Organizational Commitment (OC)

What is organizational commitment?

Organizational commitment is the level of connection and dedication an employee feels towards their organization. It’s more than just being loyal; it involves actively engaging with the organization and wanting to contribute positively to its success.

Mowday, Porter and Steers in Triatna (2015) define organizational commitment as “”the relative strength of an individual’s identification with and involvement in a particular organization.”

According to Buchanan, 1974, organizational commitment is “an affective attachment to the goals and values of the organization, and to the organization for its own sake, apart from its purely instrumental worth.”

Studies have described three main components describing commitment:

1. Firm belief in the organization’s mission and principles.
2. Eagerness to put in significant effort for the organization.
3. Strong commitment to staying with the organization.

Why is organizational commitment important?

Organizational commitment is a motivating factor for employees to stay with the organization for longer times, hence improving retention while also reducing turnover. It is further beneficial for the following reasons:

• Increases productivity: When employees feel committed to their jobs, they are more productive in their roles and work with dedication.
• Increases job satisfaction: Committed employees enjoy their role and work and hence feel satisfied with the job they’re doing.
• Boosts team morale and engagement: When all the team members are committed, the overall team morale and engagement are significantly higher.
• Decreases absenteeism: Committed employees are less likely to take unplanned leaves, resulting in lower absenteeism rates.

What factors influence organizational commitment?

Organizational commitment is influenced by three main factors:

Job satisfaction

Job satisfaction motivates employees to perform better, leading to higher economic and psychological rewards. When these benefits are fair and appropriate, employees feel satisfied, believing they are rewarded according to their performance.

Conversely, if rewards don’t match achievements, uncertainty arises. Job satisfaction hinges on the alignment between expectations and reality.

Job satisfaction is influenced by several factors:

• Job stress levels
• Work environment
• Employee relations
• Recognition by employer
• Benefits provided by employer

Job characteristics

Job characteristics refer to the attributes of employee duties, including responsibilities, tasks, and elements that contribute to job satisfaction. Characteristic models focus on job enrichment, aiming to design roles that fulfill employees’ needs for growth, recognition, and responsibility.

Five core characteristics of jobs influence key psychological states of employees:

• Skill diversity
• Task identity
• Task significance
• Autonomy
• Job feedback

Salary/compensation

Compensation or the salary component is a crucial factor of organizational commitment. Compensation is a key HRM function involving various individual awards for completing organizational tasks. The main objectives of compensation should be:

• Respecting work performance: Providing adequate compensation as a reward for employee performance, which encourages desired behaviors such as high productivity.
• Ensuring fairness: A fair compensation system ensures justice among employees, aligning rewards with duties, functions, positions, and performance.
• Retaining employees: A good compensation system helps retain employees by preventing them from leaving for more lucrative opportunities.
• Attracting quality employees: Effective compensation attracts prospective employees and provides opportunities to select the best candidates.
• Controlling costs: A good compensation system reduces recruitment frequency by retaining employees, and saving on recruitment and selection costs.

What are the three types of organizational commitment?

The type of organizational commitment can influence an employee’s decision to stay with an organization.
However, affective commitment is often considered the most desirable as it tends to result in higher job satisfaction and performance.

The three main types of organizational commitment include:

Normative commitment

This is the “I ought to stay” feeling. Employees with normative commitment feel a sense of obligation to remain with the organization. This might be due to:

• Feeling indebted for training or opportunities provided
• A strong sense of loyalty or duty
• Cultural or family values that emphasize staying with one employer

Continuance commitment

This is the “I need to stay” mindset. Employees with continuance commitment remain because leaving would be too costly. Factors include:

• Financial needs (salary, benefits)
• Lack of alternative job opportunities
• Specialized skills that may not transfer easily to other organizations

Affective commitment

This is the “I want to stay” attitude. Employees with affective commitment have a strong emotional attachment to the organization. They typically:

• Identify with the company’s goals and values
• Feel a sense of belonging and connection
• Enjoy their work and workplace relationships

How to improve organizational commitment?

Organizational commitment can be improved by focusing on a supportive environment, aligning interests, and building trust. The process must involve employees while keeping them well-communicated.

Here are six proven ways to improving organizational commitment:

1. Ensure justice and support: Create a fair and supportive environment with grievance procedures and two-way communication to foster employee loyalty.
2. Align interests: Implement profit-sharing plans to align company and employee interests, enhancing commitment when perceived as fair.
3. Build trust: Cultivate trust through transparent leadership and job security, as trust in leaders is crucial for employee loyalty.
4. Enhance organizational comprehension: Increase commitment by helping employees understand the company’s history, present, and future through open communication and interactions.
5. Encourage employee involvement: Promote employee involvement in decision-making and provide job variety and autonomy to strengthen their identification with the organization.
6. Invest in training and development: Offer training and development opportunities to help employees grow, reinforcing their bond with the organization and retaining top talent.