Organisational Commitment – Definition, Meaning, Components

Definition

Organisational commitment is described as the psychological attachment of an employee for the company he works. It plays a crucial role in assessing the loyalty of the employee towards his organisation and whether it will lead to his retention in the firm.

Meaning of organisational commitment

Organisational commitment plays a significant role in every industry because it helps the management to assess the longevity of the employee’s stay in the company and whether he will be working towards achieving the goals and objectives of the organisation. It can successfully make predictions about

• employee retention
• organizational citizenship behavior
• employee turnover
• job performance
• distribution of leadership
• employee engagement
• employee dedication
• employee satisfaction

It is also related to

• superior performance in the business
• increased profitability
• employability
• role stress
• empowerment
• minimized customer churn
• job insecurity
• customer satisfaction metrics
• improved productivity

Management is looking for ways to strengthen the bond between them and their employees. Engaged and satisfied employees are an asset to a company, and it is their commitment and dedication that helps to increase organisational engagement.

Such employees adopt a proactive and constructive approach to boost growth and development in the organisation.

Factors affecting organisational commitment

An organization needs to know how its workforce feels about it so that they can take steps that will make the workers committed to their job and company. The various factors that affect organisational commitment are as follows-

• The organizations demonstrate their goodwill by looking after their professional well-being. One of the best ways is by rewarding them for their efforts. The incentive that a company offers its employees keeps them happy and satisfied in the workplace and has a direct impact on organisational commitment.
• Place good leaders at the top who have a better understanding of human nature and behavior. They will be able to handle their subordinates effectively so that the employees become committed to the organization’s goals and objectives. This factor has a direct impact on the organisational commitment of the employees
• Make sure that the employee feels secure in his job and trusts the organisation to do right for him. Higher job security will act favorably because his trust in the company will grow and this factor will have a direct effect on the organisational commitment
• The stress levels that are associated with a specific job role is an essential factor that affects the organisational commitment of an employee to a higher degree
• Encourage decision-making in employees because such a power encourages involvement and a feeling of ownership. This factor will lead to a higher degree of organisational commitment from the workforce.

Reasons for organisational commitment

The reason for different types of organizational commitment is because of different behavioral patterns, needs, and requirements of the members of an organization.

1. Continuance commitment 

It is related to an employee’s dedication towards his company and results in people making sacrifices for the greater good as well as making investments for the company

2. Cohesion commitment 

It is related to the attachment to social relations in a company. The way to increase cohesion commitment is by renouncing previous social ties and engaging in activities that will encourage and enhance group cohesion

3. Control commitment 

It is related to the attachment of an employee to the norms of an organisation. The advantage of control commitment is that it has the ability to shape behavior in desired ways. Control commitment exists in a workplace when the employees believe that the values and norms of the company will prove an essential guiding force to their behavior

Components of organisational commitment

The three components of organisational commitment are as follows-

1. Affective commitment 

The affective commitment component shows the emotional attachment of the workforce towards their company. This type of commitment means that the employee is engaged and happy in his workplace. He actively participates in meetings and discussions and shows his enthusiasm for the job.

It signifies a high level of active commitment and an increased chance of his staying in the company he works for. Offering suggestions and meaningful inputs can be only possible when an employee thinks of the organisation as his own and aligns his professional goals with those of the company to reach prevalent targets.

The employee in such cases wants to be part of the organisation hence makes a conscious effort to demonstrate his willingness through active involvement.

2. Continuance commitment 

The continuance commitment refers to the fact that in such a case the employee believes that he will lose something important by leaving the firm and this influences his decision and hence he remains attached to the firm. The fear of loss is for social loss, friendship, income or even prestige.

The employee continues with his commitment level because he realizes that he has already invested a vital part and enough energy in the organisation and if he leaves it now then all his efforts will be for nothing. In the following company, he will have to start from scratch and hence continuing here is more worthwhile for his professional as well as personal growth.

The employee is already attached to the firm he works for on an emotional and mental level and leaving it would seem a sacrifice for him. Economic factors like accruals and pension also play an essential role in his decision.

3. Normative commitment 

When an employee feels obliged to stay in the organisation, he has worked for a long time, then it is known as normative commitment. He thinks that this is the right decision to make and the reason for such a feeling can be several for instance he has been treated fairly, it is ethical because the firm has invested in you by offering training at significant levels or because the organization provides him with the chance to feel like a part of an extended family.

In case the employee has been rewarded several times for his loyalty and performances through incentives and rewards, then it can have a positive impact on his mindset, which will not allow him to leave the firm.

Work dimensions affected by organisational commitment

The work dimensions that are affected by organisational commitment are as follows-

• Employee well-being
• Employee productivity
• Organizational citizenship
• Employee behavior
• Employee turnover

Guidelines to enhance the organisational commitment in the employees

The employees are an integral and essential part of an organisation. To improve organisational commitment, it has first to strengthen the feeling of organisational commitment in the employees. Some simple guidelines to do so are as follows-

1. Commit to people-first values 

Remember it is the employees who should come first hence make a commitment to put them first by putting it in writing and hiring the best managers who are understanding and will make an effort to know and understand the workforce in the company

2. Clarify and communicate your mission 

Use value-based hiring practices to find the right fit for the company, clarify the ideology of the firm you are working with and provide value-based orientation to build tradition. Offer training to enhance the existing skills and know-how and communicate about it to the employees

3. Define responsibilities 

Each position in the company should be formally described so that the employees can know at the onset of the job description. It is essential for the management or the employer to let the employees know about the responsibility of the employee, what decisions he is allowed to make, what does the company expect from his role and to whom should he report

4. Train the managers and supervisors 

Supervisors, managers, and administrators are an essential part of a company as they are responsible for the lower-level employees. Most companies only think of offering training to recruits, but they forget that it is equally vital to train the people at upper levels so that the appropriate training can help them in bridging gaps between the two levels in an organisation

5. Guarantee organisational justice 

make sure that the organisation is providing open and transparent communication along with a grievance process that will address any issues and guarantee organisational justice

6. Map out career plans 

When the employees come to know that the company has already mapped out an effective career plan for its workforce then they are likely to stay with the company for a long time

7. Work together 

Build a value-based concept and put your onus on working together in an amicable setting

8. Offer support to employee development 

Support employee development by empowering and enriching the employees as this will enhance their organisational commitment

9. Ask employees for feedback

Make sure that surveys related to employee satisfaction are being conducted. These surveys will ask the employees directly about their satisfaction levels, what they want from the job, and what are their expectations. This feedback will help the company to know about its employees so that they can implement steps to enhance its commitment towards the organization

10. Offer competitive salaries 

Below-market wages will ensure that the employees will always be in the look-out for greener pastures and better working conditions. Take a look at the rival companies and find out about the salary they are offering. Now make a fair and competitive offer to the employees so that they will not shift their allegiance at the drop of a hat

11. Have an orientation program 

Start a consistent and formal orientation program for every employee

12. Create learning opportunities 

Make sure the employees are given enough opportunities to learn new things

13. Recognize the efforts of employees 

Take out some time and recognize the efforts of the employees publicly.

Advantages of organisational commitment

The advantages of organisational commitment are as follows-

• The benefit of organisational commitment is that the employee will be able to identify with the goals and objectives of the company.
• Organisational commitment encourages the employee to go beyond his usual boundaries and give more than 100% to his company
• Organisational commitment facilitates job satisfaction, and this leads to employee engagement.
• Employee commitment will result in high morale and help the workforce to stay in the company for a long time. Employee turnover is a serious issue which every industry is facing, and organisational commitment encourages employee retention in the company
• Organisational commitment will help the company to deal with issues of absenteeism, attrition and sickness rates
• Organisational commitment will promote better product quality because every employee, as well as the management, will be working towards achieving set targets and deadlines
• The organisational commitment ensures better safety measures and standards in a company
• An essential advantage of organisational commitment is that it provides the much-needed flexibility to the employee in adverse conditions
• Organisational commitment encourages the employees to go the extra mile, and this gives the company a competitive edge over other rival companies.
• Organisational commitment assist in creating a positive work culture by supporting the vision and mission of the company
• Market share, sales growth, and profit are connected to organisational commitment, and they can make a significant contribution to successful organisational performance
• Organisational commitment develops a feeling of loyalty within the employee, and this is why he is willing to make sacrifices for the organisation

How to improve organisational commitment

Some steps to improve organisational commitment are as follows-

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 and conduct regular meetings to show that they care and are committed towards the professional growth of every employee.

Give the employee a chance to evolve and broaden his scope. Discuss with them about their frustrations and the challenges they are facing in the workplace and come up with viable solutions that will benefit both the company and its employees.

This will have a positive impact, and the employee will gain energy from his work that will make him more productive.

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 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.

When a company puts its onus on creating an influential team culture, it is looking at the future because the commitment level of the teams will boost work-culture harmony in the long-term.

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 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.

This will give the words an additional meaning because the top brass has now taken every one of its employees in the loop. When employees feel a sense of camaraderie and ownership, they show organisational commitment and tend to stay longer in the company

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.

The employee is engaged, motivated and satisfied because the work culture has helped him to make viable and positive adjustments. The management should make a conscious effort to help all the employees fit perfectly in the work culture to boost organisational commitment

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.

Open and transparent communication will make the employees feel valued, and the sense of belonging will improve their performance levels.

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.

9. Challenging work environment 

Routine work seems boring and leads to lethargy and complacency. Everyone needs a challenge that will activate brain cells and help them to go out of their way to accomplish something.

If you are looking for ways to improve organisational commitment, then provide a challenging work environment for the employees. This will give them joy at work, provide intrinsic motivation and nudge them to challenge their boundaries.

10. Encourage innovation 

If you are looking for ways to improve organisational commitment, then encourage innovation of ideas and concepts amongst employees. Do not discourage anyone from speaking their mind or showing a different approach to combat an adverse situation.

Motivate team members and other employees to come up with other ideas and praise them for their out-of-the-box thinking because you never know when someone will hit the jackpot.

11. Delegate tasks 

The way to move forward is by delegating tasks to the right people. The top-level people cannot do all the work by themselves. It is important to delegate tasks to people who have the necessary knowledge to do so.

This will help the management to concentrate on things that only they can accomplish. Make sure the work is distributed effectively if you are looking for ways to improve organisational commitment.

12. Develop a feeling of trust 

Every employee should be able to trust his superiors and top management to do right for them. Developing a feeling of trust amongst each other and towards the company will boost organisational commitment amongst employees.

The faith will motivate the workforce to learn new skills and know-how and make strategic changes in their behavior and work mode so that they can give their best at all times

13. Offer constructive feedback 

Do not criticize your employees, especially in front of another workforce instead provide valuable feedback if you are looking for ways to develop organizational commitment. Criticism will act as shackles and prevent the employees from giving their best, whereas constructive feedback will work positively and encourage them to work harder and give their 100% to the company.

Appreciation from the top brass assists in boosting employee morale and encourages them to become more engaged in the workplace. Telling the employee that they are wrong is necessary, but with it, the management should show them the way to do things better? When an employee knows that he can make a difference for the better, then he will be motivated to do it at all cost

14. Offer incentives 

A company that recognizes the efforts of its employees is one that is appreciated by the workforce. Start a culture where the highest performers are praised in front of other employees so that it acts as an encouragement for them to do better.

Offer incentives, for instance, a cash prize or a certificate as an acknowledgment of their work as this will improve organizational commitment.

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