Employee Commitment In Large And Small Businesses Research Papers Examples

Introduction p. 3

Meyer and Allen Model of Commitment p. 3
Factors Impacting Job Commitment p. 3
Defining Large and Small Businesses p. 4
Employee Commitment in Small Businesses p. 5
Employee Commitment in Larger Businesses p. 5
Comparison of Working Environments p. 5-7
Conclusion p. 8
Bibliography p. 9
Employee Commitment in Large and Small Businesses
1. Introduction:
When comparing the commitment of an employee in a small business with the commitment of an employee in a large business, one has a number of factors to consider. It’s extremely important to evaluate and encourage organizational commitment by the workforce; expensive employee turnover, loss of skilled workers to competitors, and possibly decreased morale and performance in the remaining employees can result. Ultimately, the types of employees drawn to the different work opportunities influence the level of commitment they feel toward their employers.
2. Meyer and Allen Model of Commitment:
In 1997, Meyer and Allen developed the three-component model of commitment that plays a large part in research for organizational commitment. It states there are three mindsets present at the same time that are termed affective (emotional), normative (obligation), and continuance (negative consequences of leaving) commitments.
3. Factors Impacting Job Commitment:
Steers (2007) felt people come to work for a company with a set of skills and personal goals. A commitment to the company by the employee begins when the organization is seen as helping attain the employee’s goals by using their skills. However, if the company fails in their assistance to the employee, either real or imagined, his commitment to the organization will begin to decrease.
Role Stress. Anton (2009) believes that when an employee feels he receives conflicting requests or does not have enough information to perform his job well, role stress results. Unclear role definitions decrease performance and increase the possibility of the employee leaving the position.
Empowerment. Another factor influencing commitment is the ability of leaders to encourage the workforce by increasing motivation (Ahmad and Oranye, 2010). Ahmad (2010) conducted a study that demonstrated a positive correlation between employee commitment and empowerment.
Job Insecurity and Employability. A third aspect of job commitment was discussed in research conducted by DeCuyper, Notelaers, and DeWitte (2009) addressing insecurity on the job. Temporary workers or those on a contract for a specific amount of time experienced higher insecurity than workers employed on a permanent basis. The feeling of insecurity not only resulted in decreased commitment on the part of the temporary employees, but also affected the commitment of the permanent workers.
Distribution of Leadership. Hulpia et al (2009) conducted a study that found a strong relationship between the ability of a leadership team to work together in support of the employees and employee commitment. The leadership is distributed to the workplace from a central supervisor, job satisfaction was reportedly higher.
4. Defining Large and Small Businesses:
The Small Business Association states companies dealing in non-manufacturing is considered to be a small business with less than 500 employees (Evans 2015). Headd (2000) states small business fill niche markets through vigor and new ideas; large companies stabilize the economy. The basic differences lead to the types of workers needed and the personalities and goals of the workers preferring the type of employer.
4. Employee Commitment in Small Businesses:
Steingold (2008) states the small business is more likely to “try out” a new employee through a temporary agency than a large one; while commitment is low for that employee in a large company, a small business will welcome the person into the workforce like family if the personality is a fit. Closer relationships appeal to certain personalities, and employees are encouraged to expand their abilities to other areas. In fact, a job may be tailored for an employee’s needs in terms of work schedule or abilities in responsibilities (Guides 2015).
A study conducted by Katie Halbesleben found employees working in small businesses have more commitment to their employers than those in large companies; the result is decreased absenteeism, and less job seeking outside the company with resultant turnover (Brooks 2015).
5. Employee Commitment in Larger Businesses:
A large company requires each employee have a specific job description; he may only move out of it with permission after application for change. Many types of employees like this structure, knowing what is expected from him. If he wants to promote, he understands the process for doing so. Formal lines of communication keep a distance from co-workers outside his immediate environment, which is comforting to some employees (Ingram 2015).
6. Comparison Between Environments:
Glenn (2015) states giving employees a sense of leadership, particularly in a small business, encourages them to commit to the long-term success of the company. This is possible to a lesser degree in a larger organization. A perception of the importance of their sacrifices, input, and productivity to the final continuance of the organization invests them.
Good management understands the importance of recognition of employee commitment on a daily basis (Fuscaldo 2014). By increasing their sense of accomplishment, an employer created value in their performance and consequently commitment. Large companies do this with wall signs and newsletter, but having a direct manager perform the congratulations has more impact. In a small business, the owner or direct manager has the most influence for a positive experience. This sign of appreciation can be done fact-to-face, but performing it in public in meetings or assemblies accentuates the impact.
Working for a large company requires multiple levels of activities to complete a task. In a small business, less complexity means an easier way to get things done. Some individuals thrive on working through departments for a project, meeting other employees and making business contacts. Other employees prefer the chore to be quickly finished with positive results.
Working for a large corporation limits most employees to contact with co-workers in their own departments. This is acceptable for many laborers, but if an employee prefers to know everyone in the business a small company allows that. Relationships are more personal and many become friends outside the workplace. A problem arises if an employee doesn’t get along with someone else in a small company; in a large company, it’s possible to put distance between co-workers that aren’t compatible.
Small companies may ask employees to perform more than one job function. Some employees are very comfortable with this and may even welcome the opportunity to expand their experience and cultivate additional skills. However, another type of employee prefers a strict definition of job expectations without the stress of stepping outside their position’s requirements.
Small businesses may not have the resources to provide superior benefits to their employees, so they will try to make a more favorable working condition by having more flexibility in schedules and fewer rules. This is very attractive to some people who value the personal life highly. However, attractive benefit packages are an irresistible lure to employees who have a less demanding personal life or for whom the benefits outweigh the importance of life away from work.
An employee who has a goal of starting their own business or becoming more involved in the management of a business may be drawn to a small company to gain training in a broad sense. An employee who prefers to improve in a specific field may welcome the opportunities a large business offers to refining his current skills.
Small company will rarely offer an employee the opportunity to move into the owner’s position. Management positions below him are generally sparse unless the small business grows into a larger one. Many employees are happy to stay in a subordinate position their entire careers. In a large organization, there are more opportunities for an employee looking to advance up a career ladder. Even if he moves to a different company, he can keep the experience and skills he acquired. But the Normative Commitment of the Meyer and Allen Model comes into play when they feel loyalty and a sense of debt to the company for the opportunity to move up, and that may be incentive enough to stay.
Job security at a small company can be a little better than at a large organization. Employees in a tightly knit workforce make it difficult for an owner of a small business to terminate an employee. A large company can simply send the message down to a manager who can claim the decision is out of his hands.
7. Conclusion:
The work environments differ in a small business from a large one. Those differences offer a positive or negative appeal depending on the personality of the employee. To say a small company employee has a stronger commitment than a large company employee is fallacious. The commitment of the employee to the company is based on whether the work environment is comfortable to the employee and whether the company, large or small, is being run well. In other words, an employee with the goals and personality to work in a small company environment will not be committed to an employer that is a large corporation. And an employee determined to rise into a position as an executive manager of a multimillion dollar company will feel little commitment to a small business. Ultimately, employee commitment is dependent on the worker finding the work environment best suited for him in order to develop an organizational commitment.

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