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Chapter 3

Management and Organizational Studies 2181A/B Chapter 3: MOS 2181 CHAPTER 3

Management and Organizational Studies
Course Code
MOS 2181A/B
Sarah Ross

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-Jim sinegal CEO of Costco raised employee wages during economic downturn
-costco stuff is 15% cheaper making it the price leader- profits are from membership fees
-employees have to be knowledgable and loyal in order to make the experience of shopping fun
and convenient for their members
-CEO knows it’s more profitable in the long term to minimize employee turnover and maximize
employee productivity and commitment
-costco turnover rate is 5%
An employee’s desire to remain a member of an organization
-organizations look to reduce VOLUNTARY turnover
-withdrawal behaviour: employee actions that are intended to avoid work situations
Affective commitment: an employee’s desire to remain a member of an organization due to a
feeling of emotional attachment- stay because you want to (emotion based)
Ex. Atmosphere, friendships, culture
Continuance commitment: an employee’s desire to remain a member of an organization due to
an awareness of the costs of leaving- stay because you have to (cost based)
Ex. Salary, benefits, promotions, family
Normative commitment: an employee’s desire to remain a member of an organization due to a
feeling of obligation- stay because you ought to (obligation based)
Ex. Obligations, debt owed to boss/colleague/company
-3 forms combine to create psychological attachment to company
-committed employees have strong positive feelings about one particular aspect of job
(colleagues, manager, or the work they do)
focus of commitment: the people, places, and things that inspire a desire to remain a member of
an organization

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-feel sad if you left organization
-managers want employees to be affectively committed
-study shows moderately strong correlation with affective
commitment and citizenship behaviour
-nodes= employees with several direct connections to other
employees in social network diagram
-erosion model: a model that suggests that employees with fewer
bonds with co workers are more likely to quit the organization
-social influence model: a model that suggests that employees with
direct linkages to co-workers who leave the organization will be
more likely to leave themselves
-if 1 person with many connections was unhappy with the organization it would spread really
ex. Keg involves staff in restaurants in corporate events, clark builders treats members with
respect and trust, island savings credit union treats employees like family, earls allows
employees to become managers from dish washers, amex has training and education programs
and celebrates employee’s accomplishments
-feel anxiety if you left organization
-profit associated with staying and cost associated with leaving
-continuance commitment increases with the amount of time, effort, and energy employees have
put into work
-also increases when an employee has a lack of alternatives
-no relationship between continuance commitment and citizenship behaviour
-centre of personal or family issues (non-work issues)
-embeddedness: an employee’s connection to and sense of fit in the organization and committee-
strengthens continuance commitment
(Ex. Links- worked here for a long time, family nearby. Fit- job uses my talents and skills, the
community where I live is home. Sacrifice- good retirement benefits, people respect me)
ex. KPMG offers parental leave top up (up to 20,000$), shell has great discounts on fuel,
Ceridian Canada gives petowners good pet insurance.
-feel guilt if you leave organization (ex. If work paid your tuition and you left)
-obligation sense commitment is built if work is charitable or if people feel they owe a debt to
-charity is very relevant for generation y (1977-1994)
-charity generates goodwill, makes employees feel good abt org, and attracts new recruits
ex. Wardrop engineering helps new Canadians fit into job by promoting integration and
inclusiveness- providing prayer facilities and cross-cultural/language training. Employees feel
the need to reciprocate the goodwill.
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