Organisational Values - its significances on employee commitment

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ORGANISATIONAL VALUES AND ITS SIGNIFICANTS ON EMPLOYEE
COMMITMENT– A CONCEPTUAL FRAMEWORK
S.JailapDeen1 and Dr.P.Amuthalakshmi2
ABSTRACT
Well motivated and committed employees with high levels of job involvement are considered to
be the most important asset for any organization which serves as key to quality and productivity
improvements. There are many techniques followed by different organisation to enhance the
employee commitment through “Perceived Organizational Values”. This paper endeavor’s to
analyze the notion of organizational commitment, to find out its strengths and opportunities in
organizational values and to determine the forces involved upon it.
1. INTRODUCTION TO ORGANISATIONAL VALUES
“Values influence every aspect of our lives: our moral judgments, our responses to others, our
commitments to personal and organizational goals. Values set the parameters for the hundreds
of decisions we make every day.” - (Barry Z Posner, James M Kouzes and Warren H
Schmidt - 1985). Organizational values are principles that guide an organizations thinking and
actions in terms of dimensions like Humanity, Vision, and Bottom-Line values. When
organizational values “spirit’ in the workplace is enticing, it will help organizations achieve their
full potential by encouraging those with similar values to come to work each day.
Beliefs, morals, principles and ethics are all words often used to describe values. When
considering organizational values these same words are often found in management literature,
but the list is extended to include words like commitments, promises and pledges. Ravasi and
Schultz (2006) define ‘Organizational value as a set of shared mental assumptions that guide
interpretation and action in organizations by defining appropriate behavior for various
situations’. Gouillart and Kelly (1995) define “Values and beliefs guide the decision of
corporate life. It is the leader’s task to ensure that they are aligned and consistent, rather than
mixed and contradictory”.
1
2
PhD Scholar – Madras School of Social Work
Asst.Professor and Research Guide – Madras School of Social Work
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2. VALUES AND THEIR SIGNIFICANCE
Any organisation which espouses particular values would underpin their Vision (M. Rokeach 1973).

To construct attachment towards work and organisation among the employees

To create professional attachment among the employees

To raise motivational level among the employees

To provide a framework for how one treat another at work.

To provide a framework for how one treat their customers.

To provide a framework for achieving the vision and increasing the effectiveness of the
organisation.

To create an environment conducive to job satisfaction as well as finding work, which is
exciting and challenging.
2.1. Results of Shared Organizational Values
Diagram 1.Embedding Organizational Values – (D M Rousseau - 1990)
Diagram.1 elucidates shared organizational values manifests as employee commitment,
organizational effectiveness and organizational development.
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3. DIMENSIONS OF ORGANISATIONAL VALUES
Allen and Meyer (1990) in their study of 256 employees from two manufacturing firms and the
results did show that different clusters of organisational values (viz., Humanity Values, Vision
Values and Bottom line Values) predicted different components of commitment (viz., Affective
Commitment, Normative Commitment and Continuance Commitment). McDonald and Gandz
(1991) came up with four clusters of values, such as Humanity, Vision, Adherence to
Convention and Bottom-Line Values. Doss (1997) considered values as desires and standards
respectively. Meglino and Ravlin (1998) in their study the relationship between the personal
values and attitude have been extensively studied and the results did show that there is a strong
link between organisational values with attitude like organisational commitment (Viz., Affective
Commitment, Normative Commitment and Continuance Commitment). The study made by
Finegan (2000), in her study using the clusters of values suggested by McDonald and Gandz
(1991) found that ‘Affective’ commitment was predicted by the values comprising the
‘Humanity’ factor (Courtesy, Consideration, Cooperation, Fairness, Forgiveness, Moral
integrity), ‘Normative’ commitment by the ‘Vision’ factor (Chances for development, initiative,
creativity, openness), and ‘Continuance’ commitment by ‘bottom-line’ values (Logic, economy,
experimentation, diligence).
Based on the above information’s, this paper, attempts to extend the findings of Finegan (2000),
and proposes a conceptual research model to analyze the notion of organizational commitment,
to find out its strengths and opportunities in organizational values and to determines the forces
performing upon it.
4. CONCEPTUALISATION OF ORGANISATIONAL VALUES AND EMPLOYEE
COMMITMENT
Organizational Values reflects in three Components of commitment namely affective,
continuance and normative commitment (Allen and Meyer- 1990). Common to these three
approaches is the view that commitment is a psychological state that characterizes the
employee’s relationship with the organization and has implications for the decision to continue
membership of it.
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4.1. Affective Commitment
Affective commitment refers to the employee’s emotional attachment to, identification
with, and involvement in the organisation (O’Reilly and Chatman -1986). The degree to
which an individual is psychologically attached to an organisation through feelings such
as Courtesy, Consideration, Forgiveness, Moral Integrity, Empathy, Respect (Jaros et al
- 1993). Employees with a strong affective commitment continue with the organisation
because they want to.
4.2. Normative Commitment
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 organisation (Wiener - 1982). This kind of employee’s behaviour could enhance their
commitment level only when the management is ready to offer values such as
Development,
Initiative,
Creativity,
Openness,
Teamwork,
Empowerment,
and
innovativeness
4.3. Continuance Commitment
Continuance Commitment is the desire to remain a member of the organisation (Mayer
and Schoorman - 1992). This kind of behaviour could enhance their commitment level
only when the management recognizing employees abilities, aptitude and skill, could
motivate the employees to work better and better.
BOTTOM
LINE VALUES
Continuance
Affective
Normative
HUMANITY
VALUES
VISION
VALUES
COMMITMENT
LEVEL
Diagram 2. Three Pillar Model of Commitment
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5. DIMENSIONS OF HUMANITY VALUES
Humanity values are the fundamental standards to understand and realize the efficacy of a
workforce by providing basic human ideals. These resources absorb an imperative role in
creation of admirable exertion among the employees to perform skillfully to enhance their
affective commitment level. The diagram is the catalog of its dimensions according to (Jaros et
al - 1993).
Dimensions
Of
-
Courtesy
Consideration
Forgiveness
Moral Integrity
Empathy
Respect
Lead Towards
Enhanced Employee’s
Affective
Commitment
Humanity
Values
Diagram 3.Process of Humanity values to achieve enhanced Affective Commitment
5.1. Courtesy
Showing of politeness in one's attitude and behavior, a polite speech or action, with the employee
could create optimistic environment, which in turn, enhance their commitment.
5.2. Consideration
Showing his kindness towards employee’s expectation, such as work allotment, family problem,
leave, and during their personal emergencies, could make the employee delighted and obviously
that can improve their work performance which ultimately leads to enhance their commitment.
5.3. Forgiveness
Forgiveness is the renunciation or cessation of resentment, integration or anger as a result of a
perceived offense, disagreement, or mistake. Mustering up genuine compassion for those who
have wronged and this understanding may perhaps increase the affection towards their work,
which in turn helps excel in their commitment.
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5.4. Moral Integrity
Integrity is regarded as the honesty and truthfulness or accuracy of one's actions. If the
management is Honest and open to their employees towards their salary, promotion, increment
and other benefits, indeed the employees consistently prove their work performance and
commitment.
5.5. Empathy
Empathy is the ability to experience and relate to the thoughts, emotions, or experience of others.
Empathic emotion plays an important role in creating paternalistic climate of support and
protection to promote successful job performance.
5.6. Respect
Maintaining a comfortable and fair work environment, regardless of an individual's visible
differences (such as gender, race, age and physical abilities) or non-visible differences (such as
profession, education, family status, religious beliefs, professional skills or sexual orientation), is
dedicated to treating all employees with dignity and respect.
6. DIMENSIONS OF VISION VALUES
Vision value is the key components of 'strategic planning' for company’s future, include an
understanding of the firm's vision, outlines what the organization wants to be, or how it wants
the world in which it operates to be. It should resonate with all members of the organization by
providing values related to professional attachment and opportunity for organizational
development. The elements of its dimensions scheduled in following depiction according to
(Wiener - 1982).
Dimensions
Of
Vision
-
Employee
Development
Initiative
Creativity
Loyalty
Teamwork
Empowerment
Lead
Towards
Enhanced Employee’s
Normative
Commitment
Values
Diagram 4. Process of Vision values to achieve enhanced Normative Commitment
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6.1. Employee Development
Employee development as a partnership between an employee and employer, aided by strong
support from our Human Resources organization. Career development opportunities and
programs that promote personal and professional growth opportunities for them to make a real
impact may perhaps increase their commitment level.
6.2. Initiative
Employees are made to feel free to express their views or exercise their initiative. Companies
achieve high levels of commitment not by telling employees what or how to think, but by
listening to what they have to say.
6.3. Creativity
Creativity refers to the phenomenon whereby a person creates something new (a product,
solution, artwork, literary work, joke, etc.) and that will add some kind of value to the company.
When employees are given chance to express their new ideas towards their development and
company, may perhaps enhance their commitment level.
6.4. Loyalty
This is a very essential skill that a leader has to possess and perform. Building trust between the
employer and employee will generate mutual commitment and loyalty to leading to sustained
effective performance and financial productivity.
6.5. Team Work
Team work can enhance productivity while giving employees a more active role in decisionmaking and a greater opportunity to be involved in meaningful work. Which in turn can motivate
the employees to work with full fledge.
6.6. Empowerment
Providing Continuous up gradation on technology, processes, and systems may perhaps
empower employees to cope with competition and challenging environment and generate
organizational commitment.
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7. DIMENSIONS OF BOTTOM-LINE VALUES
This is also most important organizational value, which motivate the employees by providing
support for employees to balance the demands of work and home life. The diagram is the catalog
of dimensions of this organizational value according to (Mayer and Schoorman - 1992).
Dimensions
Of
Bottom line
Values
-
Flexibility
Employee
Relationship
Job Security
Employee
Motivation
Communication
Cooperation
Lead Towards
Enhanced Employee’s
Continuance
Commitment
Diagram 5. Process of Bottom line values to achieve enhanced Continuance Commitment
7.1. Flexibility
A supportive, flexible work environment which gives employees more flexibility and control
over their work as an important means to achieve greater work/life balance and enhanced
productivity. The elements of this dimension include balancing their responsibilities for work,
family, education and other commitments.
7.2. Employee Relationship
Employee Relations involves the commitment between the Company and its Employees to foster
a respectful work environment where Employees bring their best to work, are committed,
perform at their best levels and act with integrity in all activities. The Company which is
committed to maintaining employee/employer relationships that support the Company’s business
goals, adhere to fair employment practices, motivate Employees and ensure healthy Employee
commitment.
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7.3. Job Security
Assurance that an employee has about the continuity of gainful employment for his or her work
life. People constantly fear their jobs and loose their motivation and commitment to work.
Employees need to be reassured that their jobs are secure; otherwise they won’t exert as much
effort in achieving organizational objectives.
7.4. Employee Motivation
Motivation plays an important role in a healthy employee relationship which leads to an
increased level of satisfaction among the employees and in turn an increased productivity.
Employee needs to be motivated from time to time to avoid a dip in his performance and for him
to remain loyal towards the management. Motivation acts as a catalyst for organization’s success
and helps the individuals to remain productive and deliver better results every time.
7.5. Employee Communication
Communication is more than a buzz word for successful managers and their organizations. The
absence of a coherent communication program can lead to significant increases in stress,
perceived uncertainty and absenteeism and significant declines in job satisfaction, commitment
and perceptions of the company’s trustworthiness.
7.6. Cooperation
Is the process of working or acting together, Roots of human cooperation may be found in
empathy, if the employee’s felt that they have treated fairly and adequately by their employer,
may perhaps amplify their work performance.
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8. CONCEPTUAL MODEL ON ORGANISATIONAL VALUES
It is clear from the above discussion that, a company’s health determined through its energized
workforce, who not only realize the mission of the organisation but also make strenuous efforts
to achieve it. This kind of work environment is possible, only when a company has sturdy
organisational values. The below process, help us to understand the contribution of
organisational value to employee commitment for organisational development.
Affective
Commitment
Shared
Organizational
Values
Humanity
Vision
Bottom line
Normative
Commitment
Organizational
Development
Continuance
Commitment
Diagram 6. Linking Organisational Value to Employee Commitment for Organisational Development
The following can be hypothesized from Diagram 6.
(i)
Employees “Affective” commitment can be influenced by Humanity values.
(ii)
Employee “Normative” commitment can be determined by Vision values.
(iii)
The bottom line values are amicably associated with employees Continuance
Commitment.
By analyzing the above hypothetical statements one can substantiate that affective,
normative and continuance commitment are positively associated with humanity, vision and
bottom line values respectively. Perhaps this would construct the personal and professional
behavior of the employees which consecutively determine the employee commitment and
organizational development.
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9. CONCLUSION
To succeed in the face of increasing competition, a business needs improved productivity at all
levels. This need requires the enthusiastic commitment of all employees that can only be
achieved through better Organizational Values. Therefore, with this theoretical background it
may be concluded, that the treatment of employees, rather than rewards or the perceived fairness
of the organizational system, may be more important in the manifestation of organizationally
desirable behaviors. If management applies procedures and treats employees fairly, they will
directly influence employees’ commitment and organisational development.
10. REFERENCES
1. Allen N J & Meyer J P (1990), “The Measures and Antecedents of Affective
Commitment, Normative Commitment and Continuance Commitment to Organisation”,
Journal of Occupational Psychology, 63 (1): 1-18.
2. Barry Z Posner, James M Kouzes and Warren H Schmidt (1985), “Shared values make a
difference”, Human Resource Management, 24(3) pp293-309.
3. Doss, J.J. (1997), “Work Values: An Integrative Frame and Illustrative Application to
Organisational Socialization”, Journal of occupational & Organisational Psychology,
70(3):219-40.
4. Finegan, J.F. (2000), “The Impact of Person-organisational values on organisational
commitment”, journal of occupational and organisational psychology, 3(2):149-69.
5. Gouillart, F.J. & Kelly, J.N. (1995) “Transforming The Organization”, McGraw-Hill,
United States
6. McDonald, P, Gandz T.(1991), “Identification of values relevant to business research”,
Human Resource Management, 30(2)”217-36
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7. Meglino B M & Ravlin E C (1998), “The Individual Values in Organisations: Concepts,
Controversies and Research”, Journal of Management, 24(3):351-89.
8. Ravasi, D. and M. Schultz (2006) “Responding to Organizational Identity Threats:
Exploring the Role of Organizational Culture”, Academy of Management Journal.
9. Rokeach, M (1973), “The Nature of Human Values”, New York, Free Press.
10. Rousseau, D M (1990). “Assessing Organizational Culture: The Case for Multiple
Methods,” in B Schneider (Ed.), Organizational Climate and Culture, San Francisco,
CA: Jossey- Bass, 153-192.
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Management Review, 7:418-428.
12. O'Reilly CA, Chatman J (1986). Organizational commitment and psychological
attachment: The effects of compliance, identification and internalization on prosocial
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