Psychometrics Final Project

Running Head: EMPLOYEE LOYALTY AND TEAM BUILDING 1

Measuring Constructs of Employee Loyalty and Team Building

“Validation Report”

June 27th, 2015

The Chicago School of Professional Psychology

Sima Zandi

EMPLOYEE LOYALTY AND TEAM BUILDING

Table of Contents

Executive Summary.............................................................................................................3

Project Planning...................................................................................................................4

Research...............................................................................................................................5

i. Employee Loyalty………………………………..……………………………………………..…….5

ii. Team Building…………………………………………………………………………………...7

Test Development................................................................................................................8

Test Administration...........................................................................................................10

Scoring...............................................................................................................................11

Test Implementation..........................................................................................................12

Consulting Fees.................................................................................................................13

References/Appendices......................................................................................................14

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EMPLOYEE LOYALTY AND TEAM BUILDING 3

Executive Summary

This project aims to examine the constructs of employee loyalty and team

building, and evaluates an instrument that was developed to measure these two

constructs. The purpose of the instrument is to provide I/O psychologists and

organizations, with insight into the attitudes of employees, specifically attitudes

towards company loyalty and team building behavior, in order to improve business

functions. This insight can be very valuable to organizations seeking to improve

profitability, increase employee motivation, improve teamwork and strengthen

corporate culture. Further, it can be useful for organizations who are suffering from

high turnover costs because it allows them to measure team effectiveness and how

invested their employees are in the organization. In order to develop this

instrument, existing literature on both constructs were researched to discover the

dimensions of each construct and create items that best measure an employee’s

attitudes and opinions. The developed instrument includes 60 items, with the first

ten questions being demographic questions, 23 questions measuring the construct

of company loyalty, and the remaining 27 measuring the construct of team building.

The items that measure team building are from an existing team assessment

questionnaire developed by TeamSTEPPS 2.0. Thirty-three people participated in

the testing for this instrument, and all questions, with the exception of the

demographic questions, were answered on a five-point Likert scale ranging from

‘Strongly Disagree’ to ‘Strongly Agree’, with the choice of a neutral option in

between.


Project Planning

As mentioned earlier, this instrument is useful for organizations seeking to

improve teamwork and reduce high turnover costs. Productive employees are the

backbone for organizational success, and research has suggested that there is a linkage

between productivity and employee loyalty. Team building is associated with employee

engagement, which is important to measure because team effectiveness is also a large

part of organizational success. After defining the constructs, there were considerations

regarding what the instrument’s intended purpose would be, and if there were any

existing measurements. A literature review was then completed to operationalize each

construct and discover if there are multiple facets associated with the constructs. Once the

constructs were operationalized, a test plan was created to include test content, target

population, and details of the test including methodology for scoring, administration

instructions, and administration process. In order to measure the construct of loyalty, an

instrument was developed based on findings from the literature review to incorporate

items that would accurately measure employee attitudes towards loyalty as well as their

opinions. As for team building, an existing team assessment questionnaire was found and

27 items from the assessment were incorporated into this instrument. A minimum of 30

respondents was needed to complete the test, and statistical data would be analyzed to

include validation, reliability, principal components, and correlations. The stakeholders

involved in this project are the employees, I/O psychologists and test developers, and

anyone who is invested in the organization whether it is clients, senior level executives,

and shareholders.

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Research

Employee Loyalty

Over the years, the employer-employee relationship has changed dramatically. In

today’s generation, there is much less loyalty between employer and employee, and it is

not uncommon for a person to hold several jobs in their lifetime. Employee loyalty is a

construct that has multiple meanings depending on which perspective is taken. It is

loosely defined because its definition resides mostly in the perceptions of the individual.

Typically, employees have unique perceptions related to loyalty, and create a

psychological contract with their organizations that influence how they act and react to

organizational decisions based on their perceived obligations. Philosopher John Ladd

(1987) described loyalty as a wholehearted devotion to an object, in which the object can

include a person, group of people, or an organization. Further, John Haughey (1993)

argued that an employee could have multiple loyalties in an organization, and that the

object of one’s loyalty could be a direct supervisor, management team, a team of

colleagues, a department, or even a service or product that the organization provides.

Loyalty can also be referred to as a relational connection, which develops over time from

shared experiences of the same place, person, or events. (Shrag, 2001). For the purpose

of this instrument, employee loyalty is defined as

The construct of employee loyalty is multidimensional and includes dimensions

such as reciprocity, identification, and different levels of commitment. Reciprocity is

related to psychological contracts that employees have with their employers. According

to Rousseau and McLean Parks (1993), psychological contracts are transactional in

nature and can be in terms of currencies. For example, psychological contracts can be

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economic (contributing time and effort in exchange for monetary benefits), relational

(pledging personal attachment and devotion to an organization in exchange for

professional development), or ideological (feelings associated with contributing to a

noble cause)(Rousseau and McLean Parks, 2003). In addition, Shrag (2001) argues that

an organization’s acknowledgement or expression of appreciation for an employee’s

loyalty/personal investment in the company could foster thoughts of reciprocity and make

employees believe that the organization values and appreciates them. As a result, that

employee is more likely to sustain loyalty with the company.

Identification with one’s own organization, the organization’s mission statement,

activities, or products enhances feelings of loyalty to the organization because there is a

personal investment (Shrag 2001). Further, if an employee identifies with the mission of

their organization, it may possibly lead to them putting the organizations welfare above

their own. This might include staying extra hours to get work done, declining better job

offers, or taking time away from family to complete projects. Edwards (2005) writes that

organizational identification reflects the ‘underlying link or bond that exists between the

employee and the organization, which is potentially capable of predicting many important

attitudes and behaviors in the workplace’ (p. 207). It is also suggested that organizational

identification increases the likelihood that staff will stay at the organization and make

decisions that are in the organization’s strategic interest (Dutton et. al, 1994).

Organizational commitment is an important component of loyalty, and is defined

as a ‘psychological state that characterizes the employee’s relationship with the

organization, and has implications for the decision to continue or discontinue

membership in the organization’ (Meyer and Allen, 1991). The difference between

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loyalty and organizational commitment is that loyalty is regarded a duty whereas

commitment is a personal choice. Further, loyalty implies mutuality whereas commitment

is conceptually located within the individual (Hart & Thompson, 2007). Organizational

commitment itself has three distinctions, which Meyer and Allen (1991) articulated.

These distinctions include affective, continuance and normative commitment. Affective

commitment is an employee’s emotional attachment and involvement in the organization.

Continuance commitment refers to an awareness an employee has of the costs associated

with leaving the organization. Lastly, normative commitment reflects feelings of

obligation to stay with an organization. Each of these three dimensions- Reciprocity,

identification, and commitment- are considerable components to the construct of

employee loyalty.

Team Building

Team building is often used interchangeably with teamwork when in fact they are

two distinct concepts. Team building focuses on the formation of a team, and the

activities in which a group learns to work together as a cohesive unit. Teamwork, on the

other hand, is the outcome from team building activities. Many organizations today rely

on the teamwork of employees to achieve organizational success. According to Salas et.

al (2005), the construct of team building has four approaches: Goal setting, role

clarification, problem solving, and interpersonal relations management. Goal setting is a

team building strategy that involves setting objectives, which encourage individuals to

become involved in an action plan to achieve organizational goals as a team. Role

clarification is an approach that provides a clear understanding of what each individual is

responsible for to make sure the entire team can succeed. Problem solving is an important

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component of team building that encourages critical thinking to discover effective

solutions to various task-related problems. In addition to critical thinking, individuals are

encouraged to develop interpersonal relationships with their peers to resolve problems

quickly and internally, without the need for an external intervention. Lastly, interpersonal

relations management emphasizes a need for a facilitator, or leader, to develop feelings of

mutual trust, confidence in the team, and open communication between team members.

This leads to fewer conflicts, improved teamwork skills, and stronger communication.

When organizations face organizational problems such as customer complains,

high turnover, and low teamwork, some managers look for an easy fix or a one-time

event to resolve their issues. According to Lantz (2007) a successful team-building

process “should be approached strategically and should result in actionable ideas to help

the team and organization achieve their goals” (p. 12). Further, team building is about

exercises that allow a group to learn about each other’s behavioral styles, learning styles,

motivational profiles, strengths/weakness, and personality traits. Only after a team gets to

know each other will they know how to effectively work together towards a common

goal.

Test Development

Methodology

This instrument was created to measure the psychological constructs of employee

loyalty and team building in a team environment. In this measure, employee loyalty is

defined as being personally invested in an organization and feeling valued by an

employer/organization. In contrast, the construct of team building is defined as

creating interpersonal relationships with coworkers, and working in collaboration

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to achieve organizational goals. Since this instrument is measuring attitudes, it is a

measure of typical performance. In order to develop this test, a literature review was done

on each of the constructs to gain as much knowledge as possible in order to create test

items that would fully assess a person’s attitudes and opinions.

Target Population

The intended population to which the results of the study would be generalized to

is any employee who works as of a team environment.

Test Content

The test is composed of 60 items, 10 of which are demographic questions

addressing respondents’ current employment including what job industry they are in,

their job title, and how long they have been employed within their organization. There are

also traditional demographic questions such as age/sex/race. Twenty-three questions are

designed to measure the three dimensions of employee loyalty. Specifically, there are 11

items written to measure the facet reciprocity, five items to measure identification with

one’s organization, and 7 measuring commitment. Each item contains a statement that is

related to loyalty and an employee’s attitudes and feelings of obligation to organization.

The remaining 27 items were taken from an existing team assessment questionnaire

designed by TeamSTEPPS 2.0 to measure team behavior. Each of the items aims to

measure both constructs as well as address each of the dimensions. The test utilizes

closed-ended questions based on Likert-type responses ranging from ‘Strongly Disagree’

to ‘Strongly Agree’, including a neutral choice in between.

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Scoring Methodology

The instrument was scored using a traditional aggregate scoring method on a

five-point Likert scale. Since the test is in online format, scores will automatically

transfer to another document as soon as the respondents complete the test. The scoring

system has not yet been determined.

Test Administration

Instructions

Respondents are provided with a link to the instrument where they will be

instructed to answer the items as accurately as possible. It is a timed test, giving the

respondents 20 minutes to answer 60 questions.

Administration Process

The test is administered in an online format, with a message before the test

informing respondents that the test is anonymous, and scores will only be used for

the test developer’s purposes. This is to relieve any text anxiety that some

individuals may have due to the instrument’s sensitive content, and to be compliant

with APA ethics code. Tests can be administered in two ways: Individually, or as a

group but it is suggested to administer the test in a group setting to eliminate the

risk of unverified or fraudulent respondents. There will be an individual proctoring

the exam in case there are any questions or interruptions.

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Pilot test results

Thirty-six respondents attempted to complete the test, but only 33 of their

scores transferred. Out of the 33 respondents, 19 were females and 14 were males.

The largest amount of respondents were found to be between the ages of 25-34 and

have been with their organizations for three years or less.

Final Scoring

As mentioned earlier, all scores were collected upon completion of the test.

Data were collected for all 60 items contained in the measure. Descriptive statistics

were assessed for mean, median, mode, standard deviation, range, skewness, and

kurtosis. A reliability analysis was performed to determine item-total correlations,

inter-item correlations, and internal consistency (Cronbach’s alpha) of the

instrument. A principal components analysis was completed to determine how

many factors each item loaded onto. Based on a minimum eigenvalue of 1.0, the

output shows that 50 items loaded on a total of nine factors. For the construct of

team building, all 27 items loaded on a total of 5 factors. Cronbach’s alpha was .977,

which demonstrates high internal reliability. The Kaiser-Meyer-Olkin measure of

sampling adequacy (KMO) for team building was .596, which indicates that the

sample size is sufficient for this construct.

For the construct of employee loyalty, 22 out of 23 items loaded on a total of

four factors. The KMO measure was .668, and Cronbach’s alpha was .869, which is

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an acceptable demonstration of internal reliability for this construct. Overall, the

instrument demonstrates a reliability coefficient of .970.

Test Implementation

Recommendations

It is recommended to improve the sample to more accurately measure the

construct of employee loyalty. In this sample, 66% of respondents were aged 25-34.

It is recommended that the sample size is increased to obtain data from all age

groups. The reason is because the millennial generation has a much lower predicted

likelihood of maintaining loyalty to their organization. In addition, 66% of the

respondents have been in their current position for three years or less, so it is

suggested to test a larger sample size in the future to gather more data from older

employees who have established themselves in an organization.

Ethical Considerations

All processes and data will be carried out with considerations for the APA

ethics code. Respondents will be informed as to how the information is used and for

what purpose. Due to the sensitive nature of some of the items, the answers will be

submitted anonymously to protect the identity of respondents. Accommodations

will also be made to consider diversity and individuals with disabilities.

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Consulting Fees

Consulting fees are charged by project. For this type of project, the rate is

$1500, which is calculated by multiplying an hourly rate by the hours needed to

complete the project. It also factors in travel time needed for the project.

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References

Dutton, J.E., Dukerich, J.M. and Harquail, C.V. (1994). Organisational images and

member identification. Administration Science Quarterly, 39, 239– 263.

Edwards, M. R. (2005). Organizational identification: A conceptual and operational

review. International Journal Of Management Reviews, 7(4), 207-230.

doi:10.1111/j.1468-2370.2005.00114.x

Hart, D. W., & Thompson, J. A. (2007). UNTANGLING EMPLOYEE LOYALTY: A

PSYCHOLOGICAL CONTRACT PERSPECTIVE. Business Ethics Quarterly,

17(2), 297-323.

Haughey, John C, "Does Loyalty In the Workplace Have a Future?" Business Ethics

Quarterly 4 (1993): 1-16.

Lantz, G. (2007). Team Building Blocks and Breakthroughs. Human Resource Planning,

30(2), 12-13.

Schrag, B. (2001). THE MORAL SIGNIFICANCE OF EMPLOYEE LOYALTY.

Business Ethics Quarterly, 11(1), 41-66.

Salas, E., Priest, H. A., & DeRouin, R. E. (2005). Team building. In N. Stanton, H.

Hendrick, S. Konz, K. Parsons, & E. Salas (Eds.), Handbook of human factors

and ergonomics methods (pp. 48-1, 48-5). London: Taylor & Francis.

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Appendix A

Pilot Test

What is your gender?MaleFemaleOther

What is your race/ethnicity?WhiteHispanic/LatinoBlack/African AmericanAsian/Asian-AmericanNative AmericanPacific IslanderTwo or more racesOther

What is your age?Under 1818-2425-3435-4444-54Over 55

What is your highest level of education completed?Less than high school

Some high school education, no diplomaHigh school diploma or equivalentSome college, no degreeTechnical/Vocational degreeAssociate’s degreeBachelor’sMaster’sProfessional degreeDoctoral DegreeOther:

What is your marital status?SingleMarried/Domestic partnershipWidowed

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SeparatedDivorced

What is your current employment status?Self-employedPart-timeFull-timeHomemakerStudentMilitaryRetiredUnemployed

If you answered yes to the question above, what industry best describes your current employer?

For profitNon-profitGovernmentHealthcareEducationRetailFinanceSelf-employedOtherNot Applicable

Which of the following most closely matches your job title?InternEntry-levelAnalyst/AssociateManagerSenior ManagerDirectorVice PresidentC Level ExecutivePresident/CEOOwner

How long have you been with your current organization?Less than one year1-3 years3-5 years5-7 years7-10 yearsOver 10 years

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How many jobs have you had in your life?Never worked

1-22-33-44-55-66-77-88 or more

*The following questions are to be answered on a 1-5 Likert Scale ranging from Strongly Disagree to Strongly Agree.

1. I enjoy my job.

2. My organization values me.

3. I am proud to be a part of this organization.

4. My organization is one of a kind.

5. My organization encourages my development.

6. I feel respected by my organization.

7. I am satisfied with my pay.

8. I have a good relationship with my manager.

9. My organization knows who I am.

10. I feel appreciated at work.

11. I envision my future with this organization.

12. I trust my organization.

13. I have plans to leave my job in the next year.

14. I am actively looking for another job.

15. I would leave my current organization if the right opportunity came along.

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16. I feel disconnected from my work.

17. My organization could easily replace me.

18. I am satisfied with the benefits my organization gives me.

19. The success of my organization is important to me.

20. My organization looks out for my best interests.

21. My organization is aware of my career goals.

22. My organization provides me opportunity to grow in my career.

23. I agree with my organization’s core values.

Appendix B

1. This team works well together.

2. The team is on a continuous improvement curve,

3. Everyone on the team has a clear and vital role.

4. Everyone on the team participates at an acceptable level.

5. Team meetings are run efficiently.

6. Team functioning doesn’t interfere with getting my own job done.

7. The team members communicate well with one another.

8. The team uses effective decision making processes and problem solving skills.

9. Constructive feedback is given by the team.

10. The team can change or improve the way it goes about working on tasks.

11. Morale on this team is high.

12. The team has a clear vision of what it is supposed to do.

13. The team’s goals are closely aligned with the goals of the organization.

14. This team works well with other teams/departments in the organization.

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15. Team members trust each other

16. I have an influence on team decisions.

17. Team members show consideration for needs and feelings of other team members.

18. There are no feelings among team members, which might pull this team apart.

19. Team members support each other.

20. The team resolves conflicts soon after they occur.

21. Team members receive recognition for individual performance.

22. The goals and objectives of this team will have a positive impact on the organization.

23. The team’s activities are guided by a clear Mission Statement/Charter.

24. The team is productive.

25. The team is fun to work with.

26. I am a member of a team in which the leader promotes teamwork.

27. I am pleased to be on a team.

28. The team has positive self-image.

Appendix C

Team Assessment Questionnaire

TeamSTEPPS 2.0

Please answer on a scale of Strongly Disagree to Strongly Agree. Team Foundation

1. The team has a clear vision of what it is supposed to do. 2. The team's activities are guided by a clear Mission Statement/Charter. 3. The team's goals are closely aligned with the goals of the organization. 4. The team has adequate skills and member resources to achieve its goals. 5. Everyone on the team has a clear and vital role.

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6. The team has adequate meeting time, space, and resources to achieve all objectives.

7. Team meetings are well attended by all team members.8. The team can measure its performance effectively.9. The team understands its customer requirements (internal and/or external).10. This team is promptly informed of changes in policy or new developments.11. The department or unit has clear expectations of this team.12. The team receives adequate training to function effectively.13. Team meetings are run efficiently

14. Everyone on the team participates at an acceptable level.15. This team works well together.16. This team works well with other teams/departments in the organization.17. Thegoalsandobjectivesofthisteamwillhaveapositiveimpactontheorganization. Team Performance

19. The team uses an effective short and long-term strategic planning process.

20. The team meets its (internal and/or external) customer requirements.21. The team is productive.22. Team functioning doesn't interfere with getting my own job done.

Team Skills

23. The team members communicate well with one another.24. Constructive feedback is given by the team.25. Team members are familiar with each other's job responsibilities.26. The team uses effective decision making processes and problem solving skills. 27. The team monitors and progresses the plan of care.28. The team can change or improve the way it goes about working on its tasks.

29. My boss/supervisor promotes participation by the team in key decisions.30. My boss/supervisor shares responsibilities with team members.31. My boss/supervisor is an effective leader.32. I share my ideas/suggestions whether or not my boss/supervisor agrees with my input. 33. Myboss/supervisorfocusesonbuildingteam’stechnicalandinterpersonalskills.

34. My boss/supervisor coaches and supports individual team members.35. My boss/supervisorpromotesindividualproblemsolvingandintelligentrisktaking. 36. My boss/supervisor leads by example.

37. Team members trust each other.38. Morale on this team is high.39. Team members support each other.40. There are no feelings among team members, which might pull this team apart.

41. The team resolves conflicts soon after they occur.

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42. I feel free to express my opinions.43. I have an influence on team decisions.44. Team members can openly discuss their own problems and issues.45. Team members show consideration for needs and feelings of other team members.

46. Team members receive recognition for individual performance. Team Identity

47. I know why I am on a team.48. I am pleased to be on a team.49. The team subscribes to a clear set of values.50. This team is fun to work with.51. No individual, group or gender dominates team activities.52. The team has a positive self-image.53. The team recognizes the patient as a critical team member.54. The team is a safety net for patients.55. I am a member of a team in which the leader promotes teamwork.

THANK YOU FOR FILLING OUT THIS FORM

Quality Values Research and Consulting Services http://www.qvresearch.com

Appendix C

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Appendix D

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Appendix E

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Appendix F

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Psychometrics Final Project