Home   >   CSC-OpenAccess Library   >    Manuscript Information
Full Text Available

(134.46KB)
This is an Open Access publication published under CSC-OpenAccess Policy.
Publications from CSC-OpenAccess Library are being accessed from over 74 countries worldwide.
A Study on the Concept of Employee Loyalty and Engagement on the Performance of Sales Executives of Commercial Banks in GHANA
Alexander Kofi Preko, John Adjetey
Pages - 51 - 62     |    Revised - 15-05-2013     |    Published - 30-06-2013
Volume - 4   Issue - 2    |    Publication Date - May / June 2013  Table of Contents
MORE INFORMATION
KEYWORDS
Loyalty, Engagement, Performance, Human Relations, Leadership Style.
ABSTRACT
This study examines inter-correlations of employee loyalty and engagement as independent variables and how they affect the performance of sales executives employed by commercial banks. The research further conceptualises the hypotheses formulated to show their individual contributions to performance. The research aims at finding out if the sales executives are really loyal to their employers since they are recruited as contract workers who do not enjoy the same opportunities and benefits as full time workers of the banks.

The study made use of triangulation research designs (exploratory and questionnaire). A purposive sampling method was adopted to sample 50 sales executives (past and present workers) from Fidelity Bank, Eco Bank and Standard Chartered Bank. The value of Cronbach’s Alpha was calculated on employee loyalty 0.804, engagement 0.707 and employee performance 0.839 to determine the reliability and validity level of the both independent and dependent variables by using the statistical package for social science, version 20.

The findings revealed that there are significant linear correlations among employee loyalty, engagement and performance. The study also showed significant positive correlations of human relation, leadership style, job content, personal development, creativity and their effect on employee loyalty. It is recommended that management of the banks should pay attention to employee loyalty and engagement in order to meet their target performance.
CITED BY (33)  
1 Qasanah, U. (2020). The Effect of Transactional Leadership Style and Job Loyalty on Employee Performance. Psikoborneo: Scientific Journal of Psychology, 8 (1), 127-133.
2 Alfajar, N. F. (2020). The Relationship Between Loyalty and Perceived Organizational Support with Work Engagement in Service Officers of the X. Regional Police Ditlantas Office Service Journal of Psychology, 16 (1), 17-24.
3 Andini, L. (2020). The Influence of Work Period and Work Loyalty on Employee Performance at the Medan City National Land Agency Office (Doctoral dissertation, Medan Area University).
4 Hareendrakumar, V. R., Subramoniam, S., & Hussain, N. (2020). Redesigning Rewards for Improved Fairness Perception and Loyalty. Vision, 24(4), 481-495.
5 Pujiastuti, E. T., Budiarti, H. N., Sulaeman, K. A., Faturachman, D., & Setiawati, R. (2020). Influence of Leadership, Loyalty, and Followership on Team Performance of PT Gaharu Galangan International. International Journal of Marine Engineering Innovation and Research, 5(2).
6 Puspita, N., Nugroho, N., & Banun, A. (2020). The Influence of Organizational Culture and Work Engagement Over Employee Performance Mediated by Employee Loyalty. Journal of Multidisciplinary Academic, 4(5), 289-294.
7 Khan, M., Daniyal, M., & Ashraf, M. Z. (2020). The Relationship Between Monetary Incentives and Job Performance: Mediating Role of Employee Loyalty. Educational Research (IJMCER), 2(6), 12-21.
8 Gangan, A. P., & Sankar, R. (2020). Predictors of Employee Engagement Among Workers of Retail Textile Outlets in Puducherry. Journal of Rural and Industrial Development, 8(1), 1.
9 Djemiran, D. (2020). Analysis Performance of Nursing Personnel in Inpatient Room" Darmayu" Hospital Ponorogo and the factors that Influence. Journal for Quality in Public Health, 4(1), 92-95.
10 Johari, J., & Subramaniam, H. (2020). Proactive Personality, Human Resource Management Practices, and Job Performance: A Case of Banking Sector Employees in Malaysia. Journal of Business and Economic Analysis, 3(1), 5-29.
11 Rokim, M., & Tentama, F. (2020). The employee’s performance: A study of construct validity and reliability. American Scientific Research Journal for Engineering, Technology, and Sciences, 72(1), 90-100.
12 Singh, M. M., Siddiqui, I. N., Dewangan, J. K., & Shrivastava, R. (2020). A Review paper on role of Leadership in developing employee loyalty towards the organisation. International Journal of Management, Technology And Engineering, Volume X, Issue I.
13 Soni, S. (2019). Impact of Organizational Culture on Employee Engagement and Effectiveness in Indian Manufacturing Company. IITM Journal of Management and IT, 10(2), 42-52.
14 Qurrotuaini, N. I. (2019). Analysis of the Effect of Talent Management Practice on the Performance of Amil Zakat Mediated by Employee Engagement at the Yatim Mandiri Amil Zakat Institute (Doctoral dissertation, Airlangga University).
15 SEIDU, A. A. J. ASSESSING LEADER-MEMBER EXCHANGE ON EMPLOYEE PERFORMANCE IN GHANA’S BANKING SECTOR: THE ROLE OF MOTIVATION (Doctoral dissertation, SCHOOL OF GRADUATE STUDIES) ASSESSING LEADER-MEMBER EXCHANGE ON EMPLOYEE PERFORMANCE IN GHANA’S BANKING SECTOR: THE ROLE OF MOTIVATION BY ABDUL-AZIZ JERIKU SEIDU A THESIS SUBMITTED TO THE DEPARTMENT OF BUSINE
16 Book, L., Gatling, A., & Kim, J. (2019). The effects of leadership satisfaction on employee engagement, loyalty, and retention in the hospitality industry. Journal of Human Resources in Hospitality & Tourism, 18(3), 368-393.
17 Ikon Michael, A., Nwabueze, J. O., & Okoye, N. S. (2019). TRANSFORMATION CAPABILITY AND EMPLOYEE PERFORMANCE OF SELECTED MANUFACTURING FIRMS IN DELTA STATE, NIGERIA. Journal of Research in Business, Economics and Management, Volume 13, Issue 1.
18 Silva, C. I. N. P. D. (2019). How are employees engaged to the brand where they work for? (Doctoral dissertation).
19 Basheer, M. F., Hameed, W. U., Rashid, A., & Nadim, M. (2019). Factors effecting Employee Loyalty through Mediating role of Employee Engagement: Evidence from PROTON Automotive Industry, Malaysia. Journal of Managerial Sciences, 13(2).
20 Almohaimmeed, B. M. (2019). Internal service quality and external service quality using two versions of SERVQUAL scale: An empirical evidence from five malls in the capital city of Saudi Arabia. Verslas: teorija ir praktika, 20(1), 158-169.
21 Al-Shalabi, F. S. (2019). The relationship between organisational trust and organisational identification and its effect on organisational loyalty. International Journal of Economics and Business Research, 18(1), 1-30.
22 Razali, N. S. M., Zahari, M. S. M., Ismail, T. A. T., & Jasim, A. R. (2018). Relationship between Organizational Culture and Job Loyalty among Five-star and Four-star Hotel Employees. International Journal of Academic Research in Business and Social Sciences, 8(15), 14-32.
23 Singh, Y. (2018). The effects of the psychological contract on organisational commitment amongst nurses (Doctoral dissertation).
24 Kentaro, B. (2018). Employee empowerment, job satisfaction and employee loyalty. a case of new vision printing and publishing company limited (NYPPCL) (Doctoral dissertation).
25 Alfiyah, S. E. (2018). Work motivation, loyalty, and quality of employees on the performance of employees of PT. Varia Usaha Gresik. BISMA (Business and Management), 8 (2), 144-155.
26 Sihombing, S. O., & Berlianto, M. P. (2018). Antecedents of employee loyalty in educational setting: an empirical study. International Research Journal of Business Studies, 10(2), 99-109.
27 Hawa, M. A., & Nurtjahjanti, H. (2018). The Relationship Between Work-Life Balance And Employee Loyalty At Pt. Indonesian Hanil in Boyolali. Empathy, 7 (1), 424-429.
28 Odhong, E. A. (2018). Influence of Human Capital Practices on Employee Performance in the Private Security Industry in Kenya (Doctoral dissertation, JKUAT-COHRED).
29 Alnawafleh, E. A. T., Abd Halim, M. S. B., & Tambi, A. M. B. A. (2018). The Impact of Human Resource Management Practices, Organizational Culture, Motivation and Knowledge Management on Job Performance with Leadership Style as Moderating Variable in the Jordanian Commercial Banks Sector. Journal of Reviews on Global Economics, 6, 477-488.
30 Raza, S., Kanwal, R., Rafique, M. A., Sarfraz, U., & Zahra, M. (2017). The relationship between HRM practice, workplace communication and job performance of service industries employees in Vehari, Pakistan. International Journal of Information, Business and Management, 9(2), 122.
31 Varma, A. J., Patil, K., & Ulle, R. S. (2017). An empirical study on job satisfaction and employee loyalty. Journal of Emerging Technologies and Innovative Research, 5(8), 780-791.
32 Hema, S. (2015). The influence of human resource management practices and proactive personality on job performance among commercial bank employees (Doctoral dissertation, Universiti Utara Malaysia).
33 Harahap, S. M. M. (2014). The Effect of Talent Management and Knowledge Management on Employee Performance with Employee Engagement as an Intervening Variable (Study at BPJS Ketenagakerjaan in Samarinda, Banjarmasin and Bontang Branch Offices) (Masters thesis, Islamic University of Indonesia).
1 Google Scholar 
2 CiteSeerX 
3 refSeek 
4 Scribd 
5 SlideShare 
6 PdfSR 
1 Berry, L. (1981). The Employee as customer.Journal of Retail Banking. 3(March) 33-40, 112
2 Bettencourt, L. A., Gwinner, K. P., &Meuter, M.L. (2001).A comparison of Attitude,Personality and Knowledge Predictors of Service-Oriented Organizational citizenship Behaviour.Journal of Applied Psychology 86(1), 29-41.
3 Brumbach, G.B. (1998). Some Ideas and Predictions about Performance Management.Public Personnel Management, 387-402
4 Eskildsen,J.K., &Dahlgaard. (2000). A casual model of employee loyalty.Total Quality Management 11, 1081-1094
5 Eskildsen, J.K., &Nussler, M.L. (2000).Themanagerial drivers of employee satisfaction and loyalty.TotalQuality Management, 11 (4,5&6), 581-588.
6 Graversen, G. (1992). Arbejdets Betydning, Kvalitet Og Udformning. Copenhagen,Denmark: Akademisk Forlog (in Danish)
7 Greenberg,J. (1994). Using socially fair treatment to promote acceptance of worksiteSmoking ban. Journal of Applied Psychology , 79,288-297.
8 George D., &MalleyP., SPSS for windows step by step: a simple guide and reference, 11.0 update
9 Hackman, J.R., & Oldham,G.R . (1980). Work Redesign. Reading: Addison-Wesley
10 Harter, J. K., Schmidt, F. L., & Hayes, T. L. (2002). Business-unit-level relationship between employee satisfaction, employee engagement, and business outcomes: A meta- analysis.Journal of Applied Psychology, 87(2), 268-279.
11 Herzberg, F., Mausner,B.,& Snyderman, B.B. (1974). Arbejde og motivation.Copenhagan:Denmark gyldendal. (in Danish)
12 Herzberg,F. (1987). One More Time: How do you motivate employees. Harvard Business Review, 65(5), 109-121
13 Hobel,J. (2006). Loyal staff worth the effort. Canadian HRReporter,19,(19) 26-26.
14 Konovsky,M.A.& Cropanzano, R. (1991). Perceived fairness of employee drug testing as a predictorof employee attitudes and job performance.Journal Applied Psychology , 76,698-707.
15 McCusker, D., & Wolfman, I. (1998). Loyalty in the eyes of employers and employees. Work force, 77 (11) , 12-14.
16 McGuinness,B.M.(1998).Thechangeinemployeeloyalty.NursingManagement,29(2),45-46.
17 McGregor,D.H.(1990).Theory X and Theory Y.InPugh,D.S.(Ed.),OrganizationTheory–Selected readings(pp.358-374). London: PinguinBusiness.
18 Saks, A. M. (2006). Antecedents and consequences of employee engagement. Journal of Managerial Psychology, 21(7), 600-619.
19 Selnow,G.W.& Gilbert, R.R. (1997).Charge managers with inspiring loyalty.Workforce,76(10), 85-87
20 Spector,P.E.(1997).JobSatisfaction–Application,Assessment,CausesandConsequences.London,UK: Sage Publications Ltd.
21 Schein,E.H. (1965). Organisational Psychology. Englewood, New Jersey: Pentice Hall.
22 Spector, P.E. (1997). Job Satisfaction-Application, Assessment, Causes and Consequences.London: Sage Publications Ltd.
23 Stum,D.M. (1998). Five ingredients for employee retention formula. HR Focus, 75(9) s9-s10.
24 Weiss, D.J., Dawis, R.V., England, G.W., & Lofquist, L.H., (1967). Manual for the Minnesota Satisfaction Questionnaire: Minneaapolis:organisational climate as a predictor to job satisfaction. University of Minnesota
25 Talley,J.(1998).Helpwith work/life balanceearnsemployeeloyalty. BusinessInsurance,32(25),33-35.
26 Voyles B. (1999). Are satisfied employees loyal employees? Potentials, 32 (9), 69-70
27 Vardi,Y.,Wiener,Y.&Popper,M.(1989).Thevaluecontentoforganizationalmissionasa factor in the commitment ofmembers.Psychological Reports, 65, 27-34.
28 Wanous,J.P.(1992).OrganizationalEntry:Recruitment,Selection,Orientation,andSocialization of Newcomers(2nd ed.) Reading, Massachusetts: Addison-Wesley.
Dr. Alexander Kofi Preko
Wisconsin International Univ. College - Ghana
alexpreko75@gmail.com
Mr. John Adjetey
Head of Sales Sun Electronic Ltd. Hisense Ghana - Ghana