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CHAPTER 2. LITERATURE REVIEW

2.4 The commitment of organization

2.4.1 Commitment of the organization to work

Duties and responsibilities of staff are clearly defined will help employees become more interested and more responsible work. The division of responsibilities and powers makes clear test of leadership less difficult. The management will take advantage of all the resources and increase productivity. When done correctly, this process will help managers reduce staff time guide or resolve difficulties in the implementation process work. Helping employees understand the expectations will help them to work more independently. Identify difficulties, obstacles in the implementation process work can improve productivity (Shore & Martin, 1989). Governance process conducted for employees performing work under the objectives and requirements of the the agency.

However, if done incorrectly, it can cause anger, frustration and feeling unfairly the agency. It should set specific goals for each individual as well as collective and group work. This increasing collaboration among employees in the group, in departments and enterprises. Whereby the spirit of unity among employees, employee loyalty now add more cohesive. Tasks need to match the skills and strengths of employees. This factor is

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no less important to assess the level of job satisfaction. Superior assigned to them based on the capacity and understanding in their field of expertise. When you have these privileges, they will find their place in the company really important and would love to do more the work being (Rhoades & Armeli, 2001).

The promoted, creating opportunities for advancement for employees to help them identify new opportunities for professional development, and even more new challenges still await them in front. Rotation of staff to the new location, a new role also helps businesses fill in the blanks of senior personnel in the business, take advantage of the ability to work excellent employees within the enterprise .

2.4.2 Commitment of training and development

Today, the life of the workers has improved markedly, educated, professional and vocational skills of workers been enhanced, employees desire not only the physical elements but also want to have the opportunity to advance their career, doing the job with challenging, interesting. Thus, the commitment of the organization to employees in training is very important. Training to be understood that the learning activities to help employees can perform more effectively functions, their duties. It is the process of learning to make employees more firm grasp on their work. It is the learning activities to improve skills of employees to perform tasks more efficient (Legge, 2005). Development:

Learning activities are beyond the scope of the work ahead of workers, in order to open up to them new jobs based on the future direction of the organization. The importance of training personnel: In this age of science and technology developing rapidly, the competition between countries and companies increasingly fierce.

The competition that shown on all aspects: technology, management, finance, quality, price, etc. But most of all, factors behind all human competition. Practice has shown that competitors can copy all the secrets of the company's product, technology, etc.

The only investment in human factors that prevent competitors copying their secret. Due to practical, the research problem situation and solutions to develop human resources is always a hot topic on the forum of information and international studies. People are important inputs of the production process, the level of development of human resources development advantage of every business. In the field, the man stood in the center.

Interested in human development will contribute to ensuring the development of the

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country because the development of human resources is the measure of economic growth, social each country. In the trend of globalization, businesses are opening up many opportunities for development. The development of enterprises to promote the development of both countries. However, this is also a challenge for enterprises to survive and develop businesses to compete, it also means businesses have to promote their advantages. The quality of human resources is the leading edge by humans is an invaluable resource. So, Training and Workforce Development is an important task not only a business but also the duty of the country. Training and development of human resources require costly in time and cost. But the commitment to this work will bring competitive position for businesses to ensure business sustainability (Schuler, Budhwar &

Florkowski, 2002).

2.4.3 Commitment of colleagues

In a work environment, colleagues elements can be considered as one of the elements that can provide 90% of the performance of a task. The Grensler said fellow employees ready to help, to share, with a high spirit of cooperation will bring higher job performance of employees not support colleagues. From which to see elements colleagues also contributed to bring satisfaction to employees when they work in the organization and this factor also contributed in no small part to the sustainable development of the organization. Therefore, organizations must commit to making the rules, labor regulations to implement staff. These regulations, guidelines are factors evident written in organizations such as labor rules (Tansley & Newell, 2007). The rules and principles have been read and understand carefully by all employees before joining the group function. These rules and principles is a fundamental component constitutes routines, habit of giving each employee at work. But to make this a habit or routine, organizations also need to know the appropriate use, flexible avoid too rigid principles to create comfort and satisfaction of the employees. Satisfaction from the staff of the organization also derived from the organization to apply the principles stipulated that they did not feel like surveillance, detention, did not feel the carefully calculated that they feel while at the same institution as their main home. The set of feel from satisfied members in this factor is not difficult but requires organizations to capture the sentiment of each employee, applying the principles prescribed to individuals so that they feel most happy and safe (Ulrich, 1998).

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2.4.4 Commitment to leadership

Leadership style is typical of the type of activity leaders are formed on the basis of close cooperation and dialectical interaction between subjective psychological factors of leadership and social environmental factors in management systems. According to K.

Levin (1939), American psychologists have 3 types of basic leadership styles:

- Arbitrary leadership style: characterized by concentrating all power in his hands a manager, leader - managed by his willpower, crack down and initiative of all members in the organization.

- Laissez-fair leadership style: the management plan outlines only general, less direct participation, often assigned to subordinates and do other things at the office. Only work directly with people or collective management in special cases (Porter & Lawler , 1968).

- Democratic leadership style: characterized by division managers know their power management, junior enlisted comments, put them involved in the decision drafted.

Type leaders also create favorable conditions for those who are subordinate to promote initiatives, participate in the planning and implementation of the plan, and create atmosphere in positive psychology management process.

Leadership style effects which evoked potentials within the staff. A leadership style appropriate to facilitate employees to maximize their potential in the process of implementing the work of the organization. That's views, attitudes, help managers during employee job performance. This effects breaking down barriers to employee job done smoothly, providing them with the information and skills necessary for their work order management, master of his work with the enthusiasm and motivation high. The leader helps build trust in employees. There is hard work seemed impossible to fulfill, or work with the probability of success is limited at that time the leadership style of managers have a huge effect is building confidence, cheer, encourage workers conducted by the actions and policies appropriate. Even willing to accept bad situation can occur if the job fails. Helping employees feel confident when doing work, promote the importance of their work for the organization.

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2.4.5 Commitment on wages

As the organization's commitment to the amount paid to the employee a fixed and regular in a unit of time (day, month, year). Currently in business there are many different ways payroll:

- Pay with time is a form of pay to employees based on actual time working

- Pay by product is a form of pay to employees based on the quantity and quality of output. This form represents the labor remuneration paid to employees based on the unit price and the actual output that employees complete and achieve quality requirements was predetermined.

- Allowances salary: the money returns to labor is in addition to the basic salary, additional and more to compensate employees working in unstable conditions or unfavorable but not taken into account when determining the basic salary . Additionally, in fact there is a different kind of allowance, the allowance is not salary, the calculation does not depend on the wage workers such as moving allowances, subsistence, etc ...

Most of the account allowances are calculated on the basis of assessing the impact of the work environment. Allowance significantly stimulate the labor done a good job in difficult conditions, more complex than usual (Becker and Huselid, 2006).

- Bonus: a form of stimulus material has very positive effects on workers strive to do the job better. In fact, businesses can apply some or all types of bonus: bonus material savings, increased productivity bonuses, bonus initiative and bonus plans fulfilled, gaining the bonus suppliers, consumption, has signed a new contract; rewards for loyalty, devotion now.

2.4.6 Commitment on benefits

Benefits is an indirect remuneration to be paid as the support of life for employees.

The types of benefits that workers enjoy very diverse and depends on many different factors such as government regulations and practices of the people, the level of economic development and financial capabilities, the specific circumstances of business. Benefits expressed concern to the life of the enterprise workers, have a stimulating effect on employee loyalty and attachment to the business. Benefits of enterprise include: social insurance and health insurance, retirement, vacation, holidays, lunch, grants to employees when in trouble, increase employee gifts for birthday , weddings, Longevity parents employees. The abolition of centralized mechanism bureaucratic, institutional

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development-oriented market economy with socialist economic sector participation requires implementation of new perspectives, policies and solutions new social welfare.

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