Organizational Commitment - Meaning & Definition

Published in Human Resources Terms by MBA Skool Team

What is Organizational Commitment?

Organizational Commitment is the psychological attachment that an employee has with their organization. This plays a big role in ascertaining the bond that the employee shares with the organization. This also helps in determining the value of an employee to an organization. Employees with higher commitment are more constructive and proactive with their work.

Factors affecting organizational commitment:

• Stress associated with a particular job role

• Decision making power that an employee has regarding their own work. Higher decision making power makes the employee feel empowered and leads to higher sense of commitment

• Higher job security makes an employee trust the organization more and commitment increases

• A good leader can make his subordinates more committed towards their work and the organization

• Benefits provided by a company keeps its employees happy and demonstrated the organizations goodwill toward the employees and their well being

Work dimensions affected by Organizational Commitment:

• Turnover

• Employee behaviour

• Organizational citizenship

• Employee productivity

• Employee wellbeing

There are three types of organizational commitment:

In 1991, Meyer and Allen constructed the Three Component Model (TCM). This model speaks of three types of commitments. They are as follows:

• Affective commitment: It showcases the emotional attachment and eagerness that an employee has for staying in an organization. These employees identify with the organizational goals. They fit the organizational culture and behaviour. These employees feel they are valued by the organization. They stay in the organization because they want to stay.

• Continuance Commitment: This type of commitment showcases the need that an employee has for staying with the organization. The reasons for this need may vary but is mostly the lack of alternative job or suitable remuneration. They stay as they have no better option.

• Normative Commitment: It showcases the obligation that the employee feels for staying in an organization. They may be keen to leave, but they end up staying due to guilt or sense of accountability.

Hence, this concludes the definition of Organizational Commitment along with its overview.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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