A study about the importance of building employee commitment and its impact on organizational performance of State Trading Organization (STO) / Aishath Mania

Abstract

Commitment of employees is one of the key factors which decide success of any organization. The aim of this paper is to examine and understand the importance of building employee commitment and the impact it has on the organizational performance of State Trading Organization (STO). For this research both descriptive and explanatory research methodologies were used. A five point and four point scaled questions and explanatory questions were used in the construction of questionnaire used in this project. The results indicated that the level of employee commitment of the staff of State Trading Organization is fairly high. Also there is a fairly higher relationship between employee turnover and employee commitment. Also I have made some recommendations to the organization about hiring employees who are likely to be linked to the organization, management is required to create clear objectives for the employees, monitor their works and reward accordingly.
Furthermore, State Trading Organization being the largest public company in Maldives, employees a large number of locals. It is said to believe that Maldivians are very committed to the organization they work for, however change the jobs very frequently. Employee turnover is very high among locals and local companies. One of the key finding in this research is that employee turnover is comparatively low in STO. The company provides several incentives to attract and retain skilled workforce, like paid leaves, company sponsored training and scholarships as well as annual bonus, Ramadan bonus. In addition to this, the company also gives sacs of onions, potatoes, tuna cans and various other important items to all the employees before the beginning of Ramadan. As per the Human Resources Director of STO, all these are aimed to increase employee commitment towards the organization to enhance the organizational perform to achieve better results.

Key words: - Organizational Performance, Commitment, Employees, Affective Commitment, Continuance commitment, Normative commitment, Employee Satisfaction.