A Study on Impact of Employee Loyalty on Performance of People Working In Sundaram Finance

Abstract

Employees are the core of an organization and the success or failure of the organization is attributed to their performance. It is important that they are loyal to the organization and don't actively search for other alternative opportunities. Loyalty is a person's devotion or sentiment of attachment to a particular object, which may be another person or a group of persons, an idea, a duty, or a cause. Loyalty is a strong tie that binds an employee to their employer, even when it may not be economically sound for them to stay there. It expresses itself in both thought and action and strives for the identification of the interests of the loyal person with those of the object. Organizations are increasingly dependent on the participation, commitment, and loyalty of their employees, especially in the context of economic tensions related to the 'psychological contract' between employers and employees. Loyalty can be defined as a relationship of trust, resistance to opportunistic behaviour faced with an outside job offer, significant length of service in the company, less inclinati on to search for outside job offers and a strong sense of belonging. It can also be combined with staying in the organization over the long term. Organizational longevity and performance are key factors that determine organizational performance