Effect of Employee’s Commitment on Organizational Performance: a Study of First Bank Plc
CHAPTER ONE
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:
- Determining the effect of employee commitment in relation to job satisfaction in first bank.
- Ascertaining whether motivation improve employees’ commitment to work in first bank
- Ascertaining whether employee’s commitment determines organizational Performance in first bank
CHAPTER TWO
REVIEW OF RELATED LITERATURE
INTRODUCTION
This chapter reviews the literature on effects of employee commitment on organisational performance. It discusses issues poor performance and low yield in organisations due to laxity of employees from different perspectives with the view of giving a theoretical and empirical foundation to the study.
LITERATURE REVIEW
Organization commitment can be defined as affiliation of employees to the organization and involvement in it. In general, there are three dimensions of commitment which are continuance commitment, affective commitment and normative commitment (Allen and Meyer, 1991). According to them commitment can be seen as an affective point of reference towards the organization (affective commitment), acknowledgement of the consequences of leaving the organization (continuance commitment), and an ethical responsibility to stay with the organizations (normative commitment). All these types are independent in nature and are shown by individuals at different levels in an organization (Meyer & Allen, 1997). Porter et al., (1974) defined the organizational commitment as believing and accepting the goals and values of the organization, and possessing and showing desire to be part of it. Committed employees show strong intentions to serve their organizations and are low at their intentions to leave (Hunt and Morgan, 1994; Robbins and Coulter, 2003; Mowday, Steers, & Porter, 1982). Gbadamosi (2003) contends that the more favourable an individual’s attitudes toward the organization, the greater the individual’s acceptance of the goals of the organization, as well as their willingness to exert more effort on behalf of the organization. Mathieu and Zajac (1990) believe that developing a better perception of the progression associated with organizational commitment has an effect on employees, organizations and the world in general. The level of employees’ organizational commitment will possibly ensure that they are better suited to receiving both extrinsic rewards (which include remuneration and benefits) and psychological rewards (which include job satisfaction and associations with fellow employees) related to associations. Organizational commitment is generally assumed to reduce abandonment behaviours, which include tardiness and turnover. In addition, employees who are committed to their organization may be more willing to participate in ‘extra-role’ activities, such as being creative or innovative, which frequently guarantee an organization’s competitiveness in the market (Katz & Kahn 1978). Emotional attachment to the objectives and values of an organization is commitment (Buchanan 1974). Organizational commitment is “the aggregate internalized normative demands to perform in a manner which meets organizational objectives and interests” (Wiener, 1982). A person with high job satisfaction appears to hold generally positive attitudes, and one who is dissatisfied to hold negative attitudes towards their job (Robbins 1993).
CHAPTER THREE
RESEARCH METHODOLOGY
Research design
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought to a critical analysis of effects of employee commitment on organisational performance.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain a critical analysis of effects of employee commitment on organisational performance.
In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of employess commitment to work how it affects their performance.
Summary
This study aimed at having a critical analysis of effects of employee commitment on organisational performance a case study of first bank. 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.
Conclusion
The empirical results indicate that there is a fairly high relationship between employee commitment and organizational performance in first bank Plc. implying that employee commitment improves the company’s performance. It was therefore deduced that organizational performance can simply be improved through employee commitment. It was also found that there is a very high relationship between employee commitment and employees’ turnover meaning that employees’ turnover rate is highly determined by the level of employee commitment of the workers. Examinations of the relationship between employee commitment and performance have a long history in organizational studies, mostly at the individual level of analysis and mostly in cross-sectional studies, yet the debate concerning productive worker continues to this day. It is interesting to note that when we move from the individual to the organizational level of analysis, the same questions arise: Are companies with committed workers more productive? Researchers have predicted that the relationship between employee attitudes and organizational performance is complex, and it is too simplistic to assume that satisfaction attitudes lead to improved organizational performance-some do and some do not, and some employee attitudes apparently are the result of organizations’ culture.
Recommendation
Based on the findings, the following recommendations are hereby suggested: Since it was found that there is a fairly high relationship between employee commitment and organizational performance, the management of companies are advised to hire employees who are likely to become linked to the organization. Before they hire workers, they will have to look for congruence between the individual’s values and goals and the organization’s values and goals. Values alignment and identification is central to every conceptualization of employee commitment. The organization must exhibit a high level of commitment to its employees. If employees are concerned about losing their jobs, there is very little likelihood of high level of employees’ commitment. If people are not given adequate resources, facilities and training they will not be likely to view the organization as being committed to them as well.
REFERENCES
- Buchanan (1974).Building organizational commitment: Science Quarterly. Vol. 19, page 533 to 546.
- Chughtai, Aamir Ali &Zafar, Sohail (2006). Lahore School of Economics :Antecedents and Consequences of Organizational Commitment Among Pakistani University Teachers. Applied H.R.M. Research, Volume 11, Number 1, pages 39-64
- Elangovan, A.R.( 2001). Causal ordering of stress, satisfaction and commitment, and intention to quit: a structural equations analysis, Leadership & Organization Development Journal, 22(4), 159-165
- Gbadamosi, G. (2003). HRM and the commitment rhetoric: Challenges for Africa. Management Decision, 41(3): 274–280. [19]Jui-Chen Chen, Colin Silverthorne and Jung-Yao Hung (2006).Organization communication, job stress, organizational commitment, and job performance of accounting professionals in Taiwan and America. Leadership & Organization Development Journal, 27 (4), 242-249