Effect of Employee Commitment on Organizational Performance in Coca Cola Nigeria Limited Maiduguri, Borno State

By P. Irefin, M. Mechanic. 2014

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This paper examines the Effect of Employee Commitment on Organizational Performance with special interest in Coca Cola Nigeria Limited. Much of the interest in analysing employee commitment stems from concern for the behavioural consequences that are hypothesised to result from it. This paper focuses on the influence of employee commitment on Organisational Performance and Employees’ turnover. Both descriptive and explanatory research methodologies were adopted in this study. A five point numerically scaled Likert-Type questionnaire was constructed and administered among selected Staff of Coca Cola Nigeria Limited. The research hypotheses were tested using the Pearson Correlation Coefficient. The result shows that: the level of employee commitment of the Staff of Coca Cola Company Plc is very high; there is a fairly high relationship between employee commitment and organizational performance ; there is also a very high relationship between employee commitment and employees’ turnover etc. Some of the recommendations made are that: the management should hire employees who are likely to become linked to the organization; management should create clear and realistic job and organizational previews. I. Background Of The Study Organizations value commitment among their employees because it is typically assumed to reduce withdrawal behaviour, such as lateness, absenteeism and turnover. Hence, there is no doubt that these values appear to have potentially serious consequences for overall organizational performance. The study of employee commitment is important because; a Lo (2009) noted that employees with sense of employee commitment are less likely to engage in withdrawal behaviour and more willing to accept change. Hence, there is no doubt that these values appear to have potentially serious consequences for a core of committed individuals who are the source of organizational life; (b). Workers who become less committed to an organization, will route their commitment in other directions; thus, it is important to know how to develop the right type and level of employee commitment to ensure that the better employees are retained; (c). Employees who develop a high level of employee commitment tend to be highly satisfied and are fulfilled by their jobs; (d). In the current global economic scenario, organizational change is a continuous process that requires support of all employees in the hierarchical structure. 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. 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. Effect Of Employee Commitment On Organizational Performance In Coca Cola Nigeria Limited www.iosrjournals.org 34 | Page 1.2 Statement Of The Problem Employers are sometimes baffled when their highly-rated employees under-perform and others resign and leave the organization. Management fail to understand why some employees are not committed to the organization even though they have proactively implemented fair compensation policies and human resource (HR) practices to motivate and retain them. It can be costly if employees are not committed in their jobs, and if they lack the motivation to exercise their full potentials. 1.3 Objectives Of The Study The general objective of this study is to examine employee commitment in the Nigerian Business Environment using Coca Cola Maiduguri as a Case Study. The specific objectives of the study are as follows, to: i. investigate the impact of employee commitment on organizational performance; ii. examine the relationship between employee commitment and employees turnover; iii. examine the dimensions of employee commitment; 1.4 Research Hypotheses Based on the research questions, the following hypotheses was tested during the course of the study: Hypothesis I Ho: That employee commitment does not enhance organizational performance. H1: That employee commitment enhances organizational performance. Hypothesis II Ho: That employee commitment does not reduce employees’ turnover. H1: That employee commitment reduces employees’ turnover. II. Literature Review This section considers the current literature which deals with employee commitment and workers’ performance. Although, many of the studies reviewed did not address the employee commitment among Nigerian workers directly, their findings are considered applicable to the Nigerian scenario. 2.2 Definitions Of Employee Commitment According to Akintayo (2010) employee commitment can be defined as the degree to which the employee feels devoted to their organization. Ongori (2007) described employee commitment as an affective response to the whole organization and the degree of attachment or loyalty employees feel towards the organization. Zheng, (2010) describes employee commitment as simply employees’ attitude to organization. This definition of employee commitment is broad in the sense that employees’ attitude encompasses various components. 2.3 Employee Commitment And Workers Performance Employee commitment seems to be a crucial factor in achieving organizational success. Individuals with low levels of commitment will do only enough to work by. 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. An attractive job offer elsewhere is very likely to result in their departure. By contrast, employees with high commitment to an organization see themselves as an integral part of the organization. Anything that threatens the organization is an imminent danger to them as well. Such employees become creatively involved in the organisations mission and values, and constantly think about ways to do their jobs better. In essence, committed employees work for the organization as if the organization belongs to them. The relationship between employee commitment and workers’ performance has been studied under various disguise. Khan, (2010) investigated the impact of employee commitment (Affective commitment, Continuance commitment and Normative commitment) on employee job performance from a sample of 153 public and private and public sector employees of oil and gas sector in Pakistan. The results revealed a positive relationship between employee commitment and employees’ job performance. Therefore, job performance emerged as a determinant of employee commitment. Thus, Khan, (2010) advised managers to pay special attention to antecedents of employee commitment and all the factors which foster employee commitment so as to increased employee performance and subsequently increase organizational productivity. Habib, (2010) investigated the interdependency of job satisfaction and job performance, effect of employee commitment and attitude towards work on performance using a survey data collected from 310 Effect Of Employee Commitment On Organizational Performance In Coca Cola Nigeria Limited www.iosrjournals.org 35 | Page employees of 15 advertising agencies of Islamabad (Pakistan). They found that employees having greater employee commitment perform well and employees having good attitude towards work are highly satisfied as compared to employees who are less inclined towards their work. Ali, (2010) found that there is positive relationship between corporate social responsibility and employee commitment as well as between employee commitment and organizational performance. They therefore concluded that organizations can improve their performance through employees’ commitment by engaging in social activities since such activities also include the welfare of employees and their families. 2.4 Determinants Of Employee Commiment Numerous factors have been found to inspire commitment. For instance, Ongori (2007) opines that the degree to which employees are committed or loyal to their organiz

Subfields: Accounting, Demography, Organizational Behavior and Human Resource Management

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