Impact of Organizational Commitment on Employee Performance A Study of Banking Sector in Mannar District, Sri Lanka

Abstract

This research paper focused on the impact of organizational commitment on employee performance in the Banking Sector in Mannar District. Organizational Commitment, Affective commitment, Continues Commitment and Normative commitment are independent variables and Employee Performance is the dependent variable for this study. A structured questionnaire survey was carried out to gather primary data from employees covering five banks of banking sector in the Mannar District. The sampling technique employed for the study was proportionate stratified simple random sampling and the sample size was 137. To determine the sample size researcher, referred to the Krejcie & Morgan Table. Data were analyzed by using SPSS 23 version. The findings revealed that the correlation analysis indicated there was strong positive relationship between Affective Commitment and Employee Performance, weak positive relationship between Normative Commitment and Employee Performance and moderate positive relationship between Continuance Commitment and Employee Performance. The results of the regression analysis indicated that affective commitment had a significant strong positive impact on Employee Performance and Continuance Commitment had significant moderate positive impact on Employee Performance, while Normative Commitment had a non-significant but weak positive impact on Employee Performance which is not supported to the study. But relating to both correlation analysis and multiple regression analysis, the Organizational Commitment as a composite measure shows a positive, moderate relationship with Employee Performance, highlighting the significantly positive impact between overall commitment and employee performance. Furthermore, R2 indicated that 90% variance of Employee Performance was explained by the suggested research model. These findings will be helpful for all levels of managers, owners and policy makers to identify the main attributes that should be implemented in the organizations to enhance employee performance