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MNG82001 Organisational Behaviour, Southern Cross University, Australia

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Question : Prepare a Literature Review on the Topic of ‘Strategies for Building Organisational Commitment’.

Answer :

1. Introduction (Relationship of organisational behaviour and commitment)

Various studies in the arena of corporate practice, in general, conclude engagement and satisfaction as different attitudes. In the light of new reviews, which consists of downsizing, globalisation, workplace diversity, acquisition and merger and others, organisational commitment has reappeared as a significant area of the study and concern. As per the prior investigation of Yousef (2017, p. 79), corporate responsibility suggests to the level to which a worker recognises with a purpose of an organisation, its objectives and thrives on maintaining membership in the company. Currently, it has been identified that employee mentality and behaviour can be impacted by various internal and external components and factors of a company, therefore, suggesting the change in organisational commitment. To shed light on the concept of corporate responsibility entirely, it is required to understand the different motives of workers who are committed to their companies. According to Demirtas & Akdogan (2015, p.69), an active commitment can be addressed to the worker's emotional bonding, involvement and identification with the company.

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On the other hand, Khan, Naseem & Masood (2016, p.141) have discussed that continuance commitment is underlined by an employee's motive to avoid the consequences of leaving an organisation. Additionally, Kim, RhouUysal & Kwon(2017, p.29) have emphasised that the normative commitment is referred to workers' moral obligation to continue with the company. As stated above, organisational commitment or characteristics of organisational commitment get impacted by internal factors like job satisfaction, rewards as well as external factors such as job opportunities available outside. Therefore, it could be said that personal and external factors collectively guide changes in an employee's work attitude and understanding with the organisation, and organisational behaviour studies critically examine these behavioural changes as they impact on the corporate productivity and success.

1.1 Leaders’ strategies for evolving organisational commitment 

As per the investigation of Supriyanto (2016), a leader can develop corporate responsibility through agreement, identification and internalisation stages. Compliance as the initial stage emphases on the worker accepting the impact of others primarily to benefit from them. This incident or behaviour is attached to the continuance commitment as stated above. The workers are ready in the company. (Farooq, Rupp & Farooq (2017, p.968) have noted that second layer, identification occurs when a worker receives influences from existing others to continue a satisfying part of the company. This stage is based on normative commitment and dimension.

On the other hand, studies of Supriyanto (2016) has pointed out that the success of internalisation occurs when a worker finds the values in the company and based on the active organisational commitment. It has been found out that if a company has over-committed employee, leaders should effort in making conditions conducive to search for corporate objective as well. Leaders should always work in building commitment and in shaping organisational behaviours by providing motivation, cross-functional operations, familiarisation of discipline, different ways of communication to the workers. According to Tian, Risku & Collin (2016, p.152), achievements of leaders' strategies in developing commitment is underlined by the capability of the leader in acknowledging different characteristics of workers, situational analysis and existing environmental conditions as well as the core of organisational behaviours.

1.2 Retention strategies to enhance organisational commitment

Retention strategies refer to motivate employees to stay in the company, to influence them to keep their relationship with employers. At the core of all the techniques and strategies of retaining employees is the communication and relationship built between employers and workers as well as among the workers themselves. Tanwar & Prasad (2016) have pointed out that if these relationships are not adequately maintained or are unkempt, then no policy can help to retain the workers. Additionally, each system should be implied considering these relationships. In other words, Aguenza & Som (2018) have said that one of the significant parts of a relationship's existence is to be focused and concentrated on the organisational relationship. Therefore, organisational commitment and evaluation of corporate behaviour is an essential part of retention procedure. Both the workers and employers should be focused on building relationships through motivation and connection between them.

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Referring to the five stages of commitment, Gupta & Sharma (2016) provided sensible approaches to developing responsibility that can be applied by managers and leaders. On the initial phase of "fit and belonging", a company should self-disclose to workers and ensure them that they are also part of the process. On the next dimension of "status and identity", leaders should work on making an organisational team, which workers are proud of. After that, managers could work on "trust and reciprocity" by ensuring the needs and interests of their workers before any decision making that are regarding them or the company (Chan & Lill, 2018). On the stage of “emotional reward”, the company must work on ensuring job satisfaction, work-life balance and others. The fifth dimension of financial interdependence suggests to most of all the compensation. Principles in the fifth dimension are simple. First, the company needs to offer the right price for respective works and the second point is fair policies for compensating and rewarding their workers.

1.3 Critical analysis of employee attitude towards organisational commitment 

It is significant to understand whether corporate responsibility depends on worker attitudes. Several reviews and researchers in this field have underlined that there is an essential connection between these two components. D’souza, Z., & Poojary (2018) have pointed out that organisational commitment is viewed as an in-depth belief in accepting the objectives, goals and values; a willingness to exercise considerable efforts on behalf of the company. On the other hand, Yahaya & Ebrahim (2016, p.199) have pointed out that a strong desire to manage membership in the company is also connected to the organisational commitment and employee attitudes.

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The concept of responsibility has been hypothesised from different perspectives. Form the behavioural view; organisational commitment has been investigated from the production of rewards or contribution exchange procedures among the employers and workers. It might be noted that as per the psychological perspective, organisational commitment is an addon and a type of communication or recognition of workers with a company where they work. A series of researches have identified that there is a productive relationship between organisational commitment and changing attitudes of workers that develop organisational success. D’souza, Z., & Poojary (2018) have presented that corporate commitment and corporate behaviour connects effectively with workers' and the company's capability to adapt to unexcepted events.

1.4 Ethical value: the structural blocks of individual differences in organisations

As per the investigation of Dailey (2012), moral values exist in an individual at an in-depth psychological level than working attitudes like engagement in jobs, job satisfaction, organisational commitment as they are an essential aspect of human behaviour. On the other hand, Schminke, Arnaud & Taylor (2015, p.731) have said that in working life and personal life application of values as “mental measuring sticks” to examine and judge the individual behaviours and the attitudes of others are varied. Several studies have pointed out that ethical values are lasting beliefs, which a code of conduct or end state of being is socially or individually acceptable on a different or converse mode of conduct as well as the end state of nature. Precisely, ethical values assist people in judging the right from wrong, evil from bad, immoral form moral and others in personal life as well as in the organisational environment.

According to Dailey (2012), as cited above, ethical values or value system helps in determining good form the bad, organisations try to impact and manage workers' behaviours as it directly supports ethical values in organisational practices. Then it follows that workers' values from the base for an ethical code of conduct of business operations. The light connection between ethical values in business operations and workers' values might lead various organisations to make mission, which lay out these ethical value-based connections. In the end, it could be said that ethical values are one of the strong underlying responsibility, which businesses play in the production of managerial style. Managers' and leaders' instrumental values regarding the effective way to perform operations shape their faiths regarding their workers' behaviours and motives.

1.5 Conclusion

This study has reviewed many perspectives of organisational behaviour including organisational commitment, ethical value and strategies of enhancing corporate responsibility. All the extensive studies and reviews have underlined that if regulatory commitment factors are less among workers, there will be complications in human resources in any company. Labour turnover and absenteeism rates will be developed as these two components have a direct connection with the organisational environment and commitment. Despite complexities and negative impacts of mismanaged organisational behaviours, this study also pointed out various theoretical aspects that help in demonstrating the concept of organisational commitment and relationship with corporate behaviour in detail.

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