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Lecture 4

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Administrative Studies
ADMS 2400
Indira Somwaru

ADMS 2400 → Lecture 4 Oct 2 – Lecture 4 (Case: Dimitri’s Baked Goods, 105) Organizational commitment  The desire of an employee to join and stay with an organization  3 types of commitment: o Continuance  employee stays because it would cost them too much to leave  ex: unionized firm  Companies generate the following incentives to create effective commitment:  high wages/benefits/work conditions  pensions  seniority o Affective (**this is the kind of commitment we want to generate**)  Employees values and the organization’s values match  Employee has an emotional connection with the organization (looking at bonds that tie ppl might help determine who leaves and who stays)  Erosion model: ppl w/ fewer bonds will quit  Social influence model: ppl w/ direct linkages with “leavers” will leave  Ex: companies used to advertise through person-job fit and today companies do a person-org fit (the reason for this shift is: flexibility and thinking/skills)  Companies want Affective commitment because of citizenship  Citizenship makes employees goes above and beyond  Companies generate the following incentives to create effective commitment:  T & D  growth (self-actualization) Training  Profit sharing/stock  Benefits (Google’s sleeping pod, gym, etc.)  Flexible schedules  Challenge/variety of job Job  Autonomy
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