In business, relationships between employers and employees are an important factor that will affect every part of an organization. Furthermore, they relate to management between superordinate and subordinate in business. The employers and employees should have a role that are suitable for their position which will develop good relationship in order to be able to develop employee commitment and loyalty. To keep a good relationship in companies, the employers should have some method that will help the employees involve with the organization suitably. One method is involving by using commitment and loyalty. This essay will discuss the benefits and two major methods for encouraging them more commitment and loyalty which are workplace environment aspects and personal aspects.
In terms of understanding employee commitment and loyalty, Kumar and Shekhar (2012) state that ‘Loyalty is the willingness to make an investment or personal sacrifice to strengthen the relationship’ and they also state that commitment lead to loyalty which means it has relation between commitment and loyalty.
The benefit of building a sense of commitment and loyalty among employees is building employee ability. Kumar and Shekhar (2012) state that building a sense of employee loyalty can develop the maintenance of the organization, the level of productivity, altruistic behavior which is the sense of common interest and reciprocal respect between employers and employees. Goman (1991 cited by Mayfield and Mayfield 2002: 89) states that employee loyalty can improve prestige of organization and can help the companies to hiring more efficient employees. Moreover, Kumar and Shekhar (2012) also state that empl...
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...ive in working. Sisson and Storey (2000) illustrate that in terms of the organizational and financial participation are considered as the main factors which are directly involved in building sense of ownership and profit-sharing that can build employee commitment and develop loyalty.
These two methods as mentioned above are related. The workplace environment aspects which are organization features, strategies and contract flexibility affect employees’ personal aspects. On the other hand, the personal aspects whether internal or external factors are mostly based on profit exchange relationship. The internal factors involve with self-awareness and psychological contract (employee expectations) by using self-work evaluation whereas the external factors involve with financial reward and profit-sharing and co-partnership in order to build employee commitment and loyalty.
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