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Chapter 3

Organizational Commitment - Chapter 3.docx

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Organization Studies
ORGS 1000
Frank Miller

Organizational Commitment - Employee’s desire to remain a member of an organization - Need to have talented employees and retain them long enough to benefit from their efforts - Managers spend a lot of time in training, mentoring and taking personal interest to make employees more proficient; leaving to work for someone else drains the knowledge and human capital out of the company - Estimated that 1/3 of Canadians do not plan to change their current jobs - With plentiful job opportunities, greater worker turnover risks are involved, especially for high performing employees - Accounting , finance, skilled trades, information technology specialists, engineers, sales and marketing, healthcare and other professionals (lawyers) are in high demand o 5 times the salary plus benefits needed to replace an executive  Incudes administrative, screening, training and orientation costs  Also includes decrease morale, lost organizational knowledge and lost productivity - Withdrawal behaviour: employee actions intended to avoid work situations Accenture - This is a global management consulting company collaborating with clients to help them become high performance organizations - Margaret works virtually with team members; employees must be able to work in environments depending on client’s needs (fly back and forth or use online communication) - It is important to keep employees committed; extensive time and money spent on retraining - Accenture organizes community events; groups of employees come together for charity dives, culture fare or sports activities - Gives consultants sense of connection despite far-flung nature of work What Does it Mean to be Committed? Forms of Commitment - The three forms of commitment create sense of psychological attachment to the company - Importance of the three forms may depend on employee nature; rationality vs. emotion or course of a career - People tend to be committed to top management that leads the firm, the department in which they work, the manager that supervises them or specific team of co-workers - Focus of commitment: people, places and things that inspire a desire to remain a member of an organization Affective Commitment - Employee’s desire to remain a member due to feeling of emotional attachment - Includes feelings about friendships, atmosphere or culture of the company - You stay in the company because you want to - Those feeling a sense of affective commitment identify with the organization o Accept organization’s goals and values and willing to exert extra effort o These employees engage in interpersonal and organizational citizenship behaviours - Social network diagram summarizes bond among employees - It is natural that emotional bonds among co-workers influence affective commitment o Erosion model: suggests that employees with fewer bonds with co-workers are more likely to quit o Social influence model: suggests that employees with direct linkages with “leavers” will themselves become more likely to leave - Companies promote opportunities for growth, achievement and personal development - The Keg involves employees in restaurant and corporate events Continuance Commitment - Employee’s desire to remain a member due to awareness of the costs of leaving o You stay because you have to o Issues of salary, benefits and promotions as well as concerns about uprooting a family o Occurs when there is a benefit associated with staying and cost associated with leaving - There is a lot of work that employees put in mastering his/her responsibilities (time, effort, energy) - If there are lack of employment alternatives, less desire to find work elsewhere o Alternatives depend on economic conditions, unemployment rate and marketability of a person’s skills o Higher continuance commitment associated with lower job performance; no one likes to be stuck o People perform enough so job is not at risk - Focuses on family issues; employees often need to stay for non-work reasons - Embeddedness: employee’s connection to and sense of fit in the organization and community o Summarizes employee’s sense of fit in the organization and what he/she would have to sacrifice for a job change  KPMG offers parental leave top-up payments for new mothers/fathers and financial support to cover adoption-related expenses  Shell Canada offers discounts on fuel purchases Normative Commitment - Employee’s desire to remain due to feeling of obligation - You stay because you have to - Sense that a debt is owed to a boss, a colleague or the company - Occurs when sense that staying is the right or morale thing to do - Some believe that long-term loyalty is the norm o Managers try to create a feeling that the employee is in the organization’s debt; employee might feel obligated to work several more years to pay back money spent on training  Wardrop Engineering Ltd. Is a company that provides engineering, environmental and information technology solutions to companies  Provides extensive technical mentoring and development program  Employees feel an obligation to reciprocate this goodwill Organizational Behaviour Internationally - In multinational corporations, employees can be committed to the local subsidiary or global organization o Employees distinguish between prestige of local subsidiary and reputation of larger organization o Also distinguish between support provided by local supervisor and global organization’s top management - Multinational corporations require employees to serve as expatriates o Commitments depends on how well expatriates adjust to foreign assignments o Work Adjustment: degree of comfort with specific job responsibilities and performance expectations o Cultural Adjustment: degree of comfort with general living conditions, climate, cost of living, transportation and housing offered o Interaction Adjustment: degree of comfort when socializing and interacting with members of the host culture - If feeling uncomfortable, then it is hard to create an emotional bond Organizational Behavior on Screen: The Incredible’s - Bob (Mr. Incredible) works at Insuracare; generic insurance company where he toils as a claims agent; is not emotionally attached to the company - Bob does not speak to anyone, is not attached with the boss or feel any obligation towards the company - He teaches clients how to exploit loopholes to get the money they need - The government has paid to relocate him many times and this is his last chance to make it work Withdrawal Behaviour - In tough times, organizations need employees to demonstrate loyalty; these occurrences put employees allegiance to the test - When a situation is particularly distressing, employees do the following: 1) Exit: response to a negative work event; one becomes often absent from wok or voluntarily leaves the organization; member ends or restricts organizational membership 2) Voice: response to negative work event; employee offers constructive suggestions for change 3) Loyalty: response to negative work event;
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