The Effect Of Organizational Culture And Leadership Style On Staff Commitment Essay

“Organizationally committed employees will usually have good attendance records, demonstrate a willing adherence to company policies and have lower turnover rates. In particular, their broader base of job knowledge and high level of customer service often translates to into loyal customers who buys more form them, Making referrals resulting in new customer and even pay a premium price.”

Organisational commitment has grown significantly in the field of organisational psychology. Early studies of organisation commitment have shown the concept as a single dimension, which was constructed around attitudinal perspective, embracing identification, loyalty and involvement. It was suggested my Porter et al (1974) attitudinal perspective refers to the psychological attachment or affective commitment formed by an employee in relation to his identification and involvement with the respective organisation. He further describes it as an attachment to the organisation, characterised by an intention to remain in it; an identification with the values and goals of the organisation. This theory holds that people that are committed to the organisation as far as they hold their positions, regardless of the demanding conditions they experience. However, should they be given alternative benefits, they will be prepared to leave the organisation.

All organizations have the common objective of being successful and nowadays due to competition that is not an easy achievement. The most important capital that companies have is the human capital and, to be successful, is essential for the organizations to focus on people.

In particular cases, the high rate of staff turnover and absenteeism are associated with low level of organisational commitment (Morrow, 1993). The employee who works on this level must be dissatisfied with the organisation; such an employee may stay because he or she needs to stay for the monetary benefits linked to the continuance dimension (Meyer & Allen, 1997). In simple words, it can be inferred that lower level of commitment is interconnected to continuance commitment among the three dimensions of commitment.

Steers, R. M. (1977) ‘Antecedents and outcomes of organizational commitment. Administrative Science Quarterly’, 22 (1), 46-56.

Current studies indicate that job satisfaction brings relevance to organizational responsibility that affects employee commitment. Researchers determined that workplace experience is a direct correlation to job satisfaction and commitment. It is believed that job satisfaction is an important component in maintaining commitment. Commitment is an important factor in getting a person to stay with their organization. Committed employees are more than likely to consent to organizational goals. Employees who remain committed to the organizational objectives, are more likely

Organizational commitment is one of the two individual outcomes derived from individual mechanisms like job satisfaction, stress, motivation, trust, justice, ethics, and learning and decision making. These mechanisms and outcomes can be found on the integrative model of organizational behavior (OB). Colquitt, LePine, and Wesson defined organizational commitment in their Organizational Behavior 5th Edition book as the desire of an employee to remain a member of the organization (p 64).

The value of human capital may be hard to measure, yet possessing the right people working together can help an organization meet its vision and goals.

Human capital plays a vital role in providing the organisation with a valuable competitive advantage; in addition a reward and pay system concerning the employment relationship, is often viewed as a key method in obtaining maximum human capital, and thus a central part of managing a business.

An organization 's human capital must be aligned to the business strategy so that every employee is focused on the same goal.

Different leadership organisations have different leadership styles that they have adopted in their operations. However it is up to an organization to make sure that the leadership style it uses contributes to the commitment of different stakeholders in an organization. Organizational commitment is one of the salient on going organizational issues faced by managers. Past literature has highlighted the importance of retaining committed employees as an aspect of survival for organization hence many forward thinking are striving to create a positive organizational climate in order to keep those good employees through various human resource initiative (Chew, J, &

Human capital plays a considerable role in the economic environments. It is not cash, assets, but it is people, which are the critical differentiators of a business enterprise (Fiz-enz, 2000). It is an organisation’s possess individual tacit knowledge (Nelson and Winter, 1982). There are four factors involved by human capital: genetic inheritance, education, experience and attitudes about life and business (Hudson, 1993). All of these factors are intangible and can be invaluable. Human Capital is a source of innovation and strategic renewal, such as improving personal skills, re-engineering new process or just daydreaming at the office (Hudson, 1993). According to Figure 1 (Bontis, 1998), Human Capital is about the intellect of human. It is an internal control and development

According to Massoud Ghorbanhosseini, in his article title The Effect of Organizational Culture, Teamwork and Organizational Development on Organizational Commitment: Mediating Role of Human Capital, organizations that

Many may argue that job satisfaction and organizational commitment are the same, but they are actually different.

The aim of the study was to explore Organizational Commitment in an Indian Organisation from the Private sector. OC is an extensive research topic in the field of OB and has been studied by various researchers as a variable related to behavior and performance of employees (Allen and Meyer, 1990).The employees were assessed on the three component model (TCM) employee commitment survey (Allen and Meyer, 1997). Based on the Three-Component Model (TCM) of commitment (Meyer & Allen, 1991;1997), the TCM Employee Commitment Survey measures three forms of employee commitment to an organization: desire-based (affective commitment), obligation-based (normative commitment) and cost-based (continuance commitment). The survey includes three well-validated scales, the Affective Commitment Scale (ACS), the Normative Commitment Scale (NCS) and the Continuance Commitment Scale (CCS). According to the three-component model (TCM) of organizational commitment (Allen & Meyer, 1990; Meyer & Allen, 1991), commitment can take multiple forms, each characterized by a different psychological state or mind-set. Affective commitment (AC) reflects an emotional attachment and desire to remain with the organization, normative commitment (NC) is experienced as a sense of obligation to remain, and continuance commitment (CC) reflects an awareness of the costs associated with leaving. All three forms of commitment tie an individual to the organization and decrease the likelihood of leaving, but their