11-10-2016, 10:22 AM
A Study about Employee Commitment and its impact on Sustained Productivity in Indian Auto-Component Industry
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ABSTRACT
urpose: The business organizations are aware of the
importance of employee commitment and its role in
motivating employees. The purpose of this study was to
identify the impact of Employees’ Commitment on sustained
productivity in Auto-component Industry in India (Denso).
Design/ Methodology: This paper is based on a review of the
academic research papers and survey. The primary data has been
collected through questionnaires. The secondary data is being used
for identifying the commitment related problems of Indian auto
component industry. The three commitments have been taken as
independent variables and sustained productivity as the dependent
variable.
Findings: The results of the study indicate that the Employees
Commitment (Affective, Normative, continuous) are significantly
related to sustained productivity in Auto component industry. The
research findings reveal that there exists positive relationship
between the three commitments- affective, continuance and
normative commitment and sustained productivity of the
organization. It has also been proved from the results that there
exists high degree of correlation between the three independent
variables and sustained productivity the dependent variable. These
outcomes in turn are associated with guiding the top management
for working towards increasing commitment level.
Practical Implications: We have a big pool of employees employed
by the auto-component industry. Due to higher quality
consciousness and increased competitiveness the concept of
sustained productivity becomes important . From the findings it has
been proved that sustained productivity is strongly related to
employees commitment. So, the sample organization has to focus
towards increasing employee commitment. This shall have a great
impact and take the organization towards competitive edge..
EUROPEAN JOURNAL OF BUSINESS AND SOCIAL SCIENCES 35
Originality/value: This paper would be of value to researchers
seeking information on how commitment and sustained productivity
are linked. This is original contribution and not published anywhere
else..
Keywords : affective commitment, normative commitment,
continuance commitment, sustained productivity.
INTRODUCTION
In today’s competitive world every organization is facing new challenges regarding sustained
productivity and creating committed workforce. Now a day’s no organization can perform at peak
levels unless each employee is committed to the organizations objectives. Hence, it is important to
understand the concept of commitment and its feasible outcome.
A large numbers of studies have been conducted to investigate the concept of organizational
commitment (OC). Still, commitment is the most challenging and researchable concept in the fields
of management, organizational behavior. There have been several measures and definitions about
OC. In the past decade, Meyer and Allen’s (1991) developed a three- component model of OC
which has been the dominant framework for OC .This three-component model is based on a more
comprehensive understanding of OC. The three-component model consists of:
(a) Affective commitment (AC) is the emotional attachment to one’s organization.
(b) Continuance commitment (CC) is the attachment based on the accumulation of valued side bets
(pension, skill transferability, relocation, and self-investment) that co-vary with organizational
membership.
© Normative commitment (NC) is the attachment that is based on motivation to conform to social
norms regarding attachment.
The aim of this paper is to identify the impact of OC (which comprises of AC, CC and NC) on
sustained productivity in auto-component industry in Greater Noida. It is vital as suggestions may
be given to the auto-component industry in order to bring an awareness of the commitment level of
employees.
The objectives of the study are:
To identify effect of Affective commitment (AC) on sustained productivity
Continuance commitment (CC) is significantly related to sustained productivity
To know the impact of Normative commitment (NC) on sustained productivity
To study the impact of Employees’ Commitment (EC) on sustained productivity.
Review of Literature
The concept of organizational commitment derives from an article “The organization Man” written
by Whyte in 1956. Commitment comes into being when a person, by making a side bet, links
extraneous interests with a consistent line of activity. Grusky (1966) relates commitment with “The
nature of the relationship of the member to the system as a whole”. Kanter (1968) defines
commitment as “The willingness of social actors to give their energy and loyalty to social systems,
the attachment of personality systems to social relations, which are seen as self expressive”.
Brown (1969) categorize commitment as (1) includes something of the notion of membership; (2) it
reflects the current position of the individual; (3) it has a special predictive potential, providing
predictions concerning certain aspects of performance, motivation to work, spontaneous
contribution, and other related outcomes; and (4) it suggests the differential relevance of
motivational factors .
According to Hall et al. (1970) “The process by which the goals of the organization and those of the
individual become increasingly integrated or congruent” is commitment. Salancik (1977) said
commitment is that “a state of being in which an individual become bound by his action and through
these action to beliefs that sustain the activities of his own involvement ”.Mowday et.al in (1979)
defined commitment in such a way “… The relative strength of an individual’s identification with
and involvement in a particular organization ”. Scholl (1981) described “…a stabilizing force that
acts to maintain behavioural direction when expectancy/equity conditions are not met and do not
function.” Allen & Mayer (1990) claim that commitment is “… a psychological state that bind the
individual to the organization”. According to the Meyer & Allen (1997) commitment “ is a
psychological state that characterizes the employees relationship with the organization and has
implication for the decision to continue membership in the organization.”
From the above definition it is clear that commitment is different from motivation or general
attitudes it can lead individuals to behave in a way, from the prospective of neutral observer, might
seem in contrast to their own self-interest. The researchers are considering the definition given by
Allen and Meyer for the study.
Dimensions of Organizational Commitment
Meyer and Allen (1984,1990, 1991) described three dimensional model of commitment: Affective,
Continuance and Normative (as discussed earlier). He said Affective Commitment is based on how
much individual ‘want’ to remain in the organization. Continuance Commitment refers to an
awareness of the costs associated with leaving the organization. Continuance commitment based on
individual having to remain with the organization lost their previous investment before gone.
Normative Commitment reflects a feeling of obligation to continue employment. Employees with
a high level of normative commitment feel that they ought to remain with the organization.
Affective commitment: Several studies, describe the term commitment as an affective orientation
of the employees toward the organization. Employees with affective commitment continue service
with organization because they want to do so. Kanter (1968) describe cohesion commitment as the
attachment of an individual’s found of affectivity and emotion to the group. Affective commitment
to the goal and values and to the organization for its own sake, a part from its purely instrumental
worth argues by Buchanan (1974). Porter and Mowday et al. (1979) describe affective approach as
“the relative strength of an individual’s identification with and involvement in a particular
organization. Therefore, an individual who is affectively committed or emotionally attached to the
organization, (i) believe in the goal and values of the organization ,(ii) works hard for the
organization and (iii) intend to stay with the organization (Mowday et al.,1982). Meyer & Allen
PP. 34 – 51
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(1996) correlates affective commitment with work experiences where employees experience
psychologically comfortable feelings (such as approachable managers), increasing their sense of
competence (such as feedback). The development of affective commitment involves recognizing the
organization’s worth and internalising its principles and standards (Beck & Wilson 2000).
Continuance Commitment: When employees enter into the organization, they are bound to
maintain a link with the organization or committed to remain with the organization because lack of
alternative opportunity or awareness of the costs associated with leaving the organization. The cost
associated with leaving includes attractive benefits, the threat of wasting the time, effort spends
acquiring, , disrupt personal relationship. This was more appropriately defined by Allen & Meyer
(1990) he proposed that continuance commitment develops on the basis of two factors: (1) number
of investment (side – bets) individuals make in their current organization and (2) perceived lack of
alternatives. These investment can be anything that the individual considers valuable such as
pension plans, organization benefits, status etc that would be lost by leaving the organization, which
makes them stay with their current employers (Meyer & Allen, 1984) Similarly, lack of
employment alternatives also increases the perceived costs associated with leaving the organization
and therefore increase the continuance commitment of employees to the organization (Allen &
Meyer, 1990). Kanter (1968) defined continuance commitment as “ cognitive – continuance
commitment as that which occurs when there is a profit associated with continued participation and
a cost associated with leaving". Somers (1993) suggest that continuance commitment can be subdivided
into high sacrifice commitment (“personal sacrifice” associated with leaving) and low
alternative commitment (“limited opportunities” for other employment).
The approach of continuance commitment develops when an individual recognizes that he or she
lose investments (the money they earn as a result of the time spent in the organization ), and/or
perceives that there are no alternatives or other course of action. When an individual’s have
awareness or consideration about expenses and threats linked to leaving the organization, this form
of commitment is considered to be calculative (Meyer & Allen 1997). Meyer and Allen (1991) also
specified that individuals who’s most important connection with the organization is based on
continuance commitment stay with the organization simply because they have no choice. Whereas
affective commitment is, where individuals remain with an organization because they want to and
because they are familiar with it and they have emotional attachment with it.
2.4.3 Normative Commitment: Normative commitment develops on the basis of earlier
experiences influenced by, for example family-based experiences (parents that stress work loyalty)
or cultural experiences (sanctions against “job-hopping”) (Allen & Meyer, 1996). Normative
commitment can increase through beliefs that the employees have that employers provide more than
they can give.
The normative aspect develops as individuals’ perception of their moral obligation to remain with a
specific organization, irrespective of how much status improvement or fulfilment the organization
gives the individual over the years (March & Mannari 1977).So normative commitment/obligation
seen as a result of the receipt of benefits (which encourages a feeling that one should reciprocate),
and/or acceptance of the terms of a psychological contract.