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CHAPTER ONE

INTRODUCTION

1.1 Background to the study

Human capital is indispensable in every business given that human controls even the machines that are purchased to help improve speed and efficiency. But human can only be beneficial to an organization if they are committed to the organization. Thus, Gul (2015) pointed out that employee commitment is a fundamental activity for the success of an organization. Every employee has a desire to reach his self-actualization motivational level; and thus should be given opportunities to improve his knowledge, skills and abilities.

Employee development programs provide chances for promotion and career growth.  Such like activities in an organization create commitment in employees, which is a basic requirement for effective functioning of organization.  Justifying this claim, Khan, Razi, Ali and Asghar (2013) and Udu and Ameh (2016) pointed out that every organization achieves its set goals through competent and committed employees. Getting committed employees who are competent and ready to give in their best in the pursuit of the objectives of the organization has been one of the problems facing most organizations.  

Udu and Ameh (2016) and Iqra and Yahya (2013) identified some of the indicators of a committed employee to include not being interested in any other jobs offers from other organizations than the one they are working; always ready and willing to take up any responsibility; total job satisfaction, innovative and always willing to make useful contributions that will promote growth, eagerness to work with less supervision and not given to unnecessary excuses, among others. Likewise, Sharma and Bajpai (2010) assert that employees are regarded as committed to an organization if they willingly continue their association with the organization and devote considerable effort to achieving organizational goals. The high levels of effort exerted by employees with high levels of organizational commitment would lead to higher levels of performance and effectiveness of both the individual and the organizational levels. Basically, three forms of organizational commitment have been explored (Klein, Molloy and Brinsfield, 2012). They are affective, continuance and normative commitments. Each of these forms has different implications for employees’ workplace behaviour (Udu &  Ameh, 2016).

Most managers consider each of these behaviours (affective, continuance and normative commitments) to have significant positive impact on organizational performance. Organizational performance technically is the aggregate net performance of the individual employees in the organization (Udu & Ameh, 2016). This is because; the organization is the composition of the employees under it. An organization does not achieve anything on its own except the cumulative achievements of the employees that make up the organization. Employee commitment as an individual attitude could be elicited through several factors but how it bears on organizational performance is the question this study seeks to answer.

1.2 Statement of Research Problem

Nestles Nigeria Plc, like every other businesses existing in Nigeria are facing serious overhead cost (Unaudited Financial Statement of Nestle Nigeria PLC, 2018), thus, the need to cut down cost even while enhancing productivity become imperative. One way to enhance productivity is getting the right employees for the job. Unfortunately, nowadays, most employees offer eye services to their respective organization. Some, in order to keep up with the cost of living runs their private business alongside working for an organization with more attention and commitment given to their private businesses. This situation affects the overall performance of an organization. The problem of this study therefore is to investigate whether or not there is a relationship between employees’ commitment and organizational performance. .

1.3 Research Objectives

The general objective of this study is to examine the impact of employee commitment on organizational performance. Specifically, the study seeks to:  

i.                     examine the impact of employees’ commitment on organizational performance

ii.                    determine the relationship between employee retention and organization performance

iii.                  examine the impact of employee’s innovation on organization performance

iv.                  determine the relationship between employee’s eagerness to work with less supervision and organizational performance

1.4 Research Questions

The following research questions are drawn out for this study. They are:

i.                     What is the impact of employee commitment on organizational performance?

ii.                    Is there any relationship between employee retention and organization performance?

iii.                  What is the impact of employee innovation on organization performance?

iv.                  Is there any relationship between employee’s eagerness to work with less supervision and organizational performance?

1.5 Research Hypotheses

Based on the research questions, the following hypotheses were formulated to guide the study:

H01: Employee’s commitments have no significant impact on organizational performance.                                                                       

H02: There is no significant relationship between employee retention and organization performance

H03: Employee innovation have no significant impact on organizational performance

H04: There is no significant relationship between employee’s eagerness to work with less supervision and organizational performance.

1.6 Significance of the Study

The study will help management of Nestle Nigeria Plc. to understand the need to enhance their employees’ commitment through ensuring their satisfaction. This is important because committed employees are key to good organizational performance. They are loyal, always ready and willing to take up any responsibility; are passionate with their jobs, very innovative and always willing to make useful contributions that will promote growth, eagerness to work with less supervision and not given to unnecessary excuses, among others.

The study will also provide a foundation for future study for academia, researcher or students who wants to take it a step further for knowledge enhancement. It will also contribute to existing literature on employee commitment and job performance

1.7 Scope of Study

The study examines the impact of employee’s commitment on organizational performance using Nestle Nigeria Plc. Its scope covers specifically the staff of Nestle Nigeria Plc, located in Lagos state Nigeria. It will examine the different indicators of employees’ commitment such as employee retention, employee innovation, and employee’s eagerness to work with less supervision and how these variables impact organizational performance.

1.8 Limitation of the Study

The descriptive survey design used for this study is one of the limitation in this study. This is because respondents may not always be truthful and instead will give answers that they feel that researcher wants to hear. In interviews, participants may also refuse to answer any questions that they feel are too personal or difficult. Also the descriptive survey design allows the researcher to present questions that are predetermined and prescriptive, while studies can contain errors. A researcher may choose what information to use and ignore data that does not conform to their hypothesis in this type of research design.

Another major limitation of this research is the quantitative data used. In the area of improper representation of the target population which might hinder the researcher for achieving its desired aims and objectives. Despite applying appropriate sampling plan representation of the subjects, it is dependent on the probability distribution of observed data. This may lead to miscalculation of probability distribution and lead to falsity in proposition.

1.9 Operational Definition of Terms

Employee Commitment: Employee commitment can be defined as the degree to which the employee feels devoted to their organization. Also, employee commitment is simply employees’ attitude to organization.

Organizational performance:  Organizational performance is the actual output or results of an organization as measured against its intended outputs or goals and objectives. It covers both financial and nonfinancial performance.


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