EFFECTS OF EMPLOYEE COMMITMENT ON ORGANIZATIONAL PERFORMANCE

 ABSTRACT

This study is on employee commitment on organizational performance. Three objectives were raised which included:  Determining the effect of employee commitment in relation to job satisfaction, ascertaining whether motivation improve employees’ commitment to work, and ascertaining whether employee’s commitment determines organizational Performance. In line with the objectives two hypotheses were formulated and null hypothesis posited with questionnaires.

CHAPTER ONE

INTRODUCTION

• BACKGROUND OF THE STUDY

In an era of limited resources, governments at all levels are pressured to produce maximum output with the least input. A great deal of attention has been given to a variety of Performance improvement strategies, including public-private partnership, and Balanced Score Card (BSC), in the hope that such strategies are a starting point for Performance improvement. It should be noted, however, that no Performance improvement strategy alone is perfect. As such, various strategies should be used at the same time. Since Performance improvement is a function of too many factors, ranging from top management support to feedback on budget based decisions, it is essential to be aware that all factors are equally important (Holzer&Callhan, 1998; Lee, 2000a). Among others, the backdrop of Performance improvement is an employee’s desire to be maximally productive. As Guy (2002) points out, “it is the people who, in the long term, control the Performance of any organization” (p.307). Even if there might be a number of reinvention efforts and top management support, unless employees at all levels are willing to improve Performance, all efforts toward Performance enhancement will come to nothing.

Modern day Organization is  concerned  with the  analysis  and  diagnosis  of  the  factor  that determine  organizational  effectiveness,  and  the planning and delivery of programs to increase that effectiveness. Organizations want to obtain the commitment of their employees. Management  would  like  its employees  to  identify  with  the  values,  norms and artifacts of  the organization, hence  the need for organizational culture. Management needs  to explain  and  imbibe  its  culture  in  its  employees; this will enable the employee to get familiar with the  organizational  system.  During  this  process of  explanation,  the  employee  learns  about  the organizational  culture  and  decides  whether  he can  cope  with  it  or  not. This means that each organization is a learning environment. It is the proper understanding of the organizational culture that the performance of the employee in the organization. Performance is the extent to which an individual is carrying out assignment or task. It refers to the degree of accomplishment of the task that makes up an employee’s job (Cascio, 2006).

Commitment has a rational element: Most people consciously decide to make commitments, then they thoughtfully plan and carry out the actions required to fulfill them (Meyer, et al, 2004).Because commitments require an investment of time as well as mental and emotional energy, most people make them with the expectation of reciprocation. That is, people assume that in exchange for their commitment, they will get something of value in return—such as favors, affection, gifts, attention, goods, money and property. From this perspective, this paper sheds light on the importance of a multidimensional view of employee commitment. This paper starts with an assumption that the previous concept of organizational commitment may not tell the whole story about individual performance and Performance. Identifying multiple foci of employee commitment beyond the organization helps explain various motivational bases among employees toward Performance improvement efforts.

1.2 STATEMENT OF THE PROBLEM

The problem that this study intends to review bores from the fact that there is a wide discrepancy between employees’ efforts towards work and what he or she receives or get in return for that effort. In the world of work, as particularly in an organizational setting, employees and employers have traditionally made a tacit agreement: In exchange for workers’ commitment, organisation’s governing bodies would provide forms of value for employees, such as secure jobs and fair compensation. But rather unfortunate, the employees irrespective of their level or ranking in most organisations do not get paid what they deserve. As a result, workers in most organization have embarked on series of protest in order protect their work conditions and improve welfare package. Reciprocity affects the intensity of a commitment. When an entity or individual to whom someone has made a commitment fails to come through with the expected exchange, the commitment erodes. This study therefore, looked into the effect of employee’s commitment on organizational Performance, with a case study of staffs of the Coca-Cola, Edo state.

1.3 OBJECTIVE OF THE STUDY

The main objective of this study is to examine the effect of employee’s commitment on organizational Performance. The study also aims at:

1. Determining the effect of employee commitment in relation to job satisfaction.
2. Ascertaining whether motivation improve employees’ commitment to work, and

• Ascertaining whether employee’s commitment determines organizational Performance.

RESEARCH HYPOTHESES

Ho: There is no significant relationship between job satisfaction and employees’ commitment

Hi: There is significant relationship between job satisfaction and employees’ commitment

Ho: There is no significant relationship between motivation of employees and employees’ commitment to work.

Hi: There is significant relationship between motivation of employees and employees’ commitment to work.

1.5 SIGNIFICANCE OF THE STUDY

The findings from this study will help to highlight those areas where there are problems among staff and thus will be of great benefit to the authorities of higher institutions and the policy makers. The results of this study would hopefully be significant in the sense that it would enable both the Management of universities to better understand how the various motivational factors could be harnessed to inspire staff to increase and sustain Performance.

The findings from this study would help to further highlight the likely problems of frustrations and how motivation can be used to either reduce or eliminate these problems amongst staff of the organization (Coca-Cola).

1.6 SCOPE AND LIMITATION OF THE STUDY

This study is primary concerned with effects of employee commitment on organisational performance. This study/project work covers The Coca-Cola company, Edo state, Nigeria.The researcher encountered some constraints, which limited the scope of the study. These constraints include but are not limited to the following;

1. a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study
2. b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.

1.7 DEFINITION OF TERMS

EMPLOYEES’ COMMITMENT: Employees’ commitment can be defined as both a willingness to persist in a course of action and reluctance to change plans, often owing to a sense of obligation to stay the course.

MORALE: Moral refers to staff emotional and mental level of zeal.

EMPLOYEES: Are theworkers in an organization, working for the accomplishment of the organizational goals. In this study, the employees are those staffs of the organization, the Coca-Cola, Edo state.

PERFORMANCE: It is the relationship between the amount of one or more inputs and the amount of outputs from a clearly identified process. That is the outcome performance of an organization or individual.

MOTIVATION: These are factors (familiarity, concern and driving force), which exist or are provided in a work situation either physically or psychologically which determine the input and Performance level of the worker.

1.8 ORGANIZATION OF THE STUDY

This research work is organized in five chapters, for easy understanding, as follows

Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study. Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding.  Chapter five gives summary, conclusion, and recommendations made of the study

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