Full Project – Workplace ethics and employee loyalty in the telecommunication sector

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Chapter One

INTRODUCTION

1.1 Background to the Study

Ethics in organization is a very vital issue in contemporary workplace as it concerns the interactions of employees and value exchange in workplace. Workplace ethics refers to conformity, to established and accepted standards of conduct set by an Organization (Zverow, 1992). According to Latt (2008), the success of any organization depends on employee’s loyalty to organizational values, principles, beliefs and goals. These principles define the organization’s fundamental road map on which it operates. Verschoor (2004) opined that for workplace ethics to be achieved and maintained, it appears to be connected to the growth of employees in the workplace. This goes beyond the introduction of plans, guidelines and penalties. It involves contribution in the development of capacity of the organization and to teach virtue excellence among organizational members. It also involves carrying out their daily duties professional morale courage (Sekerka, Bagzzi and Charnigo, 2009).

Workplace ethics is brings about a high level of productivity at work amongst employees. It helps in aligning the values of the organization with those of the employees (Well, 2007) achieving this alignment requires that managers encourage consistent dialogue regarding the values of the organization, which enhances community, integrity and openness among employees. Ford et al (2007) ‘also maintained that ethics enable workers to feel a strong alignment between their values and those of the organization. The connection between an employee and his organization is strengthened when he acquaints himself with the ethics of his organization (Sharma, et al, 2009, Kimber and Lipton, 2006; Jones, 2003). Over, the past years, several studies in developed countries have sought to link workplace ethics to various constructs. Morgan and Zeffane (2004) conducted a study oh workplace ethics and organization performance, finding revealed that workplace ethics is important as it leads to sense of belongings and concern amongst employees which could help increase their productivity, and market share (Liptoduen, 2006). Gulbabar, (2014) also maintained that the mix of a strong, positive commitment to a set of principles by employees makes the organization increase in productivity, and is directly related to the performance, satisfaction, happiness and employees attitude. Shashi (2011) reinforced the imperative of workplace ethics as a means to enhancing employee motivation. The link between an employee and his organization is secured when he identifies himself with the principles and ethics of his organization (Sharma et al, 2009; Kimber and Lipton, 2006) Thus, when an individual adheres to his ethical values, his level of intrinsic motivation and organizational support would increase. Elkong (2007) conducted a study on workplace ethics and Job Satisfaction among workers in a Japanese manufacturing company located in United States. Results revealed a positive relationship between workplace ethics and job satisfaction. Knott (2012) examined the role of workplace ethics in organization citizenship behaviour among 108 employees of Southeastern manufacturing company. Results supported the fact that ethical norms affects organization citizenship behaviour. Doyle (2008) also examined the relationship between workplace spirituality and workplace ethics. Results indicated that there are social connections between workplace ethics and spirituality.

From the foregoing, we find from the plethora of literature on workplace ethics and its constructs (i.e. job satisfaction, spirituality, organization’ citizenship behaviour etc) that there is no much studies on workplace ethics and employee loyalty. This research contribution is further premised on the observations that current studies on this subject have been carried out in other parts of world particularly the western world. Findings of these works are yet to be domesticated to the African and most importantly the Nigerian environment (Adeneyi, .2000; Gbadamosi, 2003). Most papers on the subject are theoretical and in some cases speculative with little empirical support particularly in Africa, as there is little empirical studies on workplace ethics and Meyers (2003) also admits that the models of loyalty have been advanced and tested in western countries, he suggested that there is a need for more logical and empirical research to ascertain whether these models apply elsewhere. Therefore, this study fills in the gap in the literature by exploring workplace ethics and employee loyalty in Nigerian private sector.

1.2   Statement of the Problem

Preffer (2001) gives a ‘vivid picture of the problem of most organization globally when he stated that: waves of downsizing, (Cappelli, 1999), increased turnover, more people working as temporaries and contractors (Preffer & Baron, 1988) and more frequent changes in organizational structure have created less loyal, committed, angrier and more dissatisfied employees working in places characterized by fear, pressure and impermanence. This global trend is also true in most African organizations. For instance, recalling the view of Blunt and James (1992) that African employees in sub-saharan countries exhibit an instrumental tendency towards work, Jackson (2002) argues that there is an indication of lack of loyalty to organization by employees. Okpara (2004) and Aluko (2004) identified low loyalty amongst Nigerian workers, describing the sorry state in Nigeria.

Dike (2004) also affirms that the most glaring of the deficiencies suffered by the Nigerian Work System is the lack of Motivation, which manifests in decline in productivity and in most cases workers turnover. The lack of Worker’s is usually seen in low worker’s morale, increased cases of product error, industrial accidents, strike actions and sabotage. We have observed these to be the trend in, the oil and gas sector. It does appear that one of the greatest challenges facing his sector therefore is how it can, like its counterparts in the developed nations raise the loyalty levels of employees. While others (Muhamssmed et al, 2012 Wageeh, 2014; Amangala, 2004) may have looked at the solutions to the problems of 4 i-it by focusing on the physical component on the Job. Little consideration has been paid to the psychological and emotional well-being of the employees, which both affects their level of loyalty. Our point of departure is therefore to examine loyalty from a social interactionist point of view, involving workplace ethics using integrity, trust,, objectivity and civility.

Although there has been various studies on the factors that can, possibly increase employee loyalty, something remains lacking very few have actually looked at employee c4-tnt from the interactional standpoint involving, workplace ethics i.e. the interactions between employees and values of exchange. Also, studies that have, been conducted on this subject have carried out in other parts of world particularly the western world. Little is known at present about workplace ethics and, employee loyalty in Nigerian Work Settings. To bridge, this gap, the study will explore workplace ethics and employee in private sector.

1.3 Conceptual Framework

Fig. 1.1: Researcher’s Desk 2021

1.4   Objective of the Study

The general objective of this study is to examine the relationship between workplace Ethics and employee loyalty in Cosmopolitan micro finance bank in Rivers State. Specifically, the, objectives of the study will be to:

1. Assert the relationship between trust-worthiness and loyalty to the organization.
2. Assert the relationship between trust worthiness and loyalty to the supervisor.
3. Assert the relationship between integrity and loyalty to the organization.
4. Assert the relationship between integrity and loyalty to the supervisor.

1.5 Research Question

In view of the objectives of the study, an attempt will be made to provide answer to the following research questions:

1. What is the relationship between trust-worthiness and loyalty to the organization?
2. What is the relationship between trust-worthiness and loyalty to the supervisor?
3. What is the relationship between Integrity and loyalty to the organization?
4. What is the relationship between Integrity and loyalty to the supervisor?

1.6 Research Hypotheses

Ho₁:- There is no significant relationship between trust- worthiness and loyalty to the organization

Ho₂:-There is no significant relationship between trust-worthiness and loyalty to the supervisor

Ho₃:-There is no significant relationship between integrity and loyalty to the organization

Ho₄:-There is no significant relationship between Integrity and – loyalty to the supervisor

1.7 Significance of the Study

There are two significant of this study these are the practical and theoretical significance.

The practical significance for this study will enable the decision-makers to understand the factors that can promote employee loyalty in the workplace the findings of this study will be of great importance to the human Resource personal management Government Agencies and policy makers.

The study will also be of benefit to the public with respect to the workplace Ethics.

The theoretical significance for the study will benefit the students, scholars, and academics, as it will add to the body of knowledge on workplace Ethics and employee.

1.8 Scope of the Study

In this section, we shall delineate the coverage of our study in relation to its theoretical foundation, geographic coverage and the unit of analysis.

Content Scope: The theoretical area to be covered in this study will be within the preview of workplace Ethics, with trust- worthiness and integrity as the dimensions. While, employee loyalty shall be measured with organization and supervisor loyalty.

Geographic Scope: The study is designed for national coverage but intend to domicile this study in a micro finance bank in Rivers State.

Unit of Analysis: For the purpose of this study, the unit of analysis is at the microlevel, that is, the individual level (i.e the employees of the bank). This unit of analysis was chosen since our criterion variable centers on employee loyalty, which focuses on worker behaviour and attitudes (Pfeffer, 1982).

1.9   Limitations of the Study

A limitation would be anything beyond the ability of the research to control, that may affect the internal validity of the study.

Time, finance and respondent’s attitude contributes to the challenges the researcher faced in this study.

Time Factor: Time is critical factor that surrounds the researcher; as the time frame given to undertake this research work is not sufficient to do an exhaustive study, therefore, time was a limiting factor. –

Finance: In the course of carrying out this study, finance is a major limitation Downloading of materials from the internet cost a kit of money, as well as the typesetting and reprinting especially during corrections.

Respondent’s attitude to questionnaires: The attitude of the respondent’s to complete the questionnaires was a setback as some of them reluctantly ignored most of the questions and some said they don’t have time to complete the questionnaire.

1.10. Operational Definition of Terms

Workplace Ethics: This refers to conforming to accepted standard of work in an organization. This applies also to professional standards of conduct in a workplace.

Trustworthiness: This refers to the ability, benevolence and integrity of a trustee. The trustee is the person to be entrusted with certain valuables of an individual of an organization. –

Integrity: This refers to the extent to which a trustec is believed to adhere to sound moral and ethical principles.

Employee Loyalty: This refers to employee sincerity, deotion, relatedness and faithfulness towards the supervisors and the organization

Loyalty to the Organization: this refers to employee devotion to his/her organization

Loyalty to the Supervisor: this refers to employee devotion to his/her supervisor

1.11 Organizational Profile of Cosmopolitan Micro-Finance Bank

Cosmopolitan Micro-Finance Bank is located at #9 Agudama Avenue, D/Line Port Harcourt, Rivers State it was established on May, 2008. Cosmopolitan Microfinance Bank Nigeria Limited provides loans to, groups of men and women in Port Harcourt, Rivers State Nigeria. To optimize the positive social impact, Cosmopolitan Microfinance Bank Nigeria Limited has tailored the loan product and operations to the client’s’ average profile and needs.

Cosmopolitan Microfinance Bank Nigeria Limited focuses on groups of women in Port Harcourt. The prime reasons for Cosmopolitan Microfinance Bank Nigeria Limited to focus its lending activities on women are that microfinance literature shows that women around the world repay at higher percentages than men and that women are more inclined to invest the profits from their businesses in ways that benefit the entire family.

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Full Project – Workplace ethics and employee loyalty in the telecommunication sector