Differentiate between job satisfaction and organizational commitment,and specify some of the costs and benefits that organizations derive from employees who have stronger levels of satisfaction and commitment to the organizations versus those who are not satisfied and who are not committed to the organization.

Job Satisfaction reflects the extent to which people find fulfillment in their work. Consequently, an employee may be satisfied with some aspects of the job and dissatisfied with other aspects at the same time. Organizational commitment represents a broader work attitude than job satisfaction because it applies to the entire organization rather than just the job. It refers to the strength of an employee's involvement with the organization and identification with it. Strong organizational commitment is typically characterized by: (1) a support of and acceptance of the organization's goals and values; (2) a willingness to exert considerable effort on behalf of the organization; and (3) a desire to remain with the organization. Organizational commitment is typically a more stable attitude than is job satisfaction, since day-to-day events are less likely to change it.

Managers are interested in the relationships between organizational commitment and job behavior because the lack of commitment often leads to turnover. The stronger an employee's commitment is to the organization, the less likely the person is to quit. Strong commitment also is often associated with low absenteeism and relatively high productivity. Attendance at work is usually higher for employees with strong organization commitment. Moreover, committed individuals tend to be more goal directed and waste less time while at work, which has positive impact on productivity.

The benefits of job satisfaction are a bit more complex. There is no simple, direct linkage between job satisfaction and individual job performance. That is, satisfied employees are not necessarily more productive employees than less satisfied ones. However, when examined at the organizational rather than the individual level, a relationship between satisfaction and performance does emerge. It has been found that organizations with satisfied employees tend to be more effective than organizations with unsatisfied employees because they experience less absenteeism, turnover, higher customer satisfaction, fewer labor grievances, and the like. Finally, it should be noted that one of the benefits of job dissatisfaction is that it can help managers to identify organizational problems that need attention. In this way, impediments to satisfaction and organizational commitment can be removed, and the organization can take steps towards improvement. Effective management can foster increased commitment and loyalty to the organization.