In Model 2, the addition of the four individual-level variables resulted in a highly significant (p , .001) change of 31.8 percent in R2 for organizational performance. Thus the individual-level variables had the significant relationships to organizational performance. I examined the standardized coefficients in order to estimate the relative importance of each individual-level variable that affects organizational performance. All four variables have statistically significant effects on organizational performance. The most influential variable is job satisfaction (b 5 0.360), and the next is organizational citizenship behavior (b 5 0.198). The findings also indicate that affective commitment (b 5 0.103) and public service motivation (b 5 0.073) contribute to organizational performance. Thus job satisfaction is a powerful predictor of organizational performance in government organizations. This study clarifies the effect of individual-level factors on organizational performance. Job satisfaction, affective commitment, public service motivation, and organizational citizenship behavior influence organizational performance. The present results can be compared with previous research findings. This study confirms that organizational performance will be improved by increasing public employees’ job satisfaction. Thus it supports the findings of Ostroff (1992), Yousef (1998), and Judge et al. (2001b). It also demonstrates that affective commitment is related to organizational performance. Thus it supports the research findings of Meyer et al. (1989) and Somers and Birnbaum (2000). The present result indicates that public service motivation will affect organizational performance; thus the findings of Naff and Crum (1999) and Brewer and Selden (2000) are confirmed. Also verified is Rainey and Steinbauer’s (1999) proposition that effective government agencies have high levels of public service motivation. Finally, it shows that there is a positive relationship between organizational citizenship behavior and organizational performance. Therefore it supports the earlier studies of Smith, Organ, and Near (1983), Podanskoff and Mackenzie (1997), and Koys (2001). The result means that people are the important cause of good organizational performance. Government agencies can be more successful when they value their employees and they view people not as a cost but as an asset. Government leaders are urged to have a better understanding of the importance of public employees in organizations. This result also supports the perspective of people-centered management (Pfeffer and Veiga 1999). Pfeffer (1998) states that people-oriented practices increase employee satisfaction and commitment, and hence people work harder and improve business performance results. The public sector also needs to provide people-centered practices for promoting public employees’ job satisfaction, organizational commitment, public service motivation, and organizational citizenship behaviors.6

There were no problems of multicollinearity among variables specified in the model. I included only respondents who answered all relevant survey questions. Pfeffer and Veiga (1999) uncovered the seven people-centered practices in successful companies: job security, careful hiring, self-managed teams and decentralization, generous pay for performance, extensive training, reduction of status differences, and sharing information. 4 5 6


These findings are also meaningful in the Korean context. Over the five-year period from 1997 to 2002 the Korean government introduced major reforms to create ‘‘a small and efficient but better serving government.’’ The first stage of the Korean reforms concentrated on reducing the size of the public sector and streamlining the bureaucracy through downsizing and privatization initiatives. In the relatively short space of just four years since 1998, a reduction of 20 percent of the total public sector employment at the end of 1997 was achieved. The government evaluated that this is a truly remarkable achievement, especially considering the low labor market mobility and transferability among jobs in Korea, as well as the employment culture that regards public sector jobs as practically lifelong tenured (Ministry of Planning and Budget 2003, 55–56). However, it is very doubtful whether this kind of reform raises government performance, since the reduction goal was given to each organization and the public employees older than a certain age were dismissed regardless of their competence or performance. This practice seems to negatively affect public employees’ attitude and government performance. The more effective way to enhance government competitiveness is to see the public employee as a source of strategic advantage, not just as a cost to be minimized, and to provide incentives and practices that promote positive employee attitudes. CONCLUSION

Brewer and Selden (2000) broadened the concept of organizational performance to include internal and external dimensions of efficiency, effectiveness, and fairness; and they tested common elements of existing theoretical frameworks empirically in the public sector. Following their research, this study elaborates the relationship between individual-level factors and organizational performance and tests it empirically in the government agencies of Korea. The present study shows the same trend in organizational performance as the findings of Brewer and Selden (2000): perceived internal efficiency and fairness are lower than the other dimensions of organizational performance in both the United States and Korea. Thus I can say that, like the U.S. respondents, the Korean public employees perceived lower levels of internal fairness and efficiency than of external dimensions of performance. Since public employees are most critical and central for implementing public policies and delivering public service, and since the agency’s operations have contributed substantially to the achievement of its mission and goals (Rainey and Steinbauer 1999), this suggests the need for more attention to this lower level of perceived fairness and efficiency. I verified that the individual-level factors are important predictors of organizational performance. Rainey and Steinbauer (1999) hypothesized that the several forms of motivation play a significant role in determining agency effectiveness. Brewer and Selden (2000) showed that their particular individual-level variables—such as the structure of task/work, task motivation, public service motivation, and individual performance— were modestly important predictors of organizational performance. I found that public employees reporting higher levels of job satisfaction and organizational citizenship behavior, and to a lesser extent higher levels of organizational commitment and public service motivation, report higher levels of organizational performance. The specific variables are different, but both studies have empirically verified that individual-level factors are important to predicting organizational performance in the public sector. This study has several limitations. First, the results from this study cannot fully address the causality issue. Although the individual-level variables were treated as predictors

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of organizational performance, the performance indexes could also have been used as predictors of individual-level factors. Future research is needed that uses longitudinal designs and time-lagged correlations to more adequately address causality. Second, this study relied on subjective performance measures. Although the importance of organizational performance is widely acknowledged, the measurement of organizational performance is one of the most difficult issues in the public sector. There is a need for researchers to compare employee perceptions of an organization’s performance with objective data in order to determine whether, and to what degree, subjective measures of performance are valid measures of objective performance in the public sector. Third, I used only four individual-level variables to predict organizational performance. Thus, future research should look for additional factors that affect organizational performance. The contributions of the present study are that it clarifies the effects of individual-level factors previously identified and discussed as important determinants of organizational performance and shows the same trend in the perceptual measure of organizational performance in both the United States and Korea. It also has a number of practical implications. It is clear that managers need to treat public employees with respect and with fair and equitable manners and that they need to use their employees’ knowledge and skills in looking for ways to become more efficient. Managers should also know how to better manage and promote employees’ satisfaction and attitudes, such as job satisfaction, affective commitment, public service motivation, and organizational citizenship behavior, in order to improve organizational performance. Future research should continue to explicate the relationship of individual-level factors to organizational performance.

APPENDIX SURVEY ITEMS AND STATISTICS FOR DEPENDENT AND INDEPENDENT VARIABLES Dependent Variable Organizational Performance (Alpha 5 0.8735)

(Internal efficiency) My organization has made good use of my knowledge and skills in looking for ways to become more efficient. (mean 5 3.11, std 5 0.89) (Internal efficiency) My organization is trying to reduce cost in managing organization and performing works. (mean 5 3.28, std 5 0.86) (Internal effectiveness) In the past two years, the productivity of my work unit has improved. (mean 5 3.37, std 5 0.80) (Internal effectiveness) Overall, the quality of work performed by my current coworkers in my immediate work group is high. (mean 5 3.52, std 5 0.79) (Internal fairness) My organization provides fair and equitable treatment for employees and applicants in all aspects of personnel management without regard to their political affiliation, sex, hometown, marital status, age, or handicapping condition. (mean 5 2.98, std 5 1.03) (Internal fairness) In general, all are treated with respect in my organization, with no regard to status and grade. (mean 5 3.02, std 5 0.96)


(External efficiency) My organization has conducted business relations with outside customers very promptly. (mean 5 3.39, std 5 0.84) (External efficiency) It is rare to make big mistakes in my organization when conducting work. (mean 5 3.57, std 5 0.78) (External effectiveness) The work performed by my work unit provides the public a worthwhile return on their tax dollars. (mean 5 3.74, std 5 0.83) (External effectiveness) The occurrence of goal attainment is very high in my organization. (mean 5 3.59, std 5 0.75) (External fairness) My organization provides fair and equitable services to the public, with no considering of their individual backgrounds. (mean 5 3.83, std 5 0.81) (External fairness) The customer satisfaction toward my organization is very high. (mean 5 3.56, std 5 0.78)

Independent Variables Job Satisfaction (Alpha 5 0.7787)

My job provides a chance to do challenging and interesting work. (mean 5 2.87, std 5 0.94) My superior gives me the information I need to do a good job. (mean 5 3.25, std 5 0.91) My pay compares fairly with the pay of people doing similar work in this organization. (mean 5 3.17, std 5 1.03) Most employees give their best effort in doing their jobs. (mean 5 3.70, std 5 0.83) My pay compares fairly with the pay of people doing similar work in other organizations. (mean 5 1.99, std 5 0.86) My supervisor shows me respect as an individual. (mean 5 3.50, std 5 0.93) I have a clear understanding of how my performance is judged. (mean 5 2.94, std 5 0.96) My organization takes employee interests/concerns into account in making important decisions. (mean 5 3.01, std 5 0.91) I feel good about my job—the kind of work I do. (mean 5 3.16, std 5 0.91) Overall, my organization is a good place to work. (mean 5 3.26, std 5 0.92) Affective Commitment (Alpha 5 0.7806)

I feel a strong sense of belonging to my organization. (mean 5 3.52, std 5 0.88) My organization has a great deal of personal meaning for me. (mean 5 3.18, std 5 0.92) I feel like part of the family in my organization. (mean 5 2.96, std 5 0.92)

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Public Service Motivation (Alpha 5 0.7479)

The work I do as a civil servant on my job is very important to me. (mean 5 3.48, std 5 0.84) I am not afraid to go to bat for the rights of others even if it means I will be ridiculed. (mean 5 3.40, std 5 0.83) Making a difference in society means more to me than personal achievements. (mean 5 3.45, std 5 0.84) I am prepared to make enormous sacrifices for the good of society. (mean 5 3.34, std 5 0.87) I am often reminded by daily events about how dependent we are on one another. (mean 5 3.53, std 5 0.79)

Organizational Citizenship Behavior (Alpha 5 0.7931)

I assist my supervisor with his or her work. (mean 5 3.76, std 5 0.67) I make innovative suggestions to improve my department. (mean 5 3.04, std 5 0.81) I volunteer for things that are not required. (mean 5 3.17, std 5 0.81) I orient new people even though it is not required. (mean 5 3.68, std 5 0.74) I help others who have been absent. (mean 5 3.42, std 5 0.76) I attend functions that are not required but that help organization image. (mean 5 3.69, std 5 0.71) I help others who have heavy workloads. (mean 5 3.58, std 5 0.69) I do not spend time in idle conversation. (mean 5 3.42, std 5 0.80) I do not take extra breaks. (mean 5 3.55, std 5 0.78)

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