normative-commitment

Normative Commitment

Normative Commitment represents an employee’s commitment to an organization based on a feeling of moral and ethical obligation. Unlike other forms of commitment, which may be driven by personal attachment or perceived benefits, Normative Commitment is rooted in the belief that it is ethically correct to remain loyal to the organization.

Key features of Normative Commitment include:

  • Ethical Obligation: Normative Commitment is driven by a sense of ethical responsibility and a belief in the moral correctness of remaining with the organization.
  • Long-Term Perspective: Employees with high levels of Normative Commitment often intend to stay with the organization for an extended duration, viewing it as their ethical duty.
  • Respect for Agreements: Normatively committed employees prioritize honoring their employment agreements and obligations to the organization.
  • Employee’s Sense of Self: Normative Commitment is tied to an employee’s personal sense of integrity and ethical values, reinforcing their commitment to the organization.
  • Positive Organizational Citizenship: Normatively committed employees are more likely to engage in positive organizational citizenship behavior and contribute to the greater good of the organization.

What is Normative Commitment?

Normative commitment is one of the three components of organizational commitment, alongside affective and continuance commitment, as identified by Meyer and Allen. It reflects an employee’s feeling of obligation to stay with an organization due to moral or ethical reasons. This sense of duty often stems from cultural, familial, or organizational norms and values.

Key Characteristics of Normative Commitment

  • Sense of Obligation: Employees feel a moral obligation to stay with their employer.
  • Cultural Influence: Influenced by cultural, familial, and societal norms.
  • Organizational Socialization: Shaped by the organization’s culture, values, and socialization processes.
  • Reciprocity: Often linked to the perceived reciprocity of the employer-employee relationship.

Importance of Understanding Normative Commitment

Understanding and fostering normative commitment is crucial for enhancing employee retention, improving organizational performance, and building a committed workforce.

Enhancing Employee Retention

  • Reduced Turnover: Employees with strong normative commitment are less likely to leave the organization.
  • Stable Workforce: Promotes a stable and consistent workforce.

Improving Organizational Performance

  • Motivation: Employees with high normative commitment are often more motivated and dedicated.
  • Productivity: Enhanced commitment leads to higher productivity and better performance.

Building a Committed Workforce

  • Loyalty: Fosters loyalty and a sense of belonging among employees.
  • Organizational Citizenship: Encourages behaviors that go beyond the job description, benefiting the organization.

Components of Normative Commitment

Normative commitment involves several key components that contribute to an employee’s sense of obligation to stay with their organization.

1. Organizational Socialization

  • Orientation Programs: Effective onboarding and orientation programs that communicate organizational values and norms.
  • Mentorship: Mentorship and support systems that reinforce organizational culture.

2. Cultural and Societal Norms

  • Cultural Expectations: Societal and cultural expectations regarding loyalty and commitment to employers.
  • Familial Influence: Family and community values that stress the importance of fulfilling obligations.

3. Reciprocity and Fairness

  • Perceived Reciprocity: Employees’ perception of fairness and reciprocity in the employer-employee relationship.
  • Supportive Environment: Providing a supportive and fair work environment that fosters a sense of obligation.

4. Ethical and Moral Considerations

  • Moral Obligations: Personal values and ethics that emphasize loyalty and duty.
  • Moral Reasoning: Employees’ moral reasoning processes that influence their commitment levels.

Measurement Methods for Normative Commitment

Several methods can be used to measure normative commitment effectively, each offering different strategies and tools.

1. Surveys and Questionnaires

  • Standardized Scales: Using standardized scales such as the Meyer and Allen Organizational Commitment Questionnaire (OCQ) to assess normative commitment.
  • Customized Surveys: Developing customized surveys that include questions specific to the organization’s context and culture.

2. Interviews and Focus Groups

  • In-Depth Interviews: Conducting in-depth interviews with employees to explore their sense of obligation and commitment.
  • Focus Groups: Facilitating focus groups to gather qualitative data on employees’ normative commitment.

3. Behavioral Observations

  • Retention Rates: Analyzing retention rates and turnover data to infer levels of normative commitment.
  • Employee Engagement: Observing behaviors that indicate a strong sense of obligation, such as participation in voluntary activities and organizational citizenship behaviors.

4. Feedback Mechanisms

  • Regular Feedback: Implementing regular feedback mechanisms to understand employees’ feelings of obligation and commitment.
  • 360-Degree Feedback: Using 360-degree feedback to gather perspectives from peers, subordinates, and supervisors.

Benefits of Fostering Normative Commitment

Fostering normative commitment offers numerous benefits, including enhanced employee retention, improved organizational performance, and a positive organizational culture.

Enhanced Employee Retention

  • Lower Turnover: Reduces turnover rates by fostering a sense of loyalty and obligation.
  • Talent Retention: Helps retain top talent and reduce recruitment costs.

Improved Organizational Performance

  • Motivated Workforce: Employees with high normative commitment are more motivated and dedicated.
  • Higher Productivity: Leads to increased productivity and better performance outcomes.

Positive Organizational Culture

  • Loyalty and Belonging: Creates a culture of loyalty and belonging among employees.
  • Engagement: Encourages higher levels of employee engagement and participation.

Organizational Citizenship

  • Extra-Role Behaviors: Promotes behaviors that go beyond the job description, benefiting the organization.
  • Supportive Environment: Fosters a supportive and collaborative work environment.

Challenges of Fostering Normative Commitment

Despite its benefits, fostering normative commitment presents several challenges that need to be managed for successful implementation.

Cultural and Societal Influences

  • Diverse Values: Navigating diverse cultural and societal values that influence employees’ sense of obligation.
  • Generational Differences: Addressing generational differences in attitudes towards loyalty and commitment.

Organizational Consistency

  • Consistency in Values: Ensuring consistency in organizational values and practices to build trust and commitment.
  • Leadership Alignment: Aligning leadership actions with organizational values and commitments.

Fairness and Reciprocity

  • Perceived Fairness: Maintaining perceived fairness and reciprocity in the employer-employee relationship.
  • Addressing Inequities: Addressing any perceived inequities or unfair treatment promptly.

Measuring Commitment

  • Subjectivity: Managing the subjectivity and variability in measuring normative commitment.
  • Data Interpretation: Interpreting qualitative data and behavioral observations accurately.

Best Practices for Fostering Normative Commitment

Implementing best practices can help effectively manage and overcome challenges, maximizing the benefits of normative commitment.

Develop Strong Organizational Socialization Programs

  • Effective Onboarding: Implement comprehensive onboarding programs that communicate organizational values and norms.
  • Mentorship and Support: Establish mentorship and support systems to reinforce organizational culture.

Promote Fairness and Reciprocity

  • Fair Treatment: Ensure fair treatment and equity in all organizational practices and policies.
  • Reciprocity: Foster a sense of reciprocity by recognizing and rewarding employee contributions.

Align Leadership and Organizational Values

  • Leadership Example: Ensure leaders demonstrate commitment to organizational values and norms.
  • Consistent Actions: Align leadership actions with the organization’s ethical and moral standards.

Foster a Supportive Work Environment

  • Supportive Culture: Create a supportive and collaborative work environment that values employee well-being.
  • Open Communication: Encourage open communication and regular feedback to understand and address employee concerns.

Implement Effective Measurement Tools

  • Comprehensive Surveys: Use comprehensive surveys and standardized scales to measure normative commitment.
  • Qualitative Methods: Incorporate qualitative methods, such as interviews and focus groups, to gain deeper insights.

Future Trends in Normative Commitment

Several trends are likely to shape the future of normative commitment and its applications in organizational behavior.

Digital Transformation

  • Remote Work: Navigating the impact of remote work on employees’ sense of obligation and commitment.
  • Digital Onboarding: Leveraging digital tools for onboarding and socialization processes.

Sustainability Integration

  • Corporate Social Responsibility: Integrating corporate social responsibility (CSR) initiatives to enhance employees’ sense of ethical obligation.
  • Sustainable Practices: Promoting sustainable practices that align with employees’ values.

Diversity and Inclusion

  • Inclusive Culture: Building an inclusive culture that respects and values diverse perspectives.
  • Equity: Ensuring equity and fairness in all organizational practices.

Employee Well-Being

  • Work-Life Balance: Promoting work-life balance to enhance employee well-being and commitment.
  • Mental Health: Supporting mental health and well-being initiatives to foster a supportive environment.

Agile and Adaptive Organizations

  • Agile Practices: Implementing agile practices to enhance organizational adaptability and responsiveness.
  • Continuous Learning: Encouraging continuous learning and development to foster commitment.

Conclusion

Normative commitment is a crucial component of organizational commitment that reflects an employee’s sense of obligation to remain with their organization. By understanding the key components, measurement methods, benefits, and challenges of normative commitment, organizations can develop effective strategies to enhance employee retention, improve organizational performance, and build a committed workforce. Implementing best practices such as developing strong organizational socialization programs, promoting fairness and reciprocity, aligning leadership and organizational values, fostering a supportive work environment, and implementing effective measurement tools can help maximize the benefits of normative commitment.

Read Next: Organizational Structure.

Types of Organizational Structures

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Organizational Structures

Siloed Organizational Structures

Functional

functional-organizational-structure
In a functional organizational structure, groups and teams are organized based on function. Therefore, this organization follows a top-down structure, where most decision flows from top management to bottom. Thus, the bottom of the organization mostly follows the strategy detailed by the top of the organization.

Divisional

divisional-organizational-structure

Open Organizational Structures

Matrix

matrix-organizational-structure

Flat

flat-organizational-structure
In a flat organizational structure, there is little to no middle management between employees and executives. Therefore it reduces the space between employees and executives to enable an effective communication flow within the organization, thus being faster and leaner.

Connected Business Frameworks

Portfolio Management

project-portfolio-matrix
Project portfolio management (PPM) is a systematic approach to selecting and managing a collection of projects aligned with organizational objectives. That is a business process of managing multiple projects which can be identified, prioritized, and managed within the organization. PPM helps organizations optimize their investments by allocating resources efficiently across all initiatives.

Kotter’s 8-Step Change Model

kotters-8-step-change-model
Harvard Business School professor Dr. John Kotter has been a thought-leader on organizational change, and he developed Kotter’s 8-step change model, which helps business managers deal with organizational change. Kotter created the 8-step model to drive organizational transformation.

Nadler-Tushman Congruence Model

nadler-tushman-congruence-model
The Nadler-Tushman Congruence Model was created by David Nadler and Michael Tushman at Columbia University. The Nadler-Tushman Congruence Model is a diagnostic tool that identifies problem areas within a company. In the context of business, congruence occurs when the goals of different people or interest groups coincide.

McKinsey’s Seven Degrees of Freedom

mckinseys-seven-degrees
McKinsey’s Seven Degrees of Freedom for Growth is a strategy tool. Developed by partners at McKinsey and Company, the tool helps businesses understand which opportunities will contribute to expansion, and therefore it helps to prioritize those initiatives.

Mintzberg’s 5Ps

5ps-of-strategy
Mintzberg’s 5Ps of Strategy is a strategy development model that examines five different perspectives (plan, ploy, pattern, position, perspective) to develop a successful business strategy. A sixth perspective has been developed over the years, called Practice, which was created to help businesses execute their strategies.

COSO Framework

coso-framework
The COSO framework is a means of designing, implementing, and evaluating control within an organization. The COSO framework’s five components are control environment, risk assessment, control activities, information and communication, and monitoring activities. As a fraud risk management tool, businesses can design, implement, and evaluate internal control procedures.

TOWS Matrix

tows-matrix
The TOWS Matrix is an acronym for Threats, Opportunities, Weaknesses, and Strengths. The matrix is a variation on the SWOT Analysis, and it seeks to address criticisms of the SWOT Analysis regarding its inability to show relationships between the various categories.

Lewin’s Change Management

lewins-change-management-model
Lewin’s change management model helps businesses manage the uncertainty and resistance associated with change. Kurt Lewin, one of the first academics to focus his research on group dynamics, developed a three-stage model. He proposed that the behavior of individuals happened as a function of group behavior.

Organizational Structure Case Studies

OpenAI Organizational Structure

openai-organizational-structure
OpenAI is an artificial intelligence research laboratory that transitioned into a for-profit organization in 2019. The corporate structure is organized around two entities: OpenAI, Inc., which is a single-member Delaware LLC controlled by OpenAI non-profit, And OpenAI LP, which is a capped, for-profit organization. The OpenAI LP is governed by the board of OpenAI, Inc (the foundation), which acts as a General Partner. At the same time, Limited Partners comprise employees of the LP, some of the board members, and other investors like Reid Hoffman’s charitable foundation, Khosla Ventures, and Microsoft, the leading investor in the LP.

Airbnb Organizational Structure

airbnb-organizational-structure
Airbnb follows a holacracy model, or a sort of flat organizational structure, where teams are organized for projects, to move quickly and iterate fast, thus keeping a lean and flexible approach. Airbnb also moved to a hybrid model where employees can work from anywhere and meet on a quarterly basis to plan ahead, and connect to each other.

Amazon Organizational Structure

amazon-organizational-structure
The Amazon organizational structure is predominantly hierarchical with elements of function-based structure and geographic divisions. While Amazon started as a lean, flat organization in its early years, it transitioned into a hierarchical organization with its jobs and functions clearly defined as it scaled.

Apple Organizational Structure

apple-organizational-structure
Apple has a traditional hierarchical structure with product-based grouping and some collaboration between divisions.

Coca-Cola Organizational Structure

coca-cola-organizational-structure
The Coca-Cola Company has a somewhat complex matrix organizational structure with geographic divisions, product divisions, business-type units, and functional groups.

Costco Organizational Structure

costco-organizational-structure
Costco has a matrix organizational structure, which can simply be defined as any structure that combines two or more different types. In this case, a predominant functional structure exists with a more secondary divisional structure. Costco’s geographic divisions reflect its strong presence in the United States combined with its expanding global presence. There are six divisions in the country alone to reflect its standing as the source of most company revenue. Compared to competitor Walmart, for example, Costco takes more a decentralized approach to management, decision-making, and autonomy. This allows the company’s stores and divisions to more flexibly respond to local market conditions.

Dell Organizational Structure

dell-organizational-structure
Dell has a functional organizational structure with some degree of decentralization. This means functional departments share information, contribute ideas to the success of the organization and have some degree of decision-making power.

eBay Organizational Structure

ebay-organizational-structure
eBay was until recently a multi-divisional (M-form) organization with semi-autonomous units grouped according to the services they provided. Today, eBay has a single division called Marketplace, which includes eBay and its international iterations.

Facebook Organizational Structure

facebook-organizational-structure
Facebook is characterized by a multi-faceted matrix organizational structure. The company utilizes a flat organizational structure in combination with corporate function-based teams and product-based or geographic divisions. The flat organization structure is organized around the leadership of Mark Zuckerberg, and the key executives around him. On the other hand, the function-based teams are based on the main corporate functions (like HR, product management, investor relations, and so on).

Goldman Sachs’ Organizational Structure

goldman-sacks-organizational-structures
Goldman Sachs has a hierarchical structure with a clear chain of command and defined career advancement process. The structure is also underpinned by business-type divisions and function-based groups.

Google Organizational Structure

google-organizational-structure
Google (Alphabet) has a cross-functional (team-based) organizational structure known as a matrix structure with some degree of flatness. Over the years, as the company scaled and it became a tech giant, its organizational structure is morphing more into a centralized organization.

IBM Organizational Structure

ibm-organizational-structure
IBM has an organizational structure characterized by product-based divisions, enabling its strategy to develop innovative and competitive products in multiple markets. IBM is also characterized by function-based segments that support product development and innovation for each product-based division, which include Global Markets, Integrated Supply Chain, Research, Development, and Intellectual Property.

McDonald’s Organizational Structure

mcdonald-organizational-structure
McDonald’s has a divisional organizational structure where each division – based on geographical location – is assigned operational responsibilities and strategic objectives. The main geographical divisions are the US, internationally operated markets, and international developmental licensed markets. And on the other hand, the hierarchical leadership structure is organized around regional and functional divisions.

McKinsey Organizational Structure

mckinsey-organizational-structure
McKinsey & Company has a decentralized organizational structure with mostly self-managing offices, committees, and employees. There are also functional groups and geographic divisions with proprietary names.

Microsoft Organizational Structure

microsoft-organizational-structure
Microsoft has a product-type divisional organizational structure based on functions and engineering groups. As the company scaled over time it also became more hierarchical, however still keeping its hybrid approach between functions, engineering groups, and management.

Nestlé Organizational Structure

nestle-organizational-structure
Nestlé has a geographical divisional structure with operations segmented into five key regions. For many years, Swiss multinational food and drink company Nestlé had a complex and decentralized matrix organizational structure where its numerous brands and subsidiaries were free to operate autonomously.

Nike Organizational Structure

nike-organizational-structure
Nike has a matrix organizational structure incorporating geographic divisions. Nike’s matrix structure is also present at the regional and sub-regional levels. Managerial responsibility is segmented according to business unit (apparel, footwear, and equipment) and function (human resources, finance, marketing, sales, and operations).

Patagonia Organizational Structure

patagonia-organizational-structure
Patagonia has a particular organizational structure, where its founder, Chouinard, disposed of the company’s ownership in the hands of two non-profits. The Patagonia Purpose Trust, holding 100% of the voting stocks, is in charge of defining the company’s strategic direction. And the Holdfast Collective, a non-profit, holds 100% of non-voting stocks, aiming to re-invest the brand’s dividends into environmental causes.

Samsung Organizational Structure

samsung-organizational-structure (1)
Samsung has a product-type divisional organizational structure where products determine how resources and business operations are categorized. The main resources around which Samsung’s corporate structure is organized are consumer electronics, IT, and device solutions. In addition, Samsung leadership functions are organized around a few career levels grades, based on experience (assistant, professional, senior professional, and principal professional).

Sony Organizational Structure

sony-organizational-structure
Sony has a matrix organizational structure primarily based on function-based groups and product/business divisions. The structure also incorporates geographical divisions. In 2021, Sony announced the overhauling of its organizational structure, changing its name from Sony Corporation to Sony Group Corporation to better identify itself as the headquarters of the Sony group of companies skewing the company toward product divisions.

Starbucks Organizational Structure

starbucks-organizational-structure
Starbucks follows a matrix organizational structure with a combination of vertical and horizontal structures. It is characterized by multiple, overlapping chains of command and divisions.

Tesla Organizational Structure

tesla-organizational-structure
Tesla is characterized by a functional organizational structure with aspects of a hierarchical structure. Tesla does employ functional centers that cover all business activities, including finance, sales, marketing, technology, engineering, design, and the offices of the CEO and chairperson. Tesla’s headquarters in Austin, Texas, decide the strategic direction of the company, with international operations given little autonomy.

Toyota Organizational Structure

toyota-organizational-structure
Toyota has a divisional organizational structure where business operations are centered around the market, product, and geographic groups. Therefore, Toyota organizes its corporate structure around global hierarchies (most strategic decisions come from Japan’s headquarter), product-based divisions (where the organization is broken down, based on each product line), and geographical divisions (according to the geographical areas under management).

Walmart Organizational Structure

walmart-organizational-structure
Walmart has a hybrid hierarchical-functional organizational structure, otherwise referred to as a matrix structure that combines multiple approaches. On the one hand, Walmart follows a hierarchical structure, where the current CEO Doug McMillon is the only employee without a direct superior, and directives are sent from top-level management. On the other hand, the function-based structure of Walmart is used to categorize employees according to their particular skills and experience.

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