The Effect of Perceived Overqualification on Job Attitudes (A Study on Iran's Banking Industry)

پژوهش نامه مدیریت تحول

Article 9, Volume 12, Autumn & Winter2021 - Serial Number 24, February 2021, Pages 207-228   

Document Type: Articles

DOI: 10.22067/pmt.v12i2.84946

Authors

Mohsen Rafiei¹; Alireza Hadadian^{* 2}; Marjan Fayyazi³

¹M.Sc. in International Human Resource Management, Tehran University

²Assistant Professor in Management, Faculty of Economics and Administrative Sciences, Ferdowsi University of Mashhad

³Assistant Professor in Management, Faculty of Management, Tehran University

Abstract

1- INTRODUCTION
Human resource management is always the main concern for organizations. Since the banking sector has a pivotal role in the economic development of countries, the better management of the workforce in this sector has attracted great attention for decades. The phenomenon of overqualification might stem from a mismatch between person and job and is a situation in which employees have qualifications beyond their job demands. Today, the existence of overqualified employees is a concern for managers and organizations. Perceived overqualification could directly or indirectly lead to various attitudinal and behavioral consequences and impact organizational performance. Despite huge empirical studies regarding overqualification, to the best of the researcher’s knowledge, any empirical study has been conducted in Iran’s academia. Hence, the present research can be regarded as the first empirical study in the country. The banking sector has always been appealing to job seekers for its fringe benefits. This study was to examine the effect of perceived overqualification on various job attitudes including job satisfaction, organizational commitment, and turnover intention.
2- THEORETICAL FRAMEWORK
One of the main concerns of HR managers is to employ people who have the required capabilities to perform their job successfully. Overqualification is defined as possessing qualifications beyond job demands. Perceived overqualification might influence employees’ attitudes such as job satisfaction, organizational commitment, and turnover intention. According to the literature on organizational behavior, job satisfaction is considered a multidimensional variable affected by a set of intrinsic and extrinsic factors. Job satisfaction can be seen as the quality of people’s feelings about their jobs. Organizational commitment implies a sense of obligation to stay in the organization. Based on the three-dimensional model proposed by Allen and Meyer (1990), affective, continuance, and normative commitment are three dimensions of this attitude. Turnover intention indicates employees’ tendency to quit the organization. In such a situation, people probably change their jobs or leave the organization. In other words, the turnover intention might pave the way for actual organization abandonment.
3- METHODOLOGY
The present research is an applied study in terms of purpose, and in terms of data collection method, it is a cross-sectional study. The researchers used standard questionnaires to collect primary data. Structural equation modeling was used to test the research hypotheses.
 
4- RESULTS & DISCUSSION
Research results confirmed the significance of negative effects of perceived overqualification on job satisfaction and affective organizational commitment as well as the positive effect of perceived overqualification on turnover intention. Hence, overqualification might lead to negative job attitudes. In line with previous research (e.g., Wasserman et al., 2018; Alfes et al., 2016), the current study found that there is a negative association between overqualification and job satisfaction. In line with previous research (e.g., Loben et al. 2015), results indicated that people who perceive they are overqualified might lack a sense of belongingness and are less affectively attached to their organization. In line with studies of Erdogan and Bauer (2009) and Maynard and Parfyonova (2013), the poor level of job satisfaction and affective commitment in overqualified employees leads to more intention to quit the organization.
5- CONCLUSIONS & SUGGESTIONS
The current study was implemented with the aim of exploring the job attitudes in overqualified employees. To reach this goal, data were collected from ten private and public banks by distributing standard questionnaires. The results of structural equation modeling for data analysis showed that perceived overqualification might affect job attitudes including job satisfaction, organizational commitment, and turnover intention. With due attention to the negative job attitudes born out of perceived overqualification, managers and HR practitioners are highly recommended to make sure that job applicants are fitted with their jobs. Moreover, future studies are suggested to consider the role of moderators including organizational support.

Keywords

Overqualificatio; Job satisfaction; organizational commitment; turnover intention

References

Abdalla, A.; Elsetouhi, A.; Negm, A., & Abdou, H. (2018). Perceived person-organization fit and turnover intention in medical centers. Personnel Review, 47(4), 863–881.

Alfes, K.; Shantz, A., & Baalen, S. (2016). Reducing perceptions of overqualification and its impact on job satisfaction: the dual roles of interpersonal relationships at work. Human Resource Management Journal, 26(1), 84–101.

Byrne, B. M. (2016). Structural equation modeling with amos: basic Concepts, applications, and programming (Third). New York and London: Taylor & Francis.

Chadha, S., & Parimoo, D. (2017). Human capital Management in Banking Sector- A conceptual Framework. International Journal of Management, 8(6), 44–55.

Colarelli, S. M. (1984). Methods of communication and mediating processes in realistic job previews. Journal of applied psychology, 69(4), 633.

Deng, H.; Guan, Y.; Wu, C.-H.; Erdogan, B.; Bauer, T., & Yao, X. (2016). A Relational model of perceived overqualification : the moderating role of interpersonal influence on social acceptance. Journal of Management, 44(8), 3288-3310.

Erdogan, B., & Bauer, T. N. (2009). Perceived overqualification and its outcomes : the moderating role of perceived overqualification and its outcomes : the moderating role of empowerment. Journal of Applied Psychology, 94(2), 557–565.

Fayyazi, M., & Rafiei, M. (2018). A Review on the literature of overqualification: the attitudinal and behavioral consequences. National Congress on Management, Economics, and Accounting. Tehran

Fernandez-lores, S.; Gavilan, D.; Avello, M., & Blasco, F. (2015). Affective commitment to the employer brand : Development and validation of a scale. BRQ Business Research Quarterly, 19(1), 40-54.

Fine, S., & Edward, M. (2017). Breaking the rules, not the law : the potential risks of counterproductive work behaviors among overqualified employees. International Journal of Selection and Assessment, 25(4), 401-405.

Frempong, N.; Agbenyo, W., & Darko, P. A. (2018). The Impact of job satisfaction on employees ’ loyalty and commitment : a comparative study among some selected sectors in ghana. European Journal of Business and Management, 10(12).

Gholipour, A. (2015). Organizational behavior management (individual behavior). Tehran: Samt.(In Persian).

Judge, T. A.; Bono, J. E., & Locke, E. A. (2000). Personality and job satisfaction: the mediating role of job characteristics. Journal of applied psychology, 85(2), 237.

Heidemeier, H., & Moser, K. (2019). A self‐regulation account of the job performance–job satisfaction relationship. European Journal of Social Psychology, 49(6), 1313-1328.

Hom, P. (2017). Contemporary research and on employee turnover. in reference module in neuroscience and biobehavioral psychology.

Jiang, Z., & Jiang, X. (2015). Core self-evaluation and life satisfaction : the person-environment fit perspective. Personality and Individual Differences, 75, 68–73.

Joseph, F.; Hair, J.; Hult, G. T. M.; Ringle, C. M., & Sarstedt, M. (2017). A primer on partial least squares structural equation modeling (PLS-SEM) (Second). SAGE Publications.

Jr., J. F. H. et al. (2014). Multivariate data analysis. seven. pearson education limited

Kaur, B.; Mohindru, & Pankaj. (2013). Antecedents of turnover intentions : a literature review. Global Journal of Management and Business Studies, 3(10), 1219–1230.

Keshavarz, Y. (2015). Structural Equation Modeling. Mehrban Nashr.(In Persian)

Khakwani, M. F. (2016). Impact of over qualification on turnover intention. Pollster Journal of Research, 3(1), 19–31.

Lai, F. Y.; Lu, S. C.; Lin, C. C., & Lee, Y. C. (2019). The Doctrine of the mean: workplace relationships and turnover intention. Canadian Journal of Administrative Sciences/Revue Canadienne des Sciences de l'Administration,  36(1), 84-96.

Lin, C.-P.; Tsai, Y.-H., & Mahatma, F. (2017). Understanding turnover intention in cross-country business management. Personnel Review, 46(8), 1717–1737.

Liu, S.,; Luksyte, A.; Zhou, L.; Shi, J., & Wang, M. (2014). Overqualification and counterproductive work behaviors: examining a moderated mediation model. Journal of Organizational Behavior, 36(2), 250–271.

Liu, S., & Wang, M. (2012). Perceived overqualification: a review and recommendations for research and practice. Research in Occupational Stress and Well-being, 10(1), 1-42.

Martinez, P. L.; Lengnick-Hall, M., & Kulkarni, M. (2014). Overqualified? a conceptual model of managers’ perceptions of overqualification in selection decisions. Personnel Review, 43(6), 957–974.

Maynard, D. C.; Brondolo, E. M.; Connelly, C. E., & Sauer, C. E. (2015). I'm too good for this job: Narcissism's role in the experience of overqualification. Applied Psychology, 64(1), 208-232

Maynard, D. C., & Parfyonova, N. M. (2013). Perceived overqualification and withdrawal behaviours: examining the roles of job attitudes and work values. Journal of Occupational and Organizational Psychology, 86(3), 435–455.

 Maynard, D. C.; Joseph, T. A., & Maynard, A. M. (2006). Underemployment, job attitudes, and turnover intentions, Journal of Organizational Behavior, 27(4), 509-536.

Mercurio, Z. A. (2015). Affective commitment as a core essence of organizational commitment : an integrative literature review. human resource development review, 14(4), 389-414.

Meyer, J. P.; Allen, N. J., & Smith, C. A. (1993). Commitment to organizations and occupations: extension and test of a three-component conceptualization. Journal of applied psychology, 78(4), 538.

Neuman, W. L. (2014). Social research methods: qualitative and quantitative qpproaches. retrieved from www.pearsoned.co.uk

Nguyen, A. D. (2018). Perceived overqualification and withdrawal among seasonal workers : would work motivation make a difference ? portland state.

Olfat, M.; Tabarsa, G. A.; Ahmadi, S., & Shokouhyar, S. (2019). Disclosing the bright side of SNS in the workplace a comparison between ESNs and public SNs in benefiting the organizations. Journal of Enterprise Information Management, 32(3), 390–412.

Ouakouak, M. L., & Ouedraogo, N. (2018). Fostering knowledge sharing and knowledge utilization: the impact of organizational commitment and trust. Business Process Management Journal, 25(4), 757–777.

Paul, H.; Bamel, U. K., & Garg, P. (2016). Employee Resilience and OCB: mediating effects of organizational commitment. The Journal for Decision Makers, 41(4), 308–324.

Peng, Y., & Mao, C. (2014). The Impact of person – job fit on job satisfaction : the mediator role of self efficacy. Social Indicators Research, 121(3), 805–813.

Peterson, M. F.; Kara, A.; Abiola Fanimokun, & B. Smith, P. (2019). Country culture moderators of the relationship between gender and organizational commitment. Baltic Journal of Management, 14(3), 389–410.

Purohit, B. (2018). Salesperson performance : role of perceived overqualification and organization type. Marketing Intelligence & Planning, 36(1), 79–92.

Rainsford, E.; Maloney, W. A., & Popa, S. A. (2019). The Effect of unemployment and low-quality work conditions on work values:exploring the experiences of young europeans. American Academy of Political Science, 682(1), 172–185.

Seyed Naghavi, M., & Rafati, K. (2016). Advanced Organizational Behavior Management. Tehran: Mahkame.(In Persian)

Sarmad, Z.; Bazargan, A., & Hejazi, E. (1998). Research Methods in Behavorial Science. Tehran: Age.(In Persian).

Wargo-sugleris, M.; Robbins, W.; Lane, C. J., & Phillips, L. R. (2018). Job satisfaction, work environment and successful ageing : Determinants of delaying retirement among acute care nurses. Journal of Advanced Nursing, 74(4), 900–913.

Wassermann, M.; Fujishiro, K., & Hoppe, A. (2017). The effect of perceived overquali fi cation on job satisfaction and career satisfaction among immigrants : does host national identity. International Journal of Intercultural Relations, 61(10), 77–87.

Yang, W.; Guan, Y.; Lai, X.; She, Z., & Lockwood, A. J. (2015). Career adaptability and perceived overqualification: testing a dual-path model among chinese human resource management professionals. Journal of Vocational Behavior, 90(28), 154–162.

Yousef, D. A. (2016). Organizational commitment, job satisfaction and attitudes toward organizational change : a study in the local government. International Journal of Public Administration, 40(1), 77-88.

Zhang, M. J.; Law, K. S., & Lin, B. (2016). You think you are big fish in a small pond? perceived overqualification, goal orientations, and proactivity at work. Journal of Organizational Behavior, 37(1), 61–84.