This literature review explores various strategies that can enhance organizational commitment, including corporate culture, talent management, corporate social responsibility, employee retention, and leadership strategy.
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Running head: LITERATURE REVIEW Literature review
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Literature review “Strategies that are needed for organizational commitment” It can be said that organizational commitment has an essential role in managing the overall operations of the company in the highly competitive market. It has been said by Hanaysha (2016), that the commitment level of the employees has positively impacted in accomplishing the set goals. It is examined that committed employees in the workplace can help the company in attaining the targets maintained by the company. If there employee engagement then there are more chances of maintaining organizational commitment. It has been said by Harter that engagement of the employees is necessary to attain positive business performance. It is important for the companies to maintain high level of commitment so that loyalty and customer satisfaction can be maintained. Also, it can be said that low level of employee engagement has negative impact on the retention and dedication level of the employees. The companies that are performing well ensure that the employees are motivated and also committed towards the activities of the company. Employee engagement has positive effect on the commitment level of the employees towards the work. The employees who are engaged put more efforts to work hard and also they go beyond the expected work. It has been examined that the employees who are engaged towards the activities maintain the working environment and also they influence the physical and psychological well being at the workplace. Therefore, it can be said that organizational commitment has an important role in maintaining the working pattern of the employees and also it helps in accomplishing the positive outcome. It is one of the important factors that help to manage the entire operational activities of the company. It is examined byAbdul Rashid, Sambasivan and Johari (2003),that corporate culture is one of the important strategy that can help in maintaining the organizational commitment. The culture of the company has a great influence on the overall performance of the employees. It is seen that the culture of the organization affect the commitment level as the employees are influenced from the environment in which they conduct their operations. It has been said by Geiger that cultural values boost the commitment level of the employees and also it positively affect the relationships between commitment and performance. It is stated that corporate culture has the major affect on the organizational performance. Culture enhances the overall commitment level of the employees which also leads to the organizational success. The commitment level maintained by the employees also has the positive implications on the managers and consultants in relation to 2
Literature review management development and at last it boosts the performance of the managers in the workplace. The corporate culture is related with the set of values and beliefs that emphasizes on maintaining the core identity of the companies and also shapes the overall behavior of the employees. The corporate culture acts as the cognitive map that influences the overall values and norms of the individuals and also it enacts the events that takes place in the workplace. The higher commitment level in the workplace always leads to high performance. It has been stated that commitment helps in reducing the turnover rate and also the absentees in the workplace. The companies also ended by being more stable and also it enhances the creative workforce in relation to the overall operations. The organizational commitment was positively concerned with return on asset. This simply states that commitment level of the employees can impact the performance of the organization. It has also been found that the more committed employees emphasize more on the return on shareholders. Therefore, it can be stated that there is a link between the corporate culture and commitment. To maintain the commitment level of the employees it is necessary to maintain commitment among the employees. It is said byDeery and Jago (2015), that talent management is also one of the effective strategy that has helped the company in managing the different efficient employees. Talent management relates with the concept in which the skills and efficiency of the employees is maintained. It helps the employees to give their best and to complete the assigned task with high level of dedication and efficiency. This is one of the best techniques that can assist in maintaining the overall growth and also profits of the company. It is examined that if there is organizational commitment among the employees then they will work according to their talent and also they will try that their given targets are fulfilled in an effective manner in the workplace. If the employees who possess skills and have positive attitude work then it would be easy for them to retain them in the workplace. It can be easily said that management should emphasize on enhancing the talent among the employees so that positive results can be received. So, it can be stated that talent management is the effective strategy that should be employed by the management so that it could be easy to boost the engagement level of the employees towards the assigned task. According toKima, Songb and Leec (2015),to maintain the commitment level in the company the emphasis should also be on the corporate social responsibility. If corporate social 3
Literature review responsibility is taken into consideration then the employees will manage the activities according to the expectation level of management. In this article, the example of hospitality sector is given in which the companies emphasize on maintaining the commitment level so that customer satisfaction can be boosted. There are four different factors in context to corporate social responsibility and the factors are economic, legal, ethical and philanthropic responsibility that assist in enhancing the employees commitment towards the organizational operations. The paper highlighted the survey in which there are 1000 workers who stated that their leaders motivate the employees to accomplish the benefits from the concept of CSR and also it assist in retaining the workers in the workplace. So, this is one of the important strategies that assisted to attain goals and objectives in the market. Aguenza and Som (2018)stated that employee retention is related with maintaining the commitment level of the employees towards the organization. It is analyzed that retention of the employees and engagement is important for the organization as it assist in aiming towards attaining the growth. The strategy of retention is the initial stage of recruitment that assists in maintaining the commitment level of the employees towards the work. If the employees who are dedicated towards the work are retained in the workplace then it will be beneficial for the company to enhance the organizational profits in the high level of competition prevailing in the market. Also, the next strategy that can help in building the employees commitment towards the work is motivation. The employees should be motivated towards the operations so that growth and profits can be maximized in the competitive business world. It is seen that the relation of the employees is important to be maintained so that employee’s productivity towards the assigned work can be enhanced. So, it can be said that retention can assist the employees to give their best and also it will positively impact on the overall growth of the company among the different competitors that exist in the company. In relation to organizational commitment, Atmojo (2015), stated that leadership strategy affects the commitment level of the organization. The article states that to maintain the commitment level among the employees, transformational leadership plays an essential role. The leadership has the capability that aligns the entire vision of the subordinates. It assists in satisfying the basic needs of the workers which can directly build the employees commitment level towards the assigned work. Therefore, it can be stated that leadership strategy is important to be considered 4
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Literature review by the higher authorities as it assist in maintaining the commitment level of the employees towards work and boost the dedication level of the employees in the overall assigned work. If there are effective leaders in the workplace then the activities will also be operated in a proper manner which will directly enhance the commitment level of the employees towards the activities. Effective leadership strategy assists the employees to consider the right decisions that are beneficial for them and also for the company. So, it can be said that leaders have the essential responsibility in building the commitment level of the subordinates in the workplace. It is concluded that there are different strategies that can help in building the commitment level of the employees towards the work. The strategies that help in boosting the organizational commitment are retention policy, leadership strategy, talent management and also the motivational strategy which can directly enhance the overall dedication towards the set goals and objectives in the competitive market. So, commitment level should be there so that employees can give their best towards the work and can also perform the activities with efficiency and high level of dedication. 5
Literature review References Abdul Rashid, Z, Sambasivan, M and Johari, J 2003, ‘The influence of corporate culture and organisational commitment on performance’,Journal of management development,Vol.22, no.8, pp.708-728. Aguenza, B. B and Som, A. P. M 2018, ‘Motivational factors of employee retention and engagement in organizations’IJAME. Atmojo,M2015,‘Theinfluenceoftransformationalleadershiponjobsatisfaction, organizationalcommitment,andemployeeperformance’Internationalresearchjournalof business studies,Vol. 5, no. 2, pp. 86. Deery, M and Jago, L 2015, ‘Revisiting talent management, work-life balance and retention strategies’,International Journal of Contemporary Hospitality Management,Vol. 27, No. 3, pp. 453-472. Hanaysha, J 2016, ‘Examining the effects of employee empowerment, teamwork, and employee training on organizational commitment’,Procedia-Social and Behavioral Sciences,Vol.229, pp. 298-306. Kima, J, Songb, H. J and Leec, C. K 2015, ‘Effects of corporate social responsibility and internal marketing on employees’ work attitudes’,WCBM 2015. 6