Organizational commitment of employees is an intangible asset for an organization to derive a strategic advantage over competitors. Commitment influences sustainable growth and development of the manufacturing organizations in general and service organizations in particular, where employees attitude and behavior have a strong bearing on customer loyalty. Organizational commitment has been reported to be influenced by organizational characteristics and culture, leadership styles, organizational communication, training and development activities, job satisfaction, job stress management, etc. This article discusses the concept, antecedents and consequences followed by the appropriate strategies to be adapted by organizations to enhance employee commitment in the new era of liberalization, privatization and globalization.

A recurring problem facing many organizations across the globe is the retention of employees and keeping them productive over the long run. The concept of `employee commitment' has attracted a great deal of attention in recent years because it is an intangible resource that can neither be easily replicated nor purchased off the shelf by a competitor.

A lack of commitment has been cited as an explanation for poor/under performance of employees' vis-à-vis organizations. Incidences of employee absenteeism, turnover, reduced job effort, theft, violence, job dissatisfaction and unwillingness to be relocated have been attributed to this behavioral phenomenon. For example, a report on the fast food industry in the US shows that employee turnover is 25%. The center for workforce development (2003) reported that the turnover of software engineers is 21%. The US Commerce Department has estimated that 30% of the business failures result from employee theft. The government agency also estimated that American companies lose $20 bn to $40 bn annually from employee theft. Further, in many organizations, employees simply do not seem to be interested in the welfare of their employer, and would not hesitate to join a competitor, as frequently seen in the current software development companies.

Although the success of an organization depends on the competitiveness of its product offering, it cannot deliver value to its customers unless every employee exhibits a high level of commitment toward attaining organizational objectives. Commitment has direct impact on performance in many service jobs, where customers and employees directly interact. A motivated, well-trained, and committed work force is needed for the success of an organization. Therefore, organizations would benefit from strategies that enhance employee commitment to the goals and objectives of the organization.

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