organizational commitment

ORGANIZATIONAL COMMITMENT

PRESENTED BYSONDARVA YAGNESH MM Sc(AGRI) 1ST SEM REG NO 04 -2664 -2015

is the individuals psychological attachment to the organization

organizational commitment

bull An employeersquos loyalty to the organization willingness to exert effort on behalf of the organization associated with the acceptance of the organizationrsquos goal and values and desire to maintain membership

bull A workerrsquos feeling and attitudes about the entire work organizations

Organizational Commitment

predicts work variables such as turnover organizational citizenship behavior job performance Some of the factors such as role stress empowerment Job insecurity employability distribution of leadership have been shown to be connected to a workers sense of organizational commitmentOrganizational commitment can be contrasted with other work-related attitudes job satisfaction an employees feelings about their job organizational identification the degree to which an employee experiences a sense of oneness with their organization

importance of Organizational commitment

bull The strength of an individualrsquos identification with an organization

bull Three kinds of organizational commitment1 Affective2 Continuance3 Normative


Kinds of Organizational Commitment

Affective Commitment The type of organizational commitment that is based on an individualrsquos desire to remain in an organization

Continuance Commitment The type of organizational commitment that is based on the fact that an individual cannot afford to leave Normative Commitment

The type of commitment that is based on an individualrsquos perceived obligation to remain within an organization

Meyer and Allen use the tri-dimensional model to conceptualize organizational commitment in three dimensions namely

affective continuance normative commitments

These dimensions describe the different ways of organizational commitment development and the implications for employeesrsquo behavior

Figure presents the tri-dimensional organizational commitment model

model of commitment

ORGANISATIONAL CHARACTERISTICS 1048707 Size 1048707 Structure 1048707 Climate Etc PERSONAL CHARACTERISTICS 1048707 Demographics 1048707 Values 1048707 Expectations SOCIALISATION EXPERIENCES 1048707 Cultural 1048707 Familial 1048707 Organisational MANAGEMENT PRACTICES 1048707 Selection 1048707 Training 1048707 Compensation ENVIRONMENTAL CONDITIONS 1048707 Unemployment rate 1048707 Family responsibility 1048707 Union Status RETENTION 1048707 Withdrawal Cognition 1048707 Turnover Intention 1048707 Turnover PRODUCTIVE BEHAVIOUR 1048707 Attendance 1048707 Performance 1048707 Citizenship EMPLOYEE WELL-BEING 1048707 Psychological Health 1048707 Physical Health 1048707 Career Progress

WORK EXPERIENCES 1048707 Job scope 1048707 Relationships 1048707 Participation 1048707 Support 1048707 Justice

ROLE STATES 1048707 Ambiguity 1048707 Conflict 1048707 Overload

PSYCHOLOGICAL CONTRACT 1048707 Economic Exchange 1048707 Social Exchange

AFFECT-RELATED 1048707 Attribution 1048707 Rationalisation 1048707 Met expectations 1048707 Person ndashJob Fit 1048707 Need satisfaction

NORM RELATED 1048707 Expectations 1048707 Obligations

COST RELATED 1048707 Alternatives 1048707 Investments

AFFECTIVE COMMITMENT 1048707 Organisation 1048707 Union 1048707 Team

CONTINUANCE COMMITMENT 1048707 Organisation 1048707 Union 1048707 Team

NORMATIVE COMMITMENT 1048707 Organisation 1048707 Union 1048707 Team

RETENTION 1048707 Withdrawal Cognition 1048707 Turnover Intention 1048707 Turnover

PRODUCTIVE BEHAVIOUR 1048707 Attendance 1048707 Performance 1048707 Citizenship

EMPLOYEE WELL-BEING 1048707 Psychological Health 1048707 Physical Health 1048707 Career Progress

Affective Commitment

A desire on the part of an employee to remain a member of an organization because of an emotional attachment to or involvement in that organization

You stay because you want to

What would you feel if you left anyway

employees positive emotional attachment to the organization

Meyer and Allen Defined as the ldquodesirerdquo component of organizational commitment

An employee who is affectively committed strongly identifies with the goals of the organization and desires to remain a part of the organization

This employee commits to the organization because heshe wants to

This commitment can be influenced by many different demographic characteristics age tenure sex and education but these influences are neither strong nor consistent

The problem with these characteristics is that while they can be seen they cannot be clearly defined

Meyer and Allen gave this example that ldquopositive relationships between tenure and commitment maybe due to tenure-related differences in job status and qualityrdquo



Continuance Commitment

A desire on the part of an employee to remain a member of an organization because of an awareness of the costs associated with leaving

You stay because you need to



Continuance Commitment is the ldquoneedrdquo component or the gains verses losses of working in an organization

ldquoSide betsrdquo or investments are the gains and losses that may occur should an individual stay or leave an organization

An individual may commit to the organization because heshe perceives a high cost of losing organizational membership

[Things like economic costs (such as pension accruals) social costs (friendship ties with co-workers) would be costs of losing organizational membership

But an individual doesnrsquot see the positive costs as enough to stay with an organization they must also take into account the availability of alternatives (such as another organization) disrupt personal relationships other ldquoside betsrdquo that would be incurred from leaving their organization

The problem with this is that these ldquoside betsrdquo donrsquot occur at once but that they ldquoaccumulate with age and tenure

A desire on the part of an employee to remain a member of an organization because of a feeling of obligation

You stay because you ought to


Normative Commitment

The individual commits to and remains with an organization because of feelings of obligation the last component of organizational commitment

These feelings may derive from a strain on an individual before and after joining an organization

For example the organization may have invested resources in training an employee who then feels a moral obligation to put forth effort on the job and stay with the organization to repay the debt

It may also reflect an internalized norm developed before the person joins the organization through family or other socialization processes that one should be loyal to ones organization

The employee stays with the organization because heshe ought to But generally if an individual invest a great deal they will receive ldquoadvanced rewardsrdquo

Normative commitment is higher in organizations that value loyalty and systematically communicate the fact to employees with rewards incentives and other strategies

Normative commitment in employees is also high where employees regularly see visible examples of the employer being committed to employee well-being

An employee with greater organizational commitment has a greater chance of contributing to organizational success and will also experience higher levels of job satisfaction High levels of job satisfaction in turn reduces employee turnover and increases the organizationrsquos ability to recruit and retain talent

Exit-Voice-Loyalty-Neglect

A framework that includes potential responses to negative events

Exit Ending or restricting organizational

membership

Voice A constructive response where individuals

attempt to improve the situation



Loyalty A passive response where the employee remains

supportive while hoping for improvement

Neglect Interest and effort in the job is reduced


Withdrawal

Increasing Job Satisfaction amp Organization Commitment

Positive Employee

Attitudes amp Behaviors

Benefit programs

Flexible work

schedules

Changes in pay

structure

Job rotation ndash moving workers from one specialized job to another

Job enlargement ndash the practice of allowing worker to take on additional varied task in effort to make them feel that they are more valuable members of the organization

Job enrichment ndash raising the responsibility associated with a particular job by allowing workers a greater voice in the planning execution and evaluation of their own activities

Changes in job structure

Skill-based pay ndash paying employees an hourly rate based on their knowledge and skills

Merit pay ndash a plan in which the amount of compensation is directly a function of a employeersquos performances

Gainsharing ndash make pay contingent on effective group performance

Profit sharing ndash all employees receive a small share of the organizationrsquos profits

Changes in pay structure

Compressed work weeks ndash the number of workdays is decrease while the number of hours worked per day is increased

Flextime ndash a scheduling system whereby a worker is committed to a specified number of hours per week but has some flexibility concerning the starting and ending times of any particular workday

Flexible work schedules

Benefit program

Flexible working hoursVariety of health care option Different retirement plansCareer development programs Health promotion programsEmployee-sponsor childcare

Organizational Citizenship Behaviors consists of efforts by organizational members that advance or promote the work organization its image and its goals

Positive affect and employee well-being the role of positive emotions or positive affect in influencing employee attitudes such as job satisfaction and fostering positive employee behaviors

Positive Employee Attitudes amp Behaviors

the nutshell employeersquos commitment plays a vital role in organization

This means that with a committed employees it will help an organization to boost up its performances as well as the productivity which can leads to a success in this society

Hence commitment is a fundamental requirement and quality for employees in order to be a part of an organization and optimize the organization performance

Application

Employees are more committed when employers are committed to them

Perceived organization support Fostered when organizations Protect job security Provide rewards Improve work conditions Minimize politics

Stages of organizational commitment

Compliance stage

Identification stage

Internalization stage

employee accepting the influence of others mainly to benefit from them through remuneration or promotion

At this stage attitudes and behaviors are adopted not because of shared beliefs but simply to gain specific rewards

The nature of organizational commitment in the compliance stage is associated with the continuance dimension commitment where the employee is calculative with the need to stay in the organization when evaluating the rewards

This implies that at this stage employees stay in the organization because of what they receive

Compliance stage

identification occurs when employees accept the influence of others in order to maintain a satisfying self-defining relationship with the organization

Employees feel proud to be part of the organization they may regard the roles they have in the organization as part their self-identity

Organizational commitment at this stage is based on the normative dimension

The individual stays because he or she should and is guided by a sense of duty and loyalty towards the organization


Internalization takes place when the employee finds the values of the organization to be intrinsically rewarding and congruent with his or her personal values

Organizational commitment at this level is based on the affective dimension

The employee at this stage develops not only the sense of belonging but passion to belong to the organization hence the commitment is based on a ldquowant to stayrdquo basis

The values of the individual are therefore congruent with those of the group and the organization


There are different levels of organizational commitment which are related to the individualrsquos development of the individualrsquos organizational commitment

High level of organizational commitment Moderate level of organizational commitment Lower level of organizational commitment

Levels of organizational commitment

high level of organizational commitment is characterized by a strong acceptance of the organizations values and willingness to exert efforts to remain with the organization

ldquohigh organizational commitment means identifying with onersquos employing organizationrdquo

The ldquowill to stayrdquo suggests that the behavioral tendencies at this level relate closely with affective dimension of commitment where individuals stay because they want

High level of organizational commitment

Moderate level of organizational commitment

moderate level of organizational commitment is characterized by a reasonable acceptance of organizational goals and values as well as the willingness to exert effort to remain in the organization

This level can be viewed as a reasonable or average commitment which implies partial commitment

The willingness to stay is an attribution of a moral commitment associated with the normative dimension of commitment

The individuals stay in the organization because they should do so

Lower level of organizational commitment

The low level of organizational commitment is characterized by a lack of neither acceptance of organizational goals and values nor the willingness to exert effort to remain with the organization

The employee who operates on this level must be disillusioned about the organization such an employee may stay because he or she needs to stay as associated with the continuance dimension

Given an option they will leave the organization

FACTORS AFFECTING ORGANISATIONAL COMMITMENT

Job-related factor

Employment opportunities

Personal characteristics

working environment

Positive relationships

Organizational structure

Job-related factor

Organizational commitment is an important job-related outcome at the individual level which may have an impact on other job-related outcomes such as turnover absenteeism job effort job role and performance or visa versa

The job role that is ambiguous may lead to lack of commitment to the organization and promotional opportunities can also enhance or diminish organizational commitment

Other job factors that could have an impact on commitment are the level of responsibility and autonomy

the higher the level of responsibility and autonomy connected with a given job the lesser repetitive and more interesting it is and the higher the level of commitment expressed by the person who fill it


The existence of employment opportunities can affect organizational commitment

Individuals who have a strong perception that they stand a chance of finding another job may become less committed to the organization as they ponder on such desirable alternatives

Where there is lack of other employment opportunities there is a tendency of high level of organizational commitment

As a result membership in the organization is based on continuance commitment where employees are continuously calculating the risks of remaining and leaving


Organizational commitment can also be affected by the employees personal characteristics such as age years of service and gender

older employees those with tenure or seniority and those who are satisfied with their own levels of work performance tend to report higher levels of organizational commitment than others

This implies that older people are seen to be more committed to the organization than other age groups Another personal characteristic that may affect organizational commitment is associated with gender

However it is argued that gender differences in commitment are due to different work characteristics and experiences that are linked to gender

One of the common working environmental conditions that may affect organizational commitment positively is partial ownership of a company

Ownership of any kind gives employees a sense of importance and they feel part of the decision-making process

This concept of ownership which includes participation in decision-making on new developments and changes in the working practices creates a sense of belonging (

managers who participate in budget decision-making tend to have a high level of organizational commitment

Another factor within the work environment that may affect organizational commitment is work practices in relation to recruitment and selection performance appraisal promotions and management style

working environment


The organization as a workplace environment is built up of working relationships one of which is the supervisory relationship

the supervisory relationship can affect organizational commitment either positively or negativelyrdquo A positive supervisory relationship depends on how work-related practices such as performance management are being implemented in the organization

When individuals find the supervisory relationship to be fair in its practices they tend to be more committed to the organization

Other work relationships such as teams or groups which exist in the workplace can affect organizational commitment Organizational members can demonstrate commitment when they are able to find value through work relationships


Bureaucratic structures tend to have a negative effect on organizational commitment

the removal of bureaucratic barriers and the creation of more flexible structure are more likely to contribute to the enhancement of employee commitment both in terms of their loyalty and attachment to the organization

The management can increase the level of commitment by providing the employees with greater direction and influence

the answer to the question of employee commitment morale loyalty and attachment may consist not only in providing motivators but also to remove demotivators such as styles of management not suited to their context and to contemporary employee aspirations

A management style that encourages employee involvement can help to satisfy employees desire for empowerment and demand for a commitment to organizational goals

ldquomore flexible and participatory management styles can strongly and positively enhance organizational commitmentrdquo

Organisations need to ensure that their management strategies are aimed at improving employee commitment rather than compliance

Management style I

EFFECTS OF ORGANISATIONAL COMMITMENT

Organizational commitment can have either a

Negative effect on the organization Positive effect on the organization

negative effect implies that the level of organizational commitment is low Employees with a low level of organizational commitment tend to be unproductive and some become loafers at work

ldquolack of organizational commitment or loyalty is cited as an explanation of employee absenteeism turnover reduced effort expenditure theft job dissatisfaction and unwillingness to relocaterdquo

Organizational commitment is regarded to be the best predictor of employeesrsquo turnover than the far more frequently used job satisfaction predictor

employees who operate in a continuance commitment dimension are calculative of their stay one would deduce that such employees may continuously stay away from work when they feel like doing so

Negative effect on the organization

Committed organizational members contribute positively to the organization which is not the case with less committed members ldquoorganizations whose members have higher levels of commitment show higher performance and productivity and lower levels of absenteeism and tardinessrdquo This implies that employees with a high level of commitment tend to take greater efforts to perform and invest their resources in the organization

Organizational commitment can result in a stable and productive workforce

It enables employees to release their creativity and to contribute towards organizational development initiatives

Employees who are highly committed do not leave the organization because they are dissatisfied and tend to take challenging work activities Committed members are normally achievement and innovative orientated with the ultimate aim of engaging in and improving performance

Positive effect of organizational commitment

MANAGING ORGANISATIONAL COMMITMENT

Organizations are continuously faced with the demand and supply challenges of the changing market In order for the organization to adapt to the intense competition in the market place and the rapid changes in technology

it requires organizational members have to be internally committed The organization is then faced with a challenge of managing its employeesrsquo commitment throughout to ensure sustainability the structural and job design techniques can be used to foster organizational commitment in the following ways

Another important mechanism to manage organizational commitment is through substantial human resource policies and practices that are fair

Perceived Self Worth

Perceived Cost of Loss

Perceive Need to Reciprocate

Affective commitment

Continuos commitment

Normative commitment

HRM Policies and Practices

More recently scholars have proposed a five component model of commitment[though it has been developed in the context of product and service consumption

This model proposes habitual and forced commitment as two additional dimensions which are very germane in consumption settings

It seems however that habitual commitment or inertial may also become relevant in many job settings People get habituated to a jobmdashthe routine the processes the cognitive schemas associated with a job can make people develop a latent commitment to the job ndash just as it may occur in a consumption setting

A five component commitment model

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is the individuals psychological attachment to the organization

organizational commitment

















model of commitment





















































membership









Withdrawal


Positive Employee


Benefit programs

Flexible work

schedules

Changes in pay

structure













Benefit program








Application




Compliance stage







Compliance stage




























Job-related factor



working environment



Job-related factor




















working environment














Management style I





























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model of commitment





















































membership









Withdrawal


Positive Employee


Benefit programs

Flexible work

schedules

Changes in pay

structure













Benefit program








Application




Compliance stage







Compliance stage




























Job-related factor



working environment



Job-related factor




















working environment














Management style I





























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membership









Withdrawal


Positive Employee


Benefit programs

Flexible work

schedules

Changes in pay

structure













Benefit program








Application




Compliance stage







Compliance stage




























Job-related factor



working environment



Job-related factor




















working environment














Management style I





























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Withdrawal


Positive Employee


Benefit programs

Flexible work

schedules

Changes in pay

structure













Benefit program








Application




Compliance stage







Compliance stage




























Job-related factor



working environment



Job-related factor




















working environment














Management style I





























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Positive Employee


Benefit programs

Flexible work

schedules

Changes in pay

structure













Benefit program








Application




Compliance stage







Compliance stage




























Job-related factor



working environment



Job-related factor




















working environment














Management style I





























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Benefit program








Application




Compliance stage







Compliance stage




























Job-related factor



working environment



Job-related factor




















working environment














Management style I





























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Application




Compliance stage







Compliance stage




























Job-related factor



working environment



Job-related factor




















working environment














Management style I





























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Compliance stage







Compliance stage




























Job-related factor



working environment



Job-related factor




















working environment














Management style I





























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Compliance stage




























Job-related factor



working environment



Job-related factor




















working environment














Management style I





























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Job-related factor



working environment



Job-related factor




















working environment














Management style I





























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organizational commitment

Education