Home Project-material DEMOGRAPHIC AND ORGANISATIONAL ANTECEDENTS OF COMMITMENT AMONG SME EMPLOYEES IN IMO STATE NIGERIA

DEMOGRAPHIC AND ORGANISATIONAL ANTECEDENTS OF COMMITMENT AMONG SME EMPLOYEES IN IMO STATE NIGERIA

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Abstract

The study examined some demographic (gender, age, length of service, educational qualification and marital status) and organisational (level of job tension and perceived job characteristics) antecedents of commitment among employees of fourteen SMEs in Imo State of Nigeria. A total of 174 participants, comprising of 117 females and 57 males, aged between 18 – 40 years with a mean age of 24.99 years and SD of 4.56 were administered with three instruments: Kahn, Wolfe, Quinn and Snoek’s (1964) Job-related Tension Inventory; Hackman and Oldman’s (1975) Job Characteristics Scale and Meyer, Allen and Smith’s (1993) three dimensional Organisational Commitment Questionnaire adapted by Gbadamosi (2006). A One-Way MANOVA was used to analyse data collected. Results indicated that, employees did not significantly differ in their levels of job tension on the three dimensions of organisational commitment (F = 3.357, P> 0.05; F = 0.292, P > 0.05; F = 0.200, P > 0.05). Also, employe
1.0 INTRODUCTION

Previous and more recent studies show that high levels of organisational

commitment (OC) is a catalyst to decreased turnover, increases in

productivity, performance, retention and job satisfaction (Steers, 1977; Angle

& Perry, 1981; Mowday, Porter & Steers 1982; Mathieu & Zajac, 1990; Meyer,

Allen & Smith, 1993; Abdullah, Shuib, Muhammad, Khalid, Nor & Jauhar,

2007). As a result, several researchers have increasingly tried to identify

antecedents that determine employee commitment. This is because for

researchers to alter commitment, they have to understand its antecedents.

One area where commitment studies have been relatively spares is in the

Small and Medium Scale Enterprises sectors. In the last two decades,

government and non-governmental agencies have given a lot of emphasis on

the development of Small and Medium Enterprises (SMEs) in Nigeria (Sansui,

2003). Various programs and facilities have and are still being provided to

increase the performance of SMEs. The activities of government in this area,

within the last nine years of democratic experience, have offered SMEs viable

opportunities for growth. In further response to these efforts, investors are

springing up in this sector, with Nigeria experiencing more and more

investments in SME (Ukaegbu, 2005).

However, it should be recognised that dependence on these efforts alone have

not guaranteed the success of Nigerian SMEs. SME employee’s attitude and

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psychological attachment towards their organisations’ goals are among recent

factors that have been identified that could contribute to the growth or

decline of their organisation (Abdullah, Shuib, Muhammad, Khalid, Nor &

Jauhar, 2007).

Usually, SMEs are used as stepping-stones by unskilled or semi-skilled

employees to gain experience or additional experience before moving on to

bigger and better firms. These unskilled and semi-skilled employees, most

times, form the fulcrum of growth in SMEs. As a result, SMEs suffer due to the

loss of human assets, who become skilled on the job and could have

contributed better to improve the firms’ productivity in the long run.

The dire need to retain and encourage commitment of employees in this

sector is therefore imminent; as such efforts would not only improve the

growth of Nigerian SMEs but would ensure that the target for which

government has placed so much emphasis on SME is achieved. One way to

achieve this is by identifying the factors that determine the organisational

commitment of SME employees. For ease of discussion, the antecedents of

employees’ organisational commitment focused on in this study would be

divided into two broad categories: demographic characteristics and

organisational characteristics.

Amongst some identified demographic characteristics that could predict

employee commitment are; age, educational level, gender, job grade-level, job

tenure, family life cycle status (made up of marital status; number of children;

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age of youngest and oldest child; and number of children living at home),

salary, and alternative job opportunities (Camilleri, 2002).

Age and tenure are believed to be demographic characteristics, which are

positively correlated with commitment. As employees get older and remain in

their organisations, their commitment increases, probably because alternative

employment opportunities diminish for older people or because commitment

may be a successful strategy in getting along. Or it may be, quite simply, that

more committed employees’ stay with the organisation longer.

Higher education is however associated with lower commitment, perhaps

because educated people have expectations which their organisations cannot

meet or are more committed to their professions (professional bodies) than to

organisations. It may also be that alternative work opportunities are greater.

Also, employees with lower educational level have been shown to have higher

continuance OC while those with high educational level appear to feel less

obligated to remain with the organisation. This could be because employees

with higher educational qualification will tend to have greater expectations

than the organisation may offer thus they become less committed.

Women are usually more committed than men to their organisations, possibly

because they have to overcome more barriers to getting into those

organisations or because fewer alternatives are available to them.

The marital status of an employee is believed to have a positive influence on

organisational commitment. This could be because married employees with

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dependent children are most times the breadwinners of their families; hence

they have more personal responsibilities and greater financial burdens than

their single counterparts. As a result, they are inclined not to risk leaving their

organisation.

Organisational characteristics include aspects of the task (e.g., skill variety,

task autonomy) the employee is engaged in, the degree to which the job is

interesting to the incumbent (e.g., job challenge and scope) and the degree to

which the job is defined and is under the control of the incumbent (e.g., role

conflict and role ambiguity) (Beck & Wilson, 1998). Several organisational

characteristics are correlated with commitment. Broad Job roles are positively

associated with commitment, perhaps because broad jobs challenge people

more than narrow jobs or because people with broader jobs (e.g. managers

and the like) often have already demonstrated their commitment, which is

why they have been given the broader jobs (Hahn, 2007). Role conflict and

role overload are negatively associated with commitment; role ambiguity

have mixed association (Lee & Schuler, 1982; Smith & Brannick, 1990). Thus,

when people have broad and clear jobs, commitment may increase, but if their

jobs are ambiguous, commitment decreases.

According to Steers (1977), there are three groups of antecedents, which act

as variables determining the level of commitment a worker will have towards

the workplace. The first group are demographic characteristics. Demographic

characteristics are factors that define the worker, and they include age,

opportunities for achievement, education, and role tension. The second group

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are the characteristics of the job and includes challenge, social interaction, and

feedback. The last group specify the importance of work experience, as work

experience is viewed “as a major socialising force and as such represents an

important influence on the extent to which psychological attachments are

formed with the organisation” (Steers 1977), these include group attitudes,

organisation dependability and trust, levels of personal investment, feelings of

personal importance to the organisation, and the expectations of rewards.

Over the years these antecedent factors have been validated by various

researchers (Grusky 1966; Mowday, Porter & Steers 1982; Meyer & Allen

1997; Camilleri 2002).

1.2 Employee Commitment

Literature defines commitment as an employee’s level of attachment to some

aspect of work (Rajendran & Raduan, 2005). Various authors have been

instrumental in identifying different types of employee commitment as critical

constructs in understanding attitudes and behaviours of employees in an

organisation. Meyer and Lynne (2001) identified more than 25 employee

commitment concepts and measures. They further group commitment into

three foci; commitment to work/job, commitment to career/profession and

commitment to organisation.

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Figure 1.1: Typology of Employee Commitment (Source: Mayer & Lynne,

2001)

Work commitment refers neither to commitment to the organisation nor to

ones career, but to employment itself (Baruch, 1998; Hagen & Nelson, 2001).

Employees who are committed to their work hold a strong sense of duty

towards their work and place intrinsic value on work as a central life interest

(Mottaz, 1988; Saros & Santora, 2001).

On the other hand, career commitment refers to identification with, and

involvement in ones occupation. It is similar in conceptualization to

occupational commitment (Mellor, Mathieu, Farell & Rogelberg, 2001).

Employees who are high in career commitment tend to be committed to their

career or occupation rather than to the organisation of which the employee is

a part of.

Organisational commitment forms a subset of employee commitment. It is the

willingness of employees to accept organisational values, and goals, and to

Employee Commitment

Organisational

Commitment

Career/Professional

Commitment

Work/Job

Commitment

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work towards achieving these; to be fully involved, and participate, in all the

activities, both work and non-work related, of the organisation; and to

dedicate time, and effort, towards the betterment of the organisation

(Herscovitch & Mayer, 2002; Rajendran & Raduan, 2005). The committed

employee, for example, is less absent, and is less likely to leave the

organisation voluntarily, than are less committed employees (Herscovitch &

Mayer, 2002).

For the purpose of this study, Commitment is defined as “a force that binds an

individual towards a course of action” (Meyer & Herscovitch, 2001). In the

case of employees in the Nigerian SME sector, commitment keeps them with

the organisation, irrespective of other openings available to them as a result of

the skill they have acquired. The concept of commitment is relevant because

commitment influences behaviours independently of other motives and

attitudes and, in fact, can lead to persistence in a course of action even in the

face of conflicting motives or attitudes. Commitment, for instance, can lead

individuals to behave in ways that, from the perspective of neutral observers,

might seem contrary to their self-interest.

1.3 Organisational Commitment and Demographic Characteristics

Demographic characteristics refer to those unique, individual factors, which

determine the attitude of an employee towards his or her job. Some

demographic characteristics that determine organisational commitment

include demographic variables such as age, educational level, gender, job

grade-level, job tenure, family life cycle status (made up of marital status;

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number of children; age of youngest and oldest child; and number of children

living at home), salary, and alternative job opportunities (Camilleri, 2002).

Most researchers agree that these variables do influence organisational

commitment of employees. There are however divergent views as to whether

most of the identified demographic characterises negatively or positively

affect organisational commitment of employees. Also, most of these studies

have been western oriented and focused on large organisations. There is

therefore need to evaluate the generalizability of these finding in Nigeria and

in small and medium sized organisations.

1.4 Organisational Antecedents of Commitment

Organisational Characteristics in the context of this study refer to those job

specific factors inherent in the job that could result in reducing or increasing

employee’s organisational commitment. These characteristics include aspects

of the task (e.g., skill variety, task autonomy) the employee is engaged in, the

degree to which the job is interesting to the incumbent (e.g., job challenge and

scope) and the degree to which the job is defined and is under the control of

the incumbent (e.g., role conflict and role ambiguity) (Beck & Wilson, 1998).

In this study, organisational characteristics encompass two broad dimensions;

job characteristics and role tension.

Job characteristics were defined comprehensively by Hackman & Oldham

(1976) who argued that to enhance employee motivation the job must have

five core characteristics i.e. skill variety, task significance, task identity,

autonomy and feedback. Researchers have attempted to examine relationship

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between job characteristics and different variables including organisational

commitment. To raise job satisfaction (and organisational commitment)

among their employees, managers need to reduce the gap between the

importance and likelihood values for job characteristics that involve the

acquisition of skills (Linz, 2003). There are various dimensions of job

characteristics and their importance in the Human Resource Management is

well established.

1.5 Statement of the Problem

Small and Medium Enterprises (SMEs) are springing up at an alarming rate in

Nigeria. Their role towards the growth of Nigeria’s economy cannot be

underestimated. For this reason, government and non-governmental agencies

have, in the last two decades, increased awareness and support given to

entrepreneurs to invest in SMEs (Sanusi, 2003). Such investments by Nigerian

SMEs have continued to increase with these SMEs employing more and more

hitherto unemployed Nigerians. It is believed that SMEs employ over 58% of

the global working population and contribute over 30% to the global Gross

Domestic Product (GDP) (NigerianBusinessInfo, 2006). Moreover, SMEs have

continued to face severe constraints in Nigeria. The main identified

constraints are poor funding (NigerianBusinessInfo, 2006) and inadequate

managerial skills (Sanusi, 2003). These reasons contribute to the alarming

rate at which SMEs become moribund.

However, there may be more unidentified constraints than has been

attributed to poor financing and inadequate management skills. One of these

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unidentified constraints is the low level of organisational commitment among

SME employee. Employees in SMEs use such organisations as stepping-stones

because they are unskilled or semi-skilled. So, when these employees gain

experience or additional experience, they move on to bigger and better firms.

Also, since employees form the fulcrum of the daily organisational activity,

thereby determining the upswing in business activity and consequently, the

success of the organisation depends, to a large extent, on their high level

commitment which in the case of Nigerian SMEs is doubtful.

Furthermore, SME employees’ commitment may not only be as a result of the

organisation type. Demographic characteristics such as age, educational level,

gender, job grade-level, job tenure, family life cycle status (made up of marital

status; number of children; age of youngest and oldest child; and number of

children living at home), salary, and alternative job opportunities influence

their level of commitment. Also, the inherent organisational characteristics of

the job such as aspects of the task (e.g., skill variety, task autonomy) the

employee is engaged in, the degree to which the job is interesting to the

incumbent (e.g., job challenge and scope) and the degree to which the job is

defined and is under the control of the incumbent (e.g., role conflict and role

ambiguity) could also be influencing the low level of commitment among SME

employees.

1.6 Significance of the Study

Theoretically, this study added to the body of knowledge on the general

subject of employee commitment. From a practical point of view, this study

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would be of immense benefits to SMEs in Nigeria. In that it would provide

them with ample evidence on the organisational commitment level of SME

employees.

Also, the study would provide government and non-governmental agencies

with crucial data on factors, other than poor financial and inadequate

managerial skills that could result in reduced expansion of the SME sector.

1.7 Objective of the Study

The objectives of this study were:

1. To identify whether SME employees’ level of organisational commitment

(on three dimensions) is inversely related to their level of job-related

tension.

2. To access whether SME employees’ level of organisational commitment

will be different from their perceived level of job characteristics.

3. To find out whether older employees were different on the three

dimensions of organisational commitment than their younger

counterparts.

4. To identify if female employees will be different on the three dimensions

of organisational commitment than their male counterparts.

5. To confirm whether SME employee’s differ on the three dimensions of

organisational commitment based on length of service

6. To access whether the three dimensions of organisational commitment

differs among employees of different level of educational qualification

7. To identify if married SME employees differs on the three dimensions of

organisational commitment from their single counterparts.

Thus the conceptual model of the study:

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Figure 1.2: Conceptual model of the study

Job-Related Tension:

? Role Conflict

? Role Ambiguity

Organisational

Commitment:

? Affective commitment

? Normative Commitment

? Continuance Commitment

Demographic

Characteristics:

? Age

? Gender

? Tenure

? Educational Level

? Marital Status

Organisational

Characteristics

Perceived Job

Characteristics:

? Skill variety

? Task identity

? Task significance

? Autonomy

? Feedback from the job,

? Feedback from agents

? Dealing with others


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