ORGANIZATIONAL LOYALTY - A PRELIMINARY-STUDY

Organizational loyalty can be defined as identification with a group t o which an individual belongs. A person identifies himself with a grou p when, in making a decision, he evaluates the available alternatives in terms of their consequences for the specified group. This paper arg ues that a fundamental factor that generates organizational loyalty is high job security. Other important factors are the ability of manager s and the culture of the society within which the organization exists. We construct a model in which some firms in an industry utilize organ izational loyalty in production and the others do not.