In Selected Commercial Effect of Employee Commitment and Organization Performance Banks in Uasin Gishu County, Eldoret, Kenya

Abstract

In recent years, it has become necessary for every organization to have control of its employee commitment in order to have outstanding performance on long term basis. Management fail to understand why some employees are not committed to the organization even though they have proactively implemented fair compensation policies and human resource (HR) practices to motivate and retain them. Therefore, the main purpose of the study was to determine the effect of employee commitment and organization performance in selected commercial banks, in Uasin-Gishu County, Eldoret, Kenya. Explanatory research design was used in this study. The target population was 748 employees drawn from 25 commercial banks within Eldoret town and a sample size of 261 was selected. The study used stratified sampling technique to select the employees where a respondent was picked from. The study used questionnaires as a tool for data collection. The study findings showed that affective commitment Continuance commitment and normative commitment has a positive and significant effect on organization performance. The study concludes that employee commitment is determinant for firm performance which can be further enhanced by incentives. Thus, there is need for the organization to ensure that employees feel as though they are valued so that they can form a positive perception towards the organization. It is also advisable for employees to remain committed to an organization that has a conducive environment for the purpose of career advancement. Furthermore; more research is needed in this subject area to fully establish the effect of affective commitment, continuance commitment and normative commitment since employees were undecided on a number of factors.