Last Updated 20 Apr 2022

Research Paper on Employee Loyalty

Category Employee
Essay type Research
Words 2771 (11 pages)
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Table of contents

Employee loyalty is defined as an affective commitment of the employee towards the firm. When the employee possesses this affective commitment it gives him/her the devotion to sustain his/her association with the certain firm. The amount of devotion and loyalty of a simple employee can be a great advantage of the company. When an employee is loyal, he/she will have a greater ability to properly do his/her job as well as reduce the probability of the company to fail. Hence the employees of a business are critical components for a certain business to properly progress.

A business may possess inferior employees but the huge amount of loyalty would have can send a very insignificant business to amazing heights. Likewise, those employees with unsubstantial amount of loyalty may cause tremendous business to collapse. DuPont being one of the largest chemical company in the world, it is a necessity for them to continue to work as effective and efficient as possible. To help them with such we have conducted a study on employee loyalty. With this study, we aim to come with an output that will be able to assist DuPont to design different programs to help improve the employee organizational loyalty. Through this we as well want to prove that the amount of loyalty of the employees of a business plays a significant role in the success of the corporations.

Theoretical Framework

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John Meyer and Natalie Allen proposed the Three Components of Commitment model, which explains how organizational commitment is a psychological-related idea. They suggested three factors that affect how an employee sees his/her organization. With this knowledge and better understanding, one can increase not only the engagement of the employees, but their well-being and job satisfaction as well. By using these components together with various appropriate approaches, a manager now has the ability to effectively motivate and work with his/her team. The first type is the Affective Commitment. This type of loyalty occurs when one is emotionally attached to one’s organization or when one genuinely identifies with the goals and values of the organization he/she works for.

Unlike any other types of commitment, an affectively committed employee actually enjoys and is satisfied with his/her work. The second type of commitment is Normative. This component deals with people who stay in the organization because they have this feeling of obligation that they need to stay for whatever reason – external or internal – even if they are not happy nor satisfied with their jobs. Normative Commitment may hinder one from seeking greater opportunities, but still remains in the organization because “it is the right thing to do.” The last component or type is the Continuance Commitment. This type of commitment happens when a person always weighs the pros and cons, both of leaving the organization and of staying.

The only reason behind why people who belong to this category stay is because there is a higher risk, cost, or more losses when they leave the organization compared to when they stay. Another theory supports the Continuance Commitment – Becker’s Side-Bet Theory. Becker (1960) as cited in Cohen and Lowenberg (1990) suggests that the longer an individual stays with his/her organization, the greater number of losses he/she will have when he/she leaves the organization, which in return makes it hard for the individual to leave in the first place – this then becomes the reason for an employee’s commitment to the organization. Becker used the term “side-bets” to refer to the investments, usually material things, which one will lose when he/she decides to leave the organization.

Statement of the Problem
Are there a correlation and a significant difference between the employees’ monthly salary and organizational commitment?

The factors affecting an employee’s commitment to an organization, specifically the effect of an employee’s monthly salary to organizational commitment.

Hypothesis
Null Hypothesis: There is no correlation and significant difference between the employees’ monthly salary and organizational commitment?

Researcher’s/Alternative Hypothesis: There is a correlation and significant difference between the employees’ monthly salary and organizational commitment.

Significance of the Study
In an organization, there are many different factors that may affect an individual’s loyalty to his/her company. With this, the study aims to establish the relationship between organizational loyalty and the employees’ monthly salary. This proposed study will help the managers, if not the owners, to be aware of what motivates their employees to be loyal to them. Furthermore, it will help the managers to know what they can do to help their employees. On the other hand, employees can use the results of this study to work more efficiently and effectively.

METHODOLOGY

Research Design
The research design that the researchers used can be classified as Descriptive. Descriptive research is used to show correlation, associations, or relationship between or among things. By using Descriptive research, the researchers can demonstrate the relationship between organizational commitment and the employees’ salary, since this study aims to find out if there is a relationship or correlation between the two.

By knowing and understanding the relationship between the two, it will be easier for the researchers as well as the managers and employees to make an effective approach that may benefit everyone. Given this, it was the most appropriate method to be used by the researchers in conducting their study on the loyalty of the employees in an organization, specifically in Du Pont.

Participants
The study focused on the employees of Du Pont. Out of (total population), 73 were randomly chosen by the researchers based on their availability, since the survey was conducted during work hours. The respondents are (part) of the total population of the organization.

Instrument
For this study, the Survey technique was used and the instrument utilized was the questionnaire. This instrument was used because it is the fastest way to collect data from a number of respondents. Furthermore, it was more convenient for both the researchers and the respondents.

Data Gathering Procedure
The questionnaire was given to 73 Du Pont employees for them to fill up. The survey questionnaire was composed of 35 questions which revolved around the attitudes and loyalty of the respondents to the organization. A scale from 1 to 5 was used in each question to see if the respondents agree or disagree with the statement/s. A number of copies of the questionnaires were distributed to some respondents through electronic mail (e-mail) by the researchers due to time constraint. After receiving only half of the responses (through e-mail), the other copies were distributed personally by the researchers to the respondents (employees). The researchers collected the copies personally as well after two working days.

Statistical Treatment
The responses made by the respondents describing their gender, civil status, age, monthly salary, religious affiliation, educational background, work designation, work status, and length of service were presented. For easier analysis, the researchers used the following representations:

Gender
1 – Male
2 – Female
Civil Status
1 – Single
2 – Married
Monthly Salary
1 – Below 15,000.00
2 – 15, 000.00 - 19, 999.00
3 – 20, 000.00 - 24, 999.00
4 – 25, 000.00 - 29, 999.00
5 – 30, 000.00 - 34, 999.00
6 – 35, 000.00 - 39, 999.00
7 – 40, 000.00 - 44,999.00
8 – 45, 000.00 - 49, 999.00
9 – 50 , 000.00 – Above

Religious Affiliation
1 – Roman Catholic
2 – Non-Roman Catholic
Educational Background
1 – Non-BS Degree Holder
2 – Bachelor’s Degree Holder
3 – Master’s Degree with Doctoral Units
4 – Full-Fledged Master’s Degree Holder
5 – Bachelor’s Degree with Master’s Units
6 – Full-Fledged Doctoral Degree

Work Designation
1 – Top Management
2 – Middle Management
3 – Rank and File
4 – Others
Work Status
1 – Permanent
2 – Probationary

Length of Service
1 – Below 3 years
2 – 3-5 years
3 – 6-8 years
4 – 9-11 years
5 – 12-14 years
6 – 15-17 years
7 – 18-20 years
8 – 21-23 years
9 – 24-26 years
10 – 27-29 years
11 – 30 years or more

Responses by the employees were statistically analyzed through the use of descriptive statistics such as the mean. Furthermore, Pearson R and T-Test for Significance were utilized to know if there is a correlation and significant difference between the independent and dependent variables.

Analysis of Data
Statistical Tools
The factors affecting employees’ commitment to an organization, more specifically the effect of the employees’ monthly salary Mean
Pearson R
t-test for significance

RESULTS AND DISCUSSION

The table below represents the summary of the data, where in x is the employee’s corresponding monthly salary and y is the mean of the employees’ answer to the 35 questions that relate to organizational loyalty. Answers are rounded off to the nearest hundredths.

Given this data, the Pearson product-moment correlation can be used. It was developed by Karl Pearson and is considered to be the most robust method in measuring the correlation and regression. The formula for rxy is as follows:

Using this formula, the rxy can be derived, which results to -0.27; this can be interpreted that employees’ monthly salary and organizational commitment has a low correlation as shown in the table below:

Parameters
Interpretation
(+,-) 1.00
Perfect Correlation
(+,-) 0.81-0.99
Very High Correlation
(+,-) 0.61-0.80
High Correlation
(+,-) 0.41 – 0.60
Moderate/Fair Correlation
(+,-) 0.21 – 0.40
Low Correlation
(+,-) 0.01 – 0.20
Very Low Correlation
(+,-) 0.00
No Correlation

Furthermore, the amount of contribution or variances explained by the employees’ monthly salary about the employees’ commitment can be derived; this is called the coefficient of determination (COD). Also, given this data, the amount of variance left unexplained and is attributed to other factors or to the sampling error can be computed – this is named as coefficient of alienation (COA).

COD= (r)2 = 0.0729 or 7.29%
COA= 1.00 –(r)2 = 0.9271 or 92.71%

Lastly, the significance can be tested using Dimaano’s (2001) formula:

with degrees of freedom: N-2

This formula is used to determine whether the two factors (employees’ monthly salary and organization loyalty) have a significant relationship. Having computed the following, the group has arrived to a value of a t-computed of 2.136, and t-critical value of 2.002; hence, it can be inferred that the decision is to reject the null hypothesis and the conclusion is to accept the researcher’s hypothesis.

CONCLUSION

That being said, the group has been able to establish a low correlation between the two given factors, which are the employees’ monthly salary and the organizational commitment. Moreover, 7.29% is the amount of contribution or variances explained by the former factor about the latter, and 92.71% is the amount left unexplained by the former. Lastly, based on the computations showed, there is a significant relationship between the two factors.

Brand loyalty

Choice of product depend on the consumers feelings about that product and this is what is referred to as brand loyalty. This paper focuses on the coca cola company products brand loyalty and how the company has achieved loyalty among its consumers worldwide, some of the factors discussed include promotional activities, advertising, position of the company in the market and product differentiation by the coca cola company.

Importance of market information is that it helps in decision making and also in choosing the best strategy to increase market size and loyalty. Brand loyalty: Introduction: Founded in 1886 the coca cola company has become one of the largest companies in the world, this has been made possible by the company’s efforts in promoting consumer loyalty. We focus on the coca cola company which produces soft drinks and enjoys high consumer loyalty in the market than its competitors.

Other factors discussed include why the company enjoys high loyalty and also why market information is important to a company. Brand loyalty: From the research undertaken it was evident that individuals consume the same brand they consumed in their early age, the coca cola company was founded in 1886 and over the years the company has formulated strategies that have made it a leader in terms of consumer loyalty. This company has consistently advertised its product and also sponsored sports over the years.

This has created a feeling toward the company’s brand. Brand loyalty begins in early child hood and when an individual uses the product at an early age then the individual is likely to consume the same product in his or her adult years. Brand loyalty is also created by advertising. The company spends much on advertising each year which helps maintain the market size. These adverts are almost in all forms of media and this has helped increase brand loyalty.

Product differentiation has also contributed to high brand loyalty, the company produces over 450 brands and this has catered for the different taste and preference of consumers al over the world. The company also promotes sporting activities which include financial assistance to hold these activities and therefore this has created a connection with the consumers, these promotions have created a positive feeling toward the coca cola company and this has contributed to the high consumer loyalty the company enjoys.

Individuals always want to be on the winning side and the company has used its financial position to create brand loyalty, the coca cola company is one of the largest company in the united states and is ranked as one of the best companies in terms of profits and returns, therefore this makes consumers feel that they want to associated with the winning side and therefore will always purchase the products. The products:

The coca cola company produces over 450 products and it sells these products in over 200 nations, the many drinks have different flavors that cater for the different taste and preference of consumers. Marketing application: Market information is important in that it helps companies to make decision that are aimed at improving their position in the market, with the market information a company is able to compare its products with those of its competitors and therefore improve their products.

The information is also important in deciding on which strategy to use in the market, differentiation strategies and other forms of strategies are determined by the result of information collected in the market. Conclusion: From the above discussion it is evident that brand loyalty is promoted through advertising, promotions, the company’s position in the market and the introduction of the product to young consumers who become loyal when they grow up.

Market information is important in that it helps the company to make decisions that are aimed at improving the company position in the market. Reference: George Moschis (1994) Marketing Strategies for the Mature Market, McGraw Hill Publishers, New York The Coca Cola Company (2008) history and facts about the Coca Cola Company, retrieved on 26th September, available at www. coca-cola. com/glp/d/index. html Robert Chestnut (1998) Brand Loyalty: Measurement and Management, Routledge publishers, London

Loyalty and Disloyalty in the Play

LOYALTY In the play as the audience we witness loyalty in two different ways. It can be referred as loyalty and disloyalty, but I want to emphasize on loyalty in the concepts of one which the loyalty that audience seeks in a character as a true man and the other one is which the loyalty that the character shows to themselves. In the play we see the loyalty of Macbeth to himself where he murders King Duncan in order to take the crown. This proves his loyalty to his own ambitions and desires. Also murder of Banquo is another example where it is seen that Macbeth murders a loyal friend in order to protect his crown. Thou shalt get kings, though thou be none” (Shakespeare 103)This prophecy from the witches trigger his protection system for upcoming events when he becomes the king and he fears that all the prophecies will come true. As a result he murders Banquo. Concept of loyalty is referred many times in the play. At the beginning the audience witnesses the disloyalty of the Thane of Cawdor and his punishment . This example shows the different understanding of loyalty once more. Thane o Cawdor was a loyal man to Norway, yet because of his position in Scotland he is accepted as disloyal.

In the play the most loyal character is referred as Macduff. Loyalty of Macduff is questioned by Malcom. ”It is myself I mean-in whom I know all the particulars of vice so grafted, that when they shall be opened, black Macbeth will seem as pure as snow…” (Shakespeare 184)In his speech Malcom refers himself as a king worse than Macbeth. He tries to resolve Macduff’s aim in coming to England. Malcom reviles himself to see the reaction of Macduff in order to learn about his intentions. Meaning if he is a loyal man to his country or not. These evils thou repeat’st upon thyself hath banished me from Scotland. O my breast, thy hope ends here. ” (Shakespeare 187)After this speech Malcom and also the audience trusts his loyalty because he talks about his beloved country and his lost hopes when he learns the truth about Malcom. This concept of loyalty is what explained as the expectation of the audience from a true man. As a result in the play loyalty is a trait given to a character when they are loyal to the audience’s expectations and also to themselves. Shakespeare, William, Macbeth. New York: Oxford University Press, 1990.

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