Organizational commitment boosts employee morale, productivity, and reduces turnover, leading to a more effective business. Learn key strategies to foster commitment, including clear communication, job satisfaction, and fair compensation.
By Brad Nakase, Attorney
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Because committed employees experience a sense of belonging and are more motivated to work, businesses are able to function more effectively and accomplish their objectives. What is organizational commitment exactly, and how can your company encourage it?
The relationship or bond that workers have with their employer (the company) is referred to as organizational commitment. This explains a person’s emotional connection to the organization and draws on industrial-organizational psychology, or I/O psychology.
The degree of organizational commitment can be used to forecast performance, leadership distribution, and employee engagement and satisfaction.
An employee who has a strong sense of organizational commitment understands the company’s goals, buys into the company’s heart and future vision (both professionally and personally), feels like they belong, and is respected and fairly compensated for the work they do.
Employee morale, dedication, engagement, and productivity are likely to rise as a result, and there’s a greater likelihood that they’ll stay with the company longer. Given the increasingly competitive nature of businesses, organizational commitment is critical to keeping their top staff.
Committed workers are less likely to report absenteeism, behave more positively, and are more driven and determined.
Employee commitment and employee engagement are sometimes used interchangeably. However, there is one significant difference:
It is not a given that an employee who is engaged will also be committed. In a similar vein, an engaged employee is not automatically a committed one. Commitment is the amount of work that a person puts into their employment, whereas engagement is the degree to which an employee is happy in their position.
Which is, therefore, of greater importance?
Both of them are. Seeking a fine balance between commitment and engagement is one of the best things a company can do.
The goal of organizational development, a science-based process, is to improve an organization’s ability to adapt and become more efficient by creating and refining its various strategies, structures, and activities.
Increasing profitability or profit margins, customer happiness, cultural values, agility or adaptation, and market share are the typical goals of organizational growth. The main objective here is to increase an organization’s competitiveness and efficacy within its industry. A business that wants to be more effective needs to have engaged and dedicated staff members.
The Three Component Model (TCM), which was first developed by Meyer and Allen in 1991, has three components, each of which represents a distinct psychological state.
There are three stages:
The “desire” element of organizational commitment is known as affective commitment.
An employee exhibits a high degree of active dedication to the company when they are in this state. They contribute to meetings and conversations, are joyful and involved, and provide insightful opinions and recommendations. They take on these tasks in an effort to become essential members of the company.
At this point, there is a good possibility that the employee will stay with the company for a long period.
When a worker considers the benefits and drawbacks of staying rather than quitting the company, they are demonstrating continuity commitment. Their first affection has turned into necessity, and there’s an anxiety of losing something at work.
They feel that abandoning the company would be expensive, and they have already expended a lot of time and energy on it, so they would prefer to stay. They have an emotional and mental bond with the organization.
The employee compares the advantages of quitting to the expenses, including lost pension accruals and friendships with coworkers. They also take into account the possibility of finding a job elsewhere and the personal upheaval that might result from quitting.
During the stage of normative commitment, the worker feels obligated to remain with the company.
They feel obligated to stay because it’s the “right” thing to do, regardless of whether they’re pleased or want to explore other options. This could be the result of multiple factors.
They consider the time and money the company has put into them, the additional pressure that comes from having family links to the business, or the fact that the company consistently recognizes and rewards steadfast dedication. They may also fear that the grass isn’t always greener on the other side and believe they have been treated fairly by the company.
An analysis of the three-component model
Numerous studies have found that although TCM can predict turnover, it does so by combining attitudes about a behavior (leaving or staying) with attitudes toward a target (the organization). Scholars contend that a more traditional interpretation of organizational commitment—that is, an attitude toward the organization—should guide future research.
A considerably more comprehensive model, the Attitude-behavior Model (1993), was later proposed by Alice Eagly and Shelly Chaiken. Nonetheless, the three-component model developed by Meyer and Allen is still recognized as the most effective model for organizational commitment.
A commitment model with five components
A five-component commitment model has been presented more recently. The two extra stages are forced commitment and habitual commitment.
Habitual commitment is the term used to describe the procedures and routines that workers grow accustomed to, leading to the development of a latent commitment to the company, or the attitude that “I’m here, but I don’t have a good reason to be here.”
When an employee feels forced to stay with their company—perhaps due to financial dependency or the belief that they have little prospect of obtaining work elsewhere—they are said to be in a forced commitment state. For example, “I have to be here even though I don’t want to.”
Workers and their companies can gain much from organizational commitment, particularly affective commitment.
An employee that is dedicated to their company will have faith in the common objectives, vision, and mission of the business. This belief will boost the person’s motivation and productivity. They work harder to be self-reliant, set higher standards, and complete more tasks.
The commitment of an organization increases production. Moreover, dedicated workers positively impact their teammates’ and coworkers’ productivity. They want everyone working tirelessly to accomplish common objectives.
An employee’s capacity for cooperation, teamwork, and participation increases with their level of organizational commitment. Yet again, this raises the team’s spirits and increases productivity.
A dedicated worker is more inclined to support the company because they share the same overarching goal. They have both personally and professionally embraced the organization’s objectives and core beliefs. This indicates that they actively back the company’s policies, services, and goods.
Compared to their peers, devoted workers are far less likely to report absenteeism. This is due to the fact that they are more likely to like going to work, finishing projects, reaching objectives, and contributing to the team.
Even during the inevitable times of job unhappiness, employees are significantly less likely to consider quitting when they reach the point when they identify with the organization’s aims and values.
An employee’s organizational commitment can be influenced by various things.
Employment satisfaction is the measure of an employee’s enjoyment of their job. Workers are more likely to feel more a part of their company when they enjoy what they do.
According to a study by Dirani and Kuchinke (2011), job satisfaction and commitment are strongly correlated, and satisfaction is a good predictor of organizational commitment.
Job discontent is actually one of the main reasons workers quit. Thus, making sure workers are content and loving their position should be a top concern in all businesses.
A 2009 study by Hulpia et al. looked at the relationship between commitment and work satisfaction among teachers and the distribution of leadership and leadership support. The findings showed that increased organizational commitment was correlated with stronger cohesiveness and support from the leadership.
Well-supported workers are more likely to feel content at work, which boosts their motivation and productivity.
The study also demonstrated that rather than placing all of the leadership duties on one individual, managers who delegate authority to subordinates see an increase in commitment and job satisfaction.
Role stress is likely to occur when an employee has role ambiguity or conflicting requirements from managers, or when there is insufficient information to do a task. Stress can lower an employee’s performance, productivity, and contentment and raise the likelihood that they will leave the company.
When it comes to job happiness and organizational commitment, role stress and ambiguity nearly always have a negative effect.
In the workplace, empowerment is about enabling staff members to reach their goals, improving their sense of self-efficacy by minimizing their sense of helplessness, and boosting their level of dedication and motivation.
Two primary ideas underlie empowerment:
According to a study by Ahmad et al. (2010), commitment and job satisfaction are positively correlated with empowerment.
Workers with fixed-term contracts or anyone viewed as a “temporary” worker reported higher degrees of job insecurity than permanent employees, according to a 2009 De Cuyper research study.
Affective organizational commitment and job satisfaction are inversely correlated with job instability. Employees are more likely to become committed to their position and the company when they feel that their employment is secure in the long run.
It is known that increased job satisfaction leads to greater organizational commitment. So, what steps can HR do then to improve employee commitment and satisfaction?
It is necessary to communicate the company’s objectives and vision to an employee in order for them to support it. This includes the function that employees will play both now and in the future, as well as how they fit into the larger scheme and how they might contribute.
Allowing staff members to take part in the expansion of the business increases their sense of ownership and alignment with the overarching goal. This entails being open about strategies and earnings (and losses). When a company acts in this way, it fosters trust, makes workers feel important, and raises the likelihood that they will perform better.
Employees may also make better judgments on a daily basis and collaborate more successfully within their team when goals and objectives are clear.
To do this, you can send out a newsletter to staff members with important updates, arrange monthly profit meetings, and make sure upper management is in agreement. In this manner, your company will be able to properly explain its aims to everyone.
The term “job design” describes the process of designing a position that both helps the company achieve its objectives and inspires and compensates its employees. Increased organizational commitment, decreased absenteeism and turnover rates, and better job satisfaction are all results of well-designed jobs.
Among the strategies used in job design are:
When you and your staff implement some of these techniques, the work will probably feel more fulfilling and exciting, and the staff member will feel more accountable and capable of doing their job duties.
Humans by nature need a sense of community and the ability to be respected and heard by others. Minorities are more likely to unintentionally be made to feel alienated and outsiders in larger organizations due to the presence of certain majority and minority groups.
A McKinsey survey found that 39% of participants chose not to accept a job offer because they thought the company didn’t foster an inclusive culture.
Employees are less likely to be engaged, content in their roles, and dedicated to the company if they don’t feel like they belong. On the other hand, workers are far more likely to flourish and be devoted at work when they feel valued, heard, and involved.
Here are a few strategies for encouraging an inclusive workplace culture:
It is evident when a company actually cares about the welfare of its workers or not. This ought to extend beyond safety and working conditions. Consider how you could improve the wellbeing of your staff.
An excellent place to start would be by conducting a poll to get direct input from staff members regarding how they think workplace wellness could be better. Wherever it is feasible, you may help in progressively introducing reoccurring issues.
Perhaps you could set up a café with reasonably priced nutritious food and beverages, or construct a break-out area for your staff. Perhaps you could make connections with nearby companies to set up special offers for particular goods and services (like a gym membership). You might also institute a policy whereby a manager follows up with an employee who consistently stays late to finish their task, asking why they’re putting in extra hours and offering suggestions on how to lighten their workload or expedite procedures if needed.
When you show that you genuinely care about the well-being of your staff, they will feel valued and their job happiness will probably increase.
Organizational commitment questionnaires (OCQ), first created by Porter et al. (1974) and then standardized by Mowday et al. (1979), are used to measure organizational commitment.
These days, a 24-item Alan and Meyer questionnaire is the most commonly used instrument to gauge organizational commitment (1990). The emotional commitment scale, continuation commitment scale, and normative commitment scale have eight items in each of the three stages. On a scale, participants are asked to score their emotions.
Among the statements were:
OCQs are a useful tool for assessing how content and dedicated staff members are to their work and company. Using the findings, you may develop targeted tactics to address issues inside the company and raise employee satisfaction levels overall.
According to a Payscale survey, 25% of participants stated that their main motivation for looking for work outside of their current company was the possibility of earning more money.
Employee satisfaction and team morale are likely to increase when they feel they are being fairly compensated for the job that they do.
However, this can also result in a negative work atmosphere, low motivation, and higher absenteeism if your staff believe they are being underpaid and mistreated.
Consider how you may engage your staff in productive dialogue around fairness and wage equity.
Calculate the current pay equity within the organization. Ask employees about their opinions by conducting a survey. Work on refining your compensation procedures in light of your findings, and be open and honest about your progress.
One method to boost employee growth is through job design methods. However, there are numerous alternative approaches that may be taken to achieve this, which will boost competency and, in turn, increase commitment and job satisfaction.
Make sure you give staff members enough training and development opportunities as well as internal promotion possibilities to help them advance in their careers.
Provide ongoing chances for skill development to help staff feel more capable and secure in their roles at work, which will boost output.
Give employees regular, constructive feedback to help them see where they can improve and to recognize their accomplishments. Give them the chance to decide on and complete their own goals within the allotted time, and make sure they receive the right kind of challenges and rewards.
You may plan, carry out, and monitor all of the tasks listed above and more with the use of career pathing tools, for instance. Prioritizing the professional growth of your staff will undoubtedly result in a more capable workforce, more team spirit, and greater organizational commitment.
Employee commitment has numerous advantages. Because of this, every company needs to make sure that workers are content in their roles by encouraging devotion and putting in place a strong people strategy.
Employees that are dedicated to their work are more likely to be efficient, perform better, and stick with the company longer. As a result, they contribute to the success of the company and help it stay ahead of the competition in its industry.
This is the perfect opportunity to develop an organizational commitment plan if you don’t already have one.
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