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Organisational Commitment

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by

Elaine Ho

on 12 August 2013

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Transcript of Organisational Commitment

Organisational Commitment
IKEA
BrightPoint
Implications
o Blurs lines of authority
o Either side might overstep their boundaries

o Won't challenge employees to take on more responsibility
o May hinder creativity and innovation

o Too much may distract from work
o May pressure employees to behave or feel monitored
o May not be entirely reliable feedback
o Can be damaging to morale

o Could make the workplace overly competitive
o Hostility towards employees who consistently do well
o Establishes hierarchy between employees of same rank
MGX9602: Foundations of Management
Sholom Cowen
Jezron Divinagracia
Elaine Ho

What is it?
"Loyalty to and heavy involvement in one's organisation"
- Samson and Daft
the manager has to ensure role-talent fit when placing an employee in a certain position and exert all efforts needed to retain that talent in the organization.
"Leading by Being Example"
Start it from the top
Clear and consistent communication of
what is expected of your employees paves
the way for committed workforce

“We realize that if an employee’s personal life is in disarray, it can affect their productivity at work.

We created a flexible workplace environment that emphasizes a work/life balance and provides professional opportunities without any gender or life situation limitations,” explained Spiers-Lopez.

The IKEA company philosophy to create a better everyday life for its customers, has brought to the following benefits:

In 2002, IKEA saw a significant decrease in sales staff turnover to 56%, down from 76% in 2001.

In addition, women represent more than 48% in management positions and are 47% of the company’s top earners.

Also, 60% of co-workers take advantage of the flexible work arrangements that the company offers.

36% of IKEA part-time and full-time co-workers participate in the IKEA tuition assistance program, which has helped many co-workers complete undergraduate college degrees, as well as advanced degrees at graduate schools.
Full medical/dental insurance for co-workers that work 20 hours or more per week (a rarity in the retail industry),
A fully paid health plan including coverage for domestic partners and children,
Paid maternity/paternity leave,
Paid time off for child adoption,
Elder care resources available,
Tuition assistance, p
A generous 401(k) matching plan (retirement),
Flexible work arrangements including job share (2 people to a job fit for 1), telecommuting (work at home) and condensed work weeks, as well as quiet rooms and lactation rooms.
“We empower our co-workers and respect people’s personal lives, and we have seen how in return people respect their responsibilities. This has a tremendous influence on job productivity, growth and development, which ultimately benefits our customers.”
- Pernille Spiers-Lopez, president, IKEA North America
At IKEA, workplace benefits include:
Have an effective recruitment and orientation program
Communicate, Communicate, Communicate


How can managers increase it

Organisational Commitment
"As BrightPoint continues to increase focus on employee engagement, the organization will grow stronger and maintain a substantial advantage over our competition. 

Our employees possess the knowledge, experience, and resiliency to respond quickly to the demands of the marketplace and, through their genuine commitment, will deliver what our customers want with increasing efficiency and effectiveness. 

Our responsibility is value-creation by growing our business and maintaining high levels of customer service and loyalty. We believe the best way to accomplish this is through a strong, committed, and engaged workforce."
"We have a diverse workforce where each employee brings unique value and has individual needs.  Managers are learning to manage the individual and not the position. In order to give managers the tools they need to be successful, BrightPoint places strong emphasis on targeted leadership training workshops and continual learning resources. In 2011, 90.6% of managers at BrightPoint NA participated in the development opportunities offered and also made an effort to help reinforce the learning of their team members. 

This signals that our leadership team is taking an active interest in professional development and its connection to employee commitment."
"At BrightPoint, we take employee engagement seriously, and we work to create a culture that inspires employee loyalty and satisfaction. The results of BrightPoint’s commitment to its employees are shown in the 2011 BPNA Employee Commitment Survey. 

The survey determined that close to 80% of respondents indicated they were satisfied with their jobs and daily activities.  General employee satisfaction increases when managers take an active interest in their employees beyond their day-to-day job responsibilities."
Mark Powell,
President of Brightpoint, North America
“High-performing companies recognize that employee commitment is a major contributing factor toward sustaining long-term success and creating value.

An engaged employee is involved and excited about their work and acts in a manner that will forward the organization’s interest.

An engaged workforce helps optimize and retain talent for the long-term because the employees choose to stay, even when other employment alternatives exist."
Give satisfactory opportunities for development and advancement
Encourage independent
thinking through giving them
more job autonomy
Ensure that employees have every thing they need to do their jobs
Make sure that employees have all the resources
Give proper trainings
Help employees update themselves increasing their knowledge and skills through giving appropriate trainings
Have strong feedback system
Conducting regular survey of employee engagement and commitment level helps make out factors that make employees engaged and committed
Loyalty Influences Involvement
LOYALTY
INVOLVEMENT
Don't forget the Incentives
Managers should work out both financial and non-financial benefits for employees who show more commitment to their jobs and organisation
vision
values
culture
connections
recognition
respect
brand
products
purpose
Build a distinctive
corporate culture
Promote a strong work culture in which the goals and values of managers and employees are aligned across all work sections
fulfilment
tolerance
interest
mutuality
appreciation
Create an environment of trust
consideration
consistency
relations
efficiency
profit
long-term benefits
resilience
shared success
Thanks for listening!
Any questions?
teamwork
duties
maintenance
intangible appreciation
tangible labour
development
"Think like an entrepreneur,
not a hired hand."
- Konosuke Matsushita, founder of Panasonic
Conclusion
Each organisation is different; there is no one way to achieve organisational commitment.

Job of the manager to find the right approach, without compromising professionalism.

Moderation is key!
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