What is organizational commitment?

Organizational commitment refers to the emotional or psychological attachment an employee has to their organization. This concept encompasses the extent to which employees feel loyal to, engaged with, and bonded to their organization. High levels of organizational commitment can lead to increased job satisfaction, greater motivation, and a desire to stay with the company, promoting overall organizational effectiveness.

In contrast, the other options present different aspects of employment without capturing the essence of commitment. The financial investment aspect pertains more to the resources an employee allocates to the organization rather than emotional ties. A formal agreement focuses on the contractual obligations rather than the intrinsic feelings of loyalty or attachment that characterize commitment. The level of performance centers around the expected contributions of an employee rather than their emotional connection to the organization itself. Therefore, understanding organizational commitment as an emotional bond is key to recognizing how it influences employee behavior and organizational success.