Assessment Of The Contribution Of Employees Commitment On Organization Productivity

Project and Seminar Material for Business Administration and Management BAM

Assessment Of The Contribution Of Employees Commitment On Organization Productivity


Abstract


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 increasesthe 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.


Chapter One


Introduction

1.1 Background to 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., 2004:1180). 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;

  1. Analyze the effect of employee commitment on organization productivity
  2. Find out the factors that influence employees to be committed
  3. Examine the role of employee commitment on employee performance
  4. Investigate the challenges faced by committed employees

1.4 Research Question

  1. Is there any effect of employee commitment on organization productivity?
  2. What are the factors that influence employees to be committed?
  3. What is the role of employee commitment on employee performance?
  4. 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).


Chapter Five


Summary, Conclusions and Recommendations:

5.1 Introduction

This chapter summarizes the findings on employee commitment and organizational performance; using Covenant University in Otta as a case study. The chapter consists of summary of the study, conclusions, and recommendations.


5.2 Summary of the Study

In this study, our focus was on employee commitment and organizational performance: options for improvement using Covenant University in Otta as a case study.The study is was specifically carried out to examine the effect of employee commitment on increased quantity produced, determined the effect of employee commitment on increased organization’s profitability, and investigate the effect of employee commitment on increased sales volume of organization.

The study adopted the survey research design and randomly enrolled participants in the study. A total of 50 responses were validated from the enrolled participants where all respondent were staff of Covenant University in Otta.


5.3 Conclusions

Based on the findings of this study, the researcher concluded that;

  1. 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.
  2. Employee commitment increases organization’s profitability. Hence, there is a significant positive relationship between employee commitment and increased organization’s profitability.
  3. Employee commitment increases sales volume of the organization, thus indicating that there is a significant positive relationship between employee commitment and increased sales volume of organization.

5.4 Recommendations

Based on the findings of the study, the following recommendations are proffered.

  1. 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.
  2. 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.
  3. 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.

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Frequently Asked Questions


How does employee commitment affect organizational performance?

However, when employees positively interpret high commitment work practices, it sequentially increases their commitment to the organization, thereby increasing their individual performances and hence organizational performance also increases. Employee commitment refers to the individuals’ participation in the organizational activities.

What are the benefits of work commitment?

To know more about employee engagement and employee engagement, view our other articles. Benefits of work commitment A committed team of employees is an organization’s dream come true. A committed team of employees is best for the long-term future of an organization or any business.

What makes an employee commit to their work?

Commitment towards the organization – Several people believe that employee commitment is because of the identity of the organization, and the high recognition of the organization which makes the employees commitment to their work.

What do you mean by employee commitment?

Employee commitment refers to the individuals’ participation in the organizational activities. It is an effective reaction to the entire organization and the degree of employees’ loyalty towards the organization. It is basically employees’ attitude to organization.

What is the value of employee commitment?

This award honors a veteran employee who has made a meaningful impact to their company and/or the community in support and service of veterans and/or veteran families in the National Capital Region.

What is the relationship between organizational commitment and performance?

The high level of efforts exerted by employees with high level of the organizational commitment leads to higher levels of performance and effectiveness both at the individual and the organizational levels. Here, employee performance is defined as the attained outcome of actions with the skills of employees who perform in some situation.

Why is commitment important in the workplace?

Hence, commitment is now considered a natural process for effective performance of the employees as well as for the organization. Every organization strives hard to induce commitment in the employees. The organizational management uses different means and methods to enhance employee’s commitment.

What makes an employee commit to their work?

Commitment towards the organization – Several people believe that employee commitment is because of the identity of the organization, and the high recognition of the organization which makes the employees commitment to their work.

Does job empowerment affect employees’ commitment to work?

The study is conducted in Hoon Lee, (2008) Taiwan. Data was gathered from 40 companies’ .They proves that both work redesign and Researcher found that the effects of the job empowerment has positive and direct impact on satisfaction on the organizational performance. employees’ commitment. Tsung-Hsien Kuo, Data collect through questionnaire.

What is the meaning of committed to work?

Commitment to work. Definition: Commitment to work or work commitment is defined as the level of enthusiasm an employee has towards his/her tasks assigned at a workplace. It is the feeling of responsibility that a person has towards the goals, mission, and vision of the organization he/she is associated with.

What influences employee commitment?

Our research has uncovered four factors have been proven to have the biggest influence on employee commitment levels. The influencers include: clear company goals, gaining energy from work, feeling a fit with the company and a challenging work environment.

What makes an employee committed to the organization?

Employees are regarded as committed to the organization if they are willingly to continue their association with the organization and devote considerable efforts for achieving organizational goals.

What are the benefits of work commitment?

To know more about employee engagement and employee engagement, view our other articles. Benefits of work commitment A committed team of employees is an organization’s dream come true. A committed team of employees is best for the long-term future of an organization or any business.

What are employee obligations?

Employee Responsibilities: Every employee linked with the company is allocated specific responsibilities to accomplish daily, weekly, or monthly. This responsibility defines the precise path that needs to be followed by an employee daily. Employees get paid by working successfully on such duties. 

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