Abstract

Presently, no organization can perform at peak levels unless each employee is committed to the organizations objectives. Hence, it is important to understand the concept of commitment and its feasible outcome. The employees in sugar industry play decisive role in transferring the theory to practical in order to enhance development of industry.  The objective of this study was to determine the effects of employee commitment on performance of organization based on a case study of Arjo Didessa Sugar Factory. To attain this, the study determined factors that affect employee commitment in the study area and also attempted to identify the relationship and their effect between employees’ commitment, and factors affecting employee’s commitment, as well as the relationship and their effect between employees’ commitment models and organizational performance at Arjo Didessa Sugar Factory. The research is a cross-sectional study. 261 employees and four management members were selected as sample of the study. Standardized questionnaires were distributed, filled, and collected. Statistical package for social sciences (SPSS) was used to process and analyze the data collected from the respondents through correlation; and regression analyses were performed to determine the association between dependent and independent variables. Additionally, employees’ commitments were found to have effects on the organizational performance in the study area. Based on the regression results, employees’ commitments models have effects on performances for the organization at Arjo Didessa Sugar Factory. Thus, recommendations have been provided to increase commitment by designing motivational package, and establishing sustainable regular training program in the company.

Key words: Employee’s commitment, organizational performance, motivation, training and development.