The formal composition of a company's leadership, which is responsible for tasks and responsibilities that enable management to control, coordinate, and motivate employees towards achieving a common goal (George ; Jones, 2005), is referred to as the organizational structure. There are generally five to eight different models that shape company structures, with each company having its own unique organizational model. When constructing an organizational structure, management considers factors such as productivity, communication, and performance (Ball et all, 2005).
Every business encounters situations that lead to limitations with customers. However, how the company handles these situations is crucial for its success. The customer acts as a judge for the organization, and the organization should prioritize customer satisfaction. In a Literature Review on Organizational Commitment, Meyer and Allen proposed a three-component model for understanding commitment
...in the workplace. Over time, their theory has become the most prevalent in the study of workplace commitment.
In this paper, we analyze Meyer and Allen’s theory, specifically the subsets of the main theory. Prior to exploring Meyer and Allen’s theory, we consider the collection of theories suggested by other scholars regarding organizational behavior. According to Meyer and Allen (1997), the organization of a company occurs at three distinct levels: affective commitment, normative commitment, and continuance commitment. Affective commitment is the initial aspect of the organization, formed through the employee’s positive experiences and emotional ties.
The positive experience at work leads to a desire by the employee to show respect for the company, which is known as normative experience. Continuance commitment occurs when an employee wants to stay with the company due to the costs associated with leaving the job. According to Meyers (1997), employe
turnover, citizenship, and tardiness are all important factors in measuring continuance commitment within a company. Meyer and Herscovitch (2001) define commitment as a force that binds an individual to take action that is relevant to one or more goals. Commitment is measured through three scales: affective, normative, and continuance.
Measuring organizational commitment is dependent on three key factors. The behavior exhibited within a company is crucial for fostering employee commitment. Furthermore, the evaluation of organizational commitment involves assessing behavioral aspects, including discretionary behavior. A notable example of discretionary behavior is referred to as the "focal behavior," which plays a significant role in measuring an individual's dedication towards their work or activity.
Voluntary behavior that measures one's behavior is known as discretionary behavior. According to Meyer (2006), commitment is a reliable indicator of organizational success, although it also encompasses negative emotions like pride and guilt. Improving performance within the organization can be accomplished by fostering work ethics. The concept of ethics is challenging to define since it varies depending on culture and environment.
In light of this, it would be pointless to advocate for a universal code of ethics. However, scholars persist in grappling with the challenge of defining ethics comprehensively. Essentially, ethical conduct aims to promote harmonious interaction among individuals within a social context. Ideally, our legal system should embody the ethical principles we consider relevant. Ethics relates to a set of moral guidelines that stem not from a mere obligation to follow rules, but rather from the pursuit of goodness, justice, and fairness.
The concerns about ethics encompass all aspects of society, ranging from the home to the workplace to religious institutions and more. In any situation where
people interact, it is essential to understand how to foster a positive environment for their interaction. With this in mind, measuring organizational commitment should consider the following factors: the mindset of individuals (e.g., affective, normative, or continuance), the specific target of commitment (such as the company in question), the behavior under study, and the cognition being measured and its impact. While many people believe that money is the primary driver for job turnover, recent research has identified other explanations.
According to Arphys ; Quinn (2008), effective management is crucial for employee retention in most workplaces. The main cause of high employee turnover is leadership and management of employees. Leadership is cited as the primary reason why people quit their jobs.
When there is a surplus of labor, employee turnover may be perceived as insignificant, but it actually signifies issues with management. Primarily, a significant number of employees leaving can be costly for the company. High employee turnover results in the expenditure of time, money, and effort required to find replacements. Numerous studies indicate that hiring a new employee typically costs over 1.5 times the salary of the departing employee. In today's job market, 25% of workers switch jobs within one year (Arphys & Quinn, 2008).
Examining the problem is unavoidable, as most human resource scholars acknowledge that it is impossible to completely avoid employee turnover. These experts also agree that a certain level of turnover is harmful to the company's success. Conversely, a low level of job turnover can actually benefit the company, as it brings in fresh perspectives, enthusiasm, competition, and ensures quality assurance. On the contrary, high levels of turnover constantly impede progress and jeopardize productivity.
Maxwell
(2008) suggests that it is advantageous for a company to identify the factors contributing to high turnout and to concentrate on the strategies for resolving these issues. Schein (2009) defines corporate culture as the shared beliefs, values, and behaviors embraced by a company. These principles and expected conduct form the basis for managing the organization. Company executives communicate cultural statements to employees. Typically, companies with a robust corporate culture tend to outperform those lacking such culture.
Organizations have the ability to shape a culture that aligns with their goals because culture is relative. Corporate culture manifests in different aspects, including communication, feedback, project coordination, and customer relations (Kotter, 1992). Furthermore, the structure of an organization can also reflect its corporate culture. While some companies prioritize servant leadership or teamwork, others prioritize performance evaluations or future objectives.
In many cases, corporate values for many companies are defined by the nature of competition and the desire to either conform or establish a unique identity (Schein, 2009). According to Schein (2009), the expression of a company's culture lacks significance without strong leadership. It is crucial for leaders of a company to be mindful of the desired culture within the organization and find strategies to ensure that all departments comprehend and align with this culture. Furthermore, leaders must serve as role models by exemplifying behaviors that reflect the company's objectives.
Customer Value Weinstein ; Johnson (1999) argue that successful companies not only satisfy customers, but also strive to please them. They claim that superior customer value involves consistently providing a business experience that surpasses customer expectations (p. 4). According to the authors, value serves as the primary strategic tool employed by multinational
corporations to distinguish themselves from competitors in the eyes of customers. In essence, values represent excellence based on desirability or usefulness (Weinstein ; Johnson, 1999, p. 5).
The concept of competency revolves around the behaviors necessary for individuals to successfully carry out their work. It emphasizes the input and resulting outcomes from individuals. Evaluating competency typically involves a defined competency structure, which is a framework outlining the company's expectations for each individual. Laske (2001) discusses learning and growth development as a means to assess employee satisfaction, productivity, and relationships quantitatively within the framework of a scorecard balance.
The learning and growth method focuses on developing employee behaviors and workplace skills. Strategic human resource management is vital for a company's hiring, firing, and compensation processes. A competent HR team that can meet the needs of employers and the company's objectives is crucial. Efficient human resource management reduces costs and effectively handles employee remuneration, compensation, and termination.
Companies aim to fulfill the requirements of their employees while cultivating a work environment that is both convenient and productive. It is essential for a company to establish an environment that fosters the success of its workers, as a pleasant work atmosphere enhances worker productivity. Additionally, besides promoting a healthy work environment, companies should also implement a recruitment strategy that seeks out the most promising candidates. Assessing the potential of prospective employees involves subjecting them to tests, skits, and situations that help determine their work ethics and morals.
A successful recruitment system can decrease the likelihood of termination, thus minimizing associated expenses. During my previous summer employment at a reputable blue chip company, my dedication to advancing the company's objectives was challenged. I strongly
advocated for our company's mission of environmental consciousness and genuinely believed that environmental sustainability was crucial for global improvement. Our recruitment policy focused on promoting employees who generated innovative ideas to foster environmental awareness.
Despite advocating for the use of electric-powered golf carts and suggesting a transportation system that would eliminate the need for private cars, the new management rejected all green initiatives. They cited high operational costs and the need for cost-saving measures. This lack of commitment from the company undermined my overall purpose.
Organizational commitment is a contentious issue in human resources as it affects 80% of employees in today's economy. The causes of this stress vary, with four out of five workers experiencing it due to work-related injuries or excessive expectations from management. Other sources include concerns about job insecurity and budget cuts. Work stress plays a significant role in an employee's decision to leave, but effective management strategies can reduce stress and decrease turnover.
Every employer is responsible for improving the workplace environment and fostering a friendly atmosphere. Organizations should establish a culture of continuous improvement and adapt to market demands in order to enhance work processes. This culture should involve embracing technology, promoting teamwork, and developing competency. By establishing these foundations, companies can reduce cycle times, defects, and errors while ultimately improving customer satisfaction.
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