Course Code: PhDEM 717

Course Description: School Governance and Ethics

Professor: Dr. Lorelie A. Galit
Matter: Report
Student: Israel A. Del Mundo

What is Organizational Commitment?

Organizational commitment is defined as a view of an organization’s member’s psychology
towards his/her attachment to the organization that he/she is working for. Organizational
commitment plays a pivotal role in determining whether an employee will stay with the
organization for a longer period of time and work passionately towards achieving the
organization’s goal.
If an organizational commitment is determined it helps predict employee satisfaction, employee
engagement, distribution of leadership, job performance, job insecurity, and similar such
attributes. An employee’s level of commitment towards his/her work is important to know from
a management’s point of view to be able to know their dedication to the tasks assigned to them
on a daily basis.
Theory of Organizational Commitment
A distinguished theory in organizational commitment is the Three-Component Model (TCM).
According to this theory, there are three distinct components to organizational commitment:
1. Affective Commitment: This is the emotional attachment an employee has towards the
organization. This part of TCM says that an employee has a high level of active
commitment, then the chances of an employee staying with the organization for long are
high. Active commitment also means, an employee is not only happy but also engaged in
the organizational activities like, participation in discussions and meeting, giving
valuable inputs or suggestions that will help the organization, proactive work ethics etc.
2. Continuance Commitment: This is the level of commitment where an employee would
think that leaving an organization would be costly. When an employee has a continuance
in commitment level, they want to stay in the organization for a longer period of time
because they feel they must stay because they have already invested enough energy and
feel attached to the organization – attachment that is both mental and emotional. For
example, a person over a period of time tends to develop an attachment to his/her
workplace and this may be one of the reasons why an employee wouldn’t want to quit
because they are emotionally invested.
3. Normative Commitment: This is the level of commitment where an employee feels
obligated to stay in the organization, where they feel, staying in the organization is the
right thing to do. What are the factors that lead up to this type of commitment? Is it a
moral obligation where they want to stay because someone else believes in them? Or is it
that they feel that they have been treated fairly here and that they do not wish to take the
chance of leaving the organization and finding themselves in between the devil and the
deep sea? This is a situation where they believe they ought to stay.
How to Improve Organizational Commitment?
Course Code: PhDEM 717
Course Description: School Governance and Ethics
Professor: Dr. Lorelie A. Galit
Matter: Report
Student: Israel A. Del Mundo

High levels of organizational commitments are related to superior business performance,

increased profitability, improved productivity, employee retention, customer satisfaction metrics,
reduced customer churn and above all improving the workplace culture. That’s the level of
commitment an organization would expect from its employees. But how do we get there?
Here are some tips to improve organizational commitment:
Create a strong teamwork culture
Building a strong teamwork culture facilitates a healthy work environment. No two employees in
an organization can be exactly the same. When people come from different backgrounds, there
will be differences in the way they see and perceive things and the same holds true when people
work in a team. However, if an organization promotes a culture of team building, employees will
be motivated to work together and achieve more. This will help boost their commitment levels
and create a long-term work culture harmony.
Communicate clear goals and expectation to the employees
Most employees want to be a part of an irresistible future, they want to know what is most
important in their job and how can they achieve excellence in their job. For objectives to have
meaning and be effective, employees should be communicated clearly the goals and expectations
of the management. Employees, when they feel a sense of ownership tends to stay longer with an
organization.
Be transparent and encourage open communication
Let employees be participative in what is happening within the organization, as well as how they
can contribute more towards the development of the organization. When an organization is
transparent with its employees and shares numbers and figures with them, they are greater
chances that employees feel valued and increased sense of belonging. Thus, improving the
performance of employees through transparency.
Maintain work ethics
Employees would want to feel good about the organization they are working with. Having high
standards of work ethics makes employees feel motivated and respectful towards the
organization. When employees know that an organization has high morals, they stay associated
with the organization. Good work ethics assures any employee, that they have an equal playing
field in the organization to perform and to grow their careers.
Foster a positive work culture
A positive work culture is where employees feel happy to be a part of the organization, where
they feel motivated and encouraged to share new ideas and facilitate communication with the
management without having the fear of being misunderstood. Encourage employees to find a
personal fit with the organization’s culture.
Course Code: PhDEM 717
Course Description: School Governance and Ethics
Professor: Dr. Lorelie A. Galit
Matter: Report
Student: Israel A. Del Mundo

Develop Trust
When employees start developing trust among themselves as well as leadership, it is a positive
sign of organizational development. Employees constantly watch the organization’s leadership
for motivation and example, learn decision-making skills and how it helps strategic changes
within the organization and if their behavior reflect what they say.
Encourage innovation
Innovation is one of the bests ways of encouraging employees. When an employee has an idea of
doing things differently and in a better way, do not discourage them, on the contrary, motivate
them to come up with more good ideas.
Provide constructive feedback and not criticism
Employees should be provided with constructive feedback whenever needed. They should be
appreciated for what they are doing good which will help them raise their morale. Tell
employees when they are wrong, but do more- tell them why it’s wrong and above all- how to do
better. There is a difference between criticism and constructive feedback. Criticism only tells
what’s wrong, constructive feedback tells you what is wrong, why is it wrong and how to get it
right!
Efficiently delegate tasks
An organization that functions efficiently knows the art of delegating tasks. One should
understand not all work can be done by one single person, there are dedicated resources in an
organization to carry out particular tasks. When the work has efficiently distributed no one, in
particular, is burdened.
Offer Incentives
When an employee performs exceptionally well, organizations need to value his/her
contribution. In such cases, it is a good idea to offer incentives to the employee to recognize
his/her good work and dedication. If the organization wants employees to have sufficient work
commitments it is essential that management rewards them appropriately as different things
motivate different people.
Satisfied and engaged employees are an asset to any organization. It is important to value people
who show dedication and commitment towards the organization. Organizations need to dig
deeper and find the root cause of issues faced by their employees and take timely actions to
reduce employee turnover.
What is Organizational Values
Course Code: PhDEM 717
Course Description: School Governance and Ethics
Professor: Dr. Lorelie A. Galit
Matter: Report
Student: Israel A. Del Mundo

Organizational values guide your organization’s thinking and actions.  You can think of your
organizational values in terms of dimensions: prosocial, market, financial, achievement, and
artistic. Your values are your corporate culture. 

When it comes to culture and values, actions speak louder than words. 

To figure out your organizational values, see what people spend their time on and what they talk
about.

 Organizational values are abstract ideas that guide organizational thinking and actions.
 Organization values represent the foundation on which the company is formed.
 Defining an organization’s unique values is the first and most critical step in its
formation and development
 While difference in opinion and skills may be beneficial to the success of an
organization, a unity of purpose must be maintained.
 In order for the institution to be successful, the values on which the company is built
must be appropriate for the time, place, and environment in which the organization
will operate.
 A company’s organizational values let others know what it is, why it has been created,
and how it is different from other companies.

How Do You Find Organizational Values?

 In order to understand and identify the values of an organization and to gauge their
influence on the company, managers must carefully examine how that organization
operates.
 While it may be helpful to listen to people describe what they believe the values of the
organization are, it is far better to observe those people in their day-to-day activities.
 Note how employees spend their time, how they communicate within the organization
and how they go about their daily job responsibilities and tasks.
Course Code: PhDEM 717
Course Description: School Governance and Ethics
Professor: Dr. Lorelie A. Galit
Matter: Report
Student: Israel A. Del Mundo

 Although values are often difficult to define, they are usually revealed by employees’
actions and thinking, how they set their priorities, and how they allocate their time and
energy. An employee’s actions are more revealing than their words.

Dimensions to Understand Values

 Prosocial dimension. Not-for-profit theatres have a responsibility

to provide community access to their performances, remove economic and cultural
barriers to attendance, and educate audiences in theatre arts.
 Market dimension. Theatres struggle between creating art of art’s
sake and meeting customer needs and expectations. A purely
market-orientated philosophy is typically the mark of a commercial theatre, with its
complete reliance on ticket sales for revenues, but all theater managers recognize the
realities of the marketplace.
 Financial dimension. Although all theatres must content with the
reality of financial demands while pursuing creativity and artistic excellence,
fiscal stability is a particularly high priority for some theatres.
 Achievement dimension. Public recognition and acclaim can affirm
an organization’s creative activity, and some theatres particularly strive for
external recognition.
 Artistic dimension. For many theatres, the top priority is
internally focused creativity, innovation, and artistic dependence.