PERCEIVED FACTORS INFLUENCING EMPLOYEE COMMITMENT AT … MAUGO D61-8… · perceived factors...

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PERCEIVED FACTORS INFLUENCING EMPLOYEE COMMITMENT AT THE NATION MEDIA GROUP ANNE KERUBO MAUGO A RESEARCH PROJECT SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION (MBA), SCHOOL OF BUSINESS, UNIVERSITY OF NAIROBI NOVEMBER, 2013

Transcript of PERCEIVED FACTORS INFLUENCING EMPLOYEE COMMITMENT AT … MAUGO D61-8… · perceived factors...

PERCEIVED FACTORS INFLUENCING EMPLOYEE

COMMITMENT AT THE NATION MEDIA GROUP

ANNE KERUBO MAUGO

A RESEARCH PROJECT SUBMITTED IN PARTIAL FULFILMENT

OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE

OF MASTER OF BUSINESS ADMINISTRATION (MBA), SCHOOL

OF BUSINESS, UNIVERSITY OF NAIROBI

NOVEMBER, 2013

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DECLARATION

This research project is my original work and has not been presented for the award of

degree in any other university or institution for any other purpose.

Signature …………………………………….. Date ……………………….

Anne Kerubo Maugo

D61/8379/2006

This research project has been submitted for examination with my approval as University

supervisor.

Signature …………………………………….. Date ……………………….

Prof. Peter K‟Obonyo

School of Business

University of Nairobi

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DEDICATION

To my family for being there for me with their tremendous support through prayer and

belief in me even during my financial struggles.

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ACKNOWLEDGEMENT

My foremost gratitude goes to God Almighty who renewed my strength at every single

stage of doing this proposal.

A lot of thanks go to my supervisor Professor K‟Obonyo for his indispensible assistance

given without complaint, many hours of positive criticism, comments and suggestions

that have enabled me to come up with a refined project.

I also take this opportunity to thank the University of Nairobi for introducing a flexible

Master of Business Administration Degree and all my lecturers for their contributions in

my entire pursuit of my MBA study.

I also thank the management Nation Media Group for their support and understanding

during the entire time that I pursued my MBA study. I appreciate and sincerely thank my

family, sisters, brothers, friends, colleagues and in-laws, for moral and financial support.

Last but not least special gratitude goes to my son Jayden Amani for his patience during

the late nights and early mornings that I have worked and compiled this project. May this

inspire you to excel.

Despite all the ups and downs, working on this research project has been a great learning

experience.

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TABLE OF CONTENTS

DECLARATION ................................................................................................................ ii

DEDICATION ................................................................................................................... iii

ACKNOWLEDGEMENT ................................................................................................. iv

LIST OF TABLES ........................................................................................................... viii

LIST OF FIGURES ........................................................................................................... ix

LIST OF ABBREVIATIONS ............................................................................................. x

ABSTRACT ....................................................................................................................... xi

CHAPTER ONE: INTRODUCTION ............................................................................. 1

1.1 Background of the Study .............................................................................................. 1

1.1.1 Concept of Perception ............................................................................................ 2

1.1.2 Employee Commitment.......................................................................................... 3

1.1.3 Factors Influencing Employee Commitment ......................................................... 4

1.1.4 Nation Media Group............................................................................................... 5

1.2 Research Problem ......................................................................................................... 7

1.3 Objective of the Study .................................................................................................. 8

1.4 Value of the Study ........................................................................................................ 8

CHAPTER TWO: LITERATURE REVIEW .............................................................. 10

2.1 Introduction ................................................................................................................. 10

2.2 Theoretical Foundation of the Study........................................................................... 10

2.3 Employee Commitment .............................................................................................. 11

2.4 Factors Affecting Employee Commitment ................................................................. 13

2.4.1 Rewards and Benefits ........................................................................................... 13

2.4.2 Demographic Factors ........................................................................................... 14

2.4.3 Career Development ............................................................................................. 15

2.4.4 Training and Development Opportunities ............................................................ 16

2.4.5 Management Styles .............................................................................................. 17

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CHAPTER THREE: RESEARCH METHODOLOGY ............................................. 19

3.1 Introduction ................................................................................................................. 19

3.2 Research Design.......................................................................................................... 19

3.2 Target Population ........................................................................................................ 19

3.3 Sampling Design ......................................................................................................... 20

3.4 Data Collection ........................................................................................................... 20

3.5 Data Analysis .............................................................................................................. 21

CHAPTER FOUR: DATA ANALYSIS, RESULTS AND DISCUSSION ................ 22

4.1 Introduction ................................................................................................................. 22

4.2 Demographic Profile ................................................................................................... 22

4.2.1 Respondents Gender ............................................................................................. 22

4.2.2 Respondents Age Bracket .................................................................................... 23

4.2.3 Highest Level of Education .................................................................................. 23

4.2.4 Length of Service With the Organization ............................................................ 24

4.2.5 Current Position in the Company ......................................................................... 25

4.3 Employee Commitment .............................................................................................. 25

4.3.1 Employee Commitment to the Company ............................................................. 26

4.4 Factors Influencing Employee Commitment .............................................................. 27

4.4.1 Influence of Rewards and Benefits on Employee Commitment .......................... 28

4.4.2 Influence of Career Development on Employee Commitment ............................ 29

4.4.3 Influence of Training and Development Opportunities on Employee Commitment

....................................................................................................................................... 30

4.4.4 Influence of Management Styles on Employee Commitment ............................. 31

4.5 Discussion ................................................................................................................... 32

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS .. 34

5.1 Introduction ................................................................................................................. 34

5.2 Summary of Findings .................................................................................................. 34

5.3 Conclusion .................................................................................................................. 36

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5.4 Recommendations ....................................................................................................... 36

5.5 Limitations to the Study .............................................................................................. 38

5.6 Suggestions for Further Research ............................................................................... 38

REFERENCES ................................................................................................................ 39

Appendix I: Questionnaire ................................................................................................ 45

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LIST OF TABLES

Table 3.1 Population Size ................................................................................................. 19

Table 3.2: Sample Size ..................................................................................................... 20

Table 4.1: Respondents Age Bracket ................................................................................ 23

Table 4.2: Length of Service with the Organization ......................................................... 24

Table 4.3: Current Position in the Company .................................................................... 25

Table 4.4: Employee Commitment to the Company ........................................................ 26

Table 4.5: Influence of Rewards and Benefits on Employee Commitment ..................... 28

Table 4.6: Influence of Career Development on Employee Commitment ....................... 29

Table 4.7: Influence of Training and Development Opportunities on Employee

Commitment ..................................................................................................................... 30

Table 4.8: Influence of Management Styles on Employee Commitment ......................... 31

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LIST OF FIGURES

Figure 4.1: Respondents Gender ....................................................................................... 22

Figure 4.2: Highest Level of Education ............................................................................ 24

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LIST OF ABBREVIATIONS

MCL - Mwananchi Communications Limited

NMG - Nation Media Group

NTV - Nation Television

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ABSTRACT

No organization in today‟s competitive world can perform at peak levels unless each

employee is committed to the organization‟s objectives and works as an effective team

member. It is no longer good enough to have employees who come to work faithfully

every day and do their jobs independently. Employees now have to think like

entrepreneurs while working in teams, and have to prove their worth. People are the most

important drivers of a company competitive advantage. This means, organizations are

reliant upon their human assets to survive and thrive. The ever-changing technology,

increased competition and globalization have created a new workplace that bears little

resemblance to the businesses of the past. In the workplace of today, many employers are

realizing that the only constant advantage that they have is their people, their intellectual

capital. Organizations with highly skilled and knowledgeable employees are more likely

to create knowledge and make correct decisions, hence resulting in better organizational

performance. The objective of the study was to determine the perceived factors

influencing employee commitment at the Nation Media Group. The study adopted

descriptive survey research design. The population of the study was made up of all (860

employees) based at the company‟s headquarters. The population of the study was

categorized into job category and stratified sampling was used in which a sample

comprised of 10% from each strata of the target population and this resulted in a sample

of 86 employees. The data was collected using self-administered questionnaires. Data

was analyzed using statistical package for social sciences and the findings presented in

tables, pie charts, percentages, mean and standard deviations. The study found out that

the company employees were committed to the company as they are proud to tell others

that they are part of this company, are glad that they choose this company to work for and

that they enjoy working with this company. The study found that the employees do not

work for this company because they do not want to lose their benefits (eg retirement

benefit), work in this company because they cannot find a better one and that employees

would do any job as long as they work here. The factors influencing employee

commitment in the company were found to be rewards, career development, training and

development opportunities and the management style.

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CHAPTER ONE

INTRODUCTION

1.1 Background of the study

No organization in today‟s competitive world can perform at peak levels unless each

employee is committed to the organization‟s objectives and works as an effective team

member. It is no longer good enough to have employees who come to work faithfully

every day and do their jobs independently. Employees now have to think like

entrepreneurs while working in teams, and have to prove their worth. People are the most

important drivers of a company competitive advantage. This means, organizations are

reliant upon their human assets to survive and thrive (Mello, 2006). The ever-changing

technology, increased competition and globalization have created a new workplace that

bears little resemblance to the businesses of the past. In the workplace of today, many

employers are realizing that the only constant advantage that they have is their people,

their intellectual capital. Organizations with highly skilled and knowledgeable employees

are more likely to create knowledge and make correct decisions, hence resulting in better

organizational performance (Hittet al., 2001).

The workplace is changing dramatically and demands for the highest quality of product

and service are increasing. To remain competitive in the face of these pressures,

employee commitment is crucial. Without employee commitment, there can be no

improvement in any area of business activity. Employees will simply treat their work as a

"9-to-5" job without any burning desire to accomplish any more than is necessary to

remain employed (Maicibi, 2003). It does not take many uncommitted employees to

prevent a business from prospering and thereby ceding a huge advantage to its

competitors. The business environment has undergone remarkable changes. Most

organizations viewed the presence of a long serving group of employees as an indication

of internal efficiency. However, with economic liberalization opening up new career

horizons for professionals in most industries, and thereby tremendously enhancing their

prospects for mobility from one organization to another, turnover has come to be

understood as a negative „spill over‟ effect of industrial growth (Templer et al., 2006).

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The success of any organization depends on its human resources, its technology and the

type of materials it has (Wong, 2010).Technology and materials cannot operate in

isolation; they need the human touch and hands to make an organization perform

effectively and efficiently. It is against this background that workers are very critical to

the success or failure of any organization. The current state of the economy characterized

by information explosion, liberalization, globalization and intense competition from

within and outside the country has led many organizations both in the private and public

sector become pre-occupied on how to increase the “added value” of their employees.

There is need to encourage employees to remain in the organization and to increase

productivity beyond that which is at a minimum accepted standard using scarce resources

(Maicibi, 2003).

1.1.1 Concept of Perception

Perception is the attitude employees have towards policies concerned with pay,

recognition, promotion and quality of working life, and the influence of the group with

whom they identify (Armstrong, 2006). As Arnold et al., (1991) comment, research

evidence has shown that people‟s avowed feelings and beliefs about someone or

something seemed only loosely related to how they behaved towards it and thus the study

of employees‟ perception is critical toward formulation and management of policies in an

organization. Dash et al., (2008) report that the factors of recognition for performing

well, chances of promotion, professional growth, compensation and incentive schemes,

are perceived as motivating factors by many employees who will in turn feel satisfied.

They point out that the development of systems of rewards, recognition and career

opportunities as one of several critical tasks of management in the information-based

companies and in their research, employees named respectful treatment and recognition

as one of the six less costly and perhaps more effective „management levers‟ to be

exercised by management in their efforts to attract, motivate and retain workers since

employees consider such factors to be important.

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Ramakrishna (2002) posit that recognizing contributions will result in a world class

working environment that motivates and propels people to work better and stay on. He

contends that the lack of recognition is one of the serious demotivators for the employees

of and as a result most organization has introduced better reward and recognition

schemes. Strategies like building a high degree of recognition value into every reward

offered, reducing entitlements and linking as many rewards as possible to performance,

troubleshooting the reward system to make sure that what it is rewarding is what you

really want to happen, rewarding promptly, giving employees a choice of rewards,

increasing the longevity of rewards will motivate the employees.

1.1.2 Employee Commitment

Employee commitment is the degree to which an employee identifies with the

organization and wants to continue actively participating in it (Newstrom and Davies,

2002). Like a strong magnetic force attracting one metallic object to another, it is a

measure of the employees‟ willingness to remain with a firm in the future. It often

reflects the employees‟ belief in the mission and goals of the firm, willingness to expend

effort in their accomplishment, and intentions to continue working there. Commitment is

usually stronger among longer-term employees, those who have experienced personal

success in the organization, and those working with a committed employee group.

According to Allen and Meyer (1990), employee commitment refers to the psychological

attachment of workers to their workplace.

Mullins (2009) view employee commitment as encapsulating by giving all of one-self

while at work. They also state that employee commitment entails things such as using

time constructively, attention to detail, making that extra effort, accepting change, co-

operation with others, self-development, respecting trust, pride in abilities, seeking

improvements and giving loyal support. Employees today are increasingly self-assured of

their value to employers, and would consciously choose to work for those organizations

that meet the above workplace expectations. Organizations that demonstrate commitment

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to employees will attract and retain the desired workforce and will ultimately win the

battle for the workforce share (Madigan et al., 2009).

Employee commitment is important because high levels of commitment lead to several

favorable organizational outcomes. It reflects the extent to which employee‟s identify

with and organization and is committed to its goals. Dordevic (2004) stated that the

commitment of employees is an important issue because it may be used to predict

employee‟s performance, absenteeism and other behaviors. According to Tolentino

(2004) 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.

1.1.3 Factors Influencing Employee Commitment

Committed employees are more productive and work with a focus on quality to increase

customer satisfaction and the profitability of their organization. High employee

commitment also leads to superior performance. Committed employees take pride in

organizational membership, believe in the goals and values of the organization, and

therefore display higher levels of performance and productivity (Steinhaus and Perry,

2006). In many organizations there is a growing gap between the expectations of

employers and what they are prepared to do. To succeed in the face of increasing

competition, organizations need improved productivity at all levels. This requires

commitment on the part of all employees which can only be achieved through better

management practices. Poor supervision and failure on the part of managers and

supervisors to create a committed workforce can lead to the loss of valued employees.

According to Madigan and Dorrell (2000), 41 percent of employees feel that their

organization is not developing effective managers and supervisors.

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Ahmad and Schroeder (2003) were of the view that in situations where employees are not

stable in terms of the jobs they do, they tend to quit and look for jobs that are secured

because with secured jobs employees can easily predict their career advancement. It is

expected that any changes in the organization, for instance, plans for redundancies, unfair

promotional procedures or poor pay may in the long run affect the employee's

commitment to the organization. Perceived organizational support is directly linked with

three categories of favorable treatment received by employees, such as, organizational

rewards and favorable job conditions, fairness and supervisor support, in return favorable

outcomes are achieved such as job satisfaction and organizational commitment(Rhoades

and Eisenberger, 2002).

According to Clark and Oswald (2006), some job satisfaction research demonstrates that

employees generally want stable employment, opportunities for promotion and

satisfactory compensation. Other research shows that social satisfaction and the

characteristics of superiors have an effect on employees‟ satisfaction levels (Martensen

and Gronholdt, 2001). To sum up, these studies support the idea that job satisfaction is

influenced by various factors, which in turns have an effect on employee commitment. It

is suggested that job satisfaction mediates the relation between working conditions on the

one hand and individual outcomes on the other hand. Mathieu and Zajac (2000) opined

that commitment has been positively related to personal characteristics such as age,

length of service in a particular organization, and marital status and have inverse relation

to the employee‟s level of education. In addition, commitment has been found to be

related to such job characteristics as task autonomy, feedback and job challenge and

certain work experiences such as job security, promotion opportunities, training and

mentoring opportunities, and supportive and considerate leadership (Scandura, 2007).

1.1.4 Nation Media Group

The Nation Media Group (NMG) is the largest independent media house in East and

Central Africa with operations in print, broadcast and digital media. It attracts and serves

unparalleled audiences in Kenya, Uganda, Tanzania and Rwanda. Nation Media Group

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(NMG) was founded in Kenya by His Highness the Aga Khan in 1959 as a private

Company. Since 1960, NMG has been the first with news for Kenyans of all walks of

life. The group has endeavored to educate, inform and entertain using different platforms

to deliver the truth. In print Nation Media Group has four newspapers Daily Nation, Taifa

Leo, Business Daily and the East African. The broadcasting division, comprises of NTV,

QTV, Easy FM and QFM and the digital platform.

Nation Media Group was quoted in the Nairobi Stock Exchange in 1970, and currently

has over 10,000 shareholders with over 600 full time employees in the Newspapers

division .The Aga Khan Fund for Economic Development, an agency of Khan

Development Networks owns the majority shares (60%) while the rest is owned by the

public. In the regional spread NMG has Monitor Publications Ltd in Uganda in which

The Monitor was started in 1992 and has grown from a basement operation to a multi-

media consortium with offices spread across Kampala city. Besides the daily and Sunday

Monitor papers, Monitor Publications Ltd. runs an FM radio station, 93.3 KFM. Daily

Monitor and Sunday Monitor are now the leading independent national newspapers in

Uganda while KFM attained market leadership in Uganda‟s crowded FM market.

In Tanzania, NMG has controlling shareholding in Mwananchi Communications Limited

(MCL), which publishes Kiswahili papers Mwananchi Daily and MwanaSpoti a weekly

all-sports newspaper. In September 2004, MCL launched an English daily, The Citizen,

which has taken competition by storm. The MCL has managed in its short history to

develop into a major player in the media scene in Tanzania committed to editorial

independence and journalistic excellence. In Rwanda, NMG has a radio station. The

Nation Group runs its own transport company, the Nation Carriers Limited that has a

well-maintained fleet to distribute its products all over Kenya. The facility provides all

transport needs for the other divisions of the company. Nation Courier, a subsidiary of

Nation Carriers. Nation Marketing and Publishing Ltd. (NM&P) distributes various

international titles for magazines such as the Economist, Times, Newsweek and Fortune

magazines. NMG works towards becoming Media of Africa for Africa.

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1.2 Research Problem

The primary dilemma that is facing organizations is how to encourage employees to

contribute their knowledge for organizational gains. Most employers realize that the road

to success lies in motivated and commitment workforce who are highly efficient,

productive, motivated and dedicated to the organization. Employers doubting thoughts on

employee commitment in terms of loyalty to an organization seems unfair at times. In

order to gain employee commitment, employers have to be pro-active in supporting

initiatives energizing employees to move towards employee‟s commitment (Ahmad and

Schroeder, 2003). Apart from monetary rewards, employers must create a win-win

situation via envisage of new approaches such as career development, recognition, work

life balance, rewards and training and development. Employees do face ups and downs in

their commitment to their organization. At times, employees do question their loyalty and

what factors would actually drive them to be committed to their job and organization.

The media industry has undergone tremendous growth and this growth has presented both

opportunities and threats for media houses. In their very competitive industry and

environment, Nation Media Group (NMG) is facing competition from other companies

thus bringing innovation, efficiency and high customer satisfaction at the heart of their

strategy. The market pressure drives Nation Media Group (NMG) in a way to build and

apply better efficient production and delivery processes, while better responding to

customer specific needs. This will reinforce NMG position as a leader in the media

market. The company seeks to gain more market share by producing and delivering

better, faster and cheaper solutions while staying compliant with strong local and global

market regulations. The company however faces major challenges in preventing the loss

of employees to its competitors, as well as changing technology in the media industry.

These challenges have, therefore, created the need to change the organizations employee

commitment challenges, while, at the same time, finding innovative ways of retaining

talent.

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Studies that have been done on the factors that influence employee commitment includes:

Wambugu (2010) who studied on the relationship between employee commitment and

job performance at the Kenya Institute of Surveying and Mapping (K.I.S.M) and

established that most of the employees are highly committed and value their career, their

job, organization and supervisor. There was a high correlation between employees'

commitment and job performance which indicates a positive correlation between

employees' job performance and organization, career, job and commitment to the

supervisor. Atieno (2010) studied the influence of work-life balance on job satisfaction

and commitment of women employees at the Commercial banks in Kisumu City, Kenya

and established that there was a significant correlation between work-life balance and job

satisfaction and also between work-life balance and commitment. Iro (2010) did a study

on the components of commitment and their influence on employee turnover at Teachers

Service Commission of Kenya. The findings were that work environment (inadequate

space, congestion in some offices, and noisy open offices) affects the respondent‟s duty

performance. From the studies above no study has been done on employee commitment

in the media industry and therefore this study will seek to identify the factors influencing

employee commitment at Nation Media Group. This study will be guided by the

question; what factors influence employee commitment at Nation Media Group?

1.3 Objective of the Study

To determine the factors influencing employee commitment at the Nation Media Group.

1.4 Value of the Study

This study generated valuable information on the current employee commitment of the

organization. It would also provide management with the present level of employee

commitment that is prevalent within the company. Necessary interventions can be put in

place to redress any shortcomings to create a more sustainable climate for its workforce.

Strategic interventions can be put in place to ensure that skilled staff is employed for the

longest possible period of time with the minimum amount of cost and effort.

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This study will help the management of the organizations to have the opportunity to be

more aware about job satisfaction and employees commitment towards the institution.

Besides that, by determining this matter, the organization might be able to recognize the

factors that may affect organizational commitment and directly to the job satisfaction. It

is important to retain the valuable employees and minimize the turnover. In order to face

the decreasing in economy, the employers should be more alert and concerned with

satisfaction of employee.

The findings of the research would, first of all, enlighten the public and private sectors

management on the level of work commitment among the media staffs. On top of that, it

would provide valuable information to the management in understanding the factors that

affect employee commitment. As job satisfaction has often been perceived as an

important contributor toward job performance and work commitment level, it is of utmost

important that the management knows and understands these factors. This would assist

the management in creating conducive working environment so as to increase job

satisfaction, hence employee commitment.

For academicians, this study will form the foundation upon which other related and

replicated studies can be based on. Investors can also gain an insight on the business and

its strategic position within the environment, which can assist them in determining their

investment viability. Lastly, researcher hopes that this knowledge would further

contribute to the body of knowledge and be a useful source of information including for

future research regarding this subject matter.

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CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

This chapter covers literature review relating to the study. It includes a review of the

various studies conducted by researchers on theoretical foundation, employee

commitment and the factors influencing employee commitment.

2.2 Theoretical Foundation of the Study

Curry (2006) postulates that the concept employee commitment is best defined through

the deployment of the social exchange theory. The social exchange theory is grounded in

an economic model of human behaviour whereby interactional processes between

individuals are persuaded by a desire to increase rewards and decrease losses (Curry,

2006). The social exchange theory‟s point of departure is that the relationships that

provide more rewards and diminish costs earn enduring reciprocal trust and attraction.

For instance, if employees are more efficient and effective in executing assigned duties

they cut costs of not being productive and employers that are generous in rewarding and

supporting their employees eliminate poor performance as a result of dissatisfaction of

employees. Thus, the social exchange process entails both material benefits and

psychological benefits that include status, loyalty and approval.

In organization researchers, the social exchange theory, and the concept of perceived

organizational support have been applied to explain the psychological process underlying

the employee attitudes and behaviors. Review of perceived organizational support

literature uses social exchange theory interpretation of organizational commitment to

explain how an employee‟s commitment to an organization is influenced by the

organization‟s commitment to employee (Jackson et al., 2004). According to Curry

(2006), there is a behavioural correlation between commitment and turnover in the

organization. For organizations to be effective they depend on the employees‟

productivity which is a variable that is also affected by the willingness and degree of

engagement in the task assigned to them and beyond the required role.

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From the perspective of the employee-employer relationship, social exchange theory

suggests that employees respond to perceived favourable working conditions by behaving

in ways that benefit the organization and/or other employees. Equally, employees

retaliate against dissatisfying conditions by engaging in negative work attitudes, such as

absenteeism, lateness, tardiness or preparing to quit the organization (Crede et al., 2007).

It is therefore, expected that employees who perceive their working conditions to be

negative and distressing, would reciprocate with negative work attitudes such job

dissatisfaction, low morale and reduced organizational commitment, while those who

perceive the workplace conditions as positive and challenging would reciprocate with

positive work attitudes, such as high commitment, job satisfaction and low turnover

(Crede et al., 2007).

2.3 Employee Commitment

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, 1997). Therefore it is evident that for sustained productivity,

employee commitment is an important factor. According to Madigan, Norton and Testa

(2009), committed employees would work diligently, conscientiously, provide value,

promote the organization's services or products and seek continuous improvement. In

exchange, they expect a work environment that fosters growth and empowerment, allows

for a better balance of personal and work life, provides the necessary resources to satisfy

the needs of customers and provides for their education and training. Employee

commitment is argued to be critical to contemporary organizational success (Pfeffer,

1998). Affective commitment, in particular, has been associated with positive

organizational outcomes such as improved retention, attendance, and citizen behaviors,

self reports of performance, and objective measures of supervisor ratings of employees‟

performance as well as indicators of improved operational costs and sales (Meyer and

Allen, 1997).

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Pfeffer, 1998 states that committed employees who are highly motivated to contribute

their time and energy to the pursuit of organizational goals are increasingly

acknowledged to be the primary asset available to an organization. They provide the

intellectual capital that, for many organizations, has become their most critical asset.

Furthermore, employees who share a commitment to the organization and their collective

well-being are more apt to generate the social capital - found in relationships

characterized by high levels of trust and shared values - that facilitate organizational

learning. According to Iverson and Buttigieg (2008) committed employees accept

organizational values easily while taking responsibility for their actions. High levels of

commitment to the organization are likely to reduce absenteeism, staff turnover and

increase levels of job satisfaction and performance. These positive benefits of committed

employees are recognized as important determinants of organizational effectiveness.

An organization that has a committed workforce has the highest possibility to prosper

because committed employees are more productive and save costs through effective and

efficient delivery of service. There are less than fifty percent of committed workforces in

organizations today and it is upon employers to establish the core source of the disparity

(Grote and Raeder, 2009). Peeters and Meijer (2005) postulates that employees are of the

opinion that employers are not regarding loyalty as valuable and that they perceive it as

expendable when faced with pressure. This perception of employers exhibits no sense of

compassion for the employees and shows that employers are willing to sacrifice the

employees to maintain a financial bottom line. A couple of incidents that advocate the

perception of employers devaluing their employees can be seen in the continuous

downsizing, right-sizing and re-engineering of an organization. For employees to be

committed, employers need to meet their needs both as workers and individuals (Iverson

and Buttigieg, 2008).

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2.4 Factors Affecting Employee Commitment

Today's employees are better educated, increasingly mobile and are constantly seeking

empowerment. The ever-changing technology, increased competition and globalization

have created a new workplace that bears little resemblance to the businesses of the past.

In the workplace of the future, many employers are realizing that the only constant

advantage that they will have is their people is their intellectual capital. However, the

employee commitment to an organization is affected by rewards, benefits, supervision,

co-workers, work, not recognizing employee job performance, fewer opportunities for

growth/promotion, low salaries, and employees not receiving praise from their superiors

for good performance (Robbins et al, 2009).

2.4.1 Rewards and Benefits

Organizational commitment can be categorized into normative, continuance and affective

commitment. Normative commitment refers to employees‟ perceived obligation to stay

with an organization whilst employees with continuance commitment choose to stay with

an organization because they have no choice (Malhotra et al., 2007). In contrast, affective

commitment is conceptualized as an emotional attachment and loyalty displayed towards

the organization as a result of rewards obtained. Affective commitment is the

commitment dimension which has been found to be most strongly related to positive

occupational and organizational outcomes such as job satisfaction, motivation and

employee retention (Buitendach and De Witte, 2005).

In many organizations, there‟s growing commitment gap – a widening split between the

expectations of employers and what workers are prepared to do. The most common

reason for this is a failure of management in some way or another. Properly managed

employees can be motivated to achieve excellence in any area of business. Pickard (2003)

observes that increasing business competitiveness demands that organizations have to

offer the best quality products or services for the best price. This requires that

organizations develop and harness the talents and commitment of all their employees.

Getting the best out of people and attempting to improve job satisfaction demand a spirit

14

of teamwork and cooperation, and allowing people a greater say in decisions that affect

them at work.

Generally, positive relationships have been found between affective commitment and

rewards (Malhotra et al., 2007). Malhotra et al. (2007) explain this relationship in terms

of an act of reciprocity, according to which employees enter organizations with the

expectation of being given the right platform to use their skills and to satisfy their needs

and desires. The study further shows that when an organization fulfils employees‟

monetary and non-monetary expectations, their affective commitment increases.

Malhotra et al. (2007) established that intrinsic non-monetary rewards are more powerful

predictors of affective commitment than monetary rewards. Coetsee (2004) underscores

the significance of linking rewards, which are terms the outcomes to good performance

and explains that this giving of compensation to deserving employees will encourage the

employee to work harder and therefore affect their behaviour by motivating them. Levine

(1993) suggests that where inequity exists, employees may attempt to reduce the distress

by changing the perceptions of either their own or reference group‟s inputs and outcomes,

altering their inputs such as their effort or their outcomes (getting a pay raise or quitting

the organization).

2.4.2 Demographic Factors

Demographic factors that have been found to have stable relationship with turnover in

past research include age, tenure, level of education, level of income, and job category

(managerial or non-managerial). Maertz and Campion (2001) in their study found out that

amount of education was positively associated with turnover suggesting that the more

educated employees quit more often and that non-managerial employees are more likely

to quit than managerial employees. Voluntary labour turnover decreases with increasing

age (Young, 2000). This is because changing occupations becomes more difficult and

threatening with age. The typical worker, who is thirty five (35) years of age or above has

become involved in an occupation that will engage him or her until retirement and despite

occasional signs of discontent, few of such workers entertain serious thoughts of

changing occupation.

15

Employee age has been regarded as a positive predictor of commitment for a variety of

reasons. Kaldneberg et al., (2005) argue that as workers get old, alternative employment

options generally decrease, making their current job more attractive. They pointed out

that older individuals may have more affective commitment to the organization because

they have greater history with the organization than younger workers. Mungumi (2002)

found out that, employees who are not married have a higher propensity to leave work

than the married employees. All researchers agree that labour turnover is higher among

females that males especially in married women. These findings can be explained by the

fact that women may leave jobs due to family commitments such as resigning to take

raise their young family.

Poon (2004) posit that older workers are more satisfied with their job, receiving better

positions and having „cognitively satisfied‟ their remaining in the organization.

Cognitively satisfy means satisfied to all what they get and they felt comfortable in the

organization. The researcher also found that the number of year in position significantly

positive related to attitudinal commitment, and length of service is significantly positively

to behavioral commitment. Meyer and Allen (1997) suggest that the latitude that

employees have to express their attitude to the organization will vary considerably across

the performance indicators and between jobs. Salami (2008) investigated the

relationships of demographic factors (age, marital status, gender, job tenure, and

educational level), emotional intelligence, work-role salience, achievement motivation

and job satisfaction to organizational commitment of industrial workers and found that

emotional intelligence, work-role salience, achievement motivation, job satisfaction and

all demographic factors except gender significantly predicted organizational commitment

of the workers.

2.4.3 Career Development

Employee‟s career advancement is a phenomenon which is formalized, organized and it

is planned effort to accomplish the balance between requirement of organization

workforce and individual career needs. The rapidly rising awareness makes it evidence

16

that employees can give leading edge to the organization in market place. It is challenge

for today human resource managers to identify the organization developmental strategies

which enthusiasts the employee commitment to the organization vision and values to

motivate the employees and help the organization to gain and sustain the competitive

advantage (Graddick, 2008). Greller (2006) states that people always work for a reason

and the cause should be provided by work, organization, co-workers or from within. In

order to strengthen the bond with employees, organization must spend on the

development of employees. It creates promotion opportunities within organization and

provides training opportunities and skill development to improve their employee‟s

employability on the internal and / or external labour market.

Growth and development are the integral part of every individual‟s career. If employees

cannot foresee their path of career development in their current organization, there are

chances that they will leave the organization as soon as they get an opportunity (Bratton

and Gold, 2003). The important factors in employee growth that an employee looks for

himself are work profile, personal growth and dreams, and training and development.

Career development is vital for both the employees and employers. Career development

is mutual beneficial process because it gives imperative outcomes to employer and

employees. To gain and maintain competitive advantage organizations required talented

& productive employees and these employees need career development to enhance and

cultivate their competencies (Prince, 2005).

2.4.4 Training and Development Opportunities

McElroy (2001) observes that organizations that extensively train their employees create

a reputation for valuing and developing employees and are able to attract a cadre of

highly skilled employees. Such organizations send a clear message to their employees

that they are committed to the development of their people leading to high affective and

normative commitment. However, organizations that provide company specific training

are likely to induce continuance commitment because the training makes employees more

valuable to their existing employers than to potential employers. Such skills constitute

17

sunk costs in terms of time and effort that an employee stands to lose if he/she leaves the

organization. Such employees are „betting‟ that the time and energy invested will pay off

with continued employment in that organization. Several career-related factors including

internal training have been recognized as influencing the level of organizational

commitment of employees. When employees perceive that an organization adheres to

career-oriented employment practices, their psychological attachment to the organization

increases, which results in decreased turnover intentions (Chang, 2009).

Although well-thought-out strategies and human resource planning, recruitment and

selection initially provide an organization with the required workforce, additional training

is normally necessary to provide employees with job-specific skills which enable the

employees to survive over time (Swanepoel et al., 2003). Current labour economic

thinking on training assumes a negative relationship between turnover and training. It

supposes that the investment in training is the result of optimizing decisions made by

both workers and employees. Firm-specific training, on the other hand, cannot generate

an increased wage with anyone other than the current employer. Therefore organizations

can recoup their investment in specific training and they will be willing to share some or

all of the costs of specific training rather than of general training (Forrier and Sels, 2003).

2.4.5 Management Styles

The role of the leader has become vital, especially in an environment that is constantly

changing (Cope and Waddell, 2001). The effect of leaders‟ influence on workers‟

work‐related experience cannot be under estimated. In many cases, the caliber of the

relationship between the worker and his or her immediate director is the most powerful

indicator of job satisfaction. This connection between management performance,

leadership, and satisfied workers is easiest seen in new workers, who generally equate

their feelings about their work with the quality of their leaders. An inaccessible or

insensitive management style costs an organisation both directly and indirectly. Low

productivity, frustrated workers, loss of time, and money spent to enhance the confidence

of the staff are reflections of workers‟ attitudes.

18

Borstorff and Marker (2007) state that the relationship between managers and employees

influences employees‟ decision to stay in a job as the supervisors and managers have an

important impact on employee turnover. The length of time that employees stay in an

organisation is largely determined by the relationship between employees and their

managers. Employees value certain factors about managers. Taylor (2002) notes that

employees desire managers who know and understand them, and who treat them justly.

Employees also prefer managers who can be trusted. If employees feel that their

managers are fair, reasonable and supportive, levels of job satisfaction increase.

Secondly, if the manager shows interest in the well-being of employees and is supportive

and sensitive towards employees emotionally, employee job satisfaction increases (Egan,

Yang and Bartlett, 2004). Furthermore, autonomy is valued by employees and decreases

turnover.

19

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Introduction

The chapter describes the proposed research design, the target population, data collection

instruments and the techniques for data analysis.

3.2 Research Design

The research design adopted was a descriptive survey research design. According to

Cooper and Schindler (2000), a descriptive research design is concerned with finding out

the; who, what, where, when and how much. Furthermore, a research design is structured,

has investigative questions and part of formal studies. The design is deemed appropriate

because the main interest was to explore the viable relationship and describe how the

factors support matters under investigation. This kind of research design was used for the

study as it enabled the researcher to establish the factors influencing employee

commitment at the Nation Media Group. Descriptive design method provides quantitative

data from cross section of the chosen population. This design provided further insight

into research problem by describing the variables of interest.

3.2 Target Population

This consisted of all employees of Nation Media Group based at the company‟s‟

headquarters. The staff structure of the organization is made up of senior managerial

level and the lower level employees and all the cadres of employees formed the

population of the study. As at 30th

June, 2013, the total number of staff at the Nation

Media Group stood at 860.

Table 3.1 Population Size

Employee category Population frequency Percentage

Senior Managers 67 7.8

Lower level employees 793 92.2

Total 860 100.00%

Source: Nation Media Group Human Resource Records (2013)

20

3.3 Sampling Design

The researcher used stratified sampling because of ease of classifying the population into

strata. The sample comprised of 10% from each strata of the target population. According

to (Mugenda and Mugenda, 1999) a sample of 10% is considered representative.

Respondents were selected randomly based on the category. This approach is considered

appropriate since ensured a representative sample. In order to find the best possible

sample, stratified sampling was the best method to use as provided reach and in-depth

information. The sample size is appropriate for the study as it ensured that all the cadres

in the organization are represented thus reducing sampling bias and achieving a high

level of representation.

Table 3.2: Sample Size

CATEGORY POPULATION FREQUENCY SAMPLE 10%

Senior Managers 67 7

Lower level employees 793 79

Total 860 86

Source: Researcher, 2013

3.4 Data Collection

The study used primary data. The primary data was collected through self-

administered questionnaires. A questionnaire is a useful tool for collecting data from

respondents because of the need to provide a means of expressing their views more

openly and clearly. The semi structured questionnaire consisted of open ended and

closed ended questions designed to elicit specific responses for qualitative and

quantitative analysis respectively. The questionnaires were administered purposeful to

the sampled staff. The questionnaire was made up of three sections. Section A covered

demographic characteristics of respondents; Section B dealt with employee

commitment while Section C covered the factors influencing employee commitment.

21

3.5 Data Analysis

Before analysis, data was cleaned to eliminate discrepancies and thereafter, data coded

and keyed in to the computer. The data was classified, tabulated and summarized using

descriptive measures such as percentages, frequency distribution, means and standard

deviations and inferential statistics, that is, factor analysis test. Factor analysis reduced

independent variables at the same time indicated the direction and strength of the

relationship for each variable. Tables and graphs were used for presentation of findings.

Statistical Package for Social Sciences (SPSS) software was used to facilitate the

analysis.

22

CHAPTER FOUR

DATA ANALYSIS, RESULTS AND DISCUSSION

4.1 Introduction

The research objective was to the perceived factors influencing employee commitment at

the Nation Media Group. This chapter presents the analysis, findings and discussion. The

findings are presented in percentages and frequency distributions, mean and standard

deviations. A total of 86 questionnaires were issued out and only 68 were returned. This

represented a response rate of 79%.

4.2 Demographic Profile

The demographic information considered in the study was respondents‟ gender, age

bracket, highest level of education, length of service and the respondents‟ current position

in the company.

4.2.1 Respondents Gender

The respondents were asked to indicate their gender and the results are presented in

figure 4.1.

Figure 4.1: Respondents Gender

The results indicate that 54.2% of the respondents were female while 45.8% of the

respondents were male. The respondents were made up of more female than male.

Although the employment levels from which participants were drawn significantly favour

23

female Randeree (2006) noted that the study had almost equal ratios of males and

females, in order to avoid gender bias.

4.2.2 Respondents Age Bracket

The respondents were asked to indicate their age bracket and the results are presented in

table 4.1.

Table 4.1: Respondents Age Bracket

Years Frequency Percent Cumulative Percent

Under 30 10 14.7 14.7

31-40 33 48.5 63.2

41-50 21 30.9 94.1

Over 50 4 5.9 100.0

Total 68 100.0

The results on the respondents age bracket indicate that 48.5% of the respondents age

bracket was between 31 and 40 years, 30.9% of the respondents indicated that their age

bracket was 41 to 50 years, 14.7% of the respondents said that their age was less than 30

years while 5.9% of the respondents were over 50 years. The results indicate that

majority of the respondents were over 30 years and therefore they still have many years

to retirement thus they need to work in institutions that would ensure that their interest is

taken care off in order to be committed to the organization. Kaldneberg, Becker and

Zvonkovic (1995) argue that as workers get old, alternative employment options

generally decrease, making their current job more attractive. They pointed out that older

individuals may have more affective commitment to the organization because they have

greater history with the organization than younger workers.

4.2.3 Highest Level of Education

The respondents were requested to indicate the highest level of education and the results

are presented in figure 4.2.

24

Figure 4.2: Highest Level of Education

The results indicate that 62.1% of the respondents had attained university level, 28.1% of

the respondents said that their highest level of education was post graduate level while

9.8% of the respondents had attained tertiary college level. The results indicate that

majority of the respondents were university graduate and above an indication that in

order for the employees to remain in the company their welfare need to be satisfied.

4.2.4 Length of Service With the Organization

The respondents were requested to indicate the length of service with the company and

the results are presented in table 4.2.

Table 4.2: Length of Service with the Organization

Years Frequency Percent Cumulative Percent

Less than 5 15 22.1 22.1

5-10 25 36.8 58.9

Over 10 28 41.1 100.0

Total 68 100.0

The results indicate that 41.1% of the respondents have worked in the company for over

10 years, 36.8% of the respondents indicated that they have worked in the company for 5

to 10 years while 22.1% of employees indicated that they have worked in the

25

organization for a period of less than 5 years. The results indicate that the respondents

have worked in the organization for over 5 years and therefore they understand the extent

to factors that influence employee commitment in the company.

4.2.5 Current Position in the Company

The respondents were asked to indicate the current position which they hold in the

company and the results are presented in table 4.3.

Table 4.3: Current Position in the Company

Position Frequency Percent Cumulative Percent

Top level 22 32.4 32.4

Lower level 46 67.6 100.0

Total 68 100.0

The results indicate that 67.6% of the respondents were from the lower level while 32.4%

of the respondents‟ current position was top level. The results indicate that the results

would give a clear picture of the factors that influence commitment in the company as the

respondents are from different categories.

4.3 Employee Commitment

Employee commitment is the degree to which an employee identifies with the

organization and wants to continue actively participating in it. Employees today are

increasingly self-assured of their value to employers, and would consciously choose to

work for those organizations that meet the above workplace expectations. Organizations

that demonstrate commitment to employees will attract and retain the desired workforce

and will ultimately win the battle for the workforce share

26

4.3.1 Employee Commitment to the Company

The respondents were requested to indicate the extent of agreement on factors regarding

employee commitment in a five point Likert scale. The range was „strongly disagree (1)‟

to „strongly agree‟ (5). The scores of strongly disagree and disagree have been taken to

represent a variable which had a mean score of 0 to 2.5 on the continuous Likert scale;

(0≤ S.E <2.4). The scores of „moderate agree‟ have been taken to represent a variable

with a mean score of 2.5 to 3.4 on the continuous Likert scale: (2.5≤M.E. <3.4) and the

score of both agree and strongly agree have been taken to represent a variable which had

a mean score of 3.5 to 5.0 on a continuous Likert scale; (3.5≤ L.E. <5.0). A standard

deviation of >0.9 implies a significant difference on the impact of the variable among

respondents. The results are shown in Table 4.4.

Table 4.4: Employee Commitment to the Company

Employee Commitment to the company Mean Std. Deviation

Enjoy working with this company 4.0517 .9628

Employee is proud to tell others that they are part of this

company

4.3103 1.0630

Employees are glad that they choose this company to work

for

4.0862 1.0308

Employees work in the company because there are many

opportunities for advancement

3.2069 1.3734

Employees work in this company because they cannot find a

better one

1.7931 .9869

Employees work for this company because they do not want

to lose my benefits (eg retirement benefit)

1.5172 1.0129

Employees cannot quit this job because they have to support

their family

2.5428 1.3011

Employees consider it their commitment to work for the

same company until retirement

2.1792 1.2704

Employees would like lifetime employment with this

company

2.5157 1.3011

Employees would do any job as long as they work here 1.8276 1.0944

Employees have never thought to leave this organization

even when the condition of this company is not stable for

this moment

2.1207 1.2715

27

The results on employee commitment in the company indicate that the employees are

proud to tell others that they are part of this company (mean 4.3103), are glad that they

choose this company to work for (mean 4.0862) and that they enjoy working with this

company (mean 4.0517). The results at the same time indicate that the employees

disagreed that they work for this company because they do not want to lose my benefits

(eg retirement benefit) (mean 1.5172), work in this company because they cannot find a

better one (mean 1.7931) and that employees would do any job as long as they work here

(mean 1.8276). The results show that the employees are committed to working in the

company and this will enable the company to achieve its objectives as they do not have to

replace employees quite often. The results are consistent with Steinhaus and Perry (2006)

findings that committed employees take pride in organizational membership, believe in

the goals and values of the organization, and therefore display higher levels of

performance and productivity.

4.4 Factors Influencing Employee Commitment

Committed employees are more productive and work with a focus on quality to increase

customer satisfaction and the profitability of their organization. In many organizations

there is a growing gap between the expectations of employers and what they are prepared

to do. To succeed in the face of increasing competition, organizations need improved

productivity at all levels. This requires commitment on the part of all employees which

can only be achieved through better management practices.

28

4.4.1 Influence of Rewards and Benefits on Employee Commitment

Table 4.5: Influence of Rewards and Benefits on Employee Commitment

Influence of rewards and benefits on employee commitment

Mean

Std.

Deviation

Wages and salary paid encourages employees to stay in the

company

4.0690 1.07380

There is job security which encourages employees to remain

in the company

3.6552 1.41175

Employees are satisfied with the number of annual leave days

given by the company

3.5517 1.33012

The rewards offered to employees commensurate work done

hence job satisfaction

3.1379 1.26280

Employees are satisfied with the group personal accident

insurance plan

3.5862 1.42699

The rewards offered to employees are comparable with what

the market offers

2.7414 1.23630

Employees are satisfied with the educational subsidies given

by the company

2.6897 1.36635

The company has satisfactory performance appraisals 2.9310 1.15260

Employees are satisfied with the number of sick leave days

given by the company

2.8966 1.41036

Employees are satisfied with the number of maternity

leave/paternity leave days given by the company

3.4310 1.41560

Employees are satisfied with the hospitalization and surgical

insurance plan

2.7759 1.38973

The results indicate that the employees were satisfied with the wages and salary paid

encourages employees to stay in the company (mean 4.0690), the rewards offered to

employees are comparable with what the market offers (mean 3.7414), job security which

encourages employees to remain in the company (mean 3.6552), the number of maternity

leave/paternity leave days given by the company (mean 3.6310), the group personal

accident insurance plan (mean 3.5862) and that employees are satisfied with the number

of annual leave days given by the company (mean 3.5517). The respondents were

satisfied with the other factors to a moderate extent an indication that rewards influence

29

employee commitment in the company. The results are consistent with Malhotra et al.

(2007) explanation that there is a positive relationship between affective commitment and

rewards in terms of an act of reciprocity, according to which employees enter

organizations with the expectation of being given the right platform to use their skills and

to satisfy their needs and desires. The study further shows that when an organization

fulfills employees‟ monetary and non-monetary expectations, their affective commitment

increases.

4.4.2 Influence of Career Development on Employee Commitment

The respondents were asked to indicate the influence of career development on employee

commitment and the results are presented in table 4.6.

Table 4.6: Influence of Career Development on Employee Commitment

Influence of career development on employee commitment Mean Std. Deviation

Career development benefits the employer 3.2069 1.4235

Career development benefits the employee 3.7931 1.2391

Career Development will improve employee personal growth 4.1897 1.1153

Career development will improve employee job performance 4.0345 1.0754

Career development will improve employee job 3.9310 1.2405

Career development will further motivate the employee 4.1034 1.1190

Career development is important because of the beneficial

outcomes

3.7759 1.2145

Career development will improve employee career prospects 4.1207 1.1257

Career development is important because of the changing

nature of employee work

3.7681 1.2710

The company rewards employee for professional development 2.9655 1.3372

The findings presented in table 4.6 indicate the influence of career development on

employee commitment at the company. The findings indicate that a majority of the

respondents expressed high levels of satisfaction in regard to the employee personal

growth (mean 4.1897), career prospects (mean 4.1207), motivate the employee (mean

4.1034), improve employee job performance (mean 4.0345), improve employee job

30

(mean 3.9310), benefits the employee (mean 3.7931), because of the beneficial outcomes

(mean 3.7759) and that career development is important because of the changing nature

of employee work (mean 3.7681). The respondents expressed low levels on career

development benefits the employer and company rewards employee for professional

development. The results indicate that career development influence employee

commitment to the company.

4.4.3 Influence of Training and Development Opportunities on Employee

Commitment

The respondents were requested to indicate the influence of training and developments

opportunities on employee commitment.

Table 4.7: Influence of Training and Development Opportunities on Employee

Commitment

Influence of training and development opportunities on employee

commitment Mean

Std.

Deviation

The company employees receive training and development in

workplace skills in regular on a regular basis

4.0690 1.1372

This company is providing employees with job specific training 3.7381 1.0596

Sufficient time is allocated for product and solution training 2.8793 1.0773

Sufficient money is allocated for product and solution training 2.9428 1.1406

Employees have the opportunity to be involved in activities that

promote employees professional development

3.6862 1.1437

Training and development plans are developed and monitored for

all employees

3.8793 1.2294

Training and development programs are consistently evaluated 3.9138 1.1590

The company releases employees from regular work to attend

training and even sponsor them where possible

3.5739 1.3377

There is a well-organized training program in the company 2.8966 1.2238

The findings indicate that majority of the respondents were in agreement that the

company employees receive training and development in workplace skills in regular on a

regular basis (mean 4.0690), training and development programs are consistently

evaluated (mean 3.9138), training and development plans are developed and monitored

31

for all employees (mean 3.8793), the company providing the employees with job specific

training (mean 3.7381), employees having the opportunity to be involved in activities that

promote employees professional development (mean 3.6862) and that the company

releases employees from regular work to attend training and even sponsor them where

possible (mean 3.5739). The respondents were in agreement to a moderate extent that

there is a well-organized training program in the company (mean 2.8966), sufficient

money is allocated for product and solution training (mean 2.9428) and that sufficient

time is allocated for product and solution training (mean 2.8783). The results indicate that

training and development in the company influences employee commitment.

4.4.4 Influence of Management Styles on Employee Commitment

The respondents were asked to indicate the effect of management styles on employee

commitment and the results are presented in table 4.8.

Table 4.8: Influence of Management Styles on Employee Commitment

Influence of management styles on employee commitment Mean Std. Deviation

The top management team in this organization are friendly and

approachable

3.6207 1.1821

The top management members in this organization try to make

employees‟ job more pleasant

3.7483 1.1872

The management treats all employees as equals 3.0345 1.2560

Members of the management team are always available when their

help and support is needed by the employees

3.5966 1.1229

The management looks out for the welfare of employees 3.2414 1.0972

The management of the company believes that continual training

and upgrading of employees‟ skills is important

3.6913 1.1853

The management stimulates the development of skills among

employees

2.9828 1.3044

The supervisor looks for opportunities to praise positive employee

performance, both privately and in front of others

3.3793 1.2541

The management of the company ensures that there is effective

communications, teambuilding, conflict resolution, coaching, and

mentoring

3.5169 1.2671

Managers show appreciation for employees‟ hard work 3.5828 1.1583

32

The findings indicate that the respondents were in agreement that the top management

members in this organization try to make employees‟ job more pleasant (mean 3.7483),

management of the company believes that continual training and upgrading of

employees‟ skills is important (mean 3.6913), top management team in this organization

are friendly and approachable (mean 3.6207), members of the management team are

always available when their help and support is needed by the employees (mean 3.5966),

managers show appreciation for employees‟ hard work (mean 3.5828) and that the

management of the company ensures that there is effective communications,

teambuilding, conflict resolution, coaching, and mentoring (mean 3.5169). The

respondents moderately agreed that the supervisor looks for opportunities to praise

positive employee performance, both privately and in front of others, management looks

out for the welfare of employees, management treats all employees as equals and that the

management stimulates the development of skills among employees. The results indicate

that the management style in the company was the heart of the success of the company

and strongly influence the firm‟s overall performance.

4.5 Discussion

All organizations, private or public connect employees to execute certain activities in

order to attain goals and objectives. No matter what these goals are, organizations must

have competent employees to perform the tasks and to accomplish them. Companies can

seek to achieve organizational goals through a variety of human resource strategies and

approaches and the importance of ensuring employees‟ commitment and retention

following training and development may lie in the strategic approach that is utilized. The

study established that training and development opportunities was granted to the

employees in the company and will enable the company to withstand competition in the

media industry. the results are consistent with Owen (2006) findings that training and

development will increase employees‟ commitment, which can further counter the

numerous direct and indirect costs associated with employees‟ turnover. In an attempt to

ensure that the employees remain with the company following training, the company may

implement a strategy to training that fosters commitment. The analysis has shown that the

33

more training and development opportunities given to employees‟, the stronger

employees‟ commitment to the organization. When an organization provides training and

development opportunities to employees, the chances of better performance is enhanced.

The research supports the existing literature that training is likely not only to increase and

improve employees‟ knowledge and skill, rather, it is also a means of achieving higher

organizational commitment and performance. Bartlett (2001) argues that organizations

that are able to create an environment where training is supported and valued by

employees will be able to achieve greater commitment outcomes such as low employees‟

turnover.

The results show that rewards and benefits influence employee commitment. The factors

indicate that nation media group employees are satisfied with the rewards received, the

structure, or administration of their compensation and the level or competitiveness of

their rewards. The findings confirm that the employees of the company want competitive

salary. The findings are supported by the equity theory posits that people evaluate

fairness by comparing the inputs they contribute (i.e. skills and efforts) and the outcomes

they receive (i.e. pay) to the corresponding inputs and outcomes of referent groups within

the organization and in the external market (Greenberg, 1990). Meyer and Smith (2000)

found that the provision of benefits is likely to be perceived by employees as part of the

psychological contract, thus creating an obligation on the part of the employee to

reciprocate, resulting in high normative commitment. The results found out that the

company employees were taking the existence of career development opportunities in the

company as they seek to commit themselves to the company. Commitment towards the

organization is degraded if there is a perception of under handed methods in promotion

activities (Mosadeghrad, Ferlie and Rosenberg, 2008). Al‐Ahmadi (2002) established that

employees demonstrate greater levels of satisfaction and commitment if they are given

ample opportunity for personal as well as professional growth in their organization.

According to Friday and Friday (2003), satisfaction with promotion determines

employees‟ attitudes toward the organization‟s promotion policies and practices as it

employees with opportunities for personal growth, more responsibilities and increased

social status.

34

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Introduction

This chapter presents discussion, conclusion and recommendations of the study basing on

the objective of the study which was to establish the perceived factors influencing

employee commitment at the Nation Media Group. Recommendation for further study

was also presented.

5.2 Summary of Findings

The study shows that majority of the respondents were over thirty years and therefore

they still have many years to retirement thus they need to work in institutions that would

ensure that their interest is well taken care off thus being committed to the organizations.

The respondents‟ level of education was mostly university and postgraduate an indication

that in order to increase the commitment of the employees the company has to ensure that

the employees‟ welfare need is satisfied. Majority of the respondents were found to have

been working in the company for more than five years and therefore they understand the

company and the factor that influence the commitment of employees. The position held

by the respondents cut across the whole organization and this will ensure that the views

of all cadres in the company are taken into consideration.

The study established that employees were committed to the company as they are proud

to tell others that they are part of this company, are glad that they choose this company to

work for and that they enjoy working with this company. Understanding the design

implications of incentive systems is important to understanding of employee motivation

and whether these incentive systems are related to satisfaction. The rewards and benefits

being offered to employees in the company influenced commitment as it resulted in

satisfaction with the wages and salary paid encourages employees to stay in the company,

the rewards offered to employees are comparable with what the market offers, job

security which encourages employees to remain in the company, the number of maternity

leave/paternity leave days given by the company, the group personal accident insurance

35

plan and that employees are satisfied with the number of annual leave days given by the

company.

Commitment towards the organization is degraded if there is a perception of under

handed methods in promotion activities. The findings of the study was that career

development influences the company‟s‟ employees to be committed as it improves their

personal growth, career prospects, motivate the employee, improve employee job

performance, improve employee job, benefits the employee, because of the beneficial

outcomes and that career development is important because of the changing nature of

employee work. By investing in their human resources, organizations are not necessarily

motivated by the humanitarian objective of maximizing employee welfare or happiness,

but rather they do so as a means to increase their productivity, to become more adaptable

to emerging opportunities in the market place or to enhance their reputation with key

stakeholders. The study established that the company invests in its employees training

them in workplace skills on a regular basis, consistently evaluating training and

development programs, developing and monitoring development plans are for all

employees, providing the employees with job specific training, employees having the

opportunity to be involved in activities that promote employees professional development

(mean and that the company releases employees from regular work to attend training and

even sponsor them where possible.

The role of the leader has become vital, especially in the media industry that is constantly

changing. The effect of leaders‟ influence on workers‟ work‐related experience cannot be

under estimated. The findings was that the top management members in this organization

try to make employees‟ job more pleasant, management of the company believes that

continual training and upgrading of employees‟ skills is important, top management team

in this organization are friendly and approachable, members of the management team are

always available when their help and support is needed by the employees, managers show

appreciation for employees‟ hard work and that the management of the company ensures

that there is effective communications, teambuilding, conflict resolution, coaching, and

mentoring.

36

5.3 Conclusion

Today it becomes necessary for every organization to have full level of its employee

commitment in order to have outstanding performance on long term basis. Currently

employees act like entrepreneurs when they work in a team and every member of the

team tries his level best to prove the best amongst all others. Those things increase their

commitment level in the organization that ultimately increases the performance of the

organization. Highly committed employees are the destiny of an organization. Therefore

it is the need of the time to be watchful of their perceptions regarding their satisfaction,

organizational citizenship behavior and physical environment of the organization. The

study revealed that employee commitment depended on several factors that the

organization needs to consider in order to ensure higher company performance. Many of

respondents consider rewards and benefits, career development,, training and

development opportunities and the management style to be very important for the

organizational commitment. These factors were leading in their commitment.

The results show a positive signal of the employees revealing the commitment and

attachment of employees to the organization. The study also found that the company

employees are enthusiastic in reflecting their commitment in their work environment to

render maximum productivity to their organization. The commitment of the employees is

also emphasized through their affective commitment to their organizational goals. The

company has to ensure that the commitment level of employees based on the above

discussed, should be analyzed to the extent of its attachment in the organization and

necessary continuous action to increase and maintain the commitment of the employees

should be ensured.

5.4 Recommendations

The study established that employee commitment to the company was influenced by

existence of training and development opportunities and it is therefore recommended that

the company should increase employee training in order to not only support the growth

and development of their employees, but conversely, creating and facilitating increased

37

organisational output. In the main, this is likely to lead to the actualization of

organizational objectives and ensure competitive advantage over its competitors. At the

same time employees will interpret training as an indicative of commitment from the

organization to them, and which they may reciprocate through their committed to the

organization

Opportunities for career growth and development were found in this study to be a strong

driving force of the employees‟ commitment to the company. It is thus essential that the

managers in the company provide all the employees with equal opportunity to grow and

develop as equal opportunities will give the employees stimulated and ensure that they

have something to strive for. It is also recommended that the company invest in their

human capital through constant training and development, since this will empower

employees and enhance their sense of attachment to the business.

The study established that leadership skills influence employee commitment in the

company and it is recommended that the company leadership should have strong

leadership skills through continuance learning of new methods and to keep up with the

changes in the environment in order to ensure commitment of the employees. The leaders

should display a consultative and participative leadership style which entails treating all

employees with respect, trusting them to do their work, listening to the opinions of the

employees, and encouraging employees to learn from their mistakes through training and

by guiding them in the right direction. For one to be committed, it is essential that one‟s

values are aligned with those of the company as employees who identify with the

business they work for will experience a greater sense of attachment to the business. It is

therefore recommended that the company leadership explicitly communicate the goals,

vision and future direction of the company to the employees.

38

5.5 Limitations to the Study

Despite the research having met its objectives, there were challenges that were

experienced by the researcher. Since this researcher was a case study carried out within

the working culture and environment of Nation Media Group, perhaps a survey of other

media houses should be undertaken to get a much representative results. Other media

houses may therefore have different cultures, structures, competencies and resource

capabilities and hence display different reactions to employee commitment.

5.6 Suggestions for Further Research

The overall findings of this research can be used to give hints and suggestions on the

directions for future research. Future researchers should undertake a similar study on all

the media companies in Kenya to allow the results to be generalized. Future researchers

should also consider investigating impacts of labor turnover on the performance of the

media companies.

39

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APPENDIX I: QUESTIONNAIRE

Please give answers in the spaces provided and tick ( ) in the box that matches your

response to the questions where applicable.

Section A: Demographic Characteristics of Respondents

1. Gender: Male ( ) Female ( )

2. What is your age bracket? (Tick as applicable)

a) Under 30 years ( )

b) 31 – 40 years ( )

c) 41 – 50 years ( )

d) Over 50 years ( )

3. What is your highest level of education qualification?

a) Post graduate level ( )

b) University ( )

c) Tertiary College ( )

d) Secondary ( )

4. Length of working service with the company?

a) Less than five years ( )

b) 5-10 years ( )

c) Over 10 years ( )

5. Which of the following describes your current position in the bank?

a) Top level management ( )

b) Lower level ( )

46

Section B: Employee Commitment

6. To what extent do you agree with the following regarding your commitment to the

company? Use 1- Strongly disagree, 2-Disagree, 3-Moderately agree, 4- Agree, 5-

Strongly agree

Employee Commitment 1 2 3 4 5

I enjoy working with this company

I am proud to tell others that I am part of this company

I am glad that I choose this company to work for

I work for this company because there are many opportunities for

advancement

I work for this company because I cannot find a better one

I work for this company because I do not want to lose my benefits

(eg retirement benefit)

I cannot quit this job because I have to support my family

I consider it my commitment to work for the same company until I

retire.

I would like lifetime employment with this company.

I would do any job as long as I work here.

I never thought to leave this organization even the condition of this

company is not stable for this moment

47

Section C: Factors Influencing Employee Commitment

7. To what extent do rewards and benefits influence your commitment to the company?

Use 1-Very low extent, 2-Low extent, 3-Moderate extent, 4- Great extent, 5- Very

great extent

Rewards and Benefits 1 2 3 4 5

Wages and salary paid encourages employees stay in the company

There is job security which encourages employees to remain in the

company

I am satisfied with the number of Annual Leave days given by my

company.

The rewards offered to employees commensurate work done hence job

satisfaction

I am satisfied with the Group Personal Accident insurance plan.

The rewards offered to me are comparable with what the market offers

I am satisfied with the educational subsidies given by my company.

In the company there is satisfactory performance appraisals

I am satisfied with the number of Sick Leave days given by my

company.

I am satisfied with the number of Maternity Leave/Paternity Leave

days given by my company

I am satisfied with the Hospitalization and Surgical Insurance plan.

48

8. To what extent do career developments influence your commitment to the company?

Use 1- Very low extent, 2-Low extent, 3-Moderate extent, 4- Great extent, 5- Very

great extent

Career Developments 1 2 3 4 5

Career development benefits my employer

Career development benefits me

Career Development will improve my personal growth

Career development will improve my job performance

Career development will improve my job

Career development will further motivate me

Career development is important because of the beneficial outcomes

Career development will improve my career prospects

Career development is important because of the changing nature of

my work

My company rewards me for professional development

9. To what extent do training and development opportunities influence your commitment

to the company? Use 1-Very low extent, 2-Low extent, 3-Moderate extent, 4- Great

extent, 5- Very great extent

Training and Development Opportunities 1 2 3 4 5

The company employees receive training and development in

workplace skills in regular on a regular basis

This company is providing me with job specific training

Sufficient time is allocated for product and solution training

Sufficient money is allocated for product and solution training

I have the opportunity to be involved in activities that promote my

professional development

Training and development plans are developed and monitored for all

employees

49

Training and development programs are consistently evaluated

The company releases employees from regular work to attend

training and even sponsor them where possible

There is a well-organized training program in the company

10. To what extent do management styles influence your commitment to the company?

Use 1-Very low extent, 2-Low extent, 3-Moderate extent, 4- Great extent, 5- Very

great extent

Management Styles 1 2 3 4 5

The top management team in this organization are friendly and

approachable

The top management members in this organization try to make

employees‟ job more pleasant

The management treats all employees as equals

Members of the management team are always available when their

help

and support is needed by the employees

The management looks out for the welfare of employees

The management of the company believes that continual training and

upgrading of employees‟ skills is important

The management stimulates the development of skills among

employees

My supervisor looks for opportunities to praise positive employee

performance, both privately and in front of others

The management of the company ensures that there is effective

communications, teambuilding, conflict resolution, coaching, and

mentoring

Managers show appreciation for employees‟ hard work