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3 1.3 The Purpose of the Study

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ORGANIZATION COMMITMENT IN A WORKPLACE AT PETRONAS DAGANGAN BERHAD

NUR ‘ATIQAH BINTI MOHD TAIB 2013816084

FAZREEN BINTI KAMSUDIN 2013476032

BACHELOR OF BUSINESS ADMINISTRATION WITH HONORS (HUMAN RESOURCE MANAGEMENT)

FACULTY OF BUSINESS MANAGEMENT UNIVERSITY TEKNOLOGI MARA

MELAKA

JUNE 2016

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i

ORGANIZATIONAL COMMITMENT IN A WORKPLACE AT PETRONAS DAGANGAN BERHAD

NUR „ATIQAH BINTI MOHD TAIB 2013816084

FAZREEN BINTI KAMSUDIN 2013476032

Submitted in Partial Fulfillment of The Requirement for The

Bachelor of Business Administration with Honors (Human Resource Management)

FACULTY OF BUSINESS MANAGEMENT UNIVERSITI TEKNOLOGI MARA

MELAKA

JUNE 2016

DECLARATION OF ORIGINAL WORK

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ii

BACHELOR OF BUSINESS ADMINISTRATION WITH HONOURS (HUMAN RESOURCES MANAGEMENT)

FACULTY OF BUSINESS MANAGEMENT UNIVERSITI TEKNOLOGI MARA

MELAKA

“DECLARATION OF ORIGINAL WORK”

I, NUR „ATIQAH BINTI MOHD TAIB, (I/C Number: 940508045112) and FAZREEN BINTI KAMSUDIN, (I/C Number 940223105580)

Hereby, declare that:

 This work has not previously been accepted in substance for any degree, locally or overseas, and is not being concurrently submitted for this degree or any other degrees.

 This project-paper is the result of my independent work and investigation, except where otherwise stated.

 All verbatim extracts have been distinguished by quotations mark and sources of my information have been specifically acknowledged.

SIGNATURE: ... DATE: ……….

SIGNATURE: ... DATE:………..

NUR „ATIQAH BINTI MOHD TAIB

FAZREEN BINTI KAMSUDIN

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iv

TABLE OF CONTENTS

Page

TITLE PAGE 1

DECLARATION OF ORIGINAL WORK 2

LETTER OF TRANSMITTAL 3

ACKNOWLEDGEMENT 4

TABLE OF CONTENTS 5

LIST OF FIGURES 8

LIST OF TABLES 9

LIST OF ABBREVIATIONS 10

ABSTRACT 11

Chapter 1: Introduction 1

1.1 Background of the Study... 3

1.2 Problem Statement... 3

1.3 The Purpose of the Study... 4

1.4 Research Question... 5

1.5 Research Objective... 5

1.6 Significance of the Study... 5

1.7 Definition of Key Terms... 5

Chapter 2: Literature Review 2.1 Introduction... 7

2.1.1 Affective commitment... 8

2.1.2 Continuance commitment... 9

2.1.3 Normative commitment... 10

2.2 Theoretical Framework and Hypothesis... 11

2.2.1 Dependent variables... 11

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ix ABSTRACT

Organizational commitment (OC) is one of the most fundamental concepts that has been explored in relation to workforce motivation and productivity. Its importance in any organization cannot be underrated. It is believed that employees with strong organizational will work harder in order to contribute to organization’s performance. It is also a psychological state that binds an employee to an organization, and the Three-Component Model of organizational commitment (Meyer & Allen, 1991) posits that employees bind with their organizations as a result of desire (affective commitment), need (continuance commitment) and obligation (normative commitment). Similarly, relationship commitment between two people also has been conceived as a psychological state (Rusbult & Buunk, 1993), and Arriaga and Agnew (2001) outlined affective, cognitive and conative components of the state. This exploratory study examined the relationship between these conceptually parallel commitment models by determining how the dimensions of the three types of commitment correlate with one another. Data collected from 121 working adults at Petronas.

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