EFFECTS OF EMPLOYEES COMMITMENT ON ORGANIZATIONAL PERFORMANCE

CHAPTER ONE


1.0    INTRODUCTION

1.1    Background of the Study

Most organization have realized that the performance of their workers plays a vital role in determining the success of the organization (Zheng et.aln2010 Ajila and Awonsi 2004) As such it is important for employers and manager alike to know how to get the best of the workers. One of the antecedent determinants of workers performance is believed to be employee commitment (Ali et.al 2010. Dex and smith) employee commitment as it .otherwise referred to in the literature has become one of the most popular work attitude studied by practitioners and researcher. Akintayo (2010) and Tumwesiye (2010). Noted that one of the reasons why commitment has attracted research attention is that organization depends on committed employees to create and maintain competitive advantage and achieve superior performance.
Committed 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 et al 2010). They provide the interectual capital that, for many organization, has become their most critical
assets (Hunjra et al 2011).furthermore employee who share a commitment to the
organization and their collective well being are more suitable to generate the social capita that facilitates organizational learning.
It is therefore important for companies to know the aspects that play important role or have big impact in boosting the commitment of their employees, several factor had been identified in the literature as determinant of employee commitment. The finding of Lo et al (2009) revealed that several dimension of transactional and transformational leadership have positive relationship with employee commitment. The finding of ponnu and chuah (2010) suggest 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, employee�s commitment as well as between employees commitment and organization performance. They therefore concluded that organizations can
improve their performance through employee�s commitment by engaging in social activities since activities also include the welfare of employees and their families.

However, most of the past studies on employee commitment were not related to the bakery industry in Nigeria the finding of these studies not be applicable to
bakery industry, as such ,it pertinent to examine the role of employee commitment

in achieving organizational performance in the context of Nigeria.
 
1.2    Statement of the Problem.

Employers are sometimes baffled when their highly rated employees underperform and other resign and leave management fail to understand why some employee 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 employee are not committed to their jobs and if they lack the motivation to exercise their full potentials.
The main focus of their study is on employee commitment as a multidimensional concept that represents the relationship between an employees and employer. Employee commitment has been found to be related to a Varity of attitudinal and behavioral consequences among employees, for example motivation level (Chipunza and berry)organization citizenship (Ozer and Gunluk 2010 Hunjra et al 2010) and turnover rate (Tumweslgye 2010 Ongori:2007. Ponnu and organizational performance as well as employee turnover.
1.3    Objective of the Study

The objective of this study is to examine employee commitment in Nigerian Bakery industry.
The specific in the study can be stated as follow
 
1.    To investigate the impact of employee commitment on performance in Bakery industry using Moonlight Bakery as a case study.
2.    To examine the relationship between employee commitment and employee turnover in Bakery industry.


1.4    Research Questions

This study shall attempt to answer the following research Question

1.    Does employee commitment enhance organization performance in Bakery industry in Nigeria using Moonlight as case study.
2.    What is the relationship between employee commitment and employee turnover in the Bakery industry in Nigeria using Moonlight as case study.
Research Hypothesis

Based on the research Question, the following hypothesis shall be tested during the course of the study.
Hypothesis

H0: That employee commitment does not enhance organizational performance.
H1: That employee commitment enhances organization performance. Hypothesis
 
H0: That employee commitment does not reduce employee turnover. H1: That employee commitment reduce employee turnover.
1.5    Significance of the Study

This study has direct implication for today industrial world for the strategic role of managers as agents of change in organization with the increasing competitive nature of the business world. Employers and managers are poised to strive to improve their performance .An important element in the organization that determines its performance is its labor force. The extent to which committed employee affect organizational performance is yet to be empirically proved in the Bakery industry in Nigeria.
Turnover rate are skyrocketing and employees are moving from one organization to another in rapid succession taking with them the entire organizational learning. To curtail this huge loss of human capital, it is necessary for an organization to know which work beliefs to tap to increase employee attachment to the organization. These shall be provided by the findings of this study.
 
1.6    Scope of the Study.

By referring to the research question, the scope of the study focuses on three main constraints; employee commitment, organizational performance and employee turnover in the Bakery industry in Nigeria. The study seeks to clarify the link between employee commitment and organizational performance as well as the link between employee commitment and employee turnover intention.
1.7    Limitation of the Study.

The researcher was faced with the following obstacles during the cause of the research.
? Insufficient fund: The researcher was faced with shortage of fund during the causes of collecting the necessary useful for the study.
? Lack of co-operation: This arise as a result of employees attitudes during the study. Some of the respondent displays negative attitudes during the research that made the data collection process difficult.
? Time Pressure: The time allowed for this work is not enough due to the fact that the researcher was still involved in other academic exercise apart from the research.