THE EFFECT OF ORGANIZATIONAL COMMITMENT ON EMPLOYEE PERFORMANCE; THE CASE OF LUNA EXPORT SLAUGHTERHOUSE PLC

Abstract

Nowadays companies want to make sure that they have strong resources that can face the rapid changes in the environment. One of the most important resources is human resources. The interest of the companies to have committed employees have been increased because there is a big difference between the performance of committed employees and the rest of the employees. Committed employees perform well in the organization and help the organization to grow and face the competitive environment. The main objective of this research was to investigate the effect of organizational commitment on employee performance in the case of Luna Export slaughterhouse PLC in Addis Ababa, Ethiopia. As a result, 203 questionnaires were collected from Luna Export Slaughterhouse PLC employees. The collected data was encoded and analyzed using Statistical Package for Social Science (SPSS) computer software program version 20. Based on the result found affective, normative, and continual commitment are positively related to employee performance separately and jointly. In addition, affective commitment (β=0.663) was found to have more strong effect on employee performance than continuous commitment (β=0.189) and normative commitment (β=0.180). This study found that three elements of organizational commitment are essential factors in the improvement of the performance of Luna Export and Slaughterhouse PLC employees. The results show that dimensions of organizational commitment independently and jointly influence the employees’ performance. It means that employees are willing to devote themselves and stay in the organization to accomplish their objectives. An important implication of the study is that the management should focus on improving their organizational commitment to enhance job performance and also should speak with employees on a one-on-one in a regular basis to learn about their concerns.