You are here

Impact of Caring Climate, Job Satisfaction, and Affective Commitment on Employees’ Performance in the Banking Sector of Bosnia and Herzegovina

Journal Name:

Publication Year:

Abstract (2. Language): 
The main purpose of this paper is to examine the impact of caring climate, employees' job satisfaction, and affective commitment on employees' job performance in a banking sector. This study proposes that caring climate has a significant direct effect on overall job satisfaction, affective commitment, and job performance. Moreover, it suggests that caring climate has an influence on job performance through overall job satisfaction and affective commitment. Additionally, affective commitment is considered to be a mediator in the relationship between overall job satisfaction and job performance. In this study, the relationships among the variables were evaluated using factor analysis, descriptive statistics, correlations, and regression. The results based on a sample of 152 employees from one public and three private banks in the Federation of Bosnia and Herzegovina support the hypotheses. This study demonstrates that caring climate has a significant direct influence on overall job satisfaction, affective commitment, and job performance. Furthermore, caring climate has an indirect effect on job performance. Finally, this research discovers an indirect relationship between overall job satisfaction and employees’ job performance through a mediating role of affective commitment

JEL Codes:



Allen, N. J., & Meyer, J. P. (1996). Affective, Continuance, and Normative Commitment to the
Organization: An Examination of Construct Validity. Journal of Vocational Behavior, 49, 252–
Alonderiene, R. (2010). Enhancing informal learning to improve job satisfaction: Perspective
of SMEs managers in Lithuania. Baltic Journal of Management, 5(2), 257–287.
Banking Agency of FBiH, (2016, March 31). Information on the Banking System of FBiH.
Retrieved on September 26, 2016, from website:
Baron, R.M. & Kenny, D.A. (1986). The moderator-mediator variable distinction in social
psychological research: conceptual, strategic, and statistical considerations. Journal of
Personality and Social Psychology, 51, 1173–1182, doi:10.1037/0022- 3514.51.6.1173.
Berg, J. (2014, October 26). What Are the Biggest Human Resources Challenges at Banks?
Retrieved on September 22, 2016, from American Banker website:
Churchill, G. A. (1979). A paradigm for developing better measures of marketing constructs.
Journal of Marketing Research, 64–73.
Coskun, A., & Ilgün, E. (2009). Reconstruction and Developments in the Banking Sector of
Bosnia and Herzegovina, 1. International Symposium on Sustainable Development, Sarajevo.
Cullen, J. B., Parboteeah, K. P., & Victor, B. (2003). The effects of ethical climates on
organizational commitment: A two-study analysis. Journal of Business Ethics, 46, 127–141.
Dale, C. (2005). 5 ways to show employees how much you care: Printing News, 154(20), 16.
Deshpande, S. P. (1996). Ethical climate and the link between success and ethical behavior.
An empirical investigation of a non-profit organization. Journal of Business Ethics, 315–320.
Douglas, S. B. (1997) Organizational citizenship behavior among hospital employees: a
multidimensional analysis involving job satisfaction and organizational commitment.
Hospital & Health Services Administration, 42(2), 221-241.
Dinc, M. S., & Huric, A. (2016). The impacts of ethical climate types on nurses' behaviors in
Bosnia and Herzegovina. Nursing Ethics, 1-14.
Dinc, M. S., & Aydemir, M. (2014). Ethical leadership and employee behaviours: an empirical
study of mediating factors. International Journal of Business Governance and Ethics, 9(3),
Filipova, A. A. (2011). Relationships among ethical climates, perceived organizational
support, and intent-to-leave for licensed nurses in skilled nursing facilities. Journal of Applied
Gerontology, 30(1), 44–66.
Foreign Investment Promotion Agency of Bosnia and Herzegovina, (2015, September 18).
Retrieved on June 15, 2016, from website:
Impact of Caring Climate, Job Satisfaction, and Affective Commitment on Employees …
EJBE 2016, 9 (18) Page | 15
Fu, W., Deshpande, S. P., & Zhao, X. (2011). The impact of ethical behavior and facets of job
satisfaction on organizational commitment of Chinese employees. Journal of Business Ethics,
104, 537–543.
Fu, W., & Deshpande, S. P. (2012). Factors impacting ethical behavior in a Chinese stateowned
steel company. Journal of Business Ethics, 5, 231–237.
Fu, W., & Deshpande, S. P. (2013). The impact of caring climate, Job satisfaction, and
Organizational Commitment on Job Performance of Employees in A China's Insurance
Company. Journal Business Ethic, 339-349.
Grdinovac, J. A., & Yancey, J. B. (2012). How organizational adaptations to recession relate to
organizational commitment. The Psychologist-Manager Journal, 15, 6–24
Hira, A., & Waqas, I. (2012). A Study of job satisfaction and IT's Impact on the performance in
the banking industry of Pakistan. International Journal of Business and Social Science, 174-
Huang, X., & Bond, M. H. (2012). Handbook of Chinese organizational behavior: Integrating
theory, research. Northampton, MA: Edward Elgar Publishing.
Huang, C. C., You, C. S., & Tsai, M.T. (2012). A multidimensional analysis of ethical climate,
job satisfaction, organizational commitment, and organizational citizenship behaviors.
Nursing Ethics, 19(4), 513–529.
Iqbal, M. T., Latif, W., & Naseer, W. (2012). The impact of person job fit on job satisfaction
and its subsequent impact on employees performance. Mediterranean Journal of Social
Sciences, 3(2), 523–530.
Jaramillo, F., Mulki, J. P., & Marshall, G. W. (2005). A meta-analysis of the relationship
between organizational commitment and salesperson job performance: 25 years of
research. Journal of Business Research, 58, 705–714.
Jaramillo, F., Mulki, J. P., & Solomon, P. (2006). The role of ethical climate on salesperson's
role stress, job attitudes, turnover intention, and job performance. Journal of Personal
Selling & Sales Management, 3, 271–282.
Jayaratne, R. T. (1993). The antecedents, consequences, and correlations of job satisfaction.
In R. T. Golombiewski (Ed.), Handbook of organizational behavior (pp. 111-140). New York:
Marcel Dekker.
Kim, W. C., & Brymer, R. A. (2011). The effects of ethical leadership on manager job
satisfaction, commitment, behavioral outcomes, and firm performance. International Journal
of Hospitality Management, 30, 1020–1026.
Locke, E. A. (1976). The Nature and Causes of Job Satisfaction. In Handbook of Industrial and
Organizational Psychology (pp. 1297-1350). Chicago: Rand McNally.
Malik, M. E., Nawab, S., Naeem, B., & Danish, R. Q. (2010). Job satisfaction and
organizational commitment of university teachers in Public sector of Pakistan. International
Journal of Business and Management, 5(6), 17–26.
Meyer, J. P. and Allen, N. J. (1991). A three-component conceptualization of organizational
commitment. Human Resource Management Review, 1(1), 61–90.
Page |16 EJBE 2016, 9 (18)
Meyer, J. P., Allen, N. J., & Smith, C. A. (1993). Commitment to organizations and
occupations: Extension and test of a three-component conceptualization. The Journal of
Applied Psychology, 78(4), 538–551.
Meyer, J. P., & Allen, N. J. (1997). Commitment in the Workplace: Theory, Research and
Application. Thousand Oaks, CA: Sage.
Moorman, R. H., Niehoff, B. P., & Organ, D. W. (1993) Treating employees fairly and
organizational citizenship behavior: sorting the effects of job satisfaction, organizational
commitment, and procedural justice. Employee Responsibilities and Rights Journal, 6(3),
Mulki, J.P., Jaramillo, F., Locander, W.B. (2006). Effects of ethical climate and supervisory
trust on salesperson's job attitudes and intentions to quit. Journal of Personal Selling & Sales
Management, 26 (1), 19–26.
Okpara, J. O., & Wynn, P. (2008). The impact of ethical climate on job satisfaction, and
commitment in Nigeria. Journal of Management Development, 27(9), 935–950.
Sharma, D., Borna, S., & Stearns, J. M. (2009). An Investigation of the Effects of Corporate
Ethical Values on Employee Commitment and Performance: Examining the Moderating Role
of Perceived Fairness, Journal of Business Ethics, 89, 251–260.
Shore, L. M., & Wayne, S. J. (1993). Commitment and employee behavior: comparison of
affective commitment and continuance commitment with perceived organizational support.
Journal of Applied Psychology, 78, 774-780.
Smith, C. A., Kendall, L. M., & Hulin, C. L. (1969). The Measurement of Satisfaction in Work
and Retirement: A Strategy for the Study of Attitudes: Rand McNally, Chicago.
Sommer, K. L., & Kulkarni, M. (2012). Does constructive performance feedback improve
citizenship intentions and job satisfaction? The roles of perceived opportunities for
advancement, respect, and mood. Human Resource Development Quarterly, 23(20), 177–
Spector, P. E. (1997). Job satisfaction: Application, assessment, courses, and consequences:
Sage Publications, Inc.
Trading Economics (2016). Unemployment Rate in BiH. Retrieved on July 11, 2016 form
Trevino, L. K., Butterfield, K. D., & McCabe. K. L. (1998). The ethical context in organizations:
influence on employee attitudes and behaviors. Business Ethics Quarterly, 8: 447–476.
Tsai, M., & Huang, C. (2008). The Relationship among Ethical Climate Types, Facets of Job
Satisfaction, and the three components of organizational commitment: a study of nurses in
Taiwan. Journal of Business Ethics, 80, 565–581.
Victor, B., & Cullen, J. B. (1987). A theory and measure of ethical climate in organizations. In:
Frederick WC and Preston LE (eds) Business ethics: research issues and empirical studies (pp.
77–97). Greenwich: JAI Press, Inc.
Victor, B., & Cullen, J. B. (1988). The organizational bases of ethical work climates.
Administrative Science Quarterly, 33: 101–125.

Thank you for copying data from