1. Organizational Commitment
• “an identification with the goal’s and values of the
organisation, a desire to belong to the organisation
and a willingness to display effort on behalf of the
organisation.”
• It is recognised as the key factor in employee-
employer relationship

2. Discussion Question
• What creates a desire to remain a
member of an organization?

3. Feelings ..

4. Job satisfaction
• What one wants in a job and what one has in
a job.
• Factors which affects Job Satisfaction : degree
of autonomy, working conditions, equitable
rewards, opportunities to grow etc..
• Outcomes : more productivity, less
absenteeism, less turn over, and more org
effectiveness

5. Motivation
• Motivation is a process that starts with
physiological or psychological deficiency or
need that activates behaviour or drive that is
aimed at a goal or incentive.
• Motivated employees help organizations to
survive and it becomes more productive

6. Types of Commitment
(Mayer & Allen Theory)
• Affective commitment
• Continuance commitment
• Normative commitment

8. Three Types of
Organizational
Commitment

9. Drivers of Overall Organization
Commitment

10. Affective Commitment
• Employees who feel a sense of affective
commitment identify with the
organization, accept that organization’s goals
and values, and are more willing to exert extra
effort on behalf of the organization.

11. Continuance Commitment
• Continuance commitment exists when there is
a profit associated with staying and a cost
associated with leaving.
• Tends to create a more passive form of loyalty.

12. Normative Commitment
• The sense that people should stay with their
current employers may result from personal
work philosophies or more general codes of
right and wrong developed over the course of
their lives.
• Build a sense of obligation-based commitment
among employees.

13. Discussion Questions
• Which type of organizational commitment
(affective, continuance, or normative) do you
think is most important to the majority of
employees?
• Which do you think is most important to you?

14. Employees who are not committed to
their organizations engage in
withdrawal behavior

15. Psychological and Physical Withdrawal

16. Withdrawal Behaviors
• Exit : Exit is a form of physical
withdrawal in which the employee
either ends or restricts organizational
membership.
• Voice : Voice is an active and
constructive response by which
employees attempt to improve the
situation.
• Loyalty : Loyalty is passive and
constructive; employees remain
supportive while hoping the situation
improves on its own.
• Neglect : Neglect is a form of
psychological withdrawal in which
interest and effort in the job decreases

17. Conclusion
• Downsizing makes it more challenging to retain
valued employees.
• The turnover cost would be so high for the
organization.
• The turnover and recruitment cost for a mid-level
manager according to national averages is estimated
as $ 64000

18. Potential Effects: Turnover
Activity Cost
Newspaper ads $8,000
Search firm fees $10,000
Interview costs $4,000
Managerial time $4,000
Work put on hold $2,000
Overload on team $4,000
Training for new $6,000
employee

19. Potential Effects: Turnover
Activity Cost
Lost contracts, $8,000
customers, and or
accounts
Lowered office morale $2,000
Loss of other $3,000
employees
Signing bonus & other $6,000
perks
Relocation expense $7,000
The Final Tab $64,000

20. • From an affective commitment perspective,
employer strategies could center on increasing the
bonds that link employees together.
• From a continuance commitment perspective, the
priority should be to create a salary and benefits
package that creates a financial need to stay.
• From a normative commitment perspective, the
employer can provide various training and
development opportunities for employees.
• If withdrawal behaviors occur, stop the progression
in its early stages.

21. Employee commitment in IT sector
• The overall Job satisfaction was measured
using the 15-item questionnaire
• Job security, interest, opportunity for
advancement, appreciation, company policy
and management practises...
• intrinsic aspects of
job, salary, supervision, social aspects of job,
• Working
conditions, communication, hours, ease, bene
fits ,and fair treatment

22. • organizational commitment was measured
using the revised Organizational
Commitment Scales (Meyer, Allen and Smith
1993) that is,
• The Affective Commitment Scale (ACS), the
Continuance Commitment Scale (CCS) and the
Normative Commitment Scale (NCS)

23. Findings of the survey
• The level of organizational commitment was
moderate, with relatively higher variability in
affective commitment.
• The employees are staying back with the
organization because of the cost of leaving
the organisation
• IT employees were showing only a moderate
level of job satisfaction.

24. • highest satisfaction levels were
• related to the social aspects of the job, working
conditions (excluding working hours), interest
(from intrinsic aspects of the job), job
security, communication, and ease of the job (as
an intrinsic aspect of the job)
• lowest satisfaction levels for working
hours, supervision, appreciation from
management, and salary
• i.e. employees are dissatisfied with the
working hours, supervision, appreciation from
management and the salary they are getting.

25. • The most important motivational factors for IT
employees were good wages,
promotion/growth, job security, interesting
work, and appreciation of work.
• Correlation : job satisfaction vs affective
commitment and normative – Positive
• This indicates that higher the level of job
satisfaction greater the level of affective
commitment and normative commitment

26. • Organizational commitment was highest for IT
professionals in the 40 - 50 yr. age group.
• In particular, commitment was lowest for IT
professionals in the 30 - 40 yr age group
• no significant difference in organizational
commitment between men and women IT
professionals
• But significant difference in commitment
between married and single IT professionals.

27. • If an IT organization can give importance to
salary, benefits, fair treatment, opportunities
and supervision it can reduce employee
turnover and can increase affective
commitment of its employees.
• The most important challenge of an
organization is to retain the talented work
force.
• It should motivate the employees which
results in better job satisfaction and thereby
improve the organizational commitment