Organizational commitment

In business, organizational commitment is the sense of dedication that employees feel toward the companies and organizations they work for. It can be measured by the extent to which an employee identifies with the company's goals, a willingness to work on behalf of the organization, and a desire to keep working for the business. Employees may be committed to their workplace for different reasons, including affection for their employer, the cost of leaving, and an obligation to stay. These reasons form the basis for the three components of organizational commitment: affective commitment, continuance commitment, and normative commitment. The level of an employee's organizational commitment affects work-related attitudes, job satisfaction, turnover, and job performance. Organizations seek to understand organizational commitment so they can build a highly committed workforce. Employees with a greater sense of attachment to their workplaces are likely to be more motivated to perform well on the job. This can result in higher productivity, which helps organizations achieve their goals and objectives.

Background

The concept of organizational commitment is a part of industrial and organizational psychology, the branch of psychology that studies the attitudes, beliefs, and behaviors of people in the workplace. Since the 1950s, psychologists have studied how employees develop loyalty toward their workplaces, their sense of belonging, and the causes of their attachment. The term started appearing in workplace literature in the 1960s as employers sought to foster commitment among employees.

In 1991, psychologists John Meyer and Natalie Allen proposed the three-component model of organizational commitment. The analytical model defines the reasons why people are dedicated to their employers.

Affective commitment is the feelings and emotional attachment that employees have for their organizations. When employees like what they do and the company they do it for, they are more likely to share the organization's values and objectives. As a result, workers feel like they belong at the organization.

Continuance commitment refers to employees' perception of the costs involved in leaving the organization. Workers may be more willing to continue working for the same employer once they realize what they would lose by finding a job somewhere else. Potential costs include money, such as a lower salary or fewer benefits; tenure, as individuals may be giving up the seniority they have accrued over the years; and social relationships, including alliances or friendships. Employees may also stay with their employers if they believe a lack of other jobs exists.

Normative commitment is the moral obligation that workers feel toward the organization. Employees may not be currently satisfied with their jobs, but they believe staying with the employer is the right thing to do. Workers may feel a responsibility to remain because of rewards or favors they have received from the organization, such as training, tuition reimbursement, or bonuses.

Meyer and Allen suggest that employees can experience all three components of organizational commitment at the same time and in different degrees. Organizational commitment is measured by report scales filled out by employees. The first organizational commitment measure was the Organizational Commitment Questionnaire in 1979. The questionnaire mainly focused on affective commitment. Meyer and Allen later devised an organizational commitment measure with scales that correspond to affective, continuance, and normative commitment.

Overview

Organizations strive to examine organizational commitment and its effects on workplace variables. In doing so, employers can design programs and strategies to grow commitment among employees so they are more likely to contribute to the company's success.

The attitudes that employees have about their workplace are influenced by affective, normative, and continuance commitment. Workers who believe their employer is supportive and helpful will display upbeat attitudes. Positive experiences, including fair treatment on the job, will increase affective and normative commitment. Employees with high affective commitment may even promote their workplace and bring others into the company. On the other hand, workers who feel compelled to stay at their workplace—high continuance commitment—but dislike their jobs—low affective commitment — may criticize their workplace to others. This could hurt the organization's reputation and ability to attract high-performing employees.

Job satisfaction is greatly related to organizational commitment. When workers are more involved in their jobs, they are more likely to enjoy their work. Employees with high affective commitment like their jobs, which they associate with the company they work for. When workers are happy at their workplace, they experience more job satisfaction. Alternatively, workers with continuance or normative commitment may not enjoy their jobs as much. Their sense of loyalty to their employers, which stems either from a fear of the costs of leaving or a sense of obligation, is greater than their level of satisfaction in performing the job.

Organizational commitment is a key predictor of turnover, or the percentage of employees that leave the company within a certain time frame. The higher the level of organizational commitment, the less likely employees will be to depart the organization. Employees with affective commitment strongly identify with their employers and are proud to work there. They are satisfied in their jobs and are more likely to stay with their employers. Those with continuance commitment may not want to shed the benefits, seniority, or relationships they have built over time, or they may perceive that alternative jobs are few. Workers with normative commitment may stay with employers through organizational downswings and pay cuts because they do not want to desert the company during hard times.

An employee's sense of commitment impacts job performance. Workers who feel a greater sense of affective commitment and job satisfaction will be motivated to work harder and put more effort on behalf of the organization than employees who lack that attachment. Employees with normative commitment may also feel an obligation to exert their best efforts on the job. However, employees with high continuance commitment may not be motivated to push themselves above their required duties.

After assessing organizational commitment, employers aim to devise programs that encourage affective commitment while reducing employees' reliance on continuance and normative commitment. This allows organizations to form and retain a high-performing workforce.

Employees with high affective commitment will exhibit positive attitudes, experience increased job satisfaction, remain with the company, and work harder for the organization. When motivated employees work harder, they increase their productivity, which benefits businesses and their bottom line.

Organizational commitment is a critical ingredient of a company's prospects for success. By fostering commitment among workers, businesses can maximize their employees' potential and contributions in achieving organizational goals and objectives.

Bibliography

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Meyer, John P., and Natalie J. Allen. Commitment in the Workplace: Theory, Research, and Application. Sage Applications, 1997.

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