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Chapter 3 Organizational Commitment McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

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Presentation on theme: "Chapter 3 Organizational Commitment McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved."— Presentation transcript:

1 Chapter 3 Organizational Commitment McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

2 Slide 3-2 Learning Goals  What is organizational commitment? What is withdrawal behavior? How are the two connected?  What are the three types of organizational commitment, and how do they differ?  What are the four primary responses to negative events at work?  What are some examples of psychological withdrawal? Of physical withdrawal? How do the different forms of withdrawal relate to each other?  What workplace trends are affecting organizational commitment in today’s organizations?  How can organizations foster a sense of commitment among employees?

3 Slide 3-3 Organizational Commitment  Organizational commitment is defined as the desire on the part of an employee to remain a member of the organization.  Organizational commitment influences whether an employee stays a member of the organization (is retained) or leaves to pursue another job (turns over).  Employees who are not committed to their organizations engage in withdrawal behavior, defined as a set of actions that employees perform to avoid the work situation— behaviors that may eventually culminate in quitting the organization.

4 Slide 3-4 Organizational Commitment and Employee Withdrawal Figure 3-1

5 Slide 3-5 Discussion Question  What creates a desire to remain a member of an organization?

6 Slide 3-6 Types of Commitment  Affective commitment – a desire to remain a member of an organization due to an emotional attachment to, and involvement with, that organization.  You stay because you want to.  Continuance commitment - a desire to remain a member of an organization because of an awareness of the costs associated with leaving it.  You stay because you need to.  Normative commitment - a desire to remain a member of an organization due to a feeling of obligation.  You stay because you ought to.  Focus of commitment refers to the various people, places, and things that can inspire a desire to remain a member of an organization.

7 Slide 3-7 Three Types of Organizational Commitment Table 3-1

8 Slide 3-8 Drivers of Overall Organization Commitment Figure 3-2

9 Slide 3-9 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.  “She’s committed”  “He’s loyal”

10 Slide 3-10 A Social Network Diagram The erosion model suggests that employees with fewer bonds will be most likely to quit the organization. The social influence model suggests that employees who have direct linkages with “leavers” will themselves become more likely to leave. Figure 3-3

11 Slide 3-11 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.  Increases to continuance commitment:  Total amount of investment (in terms of time, effort, energy, etc.) an employee has made in mastering his work role or fulfilling his organizational duties.  Lack of employment alternatives

12 Slide 3-12 Embeddedness and Continuance Commitment  Embeddedness summarizes a person’s links to the organization and the community, his sense of fit with that organization and community, and what he would have to sacrifice for a job change.  Strengthens continuance commitment by providing more reasons why a person needs to stay in his or her current position (and more sources of anxiety if he or she were to leave).  OB on Screen  The Firm

13 Slide 3-13 Embeddedness and Continuance Commitment, Cont’d Table 3-2

14 Slide 3-14 Normative Commitment  Normative commitment exists when there is a sense that staying is the “right” or “moral” thing to do.  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  Create an obligation that the employee is in the organization’s debt  Becoming a particularly charitable organization

15 Slide 3-15 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?

16 Slide 3-16 Withdrawal Behaviors  Exit - active, destructive response by which an individual either ends or restricts organizational membership.  Voice - an active, constructive response in which individuals attempt to improve the situation.  Loyalty - a passive, constructive response that maintains public support for the situation while the individual privately hopes for improvement.  Neglect - defined as a passive, destructive response in which interest and effort in the job declines.

17 Slide 3-17 Four Types of Employees StarsCitizens Lone WolvesApathetics Task Performance Organizational Commitment HighLow Low High Table 3-3

18 Slide 3-18 Task Performance and Organizational Commitment  Stars possess high commitment and high performance and are held up as role models for other employees.  Likely respond to negative events with voice  Citizens possess high commitment and low task performance but perform many of the voluntary “extra-role” activities that are needed to make the organization function smoothly.  Likely to respond to negative events with loyalty

19 Slide 3-19 Task Performance and Organizational Commitment, Cont’d  Lone wolves possess low levels of organizational commitment but high levels of task performance and are motivated to achieve work goals for themselves, not necessarily for their company.  Likely to respond to negative events with exit  Apathetics possess low levels of both organizational commitment and task performance and merely exert the minimum level of effort needed to keep their jobs.  Respond to negative events with neglect

20 Slide 3-20 Discussion Questions  How big of a problem is psychological withdrawal?  Is withdrawal always bad?

21 Slide 3-21 Psychological Withdrawal  Psychological withdrawal consists of actions that provide a mental escape from the work environment. (“warm-chair attrition”)  Daydreaming - when an employee appears to be working but is actually distracted by random thoughts or concerns.  Socializing - verbal chatting about non-work topics that goes on in cubicles and offices or at the mailbox or vending machines.  Looking busy - intentional desire on the part of the employee to look like he or she is working, even when not performing work tasks.  Moonlighting - using work time and resources to complete something other than their job duties, such as assignments for another job.  Cyberloafing - using Internet, , and instant messaging access for their personal enjoyment rather than work duties.

22 Slide 3-22 Physical Withdrawal  Physical withdrawal consists of actions that provide a physical escape, whether short term or long term, from the work environment.  Tardiness - the tendency to arrive at work late (or leave work early).  Long breaks involve longer-than-normal lunches, soda breaks, coffee breaks, and so forth that provide a physical escape from work.  Missing meetings - employees neglect important work functions while away from the office.  Absenteeism occurs when employees miss an entire day of work.  Quitting - voluntarily leaving the organization.

23 Slide 3-23 Psychological and Physical Withdrawal Figure 3-4

24 Slide 3-24 Psychological and Physical Withdrawal, Cont’d  Independent forms model of withdrawal argues that the various withdrawal behaviors are uncorrelated with one another, occur for different reasons, and fulfill different needs on the part of employees.  “I can’t stand my job, so I do what I can to get by. Sometimes I’m absent, sometimes I socialize, sometimes I come in late. There’s no real rhyme or reason to it; I just do whatever seems practical at the time.”

25 Slide 3-25 Psychological and Physical Withdrawal, Cont’d  Compensatory forms model of withdrawal argues that the various withdrawal behaviors negatively correlate with one another—that doing one means you’re less likely to do another.  “I can’t handle being around my boss. I hate to miss work, so I do what’s needed to avoid being absent. I figure if I socialize a bit and spend some time surfing the Web, I don’t need to ever be absent. But if I couldn’t do those things, I’d definitely have to stay home... a lot.”

26 Slide 3-26 Psychological and Physical Withdrawal, Cont’d  Progression model of withdrawal argues that the various withdrawal behaviors are positively correlated: The tendency to daydream or socialize leads to the tendency to come in late or take long breaks, which leads to the tendency to be absent or quit.  “I just don’t have any respect for my employer anymore. In the beginning, I’d daydream a bit during work or socialize with my colleagues. As time went on, I began coming in late or taking a long lunch. Lately I’ve been staying home altogether, and I’m starting to think I should just quit my job and go somewhere else.”

27 Slide 3-27 What Does It Mean to Be a “Committed” Employee? Figure 3-5

28 Slide 3-28 Workplace Trends that Affect Commitment  Diversity of the workforce  By 2012, minority groups will make up one-third of the workforce  47 percent of the jobs filled by women  The workforce is aging  More and more employees are foreign-born  The change in employee–employer relationships brought about by a generation of downsizing makes it more challenging to retain valued employees.

29 Slide 3-29 Maximizing Organizational Commitment  From an affective commitment perspective, employer strategies could center on increasing the bonds that link employees together.  PepsiCo, Proctor & Gamble  From a continuance commitment perspective, the priority should be to create a salary and benefits package that creates a financial need to stay.  A. G. Edwards, Principal Financial Group

30 Slide 3-30 Maximizing Organizational Commitment, Cont’d  From a normative commitment perspective, the employer can provide various training and development opportunities for employees.  IBM  If withdrawal behaviors occur, stop the progression in its early stages by trying to root out the source of the reduced commitment.

31 Slide 3-31 Takeaways  Commitment and withdrawal are negatively related to each other—the more committed an employee is, the less likely he or she is to engage in withdrawal.  There are three types of organizational commitment.  Affective commitment occurs when an employee wants to stay and is influenced by the emotional bonds between employees.  Continuance commitment occurs when an employee needs to stay and is influenced by salary and benefits and the degree to which he or she is embedded in the community.  Normative commitment occurs when an employee feels that he or she ought to stay and is influenced by an organization investing in its employees or engaging in charitable efforts.

32 Slide 3-32 Takeaways, Cont’d  Employees can respond to negative work events in four ways.  Exit is a form of physical withdrawal in which the employee either ends or restricts organizational membership.  Voice is an active and constructive response by which employees attempt to improve the situation.  Loyalty is passive and constructive; employees remain supportive while hoping the situation improves on its own.  Neglect is a form of psychological withdrawal in which interest and effort in the job decreases.

33 Slide 3-33 Takeaways, Cont’d  Consistent with the progression model, withdrawal behaviors tend to start with minor psychological forms before escalating to more major physical varieties.  Psychological withdrawal examples include daydreaming, socializing, looking busy, moonlighting, and cyberloafing.  Physical withdrawal examples include tardiness, long breaks, missing meetings, absenteeism, and quitting.  The increased diversity of the workforce can reduce commitment if employees feel lower levels of affective commitment or less embedded in their current jobs. The employee–employer relationship can reduce affective and normative commitment, making it more of a challenge to retain talented employees.


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