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Impact of Supportive Leadership, Career Development, and Performance Based Rewards on Organisational Commitment: A Mixed Method Study

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Organisational Commitment

1. Introduction

Armstrong and Taylor (2014, p. 16) recognize human resource as the backbone of organization. He believes that they contribute in enhancing organizational performance and if motivated with right set of attributes within organizational policy framework than remarkable things happen organizations win employee loyalty and they would work hard with their sheer force to make organizational objectives a reality (p. 120).  Employee commitment to the organizational goals has remained a dilemma for many organizations. On of such researchers is Morieux who in his research in (2011)published in HBR discusses that employees are actively disengaged even with a formal management system and address it as enigmas that are still unresolved. This research explores the reasons behind the philosophy of employee commitment to the organization. Commitment to the organization plays imperative role in enhancing performance of the employees. 

Mowday, Porter, and Steers (2013) research the psychology of the employees and endeavours to develop a linkage of employee commitment with absenteeism and turnover. They further delineate that low commitment with organizational goals results into high rate of absenteeism of the employees, high turnover rate, and low performance etc. (Mowday et al., 2013). 

Success of the organizations depends on many factors and employee’s commitment is one of among them. Employee’s commitment helps organizations to achieve their goals and objectives. Therefore, employee’s satisfaction and commitment to their job is very imperative factor of human resource policy and practice. 

Organizations that want to achieve competitive advantage in their business world use to adopt effective employee engagement and commitment strategies as they believe that employee commitment can lead their company towards success.  Different authors or researchers have defined employee commitment in different aspects such as according to Azeem (2010) commitment is a state of mind which refer towards employee actions and beliefs that bound him to perform in certain way or with his full involvement, while according to  Bushra, Ahmad, and Naveed (2011) commitment is consent of the employee that he wants to contribute in company success rather than just acting as formal contractual of that company. Another definition of employee commitment refers that it is a psychological affiliation or relation of the employee with its organization (Mowday et al., 2013). 

Some factors impacting organizational commitment are found by Markos and Sridevi (2010) they in their research accentuate on certain factors that are elaborated here in present research. There are several factors which impact on employee’s commitment to their job. Every successful organization prefers to adopt such elements which contribute in enhancement of their employee commitment. These factors include: 

  • Creating friendly working environment for the employees
  • Building strong relationship with management, and peers
  • Proving employees work-life balance
  • Employee satisfaction regarding their career development 
  • Provision of sufficient opportunities for employees future development 
  • Effective teamwork environment
  • Management full support and fair performance evaluation system

In addition to this, literature analysis shows enhanced employee commitment provide several benefits to the organizations such as it help businesses in enhancing their performance, increasing their productivity, improving job satisfaction among employees, and lowering employee turnover and absenteeism ratio. Some other advantages of employee commitment include increase employee motivation, loyalty of employees to their organization, enhanced employee’s moral and effective employee overall performance. 

2. Interview process and hypothesis development  

2.1 Interview process

Interview respondents were four in number which were selected from two different organizations. Both of these respondents were selected as sample size on random basis. While selecting participants for interviews, their consent was taken as they are willing to participate or not. Five questions were asked to these participants in the response of which they shared their views and experience in their respective organization. 

2.2 Interview Participants

Respondent name Age Gender Respondent designation Company name
Carl Winter  30-40 Male Senior Manager Designs Polka Inc. 
Brad Fitzpatrick 30-40MaleTechnical Project Expert Polka Inc.
Brian Essex, Ph.D.25-35MaleExperience User Interface Manager Ulrich Inc. 
Jill Bruins  25-35Female Technical Researcher Ulrich Inc.  

2.2 Interview results

Question # 1: In your opinion why would any employees leave his job against staying committed to the organization, what factors do you identify in implementation of contemporary HR management practices? Please answer in context to you job position and experience in the organization. 

Response of Carl Winter

I am satisfied with my job. Up till now I have not considered leaving my job. However, I believe it’s not just my sheer capacity to commit with the organization there is a system behind it. As a manager in my organization, my position gives me a lot of exposure to the management practices and you may call it fortunate or unfortunate I have been part of few exit interview within my organization and I have always asked employees why are they leaving they complain that work is not effectively distributed and there is lack of management support that inhibits them to manage increasing loads. I have also experienced that employee commitment in the job is directly related to his commitment and whenever I have been more supportive leader my team has always outperformed expectations. Hence, I would say that management has to adopt companionate approach and understand employee’s difficulties. After that provide them support performance-based rewards and their job plan should have a comprehensive career management plan, given these parameters most organizations would reap increasing level of employee commitment. 

Response of Brian Essex User Researcher at Blink UX 

I would not say I would be the one leaving organization, but I cannot deny having such thoughts either this is because sometimes I am overloaded with work and I feel my management never provides physical nor moral support. They on many occasions fail to address my issues and concerns. Due to workload I have had asked to be shifted to Tele-working program as I usually get late home which is negatively affecting my work-life balance. Since my job description is flexible and can be shifted to teleworking, unfortunately organization has not given full consideration to it. If the stress continues then it can be a proposition, I might consider but I also think if management offers me performance-based rewards and provide sufficient support than scenario for me would be very positive. 

Response of Jill Bruins: 

Yes, if I ever quit a job or I believe anyone would quite a job would be due to lack of career management options. I mean to say is if I cannot visualize my future in that organization, I would be definitely spending my time in looking for other jobs than working relentlessly to meet my organizational goals. This is my simple assessment; every employee has a right to bright future. 

Response of Brad Fitzpatrick

Hmmm interesting question, I believe every employee almost thinks of leaving this organization once in a while, but I also believe this should not be a case as many organizations have harnessed employee commitment effectively. In my opinion, employees would be disgruntled if they are not recognized for their efforts. Contemporary HR policies should be dynamic and yes, should involve performance-based rewards. 

When you think about employers that you were really committed to, why did you feel such high commitment levels?

Response of Carl Winter

Employers of my organization are very supportive and friendly. We share friendly relation, and this relation is the most significant factor that allows me to share my views and feelings with him and I love it, which is why I show my full commitment and dedication towards him. I can give everything for my organization if I know they would do the same if I need them. 

Brad Fitzpatrick and Jill Bruins shares that, when I get committed to any of my employers it’s because of trust. When my employer shows his concern regarding my issues, I get committed to achieving his goals.  

Response of Brain

Mostly I would remain committed due to supportive environment, but I would be better involved if my goals and organizational goals are mutual. 

Do you think this organization is best for you to work?

Response of Carl Winter

Yes, I am satisfied with my current job and organization, though issues or problems are part of life but still I feel its best place for me.

Brian Essex User Researcher at Blink UX: 

I have mixed feeling to be honest my organization is lacking in providing me with career development opportunities for my growth. In addition to this my work life balance issues need to be addressed. 

Brad Fitzpatrick and Jill Bruins also shares that, they do not consider their current organization as best as it lacks recognition, development, and rewards for their efforts. 

Your organization has effective leadership that fulfills your needs?

Response of Carl Winter

I believe in empowering leadership style and love to assist employees where they need support and this I have learnt from my management so definitely I would rate them high in this regard.

Response of remain 3 respondents 

Rest of the responses was consistent with this that effective leadership invests on employees for enhancing their motivation however our leadership is lacking to give us the true support. Hence, they regard it as they don’t care for their employees. 

What factors contribute in making you satisfy and committed to your job?

Carl Winter: 

Brain says: For me, work-life balance is top priority, which makes me satisfy towards my job. 

Brad Fitzpatrick shares that supporting leadership and friendly working environment enhance my commitment level towards my job while Jill Bruins says, performance-based rewards and compensation, career opportunities and development chances enhance their commitment towards their job. 

2.3 Hypothesis development  

Hypothesis 

H1: Performance Based Rewards are positively linked with organizational commitment

H2: Supportive leadership positively linked with organizational commitment

H3: Career development opportunities positively linked with organizational commitment

Organizational commitment is defined as significant aspect for the success of the organizations. According B.-K. Joo and Park (2010) organizational commitment can be explained as three main concepts which include normative commitment, affective commitment and continuance commitment. Among all of these types of commitment, continuance commitment is most effective and beneficial for the organization as it sustains for long time. This level of commitment helps organizations to achieve sustainable productivity. While on the other hand, affective commitment of employees enhanced when employees are attached with organization emotionally and normative commitment get enhanced when employees have strong believes regarding the organization which make him to work hard (Weng, McElroy, Morrow, & Liu, 2010). 

Furthermore, Noe (2010) according to commitment of the employees depends on cost or investment, which an organization has made or invests on their employees. Employee’s commitment is directly and significantly impacted by employee satisfaction and motivation level. When employees get motivated, they become more commitment to their jobs. Therefore, when organizations invest on employees, they feel valued and get motivated which enhance their commitment level towards their job. 

H1: Performance Based Rewards are positively linked with organizational commitment

Johnson and Yang (2010) make the point that every employee needs recognition as a positive reinforcement for maintaining commitment with the work. Performance based employee Rewards packages and compensations directly communicates to them that their efforts have been recognized. This develops as a positive reinforcement to right type of attitude required for organizational success (Griffin & Moorhead, 2011). It has been agreed that rewarding should be based on the performance of employees as it will become part of the culture and would significantly enhance employee motivation. Employee motivation is directly related to employee satisfaction, which enhances commitment of the employees towards their job (Noe, 2010).

 Effective pay plan and compensation policies help organizations in enhancing employee’s satisfaction and motivation level. It helps in enhancing employee performance as when employee feel satisfied its performance get enhanced. Good management of the organization treats their employees as partners which contribute in improving their employee commitment and satisfaction strategies. 

H2: Supportive leadership positively linked with organizational commitment

Reviewing peer journals and research articles it can be analyzed that researchers have given significant importance to the leadership. Supportive leadership and friendly organizational behavior contribute majorly in enhancing employee commitment (B. K. B. Joo, 2010). When employees feel committed to the organization, they tend their focus towards achieving organizational goals and objectives. Leadership play imperative role in providing value to the employees. Valued employees put their efforts for organization in order to achieve their competitive advantage. Furthermore, according to Tremblay, Cloutier, Simard, Chênevert, and Vandenberghe (2010) motivation has strong impact on enhancing employee commitment. Employee motivation could be enhanced through providing any of intrinsic or extrinsic advantages to the employees. In all over the world, effective leadership and successful companies are using intrinsic or extrinsic rewards for enhancing their employee motivation. Therefore, it is helping them in enhancing their employee commitment to their organizations. 

In modern business world, every business is adopting a new business structure in which dictatorship leadership style is transforming and replaced by team based and democratic structure. Organizations are developing in supportive and friendly leadership style rather than commanding strict structure.  Effective leadership creates a supportive relationship with their employees. Thus, it helps them in enhancing their satisfaction and motivation level, which sooner or later shows in their performance. 

H3: Career development opportunities positively linked with organizational commitment

There are several elements which contribute in enhancing employee satisfaction such as high salary packages, good working conditions, handsome retirement plans, reduced and balanced working hours, training facilities, educational chances, supportive leadership and insurance etc. However, despite of having all these benefits still, it has been seen that many employees feel dissatisfied with their job and it is because they do not feel their future secure. Employees feel that provision of development chances contribute in making their future secure. In any organizational setting, employees must have development facilities that could help them in grow in their future life. Effective leadership and successful organizations provide development chances to their employees, as they believe that employee satisfaction is linked with their development opportunities. 

According to Morrow (2011) when organizations provide their workers better opportunities to grow they become more loyal and motivated to their job. Thus, such motivation level ultimately impact on their job performance. 

3. Summary

In the present study, due to it exploratory nature conducts interview sessions based on 4 respondents. Morieux (2011) has identified enigmas for employee motivation and job commitment explaining that if an employee is not committed than it will actively disengage other and would be a cause for increased turnover for an organization.  The present study undertook the process of interview to effectively determine the causes of that are responsible for increasing and decreasing employee commitment. Three variables are identified that play a significant role in determining the employee commitment. The variables were identified based on the interview responses.  Most respondents explained that organizational commitment of employees is related with performance reward system, career development opportunities and supportive leadership of the organizations. 

The present study shows that positive outcomes can be achieved and organization potential to produce productivity can be achieved. Motivation is a relative term and adopting new processes would potentially enhance employee motivation and satisfaction, which contribute in improving their job performance and commitment. The research has a potential to resolve the enigma of employee commitment and determine success criteria to fully enhance the result outcome. Quantitative analysis can further support the interview responses gathered and compiled. 

References

Armstrong, M., & Taylor, S. X. (2014). Armstrong’s handbook of human resource management practice: Kogan Page Publishers.

Azeem, S. M. (2010). Job satisfaction and organizational commitment among employees in the Sultanate of Oman. Psychology, 1(4), 295 %@ 2152-7180. 

Bushra, F., Ahmad, U., & Naveed, A. (2011). Effect of transformational leadership on employees’ job satisfaction and organizational commitment in banking sector of Lahore (Pakistan). International Journal of Business and Social Science, 2(18 %@ 2219-1933). 

Griffin, R., & Moorhead, G. X. (2011). Organizational behavior: Nelson Education.

Johnson, R. E., & Yang, L.-Q. (2010). Commitment and motivation at work: The relevance of employee identity and regulatory focus. Academy of Management Review, 35(2), 226-245 %@ 0363-7425. 

Joo, B.-K., & Park, S. (2010). Career satisfaction, organizational commitment, and turnover intention: The effects of goal orientation, organizational learning culture and developmental feedback. Leadership & Organization Development Journal, 31(6), 482-500 %@ 0143-7739. 

Joo, B. K. B. (2010). Organizational commitment for knowledge workers: The roles of perceived organizational learning culture, leader–member exchange quality, and turnover intention. Human Resource Development Quarterly, 21(1), 69-85 %@ 1532-1096. 

Markos, S., & Sridevi, M. S. (2010). Employee engagement: The key to improving performance. International Journal of Business and Management, 5(12), 89 %@ 1833-3850. 

Morieux, Y. (2011). Smart rules: Six ways to get people to solve problems without you. Harvard Business Review, 89(9), 78-86. 

Morrow, P. C. (2011). Managing organizational commitment: Insights from longitudinal research. Journal of Vocational Behavior, 79(1), 18-35 %@ 0001-8791. 

Mowday, R. T., Porter, L. W., & Steers, R. M. (2013). Employee—organization linkages: The psychology of commitment, absenteeism, and turnover: Academic Press.

Noe, R. A. (2010). Employee training and development: McGraw-Hill/Irwin.

Tremblay, M., Cloutier, J., Simard, G., Chênevert, D., & Vandenberghe, C. (2010). The role of HRM practices, procedural justice, organizational support and trust in organizational commitment and in-role and extra-role performance. The international journal of human resource management, 21(3), 405-433 %@ 0958-5192. 

Weng, Q., McElroy, J. C., Morrow, P. C., & Liu, R. (2010). The relationship between career growth and organizational commitment. Journal of Vocational Behavior, 77(3), 391-400 %@ 0001-8791. 

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