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How Organisational Image Affects Employee Attitudes: Olivier Herrbach
How Organisational Image Affects Employee Attitudes: Olivier Herrbach
Organisational image has mostly been studied using an external perspective focused
on strategy and marketing issues. Given its salience in employees’ symbolic
environment, however, image may also have internal as well as external
consequences. Yet, the potential impact of image on internal HR aspects has received
only pminimal interest from researchers. This article presents the results of a study
that explored the impact of perceived external prestige (PEP) on three individual
outcomes: job satisfaction, affective organisational commitment and affective well-
being at work. It is based on a survey of 527 French managers. The findings show that
all individual outcomes are related to PEP. Moreover, it was found that the impact of
corporate image on some of the outcomes was stronger for individuals working in
sales/marketing than for other employees.
Contact: Olivier Herrbach, LIRHE, Université des Sciences Sociales, 31042
Toulouse Cedex, France. Email: herrbach@univ-tlse1.fr
atch and Schultz (1997) argue that in the current business environment the
Job satisfaction
Following the most recent approach of the satisfaction construct, job satisfaction is
conceptualised here as ‘a positive (or negative) evaluative judgment one makes with
regard to one’s job or job situation’ (Weiss, 2002) – and therefore as an evaluation and
not as affect. Extrinsic satisfaction is derived from the evaluation of the rewards
bestowed on the individual by peers, superiors or the organisation, which can take the
form of recognition, status, compensation, advancement and so forth. Intrinsic
satisfaction is derived from evaluating the perceived rewards of actually performing
spanning jobs make them particularly aware of, and dependent on, their company’s
image. For marketing managers, the impact of image has been shown to influence not
only marketing outcomes but also the marketing process itself (eg Weiss et al, 1999). As
for sales professionals, they have evolved from short-term ‘transaction-oriented
sellers’ to long-term ‘relationship managers’ (Sharma, 2001). As such, their company’s
image becomes all the more relevant. Secondly, the personal characteristics of
managers working in sales/marketing may be different from those of other managers.
For instance, Soyer et al (1999) showed that individuals working in sales, as well as
those previously employed in sales, were on average more narcissistic and had
stronger needs for achievement than individuals who never held a sales job. We feel
that this could make them more sensitive to their company’s image. The following
hypothesis was therefore tested:
Hypothesis 4: The influence of PEP is stronger for sales/marketing than for non-sales/
marketing individuals.
METHOD
Measures
Existing, established scales were used in measuring the research constructs. Because
the study was conducted in French, measures developed in English were taken from
previous published studies that translated them into French using a standard
translation/back translation procedure: we relied on the work of LIRHE researchers
(Neveu, 1996; Roussel, 1996) and on the Geneva Emotion Research Group for the
emotional variables (Scherer, 1988). The measure of PEP used in this study was based
on Mael and Ashforth’s (1992) organisational prestige scale that has six items with
five-point disagree/agree scales (sample item: ‘People in my community think highly
of my company’). This instrument generated a unitary factor structure and had a good
degree of internal reliability (alpha = .86).
Job satisfaction was measured by the Minnesota Satisfaction Questionnaire (MSQ,
Weiss et al, 1977). We used the short form of this instrument, which is recognised for
its validity and widely used in international research. Moreover, in terms of
coherence with our evaluative approach of satisfaction, the MSQ has been shown to
be the most ‘cognitive’ (ie affect-free) measure of job satisfaction (Brief and
Roberson, 1989). The instrument evaluates satisfaction with 20 job aspects using
five-point scales. Weiss et al (1977) suggest that the MSQ may be viewed as two
RESULTS
The descriptive statistics and correlations among the study variables are presented in
Table 1. Preliminary findings confirm the expected correlations between PEP and
extrinsic job satisfaction (r = .38), affective organisational commitment (r = .22) and
affective well-being (r = .30). Although it was not expected, intrinsic job satisfaction
was also significantly correlated with PEP (r = .21). The size of the correlation
coefficients suggested no problem of multicollinearity. Among the control variables,
only company size was correlated with PEP.
Table 2 next presents the hierarchical regression analyses predicting the outcome
variables using PEP. The initial equation regressed the outcome variables on the
control variables. Affectivity variables were found to be significant in predicting all
dependent variables, thus providing support to the influence of dispositional
6. Positive affectivity 1-5 3.63 .68 -.11** -.12** .23** -.10* -.01 (.62)
7. Negative affectivity 1-5 2.73 .88 -.00 -.04 .16* .02 -.05 -.09* (.62)
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8. Extrinsic satisfaction 1-5 3.29 .64 .19** -.15** -.02 -.04 .09* .13** -.18** (.72)
9. Intrinsic satisfaction 1-5 3.76 .59 .08 .05 .02 .03 -.06 .14** -.19** .40** (.83)
10. Affective commitment 1-5 2.93 .88 -.05 .12** -.07 .28** -.08 .13** -.01 .29** .29** (.80)
11. Affective well-being 1-5 3.45 .55 .05 .12** -.07 .10* .01 .26** -.44** .47** .52** .39** (.92)
* p < .05
** p < .01
a 1 = sales/marketing, 2 = other
b 1 = male, 2 = female
c 1 = small, 2 = medium, 3= large
81
Olivier Herrbach and Karim Mignonac
76-88 herrbach/mignonac 4/10/04 11:20 pm Page 82
* p < .05
** p < .01
*** p < .001
Coefficients are standardised betas
characteristics on individual outcomes (eg Judge and Hulin, 1993). In the second step,
PEP was added, and in the third step the interaction term (PEP x occupation). The
results show evidence of a main effect of PEP on extrinsic satisfaction (beta = .33),
affective commitment (beta = .23) and affective well-being (beta = .25). Hypotheses 1,
2 and 3 were therefore validated. PEP also had a main effect on intrinsic satisfaction
(beta = .20).
The fourth hypothesis required an examination of the PEP x occupation interaction.
As shown in the regression results, the interaction term had a significant contribution
to extrinsic satisfaction (beta = -.50) and affective well-being at work (beta = -.50). This
shows that sales/marketing respondents were different with respect to two of the
three outcomes, therefore supporting hypothesis 4. In order better to grasp the impact
of this interaction, both dependent variables were regressed on PEP for the two
occupational groups. Table 3 provides the results of the analyses.
The standardised regression coefficients appeared to be larger for the
sales/marketing sample, both for extrinsic satisfaction (beta = .43 vs beta = .26) and for
affective well-being (beta = .31 vs beta = .18). This confirms the results of the
moderated regression analysis in that an increment in PEP seems to be followed by a
larger increase in extrinsic satisfaction and affective well-being for sales/marketing
people compared with other respondents.
* p < .05
** p < .01
*** p < .001
Coefficients are standardised betas
These results provide evidence of the relationship between organisational image and
employee outcomes. PEP was found to be related to job satisfaction, affective
organisational commitment and affective well-being at work. Our work therefore
confirms the two previous articles that have studied this topic, while extending the
findings to both a larger and more diverse population. Indeed, whereas Riordan et al
(1997) based their study on 174 employees from one small US electric utility company,
and Carmeli and Freund (2002) on a sample of 195 lawyers in Israel, this study used a
larger sample of 527 management-level employees working in different private-sector
organisations. We also tested a differentiated impact of PEP for sales/marketing
people versus other managers and found that it was partially supported. This
supports the contention that, although relevant for all management-level employees,
image issues seem to be stronger for this category.
The impact of PEP on individual outcomes can be interpreted in two ways. First, to
the extent that individuals identify with a group out of a need for self-categorisation
and a need for self-enhancement (Smidts et al, 2001), members can feel pride in
belonging to a community that enjoys social prestige; they can, at least in part,
base their identity on organisational membership. This brings about individuals’
commitment to the organisation, since they want to pursue their association with it in
order to maintain the benefits for their own identities. It also leads to a higher
frequency of pleasant affective states at work.
From a more evaluative point of view, the appraisal employees make of the
extrinsic value of their job takes into account the image of the corporation. A strong
PEP is therefore likely to lead to extrinsic job satisfaction. In addition, this study has
shown the significance of the relationship between PEP and intrinsic job satisfaction. A
strong PEP therefore not only leads to more extrinsic satisfaction, but also promotes a
more positive perception of one’s own job. In other words, it could be that when
outsiders perceive a company positively, this has a positive influence on how its
employees perceive working within the company. In that sense, PEP could act as a
cognitive bias in the evaluative process on which satisfaction is based. Another
explanation could be that a strong PEP brings about pleasant affect, which in turn
generates a perceptual bias with a constructive influence on how individuals evaluate
their work: an employee high in pleasant affect may selectively perceive the most
favourable aspects of a job, thereby increasing his or her job satisfaction (Weiss, 2002).
Next, our study found evidence of a differentiated impact of PEP according to the
occupation of the respondents. There are at least two possible explanations for this.
First, as the most ‘status-conscious’ sub-sample, sales and marketing people could be
more sensitive to the effect of their company’s image. In that case, the stronger impact
of PEP for this category is further evidence of how people can use their company’s
prestige to generate job satisfaction. The second explanation could be that a more
prestigious company makes sales and marketing people’s jobs easier in dealing with
external stakeholders, thereby having a ‘direct’ impact on their experiences through
the beneficial impact of their company’s image on their actual work, work conditions
and perceived rewards. In particular, it is easier to sell their products if the firm has a
positive image. Therefore, the added impact and explanatory power of PEP on job
satisfaction and pleasant affective states for the sales/marketing sub-sample versus
the other sub-sample could be due to what is added above and beyond the ‘indirect’
identity effect of a positive image. The boundary-spanning dimension inherent in
sales/marketing roles may also have made PEP more salient and thus more influential
than for other occupational groups.
This interpretation is coherent with the findings for organisational commitment. It
has to be recalled, indeed, that a differentiated impact of PEP was not found for
organisational commitment. This result is interesting in that it could be evidence of the
‘deep’ nature of organisational commitment compared with the more ‘situated’ nature
of job satisfaction (Rousseau, 1998). As stated by this author, ‘deep’ processes alter
individuals’ mental models of self in enduring ways through continuous identification
in an organisation, which brings about commitment. This process is probably more
independent from occupational status than a ‘situated’ process such as job satisfaction
which arises from immediate environmental stimuli.
While we found evidence for the relevance of organisational image for HR
purposes, some caution in interpreting the results is warranted since there are
limitations to the present study’s findings. First, we cannot completely rule out the
presence of bias due to common method – ie having used a self-evaluation instrument
that might have influenced the strength of the relationships between our constructs.
Indeed, when measures are single source, and data is collected at the same time, there
may be a risk of over-estimating the correlations between constructs (Podsakoff et al,
2003). However, the focus of our study was on individuals’ perceptions (ie how they
respond to the reality they see, or socially construct), so that the influence of using a
percept-percept research methodology is not necessarily problematic (Crampton and
Wagner, 1994). As argued by Spector (1994), this design is useful in providing a picture
of how people feel about and view their jobs.
REFERENCES
Weiss, D.J., Dawis, R.V., England, G.W. and Lofquist, L.H. (1977). Manual for the
Minnesota Satisfaction Questionnaire, Minneapolis: Industrial Relations Center,
University of Minnesota.
Whetten, D.A. and Mackey, A. (2002). ‘A social actor conception of organizational
identity and its implications for the study of organizational reputation’. Business
and Society, 41: 4, 393-414.