Impact of Employee Commitment On Employee performance Essay

Custom Student Mr. Teacher ENG 1001-04 22 March 2016

Impact of Employee Commitment On Employee performance

Employee commitment permanently shows a vigorous part to expand the employees’ performance. Committed employees provide an immense input to organizations in standings of their performance. The study explored the effect of the employee’s commitment on employee’s performance. Data was collected through 200 questionnaires from the employees of banking, telecommunication and education sector from Lahore, Pakistan. For data analysis SPSS16 version was used. The outcomes display a positive and significant association between employee commitment and employee performance. Additionally, comparative analysis of the three dimensions of employee commitment (affective, continuous and normative commitment) shows a positive and significant impact of employee commitment on employee performance. The interpretations, limitations, implications and conclusions are also debated at the end of the study. KEY WORDS:

Employee commitment (EC), Affective commitment (AC), Continuous commitment (CC), Normative commitment (NC), Employee Performance (EP). INTRODUCTION: Employee commitment denotes to emotional affection of employees to the place of work. Now times it is compulsory for every organization to have complete level of its employee’s commitment. In this fashion organizations can have an exceptional performance on extended duration foundation. In the current age when employees work as a team and each team member attempts his greatest efforts to show himself at top among all. All such things rise the commitment level of the employees which as a consequence intensification the enactment of the employees.

To get economical advantage every employee of the organization must be committed to the administrative purposes. Still the employee commitment is the utmost puzzling and researchable perception in the arenas of organization and executive behavior. In former times organizations offer job safety to expand the commitment level of the employees which pointers to the enhanced employee’s performance. Advanced level of the employee commitment at singular smooth and administrative level is the crucial element of the superior employee performance. Meyer and Allen’s (1991) established a three-component prototypical of organizational commitment. The three- component model was a inclusive and comprehensible theory for OC.

The three-component model consists of: (a)Affective commitment (AC) is the demonstrative supplement to one’s organization. (b)Continuous commitment (CC) is the affection founded on the addition of respected side risks (pension, skill transferability, rearrangement and self-investment) that differentiate with the organizational participation. (c)Normative commitment (NC) is the linking that is shaped on motivation to duplicate to communal customs about attachment. LITERATURE REVIEW:

The article written by Whyte in 1956 in his book “The organization Man” gives the concept of commitment. Commitment originates when a person makes a side link and extraneous interests with a reliable and consistent activity. The person who remains for a long time with the organization shows his commitment towards the organization. Commitment helps to improve the individual as well as the performance of the organization as a whole. Commitment behavior is also explained by many other researchers(A.Yousef, 1998). Commitment explains the association of large number of systems as an overall link (AlexandraPanaccio & Vandenberghe, 2012).

The enthusiasm of collective performers to offer their energy and devotion to social systems, the addition of personality systems to shared associations who are seen as self- sensitive(Ashar, Ghafoor, Munir, & Hafeez, 2013). commitment (1) contains somewhat of the conception of the affiliation; (2) it replicates the existing place of the individual; (3) it has a unusual forecaster probable, providing guesses regarding definite traits of performance , motivation to work, natural input and other correlated results; (4) it propose the distinctive importance of motivational factors(Ashraf, MehdiJaffri, Sharif, & Khan, 2012). To integrate and coordinate the individual and organization objectives, process of using commitment is beneficial(Ayodeji, Oyelere, Tunde, & Mariam, 2011).Commitment is “a situation in which an individual become bound by his activities and through these engagements to opinions that stand the activities of his own contribution(Chen, Silverthrone, & Hung, 2006).More committed employees request to dismiss from the organization at smallest level(Dixit & Bhati, 2012).

Commitment is the comparative power of an individual’s empathy with and in a specific organization(Dost & Ahmad, 2011).Low commitment leads toward to extraordinary degree of turnover, however greater the level of job satisfaction and demands high level of organizational commitment which promote to improved job performance(E.Becker, s.Billings, Eleleth, & L.Gilbert, 1996).Commitment is “an emotional state that fixes a person with the organization”(Fisher, Mcphail, & Menghetti, 2010). Commitment is a psychosomatic state that symbolizes the employee affiliation with the organization and has an inference on the conclusion to continue connection in the organization(Green, Mahyhew, & k&pack, 2000).Employee commitment diminutions the possibility of employee’s predisposition of departure the job(Khan, Ziauddin, Jam, & M.I.Rammy, 2010).Commitment as a prejudiced, affective attachment to the aims and principles of the organization, to one’s role in relative to goals and values and to the organization for its own benefit , separately from its virtuously contributory means(L.Sims & K.GalenKroeck, 1994).Employee commitment clues to extraordinary level of organizational performance and very small level of employee move from the organization(M.Steeres, 1977).

The performance of committed teachers is highly different from those employees who are less committed(Macky & Boxball, 2007). Significant research has been done in the preceding to discover the methods to increase the employee performance e.g.; task performance contains activities which an employee executes to achieve responsibilities given to him by his controller or behavior linked which are the basic procedures of the happenings of the organization(P.Meyer, J.Stanely, & M.Parfyonova, 2012).Organizational performance can be sedate through three basic modules which are economic performance, merchandise market performance and return to the shareholders(Panaccio & Vandenberghe, 2012).

Micro placement on method to job approaches and performance association is slightly confusing(Riketta, 2002).Organizational performance is an outcome of the employee understanding and commitment(Saleem, 2011).Developed level of employee commitment in the organizations for individual plans are to the business is supposed as a main intention for improved organizational performance that leads to the organizational success(Shahid & .m.Azhar, 2013).Reliability has been described as the best of the human state ,the better the human are committed to their undertaking will lead to their better performance(Vural, Vardarlier, & Aykir, 2012). Theoretical Framework:

The correlation between employee commitment (independent variable) and employee performance (dependent variable) is presented in the form of schematic diagram; the employee commitment is further divided into three dimension affective, continuous and normative commitment.

(Independent Variable)(Dependent Variable)

The most important interest of the study is to investigate the impact of employee commitment on employee performance and to find the relationship of affective, continuous and normative commitment with employee performance in telecom sector, banking sector and educational sector in city of Lahore (Pakistan). VARIABLES OF THE STUDY:

The Variables under the study are Employee commitment as independent variable and employee performance as dependent variable. Commitment has been further divided into three dimension affective, continuous, and normative commitment. Employee commitment:

According to Meyer &Allen (1990) commitment is defined as “the employee’s emotional state of responsibility to stay with the organization, feelings subsequent from the internalization of normative stress exercised on an individual earlier to or following entry”. Reyes (2001) has defined commitment as “a one-sided, affective attachment to the aims and values of the organization, to one’s role in relative to objectives and principles and to the organization for its own interest, distant from its virtuously influential value”. Employee Performance:

According to Meyer& Allen (1990) employee performance has been well-defined as “the job performance is the work experience in standings of measure and excellence projected from each employee”. . Richard (2009) said that “organizational performance can be restrained through three basic components which are economic performance, product market performance and reoccurrence to the shareholders. Dimensions of employee commitment:

Meyer& Allen (1991) developed a three-component model of organizational commitment which has been the foremost outline for organizational commitment. The three component model consists of: (A)Affective commitment:

Numerous studies, define the affective commitment as a significant orientation of the employees towards the organization, some researchers designate affective approach as “the supplement of an individual’s set up of affectivity and reaction to the group. Affective commitment prevails to the goals and values and to the organization for its own interest. Porter and Mow day (1979) designate affective approach as “the absolute strength of an individual’s empathy with the association in a certain organization”.

(b)Continuous commitment:
When the employees arrive into the organization they are guaranteed to commit with the organization because of the absence of substitute chances and responsiveness of the cost linked with departure the organization. Continuous commitment improves on the basis of two aspects: (1) quantity of stashes that individuals make in their existing organization (2) perceived lack of alternatives”. Continuous commitment is a “cognitive-continuance commitment as that which arises when there is a profit related with continued involvement and a cost accompanying with leaving”. Some researchers tell that the “continuous commitment can be sub-divided into high expense commitment (personal sacrifice linked with the departure) and low substitute commitment (restricted opportunities for other employment)”. (c)Normative commitment:

Normative commitment develops on the basis of earlier experience for example family-based experience or cultural experience. March (1977) said that “the normative aspects develop as individual’s perception of their moral responsibility to remain with the exhaustive organization regardless of the status improvement or fulfillment the organization gives the individual over the year”. Normative commitment can be increased through the additional reimbursements given to the employee by the employer. Steven (1978) said that “an individual is keen to stay within the organization and donate to an organization to resemble with a individual custom”. OBJECTIVES OF THE STUDY:

1. To explore the impact of employee’s commitment on employee performance; 2. To understand the impact of affective, continuous and normative commitment that they have positive and significant effect on employees’ performance; 3. To access some of the possible ways in which organizations can improve the performance of the employees; 4. To analyze that the employee commitment is a key factor towards employee performance; 5. To conclude that a better strategic vision to enable the organization both at the governmental and institutional level to ensure the higher level of employee’s performance. HYPOTHESES OF THE STUDY:

H1: There is a relationship between the employee commitment and employee performance. H2: There is a relationship between the affective commitment and employee performance. H3: There is a relationship between continuous commitment and employee performance. H4: There is a relationship between normative commitment and employee performance. RESEARCH DESIGN:

(1) Instrument:
The research targets to study the impact of employee commitment on employee performance. Data was collected through Questionnaire. The employee commitment Questionnaire consists of 18 items (related to affective, continuous, normative commitment), each factor consisted of 6 questions each in which 9 items were taken from the organizational commitment questionnaire by Allen Mayer. The second part of questionnaire is related to the employee performance and consists of 10 items. The questions were measured on a five point Liker’s scale developed by William Anderson(1991)ranging from(1)strongly disagree,(2)Disagree,(3)Neither agree nor disagree,(4)Agreed,(5)strongly-agree this research paper employee commitment(affective, continuous, normative) taken as independent variable and employee performance is taken as dependent variable.

First pilot study was conducted by using 25 questionnaires. The crown back alpha was 70% in pilot study. After conducting pilot study some modifications were made in the questionnaire, these changes were made in the items which were creating ambiguity and miss- understanding among the respondents.200 Questionnaires were again used to collect the data from the respondents. The questionnaires were duly distributed and collected from the respondents of the Lahore. The reliability and analyses were done by using SPSS. (2)Sample:

A sample of 200 Questionnaires was used to conduct the research on the topic impact of employee commitment on employee performance. The Stratified random sampling was used for data collection .Liker five point scales was used having two extreme ends. It is a causal type of investigation; the main purpose was to find the impact of employee commitment on employee performance. The research was conducted in a non-contrived study environment means that the study was conducted in a natural environment; it was a cross-sectional study. (3)Subjects:

The data was collected from the employees of the three major sectors (banking, telecommunication and education sector), the data collection was confined to the city of Lahore.

The data will be collected through questionnaires entered in Statistical Package for Social Sciences (SPSS); following tools were uses for analysis: Regression analysis and correlation tests.

1. The study was conducted and data was collected only to see the impact of employee commitment of employee performance 2. The study further elaborates the relationship of the dimensions of the employee commitment (affective, continuous and normative) with the employee performance; 3. The study can also be done to know the effects of the other factors on employee performance. The cross-sectional method of study was used to collect the data which means that the research was conducted only one time, but longitudinal method of study can also be used for the better results; 4. Due to the deficiency of cost and time only one city Lahore and three sectors (banking, telecommunication and education) were used to conduct the research. The results might be different for different cities and organization.


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performance. European Journal of Social Sciences, 15(3), 292-298. L.Sims, R., & K.GalenKroeck. (1994). The influence of ethical fit on employee satisfaction,commitment and turnover. Journal of Business Ethices, 13, 939-947. M.Steeres, R. (1977). Antecedentsand outcomes of organizational commitment. Administrative Science Quarterly, 22(1), 46-56. Macky, K., & Boxball, P. (2007). The relationship between ‘high performance work practices’and employee attitudes:an investigation of additive and interaction effects. The International Journal of Human Resource Management, 537-567. P.Meyer, J., J.Stanely, L., & M.Parfyonova, N. (2012). Employee commitment in contex:The nature and implication of commitment profiles. Journal of Vocational Behavior, 80, 1-16. Panaccio, A., & Vandenberghe, C. (2012). Five factor model of personality and organizational commitment:The mediating role of positive and negative affective states. Journal of Vocational Behavior. Riketta, M. (2002). Attitudinal organizational commitment and job performance:a meta analysis. Journal of Organizational Behavior, 23, 257-266. Saleem, S. (2011). The impact of financial incentives on employee commitment European Journal of Social Sciences, 3(4), 258-367.

Shahid, M. A., & .m.Azhar, D. S. (2013). Gaining emloyee commitment:Linking to organizational effectiveness. Journal of Management Research, 5(1), 250-268. Vural, Y., Vardarlier, P., & Aykir, A. (2012). The effects of using talent management with performance evaluation system over employee commitment. Procedia-Social and Behavioral Sciences, 58, 340-349.

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