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 1 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. 2 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. 3 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 4 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. 5 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 6 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. 7 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. 8 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. 9 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. 10 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. 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