Effect of Employees Commitment On Organizational Performance

EFFECT OF EMPLOYEES COMMITMENT ON
ORGANIZATIONAL PERFORMANCE
A Study of Yammfy Farms Nigeria Limited, Ilemona Kwara State
BY
OLUMO GAFAR DAMILARE

BA/HND/F18/5071
BEING A PROJECT SUBMITTED TO

THE DEPARTMENT OF BUSINESS ADMINISTRATION
SCHOOL OF BUSINESS AND MANAGEMENT STUDIES
IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR

THE AWARD OF HIGHER NATIONAL DIPLOMA (HND) IN
BUSINESS ADMINISTRATION
FEDERAL POLYTECHNIC OFFA
DECEMBER, 2020
DECLARATION
I OLUMO GAFAR DAMILARE (BA/HND/F18/5071) from the department of
Business Administration, School of Business and Management Studies, Federal
Polytechnic Offa, Kwara State hereby declare that this research work is written and
produced by me and that to the best of my knowledge it contains no material previously
published by another person.
_______________________ _____________________
Olumo Gafar Damilare Date
BA/HND/F18/5071
ii
CERTIFICATION
The undersigned hereby certify that this project has satisfied one of the requirements of the
department of Business Administration, Federal Polytechnic Offa, for the award of Higher
National Diploma in Business Administration of Federal Polytechnic, Offa, Kwara State.
_____________________ ___________________
Dr. A.I Ebeloku Date
Project Supervisor
_____________________ ___________________
Mrs. B.A. Ajibade Date
Head of Department
_____________________ ___________________
External Examiner Date
iii
DEDICATION
This project is dedicated to Almighty God and to my parent.
iv
ACKNOWLEDGEMENTS
Glory be to God Almighty of the universe the owners of the Day of Judgment, the
creator of heaven and earth, I give you all the glory for being there for me through my
studies.
My special thanks goes to my supervisor Dr. A.I Ebeloku, words are not enough to
express his immeasurable contribution to the success of this work. I am grateful for your
fatherly concern and assistance given to me throughout the period of this work and
necessary advice given to me. I also thank my HOD, Mrs. B.A. Ajibade, and other lecturers
in my department for their support given to me throughout my studies.
My appreciation also goes to my parent Mr. and Mrs. Olumo for their support and
parental care, they stand by me and brought me up, He‟s my prayer that God‟s mercy ,
favour and blessing continually bestowed upon you. (Amen).
I also give thanks to my friends both in my department and school generally for
their support throughout my studies.
v
ABSTRACT
This study aimed to assess the contribution of employees’ commitment on
organization performance with reference to Yammfy Farms Nigeria Plc, Ilemona, Kwara
State. The study was guided by the following specific objectives (i) The effects of job
security on organization performance (ii) to determine the effect of employee’s motivation
on organization performance (iii) to examine the relationship between wage system and
organization performance and (iv) to investigate if conducive environment has effect on
organization performance in Yammfy Farms Nigeria Plc, Ilemona, Kwara State. The
population of this research work is 900 from which the total sample size of 100 was drown
to represent the total population. In order to achieve the purpose of this research work
questionnaires, were distributed to the staff of the sample selected personally and the
retrieved questionnaire where analyzed using simple percentage and chi-square (x2) were
use in testing the hypothesis of the study. The study revealed that there are influences of job
security on employees’ commitment. The most identified influences were career stability by
31%, this was due to the fact that when the employees are assured of their position they
will be able to work effectively and meet the organization requirements. Other influences
identified were improvement of performance, family commitment and financial security.
More so, about 96.5% of respondents declared that employee motivation is a critical factor
to the overall productivity of the organization. Respondents pointed out that there is a
positive relationship between wage system of an organization and overall productivity of
the organization. Therefore the study recommends that in order to attain efficiency and
effective organization performance employers should focus on reducing job dissatisfaction
(working conditions, salary, supervision, relationship with colleagues), while on the other
hand should use motivating factors such as achievement, recognition, responsibility and
the work itself.
vi
TABLE OF CONTENT
Title page - - - - - - - - - i
Declaration - - - - - - - - - ii
Certification - - - - - - - - - iii
Dedication - - - - - - - - - iv
Acknowledgement - - - - - - - - v
Abstract - - - - - - - - - vi
Table of contents - - - - - - - - vii
List of Tables - - - - - - - - ix
List of Figures
List of Appendices
CHAPTER ONE: INTRODUCTION

1.1 Background to the Study - - - - - - 1
1.2 Statement of the Problem - - - - - - 2
1.3 Research Questions - - - - - - - 4
1.4 Objectives of the Study - - - - - - 4
1.5 Statement of Hypotheses - - - - - - 4
1.6 Significance of the Study - - - - - - 5
1.7 Scope of the Study - - - - - - - 6
1.8 Definition of Terms - - - - - - - 6
1.9 Historical Background of Yammfy Farm Nigeria Limited Ilemona Kwara
State - - - - - - - - - 7
CHAPTER TWO: LITERATURE REVIEW
2.0 Introduction - - - - - - - - 8
2.1 Conceptual Review - - - - - - - 8
2.1.1 Employees commitment Concept - - - - - 8
2.1.2 Affective commitment dimension - - - - - 11
2.1.3 Continuance commitment dimension - - - - - 12
2.1.4 Normative commitment dimension - - - - - 13
2.1.5 Reasons for Employees commitment - - - - - 14
2.1.6 Concept of Employees Performance - - - - - 17
2.1.7 Criteria for Measuring Organizational Performance - - - 18
2.1.8 Factors that will Influence Organizational Performance - - 19
2.1.9 How to Improve Employee Organizational Performance - - 20
2.1.10 Relationship between Employee Commitment and Organizational
vii
Performance - - - - - - - - 22
2.2 Theoretical Review - - - - - - - 22
2.2.1 Expectancy Theory of motivation - - - - - 23
2.2.2 Labour Theory of Value - - - - - - 24
2.2.3 Adam‟s Equity Theory - - - - - - 24
2.2.4 Social Exchange Theory - - - - - - 25
2.3 Empirical Review - - - - - - - 26
CHAPTER THREE: METHODOLOGY
3.1 Introduction - - - - - - - - 29
3.2 Research Design - - - - - - - 29
3.3 Population of the study - - - - - - 29
3.4 Sampling Design - - - - - - - 30
3.5 Research Instrument - - - - - - - 30
3.6 Validity and Reliability of Research Instrument - - - 31
3.7 Data Collection Procedure - - - - - - 31
3.8 Methods of Data Analysis - - - - - - 32
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND
INTERPRETATION
4.1 Introduction - - - - - - - - 33
4.2 Participation/Response Rate - - - - - - 33
4.3 Demographic Characteristics of the respondents - - - 33
4.4 Data Presentation and Analysis of Research Questions - - 35
4.5 Test of Hypotheses - - - - - - - 44
4.6 Discussion of Findings - - - - - - 49
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary - - - - - - - - 50
5.2 Conclusion - - - - - - - - 51
5.3 Limitations of the Study - - - - - - 51
5.4 Recommendations - - - - - - - 52
5.5 Suggestion for further Studies - - - - - 53
References
Appendix
viii
LIST OF TABLES
Table 4.3.1: Background of Respondents

Table 4.4: Data Presentation and Analysis of Research Questions
Table 4.4.1: You are more committed to the organization when you feel there is not
opportunity for your personal advancement
Table 4.4.2: The degree to which you generally feel satisfied with your job has an impact
on your commitment level
Table 4.4.3: Your commitment level rises when you feel involved in decision making
Table 4.4.4: The level of stress generated from performing my job has an influence on
my commitment
Table 4.4.5: I am more committed to the organization when I feel my personal need are
aligned with the companies objectives
Table 4.4.6: The kind of relationship that I possess with my fellow employees greatly
impact on my commitment
Table 4.4.7: If my personal values are in line with those of other employees, my
commitment level rises
Table 4.4.8: The motivation package in your organization is equitable and fair reward for
your efforts
Table 4.4.9: Do you have motivating tools in your company?
Table 4.4.10: Motivation tools in an organization have impact on employee commitment
Table 4.4.11: The range of wages and salary provide by the company is satisfactory
Table 4.4.12: Does wages and salary increase the productivity of your company
Table 4.4.13: The workers should be paid direct proportion to the individual efforts rather
than group
Table 4.4.14: My workplace provides undisturbed environment without any noise that
gives alone time to perform my duties
Table 4.4.15: You think the environment of the work place affect employee‟s performance
Table 4.4.16: Attaining constant job feedback on my level of performance influences how
much I am committed to my job
Table 4.4.17: The quality and quantity of work produced to an extent depends on levels of
commitment
Table 4.4.18: Performance appraisal gives employees sense of commitment to an
organization
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Table 4.4.19: I have a good understanding of where the organization is going
Table 4.5.1: Calculation of chi-square for Hypothesis I
Table 4.5.2: Calculation of chi-square for Hypothesis II
Table 4.5.3: Calculation of chi-square for Hypothesis III
Table 4.5.4: Calculation of chi-square for Hypothesis IV
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CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Organizations get their work accomplished through employees who perform
different tasks. Therefore in order to improve the performance of organizations, employee
commitment is necessary as it promotes level of individual employee performance. An
employee who is committed in the work place is of great value to the organization as they
may need little or no supervision to accomplish the tasks assigned to them. There is no firm
that can achieve peak performance in the current competitive business environment unless
it makes optimal use of its employees. Every employee needs to be committed to the
company‟s goals and objectives, performs their duties as effectively as a member of the
team in order to realize organizational objectives. Employees need to partner with the
entrepreneurs as they rely on the efforts of the entrepreneur to deliver on the organizational
objectives. This is due to the fact employees want to be part of an organization that is
successful, which pays well and offers opportunities for development and security of
tenure. That committed employees remain within the organization therefore saving the
organization of the costs required to recruit, train and develop new staff. In addition, high
staff turnover increases customer satisfaction due to discontinued service delivery (Scott,
2009).
Every organization is facing new challenges regarding sustained productivity and
creating committed workforce. Nowadays no organization can perform at peak levels
unless each employee is committed to the organizations objectives. Hence, it is important
to understand the concept of commitment and its feasible outcome. Commitment according
to Human resource system can facilitate the development or organizational competencies
1
through eliciting employees‟ commitment to the firm. Hence organizations with a fit
business strategy, structure and practices and policy might perform better.
It is necessary for every organization to have full level of its employee commitment
in order to have outstanding performance on long term basis. In Africa employee
satisfaction and organizational commitment are the causing factors of the low productivity
of many companies. Also there was significant and positive relation between employee job
satisfactions to the employee performance. Job satisfaction influence positively to the
employee achievement. Where there is a high level of employee commitment, there will be
low turnover and that employee will perform better with less absenteeism. There are certain
things that really affect employee commitment like: work load, less acknowledgement and
less compensation.
Highly committed employee should have a weak intention to quit. Studies by
Zickar (2014) and Vandenberghe (2019), revealed a negative relationship between turnover
intentions and organizational commitment. Whitener, (2011) have uncovered a positive
relationship between commitment and job performance. Employees who are committed to
their respective organization are more likely not only to remain with the organization but
are also likely to exert more efforts on behalf of the organization and work towards its
success and therefore are also likely to exhibit better performance than the uncommitted
employees.
1.2 Statement of the Problem
In Africa, commitment affect the personal life of employees which results in low
performance of employees (Meyer and Parfyonova, 2010). Aminah (2009) said that work
and family conflict is inversely linked to employees‟ performance. It is examined that work
and family conflict decreases employee satisfaction, increases employees stress and
decreases performance. Moreover, recent studies have shown that high commitment
2
practices can work well synergistically and a reflective of a general commitment strategy
(Gagne, 2009).
The relationship between employees and their job performance is becoming ever
clearer and many organizations talk about the importance of employee commitment.
According to the Ashkanasy (2000), commitment is not a straightforward concept; it is the
end product of a complex set of psychological relationship between employer and
employee. The effectiveness of the organization depends on contribution of people who
work in them which is a key factor of the organizational performance. Employee
commitment is a positive psychological contract between employer and employees are
fundamental to improving performance (Patterson, 2013). But objections of this, “many
organizations still neglect to invest resources and creativity in the management of a
person's commitment within organizations.
Lack of employee commitment gave negative effect on the organizational
performance; hence it is forced to failure of an organization not achieving the
organizational goals & objectives. Highly employee commitment can be positively
influenced on job performance of the organization. However, it is not an easy task for the
company management due to some problems based on the fact.
Employers are sometimes baffled when their highly-rated employees under-perform
and others resign and leave the organization. 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 in their jobs, and if they
lack the motivation to exercise their full potentials.
Furthermore, high commitment work practices do improve performance, labour
productivity and the quality of service (Meyer, 2009). Despite a variety of studies into
3
employees' performance on organizational, the majority of previous studies have focused
on employee‟s satisfaction to organization performance, very little is known about the
contribution of employees‟ commitment for either individuals or organizations
performance, which is the focus of this study.
On this note the researcher deem it feet to research on the extent to which employee
commitment has effect on performance of Yammfy Farm Nigeria Limited, Ilemona Kwara
State.
1.3 Research Questions
i. What are the influences of job security on organizational performance?
ii. What are the effects of employees‟ motivation on organization performance?
iii. Does relationship exist between Wage system and organization
performance?
iv. Does Conducive environment have effect on organization performance?
1.4 Objectives of the Study
The general objective of this study is to assess on the contribution of employees'
commitment on organizational performance in Yammfy Farm Nigerian Limited, Ilemona
Kwara State. other objectives are:
i. To investigate the influence of job security on organizational performance?
ii. To determine the effects of employees‟ motivation on organization performance?
iii. To examine the relationship that exists between Wage system and organization
performance?
iv. To investigate if Conducive environment has effect on organization performance?
1.5 Statement of Hypothesis
Ho1 Job security has no influence on organizational performance
Ho2 Employees‟ motivation has no effect on organization performance
4
Ho3 Wage system of the organization has no relationship with organization
performance
Ho4 Conducive environment has no effect on organization performance
1.6 Significance of the Study
The study is significant to the employers and employees as it will reveal and create
awareness to the employees and employers on the importance of strengthening cooperation
among the two. Again the study will show the extent to which employees‟ commitment on
organization improves the performance of the organization hence sustained productivity.
Further, the study will also help to formulate the good guiding principles which could be
used by organizations to improve relationship between employer and employees.
It would also be useful to the organization and the economy of the nation as a whole
as also the study will contribute to the existing literature and knowledge on holistic
approach and conditions needed for employers to support their employees hence successful
of the organization which will have great impact on the economy of the nation.
The study will be useful to the Government as they would also benefit from the
findings. The Government can utilize this study to identify the status of state agencies and
implement policies towards creating an environment that will aid the agencies to be
successful.
This study will be of importance to the future researchers as it will give more
details on the problem in the research questions and it will be used as a forum for
discussing the employee commitment and its impacts on organizations and other related
studies. They would find it useful in carrying out further research.
5
1.7 Scope of the Study
This study will examine the effect of employees‟ commitment on organizational
performance with particular reference to Yammfy Farm Nigeria Limited, Ilemona, Kwara
State.
This research shall be limited to the employees of Yammfy Farm Nigeria Limited,
Ilemona, Kwara State from where sample will be selected using random sampling design in
order to give all the employees equal chance of being selected. The sample size of 55 will
be used to generalize findings on the total population, which range from the management
staff to the junior staffs.
1.8 Definitions of Terms
Employee Commitment: (Jaw & Liu., 2004) states that Employee Commitment is that
relationship employees have with their organizations.
Affective Commitment: (John & Elyse, 2010) defines Affective Commitment as the
employee‟s emotional identification with and attachment to and involvement in the
company.
Continuance Commitment: Continuance commitment comes up as a result of an
individuals need to continue working in the company after they become aware of their
costs (vesting of pensions, benefits, tenure, pay, family commitment among others) that are
associated with stopping to work in the company (Loi , 2006).
Normative Commitment: According to Coyle-Shapiro, 2006 normative commitment is
defined as an employee‟s obligation to being part of the organization and by being loyal to
their work.
Organizational Performance: This explains of an organization‟s performance vis-à-vis
set goals and objectives. Within companies, three fundamental outcomes are analyzed:
6
shareholder value performance, market performance, financial performance and in some
cases production capacity performance will be analyzed (Schmidt & Hayes, 2002).
Working Environment: Work environment, according to Opperman (2012), is a
composite of three major sub-environments which are the technical environment, the
human environment and the organizational environment.
1.9 Historical Background of Yamffy Farms Nigeria Limited
Yammfy Farms Nigeria Limited is a Limited Liability Company incorporated in the
year 2009, though the farm commenced operation in 2007 prior the official incorporation in
2009 with major focus on poultry production and management. The company‟s activities
are mainly production and sales of poultry products.
The company‟s office is located in Kilometer 8, along Erin-Ile Road, Ilemona in
Oyun Local Government Area of Kwara State of Nigeria. The farm is on 137 Hectares of
land comprising Five (5) Major Units of Operations which are Layer and Broiler Farms and
Raw Materials Storage Unit.
Since inception, the company has gained in the industry and intends to be one of the
big players in the poultry industry in Nigeria by taking advantage of the favourable Federal
Government Policy of encouraging investment in the sector.
The company currently has about 700 staff made up Expatriates, Professionals and
Junior Workers. The Company is 100% owned by Alhaji Mufutau Gbadamosi Esuwoye II
(Olofa of Offa Land), His Wife and Children.
7
CHAPTER TWO
LITERATURE REVIEW
2.0 Introduction
This chapter provides a critical look at existing research that is significant to this
study. The sub-section includes Conceptual review, Theoretical Review and Empirical
review of the literature. The chapter tries to explain the theories behind employee
commitment and the performance of the organization. In essence, it looks at past studies
carried out that try to find out what organizational and individual factors affect the
dedication of employees to their organizations.
2.1 Conceptual Review
Conceptual review discussed various concepts used in the research work. The
concept of dependent and independent variable of the research were reviewed. The
dependent variable Organizational performance will be firstly review which is followed by
the concept of employee commitment. At the end of this section it will be examined the
impact of employee commitment of organizational performance.
2.1.1 Employee Commitment Concept
According to Armstrong-Stassen, (2014), Employee commitment refers to the
degree or extent to which workers of a given organization are bound both intellectually and
emotionally to the organization. Employee commitment often stems from personal
satisfaction.
Dorgan (2014) defines commitment as the enhanced functional and operational
performance, including quality as the main principal. Low commitment has also been
associated with low levels of morale. Non-committed employees may depict the
organization in negative terms to outsiders thereby inhibiting the organization‟s ability to
recruit high-quality employees and decreased measures of altruism and compliance.
8
Moreover, low commitment leads to high turnover and higher commitment leads to
performance (Meyer, 2009; Meyer, and Parfyonova, 2010). In addition, job security
enhances the level of commitment.
Debi, (2014), stated that employee commitment refers to employee's satisfaction as
well as identification with the organization, employee engagement goes a step further, and
involves the employee making discretionary efforts towards attainment of organizational
goals.
Luis 2014, employee commitment may be the extent to which employees are bound
emotionally to their organization, while employee engagement would be the degree to
which employees are passionate about what they do, about their work, and committed to
their coworkers, and their organization. So I would say that probably, as used nowadays,
the concept of commitment would be a wider and better measure that gives the
organization a better barometer about the employee work environment.
In addition, Brian (2014). Employee commitment is complex and a multi-faceted
construct, and can take different forms. Work commitment has been defined as the relative
importance between work and one‟s self. Employee commitment is seen as a person's
adherence to work ethic, commitment to a career/profession, job involvement, and
organizational commitment (Morrow, 2010). Individuals can feel committed to an
organization, top management, supervisors, or a particular work group. Commitment has
been examined with regard to "career, union and profession" (Darolia, Darolia, & Kumari,
2010).
Employee commitment is a crucial „work attitude‟ (Morris 2013). It has been used
in several similar ways to emphasize its behavioural and psychological moorings. For
instance: “a stabilizing force that acts to maintain behavioural direction when
expectancy/equity conditions are not met and do not function” (Locke, 2006) and; “… a
9
psychological state that binds the individual to the organization” (Allen & Meyer, 2009).
The level of commitment relates to several aspects such as satisfaction, turnover, cognitive
resonance between different hierarchical levels, and performance on the job (Kreisman,
2012). The complexity in and importance of understanding employee commitment thus
makes it a key feature of managerial task. This essay examines the body of knowledge
from past research to reflect on such commitment and issues in harnessing it.
According to Ashon (2017), the measure of employee commitment is an important
metric for evaluating the health of the staff and the overall growth of the organization. One
employee commitment definition refers to it as the attachment that an employee has on
their organization due to their experiences. It can indicate the level of satisfaction, and
engagement among employees. It is crucial to assess employee commitment since it is a
key element in organizational success.
Dan-Marzulo, (2019), revealed, commitment is at the heart of a healthy partnership.
When employees are committed to their work and place of business, they are more likely to
be happy and productive. Committed employees take ownership of their work and are
ambassadors for their company, both inside and outside of office doors. They are less likely
to job hunt, be tempted by recruiters who seek out passive candidates and are most likely to
pursue advancements and promotions. The value of employee commitment is palpable in
more ways than one. Keep reading to discover what we mean. According to him, not all
employees are committed, and certainly aren‟t at the same level of commitment. Plus,
“commitment” can mean different things to different workers. Overall, it‟s the bond
employees have with their place of work. When they‟re committed, they feel like they fit in
and know (and align with) the values of the organization. Committed employees are an
asset to an organization and add value in more ways than one. They are supportive and
more productive than non-committed employees. These employees don‟t easily utilize their
10
sick days and are more prone to adopting the vision of the organization if it‟s not already
aligned with their own value system.
2.1.2 Affective Commitment Dimension
This represents the individual‟s emotional attachment to the organization.
According to Meyer and Allen (1997, p 11) affective commitment is “the employee‟s
emotional attachment to, identification with, and involvement in the organization”.
Organizational members, who are committed to an organization on an affective basis,
continue working for the organization because they want to (Meyer & Allen, 1991).
Members who are committed on an affective level stay with the organization because they
view their personal employment relationship as congruent to the goals and values of the
organization (Beck & Wilson, 2000).
Affective commitment is a work related attitude with positive feelings towards the
organization (Morrow, 1993). Sheldon (1971) also maintains that this type of attitude is “an
orientation towards the organization, which links or attaches the identity of the person to
the organization”. Affective commitment is the relative strength of an individual's
identification with and involvement in a particular organization (Mowday et al, 1982).
The strength of affective organizational commitment is influenced by the extent to
which the individual's needs and expectations about the organization are matched by their
actual experience (Storey, 1995). Tetrick (1995) also describes affective commitment as
“value rationality-based organizational commitment, which refers to the degree of value
congruence between an organizational member and an organization”.
The organizational commitment model of Meyer and Allen (1997) indicates that
affective commitment is influenced by factors such as job challenge, role clarity, goal
clarity, and goal difficulty, receptiveness by management, peer cohesion, equity, personal
importance, feedback, participation, and dependability. Affective commitment
11
development involves identification and internalization (Beck & Wilson, 2000).
Individuals‟ affective attachment to their organizations is firstly based on identification
with the desire to establish a rewarding relationship with an organization. Secondly,
through internalization, this refers to congruent goals and values held by individuals and
the organization. In general, affective organizational commitment is concerned with the
extent to which an individual identifies with the organization (Allen & Meyer, 1990).
2.1.3 Continuance Commitment Dimension
The second dimension of the tri-dimensional model of organizational commitment is
continuance commitment. Meyer and Allen (1997) define continuance commitment as
“awareness of the costs associated with leaving the organization”. It is calculative in nature
because of the individual‟s perception or weighing of costs and risks associated with
leaving the current organization (Meyer & Allen, 1997). Meyer and Allen (1991, p 67)
further state that “employees whose primary link to the organization is based on
continuance commitment remain because they need to do so”. This indicates the difference
between continuance and affective commitment. The latter entails that individual‟s stay in
the organization because they want to.
Continuance commitment can be regarded as an instrumental attachment to the
organization, where the individual's association with the organization is based on an
assessment of economic benefits gained (Beck & Wilson, 2000). Organizational members
develop commitment to an organization because of the positive extrinsic rewards obtained
through the effort-bargain without identifying with the organization‟s goals and values.
The strength of continuance commitment, which implies the need to stay, is
determined by the perceived costs of leaving the organization (Meyer & Allen, 1984). Best
(1994, p 71) indicates that “continuance organizational commitment will therefore be the
strongest when availability of alternatives are few and the number of investments are high”.
12
This argument supports the view that when given better alternatives, employees may leave
the organization.
Meyer et al (1990) also maintain that "accrued investments and poor employment
alternatives tend to force individuals to maintain their line of action and are responsible for
these individuals being committed because they need to". This implies that individuals stay
in the organization, because they are lured by other accumulated investments which they
could lose, such as pension plans, seniority or organization specific skills.
The need to stay is “profit” associated with continued participation and termination
of service is a “cost” associated with leaving. Tetrick (1995) support the profit notion by
describing the concept continuance organizational commitment as “an exchange
framework, whereby performance and loyalty are offered in return for material benefits and
rewards”. Therefore, in order to retain employees who are continuance committed, the
organization needs to give more attention and recognition to those elements that boost the
employee‟s morale to be affectively committed.
2.1.4 Normative Commitment Dimension
The last dimension of the organizational commitment model is normative
commitment. Meyer and Allen (1997) define normative commitment as “a feeling of
obligation to continue employment”. Internalized normative beliefs of duty and obligation
make individuals obliged to sustain membership in the organization (Allen & Meyer,
1990). According to Meyer and Allen (1991) “employees with normative commitment feel
that they ought to remain with the organization”. In terms of the normative dimension, the
employees stay because they should do so or it is the proper thing to do.
Wiener and Vardi (1980) describe normative commitment as “the work behavior of
individuals, guided by a sense of duty, obligation and loyalty towards the organization”.
Organizational members are committed to an organization based on moral reasons (Iverson
13
& Buttigieg, 1999). The normative committed employee considers it morally right to stay
in the organization, regardless of how much status enhancement or satisfaction the
organization gives him or her over the years.
The strength of normative organizational commitment is influenced by accepted
rules about reciprocal obligation between the organization and its members (Suliman &
Iles, 2000). The reciprocal obligation is based on the social exchange theory, which
suggests that a person receiving a benefit is under a strong normative obligation or rule to
repay the benefit in some way (McDonald & Makin, 2000). This implies that individuals
often feel an obligation to repay the organization for investing in them, for example
through training and development. Meyer and Allen (1991, p 88) argue that “this moral
obligation arises either through the process of socialization within the society or the
organization”. In either case it is based on a norm of reciprocity, in other words if the
employee receives a benefit, it places him or her, or the organization under the moral
obligation to respond in kindness.
2.1.5 Reasons for Employees Commitment
Job Security: According to Simon, (2011), Job security is the probability that an
individual will keep his/her job; a job with a high level of job security is such that a person
with the job would have a small chance of losing it. Basic economic theory holds that
during periods of economic expansion businesses experience increased demand, which in
turn necessitates investment in more capital or labour. When businesses are experiencing
growth, job confidence and security typically increase. The opposite often holds true during
a recession: businesses experience reduced demand and look to downsize their workforces
in the short term. Job security can be conceptualized at two levels: job security in terms of
keeping the job and safety in terms of employee well-being Stander and Rothmann (2010).
14
Armstrong (2010) indicates that safety deals with the prevention of accidents and
minimizing the resulting loss and damage to persons and property. Noble (2008) explains
that within the classic Maslow's hierarchy of needs, the notions of safety, security and
protection occupy the second tier of the model, suggesting that they are even more
sophisticated needs than the fundamental physiological concerns. He argues that job
security fears can lead to several negative consequences, including decreased satisfaction
and a greater propensity to leave one's job. By perceiving insecurity about the job on the
part of the employee, the psychological contract, that is, the agreement between the
organization and an employee about their beliefs regarding the terms of employment
(Peene, 2009).
Employee Motivation: Dessler (2011), defines motivation as the intensity of a person‟s
desire to engage in some activity. Motivation can be intrinsic or extrinsic. Extrinsic
motivation refers to the external factors which can be measured in monetary terms e.g.
salary and benefits, promotion and disciplinary. Extrinsic motivation has immediate and
powerful effect but does not last long. Intrinsic motivation refers to external factors e.g.
responsibility, freedom to act, scope to use and develop skills and abilities and challenging
work and opportunities for development. Intrinsic motivation lasts longer since they are
concerned with quality of working life. Nel (2011) assert that a motivated person has the
awareness of specific goals that must be achieved in specific ways; therefore his efforts are
directed at achieving such goals.
Mullins, (2016), posits that employee motivation is a key ingredient in employee
performance and productivity. Though people might have clear work objectives, the right
skills and supportive work environment, they will not get the work done without sufficient
motivation to achieve those work objectives. He added that motivated employees are
willing to exert a particular level of effort, for a certain amount of time, toward a particular
15
goal. Motivation represents the complex forces and needs which provide the energy for an
individual to perform a particular task. A motivated employee is always conscious of the
goal to be achieved and directs his efforts towards attaining it
Wage System: A wage is monetary compensation (or remuneration, personnel expenses,
labor) paid by an employer to an employee in exchange for work done. Payment may be
calculated as a fixed amount for each task completed (a task wage or piece rate), or at an
hourly or daily rate (wage labour), or based on an easily measured quantity of work done.
Wages are part of the expenses that are involved in running a business.
Umar, (2012), Wages become an important aspect of being effective if linked to the
performance significantly. Granting wages remuneration is the most complex task for the
industry, is also the most significant aspects for workers, because of the amount of wages
reflects the size of the value of their work among the workers themselves, their families
and communities. Wages are very important for the industry because it reflects the
industry‟s efforts to defend human resources in order to have a high loyalty and
commitment to the industry. Effective wages strategy is expected to contribute to
maintaining the viability of the work force, the realization of the vision and mission, as
well as for the achievement of work objectives (Umar, 2012).
Conducive Environment: Brenner (2014) Conducive work environment will enhance
organization performance. For example, standard health facilities will protect the life of the
workers. In case of any hazard on the job, they have some assurance of income. This
assured income tends to minimize any inhibiting fears of the workers devoting themselves
fully to their work. The theme of this presentation lies on the fact that both management
and workers of organizations are less considerate of work environment as having a great
influence on productivity of workers as resulting from worker‟s negative attitude to work
while the worker‟s view of low productivity may stem from poor pay system, absence of
16
fringe benefits inappropriate leadership style, wrong job location, unfavourable
organizational change, etc. the environment is man‟s immediate surroundings which he
manipulate for his existence, wrongful manipulation can impede the productivity rate of
workers. Therefore, the workplace entails an environment in which workers perform his
work.
2.1.6 Organizational Performance Concept
According to Lucky, (2011), organizational performance is defined as the
organizational achievement with regards to some criteria. It is a measurement or indicator
for evaluation and assessment of organizations. It reveals the strengths and weaknesses of
the organization and what we want to measure. In an organization for example, it helps to
ascertain the current situation of an organization, whether the organization is doing well or
not. At a point, it reveals the efficiency and effectiveness of an organization and therefore
supplies information whether an organization is successful or will fail at a particular point
in time (Lucky, 2011).
Okoro and Washington (2012), Organizational performance include three specific
areas of firm outcomes; financial performance (profits, return on assets, return on
investment, etc.) market performance (sales, market share, etc), and shareholder return
(total shareholder return value added, etc).
Teng, (2013) identified three schools of thought that defined organization
performance the results (output) school argues that organizational performance is the
outcome of work accomplished of left behind” and is been connected to strategic
objectives. In contrast, behavior (input) school barguests that organizational performance
should be separated from output to avoid being contaminated by system factors.
Also Prasetya and Kato, (2011) asserts that organizational Performance is defined
as the attained outcome of an organization in effective and efficient manner with the skills
17
of employees who perform in some situation. According to (Suhartini, 1995), employee
performance is a mutual result of effort, ability, and perception of tasks in achieving the
organizational desire.
Oswald (2012) said that organizational performance is the combination of employee
and other supporting equipment being available, competent, productive, response and
effective. Performance is not judge by the action alone but it includes evaluation of actions
with a measurable scale (Sonnentag & Frese, 2012), they also claim that the concept of
performance is multi-dimensional and involves many subjective criteria and judgment.
Evaluation can be done by implementing performance rating which is filled by colleagues
or supervisors and it is said to be the most utilized techniques to measure employee
performance.
Richard et al. (2009) also posit that organizational performance can be measured
through three basic outcomes which are financial performance, product market
performance and return to the shareholders. As Schneider, Hanges, Smith, and Salvaggio
(2003) had found that micro-orientation on way to job attitude and performance
relationship is somewhat puzzling, the interest of the employee attitudes had much of its
motivation in the 1960s when organizational scientists such as Argyris (1964), Likert
(1961), and McGregor (1960) purposed that the organizational performance is a result of
the employee experience and commitment. Integrity has been explained as the best of the
human state, the better the humans are committed to their tasks will lead to their better
performance that results in batter results.
2.1.7 Criteria for Measuring Organization Performance
Effectiveness: It is considered the bottom line of organizational performance, achieving
the outcome that represent the organization mission performance and for which managers
are accountable; it has to do with getting result you want at any point in your operation.
18
Efficiency: Organization efficiency is concerned with the resources consumed to
accomplish a task or produce an output outcome; resources can include personnel,
materials facilities energy, time and money. It is d vided into internal and external quality.
Finance: it focuses on measures related to profitability because it is essential to survived
and growth.
Timeliness: It involves 3 measures Oyele time, work time and product time; it involves the
performance of activities in batches so as to meet up with the aims and objectives.
Workplace Environment: Sometimes referred to as “Organization Climate” the
workplace environment includes the physical amenities in the workplace and culture
tradition of the company.
Physical amentias are aesthesis, employee conveniences and safety and health
conditions.
2.1.8 Factors that will Influence Organization Performance
Financial Performance: it refers to the measure on how companies carry out their
activities to activities to achieve certain financial goals. It is done by using various
evaluation methods and financial indicators (Welson 2001).
Returns on Equality: Returns on equality shows on how the bank management effectively
handles the shareholders‟ funds to generate profits. There is a preference managing
shareholders‟ funds to generate revenue Al-Khalayeh (2017).
Return on Investment: These ratio is calculated as net profit after tax divided by total
paid capital (Maged and Said 2012) the ratio measures the firms efficiency in utility the
investor capital. It express company‟s ability to generate the required return (expected
returns) based on using and managing the invested resources by the shareholders (Matarnah
2009).
19
2.1.9 How to Improve Employee Organizational Performance
According to Christina Hamlett, (2018) there is always room for improvement,
especially in a company that wants to stay visible, viable and maintain its competitive edge.
Recognizing the current strengths and abilities of your workforce is as critical as
identifying their untapped potential to assume leadership positions, participate in team-
building activities, exercise initiative and develop better communication skills. In concert,
these elements not only contribute to a more effective and cohesive organization but may
also improve employees' individual performance levels.
1. Communicate your expectations and emphasize personal accountability. No matter
what type of business you run or how many employees you have, it is essential that
every employee understands how her respective contributions toward a common
goal define the company's value, success and longevity. Hold regular staff meetings
to track the status of pending projects make new assignments and encourage
brainstorming on existing or potential problems. Hold your workers accountable for
the responsibilities they assume, the choices they make and the deadlines they have
agreed to meet. Anne Bruce, author of "How to Motivate Every Employee: 24
Proven Tactics to Spark Productivity in the Workplace," suggests that the more
ownership and engagement employees feel in the decision-making process, the
more empowered they will likely feel to put forth their best ideas and best work
product.
2. Monitor and evaluate job performance through annual or twice-yearly written
appraisals. These provide workers with the functional equivalent of a report card to
identify what they are doing well, what areas need improvement and whether
training classes would benefit an existing job or assist in the transition to a new one.
Invite employees to prepare self-evaluations which allow them to highlight recent
20
achievements, discuss issues that they believe are inhibiting them from doing their
best work and request future training and development assignments. Encourage
feedback throughout the year, not just during the review periods. According to
Brian Tracy, author of "Full Engagement!: Inspire, Motivate, and Bring Out the
Best in Your People," emphasizing positive traits and actions in the workplace does
more to improve employee performance and morale within an organization than
constantly looking for faults and making workers feel as if their every move is
being watched with suspicion.
3. Create and administer a fair and consistent system of acknowledging merit. No
matter what position a person holds in your company, he wants to know that his
work is being noticed and appreciated. A successful company culture is one that
rewards initiative, performance and dedication through bonuses, promotions, merit
certificates and perks as well as compliments and good old-fashioned thank-you's.
Donald Kirkpatrick, author of "Improving Employee Performance Through
Appraisal and Coaching," also emphasizes the importance of mentoring and
coaching as a way to demonstrate that management is committed to helping
workers achieve their highest potential by providing them access to the best advice
on how to advance their careers.
4. Lead by setting a positive example. John Baldoni, author of "Lead by Example: 50
Ways Great Leaders Inspire Results," emphasizes that managers who engage in
active listening, respect the unique talents of their staff, instill confidence in others
and know both when and how to delegate responsibilities achieve better results than
egotistical leaders who believe that theirs is the only "right" way to get anything
done. The first step in improving any organization is establishing and enforcing the
concept that there aren't different sets of rules that govern the activities of
21
supervisors and subordinates. Managers must be held just as accountable for their
own mistakes and shortcomings as anyone who works for them in order to foster a
healthy and truthful workplace. It's also critical to discourage gossip, address
rumors before they escalate to paranoia and stay sensitive to feedback on what the
company could be doing better.
2.1.10 Relationship between Employee Commitment and Organizational
Performance
Performance is attained outcome of actions with the skills of employees who
perform in some situation. According to (Suhati, 20155), employee performance is a
mutual result of effort, ability, and perception of tasks. Good performance is step towards
the achievement of organizational aims. Hence more struggles are required to improve the
organizational performance. Dharma (2011) said that performance is something that is
done, or products formed and offered by a group of people, hence there is need for then
personnel in an organization to be committed to the task or organization in order to
effective and efficient in achieving the set goal and objectives of the organization.
Employee proficiency is usually supervised by using formal procedures such as:
manager rating, evaluation with organizational objectives and peers assessment to make
sure that employees are working for the development of the company. Compensation is the
major element that affects the employee performance. If employees are satisfied that
organization is offering a good compensation then their motivation level is enhanced and as
a result their performance to work also increases.
2.2 Theoretical Review
This section presents theories that are relevant to this study. This sub-section is
divided into four theories. The first theory is the Expectancy Theory of Motivation which
provides an explanation of why individuals choose one behavioral option over others. The
22
second theory is about Labor Theory of Value, the third theory is Adams‟ Equity Theory
which attempt to explain the satisfaction that derives from the fairness and equality that a
manager brings to his/her employees and the last one is Social exchange theory.
2.2.1 Expectancy Theory of Motivation
The Expectancy Theory of Motivation is best described as a process theory. It
provides an explanation of why individuals choose one behavioral option over others. "The
basic idea behind the theory is that people will be motivated because they believe that their
decision will lead to their desired outcome" (Redmond, 2009). "Expectancy theory
proposes that work motivation is dependent upon the perceived association between
performance and outcomes and individuals modify their behavior based on their calculation
of anticipated outcomes" (Chen & Fang, 2008). This has a practical and positive benefit of
improving motivation because it can, and has, helped leaders create motivational programs
in the workplace.
"This theory is built upon the idea that motivation comes from a person believing
they will get what they want in the form of performance or rewards. Although the theory is
not "all inclusive" of individual motivation factors, it provides leaders with a foundation on
which to build a better understanding of ways to motivate subordinates" (AETC, 2008).
Expectancy theory is classified as a process theory of motivation because it emphasizes
individual perceptions of the environment and subsequent interactions arising as a
consequence of personal expectations.
The theory states that individuals have different sets of goals and can be motivated
if they believe that: There is a positive correlation between efforts and performance,
Favorable performance will result in a desirable reward, and the reward will satisfy an
important need.
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2.2.2 Labour Theory of Value
The labor theories of value (LTV) are heterodox economic theory of value that
argue the value of commodity is only related to the labor needed to produce or obtain that
commodity and not to other factors of production (except as those elements can be
regarded as embodied labor.) Presently the concept is most often associated with Marxian
economics, although it appears as a foundation to earlier classical economic theorists.
When speaking in terms of a labor theory of value, without any qualifying adjective
should theoretically refer to the amount of labor necessary to the production of a
marketable commodity, including the labor necessary to the development of any real
capital employed in the production. Both David Ricardo and Karl Marx attempted to
quantify and embody all labor components in order to set the real price, or natural price of
a commodity. The labor theory of value, as presented by Adam Smith, however, did not
require the quantification of all past labor, nor did it deal with the labor needed to create the
tools (capital) that might be employed in the production of a commodity. The Smith theory
of value was very similar to the later utility theories in that Smith proclaimed that a
commodity was worth whatever labor it would command in others (value in trade) or
whatever labor it would "save" the self (value in use), or both. But this "value" is subject to
supply and demand at a particular time.
2.2.3 Adams’ Equity Theory
Equity theory was first developed in 1962 by John Stacey Adams. It attempts to
explain the satisfaction that derives from the fairness and equality that a manager brings to
his/her employees. Equity theory places value on fair treatment, which is believed to be the
major motivational factor among employees.
An individual will consider that he is treated fairly when he feels that the „ratio of
his inputs to his outcomes‟ is the same to other people around him. In this case, it would be
24
acceptable for an employee who has much more work experience and who is a more senior
colleague to receive higher compensation/salary for his/her job. On the other hand, if an
employee feels that another individual who has the same qualifications and provides the
same amount of efforts is earning more recognition or compensation, he will feel he‟s
treated unfairly and thus perform at a lower level on his tasks.
An employee who feels he is over-compensated may increase his effort. However,
he may also change the perceptions of his inputs and feel a sense of superiority, which may
lead to him decreasing his efforts instead.
Adam‟s Equity theory reminds us that people are hugely concerned of the way they
are treated in their surrounding environment, team and system. For this reason, they must
be managed, controlled and treated fairly.
2.2.4 Social Exchange Theory
The Social Exchange Theory (SET) was developed by scholars such as Homans
(1958) and Blau (1964) to explain what influenced social behaviour. Homans in an essay
entitled “social behaviour” was interested in the psychological conditions that induce
individuals to engage in exchange. Homans stated that social behaviour is an exchange of
both material goods and non-material ones. Homans explained that persons that give much
to others try to get much from them, and persons that get much from others are under
pressure to give much to them. This process of influence tends to work out at equilibrium
to balance the exchanges. In an exchange, what one gives may be a cost, just as what one
gets may be a reward. Blau was interested in exchange as the elementary particle of social
life, in which social structures are rooted. Blau analysed exchange processes as the micro-
foundation of macro-sociological phenomena. Blau stated that mutual bonds emerge in
social interaction as persons who incur obligations reciprocate. Marescaux, Winne and Sels
(2013) explains that SET proposes that HRM practices initiate a positive exchange
25
relationship to which employees reciprocate with positive attitudes and behaviour towards
the organization and/ or job.
Geetha and Mampilly (2012) argue that the basic principle with SET is that
employees view satisfying HRM practices as an organization‟s commitment towards them.
Employees thus reciprocate this through positive behaviours like employee commitment.
They are thus more likely to exchange their commitment for resources and benefits
provided by their organization. For example, when individuals receive economic and socio-
emotional resources from their organization they feel obliged to respond in kind and repay
the organization. SET argues that obligations generate through a series of interactions
between parties who are in a state of reciprocal interdependence. The core belief in SET is
that relationships evolve over time into trusting, loyal, and mutual commitments as long as
the parties abide by certain “rules” of exchange. The rules of exchange usually involve
reciprocity or repayment rules such that the actions of one party lead to a response or
actions by the other party. Studies such as the study by Chew and Chan (2008) have SET as
their theoretical basis. In summary, the propositions of SET indicate that social exchanges
employees obtain from organizations such as HRM practices may lead to employee
commitment.
2.3 Empirical Review
According to Cummings and Schwab (2013), employer must prioritize the
organizational objectives over his personal objectives. Bass & Avolio (2007) said that the
individual and organizational performance is greatly affected by the efficient participation
of leadership. Organizational success depends on active utilization of human resources.
Employees are the assets of an organization. At another place Wall, Solam and Sobal; and
Maritz (2005) remarks that valued organizations need efficient leaders.
26
Cameron and Pierce (2016) said that all organizations use pay, promotion and
benefits to give confidence to better performing employees. Management of the
organization often anticipates depending on the power and responsibility of such
employees and these expectations are different from organization to organization.
According to Shahzad, Bashir and Ramay, (2008) there is a direct link between employee
performance and compensation practices.
Human resource management is considered the backbone of all businesses. To
improve the performance, organizations are trying to improve the performance of human
capital. Many researchers are trying to describe the relationship between organizational
performance and the performance of employees. According to Cohen & Single (2011)
there is lot of pressure on the management of the organization to turn into a friendlier one.
Grover and Crooker (2015); and Scandura and Lankau (2007) have found that the sense of
employees‟ obligation to organization become more positive when flexible time scheduling
is being adopted by the organization.
Brandt, Krawczyk & Kalinowski (2008) examined that there exist a disagreement
among personal life and employees‟ performance. According to Ali and Baloch (2009)
commitment affect the personal life of employees which results in low performance of
employees. Aminah (2008) said that work and family conflict is inversely linked to
employees‟ performance. It is examined that work and family conflict decreases employee
satisfaction, increases employees stress and decreases performance. A lot of research has
taken place which holds that inverse relation exists between conflict and performance level
of employees.
Employee commitment can benefit organization in a number of ways such as it can
improve performance; reduced absenteeism, and turnover thereby resulting in sustained
27
productivity. Commitment to organization is positively related to such desirable outcomes
as motivation
The committed employee has been found to be more creative; they are less likely to
leave an organization than those who are uncommitted (Porter et.al. 2014). According to
Arturo (2014) Sustained productivity improvement depends on the enterprise‟s human
capital (the skills, knowledge, competencies and attitudes that reside in the individual
employee of the enterprise) and its social capital (trust and confidence, communication,
cooperative working dynamics and interaction, partnership, shared values, teamwork, etc.
among these individuals.
A committed employee is perceived to be one who stays with the organization even
in turbulent times, attends work regularly, protects company‟s assets and shares company‟s
goal (Meyer and Allen, 2007).Therefore it is evident that for sustained productivity,
employee commitment is an important factor. Auto-component industry is a booming
industry in which not many commitment based studies have been conducted so we have
taken it for our research. This industry has also faced lot of workforce challenges in the
form of strikes. So, our study becomes much more important.
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CHAPTER THREE
METHODOLOGY
3.1 Introduction
This Chapter deals with the description of the methods applied in carrying out the
study. It is also organized under the following sub-topics: research design, population of
the study, sample design, research instruments, validity and reliability of research
instruments, data collection procedure and method of data analysis.
3.2 Research Design
(Kothari, 2004), defines Research design is the arrangement of conditions for
collection and analysis of data in a manner that aims to combine relevance to the research
purpose with economy in procedure. Research design provides the guideline for data
collection and analysis. It is a plan for a research which aims at providing guideline and
where the research is being conducted.
Descriptive research design was adopted for the study. Descriptive research design
is used to describe what exists and will help to uncover new facts and meaning. This
involve the collection of data that will provide an account or description of individuals,
groups or situations since the objective of this research is impact of employee commitment
on organizational performance then the choice of descriptive research design is suitable.
In the course of the research, questionnaire, personal interview and observation will
be used to gather information required for the research work.
3.3 Population of the Study
Population can be defined as the group of subject or unit about which the
study makes some conclusion in most cases, it may be practically impossible to cover the
whole population that is used.
29
According to Bablle (2015) survey population is an aggregate of element from
which the sample is actually selected. The survey population used in the project is made of
the number of staff in Yammfy Farm Nigeria Limited, Ilemona, Kwara State. The
population of the study is 900 from the management staff to the junior staff in the
organization.
3.4 Sampling Design
Sample is a sub-set or sub-group of the population; it comprises some member
selected from the total population. In other word, some, but not all members of the
population would form the sample.
Sampling method refers to the rules and procedures by which some elements of the
population are includes in the sample.
The total population of this case study is nine hundred (900) and a sample size of
(100) was drawn adopting random selection in order to give all the population an equal
chance of being selected.
The purpose of choosing a sample size is because it will not be possible to test all
the members of the population. Even if were possible, it will be prohibitive in-terms of
costs, time hazard and other factors.
3.5 Research Instrument
In this study both primary and secondary source of data were used to carry out the
project work.
Primary Data
This refers to data, which are collected by the researcher himself for specific
purpose. It is data that are usually original to the researcher and to which he/she can claim
copyright. This data can be done through personal interview, telephone etc. therefore for
the purpose of this research work, researcher intends to use the distribution of questionnaire
30
to the staff of the organization. Most of the matters were given keen classification through
the researcher general observation and involvement.
Secondary Data
This refers to data that are more readily accessible the researcher than of primary
data. It is a data that is collected seldom for this research work both primary and secondary
data will be used. The consultation of textbooks, journal, magazines, newspaper, published
and unpublished materials etc. on the subject will be contracted for correct information.
3.6 Validity and Reliability of Research
3.6.1 Validity of Research
Best and Kahn, (2009) defines validity as the quality of data gathering instrument or
procedure that enables it to measure what it supposed to measure. In justifying the validity
of this study, random sample and convenience sample provide for rich information that
enables the generalization of findings on the total population. And also the use of
questionnaire and interview ensured excellent result.
3.6.2 Reliability of Research
Reliability on the other hand according to Odetunde (2011) opined that this is the
consistence between independent measurements of the same phenomenon. In this research,
reliability depends on measuring consistent in result from respondents. A test and retest
methods will be applied in testing the reliability of the information to be gathered.
3.7 Data Collection Procedure
Kombo and Trump (2010) defined data collection procedure as the collection of
gathering of information or process some facts. It involves the real process of going to the
field to get the required information from selected population.
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In order to obtain required and reliable information a close-ended questionnaire
were administered to the staff of Yammfy Farm Nigeria Limited, Ilemona Kwara State,
ranging from the managers to the subordinates.
3.8 Methods of Data Analysis
Data analysis is the organization and clarification of processed data into a more
comprehensive form of easy extraction of relevant information for the purpose of this
study, the researcher draw references from the sample so as to arrive at reasonable
conclusion about the population use.
This discloses how the unprocessed data collected will be processed and arranged to
become meaningful and easily understand. In view of this, data will be analyzed through
the use of Simple percentage and frequency distribution table in order to analyze the
response from the research questionnaire while hypothesis will be tested using chi-square.
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CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION.
4.1 Introduction
This chapter is where the result of investigation are presented, analyzed and
interpreted. The purpose of this chapter is to arrive at decision based on the outcome of the
analysis.
4.2 Participation/ Response Rate
Total numbers of 100 questionnaires were administered to the respondents which
were successfully retrieved and used. Therefore, 100 questionnaires were used to analyze
and interpret the data which amount to 100% of the sample size of the research population.
4.3 Demographic Characteristics of Respondents
The demographic profile or characteristics of respondents‟ was presented in this
chapter. The personal profile of the respondents is analyzed as per their gender, age,
marital status, work experience, educational qualification and occupational status in the
bank.
Table 4.3.1: Background of respondents

Background Response Frequency Percentage (%)
Gender Male 70 70
Female 30 30
Marital status Single 24 24
Married 76 76
Widow - -
Age 18 – 25 years 12 12
26 – 35 years 64 64
36 – 45 years 18 18
46 years above 6 6
Qualification WAEC/GCE 16 16
33
ND/NCE 54 54
HND/BS.C 22 22
MSC/ MBA 6 6
Others - -
Department Personnel 10 10
Sales unit 20 20
Accounting 10 10
Financial 10 10
Others 50 50
Length of 0 – 5 years 52 52
service
6 – 10 years 40 40
11 – 15 years - -
16 - 19 year 8 8
20 years above - -
Source: Field Survey, 2020
The above table 4.3.1 shows that 70 respondents representing 70% are male while
30 respondents representing 30% were female. This shows that majority of the respondents
are male.
It also indicates that 24 respondents representing 24% were single, while 76
respondents representing 76% were married. This indicates that there are more married
respondents in the research.
The table also shows that 12 respondents representing 12% were at the age of 18 –
25, 64 respondents representing 64% were at the age of 26 – 35, 18 respondents
representing 18% were at the age of 46 years above.
It also shows that 16 respondents representing 16% were WAEC/GCE certificate
holder, 54 respondents representing 54% have ND/NCE, 22 respondents representing 22%
were HND/BSC holder, 6 respondents representing 6% were MSC/MBA holder.
34
The table also shows that 10 respondents representing 10% were in the personnel
department, 20 respondents representing 20% were at the sales department, 10 respondents
representing 10% were at the accounting department, 10 respondents representing 10%
were in the finance department while 50 respondents representing 50% were in the other
department not mentioned.
Also, 52 respondents representing 52% have spent 0 - 5 years in the organization,
40 respondents representing 40% have spent 6 – 10 years while 8 respondents representing
8% have spent 16 – 19 years above.
4.4 Data Presentation and Analysis of Research Questions

Table 4.4.1: You are more committed to the organization when you feel there is not
opportunity for your personal advancement
Alternative Frequency Percentage (%)
Strongly agreed - -
Agreed 8 8
Neutral 6 6
Disagreed 74 74
Strongly disagreed 12 12
Total 100 100
The above table shows that 8 respondents representing 8% agreed that they are
committed to the organization when they feel there is no opportunity for their personal
advancement, 6 respondents representing 6% were neutral, 74 respondents representing
74% disagreed while 12 respondents representing 12% strongly disagreed.
35
Table 4.4.2: The degree to which you generally feel satisfied with your job has an impact
on your commitment level
Strongly agreed 24 24
Agreed 64 64
Neutral 2 2
Disagreed 10 10
Strongly disagreed - -
Total 100 100
The above table shows that 24 respondents representing 24% strongly agreed that
the degree to which they generally feel satisfied has impact on their commitment level, 64
respondents representing 64% agreed, 2 respondent representing 2 was undecided, while 10
respondents representing 10% disagreed.
Table 4.4.3: Your commitment level rises when you feel involved in decision making
Agreed 30 30
Neutral - -
Disagreed - -
Total 100 100
The above table shows that 70 respondents representing 70% strongly agreed, that
there commitment level raises when they feel involved in decision making, while 30
respondents representing 30% agreed. None of the respondents disagreed.
36
Table 4.4.4: The level of stress generated from performing my job has an influence on my
commitment
Agreed 48 48
Neutral - -
Disagreed 2 2
Total 100 100
the level of stress generated in performing their jobs have influence on their commitment,
48 respondents representing 48% agreed, while 2 respondent representing 2% disagreed.
Table 4.4.5: I am more committed to the organization when I feel my personal need are
aligned with the companies objectives
Agreed 58 58
Neutral - -
Disagreed - -
Total 100 100
they are more committed to the organization when they feels their personal need are
aligned with the companies objectives, 58 respondents representing 58% agreed, none of
the respondents disagreed.
37
Table 4.4.6: The kind of relationship that I possess with my fellow employees greatly
impact on my commitment
Agreed 30 30
Neutral 2 2
Disagreed 12 12
Total 100 100
the kind of relationship that they possesses with their fellow employees greatly affect their
commitment, 30 respondents representing 30 greed, 2 respondent representing 2% is
undecided, while 12 respondents representing 12% disagreed
Table 4.4.7: If my personal values are in line with those of other employees, my
commitment level rises
Agreed 60 60
Neutral - -
Disagreed 16 16
Total 100 100
when their personal value are in line with those of other employees, their commitment
rises, 60 respondents representing 60% agreed, while 16 respondents representing 16%
disagreed.
38
Table 4.4.8: The motivation package in your organization is equitable and fair reward for
your efforts
Agreed 40 40
Neutral - -
Disagreed 24 24
Total 100 100
motivation package in the organization is equitable and fair reward for their effort, 40
respondents representing 40% agreed, 24 respondents representing 24% disagreed while 16
respondents representing 16% strongly disagreed.
Table 4.4.9: Do you have motivating tools in your company?

Agreed 40 40
Neutral - -
Disagreed 20 20
Total 100 100
there is motivation tools in the organization, 40 respondents representing 40% agreed, 20
respondents representing 20% disagreed while 16 respondents representing 16% strongly
disagreed.
39
Table 4.4.10: Motivation tools in an organization have impact on employee commitment
Agreed 70 70
Neutral - -
Disagreed - -
Total 100 100
motivation tools in an organization have impact on employee commitment, 70 respondents
representing 70% agreed, none of the respondents disagreed.
Table 4.4.11: The range of wages and salary provide by the company is satisfactory
Agreed 50 50
Neutral - -
Disagreed 20 20
Total 100 100
the range of wages and salary provided by the company is satisfactory, 50 respondents
representing 50% agreed, 20 respondents representing 20% disagreed while 10 respondents
representing 10% strongly disagreed.
40
Table 4.4.12: Does wages and salary increase the productivity of your company
Agreed 60 60
Neutral - -
Disagreed - -
Total 100 100
wages and salary increases the productivity of the company, 60 respondents representing
60% agreed, none of the respondents disagreed.
Table 4.4.13: The workers should be paid direct proportion to the individual efforts rather
than group
Strongly agreed - -
Agreed 100 100
Neutral - -
Disagreed - -
Total 100 100
The above table shows that all the respondents representing 100% agreed that the
workers should be paid direct proportion to the individual efforts rather than group.
41
Table 4.4.14: My workplace provides undisturbed environment without any noise that
gives alone time to perform my duties
Agreed 30 30
Neutral - -
Disagreed 30 30
Total4 100 100
their workplace provides undisturbed environment without any noise that gives alone time
to perform their duty, 30 respondents representing 30% agreed while 30 respondents
representing 30% disagreed.
Table 4.4.15: You think the environment of the work place affect employee‟s performance
Agreed 70 70
Neutral - -
Disagreed - -
Total 100 100
environment of the work place affect employee‟s commitment, 70 respondents representing
70% agreed. None of the respondents disagreed.
42
Table 4.4.16: Attaining constant job feedback on my level of performance influences how
much I am committed to my job
Agreed 70 70
Neutral - -
Disagreed - -
Total 100 100
they attain constant job feedback on their level of performance, while 70 respondents
representing 70% disagreed. None of the respondent disagrees.
Table 4.4.17: The quality and quantity of work produced to an extent depends on levels of
commitment
Agreed 40 40
Neutral - -
Disagreed 30 30
Total 100 100
the quality and quantity of work produce to an extent depends on level of commitment, 40
respondents representing 40 agreed, while 30 respondents representing 30% disagreed.
43
Table 4.4.18: Performance appraisal gives employees sense of commitment to an
organization
Agreed 50 50
Neutral - -
Disagreed 10 10
Total 100 100
performance appraisal gives employees sense of commitment of an organization, 50
respondents representing 50% agreed, while 10 respondents representing 10% disagreed.
Table 4.4.19: I have a good understanding of where the organization is going

Agreed 50 50
Neutral - -
Disagreed - -
Total 100 100
they have understanding of where the organization is going also 50 respondents
representing 50% agreed. None of the respondents disagreed.
4.5 Test of Hypotheses

The hypothesis which were stated earlier in chapter one would be stated in this
chapter for acceptance or rejection. Hypothesis can either be null hypothesis (ho), that
which is tested or the alternative hypothesis (hi), that which is available to be accepted
when the null hypothesis has to be rejected.
44
Here chi-square formula is made use of in testing for the hypothesis through
questionnaire Chi-square = ∑ (O - E)2
2
The hypothesis are measure at 0.05 level of significance and rejection rule is that if
the computed x2 is less than the table value of x2 (critical value) the null hypothesis (Ho) is
valid and therefore should be accepted. Conversely if the computed x 2 greater than the
table value x2 (critical value) the null hypothesis is not valid therefore, it should be
rejected.
X2 = Chi-square computed
O = frequency observed
E = frequency expected
2
∑ (O - E)
E = Chi-Square ration
Hypothesis I:
Ho1: Job security has no influence on organizational.
Table 4.4.3:
Agreed 30 30
Neutral - -
Disagreed - -
Total 100 100
The degree of freedom is given by (R-1)(C-1)
Where: C = Column
R = Row
Since we have 5 rows and three column (df) = (5-1)(2-1)
4x1=4
Therefore the critical value of 5% or 0.05 level of significance under degree of
freedom x2 = 0.05 = 9.49
45
Table 4.5.1
Alternative O E O–E (O - E)2 (O - E)2
E
SA 70 20 50 2500 125
A 30 20 10 100 5
N - 20 -20 400 20
D - 20 -20 400 20
SD - 20 -20 400 20
Total 100 100 190
The calculate value = 190
Decision: Since the x2 calculated value 190 is greater than x2 critical value 9.49, therefore
the researcher reject null hypothesis and accept alternative hypothesis. Therefore, the
researcher concludes that job security has influence on organizational performance.
Hypothesis II:
Ho2: Employees motivation has no effect on organization.
Table 4.4.8:
Agreed 40 40
Neutral - -
Disagreed 24 24
Total 100 100
Table 4.5.2: Calculation of chi-square

E
SA 20 20 - - -
A 40 20 20 400 20
N - 20 -20 400 20
46
D 24 20 4 16 0.8
SD 16 20 -4 16 0.8
Total 100 100 41.6
The calculate value = 41.6
Decision: Since the x2 calculated value 41.6 is greater than x2 critical value 9.49, therefore
the researcher reject null hypothesis and accept alternative hypothesis. Therefore the
researcher concludes that employee‟s motivation has effect on organizational performance.
Hypothesis III:
Ho3: Wages system of the organization has no relationship with organization
performance
Table 4.4.11
Agreed 50 50
Neutral - -
Disagreed 20 20
Total 100 100

E
SA 20 20 - - -
A 50 20 30 900 45
N - 20 -20 400 20
D 20 20 - - -
SD 10 20 -10 100 5
Total 100 100 70
47
researcher concludes that wage system of organization has relationship with organization
performance.
Hypothesis IV:
Ho4: Conducive environment has no effect on organization performance.
Table 4.4.15
Agreed 70 70
Neutral - -
Disagreed - -
Total 100 100

E
SA 30 20 10 100 5
A 70 20 50 2500 125
N - 20 -20 400 20
D - 20 -20 400 20
SD - 20 -20 400 20
Total 100 100 190
researcher concludes that conducive environment has effect on organization performance.
48
SUMMARY OF HYPOTHESIS TESTED
S/N HYPOTHESES REMARK
1 Hi1 Accepted
2 Hi2 Accepted
3 Hi3 Accepted
4 Hi4 Accepted
4.6 Discussion of Findings

Field data revealed that, Job security is an employee's assurance or confidence that
they will keep their current job. Employees with a high level of job security have a low
probability of losing their job in the near future. It was further evidenced that employee
motivation affects organization performance. More so, it was revealed wage system has
influence on the level of commitment of an employee and also conducive environment
affects organization performance.
49
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary
The main objective of this study is to assess on the contribution of employees'
commitment on organizational performance in Yammfy Farms Limited, Ilemona Kwara
State. To achieve this objective the researcher was guided by four research questions; (i)
What are the influence of job security on organizational performance? (ii) What are the
effects of employees‟ motivation on organization performance? (iii) What could be the
relationship between employee wage system and organization performance? (iv) What
might be the relationship between conducive environment and organization performance?
Field data revealed that, Job security is an employee's assurance or confidence that they
will keep their current job. Employees with a high level of job security have a low
probability of losing their job in the near future. It was further evidenced that respondents
argued that employee motivation affects organization performance. More so, it was
revealed that wage system have relationship system on organizational performance
likewise conducive environment have significant effect in chapping employees attitude to
work.
Results on the study to assess on the contribution of employees' commitment on
organizational performance in Yammfy Farms Limited Ilemona, Kwara State implies that;-
Job security is an employee's assurance or confidence that they will keep their current job.
Employees with a high level of job security have a low probability of losing their job in the
near future. More so, wage system of organization has relationship with organization
performance
50
5.2 Conclusion
The study observed that, organizations have to realize that human resources are
more valuable than other resources and that their proper management can tremendously
help the organization maximize the utilization of other resources. Human resources can
also greatly influence the organization's performance and determine its achievement of the
set objectives.
Every organization success depends on its valuable assets “Employees”. So
employee‟s commitment to the organization is a major factor for organization success.
While employers expect workers to miss a certain number of workdays each year,
excessive absences can equate to decreased productivity and can have a major effect on
company finances, morale and other factors.
5.3 Limitation of the Study
Completion of this study was encounter with the following limitation:
Difficulty in data collection: Some of the members of the staff were reluctant to provide
some information fearing that the information might be misused. The researcher took a lot
of time to explain to respondents on how the confidentiality of this work will be maintained
throughout the process.
Time constraint: The time scheduled for the research work was short compared to the
scope of the study itself so collecting adequate data to sustain the needs was difficult. But
regarding the importance of the study itself the researcher used extra hours (sleepless
nights) to make sure that this work was very successfully.
Financial constraint: Due to the state of the nation, the required fund for typing
transportation, stationaries etc. are major financial constraint.
51
5.4 Recommendations
In order to attain efficiency and effective organization performance the following
recommendations need to be implemented:
 Employers should focus on reducing job dissatisfaction (working conditions, salary,
supervision, relationship with colleagues), while on the other hand should use
motivating factors such as achievement, recognition, responsibility and the work itself.
 Employee participation and empowerment do not only enhance efficiency, growth and
innovation but they also increase employee motivation and trust in the organization. If
employees feel appreciated for their work and are involved in decision-making, their
enhanced enthusiasm and motivation will lead to better productivity and loyalty.
 Absenteeism failure of individuals to report for work, primarily unscheduled or
unanticipated absences. Not all such absences are “bad,” of course. Life happens:
employees or members of their family become ill or unexpected events occur.
Management must maintain its flexibility in responding to these. When factors in the
organization or the workplace tend to increase unanticipated or unscheduled absences,
however, absenteeism reduces productivity and becomes a management problem.
 Every organization success depends on its valuable assets “Employees”. So employee‟s
absenteeism is a major barrier for organization success. So there is a need to control the
situation, by taking a thorough and in-detail analysis to identify the critical reasons of
absenteeism, which will help to create a proper Organizational Culture.
 Management should evaluate employee suggestion scheme and use the feedback from
the workforce to improve the organizational environment and fulfill their needs and
skills.
52
5.5 Suggestion or Further Studies
Future research should seek to enhance our understanding on the relationships
between labour turnover and absenteeism in organizations and how they impact on
organizations performance.
53
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55
APPENDIX I
Department of Business Administration

Federal Polytechnic Offa
P.M.B. 420
Offa, Kwara State
Dear Respondents,
RESEARCH STUDY ON THE EFFECT OF EMPLOYEES COMMITMENT

ON ORGANIZATIONAL PERFORMANCE
I am a final year student of Department of Business Administration, Federal Polytechnic
Offa, conducting a research on the above topic case study of Yammfy Farms Limited,
Ilemona, Kwara State, in partial fulfillment of the requirements for the award of Higher
National Diploma (HND) in Business Administration.
Kindly help me by completing this questionnaire. All information given shall be treated
confidentially and shall be used for the purpose of this research work.
Thanks.
Yours faithfully,
OLUMO GAFAR DAMILARE

BA/HND/F18/5071
56
APPENDIX II
QUESTIONNAIRE
INSTRUCTION: Please indicate answer to the following questions by marking where in
the boxes provided.
SECTION A: PERSONAL DATA

1. Gender
Male ( )
Female ( )
2. Marital Status
Single ( )
Married ( )
3. Age of the respondent
18 – 25 years ( )
26 – 35 years ( )
36 – 45 years ( )
46 years above ( )
4. Level of education
WAEC/GCE ( )
ND/NCE ( )
BSC//HND ( )
MBA/M.SC ( )
Others ( )
5. Which department of the organization do you belong to?
Personnel department ( )
Sales Unit ( )
Accounting unit ( )
Financial Unit ( )
Others ( )
6. Length of working in the company
0 – 5 years ( )
6 – 10 years ( )
11 – 15 years ( )
57
16 – 19 years ( )
20 years above ( )
SECTION B: EMPLOYEE COMMITMENT
This section of the questions consists of statements to explore your commitment to your
college. Please select the most appropriate answer to each of the statements. (NOTE: five
point Likert Scale from Strongly Agree (SA), Agree (A), Undecided (U), Disagree D and
Strongly Disagree (SD).
S/N Questions SA A U D SD
7. You are more committed to the organization when you feel there is
opportunity for your personal advancement.
8. The degree to which you generally feel satisfied with your job
has an impact on your commitment level.
9. Your commitment level rises when you feel involved in decision
making.
10. My level of stress generated from performing my job has an
influence on my commitment.
11. I am more committed to the organization when I feel my
personal needs are aligned with the companies‟ objectives.
12. The kind of relationship that I possess with my fellow
employees greatly impacts on my commitment.
13. If my personal values are in line with those of other
employees, my commitment level rises.
14. The motivation package in your organization is equitable and
fair reward for your effort?
15. Do you have motivating tools in your company?
58
16. Motivation tools in an organization have impact on employee
level of commitment
17. The range of wages and salary provided by the company is
satisfactory
18. Does wages and salary increase the productivity of your
company?
19. The workers should be paid direct proportion to the individual
effort rather than group?
20. My workplace provides an undisturbed environment without
any noise that gives me alone time to perform my duties
21. You think the environment of the workplace affects
employee's performance
SECTION C: ORGANIZATION PERFORMANCE
22. Attaining constant job feedback on my level of performance
influences how much I am committed to my job.
23. The quality and quantity of work produced to an extent
depends on levels of commitment
24. Performance appraisal gives employees sense of commitment to an
organization
25. I have a good understanding of where the organization is
going
59

Effect of Employees Commitment On Organizational Performance

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EFFECT OF EMPLOYEES COMMITMENT ON

OLUMO GAFAR DAMILARE

BEING A PROJECT SUBMITTED TO

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR

I OLUMO GAFAR DAMILARE (BA/HND/F18/5071) from the department of

Business Administration, School of Business and Management Studies, Federal

produced by me and that to the best of my knowledge it contains no material previously

published by another person.

National Diploma in Business Administration of Federal Polytechnic, Offa, Kwara State.

This project is dedicated to Almighty God and to my parent.

CHAPTER ONE: INTRODUCTION

Table 4.3.1: Background of Respondents

1.1 Background to the Study

Organizations get their work accomplished through employees who perform

different tasks. Therefore in order to improve the performance of organizations, employee

commitment is necessary as it promotes level of individual employee performance. An

Every organization is facing new challenges regarding sustained productivity and

creating committed workforce. Nowadays no organization can perform at peak levels

unless each employee is committed to the organizations objectives. Hence, it is important

to Human resource system can facilitate the development or organizational competencies

in order to have outstanding performance on long term basis. In Africa employee

satisfactions to the employee performance. Job satisfaction influence positively to the

Highly committed employee should have a weak intention to quit. Studies by

intentions and organizational commitment. Whitener, (2011) have uncovered a positive

1.2 Statement of the Problem

According to the Ashkanasy (2000), commitment is not a straightforward concept; it is the

end product of a complex set of psychological relationship between employer and

employee. The effectiveness of the organization depends on contribution of people who

work in them which is a key factor of the organizational performance. Employee

commitment is a positive psychological contract between employer and employees are

fundamental to improving performance (Patterson, 2013). But objections of this, “many

organizations still neglect to invest resources and creativity in the management of a

person's commitment within organizations.

Lack of employee commitment gave negative effect on the organizational

performance; hence it is forced to failure of an organization not achieving the

organizational goals & objectives. Highly employee commitment can be positively

company management due to some problems based on the fact.

Employers are sometimes baffled when their highly-rated employees under-perform

lack the motivation to exercise their full potentials.

Furthermore, high commitment work practices do improve performance, labour

on employee‟s satisfaction to organization performance, very little is known about the

contribution of employees‟ commitment for either individuals or organizations

performance, which is the focus of this study.

1.3 Research Questions

i. What are the influences of job security on organizational performance?

ii. What are the effects of employees‟ motivation on organization performance?

iii. Does relationship exist between Wage system and organization

iv. Does Conducive environment have effect on organization performance?

1.4 Objectives of the Study

The general objective of this study is to assess on the contribution of employees'

commitment on organizational performance in Yammfy Farm Nigerian Limited, Ilemona

Kwara State. other objectives are:

i. To investigate the influence of job security on organizational performance?

ii. To determine the effects of employees‟ motivation on organization performance?

iv. To investigate if Conducive environment has effect on organization performance?

1.5 Statement of Hypothesis

Ho1 Job security has no influence on organizational performance

Ho2 Employees‟ motivation has no effect on organization performance

Ho4 Conducive environment has no effect on organization performance

1.6 Significance of the Study

awareness to the employees and employers on the importance of strengthening cooperation

organization improves the performance of the organization hence sustained productivity.

used by organizations to improve relationship between employer and employees.