Incorporating Knowledge and Learning for a Better Performance

Overqualification and it’s outcomes: the moderating role of organizational

learning

by ZHENG, Boyang

www.sinauonline.com

Incorporating Knowledge and Learning for a Better Performance

Outline

1 Literature review

2 Hypothesis and Method

3 Result

4 Discussion

5 Conclusion

Incorporating Knowledge and Learning for a Better Performance

Incorporating Knowledge and Learning for a Better Performance

• Overqualification (or underemployment) is the state of being skilled or educated beyond what is necessary for a job

• A special issue of Demands-Abilities Fit• A common phenomenon in industrialized countries• Operational definition

– Through Job analysis and assessment （ Green & McIntosh, 2007 ）

– Overeducation （ Hung, 2008)– Perceived Overqualification （ Johnson & Johnson, 1996,

2002 ）

Overqualification

Incorporating Knowledge and Learning for a Better Performance

• General concerns of the company– More cost on staff salaries– a stepping stone for overqualified candidates (turnover)– Can not maximize the potential of employees– ……

• Literatures showed– Negative effect on Job Satisfaction （ Johnson & Johnson, 2

000, 2002; Erdogan & Bauer, 2009; Fine & Nevo, 2008 ）– Positively related to turnover intention （ Erdogan &

Bauer, 2009 ）– Low affective commitment （ Johnson & Johnson, 2002 ）

Outcomes of overqualification

Incorporating Knowledge and Learning for a Better Performance

• With different measures of performance, a variety results were found:– Negative related （ Bolino & Feldman, 2000 ）– No significant relationship （ Fine & Nevo, 2008 ）– Positive related (Fine & Nevo, 2008; Erdogan & Bauer,

2009)• Task performance (Objective performance) is positive

related to OQ

Outcomes of overqualification

Incorporating Knowledge and Learning for a Better Performance

THE QUESTION IS:

How to avoid negative consequence of OQ while maintain or strengthen performance-facilitate effect?

* Note: a managerial practice

Incorporating Knowledge and Learning for a Better Performance

• A way of organizational development• Sense changes in signals from its

environment and adapt accordingly• Building learning organization:

competency upgrading

Experimentation

Information Collection Analysis Education &

TrainingInformation

Transfer

Components and Process of OL （ Garvin et al, 2008 ）

Organizational Learning

Incorporating Knowledge and Learning for a Better Performance

• OL can promote Organizational Performance– Reduce resistance in organizational change （ Alas

et al, 2009 ）– Employee’s mastery to performance （ Garcia-

Morales et al, 2007 ）– Positively related to Job Satisfaction, Organizational

Commitment, Task performance （ Rose et al, 2009 ）

Why use OL as moderator?

Incorporating Knowledge and Learning for a Better Performance

Organizational Learning

Job Satisfaction

Affective Commitment

Performance

(-)

(-)

(+)

Perceived Overqualification

(-)H1

(-)H2

(+)H3

Hypothesis

Incorporating Knowledge and Learning for a Better Performance

• 3 firms (N=199)– 1 ） a subsidy of a communication corepation (N=26)– 2 ） a foreign trade company (N=100)– 3 ） a branch of ICBC (N=73)

• Description– Valid: 176; – Male: 29.5%; age from 21 to 50 (ave. 29.7±5.8); – mainly junior college students and undergraduates;– Work experience: 0 to 30 (ave. 7.1±6.1)

Sampling

Incorporating Knowledge and Learning for a Better Performance

• Perceived Overqualification : 10 items, 2 factors (Johnson & Johnson, 1996)

• Concrete Learning Process and Practice: 29 items, 5 factors (Garvin et al., 2008 ）

• Job satisfaction: 3 items (Cammann et al., 1979)• Affective Commitment: 8 items (Allen & Meyer, 1990)• Performance (Self-rated): 15 items, 5 factors (Suliman,2001)

• Note 1: Cronbach α varies from 0.733 to 0.926Note 2: Construct Validity was verified (construct maintained)

Measure

Incorporating Knowledge and Learning for a Better Performance

• Age, gender, work experience• Dummy variables:

– Education （ 4 levels, 3 variables ）– Position （ 2 levels, 1 variables ）– Sample Source （ 3 levels, 2 variables ）

Controlled Variables

Incorporating Knowledge and Learning for a Better Performance

Result: Correlation

Incorporating Knowledge and Learning for a Better Performance

• Follow a 3-step procedure– 1 add controlled variables– 2 add Organizational Learning and Overqualification– 3 add OL*OQ (the interact variable)

• If interaction occurs, the moderate effect occurs

Result: Regression

Incorporating Knowledge and Learning for a Better Performance

• Interaction is significant, need further step to prove H1

Result: Regression – Job Satisfaction

Incorporating Knowledge and Learning for a Better Performance

• Interaction is not significant, H2 is not supported

Result: Regression – Affective Commitment

Incorporating Knowledge and Learning for a Better Performance

• Interaction is significant, need further step to prove H3

Result: Regression – Performance

Incorporating Knowledge and Learning for a Better Performance

• Further analysis of interaction: Here use a regression coefficients comparison procedure instead of simple slope analysis

• Procedure:– 1. Dichotomize cases into 2 groups according to the average

of OL score– 2. Conduct regression analysis for each group– 3. Compare coefficients

Result: Comparative Regression

Incorporating Knowledge and Learning for a Better Performance

• Job Satisfaction: OL reduce the negative effect of OQ on JS, H1 is supported

• Performance: OL also reduce the positive effect of OQ on performance, the opposite of H3, H3 is not supported.

Result: Comparative Regression

Incorporating Knowledge and Learning for a Better Performance

Result

Organizational Learning

Job Satisfaction

Affective Commitment

Performance

(-)

(-)

(NS)

Perceived Overqualification

(-)

(NS)

(-)

Incorporating Knowledge and Learning for a Better Performance

• Why only H1 supported?– OL practices give employees opportunities to learn

more to alleviate the perception of OQ– OL practices directly effect on employees’ skills, which

is not directly related with psychological attachments– OL practices mean changes, changes need adaption– D-A fit: a dynamic process

• Consequences of Overqualification

Discussion

Incorporating Knowledge and Learning for a Better Performance

• How to apply? - A managerial practice need to be weighed– a more satisfied employee may less considers

turnover, thus save costs of recruitment and training– The extra performance of overqualified employee

disappeared. May not be good to overall performance.

Discussion

Incorporating Knowledge and Learning for a Better Performance

• Limitations– Did not distinguish fit and under-qualification individuals– Sampling: multi-source, not focus on industry– Measurement of performance– Common Method Bias

• Further Research– Other managerial practices to tackle negative

consequences of OQ– Formation of OQ (esp. psychological mechanism)

Limitations and Further Research

Incorporating Knowledge and Learning for a Better Performance

• Organizational Learning will weaken the negative effect of overqualification on Job satisfaction, while it shows no effect on weakening the negative effect on affective commitment and weaken the positive effect on performance.

• Organizational Learning can solve part of the problems caused by Overqualification, but it need to be weighed when applied.

Conclusion

Incorporating Knowledge and Learning for a Better Performance

Thank you!