Question

Define organizational commitment, and explain why it is important. Discuss why employers work to reduce rates of turnover.

Answer 1

In plain and simple words organizational commitment is an individual’s psychological attachment to the organization for which he/she works. Organizational commitment is important because it plays an important and significant role in determining whether an employee will stay with the organization for a long period of time or for a short period of time. It also determines the level of commitment and passion that an individual will have for the work being done by him/her.

Employers work to reduce rates of turnover because of the fact that a high turnover rate can have negative and costly consequences for a company. A high turnover will lead to increased costs as the employer will have to spend extra money towards recruiting, hiring and training of new employees. Secondly a high turnover rate will have a negative impact on morale of the employees and this will also reduce workplace productivity in future. It is for these reasons that employers work to reduce rates of turnover.