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(Loscocco, K, 1990) Career Structures and Employee Commitment
(Loscocco, K, 1990) Career Structures and Employee Commitment
(Loscocco, K, 1990) Career Structures and Employee Commitment
Commitment "'
Karyn A. LOSCOCCO, State University of New York at Albany
This study draws from the labor market and aging literatures to develop a frame-
work for understanding the implications of career structures for commitment to
work and company. Survey results indicate that the positive relationship between in-
ternal labor market (ILM) membership and organizational commitment is explained
by the greater promotion opportunities associated with ILMs. It is suggested that
work commitment is enhanced by ILM membership because it provides links to mul-
tiple career paths which offer many possibilities for future advancement even when
mobility is currently blocked. In addition, differences in the ways that careers unfold
in ILMs and non-ILMs appear to be partially responsible for age variation in em-
ployee commitment within non-ILMs.
This research examines the link between career structures and employee
commitment, or attachment to work and company. Careers, defined broadly
as a set of work role transitions which comprise one's work life (Schein,
1983), have been identified as a key mechanism through which organiza-
tions can strengthen the valued employee-work linkage which such commit-
ment represents. Yet careers vary systematically in their levels or job security,
job rewards, and in their reward trajectories (Kalleberg and Berg, 1987)
affecting their ability to produce strong employee commitment.
The specific organizational or occupational context in which careers are
structured is the labor market (Serensen, 1983; Althauser and Kalleberg,
1981). Internal labor markets (ILMs), characterized by considerable job
security and elaborate job ladders (Althauser and Kalleberg, 1981), have
been identified as extremely effective commitment-inducing mechanisms
(Edwards, 1979; Rosenbaum, 1984; Lmcoln and Kalleberg, 1985). Thus
work and organizational commitment should be stronger among employees
who hold jobs positioned within internal labor markets.
*1 would like to thank Arne Kalleberg, Barbara Lawrence, Michael Wallace, Judith Blau, and
the SSQ reviewers for their helpful suggestions on previous drafts. In addition, I gratefully
acknowledge the help of Robert W, White with the interviews and the research assistance of
Joyce Robinson. Editor's note: Reviewers were Lotte Bailyn, James Lincoln, Jon Lorence, and
William Markham,
Yet the extent of and reasons for the presumed impact of labor market
membership on employee commitment have not been explored fully. If com-
mitment to work and company is stronger among employees positioned
within ILMs, is it because of greater job rewards, the greater job security, or
the longer career trajectories? The potential explanatory power of the career
trajectory is underscored by reports that reactions to one's work at a given
point in time may be conditioned by future expectations (Van Maanen,
1977; Schem, 1980). Nor has the relationship between labor markets and
other key career variables, such as age (Riley, Johnson, and Foner, 1988;
Lawrence, 1984), been given adequate research attention. Of particular in-
terest is the way in which the rules governing movement within and between
labor markets, which are subject to wider economic and social forces, affect
the commitment of employees who are at different career stages.
Data from a sample of 493 employees of a midwestern manufacturing
plant are used to examine the issues raised above. A case study approach is
useful in this endeavor for a number of reasons. First, it facilitates the use of
direct measures of labor markets, since job ladders within the firm can be
clearly differentiated. Additionally, the single-firm focus allows confidence
that variation in labor market outcomes are in fact due to differences in the
ways in which careers are structured within different markets rather than a
variety of other environmental and organizational properties which may in-
fluence labor market structure. Finally, it eases collection of detailed infor-
mation on career structures and commitment to work and company. This
can be helpful in sorting out, for instance, the ways in which changes in pro-
motion rules combine with career position to condition the relationship be-
tween labor market membership and employee commitment.
Two widely studied aspects of employee commitment are chosen for this
investigation: organizational commitment, the degree of attachment to and
identification with the company (Porter, Crampon, and Smith, 1976), and
work commitment, the relative importance of the work role to one's sense of
self (Loscocco, 1989). Theory holds that career structures which provide
highly valued incentives will enhance commitment to both the work role
(Faunce and Dubin, 1975) and the organization (Clark and Wilson, 1961).
In addition, it has been suggested that organizational commitment will be
enhanced when the individual has a long investment in and/or has few alter-
natives to the current employment situation (Becker, 1960; Staw, 1976).
Organizational commitment is a less global concept than work commit-
ment, since it depends on the evaluation of a specific company. Work com-
mitment signifies a generalized attachment to work itself, which may depend
upon more than one's feelings about the current job. Thus if certain features
of career structures reflect projections for work beyond the current work-
Career Structures and Employee Commitment 55
place, they will probably affect work but not organizational commitment.
These themes will be examined in more detail as the discussion proceeds.
non-ILMs should partially account for the greater work commitment on the
part of ILM employees. Yet the discussion of promotion opportunity above
indicates that one must look to the career trajectories associated with ILM
membership to explain fully the predicted relationship. Because ILMs pro-
vide links to multiple career paths, employees of such markets are more
likely than their counterparts in non-ILMs to envision future advancement
to better jobs. Such projections strengthen commitment to work even if the
chances of promotion from one's current job to the next position on one's
career trajectory are not especially promising (Van Maanen, 1977). Since
work commitment is a more generalized attachment than organizational
commitment, the greater eventual promotion chances in ILMs probably fig-
ure more prominently in heightening the former type of commitment.
Company Tenure. A much-touted feature of internal labor markets is
their tendency to provide job security for their employees (Kalleberg and
Berg, 1987; Lincoln and Kalleberg, 1985). Thus it is important to ask (1) to
what extent the presumed positive relationship between ILM membership
and work commitment is due to this particular feature of such careers and
(2) whether the impact of company tenure differs for those whose jobs are
positioned in noninternal labor markets.
One argument is that unless company tenure is tied directly to upward
mobility, it will not enhance commitment to work (e.g.. Guest, 1954; Kanter,
1977). While internal labor markets differ in their use of seniority as op-
posed to ability to assign employees to different kinds of job shifts, ability
(often indexed by education) tends to be most important in awarding pro-
motions (Althauser and Kalleberg, 1981). This suggests that company tenure
does not mediate the relationship between ILM membership and work com-
mitment, since it has relatively little to do with chances to obtain the greater
rewards associated with upward mobility. Similarly, theories of organiza-
tional commitment predict a positive relationship between company tenure
and attachment to the company for reasons unrelated to career structure.
Employees who have been with the company the longest have built up the
greatest investment, heightening their organizational commitment (March
and Simon, 1958; Staw, 1976).
If past authors are correct about the ultimate importance of promotion in
the relationship between careers and work commitment (Chinoy, 1955;
Kanter, 1977), company tenure should be negatively related to work com-
mitment in non-ILMs. For instance Guest (1954) found that lower level em-
ployees who had been with an automobile company for a long time had
lowered their work aspirations to fit the reality of their limited opportunity.
Promotion Rules. The policies which govern promotion within and be-
tween organizational labor markets condition outcomes such as employee
Career Structures and Employee Commitment 57
positioned within ILMs will be more committed to work and company than
those who hold non-ILM jobs. The discussion suggests that this positive
impact of ILM membership on commitment results more from long career
trajectories, which increase promotion opportunity, than from the long
company tenure associated with ILMs. Moreover, it is suggested that the
multiplicity of possible career moves presented by ILM membership proba-
bly plays a key role in enhancing commitment to work.
In addition, it is predicted that labor market membership conditions the
experience of people of different career stages. For instance, the differential
impact of changed promotion criteria within the two types of labor markets
sbould result in a positive impact of age and a negative impact of education
on work commitment among those in non-ILMs, reflecting the greater frus-
tration of younger employees.
mttment is the unweighted average (a = .72) of items which derive from the
Porter scale (Porter et al., 1974).'
Internal labor market membership is determined by whether one's job is
tied to others in an upward sequence which entails the accumulation of skills
(1 = yes; 0 = no). The personnel manager's assessments of groups of job
titles at MED were used to classify each job held by a survey respondent.
He was asked which types of jobs fit the description of internal labor mar-
kets. Information about career ladders and the skills associated with par-
ticular jobs contained in company documents and gained through employee
interviews aided in the coding of this variable as well.'
Promotion opportunity is assessed by the unweighted average (a = .72)
of four items which ask the employee to assess the opportunity structure at
Plant 45. A subjective measure of promotion opportunities is deemed ap-
propriate because, as the classic American soldier studies (Stouffer et al.,
1949) demonstrated, evaluations of promotion opportunities may have a
greater impact on reactions to work than do actual opportunities.''
Education is represented by years of schooling, coded into categories
from 0 = none to 7 = more than college.
Two of the most well-established influences on work employee commit-
ment—autonomy (Blauner, 1964; Lorence and Mortimer, 1981, 1985) and
intrinsic rewards (Lawler and Hall, 1970; Kanter, 1977) are included in one
of the regression models as well. Earnings (in dollars) are entered as a
control.
Autonomy is represented by a five-point Likert item which assesses the
extent of disagreement that "My job does not let me help make decisions
that affect me."
Intrinsic rewards is assessed by the unweighted average (a = .78) of three
Likert-format items which ask each employee to evaluate how much chal-
lenge, interest, and meaning is associated with his or her job.
Because personal characteristics might affect selection into labor markets,
the following key demographics were included in the models as controls:
race, sex, marital status, and number of children. In order to maintain focus
on the aspects of the career/commitment relationship discussed thus far,
however, the coefficients for these variables are not presented.
2Due to space constraints, items are not presented; they are available to the interested reader
upon request.
^Seventeen percent of the sample was classified as holding an ILM job.
''Although there is evidence to suggest that equity of opportunity and amount of opportunity
should be treated as separate constructs (Harlan, 1989), the promotion items could not be un-
Career Structures and Employee Commitment 61
TABLE 1
Standardized Coefficients Obtained from Regressions of Organizational
Commitment (OC) and Work Commitment (WC) on Career and Control Variables
(1) (2) (3) (4)
Predictors « GG WG GG WG GG WG GG WG
Age 234* 205* 256* .252* .208* .235* 156* .170*
Education -.135* - 245* -.129* - .245* -.129* - 245* - 1 1 2 * - .231*
Internal
labor market
membership .103* .186* .108* .200* .041 151* .009 098*
Gompany
tenure -.032 - .087 -.001 - 065 -.034 - 086
Promotion
opportunity .322* .236* .195* 109*
Autonomy 036 054
Intrinsic
rewards 283* .280*
Earnings 068 - 006
ñ2 (adjusted) .10 .17 .10 .17 .18 23 .27 29
^The foilowing background variables were controlled as well: race, gender, marital status,
and number of ctiildren.
*p < 05.
covering the nature of and reasons for the impact of labor market member-
ship on the two facets of employee commitment. In Table 2, the results of
separate regressions of organizational and work commitment on key career
variables for employees of non-ILMs and ILMs are displayed. These analy-
ses permit investigation of the premise that labor market membership condi-
tions the commitment levels of employees at different career stages.
The hypothesis that the labor market structures within which jobs are or-
ganized affect levels of work and organizational commitment is confirmed
by Table 1. Membership in one of the company's internal labor markets has
the predicted positive impact on both types of commitment.
Regression (2) of Table 1 indicates that the job security represented by
company tenure does not explain the relationship between ILM membership
and the commitment variables. Table 2 shows that there is a slight negative
effect of company tenure on work commitment among those whose jobs are
positioned within non-ILMs, while there is a positive association for those
in ILMs. Although the differences across the two samples do not quite reach
statistical significance, these findings provide tentative support for the view
that tenure with the company means different things for people positioned
ambiguously classified as tapping one or the other. Moreover, various factor analyses yielded a
factor on which all of the promotion items loaded. This suggests that these items tap a similar
construct which may reflect some combination of equity and opportunity.
62 Social Science Quarterly
TABLE 2
Unstandardized (Standardized) Coefficients Obtained from Regression of
Organizational Commitment (OC) and Work Commitment (WO) on Selected
Variables: Internal Labor Market and Noninternal Labor Market Employees
Employees in Employees in
Noninternal Labor Markets Internal Labor Markets
Predictors'" OC we OC we
Age 0.010* 0.017*" 0.017* 0.005
(.150) (.217) (.274) (.077)
Education -0.088* -0.221* 0.058 0.092
(-.123) (-.258) (.100) (.142)
Connpany tenure -0.003 -0.012* 0.009 0.022+
(-.042) (-.132) (.134) (.286)
Promotion opportunity 0.139* 0.128* 0.224* 0.025
(.184) .142 (.316) (.032)
Autonomy 0.031 -0.002 -0.101 0.138
(.056) (-.003) (-.156) (.191)
Intrinsic rewards 0.159* 0.240* 0.242* 0.195+
(231) (.293) (.360) (.261)
Earnings 0.000 0.000 0.000 -0.000
(.061) (.033) (.126) (-.116)
R2 (adjusted) .24 .34 .28 .16
^The following background variables were controlled as well; race, gender, marital status,
and number of children.
'^Boldfaced coefficients are significantly different between samples at tfie .05 level.
*p < .05.
+ p < .10.
The overall picture that emerged from this study is that career structures
influence employee commitment. Of course the patterns discussed must be
viewed as suggestive only, since they were uncovered in a single plant with a
specific composition and situation. For instance, most of the non-ILM em-
ployees are blue-collar workers and none of those in non-ILMs have college
degrees. The plant is fairly small, and employees are heavily concentrated in
non-ILMs, such that the labor market differences revealed must be inter-
preted cautiously. In addition, the organization to which Plant 45 belongs
was in a period of considerable contraction. Rosenbaum's (1979) research
suggests that in a period of expansion the young people in non-ILMs would
have greater chances of advancement.
These caveats notwithstanding, it is noteworthy that even within a single
firm employees positioned in different labor markets vary in their degree of
commitment to both the organization and the work role. Moreover, the con-
text in which careers are played out appears to condition the impact of key
career variables, such as age, on employee commitment. Thus the younger,
more educated employees of Plant 45's non-ILMs express the most frustra-
^ Polynomial age regressions were performed in order to uncover possible curvilinear rela-
tionships between age and both work and organizational commitment. The results, which are
not reported here, indicated further that age is iirtearly related to work commitment among
Plant 45's blue-collar workers. Perhaps there is a tendency to disengage from work at mid-life
only among those who have been highly committed up to that point (Kalleberg and Loscocco,
1983), something which could not be examined in this study because of data limitations.
66 Social Science Quarterly
tion with their perception that both their present and future promotion op-
portunities are seriously limited. Of further interest is the fact that although
the positive consequences of ILM membership for work commitment go be-
yond immediate promotion opportunities, this is not true for organizational
commitment. These findings imply that company loyalty is maintained only
in the face of orderly progression up the established career hierarchy. In con-
trast, it appears that any possibility for future advancement enhances com-
mitment to work itself.
While this study has emphasized the structural context of careers, it is im-
portant to note that individuals do not necessarily accept that context pas-
sively. In fact the interviews suggest that the virtual promotion freeze at
MED has led some employees to fashion new sets of job shifts within the
company or to plot advancement to another firm. Of course such reactions
are probably more likely among those who have received past promotions;
they have not only been validated, but have also had their expectations for
future promotions raised (Kanter, 1977; Rosenbaum, 1984). Still, it is im-
portant to consider that those who come to a company with strong commit-
ment to work are somewhat more likely to orchestrate career advancement
regardless of the structural context in which they find themselves, thereby
maintaining relatively high levels of work commitment.
This theme, echoed in a few of the interviews, is exemplified best by the
career history of a young clerk who is positioned within a non-lLM. The
major disappointment in this clerk's career came when she was denied ad-
vancement into a higher level (ILM) position for which she had shouldered
responsibility (in addition to her own job) when a vacancy occurred sud-
denly. While this employee clearly feels no loyalty to the company, she re-
mains strongly committed to work; in her own words, "Everybody isn't as
zealous about work as I am." Her "ten-year plan," which involves strategic
shifts within MED and eventually places her in the top management ranks in
another industry, may explain this clerk's continued work commitment.
Clearly longitudinal research which maximizes validity and reliability is
needed to document the extent to which commitment to work and company
changes as a direct function of career position. In order to sort out the inter-
relationships among the different career variables, analysts must eventually
undertake explicitly comparative studies as well.
Meanwhile, the suggestive evidence presented here raises some provoca-
tive issues. While some employees respond creatively to the limited mobility
resulting from organizational contraction, it seems to cost the company
their loyalty. The virtual exclusion of non-college-educated workers from hi-
erarchical promotion systems may further undermine the control function
of such systems. Class relations within the firm are likely to become more
antagonistic, and the disfranchised may experience widespread discontent.
This study has presented a snapshot of a system in transition. As today's
workers get older, the age patterns observed here are expected to change. If
Career Structures and Employee Commitment 67
the trends discussed continue, we may find lower levels of commitment
among non-college-educated workers of all ages. As the findings suggest, ca-
reer structures have a decided impact on commitment to both work and
company. SSQ
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