EXPLORATION ON THE IMPLICATIONS OF OFFICE POLITICS ON EMPLOYEE COMMITMENT IN THE BANKING SECTOR OF NIGERIA

CHAPTER ONE

INTRODUCTION

Background to the Study

Employees exist as a significant factor in the organization, hence managers’ employs both monetary and non-monetary reward/policies that will encourage employee commitment on the job. The essence of these policies towards employees are to encourage employees to stay longer in the job which increases his experiences and makes him valuable hence reducing employee turnover Commitment is characterized as an individual's degree of pledging or binding to a series of actions that motivates them to act (Kiesler, 2021).  Apparently, individuals are likely to become worried with the company's general interests, such as its prestige, sustainability, and continued success, until association with the entity starts. This generates activity and resource exchange (reflecting increased concern between firm and employee), encouraging more identity. According to Rousseau (2018) an energized workforce, is high-performing (outperforming market norms) and emotionally committed, allowing them to create and offer goods or services that have a sustainable competitive edge. 

Notably, since organizations are social entities this implies that a degree of struggle for resources, personal conflicts, and a variety of influence tactics are executed by individuals and groups to obtain benefits and goals in different ways. In the opinion of Ferdinand (2020) power and politics manifest in offices whether private or public, from governing how decisions are made to how employees interact with one another. However, the impact of power and politics depends on whether employees use positive or negative power to influence others in the workplace. Pfeffer (2020) defined organizational politics as a general term that signifies power relation and influence tactics that is utilized by a group of people in a workplace. Andrews (2021) in their study gave exemplary instances of political behaviours like sidestepping chain of command to gain endorsement, going through improper channels to obtain work-kit that are ordinarily should be given to employees to carry out their tasks, as well as lobbying managers before promotion decisions are made

In reality, as widely supported in organizational psychology and empirical studies, job commitment represents an important variable in predicting employees’ work outcomes, behaviors or attitudes. While some people believe in the possibility of turning office politics to one’s advantage the dominant school of  thought  is  that  workplace  politics  affect employee  productivity,  job  satisfaction,  engagement, commitment,  and  other  aspects that  affect performance levels.  Chaudhary et al. (2022) observed that organizational politics is endemic to organizations because people come to work situations with many goals, not just one unified goal. These goals invoke conflict and competition among workers in the organization, thus Chaudhary (2022) argued that organizational politics involves amassing organizational power for personal benefits, rather than organizational objectives which when these expectations are not met, triggered negative emotions and poor commitment to their job.

Some studies have established that corporate politics cause damaging effects on such outcomes as burnout, stress,  job  satisfaction, commitment,  and  turnover  intentions  (Landells  & Albrecht,  2019). According to Adams et al. (2021), the general political behavior in an  organization  may  involve influencing others  and  events to  meet personal  goals, advance organizational goals, or protect selfish  interests. Such political behaviors most likely cause a  clash  of interests, which affects how  employees relate and engage with each other and their employers. A perfect example is presented by Postma (2021), who relates to having been fired under the guise of budget cuts.  In reality, there was someone in authority who wanted this employee gone. Research by Harris and Gordon (2023) indicates that organizational politics can lead to a toxic work environment, resulting in decreased positive attitude, lower morale and engagement, and increased stress among employees. When employees perceive their workplace as politically charged, their engagement and commitment to the organization decline, making them more likely to reduce their commitment in their job (Vigoda, 2020). This creates a critical problem for organizations, as high turnover rates can disrupt operations and increase recruitment and training costs.

1.2 Statement of Problem

The Nigerian banking sector faces additional pressures from regulatory changes, economic instability, and technological advancements, which can exacerbate the effects of office politics. Employees navigating through politically charged environments may feel demotivated, disengaged, and less committed to their organizations, further impacting their performance and the bank's overall efficiency (Kacmar & Baron, 1999).  In a study by Eniola & Zaram (2021) employee commitment is a critical factor in the banking industry, as it influences job satisfaction, productivity, and overall organizational performance. However, pervasive office politics can undermine this commitment by creating an environment of mistrust, favoritism, and unfair treatment. 

Vigoda, (2020) assert that employee commitment in the banking sector of Nigeria is a critical factor influencing organizational success and stability. High levels of commitment are essential for achieving organizational goals, improving customer service, and maintaining competitive advantage in a rapidly evolving financial environment. Studies have shown that when employees feel valued and supported, their commitment to the organization increases, leading to higher productivity, lower turnover rates, and better overall performance (Oyeniyi & Abiodun, 2023).  

Bizarrely, in the highly competitive and demanding banking sector, where the stability and engagement of employees are crucial, the detrimental effects of office politics can lead to decreased morale and higher turnover rates (Joan & Job 2023). Despite its importance, the impact of office politics on employee commitment in Nigerian banks remains underexplored. Previous studies have largely focused on Western contexts or different sectors, failing to capture the unique cultural and economic factors at play in Nigeria's banking industry (Drory & Romm, 2022). Additionally, the specific mechanisms through which office politics affects employee commitment, such as job satisfaction, perceived organizational support, and employee engagement, are not well understood. This gap in the literature leaves bank managers and policymakers without the necessary insights to address these challenges effectively. In the light of these challenges, the study seek to explore the implications of office politics on employee commitment in the banking sector of Nigeria.

1.3 Objectives of the Study

The broad objectives of the study is focused on exploration on the implications of office politics on employee commitment in the banking sector of Nigeria. Specifically, the study seeks to:

Evaluate the extent to which office politics is present within Nigerian banks 

Assess the causes of office politics within banking sector in Nigeria

Ascertain how office politics affects various aspects of employee commitment

To propose strategies for mitigating the negative effects of office politics and enhancing employee commitment in Nigerian banks.

1.4 Research Questions

What is the extent to which office politics is present within Nigerian bans 

What are the factors making office politics thrive within banking sector in Nigeria?

How does office politics affect various aspects of employee commitment?

What are the strategies for mitigating the negative effects of office politics and enhancing employee commitment in Nigerian banks?

1.5 Research Hypotheses

Ho: There is no significant implications of office politics on employee commitment in the banking sector of Nigeria

Hi: There is a significant implications of office politics on employee commitment in the banking sector of Nigeria

1.6 Significance of the Study

The study holds practical and theoretical significance.  Practically, by understanding the implications of office politics on employee commitment, bank managers and organizational leaders can develop targeted strategies to mitigate its negative effects. This study will provide actionable insights into creating a more transparent and fair work environment, which can enhance employee morale and reduce turnover rates. With a more committed workforce, banks can expect increased productivity, better customer service, and overall improved organizational performance. The findings from this study can inform the development of policies and management practices that address the root causes of office politics. By implementing evidence-based interventions, banks can foster a culture of trust and collaboration, minimizing the detrimental effects of office politics. This can lead to a more positive organizational climate, where employees feel valued and supported, ultimately contributing to the long-term success and stability of the banking sector in Nigeria.

Theoretically, this study adds to the existing body of knowledge on organizational behavior by providing empirical evidence on the impact of office politics on employee commitment within the specific context of the Nigerian banking sector. It extends current theories and models by incorporating findings from a different cultural and economic environment, thereby enhancing the generalizability and applicability of these theories. Empirically, the study will serve as a reference for scholar and student in realted field.

1.7 Scope  of the study

The study focuses on exploring the implications of office politics on employee commitment within the banking sector of Nigeria. Specifically, it aims to examine the prevalence and nature of office politics in banks, identify the factors contributing to these political behaviors, assess the impact of office politics on employee commitment, and propose strategies to mitigate these effects. Geographically, the study will focus on commercial banks in Lagos State. By concentrating on Lagos State, the commercial hub of Nigeria with a high concentration of banks, the study provides a detailed and contextually relevant analysis.  

1.8 Limitations of the study

One of the primary limitations of this study is the potential for response bias in the data collection process. Employees might be reluctant to provide candid feedback about office politics due to fear of repercussions or concerns about confidentiality, especially in a sector as competitive as banking. This could lead to underreporting or misrepresentation of the true extent and impact of office politics on employee commitment. Additionally, the reliance on self-reported data introduces the risk of subjective bias, as individual perceptions and experiences may vary significantly. This could affect the reliability and validity of the findings, making it challenging to draw definitive conclusions.

Another limitation is the geographic and sectoral focus of the study, which may affect the generalizability of the results. By concentrating solely on the banking sector in Lagos State, the study may not capture the dynamics of office politics and employee commitment in other regions of Nigeria or in different industries. The unique cultural, economic, and organizational characteristics of Lagos State may influence the findings, limiting their applicability to other contexts.

1.9 Definitions of Terms

Office Politics: Office politics refers to the strategic behaviors and actions taken by individuals or groups within an organization to gain power, influence decisions, and achieve personal or organizational goals, often at the expense of others.

Employee Commitment: Employee commitment is the emotional and psychological attachment an employee feels towards their organization, reflected in their willingness to stay with the company, engage in their work, and strive for organizational goals.

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