The importance of employee commitment on organization performance in paper manufacturing industry

Lee, Chian Chin (2019) The importance of employee commitment on organization performance in paper manufacturing industry. Project Report. Universiti Teknikal Malaysia Melaka, Melaka, Malaysia. (Submitted)

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Abstract

Employee commitment always plays a very key role in improving the organizational performance .But the organization performance has been found declining and fluctuation changes from time to time . Therefore, awareness on issues related to employees‟ job performance is getting concern from other researchers due to lack of previous studies done for it. The purpose of this study was to identify the importance of employee commitment on organization performance in paper manufacturing industry in Cheng , Melaka . The main objective of this research was to determine the relationship among affective commitment , normative commitment and continuance commitment towards the organization performance. This research was vital because it will help organizations in the manufacturing industry gain insight into the importance of employee. The quantitative survey research design was applied in this study and data was collected by using questionnaires as research instrument. The five-point Likert rating scale had been used to measure the level of influence of each element in the questionnaire. The data were analyzed using various statistical techniques such as Statistical Package of Social Science (SPSS), descriptive statistic , Pearson Correlation and multiple regression . The results of the study indicate that affective commitment and continuance commitment were significantly related to organizational performance in paper manufacturing industry while normative commitment had no significance relationship toward organization performance. The research findings reveal that there is a positive relationship between the three commitments and organizational performance. The results also showed that there is a strong correlation between the three independent variables and organizational performance. These results in turn are associated with guiding the top management for working towards increasing employees‟ commitment level. Some of the recommendations made are that: the management should hire employees who are likely to become linked to the organization; management should create clear and realistic job and organizational previews. This will lead the organization towards promising competitive edge.

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