Question

Maddie has been working as the creative head at Juno Designs for the past 25 years. Although she likes her job, she has begun to feel like she is in a creative slump and has been considering leaving to start her own company. Maddie will be eligible for retirement in five years. After discussing it with her husband, she decides that leaving now would be a mistake. After she retires, she will reconsider the idea of starting her own company. This is an example of _____ commitment.

Answer 1

Answer: continuance commitment

           

Explanation: In simple words, continuance commitment refers to the situation when an individual working as an employee in an organisation does not want to leave it due to the costs involved in taking the decision.

  In the given case, Maddie is going to retire in five years, if she leaves now she will loose the retirement benefits also the uncertainty regarding the new project is high leading to heavy opportunity costs.