Affective, normative and continuance commitment: can the 'right kind' of commitment be managed?

Article Abstract:

This study examines the multi-dimensionality of organizational commitment: affective, normative and continuance (including the sub-components of low perceived alternatives and high personal sacrifice), and how these are differentially related to a set of antecedents and consequences (i.e. turnover intentions, absenteeism and acceptance of change). The results, based on a sample of 505 Australian male fire-fighters, indicate that organizational commitment is best represented by the four-factors of affective, normative, low perceived alternatives and high personal sacrifice. In addition, employees experience different personal, job-related and environmental causes of commitment depending on whether they feel they want to, ought to, or need to remain with the organization. Further, not all facets of commitment enhanced organizational effectiveness, with affective being the most beneficial (i.e. employees are less likely to leave, be absent and are more accepting of change) and low perceived alternatives being the most detrimental (i.e. less accepting of change). The implications of these findings for the management of desirable forms of commitment are discussed. (Reprinted by permission of the publisher.)

Organizational behavior, Commitment (Psychology)

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Employee shareholders or institutional investors? When corporate managers replace their stockholders

Article Abstract:

During the past decade, the shares of publicly traded companies moved increasingly into the hands of institutional investors. As large investors pressed companies to restructure, companies were observed in turn to restructure their shareholder base. Drawing on a 1989 survey of 761 US publicly traded companies, firms facing a hostile takeover environment or with large institutional holdings are found to seek greater employee stockholding. Large firms and those that had adopted takeover defenses are more likely when threatened with takeovers or short-term pressures to seek more employee and less institutional stockholding. Though managers are employed by owners, investor efforts to discipline their managers can lead the latter to replace the former. (Reprinted by permission of the publisher.)

Acquisitions and mergers, Institutional investments, Employee stock ownership plans

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