The Effect of Employees Commitment on Organizational Performance of Access Bank
Chapter One
Objectives of the Study
The broad objective of this study is to examine employee commitment to organizational performance in access bank
The specific objectives of the study are:
- To describe the socio-economic characteristics of employees in access bank
- To identify challenges of employees commitment in access bank
- To investigate the impact of employee commitment on organisational performance in access bank
- To examine the relationship between employee commitment and organisational performance in access bank
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Employee Performance
Organizations achieve their objectives when competent and committed employees are engaged. Getting committed employees who are competent and ready to give in their best in the pursuit of the objectives of the organization has been one of the problems facing most organizations especially in the service industry. Sharma and Bajpai assert that employees are regarded as committed to an organization if they willingly continue their association with the organization and devote considerable effort to achieving organizational goals. The high levels of effort exerted by employees with high levels of organizational commitment would lead to higher levels of performance and effectiveness of both the individual and the organizational levels Employee Performance is defined as the attained outcome of actions with the skills of employees who perform in some situation
Employee Commitment
Employee commitment has been defined as the degree to which the employee feels devoted to their organization (Akintayo, 2010). Moreover, Ongori (2007) describes employee commitment as an affective response to the whole organization and the degree of attachment or loyalty employees feel towards the organization. Meyer and Herscovitch (2001) and Reetta (2018) sees it as a psychological state that binds an employee to an organization thereby reducing the problem of employee turnover and as a mind-set that takes different forms and binds an individual to a course of action that is of important to a particular target. It is therefore, important to note that all these definitions take into cognizance employees’ loyalty and affection. However, employees are committed when they perceived fairness in their psychological contract. Employee commitment is underpinned by social exchange theory, which views the employment relationship as a process of resource exchange governed by the norm of reciprocity (Shore & Wayne, 1993; Coyle-Shapiro, Kessler, 2000), encompassing both ongoing conferment of benefits and continual re-balancing of expectations and obligations. Perceptions of the mutual obligations held by the employee and the employer may be the result of formal contracts entailed in an employment relationship or implied by the expectations which two parties hold of each other; the latter being captured in the concept of psychological contract (Wang, Indridasson & Saunders, 2010). Employees reciprocate their employer, based on the extent to which they perceive obligations to them have been fulfilled (Coyle-Shapiro & Morrow, 2006). The more the employer fulfils obligations and meets expectations, the more employees feel secure and satisfied, and consequently obligated to reciprocate. Indeed, employee commitment is a crucial factor in achieving organizational success (Ogeniyi, Adeyemi & Olaoye, 2017; Nasiri, 2017). Individuals with low levels of commitment will do only enough to work. They do not put their hearts into the work and mission of the organization. They seem to be more concerned with personal success than with the success of the organization as a whole. People who are less committed are also more likely to look at themselves as outsiders and not as long – term members of the organization (Irefin & Mechanic, 2014; Zheng, Sharan & Wei, 2010). Assuch, an attractive job offer elsewhere is very likely to result in their departure. In contrast, employees with high commitment to an organization see themselves as an integral part of the organization. Anything that threatensthe organization is an imminent danger to them as well. Such employees become creatively involved in the organization’s mission and values, and constantly think about ways to do their jobs better (Andrea, 2017. In essence, committed employees work for the organization as if the organization belongs to them. Ajadi and Yussuf (2016) opined that committed employees are those who are morally bounded and are not likely to terminate their appointment with the organization prematurely. Scholars have attempted the classification of commitment as a unidimensional construct thereby treating it as such. Nevertheless, the idea that commitment emanates from different mindsets has heightened the popularity of a multidimensional view of organizational commitment (Meyer & Allen, 1991). This study aligns itself with the latter view by treating organizational commitment as a multidimensional construct (see Udu & Ameh, 2016); Sabir, Majid, Nawal & Majid, 2015); Meyer & Allen, 1991, 1997 & 1993). Therefore, employee commitment dimensions considered in this study include: affective, normative and continuance commitment. Affective commitment measures employees’ emotional attachment and participation in the organization. This means that employees love their organization with all their heart. It shows the extent to which the individual identifies with the organization in terms of identification, involvement and emotional attachment. Normative commitment is a feeling of normal obligation to an organization.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitutes of individuals or elements that are homogeneous in description.
This study was carried to examine the effect of employees commitment on organizational performance. Access bank forms the population of the study.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain the effect of employees commitment on organizational 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 the effect of employees commitment on organizational performance
Summary
This study was on effect of employees commitment on organizational performance. Four objectives were raised which included: To describe the socio-economic characteristics of employees in access bank, to identify challenges of employees commitment in access bank, to investigate the impact of employee commitment on organisational performance in access bank and to examine the relationship between employee commitment and organisational performance in access bank. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from access bank. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
It is evident that as firms become ubiquitous, there is a tense struggle and competition to attract and retain certain human capital (employees). The study was embarked upon with a view towards determining the significance of employee commitment on organizational performance. The results of the study bring out the fact that employee commitment is a predictor of organizational development. Enhancing employee commitment is vital for the effective functioning of an organization, and to ensure growth and expansion of the organization at a faster pace. Offering good financial and non-financial compensation and perhaps having a top notch on employee’ appraisal is good but most important is knowing employees, and by engaging with them, know what their pain points generally are and solving them accordingly as much as lies in the organization’s capacity. This will help create an image in the mindset of the employees for which reason they would opt to remain with the organization and be steadfast in achieving the organization’s objectives. In that way, an organization can retain its best employees and much likely increase it by virtue of the fact that a satisfied employee would be an advocate for other employee and potential employees who have similar pain points. Consequently, organizations must exhibit a high level of commitment (organisational commitment) to its employees if the organization is to get employees to be committed.
Recommendation
Based on the findings, the following recommendations are hereby suggested: Since it was found that there is fairly a high relationship between employee commitment and organizational performance, the top management of the organization are advised to recruit employees who are likely to become linked to the organizational objective. 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. The employees should be given adequate resources, facilities, training autonomy, and responsibility to strengthen the commitment of employees with their organization, performance. Further to make the employees of all age group and different years of experience towards increasing organizational performance, a fair and transparent treatment should be exercised throughout the organization.
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