SHORT-TERM‌ ‌EMPLOYMENT‌ ‌AND‌ ‌FIRM‌ ‌PERFORMANCE:‌ ‌A‌ ‌STUDY‌ ‌OF‌ ‌SELECTED‌ ‌MANUFACTURING‌ ‌FIRMS‌ ‌IN‌ ‌NIGERIA‌

Abstract

Employees are valuable assets to organizations, since attainment of organizational goals depends on employees’ commitment to the firm’s objectives. This study focused on short-term employment and output of manufacturing firms in Nigeria. The objectives of the study were to investigate the relationship between job insecurity and capacity utilization, on the one hand, and employee commitment and productivity, on the other, in selected manufacturing firms. Research questions raised were in accordance with the study objectives. Hypotheses were formulated and the theory adopted was the Resource-Based View (RBV). The population was 3,802 from eleven registered manufacturing firms. Taro Yamane determination formula was used to select 362 as the sample size. Stratified sampling technique was employed. A four Likert scale questionnaire was administered. Descriptive and inferential statistics were used to analyze data. SPSS Version 21 was used to test the hypotheses. The study found that there is a significant relationship between job insecurity and capacity utilization, and employee commitment and productivity. It concluded that job insecurity resulted in absenteeism which led to underutilization of plant capacity, but workers output increased due to increased overtime payment, bonus, and participation in decision-making. Furthermore, there was a very high productivity level before the onset of the current economic recession and, as work conditions improved, employees went the extra mile to use the best of their skills, knowledge and ability (SKA) for increased productivity. We recommend that managers should alter their focus to fit the times in practicing Employee Participative Decision Making (EPDM) to attenuate negative effects. Managers should inspire employees’ trust and autonomy because employees are the winning cards in the hands of management and efficient utilization of human resources is sine qua non to superior performance of the firms