Seminar Report on

ORGANIZATIONAL COMMITMENT
Submitted towards partial fulfilment of the requirement for the degree of

Masters of Business Administration

2020-2022

Submitted to: Submitted by:

Dr. Dhiraj Sharma Anshu Aggarwal
MBA 4th Semester
20421094

SCHOOL OF MANAGEMENT STUDIES,

Punjabi University, Patiala
 ACKNOWLEDGEMENT
I, Anshu Aggarwal, student of Master of Business Administration of 2 ndyear, Roll no.
20421094, hereby declare that the seminar report on the title of ‘Organizational
Commitment’, submitted in the partial fulfillment of the requirement for the degree of
Master of Business Administration under the guidance of Dr. Dhiraj Sharma, School of
Management Studies, Punjabi University, Patiala, is my original work and has not been
submitted elsewhere for the award of another degree, diploma, fellowship, or any other
similar title.

Date: (Student’s Name & Signature)

Roll No: _____________

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Table of Contents
ACKNOWLEDGEMENT...........................................................................................................2
ORGANIZATIONAL COMMITMENT...................................................................................4
INTRODUCTION.......................................................................................................................4
TYPES OF ORGANIZATIONAL COMMITMENT...............................................................5
STAGES OF ORGANIZATIONAL COMMITMENT............................................................8
WHY IS ORGANIZATIONAL COMMITMENT IMPORTANT?........................................9
WHAT INFLUENCES ORGANIZATIONAL COMMITMENT?........................................10
HOW TO IMPROVE ORGANIZATIONAL COMMITMENT?..........................................11
WHAT CAN HRs DO TO INCREASE ORGANIZATIONAL COMMITMENT?.............14
SCALE OF ORGANIZATIONAL COMMITMENT.............................................................17
RESULT OF SURVEY.............................................................................................................19
CONCLUSION..........................................................................................................................20
BIBLIOGRAPHY......................................................................................................................21

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 ORGANIZATIONAL COMMITMENT

INTRODUCTION

Organizational commitment is an individual's psychological attachment to the organization.

Organizational scientists have also developed many nuanced definitions of organizational
commitment, and numerous scales to measure them. Organizational commitment refers to the
connection or bond employees have with their employer. This is based on industrial-
organizational psychology and describes the individual’s psychological attachment to the
organization. The level of organizational commitment can help predict employee engagement
and satisfaction, performance, and distribution of leadership. When an employee feels a
strong sense of organizational commitment, they buy into the heart and future vision of the
company (both professionally and personally), they understand the goals of the organization,
they feel as though they fit in and are well respected and compensated for the work they
do. This is likely to lead to an increase in productivity, engagement, commitment, and morale
and will increase an employee’s chances of staying with that organization for a longer period.
Given the ever-increasing competitive nature of organizations, this is key to companies
retaining their best talent.

Responsibility of representatives towards their individual associations has been one of the
focal exploration subjects in the hierarchical review. Hierarchical responsibility can be
described as: "a solid conviction and acknowledgment of the association objectives and
qualities, eagerness to invest impressive energy for association, and a powerful urge to stay as

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an individual from the association". Authoritative responsibility has an immediate
relationship with an increment in deals and productivity (Brett et al., 1995). Work fulfilment
(Lum et al., 1998) and hierarchical flexibility (Angle and Perry, 1981) negatively affects the
non-attendance and representative turnover (Valentine et al., 2000). Representative's
responsibility is viewed as essential to the association in light of the fact that serious workers
are more ready to make individual penances for their associations (Vitell and Singhapakdi,
2007). An Organization's moral qualities can expand representative's responsibility towards
their association as it is normal that workers would encounter a more grounded connection to
organizations that take on such qualities. Comparatively (Babin et al., 2000) observes that
representatives feel more dedicated when they see their companions taking part in moral
practices and interestingly, worker's level of responsibility will lessen assuming they accept
that their friends are occupied with dishonest conduct. This hypothesis expresses that
responsibility is a multi-layered build and that the associates, forerunners, and results of
responsibility fluctuate across many aspects (Meyer, 2001). The inquiry what hierarchical
responsibility and its forerunners are has produced a ton of contentions and conflict among
researchers. Research endeavors in the past have attempted to set up the forerunner of
hierarchical responsibility, and have concocted numerous expected factors. These
predecessor factors for the most part spin around three general classifications: "individual
qualities, hierarchical attributes, and work characteristics"(Meyer and Allen, 1991). There is
by all account’s strength of assessment that authoritative responsibility spin around three
primary aspects – full of feeling, continuation, and regularizing. Meyer and Allen proposed a
three-pronged methodology for understanding hierarchical responsibility. This viewpoint on
responsibility comprises of three general subjects: "full of feeling connection to the
association, saw costs related with passing on the association and the commitment to stay
with the organization"(Meyer and Allen, 1990).

The idea of Three – Component Model of hierarchical Commitment consolidates together the
representatives' conduct in associations (Meyer and Allen, 1990).

TYPES OF ORGANIZATIONAL COMMITMENT

In 1991, Meyer and Allen proposed the first model of commitment consisting of three
components – the Three Component Model (TCM) – each of which corresponds to a different
psychological state.  The three stages are:

1. Affection for your organization (affective commitment).

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2. Fear of loss (continuance commitment).

3. Sense of obligation to stay (normative commitment)

Affective commitment:

Affective commitment is the “desire” component of organizational commitment. In this state,

an employee demonstrates a high level of active commitment to the organization. They’re
happy, engaged, participate in meetings and discussions, and offer valuable input and
suggestions. They do all of this because they want to and strive to be an integral part of the
organization. The chances of an employee at this stage remaining with the organization for a
considerable time are high. It essentially implies a person's passionate association with the
association. Representatives whose objectives are predictable with the mission, vision and
morals of the association are submitted on an enthusiastic level to remain with their separate
associations. Factors, for example, job and objective clearness, work challenge, objective
trouble, peer attachment, value, responsiveness by the board, individual significance,
criticism and cooperation impact the emotional responsibility. Advancement of full of feeling
responsibility essentially includes ID and disguise. Right away, the people's compelling
connection to these associations is based the association they work in. also, it is disguise. It
basically alludes to compatible objectives and qualities held by people just as the association.

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Emotional hierarchical responsibility overall is worried about the degree to which a singular
relates to the association.

Continuance commitment:

Continuance commitment is when an employee weighs up the pros of cons of staying versus
leaving the organization. There’s a fear of loss at play, and their initial affection has
transformed into need.  They want to remain in the organization because they believe leaving
would be costly, and they’ve already invested significant time and energy in it. They feel
attached (both mentally and emotionally) to the organization. The employee weighs costs
such as pension accruals and friendships with co-workers against the benefits of leaving.
They also consider the availability of another position elsewhere and the disruption leaving
would cause on a personal level. It alludes to the representatives' responsibility dependent on
the qualities related with their association. It very well may be characterized as the attention
to the expenses related with leaving the association. Dangers and expenses related with
leaving the association are ascertain, and when these are seen to be higher than the
advantages related with proceeding with the current associations, the representatives choose
to remain. Continuation responsibility can be considered as a connection to the association on
the grounds that the relationship with the association depends just on an evaluation of the
monetary advantages acquired. In continuation responsibility, the people stay with a
particular association in light of the cash that workers procure because of time spent in the
association. Individual stay in the association since they are drawn to specific ventures, for
example, annuity plans, retirement benefits, association of explicit abilities and so forth.

Normative commitment:

At this stage, the employee feels a sense of obligation to stay with the organization.
Regardless of whether they’re unhappy or desire to pursue new opportunities, they believe
they have a duty to stay because it’s the “right” thing to do. There could be several different
reasons for this. They think about the time and resources that have been invested in them by
the organization, or family ties with the company are creating extra pressure, or the
organization regularly rewards continued commitment. Another factor might be they feel
they’ve been treated well by the company and fear the grass may not be greener on the other
side. Normative commitment is the final stage of organizational commitment. It is a sensation
of commitment to proceed with work. It tends to be clarified as a feeling of obligation to
proceed with work with a particular association. Representatives with regularizing

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responsibility feel that they should stay with the association. The standardizing component
should be visible as moral responsibility. Meyer and Allen contend that this honest conviction
emerges either out of the course of socialization inside the general public or inside the actual
association. In both of the case, it depends on the standard of correspondence for example
assuming the representatives gets an advantage, it places the person in question or the
association under the honest conviction to react in generosity. Thus, for this exploration
study, hierarchical responsibility can be characterized as the degree of connection to one's
present work environment genuinely and practically. Hierarchical responsibility is an
unconstrained cycle and it creates through the direction of people to the association.
Hierarchical responsibility creates through stages as laid out by O'Reilly.

STAGES OF ORGANIZATIONAL COMMITMENT

 Compliance stage: This is the first stage which centers’ on the employees accepting the
influence of others so as to benefit from them, through remuneration or promotion.
Attitudes and behavior at this stage are adopted simply to gain specific rewards. The
nature of organizational commitment in the compliance stage is associated with the
continuance dimension of commitment, where the employee is calculative with regards to
his/her stay in the organization. This implies that at this stage employees’ stay in the
organization for the rewards they receive.

 Internalization stage- This takes place when the employees find that the values of the
organization are intrinsically rewarding and congruent with his or her personal values.

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 Organizational commitment at this level is based on the affective dimension of
commitment. The employee at this stage develops not only the sense of belongingness but
also the passion to belong to the organization. Hence the commitment is based on a “want
to say” basis. The values of the individual therefore become congruent with those of the
group and the organization.

 Identification stage- Employees reach this stage when in order to maintain a satisfying
self-defining relationship with the organization, they accept the influence of others. In this
stage, employees feel proud to be associated with the organization. They identify the roles
they have in the organization as part of their self-identity. Organizational commitment at
this stage is associated with normative dimension.

WHY IS ORGANIZATIONAL COMMITMENT IMPORTANT?

Organizational commitment, especially affective commitment, has multiple benefits for both
employees and their organizations. 

 Employee productivity: When an employee is committed to their organization, they

believe in the company’s shared goals, vision, and mission, which in turn leads to
them being more motivated and therefore more productive. They make a greater effort
to be autonomous, set more ambitious goals, and get more done.
 Improved organizational performance: When an employee is heavily invested in an
organization, they are increasingly likely to be cooperative, immerse themselves in
collaboration and working within teams. Once again, this boosts the team’s morale
and productivity.
 Employee advocacy: A committed employee is more likely to advocate for their
organization because they believe in the larger vision. They have adopted the
organization’s goals and values on both a professional and personal level. This means
they actively support the organization’s products, services, and policies.  
 Lower absenteeism: When an employee is committed, they are much less likely to
call in sick than their co-workers. This is because they are more likely to enjoy
coming to work, completing tasks, achieving goals, and being a valued team member.

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  Decreased turnover: When an employee reaches the stage where they identify with
the organization’s goals and values, they are far less likely to consider leaving their
job, even when they experience inevitable periods of job dissatisfaction.

WHAT INFLUENCES ORGANIZATIONAL COMMITMENT?

Several factors can influence organizational commitment within an employee. 

 Job satisfaction: Job satisfaction refers to how much an employee enjoys their work.
When employees like their job, they are more likely to develop a stronger connection
to their organization.  In fact, one of the top reasons employees leave their job is job
dissatisfaction, which means ensuring employees are happy and enjoying their work
should be a top priority in all organizations. 
 Managerial support: Employees that are well supported are more likely to feel
happy at work, and therefore more motivated and productive.  The study also showed
that when leaders distribute leadership responsibilities out to other workers, this
increases job satisfaction and commitment instead of all the leadership resting on one
person. 

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  Role stress and role ambiguity: When an employee receives conflicting requests
from managers (role conflict comes into play) or experiences a lack of information to
complete a task (role ambiguity), this is likely to cause role stress. Stress can lead to a
decrease in performance, productivity and satisfaction, and an increase in the
probability of the employee leaving the organization. Role stress and ambiguity
almost always have a negative impact on job satisfaction and organizational
commitment.
 Empowerment: Empowerment in the workplace refers to motivating and energizing
employees towards achieving goals, enhancing self-efficacy by reducing
powerlessness, and increasing motivation and commitment. 
 Job insecurity and employability: Job insecurity negatively correlates with job
satisfaction and affective organizational commitment. When an employee believes
their job is secure for the long-term, they are more likely to become invested in their
role and the organization.

HOW TO IMPROVE ORGANIZATIONAL COMMITMENT?

1. Create growth opportunities:

Employees want to be associated with an organisation that will give them ample
opportunities to learn, train and develop alongside the firm. Establish a meaningful
connection and provide growth opportunities for employees if you are looking for ways to
improve organisational commitment. When the workforce is given the necessary space
for progression and growth, it will have a positive impact on his mindset and encourage
him to do better. The employer or top management must create career growth plans, set
clear goals and objectives, hold regular performance reviews, offer additional training
Employees want to be associated with an organisation that will give them and conduct
regular meetings to show that they care and are committed towards the professional
growth of every employee.

2. Respect the needs of employees:

Every employee knows that it is imperative to keep the professional and personal life
separate. In some cases, they overlap and start creating issues for the employee that is

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reflected in his work performance. At such times it becomes necessary or the
management to respect the needs of the employee and give him their support as well as
some leeway so that he can overcome the issues respectfully. Flexibility should be
encouraged in the workplace if you are looking for ways to improve organisational
commitment. Reach an agreement with the employee so that it can ensure a workable
work-life balance. Show him that he is valued and the company will do its part in making
his life more comfortable in adverse conditions.

3. Creating a teamwork culture:

In an organisation, numerous employees with different backgrounds and work cultures

have to work together. There will be differences in the way they see and perceive things.
It is essential to build a teamwork culture in the workplace because you cannot expect one
employee to think and behave in the same manner as the next one. Creating teamwork
culture facilitates a healthy environment where all the members of the teamwork
collectively to achieve team and organizational goals. In today’s changing
times, individual working is being replaced slowly and gradually by teams to reach the
deadlines.

4. Maintaining work ethics:

Work ethics is like a virus as it quickly catches up with all the employees in an
organisation. When the employees know that the company they are working for high
moral values, then the high standards will motivate them to give their 100%. They will be
respectful towards the company, its culture, mission, values, goals, and objectives.
Everyone wants to be associated with such companies who have maintained good work
ethics through thick and thin times. The best thing about it is those good ethics assure the
employees that they have an equal playing field and will be treated fairly in the company.

5. Communicate expectations and goals:

The employees want to be part of the organisation they are attached to. You cannot keep
them out of the loop as it will create discord and discontent amongst them. Remember the
employees that are engaged are the ones that are satisfied in their environment, and it is

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these employees that go on to become loyal, and the company can retain them for a long
time. It is human to be curious about the place you are working, and it is up to the
employer or top management to boost organisational commitment by making the
employees an integral part of the workplace culture. The best way to do so is by
communicating company goals, objectives and expectations to the employees in a clear
and precise language.

6. Positive work culture:

If you are looking for ways to improve organisational commitment, the best way will be
by developing a positive work culture. What is a positive work culture is one of the
critical questions that come across, and the answer is straightforward. It is a place where
an employee feels safe, secure and happy. He can be a part of the organisation and easily
share innovative ideas with his team and superiors without fearing backlash in case it is
not feasible.

7. Open and transparent communication;

The employees want to make a significant contribution to the growth and development of
the organization because at the end of the day if the company prospers then it will have a
direct impact on the employees, and they will also grow professionally. For this scenario,
it is essential that employee participation and organisational commitment increases. The
only way to facilitate it is by being open and transparent with the employees and
encouraging the entire workforce to adopt this policy.

8. Help the employees to fit in:

When employees feel at home, they will put a more significant effort into the
organization. Help them to fit in if you are looking for ways to improve organisational
commitment. Help them to know about the corporate identity so that they can align and
identify with them. Create shared experiences that will reinforce the feeling of a perfect
fit and belonging in its corporate culture. Involve the employees in decision-making as it
will give then clarity of thoughts and give genuine appreciation so that they will fit in
tightly.

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WHAT CAN HRs DO TO INCREASE ORGANIZATIONAL
COMMITMENT?
It’s clear that higher job satisfaction leads to improved organizational commitment. So, what
can HR do to increase satisfaction and commitment among employees?

1. Foster transparency and clear communication: For an employee to align with an

organization’s goals and vision, it must be made clear what these are. This includes how
employees fit into this picture, how they can contribute, and also their role today and in the
future. Letting employees participate in the company’s growth helps make them feel more
invested and a part of the overall mission. This means being transparent with profits (and
losses) and strategies. When an organization does this, it helps build trust, employees feel
valued, and their performance is more likely to increase. Additionally, when goals and
objectives are clear, employees can make better decisions on a day-to-day basis and
cooperate more effectively within their team. Ways to achieve this include holding monthly
profit meetings, sending out a newsletter to employees with essential updates, and ensuring
top management are all on the same page. That way, your organization can communicate
goals clearly across the board. 

2. Employ job design strategies to improve job satisfaction: Job design refers to creating a
job that simultaneously enables the organization to meet its goals and motivates and rewards
the employee. A well-designed job will lead to improved job satisfaction, lower absence and
turnover rates, and increased organizational commitment. Job design strategies include: 

 Job rotation: creating more variety and allowing employees to experience other roles
within the organization. 

 Job simplification: simplifying complex tasks and streamlining processes.

 Job enlargement: widening the scope of responsibilities and opportunities for

development and progression.

When you and your employees use some of these strategies, the work is likely to feel more
exciting and meaningful, and the employee will feel more responsible and better equipped to
do their job.

3. Promote an inclusive environment at work: It’s in our nature as human beings to crave a
sense of belonging and want to feel respected and heard by others. The larger an organization

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is, the more likely there will be certain majority and minority groups, where minorities are
unintentionally made to feel excluded and like outsiders. Here are some ways to promote an
inclusive environment at work: 

 Conduct an employee survey and act on the findings  

 Review recruiting and compensation practices

 Reassess employee policies

 Make inclusion part of the onboarding process

 Evaluate how daily practices affect everyone

4. Demonstrate your commitment to employee wellbeing: It’s clear when an organization

is (or is not) genuinely committed to the wellbeing of its employees. This should go beyond
working conditions and safety. Think about how you can improve employee wellbeing. A
great place to start would be to conduct a survey to collect feedback directly from employees
on how they believe wellness could be improved at work. You can also help gradually
implement recurring themes where possible. Perhaps you could create a break-out space for
your employees or set up a cafeteria with subsidized healthy food and drinks. Maybe you
could connect with local businesses and arrange discounts for specific services and products
(e.g., a gym membership). You could also implement a rule where if an employee is regularly
staying late to complete their work, a member of management checks in to discuss why
they’re continually working overtime and how to help reduce their workload or streamline
processes if needed. 

5. Measure organizational commitment: Organizational commitment is measured through

organizational commitment questionnaire. Today, the most widely accepted tool to measure
organizational commitment is a 24 item questionnaire by Alan and Meyer (1990). This
includes eight items in each of the three stages: the affective commitment scale, continuance
commitment scale, and normative commitment scale. Participants are asked to rate how they
feel on a scale. Statements included:

 This organization has a great deal of personal meaning for me.

 Right now, staying with my job at this organization is a matter of necessity as much as
desire.

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 This organization deserves my loyalty.

6. Strive for pay equity and fairness: In a Payscale survey, a quarter of

respondents indicated that higher pay was the primary reason they sought employment
outside their current organization. When your employees believe they receive fair
compensation for the work they do, they are likely to feel happier, and overall team morale
will likely be higher. On the other hand, if your employees feel they are being (or feeling)
underpaid and exploited, this can lead to a lack of motivation, increased absenteeism, and a
toxic work environment. Think about how you can effectively communicate about pay
equity and fairness with your employees.

7. Focus on employee development: Job design strategies are one way to increase
development within your employees. Still, there are many other ways to do this that will lead
to increased competency, and therefore satisfaction and commitment at work. Ensure that you
provide internal promotion opportunities and sufficient training and development to help
employees reach the next stage of their career. Offer continual opportunities for skill training
so that employees can feel more competent and confident in their role at work and increase
their productivity. Provide regular constructive feedback to highlight to employees where the
opportunities are for improvement and celebrate their achievements. Create opportunities for
them to set and achieve their personal goals in a desired time frame, and ensure they are
adequately challenged and rewarded.  

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SCALE OF ORGANIZATIONAL COMMITMENT

Organizational Commitment Survey Affective, Continuance, Normative Commitment Scale

(Copyright Meyer and Allen, 1997).
Directions: The following statements address an employee’s level of affective, continuance,
and normative commitments. Please indicate your degree of agreement or disagreement with
the statements by indicating (1) strongly agree to (7) strongly disagree.

Affective Commitment Scale Items

1. I would be very happy to spend the rest of my career in this organization.
2. I enjoy discussing my organization with people outside it.
3. I really feel as if this organization’s problems are my own.
4. I think I could easily become as attached to another organization as I am to this one. (R)
5. I do not feel like “part of the family” at my organization. (R)
6. I do not feel “emotionally attached” to this organization. (R)
7. This organization has a great deal of personal meaning for me.
8. I do not feel a strong sense of belonging to my organization. (R)

Continuance Commitment Scale Items

1. I am not afraid of what might happen if I quit my job without having another one lined
up.
2. I would be very hard for me to leave my organization right now, even if I wanted to.
3. Too much of my life would be disrupted if I decided I wanted to leave my organization
right now.
4. It wouldn’t be too costly for me to leave my organization in the near future.
5. Right now, staying with my organization is a matter of necessity as much as desire.
6. I believe that I have too few options to consider leaving this organization.
7. One of the few negative consequences of leaving this organization is that leaving would
require considerable personal sacrifice; another organization may not match the overall
benefits I have here.
8. If I had not already put so much of myself into this organization, I might consider
working elsewhere.

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Normative Commitment Scale Items
1. I think that people these days move from company to company too often.
2. I do not believe that a person must always be loyal to his or her organization. (R)
3. Jumping from organization to organization does not seem at all unethical to me. (R)
4. One of the major reasons I continue to work for this organization is that I believe that
loyalty is important and therefore feel a sense of moral obligation to remain.
5. If I got another offer for a better job elsewhere, I would not feel it was right to leave my
organization.
6. I was taught to believe in the value of remaining loyal to one organization.
7. Things were better in the days when people stayed with one organization for most of their
careers.
8. I do not think that wanting to be a “company man” or “company woman” is sensible
anymore. (R)

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RESULT OF SURVEY

It is clear that the variable Job satisfaction of employees is positively related to affective and
normative types of commitment. Job satisfaction is most probably affected by factors such as
type and variety of work, the autonomy involved in the job, the level of responsibility
associated with the job, the quality of the social relationship at work, rewards and
remuneration, and the opportunities for promotion and career advancement in the
organization. Job involvement of employees is positively related to affective and normative
type commitment. Organizational commitment of employees is most probably affected by
factors such as employer engagement, employee perceptions of job importance, employee
clarity of job expectations, career advancement opportunities, regular feedback and dialogue
with superiors, quality of working relationships with peers, superiors, and subordinates,
perceptions of the culture and values of the organization, effective internal employee
communications and rewards to engage them. Perceived Organizational Support (POS) is
positively related to affective and normative types of commitment. Research results indicate
that perceived organizational support began with the observation that if managers are
concerned with their employees‟ commitment to the organization, employees would then
focus on the organization‟s commitment to them.

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CONCLUSION

Committed employees are likely to be more productive, perform better, remain in an

organization longer, and therefore help an organization thrive and maintain its competitive
edge within an industry. If you don’t have a plan to increase organizational commitment, now
is the time to create one. If you want to future-proof your HR skill set and develop new HR
competencies. A strong aspiration to remain as a member of a particular company, a
readiness to exert high-levels of effort on behalf of the organization, and a distinct belief in,
and acceptance of the values and goals of the company means organizational commitment.

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BIBLIOGRAPHY

 https://www.questionpro.com/blog/organizational-commitment/
 https://www.koreascience.or.kr/article/JAKO202017764018218.page
 https://www.aihr.com/blog/organizational-commitment/#:~:text=Organizational
%20commitment%20refers%20to%20the,psychological%20attachment%20to%20the
%20organization.

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