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Types of organizational commitment

3.1 – Which type of organizational commitment (affective, continuance or normative) do you think is most important to the majority of employees? Which do I think is most important to me?

3.3 – Consider times when you’ve reacted to a negative with exit, voice, loyalty or neglect. What was it about the situation that caused you to respond the way you did? Do you usually respond to negative events in the same way, or does your response vary across the four options? Please share a specific example (names may be changed) and why you chose one of the four reactions (and how that manifested).

3.5 – Can you think of reasons the increased diversity of the workforce might actually increase organizational commitment? Why? Which of the three types of commitment might explain that sort of result?

3.6 – Studies suggest that decades of downsizing have lowered organizational commitment levels. Can you think of a way that an organization can conduct layoffs without harming the commitment of the survivors? How?

Sample Solution

reluctance to buy imports and greater competitiveness due to undervalued Japanese Yen continues to produce a current account surplus where the exports exceeds imports. Based on PPP, the Japanese Yen is under valued at $-2.52 against the Australian dollar (reference) allowing the exporters to access goods and services at lower prices due to higher purchasing power. On the other hand, the current account surplus increases the supply of foreign currencies in the market driving the exchange rate down in the long run, but the low interest rates are driving the demand for the JPY up and therefore for the value is appreciating in the short run. Political stability has ensured economic stability in Japan where the elected Prime Minister Shinzo Abe in 2013 outlined his audacious set of economic policies to boost growth and bring about inflation. The use of fiscal expansion, monetary easing and government intervention through structural reforms has shown slight economic improvement in Japan. Moderate growth followed by increase in net trade with low level of unemployment continues to improve the current economic environment of Japan. Productivity is to grow by 2.2% by 2020 and the movements in bonds and the currency market japan is perceived as a safe haven by investors in times of economic conflicts in the world. Despite the world’s largest debt to GDP ratio followed by the slow domestic growth due its decade long deflation, Japan is considered a safe-have given its current account surplus, low level of unemployment and strong Japanese Yen as a direct result of net trade. Political stability in Japan despite current trade conflicts around the world has given investors and consumers cheaper alternatives to exports goods and services with higher purchasing power due to the undervalued JPY. While it is expected for the value of the JPY to drop against the USD in the long run, Japans’ lenience in monetary policy and boost fiscal policies to promote domestic growth and improve inflation will ensure future economic opportunities and prosperity for the domestic and foreign companies.

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