Effects Of Employees Commitment On Organizational Performance

Project and Seminar Material for Human Resource Management (HRM)

Effects Of Employees Commitment On Organizational Performance


Abstract


This study is on effects of 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.


Table of Contents


Preliminary Page(s)

  • Title Page
  • Declaration
  • Approval
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of Content

Chapter One

1.0 Introduction

  • 1.1 Background of the study
  • 1.2 Statement of problem
  • 1.3 Objective of the study
  • 1.4 Research Hypotheses
  • 1.5 Significance of the study
  • 1.6 Scope and limitation of the study
  • 1.7 Definition of terms
  • 1.8 Organization of the study

Chapter Two

2.0 Literature Review


Chapter Three

3.0 Research Methodology

  • 3.1 sources of data collection
  • 3.3 Population of the study
  • 3.4 Sampling and sampling distribution
  • 3.5 Validation of research instrument
  • 3.6 Method of data analysis

Chapter Four

Data Presentation, Analysis and Interpretation

  • 4.1 Introductions
  • 4.2 Data analysis

Chapter Five

5.0 Summary, Conclusion and Recommendation

  • 5.1 Introduction
  • 5.2 Summary
  • 5.3 Conclusion
  • 5.4 Recommendation
  • Appendix

Chapter One


Introduction

1.1 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
  3. Ascertaining whether employee’s commitment determines organizational Performance.

1.4 Research Hypotheses

  1. Ho: There is no significant relationship between job satisfaction and employees’ commitment
    Hi: There is significant relationship between job satisfaction and employees’ commitment
  2. 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;

a) Availability Of Research Material:

The research material available to the researcher is insufficient, thereby limiting the study

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 the workers 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

Chapter Five


Summary, Conclusion And Recommendation

5.1 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.


5.2 Summary

This study aimed at having a critical analysis of effects of employee commitment on organisational 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.


5.3 Conclusion

The empirical results indicate that there is a fairly high relationship between employee commitment and organizational performance in Coca Cola Company 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.


5.3 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.


Effects Of Employees Commitment On Organizational Performance


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