Loyalty is
the stepping stone for all the skills required by an organization. Loyalty can
be described as the dedication or dependability to what individual feels
honored to belong to. Loyalty for an institution of work can be a vital quality
in the makeup of an individual. It can great benefits for the organization and
can also lead the individual to success in its career. As times are changing it
is becoming very difficult in finding loyal employees who remain in the same
organization for more than five years. Younger generations are become more
loyal their individual career and less to an organization. This shift is
costing organizations a lot of money to replace the employee. Loyalty is a key
factor between the employee and the organizations relationship, it’s a
perpetual give and take relationship.


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Loyalty is
an attitude of commitment of an individual employee with the organization and
is manifested in the things that the individual is willing to give and do to
sacrifice for the good of the organization. Organizations often strive to
increase employee loyalty and trying to steer away from employee turnover. The
environment and employee satisfaction are key factors obtaining employee
loyalty. It is essential to clarify what is organizational loyalty. Loyalty is
not being compliant with the requirements of the organization and performing
its task are required. Loyalty is the behavior that go above and beyond the
requirements of the organization. True organizational loyalty is where an
individual is committed to the organization during times of adversity, they
work hard for their pay and are always committed for the success of the
organization. A loyal individual always is the constant support for the
organization, showing gratitude for the organization, performing at their
top-level and frequently putting the interest of the organization ahead of itself.
Coughlan, considers that employee loyalty has a more moral basis than
commitment. An on-going ethical behavior on the part of the employee, whereby the
individual considers the appropriate intentions before acting upon. (Coughlan
2005). For instance, the implicit understanding of the loyal employee of not harming
to the organization that its working for.

In the
past, the idea of loyalty was linked with job security. Nowadays, organizations
are becoming a source of identity for an individual. Loyalty is a value that
must be acquired and practice by its own conviction. Organizations are
struggling to with employers to identify with the organization. According to
Careerbuilding.com, seventy six percent of employees working full time would
leave their current job if an opportunity was offered to them. Companies are
losing a minimum of twenty percent of their workers annually.  A loyal employee helps an organization
benefit, it allows for an organization keep a healthy environment. The more
loyal employees in the organization more positive the culture. The betterment
of an organization relies on a loyal relationship between the employee and the
organization. An employee who works for many years in an organization does not
provide enough sense of loyalty. A new employee who works hard for growth as an
individual and for growth for the organization is what measures loyalty in an
employee. He who is dedicated and committed to the growth of the organization
and possesses strong feelings of responsibility, of bond and care are deemed as
loyal. An employee becomes loyal when the individual puts the interest of the
organization before its own.

Employee loyalty
is a mutual system and if any organization wants their employees to be loyal
then the organization needs to fulfil the employee’s needs. Early
organizational theorist such as Frederick Taylor and Max Weber placed their emphasis
on a command and control management environment. Organizations ensured their
efficiency by placing a superiority type of management style. This type of
management style in an organization prevented the creation of loyal employees.
Every aspect of the worker was calculated to ensure a maximum level of
effectiveness and efficiency. The human relation aspect, collaboration and
socialization were of nonexistent. These same missing human relation aspects
are key for developing loyal employees. Other organizational theories such as Mary
Parker Follet, declared that collaboration was needed in an organization.
Follet idea gave power to the employee bringing the conception of a loyal
employee closer to reality. The affection for the employee gave a sense of
belonginess that manifested as a wish to want to commit to the organization. Furthermore,
Elton Mayo brought the conception of employee loyalty even closer to
realization. Mayo’s studies proved the importance of individuals as people and
not as machines. People want to be a part of a team, a group, and organization
that enables growth. These are symptoms of what enables loyalty in an
organization. The individual attention and recognition by an organization to an
employee creates a sense of satisfaction and commitment which leads to loyalty.
The increased attention to employees, according to Mayo, produced an increased
in productivity, the Hawthorne Effect. Simply put, the human relation theory of
management gave rise to organizational loyalty. The human relations theory
brought out the desire of employees to maintain a continuing relationship with
the organization, it fashioned individual commitment. The commitment by an
employee can be theorized as a key precursor to loyalty.

An organization that
is efficient translates into saving money and saving money improves
profitability. Profit driven organizations rely on the employee in the
organization and even more on loyal employees. This is why employee engagement
and loyalty translate to profit for the organization. Loyal employees bring more
revenue and cost less when compared to disgruntled employees.


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