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Employee loyalty in the new millennium

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... Loyalty is a psychological state of the relation between the organization and its employee (Allen & Grisaffe, 2001) which strengthens the employee's decision to continue with the organization. Coughlan (2005) suggests that because of this implicit promise, the employee abides by global moral principles while striving to achieve individual and collective goals (Becker et al., 1996;Powers, 2000;Wu & Norman, 2006). Concerning different stakeholders, an exhibition of employee loyalty includes loyalty to the company, job, supervisors and co-workers (Powers, 2000). ...
... Coughlan (2005) suggests that because of this implicit promise, the employee abides by global moral principles while striving to achieve individual and collective goals (Becker et al., 1996;Powers, 2000;Wu & Norman, 2006). Concerning different stakeholders, an exhibition of employee loyalty includes loyalty to the company, job, supervisors and co-workers (Powers, 2000). Loyalty is a characteristic visualized in terms of person-workplace interaction. ...
... Hence, it becomes pertinent to understand employee loyalty in the workplace (Wan, 2012). Thus, employee loyalty can be defined staying with the company rather than searching for jobs, working late to complete an assignment, not divulging confidential information of the company, advocating, abiding by rules in the absence of strict monitoring, prioritizing company goals over individual achievements, abstaining from spreading incorrect information or refraining from making profit from company's resources, buying company's products and advocating them to the community, contributing in charities sponsored by the organization, suggesting improvement, participating beyond expected role behaviour, assisting co-workers in achieving their goals, following orders and not taking undue advantage of any policy (Powers, 2000). ...
Article
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This study investigated the relationship between worker competence and employee loyalty of deposit money banks in Rivers State. A cross-sectional research design was adopted in the study. Two hundred and thirty-three (232) copies of the questionnaire were obtained and analyzed from the field survey. Spearman's Rank Order Correlation Coefficient statistical tool was used to find out the relationship that exists between the variables. The findings revealed a significant relationship between worker competence and measures of employee loyalty (trust, willingness to stay, and sense of ownership). It is concluded that worker competence is significantly related to employee loyalty of deposit money banks in Rivers State. The study recommended that the surveyed banks should strive to hire competent staff to manage the affairs of the organization as this will encourage healthy competition among employees and also promote honesty and teamwork among employees as this will lead to greater employee satisfaction.
... But the business environment progressed and could be described as ever-changing hereafter. Mergers and acquisitions, restructuring, outsourcing, and buyouts are just a few examples of what became economic reality (Grosman 1989;Powers 2000). Hence, the traditional view on employee loyalty could no longer be applied (Kumar and Shekhar 2012). ...
... Besides loyalty to the career or the job, work-related loyalty of an employee is determined mainly by the loyalty to the company, the coworkers, and the supervisor (Powers 2000). The same is shown in Fig. 3.1, where employee loyalty as an OB research object is shown on an organizational level, toward the organization, on a group level, toward the working group, and on a dyadic level, toward the supervisor. ...
... Conversely, employee loyalty represents a behavior as much as it represents an attitude Powers 2000;Wan 2012;Guillon and Cezanne 2014). The moral (cognitive) and the emotional (affective) parts of employee loyalty ) are difficult to capture and compare, whereas the behavioral part is easier to capture, but difficult to interpret (Guillon and Cezanne 2014). ...
Chapter
In order to contribute to a more holistic understanding of employee loyalty, the concept and components of employee loyalty are derived and explained in this chapter. The loyalty of employees has different antecedents and breaks down into loyalty toward the supervisor, working group, and organization. These loyalties and further multiple loyalties of a person might compete with each other and are contingent on the situation. As a result, positive and negative human outcomes become visible. Many different theories make a valuable contribution to the theoretical foundation of employee loyalty and distinguish it from related concepts such as organizational commitment. Most intensively applied theories are social and organizational identity theory, social exchange theory, and theory of psychological contract. Besides these three theories and the concept, the evolvement of employee loyalty as a research subject is presented.
... But the business environment progressed and could be described as ever-changing hereafter. Mergers and acquisitions, restructuring, outsourcing, and buyouts are just a few examples of what became economic reality (Grosman 1989;Powers 2000). Hence, the traditional view on employee loyalty could no longer be applied (Kumar and Shekhar 2012). ...
... Besides loyalty to the career or the job, work-related loyalty of an employee is determined mainly by the loyalty to the company, the coworkers, and the supervisor (Powers 2000). The same is shown in Fig. 3.1, where employee loyalty as an OB research object is shown on an organizational level, toward the organization, on a group level, toward the working group, and on a dyadic level, toward the supervisor. ...
... Conversely, employee loyalty represents a behavior as much as it represents an attitude Powers 2000;Wan 2012;Guillon and Cezanne 2014). The moral (cognitive) and the emotional (affective) parts of employee loyalty ) are difficult to capture and compare, whereas the behavioral part is easier to capture, but difficult to interpret (Guillon and Cezanne 2014). ...
Chapter
Organizational Behavior (OB) represents a research field that investigates behaviors in organizations and applies this knowledge to improve the effectiveness of organizations. OB is considered an applied science. Albeit it shows strong application for managers and practitioners, it is based on profound theories. Especially in the service industry, where the product is created simultaneously in contact with the customer, the behavior of the employees decides upon success or failure of the service company. Due to the high relevance of the three topics, OB as a research field, its theoretical foundation, and employees in the service industry, these are presented in this chapter.
... But the business environment progressed and could be described as ever-changing hereafter. Mergers and acquisitions, restructuring, outsourcing, and buyouts are just a few examples of what became economic reality (Grosman 1989;Powers 2000). Hence, the traditional view on employee loyalty could no longer be applied (Kumar and Shekhar 2012). ...
... Besides loyalty to the career or the job, work-related loyalty of an employee is determined mainly by the loyalty to the company, the coworkers, and the supervisor (Powers 2000). The same is shown in Fig. 3.1, where employee loyalty as an OB research object is shown on an organizational level, toward the organization, on a group level, toward the working group, and on a dyadic level, toward the supervisor. ...
... Conversely, employee loyalty represents a behavior as much as it represents an attitude Powers 2000;Wan 2012;Guillon and Cezanne 2014). The moral (cognitive) and the emotional (affective) parts of employee loyalty ) are difficult to capture and compare, whereas the behavioral part is easier to capture, but difficult to interpret (Guillon and Cezanne 2014). ...
Chapter
Literature reviews reveal that culture has a substantial, non-negligible impact on work behavior, company structures, and economic success. However, models applied for research on culture are shown not to converge and in fact are contradictory to some extent. For this reason, this chapter briefly presents culture as a research field as well as its theoretical foundations of cultural dimensions and cultural standards. This chapter highlights the characteristics of employee loyalty in a European (German) as well as in an East Asian (Chinese) cultural context.
... But the business environment progressed and could be described as ever-changing hereafter. Mergers and acquisitions, restructuring, outsourcing, and buyouts are just a few examples of what became economic reality (Grosman 1989;Powers 2000). Hence, the traditional view on employee loyalty could no longer be applied (Kumar and Shekhar 2012). ...
... Besides loyalty to the career or the job, work-related loyalty of an employee is determined mainly by the loyalty to the company, the coworkers, and the supervisor (Powers 2000). The same is shown in Fig. 3.1, where employee loyalty as an OB research object is shown on an organizational level, toward the organization, on a group level, toward the working group, and on a dyadic level, toward the supervisor. ...
... Conversely, employee loyalty represents a behavior as much as it represents an attitude Powers 2000;Wan 2012;Guillon and Cezanne 2014). The moral (cognitive) and the emotional (affective) parts of employee loyalty ) are difficult to capture and compare, whereas the behavioral part is easier to capture, but difficult to interpret (Guillon and Cezanne 2014). ...
Chapter
The employee loyalty research model predicts that employee loyalty is likely to provoke positive human outputs as well as negative ones. Positive effects of employee loyalty are well known and in many cases empirically proven. The main positive outcomes can be divided into how loyal employees solute conflicts, how they affect employee retention, in what way they influence the service mentality, how much work effort they put in, and what kind of work mindset they portray. However, empirical results for negative outcomes of employee loyalty are rare. According to the continuum of employee loyalty, individuals representing the levels “disloyal,” “non-loyal,” or “hyper-loyal” might show negative and undesired effects such as resistance to change, willingness to leave, counter-productive work behavior, work overload, or groupthink.
... But the business environment progressed and could be described as ever-changing hereafter. Mergers and acquisitions, restructuring, outsourcing, and buyouts are just a few examples of what became economic reality (Grosman 1989;Powers 2000). Hence, the traditional view on employee loyalty could no longer be applied (Kumar and Shekhar 2012). ...
... Besides loyalty to the career or the job, work-related loyalty of an employee is determined mainly by the loyalty to the company, the coworkers, and the supervisor (Powers 2000). The same is shown in Fig. 3.1, where employee loyalty as an OB research object is shown on an organizational level, toward the organization, on a group level, toward the working group, and on a dyadic level, toward the supervisor. ...
... Conversely, employee loyalty represents a behavior as much as it represents an attitude Powers 2000;Wan 2012;Guillon and Cezanne 2014). The moral (cognitive) and the emotional (affective) parts of employee loyalty ) are difficult to capture and compare, whereas the behavioral part is easier to capture, but difficult to interpret (Guillon and Cezanne 2014). ...
Book
This book aims to provide a deeper understanding of the concept and negative outcomes of employee loyalty, considering employees in organizations and OB theory, and comparing employee experiences across both European and East Asian cultures. Through an international analysis of employee loyalty within the service industry, the author highlights the importance of this highly relevant but often overlooked topic to addressing practical issues such as conflict solution, employee retention, service mentality, and work effort. Building on a clear definition and evaluation of the concept of employee loyalty, this book explores meaningful theoretical and practical implications of employee views of the organization, working group, and supervisor.
... But the business environment progressed and could be described as ever-changing hereafter. Mergers and acquisitions, restructuring, outsourcing, and buyouts are just a few examples of what became economic reality (Grosman 1989;Powers 2000). Hence, the traditional view on employee loyalty could no longer be applied (Kumar and Shekhar 2012). ...
... Besides loyalty to the career or the job, work-related loyalty of an employee is determined mainly by the loyalty to the company, the coworkers, and the supervisor (Powers 2000). The same is shown in Fig. 3.1, where employee loyalty as an OB research object is shown on an organizational level, toward the organization, on a group level, toward the working group, and on a dyadic level, toward the supervisor. ...
... Conversely, employee loyalty represents a behavior as much as it represents an attitude Powers 2000;Wan 2012;Guillon and Cezanne 2014). The moral (cognitive) and the emotional (affective) parts of employee loyalty ) are difficult to capture and compare, whereas the behavioral part is easier to capture, but difficult to interpret (Guillon and Cezanne 2014). ...
Chapter
As empirical research is not capable of interpreting concepts, the structure of an empirical investigation is particularly relevant. This chapter starts with qualitative preliminary investigations that lead to hypotheses regarding the employee loyalty concept, negative outcomes, and intercultural comparison. The following measurement review of employee loyalty studies points out the dissemination of self-assessment questionnaires. Finally, the design of the German and the Chinese questionnaire is presented together with the sample structure, the applied employee loyalty items, and the analysis methods.
... But the business environment progressed and could be described as ever-changing hereafter. Mergers and acquisitions, restructuring, outsourcing, and buyouts are just a few examples of what became economic reality (Grosman 1989;Powers 2000). Hence, the traditional view on employee loyalty could no longer be applied (Kumar and Shekhar 2012). ...
... Besides loyalty to the career or the job, work-related loyalty of an employee is determined mainly by the loyalty to the company, the coworkers, and the supervisor (Powers 2000). The same is shown in Fig. 3.1, where employee loyalty as an OB research object is shown on an organizational level, toward the organization, on a group level, toward the working group, and on a dyadic level, toward the supervisor. ...
... Conversely, employee loyalty represents a behavior as much as it represents an attitude Powers 2000;Wan 2012;Guillon and Cezanne 2014). The moral (cognitive) and the emotional (affective) parts of employee loyalty ) are difficult to capture and compare, whereas the behavioral part is easier to capture, but difficult to interpret (Guillon and Cezanne 2014). ...
Article
In this research, the new Tripartite Employee Loyalty (TEL) construct is developed and defined. The three crucial reference objects for employee loyalty, supervisor, working group, and organization, have never before been investigated simultaneously. This shortcoming is addressed with a 9-item measure derived from an intensive literature review. Initial construct validity evidence for the TEL construct is provided by an empirical study of 148 employees of a German service company. Applying factor analysis, TEL is shown to be distinct from organizational commitment. With regards to content validity, the present study highlights the importance of differentiating between reference objects when investigating employee loyalty and its outcomes. The selected loyalty outcomes, openness to leave, openness to reapply, and openness to change, differ within the subscales of loyalty to supervisor, loyalty to working group, and loyalty to organization. Correlation and multiple regression results strongly suggest that incomplete or inaccurate conceptualizations of employee loyalty lead the way to incorrect results and misleading interpretations. The resulting theoretical and practical implications are discussed in this paper, along with limitations of the study and recommendations for future research.
... Further Articles Ali et al., 1997Burris et al., 2008Caldwell & Canuto-Carranco, 2010Chen, 2001Chen et al., 1998Grosman, 1989Powers, 2000Stroh & Reilly, 1997bWong et al., 2002 EL is "accepting the boss' goals and values" (Chen et al. 2002, p. 341) EL is to "adhere to universalizable moral principles in pursuit of individual and collective goals" (Coughlan 2005 p. 47) EL is "the degree to which a person identifies with an organization" (Boroff & Lewin 1997, p. 53) Further mainly review articles Cohen, 2007Meyer & Allen, 1991Wagner, 2007Zangaro, 2001 OC is defined as "an employees feeling of obligation to remain with the organization" (Allen & Meyer 1990, p. 1) OC is defined as "the totality of internalized normative pressures to act in a way that meets organizational interests" (Wiener 1982, p. Reichers, 1985Zangaro, 2001 OC is defined as "member dedication to system survival" (Buchanan 1974, p. 534) Definitions of Employee Loyalty (EL) Further Articles n/a n/a EL is defined as "demonstrating unreserved dedication" (Chen et al. 2002, p. 341) EL is the "wholehearted devotion to an object" (Schrag 2001, p. 43) Chen, 2001Chen et al., 1998Haughey, 1993Ladd, 1987Pettit, 1988Powers, 2000Wong et al., 2002 Further mainly review articles ...
... Further Articles Ali et al., 1997Burris et al., 2008Caldwell & Canuto-Carranco, 2010Chen, 2001Chen et al., 1998Grosman, 1989Powers, 2000Stroh & Reilly, 1997bWong et al., 2002 EL is "accepting the boss' goals and values" (Chen et al. 2002, p. 341) EL is to "adhere to universalizable moral principles in pursuit of individual and collective goals" (Coughlan 2005 p. 47) EL is "the degree to which a person identifies with an organization" (Boroff & Lewin 1997, p. 53) Further mainly review articles Cohen, 2007Meyer & Allen, 1991Wagner, 2007Zangaro, 2001 OC is defined as "an employees feeling of obligation to remain with the organization" (Allen & Meyer 1990, p. 1) OC is defined as "the totality of internalized normative pressures to act in a way that meets organizational interests" (Wiener 1982, p. Reichers, 1985Zangaro, 2001 OC is defined as "member dedication to system survival" (Buchanan 1974, p. 534) Definitions of Employee Loyalty (EL) Further Articles n/a n/a EL is defined as "demonstrating unreserved dedication" (Chen et al. 2002, p. 341) EL is the "wholehearted devotion to an object" (Schrag 2001, p. 43) Chen, 2001Chen et al., 1998Haughey, 1993Ladd, 1987Pettit, 1988Powers, 2000Wong et al., 2002 Further mainly review articles ...
... The attitudinal approach and particularly its three key elements, i.e. attachment, involvement and identification, that have been frequently applied within the organizational commitment research is reflected by similar definitions and conceptualizations in the employee loyalty literature (e.g. Boroff & Lewin, 1997;Rousseau, 1990, Powers, 2000. However, regarding the behavioral and the normative approach or school we identified significant differences. ...
... However, the organization will in turn be only able to expect justice to regulate the employee's behaviour in return -the employee will carry out duties according to the letter of the contract and not go beyond it. Many organizations expect their loyal employees to show loyalty by sometimes going out of their way to act in ways that benefit the organization, even at personal cost, for example, spending extra time to type up an urgent report, attending to customers at odd times, etc (Powers, 2000). Hence the organization tries to emphasize that the employee should care. ...
... Hence the organization tries to emphasize that the employee should care. In some cases, the organization would go so far as to expect the loyal employee to be benevolent towards his or her employers (Powers, 2000). ...
... For example, types of wisdom according to Tredget (2010) include teaching role, spiritual gift, healing quality and social skills. In the same way, loyalty has been severally described as tenure (Cole, 2000;Powers, 2000), customer patronage; brand adherence (Cole, 2000); whistleblowing; not whistleblowing (Powers, 2000); identification (Rosanas and Velilla, 2003); referrals (Cole, 2000); over-riding self interest for the company's interest (Powers, 2000); following orders (Powers, 2000); helping colleagues (Powers, 2000); care for company property (Powers, 2000); working late (Powers, 2000). These descriptions nearly always take an employee perspective as their starting point. ...
... Formally constructively defining employee loyalty is not an easy task. According to Powers (2000), "employee loyalty (unfortunately) is whatever the employee and employer agree that it is" [7]. Hart and Thompson (2007), make the point that although employee loyalty has been widely discussed in the literature, the concept of loyalty remains loosely defined. ...
... Formally constructively defining employee loyalty is not an easy task. According to Powers (2000), "employee loyalty (unfortunately) is whatever the employee and employer agree that it is" [7]. Hart and Thompson (2007), make the point that although employee loyalty has been widely discussed in the literature, the concept of loyalty remains loosely defined. ...
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Employee loyalty, employees' attitudes, and behaviors play a vital role in the quality of work, at the same time, employees are primarily responsible for guaranteeing competitive advantage and sustainable development for enterprises. To collect data, the research questionnaires were sent to domestic companies in Thuy Van industrial zone. Base on the collected data and by using the method of evaluating the reliability of the scale and the factor analysis. The research analyzed and identified the factors affecting employee loyalty in the companies in Thuy Van industry zone including 4 factors: salary, promotion, relationship, and welfare. In which, the salary was the strongest factor affecting employee loyalty, next was the relationship, advancement opportunities and finally welfare. The research results show that these factors have a positive impact on employee loyalty. Thence, to improve employee loyalty and maintain employees in the company, the research proposed recommendations to so increase employee satisfaction with the above factors will increase their loyalty to the company.
... The need of rewards to build commitment has been acknowledged in the organizational literature, for example Wallace [34] argues that affective commitment is formed as an emotional response on the basis of rewards. Similarly, Powers [35] suggest that employee loyalty will only result from perceived increase in employee outcomes 1 , such as benefits, recognition, or status. In this regard, the findings show that commitment decreases when people are betrayed by the organization; meaning that when the employee outcomes are negatively impacted. ...
... Employee outcomes include personal growth, companionship, belonging, experience, pay and satisfaction[35] E. L. Powers, "Employee loyalty in the new millennium," S.A.M. Advanced Management Journal, vol. 65, pp.[4][5][6][7][8]2000. ...
... An ongoing heated discussion about what characterizes a loyal employee has been taking place for many years (see e.g. McCusker & Wolfman, 1998; Meyer & Allen, 1997; Morgan & Hunt, 1994; Powers, 2000; Solomon, 1992; Stum, 1998). The common denominators for this discussion appear as follows: A loyal employee is less likely to look for work elsewhere – expects to stay with the company both in the short-and long-term, would recommend working for the company to others – proud to be working for the company, is interested in doing her/his best, and make an extra effort when required – this relates to the individual employee's performance and contribution to the company value, develops strong relations to the company – temporary dissatisfaction with the job is ac- cepted, is interested in improving her/his own performance – offers suggestions for improvement , interested in participating in various training and educational activities, etc., has an attitude and behaviour that match the company's values, visions and goals. ...
... Each of the latent variables in the model is operationalized by a set of indicators (measurement variables), observed by survey questions to the employees. The measurement instrument for the model was developed based on literature studies (Weiss et al., 1967; Smith et al., 1969; Spector, 1997; Evans & Lindsay, 1999; Powers, 2000; Eskildsen & Dahlgaard, 2000; Eskildsen & Nussler, 2000; Martensen et al., 2000) and an initial explorative phase, involving qualitative research (focus groups) among employees. The questions were designed in a generic way, meaning that they are flexible and can be used across a wide variety of organizations. ...
Article
Full-text available
Relationship marketing and services marketing emphasize the importance of focusing on employ-ees in creating and maintaining customer value and loyalty. It is commonly argued that there are links between employee loyalty, customer loyalty and profitability. Therefore, it is important to manage and improve job satisfaction and employee loyalty. Based on this view, the purpose of the paper is to develop and apply a model of employee loyalty. It presents a structural equation model with latent variables, linking employees' job satisfaction, and loyalty to its determinants, and, in turn, to its consequences: perceived contribution to the company value. The paper reports the em-pirical results from a study among employees in a large international hotel chain. To estimate the model, the partial least square (PLS) method has been used. The determinants of employee loyalty are examined to identify relevant areas of improvement. Priority maps are developed and inter-preted in a managerially useful way.
... Those who show loyalty to their social groups receive praise and admiration, and the value of loyalty is emphasized in business mottos, literature, awards, and national oaths of allegiance (Coleman, 2009;Connor, 2007;Hildreth et al., 2016;Reichheld & Teal, 2001;Souryal & McKay, 1996). Loyalty can also encourage people to engage in prosocial behavior to help their organizations and communities, and it can foster trust and cooperation among group members to achieve shared goals (Graham et al., 2011;Hirschman, 1970;Powers, 2000;Reichheld & Teal, 2001;Rosanas & Velilla, 2003). Those organizations that gain the loyalty of their employees tend to perform better (Ford et al., 2023;Whiting et al., 2008). ...
Article
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Wage theft—the underpayment or nonpayment of workers’ wages and benefits by employers—is pervasive in the US and abroad, adversely affecting the lives and livelihoods of millions of people annually. Although academics, advocacy groups, and investigative journalists have made advances in documenting the pervasiveness and severity of wage theft practices across states, nations, and industries, research has yet to identify and characterize the processes that make the public see such practices as legitimate. Across four well-powered studies (total N = 2291), we leverage theory and research on moral identity and on evolutionary approaches to moral values to investigate a possible underlying psychological antecedent of the judged legitimacy of wage theft. We propose that the value placed on a widely shared and moralized principle—loyalty—may (ironically) underlie the legitimization of wage theft practices. Although people often consider loyalty to be a positive moral principle or virtue that ought to be valued and exemplified in social and business relations, we find consistent evidence that placing more value on loyalty closely tracks stronger beliefs that wage theft practices are legitimate. Ultimately, differences in the valuation of loyalty may help to explain and predict judgments about the legitimacy of wage theft practices across individuals, groups, organizations, and cultures.
... T. Dutta, S. Dhir (2021) з посиланням на (E. Powers, 2000) [27] підсумовують, що лояльність працівника може бути визначена як бажання залишатися з компанією, а не шукати роботу, працювати допізна, щоб виконати завдання, не розголошувати конфіденційну інформацію компанії, відстоювати інтереси, дотримуватися правил за відсутності суворого контролю, надавати пріоритет цілям компанії, а не особистим досягненням, утримуватися від поширення неправдивої інформації або від отримання прибутку за рахунок ресурсів компанії, купувати продукцію компанії та пропагувати її в суспільстві, робити внесок у благодійність, яку спонсорує організація, пропонувати покращення, брати участь у роботі, виходячи за межі очікуваної рольової поведінки, допомагати колегам у досягненні їхніх цілей, виконувати накази та не отримувати неправомірну вигоду з будь-якої політики [11, c. 3 [20]. Таке припущення стосовно спрямованості лояльності скоріш на кар'єру, а не на організацію доводить справедливість поставленої вище нами науково-практичної проблеми про об'єктність лояльності, та обумовлює необхідність перегляду та зміни нині існуючих поглядів на лояльність працівників на робочому місці або відсутністю зазначених поглядів. ...
... The manager's orientation of his employees to the achievement of organisational tasks is determined by the degree of clarity of employees' understanding of the organisation's mission. The loyalty of the staff to the organisation depends on the manager's loyalty to the employees; that is, it is a two-way process (Powers, 2000). Therefore, studying the process of loyalty formation and its implementation in the organisation is an essential task for the manager. ...
Article
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The work examines modern strategies and management approaches aimed at increasing the level of motivation and establishing the loyalty of personnel in organisations. An analysis of the integrated management activity model, which is specially adapted to achieve maximum efficiency in the context of employee motivation and loyalty, was carried out. The main focus of the research is on the role of leadership in creating a favourable working environment and forming a positive working atmosphere. The author also considered modern management technologies that simplify motivation processes and ensure transparency in the interaction between management and staff. The literature review and the analysis of the integrated model help to reveal the key aspects and principles that underlie the successful management of employee motivation and loyalty in modern organisations. The article’s conclusions serve as a basis for further research and development of personnel management strategies.
... Loyalty is a characteristic visualized in terms of person-workplace interaction (Dutta & Dhir, 2021), According to Power, employee loyalty can be defined not only as staying with the company rather than looking for a job, but also including working overtime to complete tasks, not divulging confidential company information, advocating, obeying rules without strict supervision, prioritizing company goals over individual achievement, abstaining from disseminating information. improperly or refrain from making profit from company resources, purchasing company products and advocating for them in society, contributing to charitable causes sponsored by the organization, suggesting improvements, participating outside of expected role behavior, assisting co-workers in achieving their goals, follow orders and not take undue advantage of any policies (Powers, 2000). ...
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This paper aims to examine the effect of motivation, commitment, and satisfaction on nurse loyalty at Islamic Hospitals. The sampling technique uses a purposive method, where the requirement to be a sample is a nurse who has worked for one year. Based on this technique, a sample of 69 nurses was obtained with a response rate of 92%. Data were analyzed using structural equation modeling with a partial least square approach, by two separate but sequentially related stages (outer and inner model). The results showed that extrinsic motivation can affect employee commitment and job satisfaction. Intrinsic Motivation can affect job satisfaction but does not affect employee commitment. Extrinsic and intrinsic motivation cannot directly influence nurse loyalty, nor can it be mediated by nurse commitment or job satisfaction. Nurses will be loyal to the hospital if intrinsic and extrinsic motivation is mediated by employee commitment and job satisfaction respectively.
... Organizations formulate various strategies for the improvement of employee satisfaction and sense of belongingness towards the organization. Employees' emotional affection towards an organizational brand plays an important role for sustaining satisfaction levels [6]. Existing studies have only focused on customer-related brand love and have ignored the employees' brand love perspective which is important for the development of the positive behavior of employees towards the organization [7,8]. ...
Article
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The aim of the current study was to examine how employees are involved in positive word of mouth (PWOM) in the presence of brand love. In this study we also investigate the mediating role of employee loyalty between employee brand love and PWOM links. Furthermore, moderating the role of affective commitment (AC) has also been tested. Data was collected from 296 employees of the tourism sector including hotels and transport and travelling agencies. Collected data were analyzed with the help of correlation, hierarchical regression and Amos 7.0 software. The results proved that employee brand love plays an essential role for the loyalty of employees towards organization and PWOM. Findings also proved that employee’s loyalty directly predict PWOM, but it also acts as mediator for the brand love and PWOM link. The current study adds to the existing literature by investigating how employee brand love is helpful for achieving the PWOM and employee loyalty. Based on the findings of current study, this is a unique study which recommends that management of the tourism sector enhance PWOM with the help of employee brand love and employee loyalty.
... 151). However, employee loyalty cannot only be associated with the values and attitudes of the younger generation [13,14]. It can be influenced by [15]: ...
Article
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The pandemic has triggered, on one hand, a wave of employee disloyalty in the form of quitting from non-functioning companies and choosing those seeking employees, and on the other hand, reinforcing their relationships with those companies that made a lot of effort to prevent quitting or letting employees go. The cognitive aim of this article is to answer the question of whether this transition is intended to be temporary or permanent—an issue which has not been recognized in the literature on the subject so far. The planned cognitive contribution is the verification of the hypothesis pertaining to the uneven occurrence of individual types of loyalty. The study was conducted on a nationwide, representative sample (n = 1000) with the use of the CAWI questionnaire. Research has confirmed that sustainable loyalty occurs more often than other types of loyalty. This is a balanced type of loyalty in which the commitment of the employer and the employee is equal, and the employee is attached to the organization and puts their trust in it. The obtained results were interpreted in the context of the influence of the pandemic.
... Martensen, A., Gronhold L. (2006) Loyal employee is defined by her/his identification with involvement in, and commitment to the company, and by being motivated to perform beyond expectations. Powers, (2000) A loyal employee:  Is less likely to look for work elsewhere -expects to stay with the organization both in the short-and long-term.  Would recommend working for the organization to others -proud to be working for the organization. ...
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This paper investigates the relationship, and the impact of Human Resources Information System in terms of human resources planning, staffing, development, and training, employees’ performance evaluation, and compensations on the organizational loyalty of health organizations’ employees in Makkah region, as well as explore the level of importance of these variables in the health organizations under study. The model was tested using survey data collected from (134) of (2320) Managers (Ministry of Health, 1436h, p55), deputy Managers, Heads of departments, Deputy Heads of departments, and staff. Descriptive analysis, and testing (t) show the importance of human resources information systems on the organizational loyalty of health organizations’ employees. The results showed that there is a strong relationship, and the impact of the human resources information systems on the organizational loyalty of health organizations’ employees.
... The definition by (Allen & Grisaffe, 2001)is very general as only 'relationship' is mentioned. Other definitions by (Mathieu & Zajac, 1990); (Chen, Tsui, & Farh, 2002); and (Powers, 2000) are very simplistic. In this research work, the definition by ) is adopted because employee loyalty is more than just a relationship (identification and allegiance) and there is clarity on the targets. ...
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Employees are an inevitable element of the employee loyalty process. Employees are not loyal by birth, they turned to be loyal to their job roles and organization; eventually, through employee loyalty process. The purpose of the study is to enhance employee loyalty especially in the hotel industry of Saudi Arabia. Quantitative method is employed in the present study. By a similar rationale, the present study utilizes the blended techniques to investigate the real usage of employee loyalty in the hospitality business of Saudi Arabia. The present study is rationalized through the cluster sampling method. Data were collected from the five big and busy cities of Saudi Arabia. A questionnaire was distributed in five, four and three-star hotels. The research findings indicate that there is a significant relationship between job satisfaction and organizational commitment with employee loyalty. This study has made contributions in the theoretical, methodical as well as the managerial fieldsThis research will help hospitality management to recognize the impact of low employee loyalty. Executives in the hospitality industry can apply strategies to increase employee loyalty. As a result, the industry can maintain its employees and develop its operative performance. By exploring the value of employee loyalty in the hotel industry specifically, the researcher hopes to contribute to the enhancement of the quality of life in hotel employees and society as a whole. This research is among the few studies on how hotel industry benefit and utilize employee loyalty, as a whole.
... The definition by (Allen & Grisaffe, 2001)is very general as only 'relationship' is mentioned. Other definitions by (Mathieu & Zajac, 1990); (Chen, Tsui, & Farh, 2002); and (Powers, 2000) are very simplistic. In this research work, the definition by ) is adopted because employee loyalty is more than just a relationship (identification and allegiance) and there is clarity on the targets. ...
Article
Employees are an inevitable element of the employee loyalty process. Employees are not loyal by birth, they turned to be loyal to their job roles and organization; eventually, through employee loyalty process. The purpose of the study is to enhance employee loyalty especially in the hotel industry of Saudi Arabia. Quantitative method is employed in the present study. By a similar rationale, the present study utilizes the blended techniques to investigate the real usage of employee loyalty in the hospitality business of Saudi Arabia. The present study is rationalized through the cluster sampling method. Data were collected from the five big and busy cities of Saudi Arabia. A questionnaire was distributed in five, four and three-star hotels. The research findings indicate that there is a significant relationship between job satisfaction and organizational commitment with employee loyalty. This study has made contributions in the theoretical, methodical as well as the managerial fieldsThis research will help hospitality management to recognize the impact of low employee loyalty. Executives in the hospitality industry can apply strategies to increase employee loyalty. As a result, the industry can maintain its employees and develop its operative performance. By exploring the value of employee loyalty in the hotel industry specifically, the researcher hopes to contribute to the enhancement of the quality of life in hotel employees and society as a whole. This research is among the few studies on how hotel industry benefit and utilize employee loyalty, as a whole.
... In contrast, employees display passive loyalty by not searching for alternative employment and not publicly criticizing the company (Świątek-Barylska 2013). In addition, loyalty can be analyzed in reference to its objects, i.e. loyalty to an organization, its members, values, and to a profession (Powers 2000). The latter two are less relevant to our study: loyalty to values stands for acting in line with core values respected by an individual, and loyalty to a profession refers to developing a professional career in various organizations, but within only one profession. ...
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THE EFFECT OF JOB CHARACTERISTICS ON EMPLOYEE LOYALTY: THE MEDIATION ROLE OF VERTICAL TRUST AND PERCEIVED SUPERVISORY SUPPORT Although the effects of job characteristics on employee motivation and commitment are broadly researched, questions remain to the extent that job characteristics influence perceived specific attitudes and behaviours of employees. It is particularly interesting to what extent the process is reinforced by supervisors, namely through their support perceived by employees and vertical trust. Survey data were collected from 550 front-line employees across a variety of industries in Poland. A structural equation modelling analysis was performed to delineate the relationship between job characteristic and employee loyalty with the mediating influence of perceived supervisory support and the trust between the supervisor and employee, which is labelled as vertical trust. We confirmed that employees who have a strong job-role fit with the characteristics of their job will have a higher level of employee loyalty than those employees who lack a strong job-role fit. Furthermore, this relationship is enhanced by the perceived supervisory support and vertical trust. Few studies have been devoted so far to the relationship between job characteristic and loyalty, and even less have been conducted in Central and Eastern European countries. The findings of our study offer new perspectives to examine loyalty dimension. We propose to distinguish a construct labelled employee loyalty, that is oriented on both the organization and co-workers, and as such ,it may be treated as a supplementary construct to OCBs’ organizational loyalty. Our study is one of a few that investigates the mediating role of vertical trust and perceived supervisory support in the relationships between job characteristics and loyalty. In the literature, the need to explore the mediating mechanisms between the effects of job characteristics and loyalty on employee behaviors has been repeatedly stressed, which we address with this research study. Keywords: employee, employee loyalty, supervisory support, management, vertical trust (PDF) The effect of job characteristics on employee loyalty: the mediation role of vertical trust and perceived supervisory support. Available from: https://www.researchgate.net/publication/328022568_The_effect_of_job_characteristics_on_employee_loyalty_the_mediation_role_of_vertical_trust_and_perceived_supervisory_support [accessed Jul 10 2019].
... It is based upon generally accepted rules about reciprocal obligations between organizations and their employees. Reciprocity is a mechanism underlying commitment (Powers, 2000). This reciprocity is based on "social exchange theory", which suggests that a person receiving a benefit is under a strong "normative" (i.e. ...
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Purpose The purpose of this paper is to investigate the underlying reciprocity mechanism which governs the relationship between employer and employee at their workplaces in a perspective whereby intrinsic and extrinsic factors of job satisfaction are considered as proxy to organizational offerings, while multi overall job satisfaction and dimensional organizational commitment as employee’ attitudinal reaction to the organizational offerings. Under the aforementioned notion, the present study intends to examine the influence of job characteristics on employees’ attitudes, such as, job satisfaction, organizational commitment and employee’ turnover intentions as psychological response to job characteristics. In a way, the study attempts to insight into how employee’ reciprocate to the perceived obligation toward its organization. The study also aims to supplement the empirical evidence about the competing power of intrinsic and extrinsic factors of job in determining the job satisfaction. Although various studies exhibit positive relationship between job satisfaction and organizational commitment has been consistently reported. However, for the managerial implication, the identification of employee physiological and psychological needs to gauge the understanding of mechanism by which of employee’ reacts to its environment and develop attitude toward their job and organization is imperative. In this context, this study makes a humble attempt to clear the relationships in the perspective of reciprocation between organization and its employees. Thus, this study attempts to illustrate how feeling a need to reciprocate, those who experienced strong satisfaction with job characteristics appear to have had a sense of moral duty to the organization can be helpful in understanding the processes by which organizational inducements exert their influence on other employee attitudes and behaviors. Evidently, while the link between employees’ satisfaction with their job and high organizational commitment, on the one hand, and low intentions to leave on the other is fairly straightforward, yet there in need to study these variables as exogenous and endogenous to inquire about their causation. Also, the available present literature on the understudy concern genuinely lacks adequate empirical material about the competing power of intrinsic and extrinsic factors of job in determining the job satisfaction as such some author hold that intrinsic characteristic of job better predict job satisfaction while as another set of behavioral scientists found extrinsic job characteristics as prime determinant of job satisfaction compare to the intrinsic worth of their jobs. The present study was conducted in the state of depressed economy where unemployment rate is as high as 194 percent it was found interesting to investigate the about the competing power of intrinsic and extrinsic factors of job in determining the job satisfaction. The present study also attempts to supplement the empirical evidence in this direction. Design/methodology/approach Since the study use the tenets of situational theories of employee’ attitude which assume that employee’ attitude results from the psychological evaluation of one’s job characteristics or other aspects of the environment in the organization; therefore, the study integrates the job characteristics as the organizational offerings to its employee and employees attitude like job satisfaction, organizational commitment and employee’ turnover intentions as reciprocity reaction to the organizational offerings. The structural equation model was used to frames the intricacy job characteristics, job satisfaction and organizational commitment and employee turnover intentions. Ten job characteristics were identified with which employees experience at the workplace as organizational offerings. These include salary, recognition, co-workers, supervision, organizational policies, promotion, working condition, task requirement, job security and nature of work. Subsequently, these identified facets were divided into intrinsic and extrinsic factors of job satisfaction, and were considering as proxy to the organizational offerings to its employees. These job characteristics were identified during in-depth interviews and discussions with the respondents, while overall job satisfaction, organizational commitment and employees’ turnover intentions were considered as employee’s psychological reactions to the organizational offerings. The sample consists of 654 hospital employees, working at the different hospital across state. In order to ensure the representation of the entire human capital, employees working under different levels of occupational status and different sectors of economy were included in the for the purpose of data collection. The number of employees from each hospital has been selected through proportionate method. Employees from each hospital were selected on the basis of the chit method. Measurement tools Questionnaire method was used to collect the data for the present study. A five-point likert type scale was used for the sake of maintaining uniformity in measuring the variables. All the variables were measured with multiple-item scales, questionnaire item used to measure different constructs in this study are derived from the previously established studies. As such, multidimensional organizational commitment construct was measured using items drawn from Meyer and Allen (1991) scale. Job characteristics and employee’ turnover intentions scale was adapted from the study conducted by Ali Muhammad et al. (2008). The instrument used for the present study has universal application. Therefore the results thus produce are of universal significance. The reliability and validity of measurement tools for the study was established by the confirmatory factor analysis (CFA). Findings The findings from the study reveal employees’ subjective evaluation to the intrinsic and extrinsic factors of job contribute to the formation of their reciprocal perspective of psychological attitude toward its job and organization characterized as their job satisfaction and organizational commitment. As such, better evaluation of job content and job context by the employees leads to the sense of obligation and commitment toward the organization, hence reduces their intentions to discord organizational membership. The findings also reveal that employees tend to incline their job satisfaction more toward the extrinsic worth of job than the intrinsic worth. While as both, job satisfaction and organizational commitment, explains relatively equal variation in the employees’ turnover intentions. The relatively strong correlation of extrinsic characteristics of job could be attributed to the fact that professionals generally have limited control over extrinsic factors and have high degree of control over intrinsic elements. Therefore, their perceptions of the job are particularly dependent on the degree of satisfaction with the extrinsic factors (Pearson and Seiler, 1983). Originality/value Although there are various studies manifested the relationship between job satisfaction, organizational commitment and employee turnover intentions, for all that, the present work is an attempt to deem these relationships in a different panorama to bring more insight in the subject of organizational behavior. In this study, the relationship among the job characteristics, job satisfaction, organizational commitment and employee’ turnover intentions were considered in a perspective of reciprocity norms. The study opens new horizons to the researchers across the globe, whereby organizational and job characteristics are considered as catalyst for the employee’ attitude and can be study and analyze in a functional relationship model. A new regime of paradigm may investigate the functional relationship between employer offerings as an input and employee attitudes as an output, with more emphasis on the organizational equilibrium. Hence, study encompass the managerial implication by gauging the understanding of mechanism by which of employee’ reacts to the workplace environment and develop attitude toward their job and organization. In this way, the propositions expatiated in the present work improves the understanding for the implications of various motivational theories, different organizational theories and human resource management models. Moreover, this work substantiates and provides insight about the competing power of intrinsic and extrinsic job factors on job satisfaction and opens debate for the generalization of Herzberg’s motivation theory.
... Martensen, A., Gronhold L. (2006) Loyal employee is defined by her/his identification with involvement in, and commitment to the company, and by being motivated to perform beyond expectations. Powers, (2000) A loyal employee:  Is less likely to look for work elsewhere -expects to stay with the organization both in the short-and long-term.  Would recommend working for the organization to others -proud to be working for the organization. ...
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This paper investigates the relationship, and the impact of Human Resources Information System in terms of human resources planning, staffing, development, and training, employees’ performance evaluation, and compensations on the organizational loyalty of health organizations’ employees in Makkah region, as well as explore the level of importance of these variables in the health organizations under study. The model was tested using survey data collected from (134) of (2320) Managers (Ministry of Health, 1436h, p55), deputy Managers, Heads of departments, Deputy Heads of departments, and staff. Descriptive analysis, and testing (t) show the importance of human resources information systems on the organizational loyalty of health organizations’ employees. The results showed that there is a strong relationship, and the impact of the human resources information systems on the organizational loyalty of health organizations’ employees.
... Loyalty is also defined in terms of commitment to something or someone (Morrall, 1999). Another definition of loyalty is devotion and emotional attachment to certain things that may be relevant to a person, a group, a task or an objective (Powers, 2000). ...
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This study is conducted with the aim of explaining the role of extraversion on employee loyalty with the mediating role of career and social adaptability among employees in a private organization. The research design is descriptive-correlational and the population is the employees of Saveh Chocolate Factory up to 240 people. According to Cochran's formula, the sample size of eligible people in this study is 172 subjects chosen randomly. The research data is collected by questionnaires of extraversion, social adaptability, occupational adaptability, and employee loyalty collected each of which has acceptable reliability and validity to study the mentioned variables. Pearson correlation and SPSS software are used to analyze the data. According to the Pearson correlation coefficient, the obtained results suggest that the relationship between extraversion and employee loyalty (ρ=-0.564) is a significant inverse relationship, and the relationship between social and occupational adaptability with employee loyalty (ρ =0.431, ρ =0.579) is a direct and meaningful relationship. Moreover, according to the results, the direct significant relationship between extraversion and social adaptability (ρ=0.453), extraversion and occupational adaptability (ρ=0.297), and occupational adaptability with social adaptability (ρ=0.487) are approved. The findings besides confirming the existence of a significant relationship between extraversion, social and occupational adaptability with employee loyalty show that each of the mentioned behavioral characteristics are associated with each other, and explain the quality of this relationship to be used for better analysis of the employee loyalty in organization.
... External economic shocks are another example of employers having little control over fostering a loyal workforce. In order to maintain profitability during economic downturns, employers resort to layoffs, which have a detrimental effect on workforce loyalty (Powers, 2000). Yet, while individual and organisational-level antecedents of employee loyalty have attracted considerable attention in previous work, the impact of macro-level antecedents remains an under-researched area. ...
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This study investigates the relationship between unemployment and employee loyalty across UK regions. It is argued that higher regional unemployment depresses wages and increases the cost of a potential job loss, thus providing an incentive for employees to be loyal to their employer. Using data from the Work and Employment Relations Survey (WERS), the results confirm the positive association between regional unemployment and employee loyalty. A disaggregated analysis by type of business reveals that this association is stronger in the private sector. The study adds a spatial dimension to an emergent literature that examines how unemployment affects the employed.
... H1 : There is an effect of Direct Compensation to the employee loyalty The results showed that the direct compensation has no effect on employee loyalty. This result was evidenced by the t statistic value is smaller than t tabel Heshizer, (1994) and Kasper, et al. (2012) 3. Chiu K. Randy, et al. (2002), Powers (2000), and ...
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This study aimed to determine the effect of direct and indirect compensation to motivation and loyalty of the employee. Direct compensation based on indicators of salaries, incentives, and payment delays and indirect compensation is based on indicators of Time-Off Benefits, protection against danger, program benefits, and legal services then the motivation as a mediating variable. The Population in this study were 46 employees of the representative office of Bank Indonesia Kediri. This study used the saturated sample and the sample size in this study were 46 employees of a representative office of Bank Indonesia Kediri. Data analysis performed by linearity test and test hypotheses using path analysis. The results showed that the variable compensation is not directly significant effect on loyalty and motivation of the employee. The variable compensation also an indirectly significant effect on employee loyalty through employee motivation. Independent variables on loyalty and employee motivation are 77%, while the remaining 33% is influenced by other variables not examined in this study.
... Stakeholders often relate their identity to social entrepreneur's identity. There are many indicators to loyalty (Powers, 2000). ...
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... Stakeholders often relate their identity to social entrepreneur's identity. There are many indicators to loyalty (Powers, 2000). For instance, stakeholders thrive for long term association with social entrepreneur. ...
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Building upon extant literature this paper intends to propose and establish stewardship behaviour and entrepreneurial orientation as key antecedents of social entrepreneur behaviour. This paper also explores the mediation effect of organizational capabilities (SCALERS) between social entrepreneurial behaviour and scaling up of social enterprise impact. The framework reveals that the social entrepreneur’s stewardship behaviour and entrepreneurial orientation positively contribute in scaling up social enterprise impact. And organizational capabilities (SCALERS) mediate this relationship. Towards the end, the paper elucidates implications and future research directions
... The individual s view of fair value is critical to the relationship between performance and job satisfaction because one s sense of equity is an exchange and comparison process (Powers, 2000). Individuals compare what they get with what others receive. ...
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... En engagerad samt lojal medarbetare innehar sex olika beteenden såsom att göra personliga uppoffringar för organisationen, vara samarbetsvillig, tro på organisationen, rekommendera företaget som den bästa arbetsplatsen, stanna på företaget de närmsta åren, stanna på företaget även då de erbjuds högre lön på annat företag. (Cole 2000, s. 44-48) 13 Anställdas upplevelse av lojalitet kan sammanfattningsvis beskrivas som viljan att stanna kvar i organisationen, produktivitet, ömsesidigt beteende samt att den anställdes lojalitet till organisationen måste vara lika som organisationen lojalitet till den anställde (Powers 2000, s.4-7) ...
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