Employee Commitment- JKUATTIII

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Transcript of Employee Commitment- JKUATTIII

JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY CBD CUMPUS MSC HUMAN RESOURCE MANAGEMENT MHR 3103: EMPLOYEE RESOURCINGEMPLOYEE COMMITMENT IS IMPORTANT TO ORGANIZATIONS. DISCUSS

PRESENTED BY: GROUP SIX1. MARTIN SIMIYU 2. EVELYLINE AGALA 3. SAMUEL KINUTHIA 4. SUSAN NKOIBONI 5. CAROLINE GATERU 6. AHMED GALGALO 7. ZAITUNI KIOKO 8. ANDREW ONDARI HD 312 HD 312 HD 312 HD 312 HD 312 HD 312 HD 312 HD 312 1354/09 0373/09 1346/09 1616/09 1351/09 1643/09 1407/09 1403/09

PRESENTED TO: ABOK M.ADATE: 18 TH NOVEMBER 2009

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EXECUTIVE SUMMARY Over the last ten years, the study of commitment has advanced in many different directions. A variety of disciplines have adopted the topic as a theme in their research and these have offered fresh and significant insights. These recent advances include new approaches to both the conceptualization of employee commitment and the particular human resource practices intended to increase it.

Current research concerning employee commitment highlights the pitfalls of viewing commitment as a one-dimensional construct that can be enhanced by a particular human resource policy. This assumes that a particular practice, for example offering flexible working arrangements or more training, will have a significant and beneficial effect on employee commitment. Unfortunately, in practice it is not that simple because there is no single solution. All employees wants and needs cannot be addressed by a single policy.

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TABLE OF CONTENTS1. Introduction3 2. Definition of terms..5 3. Types of commitment.9 4. Factors affecting employee commitment..11 5. Benefits of employee commitment...16 6. Negative effects of low commitment....17 7. Measuring employee commitment.......18 8. Ways of enhancing employee commitment.18 9. Developing a commitment strategy.....26 10. Recommendations28 11. Summary & conclusion29 12. References....32

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Introduction The effective functioning of an organization highly depends on the commitment of its employees. In fact, the commitment of employees may be a key factor that

determines the success of a company in the modern world since, in the situation of the growing competition and the constant implementation of new technologies a company needs to have well-qualified and reliable personnel to maintain its position in the market. At the same time, the effectiveness and productivity of work of employees still remain the major factors that can contribute to the progress of the company. On the other hand, nowadays it is obvious that financial stimuli solely can hardly motivate employees to work more effectively and productively. In such a situation, employees commitment turns to be of a paramount importance since it is due to the high commitment of employees they can perform positive results of their work, increase its effectiveness and productivity, while low commitment leads, as a rule, to poor results of the functioning of the entire organization.

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DEFINATION OF TERMS. COMMITMENT Meyer & Allen 2001 define commitment as is a stabilizing force that acts to maintain behavioural direction when expectancy/equity conditions are not met and do not function. An obliging force which requires that the person honor the commitment even in the face of fluctuating attitudes and whims. (Brown 1996)

The relative strength of an individuals identification with and involvement in a particular organization (Mowday et al 1979)

According to Salancik (1977) commitment is a state of being in which an individual becomes bound by his action to beliefs that sustain his activities and his own involvement Allen & meyer,1990, commitment is a psychological state that binds the individual to the organization. EMPLOYEE COMMITMENT It is the psychological bond of an employee to an organization, the strength of which depends on the degree of employee involvement, employee loyalty and belief in the values of the organization. As defined by Poter (1974) Employee commitment is the relative strength of the individual's identification with and involvement in a particular organization. It consists of three factors:A strong desire to remain a member of the organization; A strong belief in, and acceptance of, the values and goals of the organization A readiness to exert considerable effort on behalf of the organization 5

MODELS OF COMMITMENT A THREE MODEL CONCEPTUALIZATION OF ORGANIZATION COMMITMENT. This model of organizational commitment model was developed by Meyer and Allen. According to the model, organizational commitment reflects at least three general themes. 1. Affective commitment to the organization 2. Continuance Commitment The perceived cost associated with leaving it 3. Normative Commitment- The obligation to remain with it. Affective Commitment Its the employees emotional attachment to, identification with and involvement in the organization. Employees with a strong affective commitment continue employment with the organization because they want to. Continuance Commitment The individual commits to the organization because he/she perceives high costs of losing organizational membership including economic costs (such as pension accruals) and social costs (friendship ties with co-workers) that could be incurred. The employee remains with the organization because he/she has to.

I t refers to an awareness of the costs associated with leaving the organization. The potential cost of leaving an organization include the threat of wasting the time and effort spent acquiring non transferable skills, losing attractive benefits, giving up seniority based privileges or having to uproot family and disrupt personal relationships.

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It also develops as a result of lack of alternative employment opportunities. Employees in this category remain because they need to. NORTMATIVE COMMITMENTS Refers to a feeling of obligation to continue employment . Employees in this category remain in the organization because they feel they ought to. Organization can develop normative commitment by providing reward in advance e.g. paying college tuition. Normative pressures may also make an individual feel that they ought to remain within the organization. Acknowledging these investments makes employees feel a sense of obligation to reciprocate by committing themselves to the organization until the debt has been paid .

One important point is that not all forms of employee commitment are positively associated with superior performance (Meyer & Allen, 1997). For example, an employee who has low affective and normative commitment, but who has high continuance commitment is unlikely to yield performance benefits. The main reason such an employee remains with an organisation is for the negative reason that the costs associated with leaving are too great.

THE HIGH COMMITMENT MODEL. ( IN STRATEGIC HRM.)

This model embraces workforce commitment and identification with the organizations values and goals. The main features of high commitment model are:

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1. Development of career ladders and emphasis on trainability and commitment as highly characteristic of employees at all levels in the organization.

2. A high level of functional flexibility with the abandonment of potentially rigid job descriptions.

3. The reduction of hierarchies and the ending of status differentials.

4. Heavy reliance on the team structure for dissemination of information (team building) structure work and problem solving. 5. Job design as something management consciously does in order to provide

jobs which have a considerable level of intrinsic motivation.

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A policy of no compulsory layoff or redundancies and use of permanent

employee with possible use of temporary workers to cushion fluctuation in the demand for labour. 7. New forms of assessment and pay system and more specifically merit pay profit sharing 8. A high involvement of employees in the management of quality. CONCEPTUALISATION OF COMMITMENT: MODEL DEVELOPED BY OREILLY AND CHATMAN. (1986) O'Reilly and Chatman(1986) developed their multidimensional framework on the basis of the assumption that commitment represents an attitude towards the organization. For them, commitment takes on three distinct forms, which they labeled 1. Compliance 8

2. Identification 3. Internalization Compliance occurs when attitudes and corresponding behaviors are adopted in order to gain specific rewards. E.g being very considerate towards people so that you get that promotion Identification occurs when an individual accepts influence to establish or maintain a satisfying relationship Relationship / Internalization occurs when influence is accepted because the attitudes and behaviors one is being encouraged to adopt are congruent with existing values. Employees thus become committed to organizations which they share value e.g. an organization that encourages integrity is likely to win the commitment of an individual who believes in integrity.

TYPES OF COMMITMENT . OMalley (2000) contends that a review of the commitment literature produces five general factors which relate to the development of employee commitment:

Affiliative Commitment: An organizations interests and values are compatible with those of the employee, and the employee feels accepted by the social environment of the organization.

Associative Commitment: Organizational membership increases employees self-esteem and status. The employee feels privileged to be associated with the organisation.

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Moral Commitment: Employees perceive the organization to be on their side and the organization evokes a sense of mutual obligation in which both the organization and the employee feel a sense of responsibility to each other. This type of commitment is also frequently referred to in the lit