- Title
- Organisational commitment in the automotive industry : a comparative study of employment contracts
- Creator
- Bailey, Peter John
- Subject
- Organizational commitment
- Subject
- Employee motivation -- South Africa
- Subject
- Automobile industry and trade -- Management
- Subject
- Management -- Employee participation -- South Africa
- Subject
- Labor contracts -- South Africa
- Date Issued
- 2013
- Date
- 2013
- Type
- Thesis
- Type
- Masters
- Type
- MCom
- Identifier
- vital:9299
- Identifier
- 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.
- Format
- xvi, 198 leaves
- Format
- Publisher
- Nelson Mandela Metropolitan University
- Publisher
- Faculty of Business and Economic Sciences
- Language
- English
- Rights
- Nelson Mandela Metropolitan University
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