Introduction
1.1 Background to the Study
Organizations have realized that the performance of their workers plays a vital role in determining the success of the organization (Zheng et al, 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 determinants of workers performance has been linked with employee’s commitment (Ali, 2010, Dex and Smith, 2001).
Akintayo (2010) and Sigye (2010) noted that one of the reasons why commitment has attracted research attention is that commitment is used to maintain competitive advantage and achieve superior performance. Committed employees who are highly motivated do contribute their time and energy to the pursuit of organizational goals and are increasingly acknowledged to be the primary asset available to an organization (Hunjra, 2010). Furthermore, an employee who shares a commitment to the organization and the collective well beings are more suitable to generate this social capital that facilitates organizational learning.
It is therefore important for companies to know the aspects that play important role or have big impact on boosting the commitment of their employees. Several factors had been identified in the literature as determinants of employee’s commitment. The finding of Ponnu and Chuah (2010) suggests that employee’s commitment with an organization could be significantly increased by enhancing organizational fairness, particularly procedural justice which would consequently reduce employee’s intention to leave. Ali et al (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 organization can improve their performance through employee’s commitment by engaging in social activities since such activities include the welfare of employees and their families.
It is against this background that this study examines the relationship between employees job commitment and organization performance, using Unilever Nigeria plc as a point of reference.
1.2 Statement of Problem
Employers are sometimes baffled when their highly rated employees put up poor performance and others resign and leave. 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 on their jobs, and if they lack the motivation to exercise their full potentials. The main focus of this study is to examine the relationship between employee’s commitment and organization performance.
1.3 Objectives of the Study
The broad objective of this study is to examine the relationship between employee’s commitment and organizational performance in Nestle Nigeria Plc.
The specific objectives of the study are as follows:
- To investigate the effects of employee’s commitment on organizational performance.
- To examine the relationship between employee’s commitment and labour turnover.
- To examine the impact of fair compensation management on employee’s commitment.
- To offer recommendation on how best employees commitment can be boosted to enhance organization performance.
1.4 Research Questions
This study shall attempt to answer the following research questions:
- Does employee’s commitment enhance organizational performance?
- What is the relationship between employee’s commitment and labour turnover?
- Does fair compensation management policy guarantee high performance or commitment from the employees?
1.5 Research Hypotheses
The research hypotheses to be tested during the course of study
- H0; Employee’s commitment does not enhance organizational performance.
- H0; Lack of fair compensation management policies cannot lead to low commitment.
- H0; There is no relationship between employee’s commitment and labour turnover of an organization.
1.6 Significance of the Study
This study has direct implication for today’s industrial world for the strategic role of the managers as agents to change the organizations with the increasing competitive nature of the business world, employers and managers are posed to strive to improve their performance. An important element in the organization that determines its performance is its labour force.
The extent to which committed employees affect organizational performance cannot be over emphasized. Labour turnover rate is skyrocketing and employees are moving from one organization to another in rapid succession taking with them the entire original learning. To curtail this huge loss of human capital, it is necessary for an organization to know which work increases employee’s attachment to the organization and the motivation to work for the organization. This study is of significance to management executives in their quest to enhance workers’ commitment in their organizations.
The study will also assist students and other researchers in the effort to investigate similar challenges in the future.
1.7 Scope of the Study
The scope of this study covers the relationship between employee’s job commitment and organization performance using NESTLE Nigeria Plc, Agbara as point of reference.
1.8 Definition of Terms
The following are the definitions of key terms used in the study;
Commitment:
It refers to the individual’s psychological attachment to the organization.
Employee’s Commitment:
The degree to which employees are bound emotionally or intellectually to the organization.
Employee’s turnover:
It is the rate at which an employer gains and loses employees.
Organizational Performance:
It comprises the actual output or results of an organization as measured against its intended outputs (or goals and objectives).
