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Module-3: Loyalty and Organizational Commitment

Employee Loyalty

Loyalty and trust have become more difficult to obtain and give in the work place.

Loyalty seems like a quality thats becoming increasingly harder to find whetherits employee loyalty to a company or consumer loyalty to a product. In the past,

employees believed when they were hired by a company that they would be with

that company until they retired. Starting in the 1!"s as companies sought to

increase profits, workers perceptions of lifetime employment were shattered by

corporate downsi#ing, company relocations to other states or countries and static

wages.

Loyalty has two dimensions$ internal and e%ternal. Loyalty is fundamentally and

emotional attachment. &he internal dimension is the emotional component. It

includes feelings of caring of affiliation and of commitment. &his is the dimension

that must be nurtured and appealed to. &he e%ternal dimension has to do with the

way loyalty manifests itself. &his dimension is comprised of the behaviors that

display the emotional component and is the part of loyalty that changes the most.

&he first step is to redefine loyalty as internal feelings that can be manifested in a

variety of new ways. Instead what happens most often is that the leaders of an

organi#ation feel that they are very loyal to their employees and that the

organi#ation has polices in place to reflect that but that workers dont understand

what management is trying to do. 'n the other hand, employees who feel they are

very loyal to their companies arent demonstrating it in ways management

understands. &he terms of the loyalty are far different from what they were in the

past. (ather than a blind corporate allegiance, employees show their commitment

through their efforts for the organi#ation.

)mployers, managers and supervisors who take steps to win their employee

loyalty now will reap the benefits when the pool of prospective employeesdwindles. &heir track record for providing a desirable working environment will

draw the best people*those who will have their choice of companies and

organi#ations to +oin. ise employers will also begin, if they havent already to

make their workplaces welcoming and rewarding for a diversity of people to take

advantage of the growing diversity of the population. -ompanies who fail to do

this will find their choice of employees severely limited.

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'ne way to improve the work place for everyone is to create an atmosphere of

fun. ccording to /uane Smelser a trainer0coach in eaverton, 'regon, people

who are lighthearted, having fun and in good spirits are more likely to be

successful. &heir mental attitude produces increased o%ygen, endorphins and

blood flow to the brain which enables them to think more clearly and creatively.&hey are more rela%ed and spontaneous, more accepting of others and more likely

to share their sense of humor. 2eople like to be with others who are laughing and

having fun. s 3ictor orge, the comedic concert pianist once said, Laughter is

the shortest distance between two people. Smart managers will let laughter be a

team*builder for them.

Employees Organizational Commitment (EOC)

'rgani#ational commitment has been defined as a psychological state that

characteri#es an employees relationship with an organi#ation and has

implications for the decision to continue membership of the organi#ation 45eyer

and llen 116.

&here are three dimensions of organi#ational commitment.

1. ffective commitment refers to employees identification or strong emotional

attachment and involvement in the organi#ation.

7. -ontinuance commitment refers to an awareness of the costs associated with

leaving the organi#ation.

8. 9ormative commitment reflects an obligation to continue with the

organi#ation.

ffective commitment refers to the employees emotional attachment to

identification with and involvement in the organi#ation. )mployees with a strong

affective commitment continue employment with the organi#ation because theywant to. ccording to 5owday 41!76, the antecedents of affective commitment

generally fall into four categories $ 416 personal characteristics, 476 structural

characteristics 4organi#ational6, 486 +ob*related characteristics and 4:6 work

e%periences. 2eople with high affective commitment have been shown to actively

do e%tra role or organi#ational citi#enship behaviors. &hey include providing e%tra

help to co workers being considerate volunteering for special activities and

making suggestions when problems arise. ;igh affective commitment was

positively correlated to with willingness to suggest improvements accept things asthey are and negatively correlated with tendency to withdraw.

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-ontinuance commitment refers to an awareness of the costs associated with

leaving the organi#ation. &he potential costs of leaving an organi#ation include

the threat of wasting the time and effort spent acquiring nontransferable skills,

losing attractive benefits, giving up seniority*based privileges or having to uproot

family and disrupt personal relationships. part from the costs involved in leavingthe organi#ation, continuance commitment will also develop as a function of a

lack of alternative employment opportunities. )mployees whose primary link to

the organi#ation is based on continuance commitment remain because they need

to.

9ormative commitment reflects a feeling of obligation to continue employment.

)mployees with a high level of normative commitment feel that they ought to

remain with the organi#ation. iener41!76 suggests that the feeling of obligation

to remain with an organi#ation may result from the internali#ation of normative

pressures e%erted on an individual prior to entry into the organi#ation4family of

cultural orientation6 or following entry 4organi#ational orientation6. ;owever,

normative commitment may also develop when an organi#ation provides the

employee with rewards in advance 4eg paying college tuition6, or incurs

significant costs in providing employment 4eg head*hunting fees or the costs

associated with +ob training6. (ecognition of these investments causes employees

to feel an obligation to reciprocate by committing themselves to the organi#ation

until the debt has been repaid 4Scholl,1!16.