This study was carried out to examine employee commitment and organizational performance: options for improvement using Asamma Foods & Beverages Limited, Onitsha, Anambra State as a case study. The survey design was adopted and the simple random sampling techniques were employed in this study. The population size comprise of staff of Asamma Foods & Beverages Limited, Onitsha, Anambra State. In determining the sample size, the researcher conveniently selected 50 respondents and all were validated. Self-constructed and validated questionnaire was used for data collection. The collected and validated questionnaires were analyzed using mean scores and frequency tables, while the hypothesis were tested using Pearson Correlation statistical tool, SPSS v23. The result of the findings reveals that employee commitment increases the quantity of production in the organization. Therefore depicting that there is a significant positive relationship between employee commitment and increased quantity produced. The study also revealed that employee commitment increases organization’s profitability. Hence, there is a significant positive relationship between employee commitment and increased organization’s profitability. Therefore, it is recommended that organizations should work hard to improve the workers financial situations through balanced payment, training and promotions for motivation of employees for financial motivation enhances employees’ moral for creativity and competition. And 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.
1.1 Background of the Study
Most organizations have realized that the performance of their workers plays a vital role in determining the success of the organization (Zheng, 2010; Ajila and Awonusi, 2004). As such, it is important for employers and managers alike to know how to get the best of their workers. One of the antecedent determinants of workers’ performance is believed to be employee commitment (Ali, 2010; Ajila and Awonusi, 2004). As such, it is important for employers and managers alike to know how to get the best of their workers. Employee commitment has become one of the most popular work attitudes studied by practitioners and researchers. Akintayo (2010) and Tumwesigye (2010) noted that one of the reasons why commitment has attracted research attention is that organization depend on committed employees to create and maintain competitive advantage and achieve superior performance. Commitment employees who are highly motivated to contribute their time and energy to the pursuit of organizational goals are increasingly acknowledged to be the primary asset available to an organization (Hunjra, 2010). They provide the intellectual capital that, for many organizations, has become their most critical asset (Hunjra, 2010). Furthermore, employees who share a commitment to the organization and their collective wellbeing are more suitable to generate the social capital that facilitates organizational learning.
Heathfield, (2009) is of the opinion that commitment from employees is a powerful gift. Commitment from employees is also a fragile gift. One needs to ensure that the work environment challenges employees to grow and stretch in their ability to contribute. One must also realize that the work environment must also nurture employees in employee-friendly ways. For characteristics such as contribution, growth, and challenge to flourish, an employee-oriented workplace must also emphasize softer – but harder to create – characteristics such as empowerment, effective communication, and activities that can boost employee-morale (Heathfield, 2009:1). Ivancevich et al. (2005:224) found that “research evidence indicates that the absence of commitment can reduce organizational effectiveness. People who are committed are less likely to quit and accept other jobs”. Hellriegel and Slocum (2004:54-55) explain that strong commitment is often correlated with high productivity, and according to Bennett and Minty (2005:16-17), various research studies have indicated that promoting employee commitment increases employee retention and, in addition, makes a positive contribution to organizational performance. Leather (2005:21) agrees that employee commitment lead to improved business performance.
It is therefore important for organization to know the aspects that play important role or have big impact in boosting the commitment of their employees. Several factors had been identified in the literature as determinants of employee commitment. Some of the identified factors include; leadership style (Lo, 2009); organizational fairness (Ponnu and Chuah, 2010); corporate social responsibility (Ali et al, 2010) etc. However, most of the past studies on employee commitment were not related to Nigerian business environment. Some of the findings of these studies may not be applicable to Nigeria. As such, it is pertinent to examine the role of employee commitment in achieving organizational performance in the context of Nigeria.
1.2 Statement of the Problem
The main problem that is facing organizations nowadays is how to encourage employees to contribute their knowledge for organizational gains. Knowledge creation is primarily a human brain activity; it is an intangible that can neither be supervised nor forced out of people. Knowledge creation occurs only when people voluntarily cooperate. Thus, it is necessary for organizations to understand the inner force that drives employees’ behavior to contribute knowledge. Janz and Prasarnphanich (2003:351) have found that satisfied employees that are having a pleasurable feeling resulting from job experience, are more likely to contribute their knowledge, improve their job performance, be creative and cooperate with others because satisfaction is the inner force that drives employees’ behavior. It is argued that committed employees are highly motivated, have good work morale, and work more effectively and efficiently. Committed employees are also more satisfied to continuous improvement and quality (Matzler et al., 2014:1180). Uncommitted employees, in contrast, often hold what they know and are unwilling to share their knowledge. Because organizational agility requires that employees at all levels engage in knowledge-based activities. The aim of this research therefore is to assess the contribution of employee commitment on organization productivity in Covenant University, Otta Ogun state.
1.3 Objective of the Study
The main objective of this study is to assess the contribution of employee commitment on organization productivity, specifically the study intends to;
- Analyze the effect of employee commitment on organization productivity
- Find out the factors that influence employees to be committed
- Examine the role of employee commitment on employee performance
- Investigate the challenges faced by committed employees
1.4 Research Question
- Is there any effect of employee commitment on organization productivity?
- What are the factors that influence employees to be committed?
- What is the role of employee commitment on employee performance?
- What are the challenges faced by committed employees?
1.5 Research Hypothesis
Ho: there is no effect of employee commitment on organization productivity
Hi: there is effect of employee commitment on organization productivity
1.6 Significance of the Study
This study provides guidance to the management at different level and employees Covenant University and other organization, to understand factors that affects employees’ commitment and effects of employees’ commitments to organizational performance. Moreover, there is lack of studies concerning employees’ commitment in the study area. Thus, this study makes suggestions to the management for further implementation, and gives a better understanding on the work environment In addition, the study makes a contribution to future research on employee commitment.
1.7 Scope of the Study
This research work will examine the concept of employee commitment and organization productivity, relating the two and analyzing the data gotten on the effect the former has on the latter, also Covenant University in Otta will be used as a case study.
1.8 Delimitation of the Study
Finance for the general research work will be a challenge during the course of study. Correspondents also might not be able to complete or willing to submit the questionnaires given to them.
However, it is believed that these constraints will be worked on by making the best use of the available materials and spending more than the necessary time in the research work. Therefore, it is strongly believed that despite these constraint, its effect on this research report will be minimal, thus, making the objective and significance of the study achievable.
1.9 Definition of Terms
Employee commitment: Commitment, on the other hand, denotes an employee’s enthusiasm for the company he or she works for.
Employee’s Commitment: The degree to which employees are bound emotionally or intellectually to the organization.
Employee’s turnover: It is the rate at which an employer gains and loses employees.
Organizational performance: It comprises the actual output or results of an organization as measured against its intended outputs (or goals and objectives).
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