Employees are a vital resource for nearly all organization, especially since they represent a
significant investment in term of locating, recruiting, training let alone salaries, healthcare,
plans, bonuses etc. The management of many organizations develops their training
programmers, benefit packages, performance appraisal and work system based on their
company policies. Usually these policies are aimed at developing loyal employees because this
leads to a more lengthy tenure. The longer an employee works for a company the more valuable
they become. Loyalty is the kind of faithfulness and trueness. Organizational commitment is the
field of organizational behavior. In general sense the employee’s psychological attachment or
loyalty to the organization. Employees and organizations have reciprocal responsibilities and
mutual commitments both stated and define their relationship. Sometimes managers persuade
employees to adopt new strategy it is unrealistic for managers expected high to their employees.
There are three main dimensions compacts in all companies. These are formal, psychological and
social.