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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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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.
EMPLOYEE LOYALTY AND TEAM BUILDING
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.
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Appendix C
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Appendix D
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Appendix E
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Appendix F
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