Employee Loyalty towards Organization-A study of Academician (original) (raw)

Fred Reichheld in his book, the loyalty Effect, defines the loyalty as the willingness to make an investment or personal sacrifice to strengthen a relationship. Plato originally said that only a man who is just can be loyal, and that loyalty is a condition of genuine philosophy. In general, employee loyalty can be best described in terms of a process, where certain attitudes give rise to certain behaviors (intended or actual). There have been major changes in the business world and the workforce in the last couple of decades. Finding and retaining the best employees is every company's challenge. The present study was an attempt to know the relationship between loyalty and organizational factors. This study is designed to find out the reasons for difference in loyalty among teachers and to compare loyalty of teachers of professional and non-professional courses. The underlying factors of loyalty emerged from this study are career development, motivation, bonding, job security, leadership, and commitment. The underlying factors of loyalty emerged from this study are career development, motivation, bonding, job security, leadership, and commitment. The findings of the research conclude that there is a significant difference in loyalty exists between professional and non-professional teachers. Also there is significant difference in loyalty exist between female and male teachers of professional courses. 1. Employee Loyalty Consider also the influx of employees representing Generation X and the fact that these highly educated and technically skilled workers are in demand. Unlike members of prior generations, however, many "Xers" in their 20s command near executive-level salaries. What's more, they are well aware of their market value and as reported recently in a Fast Company cover story, they have unique requirements and are not afraid to make bold and frequent career moves to meet them. This trend, coupled with decreased employer loyalty, has resulted in job-hopping rates unseen even a decade ago. Indeed, the days of waiting for the gold watch and easing into retirement are long gone. The sooner companies can face the fact that they've got to do more to earn employee loyalty, the better they will be at recruiting and retaining the best and the brightest. In fact, studies show that corporate and shareholder return on investment is directly related to employee retention rates. Happy employees equal happy returns. The corporations named on Fortune's "100 Best Companies to Work For" are very often those which outperform other companies in the market. REVIEW OF LITERATURE Chen, Zhen Xiong, Tsui, Anne S. and Farh, Jiing-Lih Larry (2002) investigated the relationship between loyalty to supervisor and employee's in-role and extra-role performance in comparison with that of organizational commitment in the People's Republic of China. Two studies were conducted. In the first study, a five-dimension loyalty to supervisor scale was developed and validated. In the second study, the relationships between loyalty to supervisor, organizational commitment and employee performance were examined. Results indicated that loyalty to supervisor was more strongly associated with both in-role and extra-role performance than organizational commitment. The findings are discussed in terms of their implications for future research and management practices in cross-cultural settings. Miguel Pina e Cunha (2002) in his case study of an integrated information technology services firm, examines how the interplay between culture, structure, and leadership is managed in order to build control and employee loyalty. He focuses on the salient features of the case, namely that a high-profile culture combines with a low-profile leadership and with minimal structuring to create a vibrant and loyalty-generating organizational environment. He proposes that these processes are effective because they reinforce one another. It is their articulation, not their existence that acts both as an unobtrusive control mechanism and as an employee loyalty-generating process, fulfilling the needs of both the organization and its professionals. Cunha, Miguel Pina et al (2002) in their case study of an integrated information technology services firm, studied how the interplay between culture, structure and leadership is managed to build employee loyalty. He proposed that these processes are effective because they reinforce one another. B.A.K. Rider (1998) found that trust, loyalty and related norms may have a crucial economic role to play, it does not follow that regulation should be used to foster their development. Since it is sensible business practice to act in a cooperative manner, laws of this character will often be redundant and could in fact serve to reduce reliance on trust and loyalty. Brian P. Niehoff, Robert H. Moorman, Gerald Blakely, Jack Fuller (2001) provided a useful outline of the work in the area of "Maintaining survivors' loyalty in a downsizing environment is a difficult problem for management practitioners". Theorists have suggested that empowerment and job enrichment are mechanisms that allow survivors to cope with the stress of downsizing. Their study examined the relationships between managerial empowerment behaviors, perceptions of job enrichment, and loyalty behaviors with employees who have survived downsizing in an organization. Results showed that empowerment does not have a direct effect on loyalty but affects loyalty indirectly through job enrichment. The results are discussed in terms of their implications for theory and practice. Kyle LaMalfa (2007) in his study pointed out that as an employer, you need to understand why your employees are emotionally connected to your business-and it's generally much more than salaries, training, or benefits. Research shows that emotionally connected employees are the best employees because they are engaged and productive, and they feel validated and appreciated. Frederick Reichheld (2006) in his study he reported that loyalty, for those who plan to stay with an employer at least two years, can be affected by several factors, including benefits and pay, working environment, job satisfaction and customers. Employee loyalty is critical for organizations as constant turnover or churn can be very expensive. In his report he stated that one of the most effective ways to improve employee loyalty is to make employees feel like they are an important part of the organization. His report found that only 55 percent of the employees surveyed feel like their organization treats them well. He suggested that an employee feedback system can help raise employee loyalty by providing two-way