Higher Organizational Performance through Employee Commitments
Vance (2006) cited in his book that Former Chairman and CEO of General Electric Jack Welch mentioned that regardless of the size of a company, the long-run success depends on the employees who believe in the mission, know-how to achieve them and are committed to it. As cited by Northouse (2019), scholars Guest and Beer et al, have emphasized employee commitments as an important element of HRM in any organization. It is the attachment, dedication and loyalty of an employee towards the company for the company he or she works. Lenovo CEO Yang Yuanging (2014) highlighted in an interview with HBR that the Commitment culture at Lenovo is one of the three main elements that they focus on to sustain a healthy corporate culture. Lenovo has grown to No. 1 in global PC sales.
Challenges with Employee Commitments
As much as employee commitment is good for an organization, it can also become a problem if both management and employees do not manage it properly. The workaholic could be disguised as commitment and this would lead to issues with work-life balance, relationships and mental stress. As Guest (1987) questioned the term Commitment to what? As it can be to the Organization or the job itself or family commitment, not all the commitments are better for the organization.
Developing Healthy Employee Commitments
Communicating management aims and
values, emphasizing that commitment is the responsibility of both management
and employees, creating a culture of openness and honesty and building positive psychological
contracts are some of the key strategies that Armstrong (2014) suggested.
Employee commitments can be further enhanced by promoting clear and transparent
communication, improving job satisfaction, creating a sense of belonging,
employee development and management commitment to employees (Jay, 2020)
Conclusion
Amidst all the challenges that an
organization faces and with the increasing internationalization of employees, HR
department and management are not able to micro-manage each and every individual
employee to ensure employees’ contribution to the company. It is important for Organization
to develop a good commitment culture thereby employees will contribute and
perform beyond expectations with less or no supervision and give crucial competitive
advantage. Employee commitment is pivotal for the current situation due to increasing the trend of remote-working as a result of the Covid-19 pandemic.
References
Armstrong, M., 2014. Armstrong's Handbook of
Human Resource Management. 13th ed. London: Kogan Page Limited.
Guest, D.,
1987. Human resource management and Industrial Relations. Journal of
Management Studies, 24(5), pp. 503-521.
Harvard
Business Review, 2014. I cam back because the company needed me. The HBR
Interview, pp. 105-108.
Jay, S.,
2020. Organizational Commitment: 7 Ways HR Can Contribute. [Online]
Available at: https://www.digitalhrtech.com/organizational-commitment/
[Accessed 7 August 2021].
Magnificent
Online, 2020. Workaholic-Personality. [Online]
Available at: https://magnificentonline.com/workaholic-personality-workaholism/
[Accessed 7 August 2021].
Vance, R.
J., 2016. Employee Engagement and Commitment. Alexandria: SHRM
Foundation.
Companies that use a performance management system have the ability to define and map out corporate goals and strategies to achieve them which can be easily shared with individual employees. Employees have an opportunity to create their own career goals, based on organizational objectives, and over time, they can track how their contributions help move the needle on larger goals. Employee engagement is significantly correlated with positive organizational outcomes such as productivity, customer satisfaction, and reduced absenteeism. Good job Fayaz.
ReplyDeleteHello Fayaz. There are some factors that effect to the Employee commitments. those are locus of control, age and tenure in organization, task self-efficacy, culture, job satisfaction, and employee engagement. Employee commitment is very important to organization because committed employee bring added value through their determination, awareness of quality and proactive support.
ReplyDeleteCommitment to work or work commitment is the level of enthusiasm an employee has towards his/her tasks assigned at a workplace. It is the feeling of responsibility that a person has towards the goals, mission, and vision of the organization he/she is associated with. so improvement of employee commitment is the best investment that a business can do.
ReplyDeleteGood article Fayaz.
ReplyDeleteAs you stated in this article, there is a direct relationship between employee commitment and organizational performance. If I add more, It is necessary for every organization to have a full level of employee commitment in order to achieve outstanding long-term performance.When employees work in a team, they act like entrepreneurs, and each member of the team tries his or her hardest to prove that he or she is the best amongst all others. These things increase their level of commitment in the organization, which ultimately improves the organization's performance.In the past, organizations provided job security to their employees in order to increase their commitment and productivity. Higher levels of employee commitment in the organization for individual projects or to the business are regarded as a major cause of improved organizational performance, which leads to organizational success.
Committed employees bring added value to the organization through their determination, proactive support, relatively high productivity and awareness of quality. work commitment is defined as the level of enthusiasm an employee has towards tasks assigned at a workplace. It is the feeling employee has towards the goals, mission, and vision of the organization. This results in superior business performance, which in turn results in increased profitability, productivity, employee retention and overall improvement in the work atmosphere.
ReplyDeleteCommitment is the experience of bond employees to their organization. In general, dedicated employees in their organization often feel connected , feel as an organic part, and understand the goals of the organization.
ReplyDeleteCommitment culture is more concern about Empathy. Few research details of US reflects that "when employees are more empathic, the productivity will naturally increases. Also performance is 20% better than others and 87% less likely to leave the organization".
ReplyDeleteVery good topic and explanation Fayaz, committed employees give a big input to organizations since they execute and act on accomplishing organization's goals. Additionally, employees who are committed to their organization are happy to be members of it, trust in and feel good about the organization and what it stands for, and aim to do what is good for the company. Surprisingly, some new findings proposed that stated commitment is basically unrelated to performance. In fact, there is positive and notable relationship between commitment to supervisors and performance.
ReplyDeleteCommitted employees are becoming a more valuable asset to organizations, as employee commitment is critical to the growth of the organization's performance. In today's environment, every organization seeks to improve its performance in order to compete effectively with market forces. Employee commitment assists the organization in accomplishing goal.
ReplyDeleteGood article Fayaz. Committed employees will increase productivity, engagement, and morale and also it will increase an employee's chances of staying with that organization for a longer period.
ReplyDeleteCommitted employees are progressively turning into an esteemed resource in the association since the representative responsibility has the significant influence in the development of the association execution. In the current day climate, each association needs to expand its presentation for adequately confronting the market influences. The worker responsibility helps the association in this target. Indeed, It is vital and a critical component in the hierarchical achievement.
ReplyDeleteEmployee commitment and Organizational performance has positive relationship. Employee commitment can be enhanced by motivating the employees through fulfilling their basic needs first gradually fulfilling according to the Maslow's Hierarchy of needs theory. Thereby employees integrity and loyal towards the organization is tightly bound and it will reflect through his/her productivity. Higher productivity means higher the outcome and higher the revenues. Higher revenues means higher returns for the stakeholders. Overall the organizational performance is also enhances through committed workers.
ReplyDeleteMeantime every organization should evaluate employees who are not motivated and who are disrupting the other subordinates and not aligning in with the organizational goal and take necessary actions to align them with the company goal or seek replacement to ensure successful end result. Thank You.
Author has explained about the connection between employee commitment towards organizational performance. Well a committed employee plays a major part in contributing his efforts and performance in order achieving set individual and overall objective. When appropriate strategies are deployed it will lead to achieve overall organizational performance. Well explained.
ReplyDeleteUseful topics.
ReplyDeleteResearch has shown that organizations with high employee engagement excel in customer satisfaction and achieve high productivity and operational efficiency, as well as profitability with the additional side effect of safer, healthier employees with lower absenteeism and reduced turnover.
Really Informative Fayaz, as explained performance management is an extremely important tool for any organization it will give all of the stakeholders of the business a very comprehensive idea on the organizational performance whilst the proper monitoring & management would help to increase the organizational productivity in the long run.
ReplyDelete