ORGANIZATIONAL COMMITMENT AND EMPLOYEE PRODUCTIVITY (A STUDY OF COMMERCIAL BANKS IN PORT HARCOURT, RIVERS STATE)

Complete Material Cost #3,000

Order for Complete Material now

ABSTRACT

This research is entitled, organizational commitment and employee productivity with special attention to selected Commercial banks in Port Harcourt, Rivers State. The main objective of this study is to examine the relationship between organizational commitment and employee productivity. However, for the sake of time constraint the population of the study comprises one hundred and twenty (120) senior and junior staff of three selected commercial banks in Port Harcourt, Rivers State which include Union bank  = 50, Fidelity bank  = 40 and First bank = 30 all in Port Harcourt but using the Taro Yemen formular to determine the level of confidence, the researcher arrived at 96 making the sample size of the study.  Data collection was done using a structured questionnaire while the hypothesis was tested electronically with SPSS Version 22 of the chi-square test. The finding of this research shows that there is a significant relationship between all the dimensions of organizational commitment and employee productivity. This simply means that if the organization has more committed employee, it will always have a better productivity. Based on the conclusion of the study, the following recommendations were made among others: since it was found that there is fairly a high relationship between organizational commitment and employee productivity, the top management of the organization are advised to recruit employees who are likely to become linked to the organizational objective, that 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 and that employees should be given adequate resources, facilities, training autonomy, and responsibility to strengthen the commitment of employees with their organization, performance.

TABLE OF CONTENTS

Title Page    i

DECLARATION iii

CERTIFICATION         iv

DEDICATION     v

ACKNOWLEDGEMENTS     vi

ABSTRACT        vii

TABLE OF CONTENTS        viii

LIST OF FIGURES       xi

CHAPTER ONE  1

INTRODUCTION         1

1.1Background of the Study:  1

1.2 Statement of the Problem: 2

1.3 Objectives of the Study:    3

1.4 Research Questions: 4

1.5 Statement of Hypotheses: 4

1.6 Significance of the study   5

1.7 Scope and Limitation of the Study       5

1.8 Definition of Terms 6

CHAPTER TWO 8

REVIEW OF RELATED LITERATURE   8

2.1 Conceptual Framework     8

2.1.1 Concept of Organisational Commitment:    8

2.1.2 Dimensions of Organisational Commitment:        10

2.1.3 Employee Productivity:  12

2.1.3 Measures of Employee Productivity: 13

2.1.4 Organizational Commitment and Employee Productivity        15

2.2 Theoretical Framework     15

2.2.1 Vroom’s Expectancy Theory   15

2.3 Empirical Framework:      16

CHAPTER 3        19

RESEARCH METHODOLOGY      19

3.1 Research Design      19

3.2 Population of the Study    19

3.3 Sample Size Determination         20

3.4 Sampling Techniques        21

3.5 Source and Method of Data Collection 21

3.6 Methods of Data Collection        22

3.7 Questionnaire Design        23

3.6     Data Analytical Techniques    23

3.7 Reliability and Validity     24

CHAPTER 4        25

DATA PRESENTATION AND ANALYSIS       25

4.1Data Collection and Presentation 25

4.2 Data Analysis 26

4.3 Hypotheses Testing 30

4.3 Discussion of Findings      33

CHAPTER FIVE 35

CONCLUSION, SUMMARY AND RECOMMENDATIONS         35

5.1 Summary:      35

5.2 Summary:      35

5.3 Recommendations:  36

References: 37

APPENDIX I       39

APPENDIX II      40

LIST OF TABLES

Table 4.1: Questionnaire Administration and Retrieval 25

Table 4.2: showing the age of respondents 26

Table 4.3: Showing the Gender/Sex of Respondents     26

Table 4.4: Showing the Educational Qualification of the Respondents      27

Table 4.5: Showing the Marital Status of Respondents 27

Table 4.6: Affective commitment and Employee Productivity.         28

Table 4.7: Continuance Commitment and Employee Productivity.  28

Table 4.8: Normative Commitment and Employee Productivity.     29

LIST OF FIGURES

Fig. 2.1: A Conceptual Framework on Organisational Commitment and Employee Productivity         8

CHAPTER ONE

INTRODUCTION

 1.1Background of the Study:

In today’s competitive world, every organization is faced with new challenges regarding sustained productivity and creating committed workforce. Hence, it is important to understand the concept of commitment and it overt influence on the organisation (Dixit and Bhati, 2012). It is imperative to mention that commitment has the power to mar or make a business organization. It is no longer good enough to have employees who come to work faithfully every day and do their jobs independently. Employees now have to think like entrepreneurs while working in teams and have to prove their worth. People are the most important drivers of a company competitive advantage (Maugo, 2013).

To ensure the achievement of firm goals, the organization creates an atmosphere of commitment and cooperation for its employees through policies that facilitate employee satisfaction. In this case, we are not talking about policies that are barbaric and adulterated but policies that consider and understand the human nature of the employee and provide incentives were necessary. Satisfaction of human resource finds close links to highly motivated employees. Motivated employees then develop loyalty or commitment to the firm resulting to greater productivity and lower turnover rates (Kabir and Parvin, 2011).

Over the past few years, there have been numerous supports on human capital development, lifelong learning and continuous attention on soft skill development. Nevertheless, many a times, issues are only attended to at the surface level but not to the roots of the cause. Human beings are highly associated with emotion and intelligence. Therefore, the requirement to fulfill human need hierarchy is rather an important aspect especially on satisfaction and motivation (Yukthamarani et al., 2013).

Employee commitment always plays a very key role in improving the organizational performance. The organizational performance can be measured through a lot of ways for example, company employee turnover, return on equity etc. Employee commitment can be enhanced through their involvement in assessment construction and providing them with the chance for better insight on the whole procedure of the organization performance measurement (Dost and Ahmed, 2011).

Therefore, the purpose of this study is to investigate factors affecting organizational commitments, identify relationship between organizational commitment and employee productivity and finally, identify the effects of organizational commitment upon the employee productivity.

1.2 Statement of the Problem:

In today’s competitive and dynamic world every organization is facing new challenges regarding competitive organizational performance and creating committed workforce (Addae H. M. & Wang X., 2006). In the present competitive environment no organization can perform at the maximum level, unless each employee in the organization is committed to the objectives of the organizations. Hence, it is important to understand the concept of commitment and its influence for feasible outcome.

Committed employees develop a bond with an organization and that creates better productivity. If that emotional connection to their career, relationships with other employees and the organization are present, they perform better and serve the organization better (Demovsek D., 2008). Successful organizations depend on the high performance of their employees to meet their objectives. In order to achieve their strategic aims and keep their competitive advantage, their employees must perform at high levels (Zheng W., Sharan K. & Wei J., 2010). Organizational behavior philosophers believe that it is also crucial to have the right employees for the right jobs (Kristof-Brown A. L., Zimmerman R. D & Johnson E. C., 2005). The person-job fit is important because it determines whether or not the employee is well-suited for the job (Dessler G., 2011).

Organizations need to understand that employees have their own requirements and personal wishes that need to be considered. This can determine if the employee feels positive or negative about the organization and needs to be treated individually (Schermerhorn J. R., 2010). Organizations must meet their strategic aims and advantage in the marketplace by employing and keeping high performing employees (Zheng W., Sharan K. & Wei J., 2010). Successful organizations make sure that there is a good match between the employee and the job (Kristof-Brown A. L., Zimmerman R. D & Johnson E. C., 2005).

Researches in the past have examined a number of elements that can affect job performance. Jaramilloa et al. (2005) and Al Ahmadi (2009) showed that a crucial element is employees’ commitment to their job. Therefore, this study aims at identifying the level of organizational commitment and employee productivity, and estimating the impact of commitment on employee productivity as the  commitment has become a major determinant of the productivity (Nabukeera, Ali & Raja, 2014).

1.3 Objectives of the Study:

The main objective of this study is to examine the relationship between organizational commitment and employee productivity. In specific term, this study shall:

1.       Examine the effect of affective commitment and employee productivity of commercial banks in Port Harcourt.

2.       Examine the effect of continua commitment on employee productivity of commercial banks in Port Harcourt.

3.       Examine the effect of normative commitment on employee productivity of commercial banks in Port Harcourt.

1.4 Research Questions:

The following research questions will guide the execution of this research work:

1.       To what extent does organizational affective commitment influences employee performance of commercial banks in Port Harcourt?

2.       To what extent does organizational continues commitment influences employee performance of commercial banks in Port Harcourt?

3.       To what extent does organizational normative commitment influences employee performance of commercial banks in Port Harcourt?

1.5 Statement of Hypotheses:

HO1: Organizational affective commitment does not influence employee performance of commercial banks in Port Harcourt.

HO2: Organizational continuance commitment does not influence employee performance of commercial banks in Port Harcourt.

HO3: Organizational normative commitment does not influence employee performance of commercial banks in Port Harcourt.

1.6 Significance of the study

This study is aimed at examining the relationship between organizational commitment and employee productivity of commercial banks in Port Harrcourt, it is believed that the completion of this research work will be of immense benefit to all and sundry:

Firstly, this study provides guidance to the management at different level and employees of commercial banks in Port Harcourt, Rivers State, and other industries within and outside the vicinity of Port Harcourt to understand factors that affects organisational commitment and effects of organisational commitments on employee productivity. Moreover, there is lack of studies concerning  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 for manufacturing industry.

Secondly, policy makers in the three tiers of government will find the recommendations that will follow in the study very useful because it will give sufficient insight into the issues of organizational commitment and employee productivity of commercial banks in Rivers State. Organizational management will see the need to take the issue of commitment very serious as the impact of it cannot be overemphasized o their companies.

The students and researcher will also benefit from the study because it will serve as a base data for those who might want to carry out further studies in the area.

1.7 Scope and Limitation of the Study

The scope of this study is delimited into the followings:

Content Scope: The specific areas of employee productivity the study investigated include; profitability, efficiency and effectiveness whereas, the areas of organizational commitment include affective, continuance and normative commitment.

Geographical scope: This study covers an examination of strategic contributions of organizational commitment and employee productivity of some selected commercial banks in Port Harcourt which include Union bank, Fidelity bank and First bank in Garrison, Port Harcourt, Rivers State Nigeria all in Port Harcourt.

Unit of Analysis: This is a micro study because it is interested in ascertaining the relationship between organizational commitment and employee productivity in this direction. Hence, it is a micro level study.

The major limitation of the study is the short time frame the research lasted, coupled with the tight academic time table, which prevented a very comprehensive study. The fund available to the researcher was also limited and therefore the study was limited to a small portion of the survey population.

1.8 Definition of Terms

This section will generally define variables and other related concepts on the research setting.

Organizational  Commitment: this is  the  measure  of  strength  of  the  employee’s identification  with  the  goals  and  values  of  the  organization. It is characterised by employee’s acceptance of organisational goals and their willingness to exert effort on behalf of the organization.

Affective Commitment: this is the employee’s emotional attachment to, identification with, and involvement in the organization.

Continuance Commitment: this is the awareness of the costs associated with leaving the organization.

Continue Employment: “a feeling of obligation”. Internalized normative beliefs of duty and obligation make individuals obliged to sustain membership in the organization.

A goal is a desired result or possible outcome that a person or a system envisions, plans and commits to achieve: a personal or organizational desired end-point in some sort of assumed development.

Efficiency: this has to do with accomplishment standard of accuracy, completeness, cost and speed.

Complete Material Cost #3,000

Order for Complete Material now