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Employee commitment will become increasingly important in the coming decade because more and more companies are moving the decision-making processes farther down the organizational hierarchy, making it almost impossible for management to control performance directly (Brown, 1998)…
Interestingly enough, some of the more recent literature on leadership does reflect at least an implicit recognition of employee commitment in a multidimensional sense. For example, the concepts of developmental leadership and transformational leadership emphasize the importance of employee empowerment, team building, and overall company vision-sharing (Knights and Wilmott, 2007). These approaches all recognize the importance of commitment, as opposed to compliance, as the most effective route to productivity.
A simple way to think about these changes is that pressures from both the product market and the labor market are now taken inside the company and brought to bear on individual employees (Knights and Wilmott, 2007). The more traditional employee relationship buffered employees from market forces, the new relationship is mediated much more powerfully by the market. For workers, these developments represent a new psychological contract at work, a new set of implicit expectations between employer and employee.
Perhaps the most important part of the traditional psychological contract at work was employee commitment to the organization, which developed in part in return for employer offerings such as job security and other protections from the variability of employment associated with outside markets (D ...
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