ORGANIZATION COMMITMENT AND SUBORDINATE JOB PERFORMANCE (A SURVEY OF SELECTED MICROFINANCE BANK IN PORT HARCOURT)

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Abstract

The study has examined the relationship between organizational commitment and subordinate performance. The purpose of the study is to examine the relationship between effective commitment and subordinate job performance in selected microfinance banks in Port Harcourt, to examine the relationship between continuous commitment and subordinate job performance in selected microfinance banks in Port Harcourt and to examine the relationship between normative commitment and subordinate job performance in selected microfinance banks in Port Harcourt. The survey research design was adopted for the study. The population of the study is made up of 100 senior and junior staff of Garden City Microfinance Bank Limited, Maxitrust Microfinance Bank Limited and Midland Microfinance Bank Limited. The Taro yemen’s formula was used to determined the sample size of 80. Data collection was done using a structured questionnaire. The method used to analyze the data was simple descriptive method stated in tables and expressed in percentage. A self-design questionnaire on outsourcing strategies and corporate survival was used specifically for data collection, recording and measuring data or research variables. The chi-square statistical test was employed this test was used due to the nature of the questionnaire designed for the hypothesis testing with the SPSS version 22. Based on the findings of the study, there is need to consider an appropriate weight for organizational commitment evaluation programs as a crucial executive indicator managers need to provide opportunities for increasing commitment and motivation; decreasing absenteeism and job quitting; promoting tendency to participate and learn and finally increasing commitment to goals providing opportunities for team operational work and help improving productivity in the organization, optimal commitment s need to be determined for implementing organization commitment policy, payment processes need to be performed based on job performance and particularly learning diverse skills in motivational systems and managers should consider motivation/commitment programs including motivational payments; assignment of responsibility and authority to employees while executing the process of job performance.

Table of Contents

Title Page    i

Title Page    ii

Declaration iii

Certification         iv

Dedication  v

Acknowledgements        vi

Abstract      vii

Table of Contents viii

List of Tables       x

List of Figures      xi

CHAPTER ONE  1

INTRODUCTION         1

1.1 Background of the Study  1

1.2 Statement of Problems      4

1.3Objectives of the Study      5

1.4Research Questions  5

1.5Research Hypotheses         6

1.6Significance of the Study    6

1.7Scope/Limitation of the Study     7

1.8Definition of Terms  8

CHAPTER TWO 9

LITERATURE REVIEW        9

2.1 Conceptual Framework     9

2.1.1 The concept of organizational commitment 10

2.1.2 Measures of Organizational Commitment   11

2.1.3 Subordinate Job Performance  13

2.1.4 Measures of Subordinate Performance        14

2.1.6 Relationship between Fringe Benefit and Subordinate Job Performance    16

2.2    Theoretical Review         17

2.2.1 Expectancy Theory        17

2.2.2 Need Theory         18

2.3     Empirical Framework   18

CHAPTER THREE       21

RESEARCH METHODOLOGY      21

3.1 Research Design      21

3.2 Population of the Study    21

3.3 Questionnaire Design        22

3.4 Source and Method of Data Collection 22

3.5 Sample and Sampling Techniques        23

3.6 Data Analytical Techniques        24

3.7  Reliability and Validity    25

CHAPTER 4        26

DATA PRESENTATION AND ANALYSIS       26

4.1 Data Collection and Presentation         26

4.2 Data Analysis 27

4.3 Testing of Hypothesis       32

CHAPTER FIVE 38

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS       38

5.1 Summary       38

5.2 Conclusions   38

5.3 Recommendations   39

Appendix I 43

Appendix II          44

List of Tables

Table 4.4: Showing the Educational Qualification of the Respondents      28

Table 4.5: Showing the Marital Status of Respondents 29

Table 4.6: Effective commitment enhance subordinate job performance in selected microfinance banks in Port Harcourt  30

Table 4.7: Continuous commitment influence subordinate job performance in selected microfinance banks in Port Harcourt.         31

Table 4.8: Normative commitment relate to subordinate job performance in selected microfinance bank in Port Harcourt. 32

Table 4.3: Showing the Sex of Respondents        28

Table 4.2: Showing the age of respondents          27

Table 4.1: Questionnaire Administration and Retrieval 26

List of Figures

Figure 2.1: A Conceptual Framework Showing the Relationship between Organizational Commitment and subordinate job performance.  9

CHAPTER ONE

INTRODUCTION

1.1     Background of the Study

Performance improvement in an organization goes beyond the commonly accepted principles of good management and effective leadership by engaging the emotional commitment of the employee (Katzenbach, 2000) Commitment is the differentiating factor between top performing companies and those of average performance (Katzenbach, 2000). Emotionally engaged employees are more productive and more customer-focused. High-levels of employee commitment are positively correlated with superior financial performance in organizations demonstrated by significant increases in operating and net profit margin (International Survey Research, 2001; Gallup, 2002; Watson Wyatt Global Consulting, 2003). Individuals and teams that are committed to the values and goals of an organization have a higher morale and lower turnover, increased job satisfaction, and increased productivity (Cohen, 2003; Meyer & Allen, 1997; Mowday, Porter, & Steers, 1982).

Commitment affects the organization and the person, making two levels. (a) Organizational commitment which is directed by organization attributes and defined as the psychological and emotional attachment of employees to their organizations (Morrow, 1993; Meyer & Allen, 1991; Mathieu & Zajac, 1990). (b) Individual employee commitment, guided by attributes that directly affect the person and is defined as the psychological and emotional attachment of individuals to their jobs, careers, work groups or teams, peers and supervisors  (Cohen, 2003).

Organizational commitment is the measure of strength of the employee’s identification with the goals and values of the organization (Mowday et al., 1982) and supervisor. Individuals committed to the organization exert extra effort, desire organizational membership (Morrow, 1993), protect company assets, and share company goals and values (Meyer & Allen, 1997). Supervisory commitment is defined as the strength of identification with supervisor and internalization of supervisor’s values. Identification occurs when the subordinate admires certain attributes of the supervisor, such as attitudes, behavior, and accomplishments.

Internalization occurs when the subordinate adopts the attitudes and behaviors of the supervisor because the supervisor’s attitudes and behaviors are congruent with the subordinate’s value systems (Becker, 1992; Gregersen & Black, 1993). Commitment to organization is related positively to a variety of desirable work outcomes including employee job satisfaction, motivation and performance, and related negatively to absenteeism and turnover (Mathieu & Zajac, 1990). Organizational commitment can be measured as either attitudinal or calculative. Attitudinal, referred to as affective (Meyer, Allen, & Smith 1993), or internalization and identification (O’Reilly & Chatman, 1986) is the employee’s emotional attachment and identification with the organization (Meyer & Allen, 1997;  Mowday et al., 1982; Cohen, 2003; Porter et al 1974). Employees continue with the organization because they want to do so (Meyer & Allen, 1997; Mowday et al, 1982) and feel proud to be part of the organization, respecting its values and accomplishments (O’Reilly & Chatman, 1986). The calculative or “side-bet” (Becker, 1960), also referred to as continuance (Meyer & Allen, 1997) and compliance (O’Reilly & Chatman, 1986), signifies the extent to which employees feel committed to their organization by virtue of the cost that they feel is associated with leaving it and their need to remain with the organization (Becker,1992; Meyer & Allen, 1997). 

Organizational Commitment as theorized in the three  forms  identified  in  literature,  as affective, continuance,  and  normative  commitment  (Simmons, 2005; Tsai & Huang,  2008; Islam et al, 2012;  Khan et al, 2013). Organizational commitment is a condition in which an employee recognizes himself/herself with a particular organization and its objectives, and wants to remain its participant.

Organizational commitment is not a complementary concept. Allen and Mayer refer to three dimensions of affective commitment, continuous commitment, and normative commitment, all connecting employees to their organization (Sethi& Seth, 2009). Organizational commitment is a multidimensional psychic-mental situation delineating people’s relation with their organization (Gormley&Kennerly, 2010).

Performance of an employee at his/her workplace is a point of concern for all the organizations, irrespective of all the factors and conditions. Consequently the employees are considered to be very important assets for their organizations (Qureshi & Ramay.  2006). A good performance of the employees of an organization leads towards a good organizational performance thus ultimately making an organization more successful and effective and vice versa (Armstrong & Baron, 1998). Stress is an unavoidable consequence of modern living. It is a condition of strain that has a direct bearing on emotions, thought process and physical conditions of a person (Jayashree, 2010). In fact, stress is much more common in employees at lower levels of workplace hierarchies, where they have less control over their work situation (Beheshtifar & Nazarian, 2013).

Accordingly and with regard to the undeniable  necessity of  organizational disorders,  this paper aims to assess the effect of job rotation as a tool for human resource management and study individual and organization consequences. From the foregoing, the study is determined to examine the relationship between organizational commitment and subordinate job performance in selected banks in Port Harcourt, Rivers State.

1.2 Statement of Problems

Research into organizational commitment and subordinate job performance is becoming more important because some researchers have examined the relationship between them (Christoph, 1996) and also the relationship between employee benefits, motivation and productivity (Hong, et al., 1995).

Numerous surveys and experience of human resources professionals have shown that while employees are concerned about how to earn more pay and enjoy attractive conditions of service, employers on the other hand would be striving to cut costs so as to post impressive profit at the end of the accounting period (Milkovitch and Newman, 2004).   Meanwhile, studies have shown that provision of motivators has been resulting in employees’ increased interest in the job, enthusiasm and increased productivity at work and absence of motivators has been the other way round (Mathis and John, 2003).

Having flexible, handy and skillful employees is a wish for any manger and system. Such people in any organization provide a good ground for facilitating and expediting works, and saving time and resources. One important approach to accomplish this is job rotation (Seyedjavadin, 2013).

Therefore, the study is determined to examine the relationship between organizational commitment and subordinate job performance in selected microfinance banks in Port Harcourt.

1.3     Objectives of the Study

The main objective of the study is to examine the relationship between organizational commitment and subordinate job performance in selected microfinance banks in Port Harcourt. The specific objectives area follows:

1.       To examine the relationship between effective commitment and subordinate job performance in selected microfinance banks in Port Harcourt.

2.       To examine the relationship between continuous commitment and subordinate job performance in selected microfinance banks in Port Harcourt.

3.       To examine the relationship between normative commitment and subordinate job performance in selected microfinance banks in Port Harcourt.

1.4     Research Questions

The following research questions are posed to guide the study:

1.       Does effective commitment enhance subordinate job performance in selected microfinance banks in Port Harcourt?

2.       Does continuous commitment influence subordinate job performance in selected microfinance banks in Port Harcourt?

3.       Does normative commitment relate to subordinate job performance in selected microfinance banks in Port Harcourt?

1.5     Research Hypotheses

          The following hypotheses were formulated to guide the study:

HO1: There is no significant relationship between affective commitment and subordinate job performance in selected microfinance banks in Port Harcourt, Rivers State.           

H02: There is no significant relationship between continuous commitment and subordinate job performance in selected microfinance banks in Port Harcourt, Rivers State.

1.6     Significance of the Study

Firstly, it will assist the organization to continually plan for the good of their employee’s and also make use of job rotation system to enhance commitment for the good of the organization.

Others who will benefit from the study include, managers, business organizations, higher institutions and the society in general. The study will also add to literature on the subject matter.

The researcher benefitted from the study as it added on to the growing body of knowledge on the roles of organizations commitment. The study will also act as a source of reference for further studies to be done on human resource in most organizations in Nigeria.

The study will also help the Government and other employers with information which will help them come up with policies and legislations on administration.

Future researchers will also benefit from this study because it will provide them with relevant information on related topic.

1.7     Scope/Limitation of the Study

The study is delimited under the following heading: content scope, geographical scope and unit of analysis.

Content Scope: The content scope of this study involves an investigation to ascertain the relationship between organizational commitment and subordinate job performance. The dependent variable is subordinate job performance, measures by executing defined duties, meeting deadlines, team input and achieving departmental goals. While independent variable is organizational commitment measure by affective commitment, continuous commitment and normative commitment.

Geographical Scope: This study is delimited in Port Harcourt Metropolis with special reference to some selected microfinance banks.

Unit of Analysis: The unit of analysis in this research involves the respondents at the time of carrying out the study. The scope of this study is to ascertain the relationship between organizational commitment and subordinate job performance. Hence it is a micro level study.

In carrying out an investigation of this native the researcher must of necessity be faced the following constraint.

Firstly, the time constraint’s the time frame provision for this study was short.

Secondly, Financial constraints. Usually, a study of this nature involved some level of expenditure therefore; finance was also a limiting factor.

Thirdly, Poor response from the respondent and inability to access the entire population of the study. In the next segment significance of the study will be discussed. Lastly, poor measurement instrument.

1.8     Definition of Terms      

Affective Commitment:- This is the employee’s emotional attachment to the   organization.

Continuance Commitment:- This is   a   readiness   of   a   worker   to   be   a   part   of   an organization.

Normative Commitment:- This implies a feeling of obligation to continue employment.

Equity:- This implies giving as much advantage, consideration, or latitude to one party as it is given to another.

Needs fulfillment:- This is the situation in which the worker has the feeling of being happy and satisfied with his life because he is doing interesting, useful, or important things.

Value Attainment:- This is the importance an employee attach to the task as it relates to their conception of their identity and ideals or their competence in a their work environment.

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