Continuance Commitment Analysis

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The objective of the organization is not only to acquire but to maintain an efficient and effective work force and most importantly incite commitment to the organization. This is because commitment is the psychological tie between the organization and the employee, which increase the chance that the employee will remain with the organization and contribute above average effort to the organization (Allen Meyer, 1996). Highly committed employees are less likely to leave the organization to explore other opportunities. Committed organizational members contribute positively to the organization. Cohen (1993) states that “organizations whose members have higher levels of commitment show higher performance and productivity and lower levels of absenteeism …show more content…

It is calculative in nature because of the individual’s perception or weighing of costs and risks associated with leaving the current Organization (Meyer & Allen, 1997). Meyer and Allen (1991) further stated that “employees whose primary link to the Organization is based on continuance commitment remain because they need to do so”. This indicates the difference between continuance and affective commitment. The latter, affective commitment entails that employee’s stay in the Organization is because they want to. Romzek (1990) describes continuance commitment as a transactional attachment. He argues that employees calculate their investment in the Organization based on what they put in and what they stand to gain if they remain with the organization. In addition to the fear of losing investments, individuals develop continuance commitment because of perceived lack of alternatives. Continuance commitment therefore reflects a calculation of the cost of leaving versus the benefits of …show more content…

The study units for data generation were employees in 31 registered and functional manufacturing companies in Port Harcourt and the micro-level of analysis was adopted. A sample size of 357 employees was determined using the Taro Yamen’s formula (Baridam, 2001). After cleaning, 210 copies of the instrument were used for the analysis. In selecting the respondents the simple random sampling technique was adopted. – The dimensions of Pay Structure adopted for this study are based on the earlier study of Guthrie (2000) on Compensation management. A four-item scale was

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