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Influence of Organisational Citizenship Behaviour (OCB) on Organisational Effectiveness (OE): Experiences of Banks in India


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1 Professor of OB & HR, Faculty of Commerce, Banaras Hindu University, Varanasi, Uttar Pradesh, India
     

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Mounting NPA, competition from non-banking financial institutions and foreign banks, bureaucratisation, increasing political pressure, losses in rural branches, and maintaining asset quality are a few alarming indicators of organisational effectiveness in the Indian banking sector. The study intends to address how organisational effectiveness may be improved through organisational citizenship behaviours of commercial bank employees in India. The study has adopted the eastern OCB scale of Farh et al. (1997) and the western 24-item OCB scale, developed by Podsakoff et al. (1990), consisting of five subscales, namely altruism, conscientiousness, sportsmanship, courtesy, and civic virtue. Common Method Variance (CMV) has been verified using Harman’s One Factor Test. The scholar has applied second-order analysis, by Ordinal Regression techniques using PLUM (Polytomous Universal Model), for understanding the influences of OCB on the aggregated factor score of OE. It is found that out of 30 indicators, only 17 were found significant and create 55.8% (Nagelkerke effect size) variation on organisational effectiveness. Since the OCB of bank officials indicates positive and significant influence towards the organisational performance, the management should take into account the special attention and treatment given to enhance the identified indicators which create the OCB and the organisational effectiveness variables, in order to deliver excellent service performances to the customers.

Keywords

Human Resources, Organisational Citizenship Behaviour, Organisational Effectiveness, Banking Industry, Service Quality, Internal and External Effectiveness
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  • Influence of Organisational Citizenship Behaviour (OCB) on Organisational Effectiveness (OE): Experiences of Banks in India

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Authors

Sudhir Chandra Das
Professor of OB & HR, Faculty of Commerce, Banaras Hindu University, Varanasi, Uttar Pradesh, India

Abstract


Mounting NPA, competition from non-banking financial institutions and foreign banks, bureaucratisation, increasing political pressure, losses in rural branches, and maintaining asset quality are a few alarming indicators of organisational effectiveness in the Indian banking sector. The study intends to address how organisational effectiveness may be improved through organisational citizenship behaviours of commercial bank employees in India. The study has adopted the eastern OCB scale of Farh et al. (1997) and the western 24-item OCB scale, developed by Podsakoff et al. (1990), consisting of five subscales, namely altruism, conscientiousness, sportsmanship, courtesy, and civic virtue. Common Method Variance (CMV) has been verified using Harman’s One Factor Test. The scholar has applied second-order analysis, by Ordinal Regression techniques using PLUM (Polytomous Universal Model), for understanding the influences of OCB on the aggregated factor score of OE. It is found that out of 30 indicators, only 17 were found significant and create 55.8% (Nagelkerke effect size) variation on organisational effectiveness. Since the OCB of bank officials indicates positive and significant influence towards the organisational performance, the management should take into account the special attention and treatment given to enhance the identified indicators which create the OCB and the organisational effectiveness variables, in order to deliver excellent service performances to the customers.

Keywords


Human Resources, Organisational Citizenship Behaviour, Organisational Effectiveness, Banking Industry, Service Quality, Internal and External Effectiveness

References