Abstract
The job performance of employees of South African firms is often viewed as poor, particularly in respect of productivity. Managers are at times perplexed that some employees work hard and are efficient while others underperform. In this study we explore the concept of job performance and potential means to improve the job performance of employees in a retail environment. Share ownership by employees and encouraging them to identify with the organization (organizational commitment) as means of enhancing job performance are the foci of the study. Contrary to expectations it was found that share ownership does not influence job performance directly. In other words, employees who own shares are not better performers than those who do not own shares. Share ownership does, however, reduce the propensity to resign. Share owners are thus more likely to remain with the firm than those who do not own shares. It was also found that share ownership did not influence organizational commitment. Encouraging employees to join the firm's employee share ownership scheme will thus not enhance identification with the firm. The empirical results have shown however, that there is a positive relationship between organizational commitment and job performance. At least for this sample of retail employees, job performance can be enhanced by encouraging them to accept and identify with the firm's goals, values and objectives (organizational commitment). At the same time their propensity to resign and leave the firm will be reduced. To enhance organizational commitment (and thus job performance), two approaches could be used. By providing employees with interesting, challenging jobs and regular feedback on job performance, they will become more committed to the organization. Secondly, by encouraging feelings of group cohesion among employees, positive perceptions and attitudes toward the organization as a whole will grow. Positive feelings about both the job itself and co-workers can thus enhance job performance in a retail environment and reduce the harmful impact of labour turnover.
Highlights
A study by the Economic Advisory Services Department on the restructuring of the South African Economy identified productivity as one of the key variables if efforts to improve the economic prospects of the country are to be successful
To improve productivity in an economy characterized by an absence of foreign investment, inadequate domestic savings, and unacceptable levels of poverty will. according to Reserve Bank President Chris Stals, ·... test the government, the entrepreneurs and the workers of South Africa to the extreme' (Stals, 1993)
Whilst South Africa's GDP per capita declined by 3.2% during 1989-1990, that of Botswana grew by 5%, Germany by 4.5%
Summary
In a study of American companies, have reported that firms with ESOPs have grown much faster than those without the scheme This is true if it is combined with a programme of employee-participation (Rosen & Quarry, 1987; Pierce & Furo, 1990: 38). Pierce & Furo ( 1990: 38) speculate that employees who are shareholders will be absent from work less often - a point of view confirmed by the empirical findings of Wilson & Peel (1991: 464) They found that employee share ownership was a far better predictor of voluntary turnover than profit-sharing. Modelled antecedents Besides the impact of share ownership and organizational commitment on job performance and propensity to resign, the influence of the following antecedents were considered. To empirically evaluate the proposed model was the primary objective of this study
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