How to respond to this in 100 words. Organizational commitment refers to the degree of loyalty employees feel toward an organization (Randall 2023). In the field of industrial and organizational psychology, it is also known as the connection or attachment employees have with their organization. Organizational commitment and employee engagement are similar, but differ in one key way. Employees who are committed to their organization feel connected and attached, while engaged employees have extrinsic and intrinsic factors keeping them motivated to work. Employees can be committed to the organization and still be mediocre performers. Organizational commitment plays a role in many different aspects of managing people. It influences productivity, employee satisfaction, turnover, performance, culture, employee relations, and many other components of an organization (Randall 2023).

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
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Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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How to respond to this in 100 words.

Organizational commitment refers to the degree of loyalty employees feel toward an organization (Randall 2023). In the field of industrial and organizational psychology, it is also known as the connection or attachment employees have with their organization. Organizational commitment and employee engagement are similar, but differ in one key way. Employees who are committed to their organization feel connected and attached, while engaged employees have extrinsic and intrinsic factors keeping them motivated to work. Employees can be committed to the organization and still be mediocre performers. Organizational commitment plays a role in many different aspects of managing people. It influences productivity, employee satisfaction, turnover, performance, culture, employee relations, and many other components of an organization (Randall 2023).

     This is a very personal post for me because my organization, Memphis Light, Gas and Water, is currently undergoing a metamorphosis in organizational commitment as it relates to an unexpected dismal shift in employee morale and engagement. As a result of unprecedented product failures, unexpected departmental shifts and customer dissatisfaction, employee morale is very low throughout the division, which has caused the organization to perform below industry standards. The low morale has also caused a major exodus of tenured employees to retire from the company unexpectedly or leave abruptly, voluntarily or involuntarily. When people mention work attitudes, they are typically referring to job satisfaction, which is an appraisal of the perceived job characteristics, work environment, and emotional experiences at work (McShane 2022).

     The president of Memphis Light, Gas and Water has discovered when employees are dissatisfied with the conditions surrounding their work environment, either internal or external, their emotions and attitudes are negatively impacted, which causes their loyalty towards the company to change. When employees invest in a company, they want to feel secure in their investment. Consequently, the president has acknowledged that the employees of Memphis Light, Gas and Water, are his investment, and by this, he has incorporated daily sensitivity training to strengthen his organizational commitment towards his internal stakeholders (the employees). He also facilitates daily town hall meetings to inform employees of major organizational changes within Memphis Light, Gas and Water. In these meetings, he allows open dialogue between internal departments to voice various concerns, accolades, issues, and resolutions relating to our internal organizational culture as well as the external culture of our stakeholders, mainly the customers. As a result, our organizational commitment to Memphis Light, Gas and Water is beginning to shift for the betterment of the organization.

     In conclusion, organizational commitment and job performance have a direct correlation (Smyth 2022). Organizational commitment theory states that when employees are devoted or loyal to their company, they will work harder and smarter, improving overall job performance. Employers can use organizational commitment theory and organizational commitment psychology to boost morale and company loyalty. Doing so should also increase employee performance and decrease turnover in the long term, both earning and saving your business more money (Smyth 2022).

 

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