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The impact of employer-employee relations on employee commitment: a case

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 Kelaniya Journal of Human Resource Management
Volume 12, Number 02 - July 2017
DOI: http://doi.org/10.4038/kjhrm.v12i2.38

The Impact of Employer-Employee Relations on

Employee Commitment: A Case from Sri Lanka

L. D. Sawithri1, H. M. Nishanthi2 and K. G. Amarasinghe3

1,2,3
Department of Human Resource Management, Faculty of Commerce and
Management Studies, University of Kelaniya, Sri Lanka
1
[email protected], [email protected], [email protected]
https://orcid.org/0000-0001-8519-1501

Abstract

Many factors influence the employee commitment in an organizational setting, where

the employer-employee relationships play a significant role. There have been a
considerable amount of research conducted to identify the impact of supervisor
relationship on employee commitment. In this paper, the researchers specifically
analyzes the impact of line manager relationship and trust with senior management
on employee commitment with reference to Ceylon Electricity Board (CEB) in Sri
Lanka. The study is of deductive in nature. Primary data have been collected through
a structured questionnaire using a random sample of CEB including 86 assistant
level employees where data were obtained from 54 respondents. According to the
results of the study, it shows a high positive impact of the line manager relationship
and trust in senior management on employee commitment at CEB which directly
relates with productivity. Hence, it is recommended to grow and uplift the employer-
employee relationships through greater coordination and building a climate of trust.

Keywords: Employee Commitment; Line Manager Relationship; Trust in

Senior Management; Employer-Employee Relations

1. Introduction
Organisational commitment often has been viewed as a necessary and
essential element in measuring employee behaviour in organisations, which
also tends to vary based on organisational/work settings (Brian &
Christopher, 2011). Producing employee commitment has also been seen as
a leading issue that many managers face in running their organisations
(Chew & Chan, 2008). The importance of creating commitment has been
enhanced ever before due to its high association in increasing organisational
productivity, performance, employee satisfaction as well as lowering
absenteeism (Payne & Huffman, 2005). Furthermore, organsational

https://orcid.org/0000-0001-8519-1501
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commitment portrays the attitude and the healthiness of the link between the
employer and the employee (Stites & Michael, 2011) as well where line
manager relationships and trust in senior management play a significant role.

Line managers in orgnisations occupy a vital position in achieving major

goals and objectives of the organisation due to their close link and direct
impact on subordinates’ motivation and commitment (Andersen, Cooper, &
Zhu, 2007). Further, as in most work settings line managers are partly
responsible in executing HR functions which are directly related in creating
a supporting working environment (Macky & Boxall, 2007; Meyer & Smith,
2000). A viable working environment then creates greater employee
commitment (Eisenberger, Huntington, Hutchinson & Sowa, 1986). Line
managers who enable employees to participate in decision making may
engender positive employee attitudes toward the organization because the
employee feels recognized, heard, and subsequently more satisfied with his
or her immediate supervisor (Korsgaard & Roberson, 1995). Hence, it is
visible that managing healthy line manager relationships as part of employer-
employee relations is of greater importance.

Moreover, degree to which employees’ feel that there is a climate of trust

within the organisation would impact the organisational structure, level of
communication, job satisfaction as well as employee commitment (Zeffane
& Connell, 2003). The creation of climate of trust is specifically essential
between the managers and employees in order to generate positive results
(Whitener, Brodt, Korsgaard & Werner, 1998). Further, in organizations,
senior management needs the trust of its members to maintain direction over
the process of implementing strategic decisions (Korsgaard, Schweiger, &
Sapienza, 1995). Hence, it could also be noted that a study of trust with senior
management and employee commitment would create novel insights as a
factor affecting employee commitment.

It is believed that organizational success depends on its employees’

commitment (Hackman & Oldham, 1976). In the international context, there
is a considerable body of literature that documents the influence of
commitment on supervisor level employees (e.g., Kinicki & Vecchio, 1994;
Vandenberghe, Bentein, & Stinglhamber, 2004). With regard to the
significance of this current study, only few research studies have been
conducted on the supervisors’ impact in terms of both the independent

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variables; line manager relationship (e.g. Gilbert, De Winne, & Sels, 2011)
and the senior management trust (e.g. Farndale, Hope-Hailey, & Kelliher,
2011; Ruppel & Harrington, 2000). Pate, Beaumont and Stewart (2007) in
their study assessed issue of trust in senior management in the public sector
in United Kingdom which stress the robustness of the employer-employee
relations. They found that there is an issue of trust in senior management in
public sector companies where the findings were in line with the studies
conducted by Davis and Landa (1999).

Farndale, Van Ruiten, Kelliher, and Hope‐Hailey (2011) also found that there
is a positive association between line manager relationship and trust in senior
management with employee commitment. However, these research were
conducted in a European context. Zeffane and Melhem (2017) in their
comparative study between public and private sector organisations in United
Arab Emirates found that public sector employees feel that there is a greater
trust between them and the public sector employer while there was a greater
association between trust and turnover intention in private sector employees.
Hence, it is worthwhile to examine these relationships in Asian context as
well. Unfortunately researchers did not find any empirical study which
assesses these employer-employee relations (line-manager relationships and
trust in senior management) associating with employee commitment. There
were no significant amount of research done in Sri Lankan context in this
regard; especially relating to the Ceylon Electricity Board (CEB). With
internal information, it is found that there is no much relationship between
the management and lower level employees of CEB. Therefore, it is important
to study on this impact over other organizational factors. Thus, in this study,
authors have focused on investigating the impact of employer-employee
relations on the employee commitment in CEB, Sri Lanka.

The main objective of this study was to identify, the impact/extent of

employer-employee relations on employee commitment in CEB. Further,
following specific objectives were established in order to accomplish the
main objective of the study.

 To identify the level of employee commitment of CEB

 To identify the impact of line manager relationship on employee
commitment of CEB

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 To identify the impact of senior management trust on employee

commitment of CEB

Studying this impact reduces the gap in knowledge and gives organizations
an in-depth understanding of how far these factors affect employee
commitment especially in government or semi government organizational
environments in Sri Lanka. The learning through this study will help the Sri
Lankan government and other organizations to develop better by investing in
trust and a sound supervisor relationship. This study will also provide
guidance for future research on this particular area.

The rest of the paper is structured with a literature review on the concepts of
employee commitment, line-manager relationship and trust with senior
management. This is followed by a conceptualisation where the researcher
develops the conceptual model with the support of the literature. Next, the
methodology of the study is discussed followed by the analysis and results of
the study. Subsequently, the paper discusses the findings finally the
concluding remarks of the study are presented.

2. Literature Review
2.1. Employee Commitment

In the management and behavioural science literature, organizational

employee commitment is a key factor in the relationship between individuals
and organizations. Many organisations identify and stress the significance of
employee commitment as a vehicle for delivering competitive edge over
others by retaining key talent with the organisations. Hence, employee
commitment has been mostly viewed as degree of employee attachment to
the organisation (Brian & Christopher, 2011). Raju and Srivastava (1994)
also described organizational commitment as the factor that promotes the
attachment of the individual to the organization. They further state that the
employees are regarded as committed to an organization if they willingly
continue their association with the organization and devote considerable
effort to achieving organizational goals.

In literature, the term ‘employee commitment’ and ‘organizational

commitment’ are used interchangeably. Employee commitment is a feeling
of dedication to one’s employing organization, willingness to work hard for

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that employer, and the intent to remain with that organization (Meyer &
Allen, 1988). According to Meyer and Allen (1997), a respected theory
proposes that there are three components to organizational commitment:
affective, continuance, and normative commitment. Affective commitment is
an emotional attachment to the organization. Continuance commitment is
characterized by a more rational analysis of the costs of staying versus leaving
the organization. Normative commitment is a sense of moral obligation to
stay with the organization.

Employee commitment is not a new concept in the study of behavioural

science. This topic was examined as early as 1938 (Barnard, 1938).
According to Barnard (1938) organizational commitment is, in a general
sense, the employee's psychological attachment to the organization. It can be
contrasted with other work-related attitudes, such as job satisfaction (an
employee's feelings about their job) and organizational identification (the
degree to which an employee experiences a 'sense of oneness' with their
organization). There is no doubt on how the organizational commitment
leads to job satisfaction, which is also considered as a component and a
predictor of organizational commitment (LaLopa, 1997).

It is very important to identify factors on which organizational employee

commitment is dependent, but there is no clear understanding on how the
factors purported to be associated with it contribute to its development or how
these organizational factors can be managed to promote the development of
organizational commitment (Beck & Wilson, 2001). Unfortunately,
commitment has historically been found to exert little direct influence on
actual work performance, although lessened turnover intention and consistent
attendance are themselves critically important pro-organizational attitudes
and actions (Mathieu & Zajac, 1990). Apart from these scholars, studies
conducted by scholars such as Fiorito et al., 2007; Wright and Bonett (2002);
Allen and Meyer (1996) have found that there is an association between
employee commitment and variables such as employee performance and
intention to quit (Aladwan, Bhanugopan, & Fish, 2013). However, Colbert
and Kwon (2000) identified a negative association between employee
commitment and intension to quit.

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2.2. Line Manager Relationship

Employees may experience the effect of employee voice as status
confirmation because they feel valued by their line manager who enabled the
opportunity for employee voice. In turn, the employee may respond with
higher levels of organizational commitment (Korsgaard et al., 1995). Another
explanation might be that although line managers represent the organization
as a whole to the employee (Konovsky & Pugh, 1994), this is only the case if
these line managers act according to the interests of the organization. When
the line manager’s interests are incongruent with the organization’s, the
employee may respond to the opportunity for voice provided by a line
manager with behaviour that is considered valuable to the line manager, but
not to the organization (Coyle-Shapiro & Shore, 2007). The direct
relationship between the employee–line manager relationship and
organization-level commitment thus may be diluted.

2.3. Trust in Senior Management

Erturk (2008) found that trust in supervisors mediates between managerial

communication and openness to change, and also found a partial relation
between participation and openness to change via trust in supervisors.
Readiness for change is influenced by employees’ beliefs of self-efficacy,
appropriateness, management support, and personal valence. In an attempt to
integrate the key components of prior approaches to trust, Mayer, Davis, and
Schoorman (1995) defined trust as the willingness to be vulnerable to another
party when that party cannot be controlled or monitored. This definition
explicitly recognizes the relationship between trust and the critical issue of
risk (Deutsch, 1958), since risk is inherent in vulnerability.

Several studies conducted in work organizations have shown a positive

relationship between trust and performance (Deluga, 1994; Pettit, Goris, &
Vaught, 1997; Podsakoff, MacKenzie, & Bommer, 1996), while others have
indicated no relationship (Cropanzano, Prehar, & Chen, 1999; Konovsky &
Cropanzano, 1991; Mac Kenzie, Podsakoff, & Rich, 2001). Lack of trust can
be expected to divert an employee's attention from activities that contribute
to his or her organization. When employees lack trust in management that is,
are unwilling to be vulnerable to management their cognitive resources will
be pre-occupied with non-productive issues, especially activities focused on

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self-protection (Deming, 1994) or defensive behaviours (Ashforth & Lee,

1990).

2.4. Relationship between Line manager relationship and employee

commitment
Farndale, Van Ruiten, Kelliher, and Hope‐Hailey (2011) in their study found
that in addition to a link between perceptions of the opportunity for employee
voice and organizational commitment, the relationship is also partially
mediated by the employee–line manager relationship and trust in senior
management. The mediation through the employee line manager relationship
is weaker than the direct relationship, whereas the mediation through trust in
senior management is stronger than the direct relationship between employee
voice and organizational commitment, almost substituting it. Konovsky and
Pugh (1994) also found a strong relationship between employee–line
manager relationship and positive employee behaviour such as organizational
citizenship behaviour. Citizenship behaviour, however, is a more appropriate
response to line managers when reciprocating obligations in social exchange
relationships (Liden, Sparrowe, & Wayne, 1997). The direct relationship
between the employee line manager relationship and organization-level
commitment thus may be diluted. In contrast, organizational commitment is
measured at the same level as trust in senior management (i.e., at the
organization level); therefore, we might expect this relationship to be
stronger.
2.5. Relationship between trust in senior management and employee
commitment
It is expected that a strong climate of trust in the organization should motivate
members to develop a sense of identification to the goals, values, and loyalty
to the organization. This line of reasoning is premised on research evidence
that shows that in an organization where trusting relationships are weak,
employees reported higher levels of stress and diminished job satisfaction
(Ladebo, 2006) and withholds citizenship behaviours (Coyle-Shapiro, 2002).
Nevertheless, it is noted that environments which are more stress free and
jobs with greater satisfaction is connected with enhanced employee
commitment (Vigoda, 2002).

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According to Vandenberghe, Panaccio, Bentein, Mignonac, & Roussel

(2011), among the various factors of commitment, the supervisors are
particularly important because they are formally responsible for monitoring
the performance of employees, are involved in decisions regarding pay and
promotions that affect their employees and are increasingly made accountable
for reducing turnover in their teams. Thus, affective commitment to the
supervisor, which depicts a high quality relationship between employees and
their supervisors (Cheng et al., 2003), is likely to have a significant bearing
on employees’ work related attitudes and behaviours. Based on the literature
reviewed, following hypotheses were formulated for the study.
H1: There is an impact of line manager relationship on employee
commitment in CEB.
H2: There is an impact of trust in senior management on employee
commitment in CEB.
The conceptual framework for the study is depicted as follows based on the
hypothesised relationships.

Line Manager
Relationship
Employee
Commitment
Trust in Senior
Management

Figure 01: Conceptual Framework

Source: Authors

According to the model, independent variables are line manager relationship

and trust in senior management whereas, the dependent variable of the study
is employee commitment.

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3. Method
The current study is cross sectional in nature. The unit of analysis is
individual employee. The population of the study comprised of all 86
assistant level employees of the CEB head office as given below.

Table 1: Population of the Study

Employee Level Number of employees

Account Assistant 20
Audit Assistant 18
HR Assistant and HR officers 8
Electrical Superintend 22
Other Assistant 18

For the convenience of the research, 60 (75%) assistant level employees were
randomly selected from each division including, Corporate and Regulation,
Finance Division, Supply, Personal Branch, Planning and Development
Branch, Legal, Energy marketing, Distribution. Primary data were collected
by distributing a well-structured questionnaire among the sample. The
questionnaire was of four parts including questions with regards to
demographics of the sample, line manager relationship, trust in senior
management and employee commitment. Organizational commitment was
measured using items based on Mowday et al.’s (1979) while Employee–line
manager relationship was measure using items extracted from Cook and Wall
(1980) and Unden (1996). Trust in senior management was measured using
four items derived from Cook and Wall (1980) (Farndale, Van Ruiten, &
Hope-Hailey). All the items were measured on a five point Likert scale. Items
in the questionnaire comprised of positive as well as negative questions such
as “my line manager is good at his/her job and “our senior management would
be prepared to gain advantage by deceiving the workers”. Secondary data of
this study were collected through past scholars researches, journals, books
and web sites. After the data collection was performed, data were analysed
using SPSS version 16.

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4. Results
4.1.Sample Composition
A majority (37%) of the employees were in the technical service while 18
(33.3%) employees were assistant accountants. Service, 7 (13%) employees
were in HR service and 9 (16.7%) of the employees were engaged other
services. Out of the 54 respondents majority 32 (40.7%) were female and the
balance 22 (59.3%) were male employees. 45 (83.3%) employees were
permanent employees whereas, 9 (16.7%) employees were on a temporary
basis. In terms of the level of experience, it is noted that 11.1% of them have
less than 1year experience and majority of them are working for CEB
between 1-10 years (29.6%). 16.7% of the respondents were with the
experience of 11-20 years, (25.9%) are acquired between 21-30 and 16.7 %
of the respondents managers were having more than 30 years of experience.

4.2. Reliability of the Measurements

Table 02: Reliability Statistics

Reliability Statistics No of items Cronbach's Alpha
Line manager relationship 5 0.963
Trust in senior management 4 0.897
Employee Commitment 6 0.933

The Cronbach’s Alpha value is more than 0.7 in all the independent variables
and dependent variable. Therefore as per Sekaran and Bougie (2010), the
questionnaire is reliable.

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4.3. Descriptive Statistics

Table 03: Descriptive Statistics

Line Trust in
Employee
Descriptive Statistics Manager Senior
Commitment
Relationship Management
Mean 3.64 3.58 3.69
Median 4.00 3.75 4.00
Std. Deviation 0.96 0.96 0.99
Variance 0.92 0.92 0.99
Minimum 1.60 1.75 1.67
Maximum 5.00 5.00 5.00

According to the descriptive statistics presented in Table 3, the mean value

for line manager relationship 3.64 out of a five point likert scale.This
indicates that line managers are having a good relationship with the
employees in CEB. Further, as indicated in the table 3 the mean value for
trust in senior management is 3.58. This indicates that level of trust in senior
management by the employees is high. Level of commitment of the
employees can also be viewed as high as the mean indicates a comparatively
higher value (3.69) out of five point likert scale.

4.4. Correlation Analysis

Table 04: Pearson Correlation Statistics

Line Manager Trust in senior

Variables Commitment
Relationship management
Line Manager
1
Relationship
Trust in senior
1
management
Commitment 0.864** 0.889** 1
** Correlation is significant at the 0.01 level (2-tailed)
* Correlation is significant at the 0.05 level (2-tailed)
Note (01): (1) Between .1-.3: small effect. (2) Between .3-.5: medium effect. (3)
Above .5: large effect.

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According to Table 4, Pearson correlation value indicates that the correlation

is 0.864 at a 99% confidence level. Hence, it could be noted that there is a
strong positive correlation between line manager relationship and
commitment could be further explained as, when there is greater line manager
relationship greater will be the commitment of employees to the organization.
Therefore, researchers conclude that, there is strong relationship between line
manager relationship and employee commitment. Further, the Pearson
correlation coefficient of 0.889 at a 0.01 confidence level indicates that there
is a strong positive association between trust in senior management and
employee commitment as well.

4.5. Hypotheses Testing

For the current study simple regression analysis was employed to test the
hypotheses.

Table 05: Simple Regression Results

Method Value
R2 0.747
Adjusted R2 0.742
F 153.197
Sig. ∆F .000
B – constant 0.415
Standardized Beta 0.864

According to the table 5, the b value of the equation, the slope of the
regression, is 0.864 which is significant. As indicated by adjusted R squared,
approximately 74.7 % of the variance of commitment is explained by line
manager relationship with the standardized beta of 0.864. The F value is
153.197, which is significant (P=.000), which suggests that line manager
relationship has significantly explained 74.7% of the variance of
commitment. Hence, as per the results H1 is accepted; There is an impact of
line manager relationship on employee commitment in CEB.

According to the table 6, as indicated by adjusted R squared, approximately

79.1 % of the variance of commitment is explained by trust in senior

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management with the standardized beta of 0.889. The F value is 196.53,

which is significant (P=0.000), which suggests that trust in senior
management has significantly explained 79.1%of the variance of
commitment. Hence, as per the result of the simple regression analysis
conducted between the two variables H2 is accepted; There is an impact of
trust in senior management on employee commitment in CEB).

Table 06: Simple Regression - Trust in Senior Management

Method Linear
R2 0.791
Adjusted R2 0.787
F 196.53
Sig. ∆F 0.000
B – constant 0.372
Standardized Beta 0.889

5. Discussion
The current study examined the impact of employer-employee relations on
employee commitment specially interms of employee-line manager
relationship and trust in senior management. Based on the results presented
above it was found that there is a strong positive impact of both the
independent variables, i.e.; line manager relationship and trust in senior
management on employee commitment. This highlights the fact that
employees would be much more commited to the organisations if they are led
by mainitining proper relationships with their immediate superiors. Further,
if the employees can trust their senior management in treating them fairly as
well as making the right decisions for the future which would benefit both the
employer and employee their level of commitment would alos intern
enhanced. Hence, the current study is of greater importance as it points out
that better and trusted leadership would result in better employee commitment
and performance.

However, following suggestions can also be presented in order to further

strengthen this bond. Each and every organization should enhance their line
manager relationship and trust in senior management, because there is a high
impact of them on employee commitment. In the current study setting, most

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of line managers deemed to be good at his job and they support for the
employees when employees have a problems at work. This practice should
be further strneghtened in order to keep employees from leaving the
organisation. As well as they should give feedback on how well employees
are performing in their work. Most of senior management make sensible
decisions for this organization and they would not be prepared to gain
advantage by deceiving the workers. To maintain a strong relationship
further, it is suggested to conduct events such as annual trips, annual
sportsmeet, provide sufficient resources & better working environment,
create friendly working conditions to increase commitment.

With regard to the limitations of the study, only sixty employees were
selected as the sample where only 54 employees responded. It is assumed that
the sample selected from CEB head office is the same as other branches,
where it is not the real case. Therefore, the findings may differ from the actual
situation, and it is difficult to generalize with other organizations. That limits
comparability as well. Timing has also been a constraint in the study. The
researcher has gone through a lot to minimize the limitations and do the best
work possible in finding out the relationship.

6. Conclusion

The results from this study examined and determined the relationship as well
as the impact between line manager relationship, trust in senior management
and employee commitment. It was found that there is a strong positive impact
of the variables concerned on the employee commitment. Hence, it could be
said that in this era the organizations should consider the line manager
relationship and trust in senior management to a greater extent in achieving
goals if expect greater commitment form the employees’end as well.

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