Organisational commitment in the automotive industry : a comparative study of employment contracts
- Authors: Bailey, Peter John
- Date: 2013
- Subjects: Organizational commitment , Employee motivation -- South Africa , Automobile industry and trade -- Management , Management -- Employee participation -- South Africa , Labor contracts -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9299 , http://hdl.handle.net/10948/d1014664
- Description: Organisations face many obstacles in maintaining high quality standards and enhancing their competitive positions. It is not just the external factors, such as market fluctuations, but also internal obstacles, that have an effect on the competitiveness of organisations. Most of the internal factors are the result of poor management practices such as insufficient employee development paths, lack of mentorship programmes or job insecurity which results in the poor performance and commitment levels of employees. However employees are more willing to provide efficient and effective practices if they are committed to the organisation. A committed workforce can be created through many practices. Some of these practices include, creating an environment where employees feel as though they are part of the organisation and that their actions directly influence the success of the organisation (Kingston 2007); building long lasting and fair relationships between staff and supervisors (Manetje 2009:50); providing partial organisational ownership for employees through employee share ownership schemes (Employee share ownership plan guidelines 2007:3); creating an organisation structure which binds employees and groups together and removes bureaucratic practices (Brooks 2009:190) and creating management styles that encourage employee involvement (Manetje 2009:51) Unfavourable conditions within the economy are not making it any easier for organisations to become more competitive. Organisations have had to downsize, restructure and transform in order to cut costs as the demands for goods and services slowed down. However, these practices have resulted in an insecure work environment for employees and have posed complex challenges for management. (Coetzee 2005). Employment contracts have therefore become popular tools for managing economic downturns. Organisations opt for more temporary staff so as to easily reduce headcount when costs need to be lowered. Employment contracts give organisations the advantage of flexibility which is a key area for success in turbulent business environments (Krausz, Bizman & Braslavsky 2001:302). Previous research on temporary contracts has revealed lower commitment levels of staff than other types of contracts such as permanent and fixed-term contracts (Guest 2004:12). Therefore, there needs to be a balance between various employment contracts; a balance which brings out the best in organisational performance. The different types of employment contracts are also important tools to use to enhance commitment within the organisation. For that reason, it is essential to understand the linkage between the types of contracts and organisational commitment and whether certain contracts result in higher levels of organisational commitment. The primary objective of the study is to identify factors which influence organisational commitment as well as to investigate whether organisational commitment and the different types of employment contracts can increase employee motivation and job involvement within the automotive industry environment. Given the primary objective of the study, a quantitative research paradigm was followed in testing the relevant hypotheses. A five-point Likert scale questionnaire was conducted to gather empirical data from the respondents employed within the automotive industry. The target population of the study was the employees within the automotive industry (Volkswagen of South Africa). A convenience sampling technique was used to distribute the questionnaires and the researcher made use of both manual hand-outs and an online system called the Survey Monkey to gather the data. The sample was restricted to 260 respondents. The main findings of this study revealed that the dimensions, workplace culture, job security, career development and personality were statistically significant and had a positive influence on organisational commitment. Workplace culture proved to be the most significant positive influence on organisational commitment. Thus, if an organisation adjusts this dimension to better suit the employees, the result could be an enhanced level of employee commitment. On the other hand, management style and mentoring were found to be the least important in influencing organisational commitment in the automotive industry. Furthermore, the results illustrated a significant positive relationship between organisational commitment and the dependent variables, employee motivation and job involvement. The study also identified the link between employment contracts and organisational commitment, job involvement and employee motivation. However, a statistically significant relationship only existed between employment contracts and job involvement. Thus the different types of contracts have an effect on the level of employee involvement within an organisation. The implications of the findings are that organisations within the automotive industry should focus on areas that have a substantially greater impact on organisational commitment. These areas include workplace culture, job security, personality and career development. Organisations thus need to find methods or processes which facilitate the development of these areas. In order for organisations to move from good to great, a workforce that is committed to the goals and objectives is required.
- Full Text:
- Date Issued: 2013
- Authors: Bailey, Peter John
- Date: 2013
- Subjects: Organizational commitment , Employee motivation -- South Africa , Automobile industry and trade -- Management , Management -- Employee participation -- South Africa , Labor contracts -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9299 , http://hdl.handle.net/10948/d1014664
- Description: Organisations face many obstacles in maintaining high quality standards and enhancing their competitive positions. It is not just the external factors, such as market fluctuations, but also internal obstacles, that have an effect on the competitiveness of organisations. Most of the internal factors are the result of poor management practices such as insufficient employee development paths, lack of mentorship programmes or job insecurity which results in the poor performance and commitment levels of employees. However employees are more willing to provide efficient and effective practices if they are committed to the organisation. A committed workforce can be created through many practices. Some of these practices include, creating an environment where employees feel as though they are part of the organisation and that their actions directly influence the success of the organisation (Kingston 2007); building long lasting and fair relationships between staff and supervisors (Manetje 2009:50); providing partial organisational ownership for employees through employee share ownership schemes (Employee share ownership plan guidelines 2007:3); creating an organisation structure which binds employees and groups together and removes bureaucratic practices (Brooks 2009:190) and creating management styles that encourage employee involvement (Manetje 2009:51) Unfavourable conditions within the economy are not making it any easier for organisations to become more competitive. Organisations have had to downsize, restructure and transform in order to cut costs as the demands for goods and services slowed down. However, these practices have resulted in an insecure work environment for employees and have posed complex challenges for management. (Coetzee 2005). Employment contracts have therefore become popular tools for managing economic downturns. Organisations opt for more temporary staff so as to easily reduce headcount when costs need to be lowered. Employment contracts give organisations the advantage of flexibility which is a key area for success in turbulent business environments (Krausz, Bizman & Braslavsky 2001:302). Previous research on temporary contracts has revealed lower commitment levels of staff than other types of contracts such as permanent and fixed-term contracts (Guest 2004:12). Therefore, there needs to be a balance between various employment contracts; a balance which brings out the best in organisational performance. The different types of employment contracts are also important tools to use to enhance commitment within the organisation. For that reason, it is essential to understand the linkage between the types of contracts and organisational commitment and whether certain contracts result in higher levels of organisational commitment. The primary objective of the study is to identify factors which influence organisational commitment as well as to investigate whether organisational commitment and the different types of employment contracts can increase employee motivation and job involvement within the automotive industry environment. Given the primary objective of the study, a quantitative research paradigm was followed in testing the relevant hypotheses. A five-point Likert scale questionnaire was conducted to gather empirical data from the respondents employed within the automotive industry. The target population of the study was the employees within the automotive industry (Volkswagen of South Africa). A convenience sampling technique was used to distribute the questionnaires and the researcher made use of both manual hand-outs and an online system called the Survey Monkey to gather the data. The sample was restricted to 260 respondents. The main findings of this study revealed that the dimensions, workplace culture, job security, career development and personality were statistically significant and had a positive influence on organisational commitment. Workplace culture proved to be the most significant positive influence on organisational commitment. Thus, if an organisation adjusts this dimension to better suit the employees, the result could be an enhanced level of employee commitment. On the other hand, management style and mentoring were found to be the least important in influencing organisational commitment in the automotive industry. Furthermore, the results illustrated a significant positive relationship between organisational commitment and the dependent variables, employee motivation and job involvement. The study also identified the link between employment contracts and organisational commitment, job involvement and employee motivation. However, a statistically significant relationship only existed between employment contracts and job involvement. Thus the different types of contracts have an effect on the level of employee involvement within an organisation. The implications of the findings are that organisations within the automotive industry should focus on areas that have a substantially greater impact on organisational commitment. These areas include workplace culture, job security, personality and career development. Organisations thus need to find methods or processes which facilitate the development of these areas. In order for organisations to move from good to great, a workforce that is committed to the goals and objectives is required.
- Full Text:
- Date Issued: 2013
The influence of contemporary leadership styles on the job satisfaction and organisational commitment of SME employees
- Authors: Kupangwa, Welcome
- Date: 2015
- Subjects: Leadership , Job satisfaction , Organizational commitment , Business enterprises -- Employees
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9013 , http://hdl.handle.net/10948/d1018508
- Description: Small and medium-sized enterprises (SMEs) have the potential to enhance economic growth and innovation, create jobs, assist large businesses in the distribution of goods and services, and stimulate competition in the economy. However, SMEs face several challenges that influence their longevity, growth, and success. Poor leadership has been highlighted as influencing the job satisfaction and organisational commitment levels of employees, ultimately contributing to employee turnover and SME failure. This study mentions the dishonest, selfish and corrupt nature of modern leadership and identifies a gap in the literature regarding the practice of leadership, especially among South African SMEs. Against this background, the primary objective of this study was to assess the levels of several contemporary leadership styles displayed by SME owners, namely Servant, Authentic, Ethical and Participative leadership, and to investigate their influence on the Job satisfaction and Organisational commitment levels of employees working in SMEs in the Eastern Cape. A quantitative research paradigm was adopted and a sample was drawn from employees working in SMEs in the Eastern Cape Province. The selection of the sample was done using judgement and convenience sampling. A cross-sectional survey using a structured questionnaire was undertaken, and a total of 236 usable questionnaires were returned on which to undertake the statistical analysis. In order to assess the validity of the dependent variables, namely Job satisfaction and Organisational commitment, tests for uni-dimensionality (using factor analysis) were undertaken. An exploratory factor analysis (EFA) was undertaken on the independent variables and four factors were extracted, which corresponded with the theoretical dimensions of Relational leadership, Participative leadership, Servant leadership and Ethical leadership. The items intended to measure Authentic leadership did not load as expected, but a factor named Relational leadership emerged as a result of several items measuring Ethical and Servant leadership loading together. All the independent and dependent variables returned Cronbach’s alpha coefficients of greater than 0.7. As such, sufficient evidence of validity and reliability for the scales measuring the dependent and the independent variables was provided. The data collected was also subjected to several statistical analyses. These included descriptive statistics, Pearson’s product moment correlations, multiple regression analyses, and analysis of variance (ANOVA). The majority of respondents agreed that they experienced Job satisfaction in the SMEs in which they were employed and that they were committed to these businesses. Relational leadership returned the highest mean score while the lowest score was returned for Participative leadership. The majority of respondents also agreed that the SME owners for whom they worked displayed the leadership styles under investigation. All the independent variables were significantly and positively correlated with the dependent variables, Job satisfaction and Organisational commitment. In addition, significant positive correlations were reported between all the independent variables. The multiple regression analyses revealed that three of the four leadership styles investigated in this study had a significant positive influence on both the Job satisfaction and Organisational commitment levels of employees working in the SMEs. These leadership styles were Servant, Relational, and Ethical leadership. In addition, the results of this study showed that Job satisfaction mediates the relationship between Servant, Relational and Ethical leadership, and the Organisational commitment displayed by employees working in SMEs, but does not mediate the relationship between Participative leadership and Organisational commitment. The findings also showed that the demographic variables investigated in this study had no influence on how SME employees perceived the Servant and Relational leadership behaviours of SME owners. However, the results showed that female respondents perceived SME owners as displaying a Participative leadership style more so than male employees did. The findings also revealed that employees with a post-matric qualification perceived that SME owners displayed higher levels of Participative leadership than those without a post-matric qualification. In addition, the ANOVA revealed that White respondents perceived that SME owners exhibited more ethical behaviours than Black respondents did. Given the findings of this study, several recommendations were put forward to enhance the levels of Servant, Relational and Ethical leadership among SME owners, and to ultimately enhance the levels of Job satisfaction and Organisational commitment experienced by their employees. As such SME owners were provided with practical recommendations on how to attract and retain employees by adopting appropriate leadership behaviours. Employees play a vital role in achieving the goals and vision of a business. Satisfied and committed employees put more effort into ensuring the goals and vision of the business are achieved, contributing to business success and ultimately the economy as a whole.
- Full Text:
- Date Issued: 2015
- Authors: Kupangwa, Welcome
- Date: 2015
- Subjects: Leadership , Job satisfaction , Organizational commitment , Business enterprises -- Employees
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9013 , http://hdl.handle.net/10948/d1018508
- Description: Small and medium-sized enterprises (SMEs) have the potential to enhance economic growth and innovation, create jobs, assist large businesses in the distribution of goods and services, and stimulate competition in the economy. However, SMEs face several challenges that influence their longevity, growth, and success. Poor leadership has been highlighted as influencing the job satisfaction and organisational commitment levels of employees, ultimately contributing to employee turnover and SME failure. This study mentions the dishonest, selfish and corrupt nature of modern leadership and identifies a gap in the literature regarding the practice of leadership, especially among South African SMEs. Against this background, the primary objective of this study was to assess the levels of several contemporary leadership styles displayed by SME owners, namely Servant, Authentic, Ethical and Participative leadership, and to investigate their influence on the Job satisfaction and Organisational commitment levels of employees working in SMEs in the Eastern Cape. A quantitative research paradigm was adopted and a sample was drawn from employees working in SMEs in the Eastern Cape Province. The selection of the sample was done using judgement and convenience sampling. A cross-sectional survey using a structured questionnaire was undertaken, and a total of 236 usable questionnaires were returned on which to undertake the statistical analysis. In order to assess the validity of the dependent variables, namely Job satisfaction and Organisational commitment, tests for uni-dimensionality (using factor analysis) were undertaken. An exploratory factor analysis (EFA) was undertaken on the independent variables and four factors were extracted, which corresponded with the theoretical dimensions of Relational leadership, Participative leadership, Servant leadership and Ethical leadership. The items intended to measure Authentic leadership did not load as expected, but a factor named Relational leadership emerged as a result of several items measuring Ethical and Servant leadership loading together. All the independent and dependent variables returned Cronbach’s alpha coefficients of greater than 0.7. As such, sufficient evidence of validity and reliability for the scales measuring the dependent and the independent variables was provided. The data collected was also subjected to several statistical analyses. These included descriptive statistics, Pearson’s product moment correlations, multiple regression analyses, and analysis of variance (ANOVA). The majority of respondents agreed that they experienced Job satisfaction in the SMEs in which they were employed and that they were committed to these businesses. Relational leadership returned the highest mean score while the lowest score was returned for Participative leadership. The majority of respondents also agreed that the SME owners for whom they worked displayed the leadership styles under investigation. All the independent variables were significantly and positively correlated with the dependent variables, Job satisfaction and Organisational commitment. In addition, significant positive correlations were reported between all the independent variables. The multiple regression analyses revealed that three of the four leadership styles investigated in this study had a significant positive influence on both the Job satisfaction and Organisational commitment levels of employees working in the SMEs. These leadership styles were Servant, Relational, and Ethical leadership. In addition, the results of this study showed that Job satisfaction mediates the relationship between Servant, Relational and Ethical leadership, and the Organisational commitment displayed by employees working in SMEs, but does not mediate the relationship between Participative leadership and Organisational commitment. The findings also showed that the demographic variables investigated in this study had no influence on how SME employees perceived the Servant and Relational leadership behaviours of SME owners. However, the results showed that female respondents perceived SME owners as displaying a Participative leadership style more so than male employees did. The findings also revealed that employees with a post-matric qualification perceived that SME owners displayed higher levels of Participative leadership than those without a post-matric qualification. In addition, the ANOVA revealed that White respondents perceived that SME owners exhibited more ethical behaviours than Black respondents did. Given the findings of this study, several recommendations were put forward to enhance the levels of Servant, Relational and Ethical leadership among SME owners, and to ultimately enhance the levels of Job satisfaction and Organisational commitment experienced by their employees. As such SME owners were provided with practical recommendations on how to attract and retain employees by adopting appropriate leadership behaviours. Employees play a vital role in achieving the goals and vision of a business. Satisfied and committed employees put more effort into ensuring the goals and vision of the business are achieved, contributing to business success and ultimately the economy as a whole.
- Full Text:
- Date Issued: 2015
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