Organizational loyalty and commitment: What affects managers' loyalty and commitment?

Abstract: the main purpose of this paper is to provide an analysis of the factors that affect the behavior managers have towards the companies they work for. The analysis provided will put emphasis specifically on the factors that influence and determine the loyalty and commitment managers have for their company in today's competitive business environment. Research shows that nowadays, as a result of the process of globalization, advances in technology and increased competition, the increased importance of employee loyalty and commitment has added to the complexity of the business world companies operate in.

Keywords: organization, loyalty commitment, motivation, managers

1. Introduction

The dynamics of today's business environment have imposed constantly changing settings in which companies must adapt and maintain their competitiveness in order to survive. As a result of that, nowadays, a special emphasis is placed on acquiring, motivating and retaining quality workforce, since it is recognized as one of the primary factors determining the development of competitive advantage. The paper provides analysis of the factors determining the behavior managers have in their company, in terms of loyalty and commitment. In order to achieve the purpose of my analysis, I start by explaining the concept of motivation, loyalty and commitment, and this is followed by discussing the different ways companies can motivate their managers and employees, in general. I will use the third part to explain my assumption using gender and age as points of reference.

2. Motivation and loyalty in today's business world

In today's dynamic business environment, in order for the companies to survive, be profitable and maintain a competitive edge, the importance and role of the workforce factor is unquestionable. The presence of quality workforce will bring fresh ideas, concepts and new products/services for the company, so finding new ways of attracting retaining and motivating the employees is one of the greatest challenges for organizations today. It is in my opinion that motivation as a process should be further discussed in this paper due to its relatedness to job satisfaction and ultimately results in employee loyalty and commitment. Douglas McGregor is one of the many management theorists that developed their own thinking about the behavioral pattern of employees at work. His theory of personality X and Y employees, has contributed greatly to today's understanding of how people behave and interact in the workplace. This was particularly important because it emphasized the difference between motivated and unmotivated worker and the importance of employee motivation. Companies aim at effective employee motivation, in order to improve their own operations, increase efficiency both in terms of money and time, and develop and maintain competitive advantage over competitors. Due to the changes imposed by the environment, many companies like Siemens, Mercedes and Motorola went to great lengths to change the manner in which they do business in order to stay competitive. As Kerslake (2005) states, that when putting effort into motivating their employees, companies should provide them with an environment that reflects beliefs, values and aspirations. This will create employee satisfaction, increase productivity and the company's ability to attract and retain even more quality workforce. However, today it is even more difficult and challenging for companies to motivate workers, achieve satisfaction and, ultimately create employee loyalty. This is mainly, due to the dynamic work settings business people are facing that has caused a fundamental change in the relationship between employers and employees. Johnson (2005) argues, that today workers do not see themselves working for the same company throughout their entire career, and the issue of loyalty should not be viewed as a proposition that can be solved with an either/or approach. Further on, in the article the relationship between job satisfaction, loyalty and performance is discussed and recognized.

3. Different approaches to motivation and loyalty

During the past decades there has been many scientists dealing with analysis of human behavior that contributed with their own theories of work-related behavioral patterns. Through these theories employers gained a valuable insight of which things to consider when placing efforts into satisfying workers' work-related needs. Today, a lot of emphasis is placed on this issue by companies, as a result of the increased importance of quality workforce. Organizations go to great lengths trying to understand the specific factors of motivation which will act as drivers for their employees, and as a result of that many surveys and researches have been conducted, but often resulting in a different outcome, since the workers' preferences tend to change over time (Wiley, 1998). When placing efforts into motivation, there are factors that can not be neglected or undermined by the organizations. Differences like the age, gender, education, experience, cultural background and expectancy from the work place are factors that must be considered in order for a more effective motivational program to be implemented (Albert, 1998). The surveys conducted over the years have placed certain factors like the wages, advancement opportunities and job design; argue Meudell and Rodham (1998). Even though in today's business environment, the managers have the crucial role of being the facilitators and motivators in the organizations, this does not exclude them from being a subject of motivational surveys themselves. Over the years executives' behavior at work has been studied and analyzed, all in order to discover the factors that influence their motivation and ultimately performance, job satisfaction, commitment and loyalty.

Pool and Pool (2007) argue that through the implementation of the expectancy theory, the motivational behavior of managers can be measured by two components. They are the E-I, or the effort-to-performance expectancy, and the E-II, or performance-to-output expectancy. The first is the individual's perception of the probability that the potential effort will lead to a satisfying outcome, and the later is the individual's perception of the probability that the possible outcome will lead to other specific outcomes. Other than the "working conditions", managers emphasize job security, promotion, money, colleagues and autonomy, as factors they relate to the job satisfaction and motivation. In contrast, employees place more emphasis on bonuses, money and promotions (Meudell and Rodham, 1998). Since the motivation of workers trough the satisfaction of the work-related needs, will improve the efficiency, efficacy, and overall performance of the company, and ultimately result in satisfied and loyal employees and customers, it is of great importance for organizations to understand how crucial is the employee loyalty and commitment for the future of the company. However the process of acquiring and retaining quality workforce is made even more difficult due to the lack of qualified individuals in the labor market nowadays.

4. Considerations when dealing with diversified workforce

Studies have shown that there is no universal pattern or a solution when approaching people from different culture than ours. The difference can not be found only in the culture but also in the beliefs one has, the age, experience, gender, education and workplace expectations. This adds more to the challenge and the difficulty for the companies when facing a diversified workforce, within as well as, outside the organization. (Hyde and Kling, 2001). In respect to that, and in order for better motivational efforts to be implemented, the organizations must understand and recognize different needs employees have, due to the difference background they have. This is very important since it is the process of motivation, and satisfying work-related needs that builds the foundations of employee commitment and organizational loyalty. One of the most popular topics of discussion today is the advancement of women in the business world, so gender differences will induce changes in the way employers approach their workers' needs. As Meudhall and Rodham (1998) argue, in some surveys where women managers were surveyed, it has been shown that they rank money and bonuses very high as a means of motivation, as well as job security and advancement prospects. Surveys of this type, provide an insight to employers of which things to consider when formulating their motivational approach and tactics when they have a woman manager. Through surveys and researches like these, organizations acquire information of what drivers they need to target in order to best motivate their workers. Male managers in the same study placed an emphasis on the level of autonomy and the job loss possibility, as well as the financial injections like bonuses and salaries. We can clearly notice the difference in preferences as a result of difference in gender, position and mentality. The experience and the age of the employee can be a valuable tool for the organization in the creation of the motivational pattern. As King (1998) argues the time employee spend in the workplace and the experience they acquire, often determines the level of their ambition and strive for further advancement and upward movements in the organizational hierarchy. Namely, people who have spent up to six months in the workplace put an emphasis on the financial part i.e. bonuses and salaries, while people that have more experience , form one year and above place special emphasis on promotion possibilities, competitors and the people they work with, as well as the job satisfaction they enjoy. Result like these fro surveys give the organization a good sense of wh