ORGANIZATIONAL COMMITMENT

PRESENTED BY
SONDARVA YAGNESH M
M .Sc.(AGRI) 1ST SEM
REG NO : 04 -2664 -2015
organizational commitment

is the individual's psychological attachment to

the organization.
Organizational Commitment

• An employee’s loyalty to the organization,

willingness to exert effort on behalf of the
organization, associated with the acceptance of
the organization’s goal and values and desire to
maintain membership.

• A worker’s feeling and attitudes about the

entire work organizations.
 importance of 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 worker's sense of organizational
commitment
.
Organizational commitment can be contrasted with other work-related attitudes,
job satisfaction : an employee's feelings about their job,
organizational identification : the degree to which an employee experiences a
'sense of oneness' with their organization.
Organizational Commitment

• The strength of an individual’s

identification with an organization.
• Three kinds of organizational commitment:
1. Affective
2. Continuance
3. Normative
 Kinds of Organizational Commitment

Affective Commitment:
The type of organizational
commitment that is based on
an individual’s desire to
remain in an organization
Continuance Commitment:
The type of organizational
commitment that is based on the
fact that an individual cannot afford
Normative Commitment: to leave.
The type of commitment that is
based on an individual’s perceived
obligation to remain within an
organization.
model of commitment

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 employees’ behavior.

Figure presents the tri-dimensional organizational commitment model

ORGANISATIONAL
CHARACTERISTICS
􀂃 Size AFFECT-RELATED
WORK
􀂃 Structure 􀂃 Attribution
EXPERIENCES
􀂃 Climate. Etc. 􀂃 Rationalisation AFFECTIVE
􀂃 Job scope
PERSONAL CHARACTERISTICS 􀂃 Met COMMITMENT
􀂃 Relationships
􀂃 Demographics expectations 􀂃 Organisation
􀂃 Participation
􀂃 Values 􀂃 Person –Job Fit 􀂃 Union RETENTION
􀂃 Support
􀂃 Expectations, 􀂃 Justice 􀂃 Need satisfaction 􀂃 Team
􀂃 Withdrawal
SOCIALISATION EXPERIENCES Cognition
􀂃 Cultural NORM RELATED CONTINUANCE
ROLE STATES 􀂃 Turnover Intention
􀂃 Familial 􀂃 Expectations COMMITMENT
􀂃 Ambiguity 􀂃 Turnover
􀂃 Organisational 􀂃 Obligations 􀂃 Organisation
􀂃 Conflict
MANAGEMENT PRACTICES 􀂃 Overload 􀂃 Union
PRODUCTIVE
􀂃 Selection COST RELATED 􀂃 Team
BEHAVIOUR
􀂃 Training 􀂃 Alternatives
PSYCHOLOGICAL 􀂃 Attendance
􀂃 Compensation 􀂃 Investments NORMATIVE
CONTRACT 􀂃 Performance
ENVIRONMENTAL CONDITIONS 􀂃 Economic COMMITMENT
􀂃 Citizenship
􀂃 Unemployment rate Exchange 􀂃 Organisation
􀂃 Family responsibility 􀂃 Social Exchange 􀂃 Union
EMPLOYEE WELL-
􀂃 Union Status 􀂃 Team
BEING
RETENTION 􀂃 Psychological Health
􀂃 Withdrawal Cognition 􀂃 Physical Health
􀂃 Turnover Intention 􀂃 Career Progress
􀂃 Turnover
PRODUCTIVE BEHAVIOUR
􀂃 Attendance
􀂃 Performance
􀂃 Citizenship
EMPLOYEE WELL-BEING
􀂃 Psychological Health
􀂃 Physical Health
􀂃 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
 Affective Commitment

employee's positive emotional attachment to the organization.

Meyer and Allen Defined as the “desire” 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 he/she "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 “positive relationships between tenure and
commitment maybe due to tenure-related differences in job status and quality”
Affective Commitment
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

What would you feel if you left

anyway
Continuance Commitment
Continuance Commitment is the “need” component or the gains verses losses of
working in an organization.

“Side bets,” 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 he/she 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 doesn’t 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 “side bets” that would be incurred from leaving their organization.

The problem with this is that these “side bets” don’t occur at once but that they
“accumulate with age and tenure
Normative Commitment

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

What would you feel if you left

anyway?
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 one's organization.

The employee stays with the organization because he/she "ought to". But generally if
an individual invest a great deal they will receive “advanced rewards.”

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 organization’s 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
Exit-Voice-Loyalty-Neglect

A framework that includes potential responses to negative

events

Loyalty
 A passive response where the employee remains
supportive while hoping for improvement

Neglect
 Interest and effort in the job is reduced
Exit-Voice-Loyalty-Neglect
Withdrawal
 Positive
Employee
Attitudes &
Behaviors

Increasing Job
Changes in Satisfaction & Benefit
pay
structure Organization programs
Commitment

Flexible
work
schedules
Changes in job structure

Job rotation – moving workers from one specialized job to another.

Job enlargement – 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 – 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 pay structure

Skill-based pay – paying employees an hourly rate based on

their knowledge and skills.

Merit pay – a plan in which the amount of compensation is

directly a function of a employee’s performances.

Gainsharing – make pay contingent on effective group

performance.

Profit sharing – all employees receive a small share of the

organization’s profits.
Flexible work schedules

Compressed work weeks – the number of workdays is decrease while the

number of hours worked per day is increased.

Flextime – 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.
Benefit program

Flexible working hours

Variety of health care option
Different retirement plans
Career development programs
Health promotion programs
Employee-sponsor childcare
Positive Employee Attitudes & Behaviors

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.
the nutshell, employee’s 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
Compliance 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
 Identification 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 stage

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 “want to stay” basis.

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

There are different levels of organizational commitment which are related to

the individual’s development of the individual’s organizational commitment

 High level of organizational commitment

 Moderate level of organizational commitment
 Lower level of organizational commitment
,
High level of organizational commitment

high level of organizational commitment is characterized by a strong

acceptance of the organization's values and willingness to exert efforts to
remain with the organization

“high organizational commitment means identifying with one’s employing

organization”.

The “will to stay” suggests that the behavioral tendencies at this level relate
closely with affective dimension of commitment, where individuals stay
because they want
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.
 Employment opportunities

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
Personal characteristics

Organizational commitment can also be affected by the employee's 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
working environment
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
Positive relationships

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

negatively”. 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
 Organizational structure

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
Management style
I
"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

employee's desire for empowerment and demand for a commitment to
organizational goals.

“more flexible and participatory management styles can strongly and positively
enhance organizational commitment”.

Organisations need to ensure that their management strategies

are aimed at improving employee commitment rather than compliance
 EFFECTS OF ORGANISATIONAL COMMITMENT

Organizational commitment can have either a

 Negative effect on the organization

 Positive effect on the organization.
Negative 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

“lack of organizational commitment or loyalty is cited as an explanation of

employee absenteeism, turnover, reduced effort expenditure, theft, job
dissatisfaction and unwillingness to relocate”.

Organizational commitment is regarded to be the best predictor of

employees’ 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.
 Positive effect of organizational commitment

Committed organizational members contribute positively to the organization which is not the case
with less committed members. “organizations whose members have higher levels of commitment
show higher performance and productivity and lower levels of absenteeism and tardiness”. 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
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 employees’ 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.
 Affective
Perceived Self commitment
Worth

Perceived Continuo's
commitment
Cost of Loss
HRM Policies
and Practices

Normative
Perceive Need commitment
to Reciprocate
A five component commitment model

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 job—
the routine, the processes, the cognitive schemas associated with a job
can make people develop a latent commitment to the job – just as it may
occur in a consumption setting..