Organisational commitment and firm's performance in the Indian context

Abstract

Organisational commitment (OC) has been the focus of research globally but from different perspectives. This chapter focuses on key developments and summarises research in the area of organisational commitment and highlights the need for such an analysis in the Indian context. It presents an empirical analysis of the impact OC has on a firm's performance in an Indian sample. The attitudinal approach to organisational commitment is based on the employee's development of an emotional or psychological attachment to the organisation. Regression analyses showed that the perceived extent of introduction of innovative human resource practices by the organisations was the most significant predictor of organisational commitment. In India, although there is spate of literature on organisational commitment, the links of organisational commitment to a firm's performance are weak. Human Resource practitioners should build on the relationship capital and speed capital within the organisation to sustain competitive advantage, through building organisational commitment in the workplace.

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