Importance of Organisational Commitment for Organisation Growth

ESSAY

TABLE OF CONTENTS
ESSAY.............................................................................................................................................1
INTRODUCTION...........................................................................................................................3
Organisational commitment importance for organisation...............................................................3
Affective Commitment................................................................................................................4
Continuance commitment............................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Organization commitment is define as employee’s psychology attachment towards the
organisation. It explains reason behind retention of workforce in the organisation and different
factors affecting growth of workers as well as work in the organisation. The report highlights
organisation commitment and importance of it. Report describe affective and continuance
commitment and also explain organisation theory and leadership in two of this commitment.
Organisational commitment importance for organisation
Organisation commitment refers to workforce psychological attachment to the
organisation. It explains if the employees are willing to continue with organisation or migrate to
another organisation. It defines different condition in the organisation which effect employee’s
productivity, quality and effectiveness and all of this relation to organisation’s growth. In
developing economy of all around the world and government policy and laws help in the growth
of employees satisfaction and personal development and also increase good-will of the
organisation in supporting employees in their personal growth. However, it will become difficult
for the organisation to manage employee retention as more and more company offers
competitive price for talented and skilled workers. This competitive price decrease talented and
skilled workforce in the organisation and also effect on quality, productivity and efficiency
(Satardien, Jano and Mahembe, 2019). Another consequence company’s expenditure increase in
developing and training program and on opposite employee’s increasing demand of competitive
price and facilities decrease profit of the organisation. Loyalty of employees plays significant
role in the growth of organisation. Company can manage retention by increasing job satisfaction
level as money is not the way of growth but the factors like future opportunities, working hours,
recognition, reward and award also help in gaining loyalty of workforce which helps in the
growth of organisation. Leadership also play significant role in the growth and employee
retention in the organisation for example biased and self centred leader will not able to manage
workforce migration in the organisation. Using Transformational leadership, leaders can help in
increasing innovation and creativity of the employee and hence improve job satisfaction level
which decrease workforce attraction towards other organisation. There are various organisation
behaviour theory which helps in identify employee satisfaction level in the organisation for
example Reinforcement theory helps in observing attitude and behaviour of the employees in the
organisation which helps in making changes for gaining employee’s loyalty. Below paragraph