EMPLOYEE COMMITMENT AND ORGANIZATIONAL PERFORMANCE OF COMMERCIAL BANKS IN RIVERS STATE

Abstract

ABSTRACT

The study examined the relationship between employee commitment and organizational performance in paint manufacturing firms in Rivers State, Nigeria. The objective of the study was to determine the relationship between employee commitment and organizational performance (corporate image, resource maximization, and customer satisfaction) of commercial banks in Rivers State. The study adopted the explanatory cross-sectional survey research design. A sample of 108 respondents was drawn from an accessible population of 150 full-time staff of the head office of 10 accessible commercial banks in Rivers State using Krejcie and Morgan Sample Size Determination Table. The study also employed Bowley’s formula and random sampling in the selection of respondents. After validation by the supervisor and two other experts in human resource management, Cronbach alpha was used to test the reliability of the instrument. Out of 108 copies of the questionnaire administered, a total of 76 copies were retrieved. Mean and standard deviation were used for the univariate analysis; Spearman Rank Order Correlation Coefficient was used for the bivariate analysis, while the multivariate analysis was done using Partial Correlation. Spearman Rank Order Correlation Coefficient was used in testing the hypotheses one to nine, while Partial Correlation was adopted in testing hypothesis ten at 0.05 level of significance. The findings revealed that a significant positive relationship exists between dimensions of employee loyalty such as employee commitment and measures of organizational performance such as corporate image, resource maximization, and customer satisfaction in commercial banks in Rivers State, Nigeria. It was found that reward factor has moderating impact on the relationship between employee loyalty and organizational performance of commercial banks in Rivers State. The study concluded that employee commitment enhances the organizational performance of commercial banks in Rivers State. It was therefore, recommended amongst other things that management should improve on their reward system in order to sustain employee loyalty which will boost performance.