organizational commitment

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ORGANIZATIONAL COMMITMENT AND JOB SATISFACTION: A STUDY OF EMPLOYEES IN THE INFORMATION TECHNOLOGY INDUSTRY IN BANGALORE, INDIA Submitted in partial fulfilment of the requirement for the degree of Master of Philosophy By Jasmine Sonia (Roll No.0930008) Supervisor T.BHAMA Lecturer-Department of Management studies 2010

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Page 1: Organizational Commitment

ORGANIZATIONAL COMMITMENT ANDJOB SATISFACTION: A STUDY OF

EMPLOYEES IN THE INFORMATIONTECHNOLOGY INDUSTRY IN

BANGALORE, INDIA

Submitted in partial fulfilment of the requirement for the degree of

Master of Philosophy

By

Jasmine Sonia(Roll No.0930008)

Supervisor

T.BHAMA

Lecturer-Department of Management studies

2010

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DECLARATION

I Jasmine Sonia hereby declare that the dissertation, entitled “Organizational commitment

and Job satisfaction: A study of employees in the Information Technology Industry in

Bangalore, India” submitted to Christ University, in partial fulfilment of the requirements for

the award of the Degree of Master of Philosophy in Management is a record of original and

independent research work done by me during the academic year 2009-2010 under the

supervision and guidance of Ms. T. Bhama, Department of Management studies , Christ

University ,and it has not formed the basis for the award of any Degree/Diploma/Associate

ship/Fellowship or other similar title to any candidate of any University.

Date: Signature of the candidate

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CERTIFICATE

This is to certify that the dissertation, entitled “Organizational commitment and Job

satisfaction: A study of employees in the Information Technology Industry in Bangalore,

India” submitted to Christ University, in partial fulfilment of the requirements for the award

of the Degree of Master of Philosophy in Management is a record of original research work

done by Ms. Jasmine Sonia During the period 2009-2010 of her study in the Department of

Management studies at Christ University, Bangalore, under my supervision and guidance and

the dissertation has not formed the basis for the award of any Degree/Diploma/Associate

ship/Fellowship or other similar title to any candidate of any University .

Date: Signature of the Guide

T.Bhama (Lecturer)

Department of Management Studies,

Christ University

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APPROVAL OF DISSERTATION

The dissertation entitled “Organizational commitment and Job satisfaction: A study of

employees in the Information Technology Industry in Bangalore by Jasmine Sonia is

approved for the degree of Master of Philosophy in Management.

Examiners:

1. _____________________________ _________________________

2.______________________________ _________________________

3.______________________________ _________________________

Chairman:

______________________________

(Seal)

Date:

Place:

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ACKNOWLEDGEMENT

I express my sincere gratitude to the management of Christ University for giving me an

opportunity to complete Master of Philosophy in Management. I am greatly indebted to Fr.

Thomas T .V. (Director, Institute of Management) for his guidance and who always remained

as a source of inspiration.

I remember the efforts taken by the Research centre of the Christ University for establishing a

universal research culture and motivating the research scholar to accomplish this study.

I am greatly thankful to my guide Ms. T. Bhama (Lecturer, Department of Management

studies) for her constant guidance, support, patience and encouragement to complete this

work on time.

I extend my profound gratitude to Prof. Harold Andrew Patrick (Professor and coordinator

OB and HRM) for giving me all the necessary guidance and suggestion.

I would like to thank Dr. Mihir Dash for helping me in data analysis and for giving all the

necessary suggestion for the interpretation of data.

I remember with gratitude all the IT employees who have shown interest in filling my

questionnaire, without which the research work could not have materialized.

I would like to thank my family, colleagues, and friends for all their love and encouragement

in all stages of my dissertation work.

Lastly, I thank God for making me who I am and giving me all blessings to complete this

journey.

JASMINE SONIA

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ABSTRACT

The integral part of any management process is to manage the people at work. A well

managed organisation sees worker as the root cause of quality and productivity .An effective

organisation will always promote a sense of commitment and satisfaction among its

employees. The significance and importance of the concept of organizational commitment in

terms of leading to beneficial organizational and desirable outcomes such as increased

productivity, reducing absenteeism and turnover, has been documented by many studies such

as those of Steers (1977); Porter et al. (1974); Reiches (1985) and Tett and Meyer (1993).

One way to address issue of employee turnover is to understand the job satisfaction and

commitment level of employees. Organizations often try to foster commitment in their

employees to achieve stability and reduce costly turnover. It is commonly believed that

committed employees will also work harder and be more likely to “go the extra mile” to

achieve organizational objectives. Research has consistently demonstrated that commitment

does indeed contribute to a reduction in turnover. Motivated employees are needed in our

rapidly changing workplaces. Motivated employees help organizations survive. Motivated

employees are more productive. To be effective, managers need to understand what motivates

employees within the context of the roles they perform. A lot of studies are conducted

separately on commitment, satisfaction and motivation but very few studies are there on IT

sector linking these three .So it is crucial to conduct a study on job satisfaction and

organizational commitment in information technology industry and also to identify the

important motivating factors to retain the highly talented workforce.

The review of related literature on Organizational commitment, Job satisfaction and

Motivation has helped the researcher to identify the gap and has provided an insight to the

direction of current study. The population for the study was all technical employees in the

Information technology Industry in Bangalore city. For the present study data was collected

with the help of structured questionnaire from 300 employees working in software industry.

The study is concentrated on Bangalore IT industry. The researcher used non probabilistic

sampling (purposive sampling) method as sampling design. Samples were selected from 10

top IT multinational companies. Samples were drawn from three levels of management

including entry level, middle level and top level employees. The pertinent information for the

study is collected from both primary and secondary sources.

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The independent variable in this study is job satisfaction. The overall Job satisfaction was

measured using the 15-item questionnaire developed by Prof.Harold Andrew Patrick in 2009,

designed to measure 15 aspects of job. The aspects of overall job satisfaction are job

security,interest,opportunity for advancement,appreciation,company policy and management

practises, intrinsic aspects of a job,salary,supervision,social aspects of job, working

conditions,communication,hours,ease, benefits ,and fair treatment. Responses were collected

with the help of 7 point likert scale.

The dependant variable, organizational commitment was measured using the revised

Organizational Commitment Scales (Meyer, Allen and Smith 1993) that is, the Affective

Commitment Scale (ACS), the Continuance Commitment Scale (CCS) and the Normative

Commitment Scale (NCS) with 24 questions on 7-point Likert scales. The Kovach ten job-

related factors developed by kovach , Kenneth (1999) were used to determine what motivates

the employees in software industry. The respondents were asked to indicate the degree of

importance of the factors and relative ranking according to motivational importance. The

statistical technique used to analyse the data were descriptive statistics, The Pearson’s

correlation, ANOVA, Regression and Friedman test. Data was analysed with the help of

SPSS.

The major findings of the study were:

1. The level of organizational commitment was moderate, with relatively higher variability in

affective commitment. Mean value was highest for Continuance commitment indicating

employees are staying back with the organization because of the cost of leaving the

organisation or it’s too much trouble to go somewhere else.

2. IT employees were showing only a moderate level of job satisfaction. Amongst the items

comprising the scale for job satisfaction, the items with highest satisfaction levels were

related to the social aspects of the job, working conditions (excluding working hours), interest

(from intrinsic aspects of the job), job security, communication, and ease of the job (as an

intrinsic aspect of the job). On the other hand, employees had lowest satisfaction levels for

working hours, supervision, appreciation from management, and salary. It shows that IT

employees are dissatisfied with the working hours, supervision, appreciation from

management and the salary they are getting.

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3. To increase the Job satisfaction and commitment it is very important to identify the

motivational factors. . The most important motivational factors for IT employees were good

wages, promotion/growth, job security, interesting work, and appreciation of work.

4. There was significant positive correlation of job satisfaction with affective commitment and

normative commitment, and negative correlation with continuance commitment. This

indicates that higher the level of job satisfaction greater the level of affective commitment and

normative commitment. If employees are staying back with the organization because of the

cost of leaving the organisation or it’s too much trouble to go somewhere else then there will

be less satisfaction.

5. Amongst the items comprising the scale for job satisfaction, the items with highest

correlation with affective commitment were related to the salary, benefits, fair treatment,

opportunity for advancement, and supervision. The items with moderate correlation were

appreciation (from management),interest (from intrinsic aspects of job),job security and

intrinsic aspects of job(excluding ease).The job satisfaction items with lowest correlation

were working conditions(excluding hours),social aspects of job, and communication. So it

clearly indicates the importance of salary, benefit, fair treatment, opportunity for advancement

and a good supervision in increasing the positive emotional attachment to the organisation.

6. Regression analysis revealed that job satisfaction had a significant impact on

Organizational commitment. Job satisfaction was found to have a significant positive impact

on affective commitment, explaining 67.0% of the variation in affective commitment. Thus,

when job satisfaction increases, affective commitment would tend to increase with it. Job

satisfaction was not found to have a significant impact on continuance commitment,

explaining only 1.2% of the variation in continuance commitment. Thus, when job

satisfaction increases, continuance commitment would be expected to slightly decrease with

it. Job satisfaction was found to have a significant positive impact on normative commitment,

explaining 35.1% of the variation in normative commitment. Thus, when job satisfaction

increases, normative commitment would tend to increase with it, but less so than affective

commitment.

It is the interest of all organization to secure commitment and reduce employee turnover. So

this topic has attracted the interest of many researchers. This study confirms the relationship

between job satisfaction and organizational commitment. So managers need to make effort to

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develop human resource policies that are in alignment to the needs and motivation of the

employees. The findings of this study have pointed out some salient issues in the IT field. It is

imperative for IT company management to meet the demands of their personnel to strengthen

their motivation, satisfaction, and commitment to minimize turnover.

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TABLE OF CONTENTS

DISSERTATION APPROVAL

DECLARATION

CERTIFICATE

ACKNOWLEDGEMENT

ABSTRACT

TABLE OF CONTENTS

LIST OF TABLES

CONTENTS PAGE NUMBER

CHAPTER 1-INTRODUCTION1.1 Information Technology Industry 1.2 Indian Information Technology Industry1.3 Organizational Commitment1.4 Affective Commitment 1.5 Continuance commitment1.6 Normative Commitment1.7 Benefit of Organizational Commitment1.8 Job Satisfaction1.9 The causes of Job Satisfaction1.10 Theoretical Framework1.11 History and Back ground of the study1.12 Theories of Job satisfaction1.13 Determinants of Job satisfaction1.14 Outcomes of Job satisfaction

1.15 Motivation1.16 Intrinsic and Extrinsic motivation1.17 The role of motivation1.18Theories of motivation1.19 Scope and area of study1.20 Resume of succeeding chapters

CHAPTER 11-REVIEW OF LITERATURE 2.1 Introduction 2.2 Studies on Job satisfaction, Organizational Commitment and Motivation 2.3 OverviewCHAPTER 111- RESEARCH METHODOLOGY

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3.1 Introduction 3.2 Statement of the Problem 3.3 Operational Definitions 3.4 Variables under Investigation 3.5 Objectives of the study 3.6 Hypotheses 3.7 Setting 3.8 Population 3.9 Sample of the study 3.10 Profile of the respondents 3.11 The Instruments 3.12 Data Collection 3.13 Analysis 3.14 Conclusion

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CHAPTER 1V-STATISTICAL ANALYSIS AND INTERPRETATION 4.1 Introduction 4.2 Characteristics and distribution of sample 4.3 Demographic Profile of respondents 4.4 Descriptive Statistics 4.5 ANOVA- Organizational commitment 4.6 ANOVA-Job satisfaction 4.7 ANOVA-Motivation 4.8 Correlation Analysis 4.9 Regression AnalysisCHAPTER V-SUMMARY AND CONCLUSION 5.1 Introduction 5.2 Need for the study 5.3 Statement of the problem 5.4 Objectives of the study 5.5 Variables under investigation 5.6 Hypotheses 5.7 Population 5.8 Sample of the study 5.9 The instruments 5.10 Analysis 5.11 Major findings of the study 5.12 Implications of the study 5.13 Limitation of the study 5.14 Suggestions for further research 5.15 Conclusion

BIBLIOGRAPHYAPPENDIX-PROFORMA

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47505662666971

74-85757576767677777777787882848485

86-9091-96

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LIST OF TABLES

Table 3.1 showing the distribution of sample according to the age level of

employees

Table 3.2 indicating the frequency and percentage of gender distribution of

respondents

Table 3.3 indicating the frequency and percentage of qualification of

respondents

Table 3.4 indicating the marital status of respondents

Table 3.5 indicating frequency and percentage of experience of respondents in

the current company

Table 3.6 indicating frequency and percentage of total experience of

respondents

Table 3.7 indicating reliability analysis of the Job satisfaction questionnaire

Table 3.8 indicating reliability analysis of the organizational commitment

questionnaire

Table 3.9 indicating reliability analysis of ranking of the motivational factors

Table 4.1 indicating the frequency and percentage of gender distribution of

respondents

Table 4.2 showing the distribution of the sample according to the age level of

employees

Table 4.3 indicating the frequency and percentage of qualification of

respondents

Table 4.4 indicating the marital status of respondents

Table 4.5 indicating frequency and percentage of experience of respondents in

the current company

Table 4.6 indicating frequency and percentage of total experience of

respondents

Table 4.7 indicating the frequency and percentage of size of the organization

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Table 4.8 indicating frequency and percentage of different managerial levels

Table 4.9 indicating the mean and standard deviation for Affective

commitment

Table 4.10 indicating the mean and standard deviation for Continuance

commitment

Table 4.11 indicating the mean and standard deviation for Normative

commitment

Table 4.12 indicating the mean and standard deviation for Organizational

commitment

Table 4.13 indicating the mean and standard deviation for Job satisfaction

Table 4.14 indicating the mean and standard deviation for overall Job

satisfaction

Table 4.15 indicating Friedman’s mean rank test for motivational factors of

IT employees

Table 4.16 indicating ANOVA for Organizational commitment and gender

Table 4.17 indicating ANOVA for Organizational commitment and Age

Table 4.18 indicating ANOVA for Organizational commitment and

Qualification

Table 4.19 indicating ANOVA for Organizational commitment and Marital

Status

Table 4.20 indicating ANOVA for Organizational commitment and Years in

present Position

Table 4.21 indicating ANOVA for Organizational commitment and Overall

work experience

Table 4.22 indicating ANOVA for Organizational commitment and Management

level

Table 4.23 indicating ANOVA for Job satisfaction and gender

Table 4.24 indicating ANOVA for Job satisfaction and Age

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Table 4.25 indicating ANOVA for Job satisfaction and Qualification

Table 4.26 indicating ANOVA for Job satisfaction and Marital Status

Table 4.27 indicating ANOVA for Job satisfaction and Years in Present position

Table 4.28 indicating ANOVA for Job satisfaction and Overall work experience

Table 4.29 indicating ANOVA for Job satisfaction and Management level

Table 4.30 indicating Motivation and Gender Mean

Table 4.31 indicating Mean for Motivation and Age

Table 4.32 indicating Mean for Motivation and Qualification

Table 4.33 indicating Mean for Motivation and Marital Status

Table 4.34 indicating Mean for Motivation and Years in present Position

Table 4.35 indicating Mean for Motivation and overall work experience

Table 4.36 indicating Mean for Motivation and Management level

Table 4.37 indicating Pearson correlation between Job satisfaction and

Organizational commitment

Table 4.38 indicating Pearson correlation between 15 items in Job satisfaction

and Affective commitment

Table 4.39 indicating regression of Affective commitment on Job satisfaction

Table 4.40 indicating regression of Normative commitment on Job satisfaction

Table 4.41 indicating regression of Continuance commitment on Job satisfaction

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CHAPTER 1

INTRODUCTION

CHAPTER 1

INTRODUCTION

In today’s competitive world, the biggest challenge which the organizations are facing is to

retain talented employees. Job satisfaction is necessary to promote functional employee

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behaviours in the organization. For the organization, job satisfaction of its workers means a

work force that is motivated and committed to high quality performance. Job Satisfaction can

be an important indicator of how employees feel about their jobs and a predictor of work

behaviours such as organizational citizenship, absenteeism, and turnover. Further, job

satisfaction can partially mediate the relationship of personality variables and deviant work

behaviours. One common research finding is that job satisfaction is correlated with life

satisfaction.

Securing Commitment and retaining good employees are very important to achieve stability

and reduce costly turn over. Various outcomes are influenced by organizational commitment

such as decreased turn over, higher motivation and organizational support. An employee who

is affectively committed strongly identifies with the goals of the organization and desires to

remain a part of the organization. This employee commits to the organization because he/she

"wants to". Organizational commitment is recognized as a key factor in the employment

relationship. Similarly, it also is widely accepted that one way to reduce voluntary turnover is

by strengthening employee commitment to the firm.

So it is crucial to identify the level of job satisfaction, motivating factors and its influence on

organizational commitment to retain talented work force in software industry.

1.1INFORMATION TECHNOLOGY INDUSTRY

The word "software" had been coined as a prank by at least 1953, but did not appear in print

until the 1960s. Before this time, computers were programmed either by customers, or the few

commercial computer vendors of the time, such as UNIVAC and IBM. The first company

founded to provide software products and services was Computer Usage Company in 1955.

The software industry began in the late 1950s when the use of computers for business

applications expanded rapidly creating a huge demand for people with programming

experience. A number of people who had learned their programming skills working for

computer manufacturers or for the large companies and government agencies that were the

first computer users saw this as an opportunity to start their own companies and sell their

services under contract.

The first such company, Computer Usage Corporation (CUC), was founded in 1955 by Elmer

Kubie and John W. Sheldon, two former IBM employees. The company was founded with

$40,000 in start-up capital which supported a staff of five in addition to the two founders. Its

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first project was a program written for California Research Corporation to simulate the flow

of oil. CUC became a public company in 1960 and by 1967 had a staff of over 700 people in

12 offices around the U.S. and revenues over $13 million. Unfortunately, it suffered financial

losses in the late 1970s and eventually went bankrupt in 1986.

In 1959, seven Univac programmers founded Applied Data Research (ADR) to market their

programming skills to computer manufacturers such as Sperry Rand and Honeywell to

develop systems software. ADR went public in 1965 and, in the late 1960s, became one of

the first companies to successfully sell software products. It continued to be one of the largest

U.S. software product companies until it was acquired by Ameritech for $215 million in 1986.

Fletcher Jones and Roy Nutt, who had gained their computer experience in the aerospace

industry, founded Computer Sciences Corporation (CSC) in 1959 with $100 and a contract

from Honeywell to develop a business-language compiler called FACT. By 1963, CSC was

the largest software company with revenues close to $4 million. CSC continues to thrive

today as one of the world largest information technology services firms with more than $10.2

billion in revenues.

The software industry expanded in the early 1960s, almost immediately after computers were

first sold in mass-produced quantities. Universities, government, and business customers

created a demand for software. Many of these programs were written in-house by full-time

staff programmers. Some were distributed freely between users of a particular machine for no

charge. Others were done on a commercial basis, and other firms such as Computer Sciences

Corporation (founded in 1959) started to grow. The computer-makers started bundling

operating systems software and programming environments with their machines. When

Digital Equipment Corporation brought a relatively low-priced micro-computer to market, it

brought computing within reach of many more companies and universities worldwide, and it

spawned great innovation in terms of new, powerful programming languages and

methodologies. New software was built for micro-computers, and others, including IBM,

followed DECs example quickly, resulting in the IBM AS400 amongst others.

The industry expanded greatly with the rise of the personal computer in the mid-1970s, which

brought computing to the desktop of the office worker. In subsequent years, it also created a

growing market for games, applications, and utilities. DOS, Microsoft's first product, was the

dominant operating system at the time.

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In the early years of the 21st century, another successful business model has arisen for hosted

software, called software as a service, or SaaS; this was at least the third time this model had

been attempted. SaaS reduces the concerns about software piracy, since it can only be

accessed through the Web, and by definition no client software is loaded onto the end user's

PC.

The information technology (IT) industry has become of the most robust industries in the

world. IT, more than any other industry or economic facet, has an increased productivity,

particularly in the developed world, and therefore is a key driver of global economic growth.

Economies of scale and insatiable demand from both consumers and enterprises characterize

this rapidly growing sector.

1.2INDIAN INFORMATION TECHNOLOGY INDUSTRY

The Indian information technology (IT) industry has played a major role in placing India on

the international map. The industry is mainly governed by IT software and facilities for

instance System Integration, Software experiments, Custom Application Development and

Maintenance (CADM), network services and IT Solutions. According to Nasscom's findings

Indian IT-BPO industry expanded by 12% during the Fiscal year 2009 and attained aggregate

returns of US$ 71.6 billion. Out of the derived revenue US$ 59.6 billion was solely earned by

the software and services division. Moreover, the industry witnessed an increase of around

US$ 7 million in FY 2008-09 i.e. US$ 47.3 billion against US$ 40.9 billion accrued in FY

2008-09.

The origin of IT industry in India can be traced to 1974, when the mainframe manufacturer,

Burroughs, asked its India sales agent, Tata Consultancy Services (TCS), to export

programmers for installing system software for a U.S. client. The IT industry originated under

unfavourable conditions. Local markets were absent and government policy toward private

enterprise was hostile. The industry was begun by Bombay-based conglomerates which

entered the business by supplying programmers to global IT firms located overseas.

During that time Indian economy was state-controlled and the state remained hostile to the

software industry through the 1970s. Import tariffs were high (135% on hardware and 100%

on software) and software was not considered an "industry", so that exporters were ineligible

for bank finance. Government policy towards IT sector changed when Rajiv Gandhi became

Prime Minister in 1984. His New Computer Policy (NCP-1984) consisted of a package of

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reduced import tariffs on hardware and software (reduced to 60%), recognition of software

exports as a "deli censed industry", i.e., henceforth eligible for bank finance and freed from

license-permit raj, permission for foreign firms to set up wholly-owned, export-dedicated

units and a project to set up a chain of software parks that would offer infrastructure at below-

market costs. These policies laid the foundation for the development of a world-class IT

industry in India. Indian IT companies such as Tata Consultancy Services (TCS), Wipro,

Infosys, and HCL are renowned in the global market for their IT prowess. The Indian IT &

ITES industry continues to grow at a blistering pace. The availability of an abundant, high-

quality and cost-effective pool of skilled knowledge workers is India’s main advantage in the

global IT and ITES-BPO industry.

1.3 ORGANIZATIONAL COMMITMENT

The job satisfaction attitude has received the most attention over the years. Recently the more

global organizational commitment has emerged out of the research literature as being

important to understanding and predicting organizational behaviour.

Organizational commitment can be considered to be affective responses or attitudes which

link or attach an employee to the organization. As an attitude, organizational commitment is

most often defined as a strong desire to remain a member of a particular organization, a

willingness to exert high levels of effort on behalf of the organization and a definite belief in

and acceptance of the values and goals of the organization.

According to Meyer and Allen's (1991) three-component model of commitment, prior

research indicated that there are three "mind sets" which can characterize an employee's

commitment to the organization:

1.4 AFFECTIVE COMMITMENT

Affective commitment is defined as the employee's positive emotional attachment to the

organization. An employee who is affectively committed strongly identifies with the goals of

the organization and desires to remain a part of the organization. This employee commits to

the organization because he/she "wants to". In developing this concept, Meyer and Allen drew

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largely on Mow day, Porter, and Steer’s (1982) concept of commitment, which in turn drew

on earlier work by Kanter (1968).

1.5 CONTINUANCE COMMITMENT

The individual commits to the organization because he/she perceives high costs of losing

organizational membership (cf. Becker's 1960 "side bet theory"), including economic costs

(such as pension accruals) and social costs (friendship ties with co-workers) that would be

incurred. The employee remains a member of the organization because he/she "has to".

1.6 NORMATIVE COMMITMENT

The individual commits to and remains with an organization because of feelings of

obligation. These feelings may derive from many sources. For example, the organization may

have invested resources in training an employee who then feels a 'moral' obligation to put

forth effort on the job and stay with the organization to 'repay the debt.' It may also reflect an

internalized norm, developed before the person joins the organization through family or other

socialization processes, that one should be loyal to one's organization. The employee stays

with the organization because he/she "ought to". Normative commitment involves the

employee’s feelings of obligation to stay with the organization.

1.7 BENEFIT OF ORGANIZATIONAL COMMITMENT

Organizational Commitment implies an intention to persist in a course of action. Therefore,

organizations often try to foster commitment in their employees to achieve stability and

reduce costly turnover. It is commonly believed that committed employees will also work

harder and be more likely to “go the extra mile” to achieve organizational objectives.

Research has consistently demonstrated that commitment does indeed contribute to a

reduction in turnover.

Research consistently shows that employees who want to stay (high ACS) tend to perform at a

higher level than those who do not (low ACS). Employees who remain out of obligation (high

NCS) also tend to out-perform those who feel no such obligation (low NCS), but the effect on

performance is not as strong as that observed for desire. Finally, employees who have to stay

primarily to avoid losing something of value (e.g., benefits, seniority) often have little

incentive to do anything more than is required to retain their positions.

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1.8 JOB SATISFACTION

Job satisfaction is a result of employee’s perception of how well their job provides those

things that are viewed as important. There are three important dimensions to job satisfaction.

First, job satisfaction is an emotional response to a job situation. Second, job satisfaction is

often determined by how well out comes meet or exceed expectations. Third job satisfaction

represents several related attitudes.

1.9 THE CAUSES OF JOB SATISFACTION

Five predominant models of job satisfaction focus on different causes.

Need Fulfilment: These models propose that satisfaction is determined by the extent to which

the characteristics of a job allow an individual to fulfil his or her needs. Unmet needs can

affect both satisfaction and turnover.

Discrepancies: These models propose that satisfaction is a result of met expectations. Met

expectation represent the difference between what an individual expects to receive from a job

and what he or she actually receives. When expectations are greater than what is received a

person will be dissatisfied. This model predicts that individual will be satisfied when her or

she attains out comes above and beyond expectation.

Value Attainment: Satisfaction result from the perception that a job allows fulfilment of an

individual’s important work values. Managers can thus enhance employee satisfaction by

structuring the work environment and its associated rewards and recognition to reinforce

employee values.

Equity: In this model, satisfaction is a function of how fairly an individual is treated at work.

Satisfaction result from ones perception that work outcomes, relative to inputs, compare

favourably with a significant others outcomes/inputs.

Dispositional/Genetic components: This model is based on the belief that job satisfaction is

partly a function of both personal traits and genetic factors. It implies that stable individual

differences are important in explaining job satisfaction.

1.10 THEORETICAL FRAME WORK

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The term job satisfaction refers to the general attitude of an individual towards his/her

job(Robbins,2003).Job satisfaction has been defined as a pleasurable emotional state resulting

from the appraisal of one’s job; an affective reaction to one’s job; and an attitude towards

one’s job. Weiss (2002) has argued that job satisfaction is an attitude but points out that

researchers should clearly distinguish the objects of cognitive evaluation which are affect

(emotion), beliefs and behaviours. This definition suggests that we form attitudes towards our

jobs by taking into account our feelings, our beliefs, and our behaviours. Job satisfaction can

also be defined as either as the overall or general job satisfaction of an employee or as the

satisfaction with certain facets of the job such as the work itself ,co-workers,supervision,pay,

working conditions, company policies, procedures and opportunities for promotion(Smith et

al.,1969).Based upon these two view points of job satisfaction , it may be measures either as

the general or overall satisfaction of an employee with the job or it may be measured as the

satisfaction of an employee with the various work facets. For the present study the former

view of job satisfaction has adopted.

1.11 HISTORY AND BACK GROUND OF THE STUDY

One of the biggest preludes to the study of job satisfaction was the Hawthorne studies. These

studies (1924-1933), primarily credited to Elton Mayo of the Harvard Business School,

sought to find the effects of various conditions (most notably illumination) on workers’

productivity. These studies ultimately showed that novel changes in work conditions

temporarily increase productivity (called the Hawthorne Effect). It was later found that this

increase resulted, not from the new conditions, but from the knowledge of being observed.

This finding provided strong evidence that people work for purposes other than pay, which

paved the way for researchers to investigate other factors in job satisfaction.

Scientific management also had a significant impact on the study of job satisfaction. Frederick

Winslow Taylor’s 1911 book, Principles of Scientific Management, argued that there was a

single best way to perform any given work task. This book contributed to a change in

industrial production philosophies, causing a shift from skilled labour and piecework towards

the more modern approach of assembly lines and hourly wages. The initial use of scientific

management by industries greatly increased productivity because workers were forced to

work at a faster pace. However, workers became exhausted and dissatisfied, thus leaving

researchers with new questions to answer regarding job satisfaction. It should also be noted

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that the work of W.L. Bryan, Walter Dill Scott, and Hugo Munsterberg set the tone for

Taylor’s work.

Some argue that Maslow’s hierarchy of needs theory, a motivation theory, laid the foundation

for job satisfaction theory. This theory explains that people seek to satisfy five specific needs

in life – physiological needs, safety needs, social needs, self-esteem needs, and self-

actualization. This model served as a good basis from which early researchers could develop

job satisfaction theories.

1.12 THEORIES OF JOB SATISFACTION

Affect Theory

Edwin A. Locke’s Range of Affect Theory (1976) is arguably the most famous job satisfaction

model. The main premise of this theory is that satisfaction is determined by a discrepancy

between what one wants in a job and what one has in a job. Further, the theory states that how

much one values a given facet of work (e.g. the degree of autonomy in a position) moderates

how satisfied/dissatisfied one becomes when expectations are/aren’t met. When a person

values a particular facet of a job, his satisfaction is more greatly impacted both positively

(when expectations are met) and negatively (when expectations are not met), compared to one

who doesn’t value that facet.

Dispositional Theory

Another well known job satisfaction theory is the Dispositional Theory. It is a very

general theory that suggests that people have innate dispositions that cause them to have

tendencies toward a certain level of satisfaction, regardless of one’s job. This approach

became a notable explanation of job satisfaction in light evidence that job satisfaction tends to

be stable over time and across careers and jobs. Research also indicates that identical twins

have similar levels of job satisfaction.

Two-Factor Theory (Motivator-Hygiene Theory)

Frederick Herzberg’s two factor theory (also known as Motivator Hygiene Theory) attempts

to explain satisfaction and motivation in the workplace .This theory states that satisfaction and

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dissatisfaction are driven by different factors – motivation and hygiene factors, respectively.

An employee’s motivation to work is continually related to job satisfaction of a subordinate.

Motivation can be seen as an inner force that drives individuals to attain personal and

organization goals . Motivating factors are those aspects of the job that make people want to

perform, and provide people with satisfaction, for example achievement in work, recognition,

promotion opportunities. These motivating factors are considered to be intrinsic to the job, or

the work carried out. Hygiene factors include aspects of the working environment such as pay,

company policies, supervisory practices, and other working conditions.

1.13 DETERMINANTS OF JOB SATISFACTION

While analyzing the various determinants of job satisfaction, we have to keep in mind

that: all individuals do no derive the same degree of satisfaction though they perform the same

job in the same job environment and at the same time. Therefore, it appears that besides the

nature of job and job environment, there are individual variables which affect job satisfaction.

Thus, all those factors which provide a fit among individual variables, nature of job, and

situational variables determine the degree of job satisfaction. Let us see what these factors are

Individual factors:

Individuals have certain expectations from their jobs. If their expectations are met from the

jobs, they feel satisfied. These expectations are based on an individual’s level of education,

age and other factors.

Level of education:

Level of education of an individual is a factor which determines the degree of job satisfaction.

For example, several studies have found negative correlation between the level of education,

particularly higher level of education, and job satisfaction. The possible reason for this

phenomenon may be that highly educated persons have very high expectations from their jobs

which remain unsatisfied. In their case, Peter’s principle which suggests that every individual

tries to reach his level of incompetence, applies more quickly.

Age:

Individuals experience different degree of job satisfaction at different stages of their life. Job

satisfaction is high at the initial stage, gets gradually reduced, starts rising up to certain stage,

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and finally dips to a low degree. The possible reasons for this phenomenon are like this. When

individuals join an organization, they may have some unrealistic assumptions about what they

are going to drive from their work. These assumptions make them more satisfied. However,

when these assumptions fall short of reality, job satisfaction goes down. It starts rising again

as the people start to assess the jobs in right perspective and correct their assumptions. At the

last, particularly at the far end of the career, job satisfaction goes down because of fear of

retirement and future outcome.

Other factors:

Besides the above two factors, there are other individual factors which affect job satisfaction.

If an individual does not have favourable social and family life, he may not feel happy at the

workplace. Similarly, other personal problems associated with him may affect his level of job

satisfaction. Personal problems associated with him may affect his level of job satisfaction.

Nature of job:

Nature of job determines job satisfaction which is in the form of occupation level and job

content. Occupation level: Higher level jobs provide more satisfaction as compared to lower

levels. This happens because high level jobs carry prestige and status in the society which and

the itself becomes source of satisfaction for the job holders. Job content: Job content refers to

the intrinsic value of the job which depends on the requirement of skills for performing it,

degree of responsibility and growth it offers. A higher content of these factors provides higher

satisfaction. For example, a routine and repetitive lesser satisfaction; the degree of satisfaction

progressively increases in job rotation, job enlargement, and job enrichment

Situational variables:

Situational variables related to job satisfaction lie in organizational context – formal and

informal. Formal organization emerges out of the interaction of individuals in the

organization. Some of the important factors which affect job important factors which affect

job satisfaction are given below:

Working conditions: Working conditions, particularly physical work environment, like

conditions of workplace and associated facilities for performing the job determine job

satisfaction. These work in two ways. First, these provide means job performance. Second,

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provision of these conditions affects the individual’s perception about the organization. If

these factors are favourable, individuals experience higher level of job satisfaction.

Supervision: The type of supervision affects job satisfaction as in each type of supervision;

the degree of importance attached to individuals varies. In employee-oriented supervision,

there is more concern for people which is perceived favourably by them and provides them

more satisfaction. In job oriented supervision, there is more emphasis on the performance of

the job and people become secondary. This situation decreases job satisfaction.

Equitable rewards: The type of linkage that is provided between job performance and

rewards determines the degree of job satisfaction. If the reward is perceived to be based on the

job performance and equitable, it offers higher satisfaction. If the reward is perceived to be

based on considerations other than the job performance, it affects job satisfaction adversely.

Opportunity: It is true that individuals seek satisfaction in their jobs in the context of job

nature and work environment by they also attach importance to opportunities for promotion

that these job offer. If the present job offers opportunity of promotion is lacking, it reduces

satisfaction.

Work group: Individuals work in group either created formally of they develop on their own

to seek emotional satisfaction at the workplace. To the extent such groups are cohesive; the

degree of satisfaction is high. If the group is not cohesive, job satisfaction is low. In a

cohesive group, people derive satisfaction out of their interpersonal interaction and workplace

becomes satisfying leading to job satisfaction

1.14 OUTCOMES OF JOB SATISFACTION

To society as a whole as well as from an individual employees stand point, job satisfaction in

and of itself is a desirable outcome. The most important outcomes of job satisfaction are

Satisfaction and Productivity: There are many variables which can affect productivity. The

most important of which is rewards. If people receive rewards they feel equitable, they will be

satisfied and this is likely to result in greater performance effort.

Satisfaction and Turnover: If there is considerable job dissatisfaction there is likely to be

high turnover. There are other factors such as commitment to the organization play a role in

the relationship between satisfaction and turnover.

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Satisfaction and Absenteeism: Research has pretty well demonstrated an inverse relationship

between satisfaction and absenteeism. When satisfaction is high, absenteeism tends to be low.

Other effects such as Citizenship Behaviours: Research reports that highly satisfied

employees tend to have a better mental and physical health, learn new job related tasks more

quickly, have fewer on-the-job accidents, and file fewer grievances. Also on the positive side,

it has recently been found that satisfied employees are more likely to exhibit prosocial

citizenship behaviours and activities.

1.15 MOTIVATION

Motivation is a basic psychological process. Motivation is a process that starts with

physiological or psychological deficiency or need that activates behaviour or drive that is

aimed at a goal or incentive. In a systems sense, motivation consists of these three interacting

and interdependent elements:

Needs: Needs are created whenever there is a physiological or psychological imbalance

Drives: A physiological drive is defined as a deficiency with direction

Incentives: At the end of the motivation cycle is the incentive, defined as anything that will

alleviate a need and reduce a drive.

1.16 INTRINSIC AND EXTRINSIC MOTIVATION

Intrinsic motivation has been studied by social and educational psychologists since the

early 1970s. Research has found that it is usually associated with high educational

achievement and enjoyment by students. Intrinsic motivation has been explained

by Fritz Heider's attribution theory, Bandura's work on self-efficacy, and Ryan

and Deci's cognitive evaluation theory.

Extrinsic motivation comes from outside of the performer. Money is the most obvious

example, but coercion and threat of punishment are also common extrinsic motivations.

While competing, the crowd may cheer on the performer, which may motivate him or her to

do well. Trophies are also extrinsic incentives. Competition is in general extrinsic because it

encourages the performer to win and beat others, not to enjoy the intrinsic rewards of the

activity.

1.17 THE ROLE OF MOTIVATION

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Why do we need motivated employees? The answer is survival (Smith, 1994). Motivated

employees are needed in our rapidly changing workplaces. Motivated employees help

organizations survive. Motivated employees are more productive. To be effective, managers

need to understand what motivates employees within the context of the roles they perform. Of

all the functions a manager performs, motivating employees is arguably the most complex.

This is due, in part, to the fact that what motivates employees changes constantly (Bowen &

Radhakrishna, 1991). For example, research suggests that as employees' income increases,

money becomes less of a motivator (Kovach, 1987). Also, as employees get older, interesting

work becomes more of a motivator.

1.18 THEORIES OF MOTIVATION

Jeremy Bentham’s “The Carrot and the Stick Approach”:

Possibly the essence of the traditional view of people at work can be best appreciated by a

brief look at the work of this English philosopher, whose ideas were also developed in the

early years of the Industrial Revolution, around 1800. Bentham’s view was that all people are

self-interested and are motivated by the desire to avoid pain and find pleasure. Any worker

will work only if the reward is big enough, or the punishment sufficiently unpleasant. This

view - the ‘carrot and stick’ approach - was built into the philosophies of the age and is still to

be found, especially in the older, more traditional sectors of industry.

The various leading theories of motivation and motivators seldom make reference to the

carrot and the stick. This metaphor relates, of course, to the use of rewards and penalties in

order to induce desired behaviour. It comes from the old story that to make a donkey move,

one must put a carrot in front of him or dab him with a stick from behind. Despite all the

research on the theories of motivation, reward and punishment are still considered strong

motivators. For centuries, however, they were too often thought of as the only forces that

could motivate people.

At the same time, in all theories of motivation, the inducements of some kind of ‘carrot’ are

recognized. Often this is money in the form of pay or bonuses. Even though money is not the

only motivating force, it has been and will continue to be an important one. The trouble with

the money ‘carrot’ approach is that too often everyone gets a carrot, regardless of performance

through such practices as salary increase and promotion by seniority, automatic ‘merit’

increases, and executive bonuses not based on individual manager performance. The ‘stick’,

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in the form of fear–fear of loss of job, loss of income, reduction of bonus, demotion, or some

other penalty–has been and continues to be a strong motivator. Yet it is admittedly not the best

kind. It often gives rise to defensive or retaliatory behaviour, such as union organization,

poor-quality work, executive indifference, failure of a manager to take any risks in decision

making or even dishonesty. But fear of penalty cannot be overlooked. Whether managers are

first-level supervisors or chief executives, the power of their position to give or with hold

rewards or impose penalties of various kinds gives them an ability to control, to a very great

extent, the economic and social well-being of their subordinates.

Reinforcement Theory B.F. Skinner, who propounded the reinforcement theory, holds that by designing the

environment properly, individuals can be motivated. Instead of considering internal factors

like impressions, feelings, attitudes and other cognitive behaviour, individuals are directed by

what happens in the environment external to them. Skinner states that work environment

should be made suitable to the individuals and that punishment actually leads to frustration

and de-motivation. Hence, the only way to motivate is to keep on making positive changes in

the external environment of the organization.

Cognitive Evaluation Theory

As per this theory a shift from external rewards to internal rewards results into motivation. It

believes that even after the stoppage of external stimulus, internal stimulus survives. It relates

to the pay structure in the organization. Instead of treating external factors like pay,

incentives, promotion etc and internal factors like interests, drives, responsibility etc,

separately, they should be treated as contemporary to each other. The cognition is to be such

that even when external motivators are not there the internal motivation continues. However,

practically extrinsic rewards are given much more weight age.

The incentive theory of motivationA reward, tangible or intangible, is presented after the occurrence of an action (i.e. behaviour)

with the intent to cause the behaviour to occur again. This is done by associating positive

meaning to the behaviour. Studies show that if the person receives the reward immediately,

the effect would be greater, and decreases as duration lengthens. Repetitive action-reward

combination can cause the action to become habit. Motivation comes from two sources:

oneself, and other people. These two sources are called intrinsic motivation and extrinsic

motivation, respectively. Applying proper motivational techniques can be much harder than it

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seems. Steven Kerr notes that when creating a reward system, it can be easy to reward A,

while hoping for B, and in the process, reap harmful effects that can jeopardize your goals.

A reinforce is different from reward, in that reinforcement is intended to create a measured

increase in the rate of a desirable behaviour following the addition of something to the

environment.

Vroom’s Valence x Expectancy theory:The most widely accepted explanations of motivation have been propounded by Victor

Vroom. His theory is commonly known as expectancy theory. The theory argues that the

strength of a tendency to act in a specific way depends on the strength of an expectation that

the act will be followed by a given outcome and on the attractiveness of that outcome to the

individual to make this simple, expectancy theory says that an employee can be motivated to

perform better when there is a belief that the better performance will lead to good

performance appraisal and that this shall result into realization of personal goal in form of

some reward.

The theory focuses on three things:

Efforts and performance relationship

Performance and reward relationship

Rewards and personal goal relationship

Drive-reduction theories

There are a number of drive theories. The Drive Reduction Theory grows out of the concept

that we have certain biological drives, such as hunger. As time passes the strength of the drive

increases if it is not satisfied (in this case by eating). Upon satisfying a drive the drive's

strength is reduced. The theory is based on diverse ideas from the theories of Freud to the

ideas of feedback control systems, such as a thermostat.

Cognitive dissonance theory

Suggested by Leon Festinger, this occurs when an individual experiences some degree of

discomfort resulting from an incompatibility between two cognitions. For example, a

consumer may seek to reassure himself regarding a purchase, feeling, in retrospect, that

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another decision may have been preferable. Another example of cognitive dissonance is when

a belief and behaviour are in conflict.

Key Experiences and Motivation

Prof. Gad Yair from The Hebrew University has developed a line of research on Key

Experiences, especially relating to educational events. His approach to motivation follows his

longstanding interest in outstanding motivating events - either short term and contextual or

long-term. He first published a series of papers using the Experience Sampling Method (all

three in 2000). This has led to his major study of key experiences, motivation and long-term

outcomes. His papers on Key experiences in higher education and on the role of those

experiences in educational turning points are readily available over the net. The concept of

key educational experiences refers to singular, short and intense educational encounters that

proved to have strong and long-lasting effects on adults.

Need theories

Need hierarchy theoryAbraham Maslow's theory is one of the most widely discussed theories of

motivation.

The theory can be summarized as follows:

• Human beings have wants and desires which influence their behaviour. Only

unsatisfied needs influence behaviour, satisfied needs do not.

• Since needs are many, they are arranged in order of importance, from the basic to the

complex.

• The person advances to the next level of needs only after the lower level need is at

least minimally satisfied.

• The further the progress up the hierarchy, the more individuality, humanness and psychological health a person will show.

The needs, listed from basic (lowest-earliest) to most complex (highest-latest) are

as follows:

• Physiology (hunger, thirst, sleep, etc.)

• Safety/Security/Shelter/Health

• Belongingness/Love/Friendship

• Self-esteem/Recognition/Achievement

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• Self actualization

(I) Physiological needs:

These are important needs for sustaining the human life. Food, water, warmth, shelter, sleep,

medicine and education are the basic physiological needs which fall in the primary list of need

satisfaction. Maslow was of an opinion that until these needs were satisfied to a degree to

maintain life, no other motivating factors can work.

(ii) Security or Safety needs:

These are the needs to be free of physical danger and of the fear of losing a job, property, food

or shelter. It also includes protection against any emotional harm.

(iii) Social needs:

Since people are social beings, they need to belong and be accepted by others. People try to

satisfy their need for affection, acceptance and friendship.

(iv) Esteem needs:

According to Maslow, once people begin to satisfy their need to belong, they tend to want to

be held in esteem both by themselves and by others. This kind of need produces such

satisfaction as power, prestige status and self-confidence. It includes both internal esteem

factors like self-respect, autonomy and achievements and external esteem factors such as

states, recognition and attention.

(v) Need for self-actualization:

Maslow regards this as the highest need in his hierarchy. It is the drive to become what one is

capable of becoming; it includes growth, achieving one’s potential and self-fulfilment. It is to

maximize one’s potential and to accomplish something.

As each of these needs are substantially satisfied, the next need becomes dominant. From the

standpoint of motivation, the theory would say that although no need is ever fully gratified, a

substantially satisfied need no longer motivates. So if you want to motivate someone, you

need to understand what level of the hierarchy that person is on and focus on satisfying those

needs or needs above that level.

Maslow’s need theory has received wide recognition, particularly among practicing managers.

This can be attributed to the theory’s intuitive logic and ease of understanding.

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Theory X and Theory Y” of Douglas McGregor:

McGregor, in his book “The Human side of Enterprise” states that people inside the

organization can be managed in two ways. The first is basically negative, which falls under

the category X and the other is basically positive, which falls under the category Y. After

viewing the way in which the manager dealt with employees, McGregor concluded that a

manager’s view of the nature of human beings is based on a certain grouping of assumptions

and that he or she tends to mould his or her behaviour towards subordinates according to these

assumptions.

Under the assumptions of theory X:

• Employees inherently do not like work and whenever possible, will

attempt to avoid it.

• Because employees dislike work, they have to be forced, coerced or

threatened with punishment to achieve goals.

• Employees avoid responsibilities and do not work fill formal

directions are issued.

• Most workers place a greater importance on security over all other

factors and display little ambition.

In contrast under the assumptions of theory Y:

• Physical and mental effort at work is as natural as rest or play.

• People do exercise self-control and self-direction and if they are

committed to those goals.

• Average human beings are willing to take responsibility and exercise

imagination, ingenuity and creativity in solving the problems of the

organization.

• That the way the things are organized, the average human being’s

brainpower is only partly used.

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On analysis of the assumptions it can be detected that theory X assumes that lower-order

needs dominate individuals and theory Y assumes that higher-order needs dominate

individuals. An organization that is run on Theory X lines tends to be authoritarian in nature,

the word “authoritarian” suggests such ideas as the “power to enforce obedience” and the

“right to command.” In contrast Theory Y organizations can be described as “participative”,

where the aims of the organization and of the individuals in it are integrated; individuals can

achieve their own goals best by directing their efforts towards the success of the organization.

Herzberg’s two-factor theory

Frederick Herzberg's two-factor theory, intrinsic/extrinsic motivation, concludes that certain

factors in the workplace result in job satisfaction, but if absent, they don't lead to

dissatisfaction but no satisfaction.

The factors that motivate people can change over their lifetime, but "respect for me as a

person" is one of the top motivating factors at any stage of life.

He distinguished between:

Motivators; (e.g. challenging work, recognition, responsibility) which give positive

satisfaction, and

Hygiene factors; (e.g. status, job security, salary and fringe benefits) that do not motivate if

present, but, if absent, result in demotivation.

The name Hygiene factors is used because, like hygiene, the presence will not make you

healthier, but absence can cause health deterioration.

The theory is sometimes called the "Motivator-Hygiene Theory" and/or "The Dual Structure

Theory."

Herzberg's theory has found application in such occupational fields as information systems

and in studies of user satisfaction.

Alderfer’s ERG theory

Alderfer, expanding on Maslow's hierarchy of needs, created the ERG theory (existence,

relatedness and growth). Physiological and safety, the lower order needs, are placed in the

existence category, while love and self esteem needs are placed in the relatedness category.

The growth category contains our self-actualization and self-esteem needs.

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Self-determination theory

Self-determination theory, developed by Edward Deci and Richard Ryan, focuses on the

importance of intrinsic motivation in driving human behaviour. Like Maslow's hierarchical

theory and others that built on it, SDT posits a natural tendency toward growth and

development. Unlike these other theories, however, SDT does not include any sort of

"autopilot" for achievement, but instead requires active encouragement from the environment.

The primary factors that encourage motivation and development are autonomy, competence

feedback, and relatedness.

McClelland’s Theory of Needs:

David McClelland has developed a theory on three types of motivating needs:

Need for Power

Need for Affiliation

Need for Achievement

Basically people for high need for power are inclined towards influence and control. They like

to be at the centre and are good orators. They are demanding in nature, forceful in manners

and ambitious in life. They can be motivated to perform if they are given key positions or

power positions.

In the second category are the people who are social in nature. They try to affiliate themselves

with individuals and groups. They are driven by love and faith. They like to build a friendly

environment around themselves. Social recognition and affiliation with others provides them

motivation.

People in the third area are driven by the challenge of success and the fear of failure. Their

need for achievement is moderate and they set for themselves moderately difficult tasks. They

are analytical in nature and take calculated risks. Such people are motivated to perform when

they see at least some chances of success.

McClelland observed that with the advancement in hierarchy the need for power and

achievement increased rather than Affiliation. He also observed that people who were at the

top, later ceased to be motivated by this drives.

Equity Theory:

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As per the equity theory of J. Stacey Adams, people are motivated by their beliefs about the

reward structure as being fair or unfair, relative to the inputs. People have a tendency to use

subjective judgment to balance the outcomes and inputs in the relationship for comparisons

between different individuals. Accordingly, this observation is illustrated in a diagram in the

subsequent page:

If people feel that they are not equally rewarded they either reduce the quantity or quality of

work or migrate to some other organization. However, if people perceive that they are

rewarded higher, they may be motivated to work harder.

Broad theories

The latest approach in Achievement Motivation is an integrative perspective as lined out in

the "Onion-Ring-Model of Achievement Motivation" by Heinz Schuler, George C. Thornton

III, Andreas Frintrup and Rose Mueller-Hanson. It is based on the premise that performance

motivation results from the way broad components of personality are directed towards

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performance. As a result, it includes a range of dimensions that are relevant to success at work

but which are not conventionally regarded as being part of performance motivation.

Especially it integrates formerly separated approaches as Need for Achievement with e.g.

social motives like Dominance.

Goal-setting theory

Goal-setting theory is based on the notion that individuals sometimes have a drive to reach a

clearly defined end state. Often, this end state is a reward in itself. A goal's efficiency is

affected by three features: proximity, difficulty and specificity. An ideal goal should present a

situation where the time between the initiation of behaviour and the end state is close. This

explains why some children are more motivated to learn how to ride a bike than mastering

algebra. A goal should be moderate, not too hard or too easy to complete. In both cases, most

people are not optimally motivated, as many want a challenge (which assumes some kind of

insecurity of success). At the same time people want to feel that there is a substantial

probability that they will succeed. Specificity concerns the description of the goal in their

class. The goal should be objectively defined and intelligible for the individual.

1.19 SCOPE AND AREA OF STUDY

Specific employee attitude relating to Job satisfaction and Organizational commitment are

of major interest to the field of Organizational behaviour and the practise of human

resource management.

Job satisfaction is a significant determinant of organizational commitment. So the current

study concentrates on identifying the link between job satisfaction and organizational

commitment.

The study shall serve the following purpose

• Will help in identifying the factors which motivates employees in soft ware industry.

• Improves knowledge about the factors which can create commitment

• Helps to develop commitment-oriented organization policies.

• Helps to bring out new and motivating ideas in Human resources planning

• Will help to reduce employee turn over

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• It can improve the quality of HR practises

1.20 RESUME OF SUCCEEDING CHAPTERS

The current chapter deals with introduction into the Information technology industry and the

topic under study. The second chapter will be covering review of relevant literature and third

chapter deals research methodology. The fourth chapter will be having the statistical analysis

and interpretation of the data collected. Fifth chapter covers summary and conclusion.

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CHAPTER 11

REVIEW OF LITERATURE

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CHAPTER 11

REVIEW OF LITERATURE

2.1 INTRODUCTION

The loss of skilled IT professionals is very expensive. Annual rates of turnover in IT

departments have been estimated up to 20% or more. In addition to the cost of replacing the

experienced staff turnover takes its toll on productivity and morale through disruption of

projects, heavier workloads and negative impact on team cohesion. Some sources view high

turnover as inevitable consequence of tremendous demand for technology skills .The only

remedy for this trend is research and development to increase commitment among IT

professionals.

The literature review of this thesis is divided into three parts. The first part begins with

literature review on job satisfaction. Second part covers organizational commitment and the

last part on motivation. Finally from the review of literature gap is identified for the current

study.

2.2 STUDIES ON JOB SATISFACTION, ORGANIZATIONAL COMMITMENT AND

MOTIVATION

The present study is based on the rationale that turnover intentions among software

professionals are largely in agreement with theoretical models of job satisfaction,

organizational commitment, and turnover. Research on turnover and retention in IT does not

much support the claim that IT turnover can be independent of job satisfaction, but rather

suggest that IT employees seem to be quicker to change jobs than other employees when they

are dissatisfied with their current employer (Hacker, 2003)

Adnan, Riaz . and Muhammad, Ramay. (2010) conducted a study to find out the antecedents

of Job satisfaction in telecom sector. The research was conducted to identify the factors that

lead to job satisfaction and commitment of employees working for telecom sector in Pakistan.

Through questionnaire survey responses from 221 employees working at managerial and non-

managerial positions were collected, which showed the significant association of supervision

and collegiality and open communication on job satisfaction. The correlation results show the

high association of performance appraisal system with career development and management,

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which indicates that if employees are promoted on the basis of performance, then it increases

job satisfaction. Secondly, communication is also found highly correlated with job satisfaction

and job commitment, pertaining that open flow of communication not only provides

satisfaction but also confer a sense of loyalty to and identification with the organization.

Thirdly, job satisfaction was found most significantly related with job commitment in this

study.

According to the study conducted by Gunlu, Ebru; and Aksarayli, Mehmet (2010) on Job

satisfaction and Organizational commitment of hotel managers in Turkey, the findings

indicate that extrinsic, intrinsic, and general job satisfaction have a significant effect on

normative commitment and affective commitment. In addition, the findings suggest that the

dimensions of job satisfaction do not have a significant effect on continuance commitment

among the managers of large-scale hotels. When the characteristics of the sample are

regarded, age, income level, and education have a significant relationship with extrinsic job

satisfaction whereas income level indirectly affects affective commitment.

Several studies are done on the area of job satisfaction in software industry. According to the

2009 Job Satisfaction Survey, released on June 28 by the Society for Human Resource

Management (SHRM) at its 61st Annual Conference and Exposition in New Orleans the

result shows majority of the employees (58%) reports that the current recession has not

affected the overall job satisfaction. The employees those who participated in the survey sited

job security as the number one aspect of job satisfaction.

The study conducted by the Chartered Institute of Personnel and Development(CIPD)in

2009 reports that job satisfaction among employees in UK has increased despite of

recession.CIPD suggest that rise could be attributed to the fact that people are more likely to

adopt a grin and bear it attitude during recession. The survey also suggests that there are some

underlying problems that could cause weakened morale in the near future. 75% of

respondents have stated that their organisation has been affected by the recession with half of

them reporting an increase in work-related stress as a consequence.

According to the results of a job satisfaction survey conducted by ExecuNet nearly two-thirds

(64 per cent) of the 306 IT executives who responded to the survey said they were satisfied

with their jobs.

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Despite having to cope with massive budget cuts, salary freezes and demoralized staffs, most

employed IT executives are more satisfied with their jobs in 2009 than they have been in

previous years, according to the results of a job satisfaction survey conducted by ExecuNet.

Nearly two-thirds (64 per cent) of the 306 IT executives who responded to the survey said

they were satisfied with their jobs. That's an 11 percent increase over 2008, when 286 IT

leaders responded to the survey. In 2007, only 41 percent of IT executives reported being

happy with their jobs even though the economy was arguably much stronger then than it is

now.

IT executives cited work they enjoy (checked by 13 per cent), a good relationship with their

bosses (12.5 per cent), and a comfy fit with their employers (10.2 per cent) as the primary

reasons for job satisfaction.

Among the 36 percent of IT leaders who indicated that they aren't happy with their jobs, their

top reasons were limited advancement opportunities (noted by 14 per cent), compensation

(11.3 per cent) and lack of challenge (10 per cent).

The comparative study conducted by Catherine.T. Kwantes (2009) among engineers on job

satisfaction and organizational commitment in India and in America revealed that Job

satisfaction is found to relate to affective commitment in both the Indian and American

samples.

Mahmoud AL-Hussami (2008) conducted a study on Nurses' Job Satisfaction: The

Relationship to Organizational Commitment, Perceived Organizational Support, Transactional

Leadership, Transformational Leadership, and Level of Education in South-eastern United

States. The findings indicated that there was a strong correlation between job satisfaction an

organizational commitment. Job satisfaction and organizational commitment were found to be

significantly related in all 20 of the correlation items. The results suggested that the nurses'

strongest attitudes towards organizational commitment and job satisfaction were their feelings

of strong loyalty to their organization and satisfaction with the job itself. Also nurses' job

satisfaction and perceived organizational support were determined to be significantly related.

A correlation of (N=55), R (55) =.93, P < .05 was obtained between job satisfaction and

organizational support.

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Mosadeghrad,A.M;Ferlie,E.and Rosenberg.(2008) undertook a study to find out the

relationship between job satisfaction, organizational commitment and turnover intention

among hospital employees .The result indicated that hospital employees are moderately

satisfied and committed. Employee’s job satisfaction and organizational commitment were

closely inter related and correlated with turnover intention. As job satisfaction and

organizational commitment have strong correlation with turnover, it is very important to

reinforce them by applying the right human resource policies.

Adeyinka Tella; C.O Ayeni; and S O Popoola (2007) conducted a study on Work Motivation,

Job Satisfaction, and Organisational Commitment of Library Personnel in Academic and

Research Libraries in Oyo State, Nigeria. The findings of this study reveal that a correlation

exists between perceived motivation, job satisfaction, and commitment, although correlation

between motivation and commitment was negative. No difference was observed in the

perceived motivation of professional and non-professional library personnel. Moreover,

findings also show that differences exist in the job satisfaction of library personnel in

academic and research libraries, and that no relationship exists in the organizational

commitment of library personnel based on their years of experience.

According to the study conducted by Smeenk; Elisinga; Teelken J.C (2006) among Dutch

university employees revealed that compensation, training and development, positional tenure

and career mobility have significant effect on organizational commitment. Age ,organizational

tenure, level of autonomy, working hours, social involvement and personal importance

significantly affect the employees organizational commitment in the hegemonist faculty.

A study conducted by Ali Mohammed (2005) on the relationship between job satisfaction,

organisational commitment and turnover intention among hospital employees in Iran

identified that employees job satisfaction and organizational commitment were closely inter

related and correlated with turnover intention .

The study conducted by Curtin university of technology on job satisfaction and affective

commitment of employees in tourism industry (2005) revealed that the three most important

factors to motivate employees are interesting work, job security and opportunities for

advancement and development. The study identified that all 10 factors of the Kovach’s Ten

Job –Related factors were important towards creating job motivation for employees in the

tourism industry in Sarawak, Malaysia. Satisfaction towards ‘salary’ was found to have a

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significant positive relationship with affective commitment. However, age did not moderate

the relationships between job satisfaction and organizational commitment. All the five facets

of job satisfaction did not show significant relationships with continuance commitment. Age

did not have a direct influence on continuance commitment. Similarly, no significant

interaction effect between facets of job satisfaction and age on continuance commitment was

found in this study. Only satisfaction towards supervision showed a significant positive

relationship with normative commitment. It is plausible that when employees judge the

organization to be providing good supervision, positive feelings of well being will be created.

This is likely to stimulate them to reciprocate by increasing their sense of obligation to the

organization and the belief that staying is the ‘right thing’ to do to the organization. Age also

did not have a direct effect and interaction effect with the facets of job satisfaction to predict

normative commitment.

According to the study conducted by A.K Paul and Anathraman (2004) among Indian

software professionals, the study's results emphasize the role of such HRD variables as

inculcating and enhancing organizational commitment, and suggest that HRD practitioners

and researchers should further develop commitment-oriented organization policies.

According to the study conducted by Timothy Lee Dore (2004) on the relationship between

job characteristics, job satisfaction and turnover intention among software developers, the

result of the study uncovered several factors that can influence turnover intentions. Identified

in the study as statistically significant job characteristics that can be influenced by

management are training, autonomy, feedback, task significance and skill and variety.

Job satisfaction as a significant determinant of organizational commitment has been well

documented in numerous studies (Porter et al., 1974; Mottaz, 1987; Williams and Anderson,

1991; Vanderberg and Lance, 1992; Knoop, 1995; Young, Worchel and Woehr, 1998; Testa,

2001).

A large number of research reviews have concluded that organizational commitment plays an

important role in predicting work behaviour. Research has also shown that organizational

commitment significantly correlates with job satisfaction, organizational citizenship

behaviour, turnover intentions, work performance, employee motivation and thus appears to

be a crucial factor in understanding and enhancing work effectiveness ( Mowday , 1982;

Mathieu and Zajac, 1990; Cohen, 1993a and 1993b; Meyer and Allen, 1997; Meyer et al.,

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2002; Cooper-Hakim and Viswesvaran, 2005; Riketta and Van Dick, 2005; Chughtai and

Zafar, 2006; and Kumar and Giri, 2007). Employees with low level of commitment are more

likely to leave their organizations whereas highly committed employees wish to remain with

their employing organizations (Mowday et al., 1982; Cohen, 1993a and 1993b; and Meyer et

al., 2002).

The significance and importance of the concept of organizational commitment in terms of

leading to beneficial organizational and desirable outcomes such as increased effectiveness,

reducing absenteeism and turnover, has been documented by many studies such as those of

Steers (1977); Porter et al. (1974); Reiches (1985) and Tett and Meyer (1993). These positive

linkages between organizational commitment and desirable organizational outcomes may be

due to the findings by Hrebiniak and Alutto (1972) as well as Angle and Perry (1983) that

organizational commitment is considered to be the result of an individual-organization

relationship, where individuals attach themselves to the organization in return for certain

valued rewards or payments from the organization. Hence, it is likely that job satisfaction is a

dominant factor influencing organizational commitment of employees.

Overall the historical disconnect between the business line and the IT department is a key

contributor to job dissatisfaction among software developers and consequently to turnover

intentions(McEachern,2001).Rapid obsolescence of acquired knowledge and skills that

characterizes IT has contributed to a mind set in which changing jobs frequently viewed as a

professional asset as opposed to a stigma or liability(Hacker,2003).

Several sources emphasize that even with generous financial rewards; IT employees are likely

to be dissatisfied in a work environment that stifles creativity and fails to respect their

professional expertise (Fisher, 2000; Rouse, 2001; Thatcher, 2002).

Guimares and Igbaria (1992) found that for information systems the most powerful predictors

of turnover intention s were organizational commitment, overall job satisfaction, role

dynamics and employee age and tenure.

A study conducted to find out how the cross strait employees in Taiwan and Mainland China

affect human resource management on organizational commitment and organizational

citizenship behaviour found that age significantly influence organizational commitment and

selection and retention have significance for the value commitment and retention commitment

(Chen,H.R;Liu.y;Cheng,B.W;Chiu H.C,2009).

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A study conducted to identify the important motivational factors for professionals in Greek

hospitals (2009) found that Hospital employees report being motivated more by intrinsic

factors, implying that these should be a target of effective employee motivation. Furthermore,

existing individual differences should be a concern in the manager's motivational agenda,

despite this indeed being sometimes unfeasible. The next best thing is strategies for specific

demographic and professional subgroups, exploiting empirical information from studies such

as the present. The problems and solutions to motivation issues can be complex, and thus

research and the timeless theories of Maslow, Herzberg and others (despite not ever having

received empirical support from research) can offer ideas and solutions to motivation

problems.

Motivation is not observed directly. “Motivation is an internal state that causes people to

behave in a particular way to accomplish particular goals and purposes. It is possible to

observe the outward manifestations of motivation but not motivation itself” (Denhardt et al.,

2008,). For instance, the acquisition of money may be an extrinsic motivator, but it is simply

the manifestation of the internal drive to meet intrinsic needs like purchasing food, paying

rent for shelter, or acquiring high social status.

Motivation is different from satisfaction. “Put simply, satisfaction is past oriented, whereas

motivation is future oriented” (Denhardt et al., 2008, p. 147). Motivation is not directly

controllable. “Motivation is not something that people do to others. Motivation occurs within

people’s minds and hearts. Managers can influence the motivational process, but they cannot

control it” (Denhardt et al., 2008, p. 148).

While a worker may be very satisfied by the compensation of their job, there are countless

instances where these workers are not entirely motivated to continue doing what they

can (Igalens & Roussel, 1999).

In North Vietnam a study was conducted to identify the motivating factors among rural health

workers by Marjolein Dieleman; Pham Viet Cuong; Le Vu Anh; Tim Martineau (2003). The

study showed that motivation is influenced by both financial and non-financial incentives.

The main motivating factors for health workers were appreciation by managers, colleagues

and the community, a stable job and income and training. The main discouraging factors were

related to low salaries and difficult working conditions.

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Research on work motivation confirms that it improves workers' performance and

satisfaction. For example, Brown and Shepherd (1997) examine the characteristics of the

work of teacher-librarians in four major categories: knowledge base, technical skills, values,

and beliefs. He reports that they will succeed in meeting this challenge only if they are

motivated by deeply-held values and beliefs regarding the development of a shared vision.

Jayarantne, Vinokur, and Chess (1994) examine agency-influenced work and employment

conditions, and assess their impact on social workers' job satisfaction. Some motivational

issues were salary, fringe benefits, job security, physical surroundings, and safety. Certain

environmental and motivational factors are predictors of job satisfaction. While Colvin (1998)

shows that financial incentives will get people to do more of what they are doing, Silverthrone

(1996) investigates motivation and managerial styles in the private and public sector. The

results indicate that there is a little difference between the motivational needs of public and

private sector employees, managers, and non-managers.

Motivation is not always conscious. Unconscious motivation is quite central to Sigmund

Freud’s theories of human behaviour. Freud posits that most human behaviour is the result of

unconscious repressed memories, impulses, and desires that influence and drive many human

behaviours (Freud, 1976). A manifestation of this idea is the “Freudian slip” where an

accidental word slip actually betrays true internal feelings and intentions.

Content theories are centered around the assumption that individuals all share a similar set of

human needs and that we are all motivated to satisfy those needs (e.g., Maslow, 1946;

McGregor, 1957; Herzberg, 1968; Alderfer, 1969; McClelland, 1988). Process theories are

centered around the rational cognitive process and say that while most people may have

similar needs, the importance and placement of those needs is different for everyone; that it is

something highly subjective (e.g., Skinner, 1935; Festinger, 1957; Adams, 1963; Vroom,

1967; Porter & Lawler, 1968; Kahler, 1975; Locke et al., 1990)

Motivation is a very important part of understanding behaviour. Luthan (1998) asserts that

motivation should not be thought of as the only explanation of behaviour, since it interacts

with and acts in conjunction with other mediating processes and with the environment. Luthan

stress that, like the other cognitive process, motivation cannot be seen. All that can be seen is

behaviour, and this should not be equated with causes of behaviour. While recognizing the

central role of motivation, Evans (1998) states that many recent theories of organizational

behaviour find it important for the field to re-emphasize behaviour. The key to understanding

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the process of motivation lies in the meaning of, and relationship among, needs, drives, and

incentives. Relative to this, Minner, Ebrahimi, and Watchel, (1995) state that in a system

sense, motivation consists of these three interacting and interdependent elements, i.e., needs,

drives, and incentives.

According to the study conducted by Buckingham and Coffman(1999), to build commitment,

managers must communicate with employees; assess their capacity to engage in various

initiatives; give honest feedback; develop their strengths; identify their ‘blind-spots’; make

decisions; and most of all, value each person’s unique style and capabilities .

Management researchers have long believe that organizational goals are unattainable without

the enduring commitment of members of the organizations. Motivation is a human

psychological characteristic that contributes to a person's degree of commitment (Stoke,

1999). It includes the factors that cause, channel, and sustain human behaviour in a particular

committed direction. Stoke, in Adeyemo (1999) goes on to say that there are basic

assumptions of motivation practices by managers which must be understood. First, that

motivation is commonly assumed to be a good thing. One cannot feel very good about oneself

if one is not motivated. Second, motivation is one of several factors that go into a person's

performance. Factors such as ability, resources, and conditions under which one performs are

also important. Third, managers and researchers alike assume that motivation is in short

supply and in need of periodic replenishment. Fourth, motivation is a tool with which

managers can use in organizations. If managers know what drives the people working for

them, they can tailor job assignments and rewards to what makes these people "tick."

Motivation can also be conceived of as whatever it takes to encourage workers to perform by

fulfilling or appealing to their needs. To Olajide (2000), "it is goal-directed, and therefore

cannot be outside the goals of any organization whether public, private, or non-profit".

2.3 OVERVIEW

In IT sector high turnover is not an inevitable consequence of the technology field, but a

problem that can be successfully addressed by understanding root causes and adopting HR

strategies that can improve commitment, satisfaction and motivation among employees.

Thus with the review of literature, it becomes evident that though a lot of studies are

conducted separately on commitment, satisfaction and motivation but very few studies are

there on IT sector linking these three .So it is crucial to conduct a study on job satisfaction and

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organizational commitment in information technology industry and also to identify the

important motivating factors to retain the highly talented workforce.

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CHAPTER 111

RESEARCH METHODOLOGY

CHAPTER 111

RESEARCH METHODOLOGY

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3.1 INTRODUCTION

Job Satisfaction can be an important indicator of how employees feel about their jobs and a

predictor of work behaviours .Although several studies are done in the field of organizational

commitment for almost four decades; few studies have involved software professionals. A

study in India reveals that HRM practices such as employee-friendly work environment,

career development, development oriented appraisal, and comprehensive training show a

significant positive relationship with organizational commitment. This study examines the

organizational commitment, what motivates the employees involved in the software industry

in India, their level of job satisfaction and the influence of job satisfaction on organizational

commitment.

3.2 STATEMENT OF THE PROBLEM

Organizational commitment and Job satisfaction -A study of employees in the Information

Technology industry in Bangalore, India.

3.3 OPERATIONAL DEFINITIONS

3.3.1 Organizational Commitment

The current study based on the Three-Component Model (TCM) of commitment (Meyer &

Allen, 1991;1997), the TCM Employee Commitment Survey measures three forms of

employee commitment to an organization: desire-based (affective commitment), obligation-

based (normative commitment) and cost-based (continuance commitment).

Research conducted to test the three-component model of commitment has demonstrated that

commitment can be characterized by different mindsets – desire, obligation, and cost (Meyer

& Allen, 1991, 1997). Employees with a strong affective commitment (high ACS scores) stay

because they want to, those with strong normative commitment (high NCS scores) stay

because they feel they ought to, and those with strong continuance commitment (high CCS

scores) stay because they have to do so.

Affective Commitment: Affective Commitment is defined as the employee's positive

emotional attachment to the organization. An employee who is affectively committed strongly

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identifies with the goals of the organization and desires to remain a part of the organization.

This employee commits to the organization because he/she "wants to". In developing this

concept, Meyer and Allen drew largely on Mowday, Porter, and Steers's (1982) concept of

commitment, which in turn drew on earlier work by Kanter (1968).

Continuance Commitment: The individual commits to the organization because he/she

perceives high costs of losing organizational membership (cf. Becker's 1960 "side bet

theory"), including economic costs (such as pension accruals) and social costs (friendship ties

with co-workers) that would be incurred. The employee remains a member of the organization

because he/she "has to".

Normative Commitment: The individual commits to and remains with an organization

because of feelings of obligation. These feelings may derive from many sources. For example,

the organization may have invested resources in training an employee who then feels a 'moral'

obligation to put forth effort on the job and stay with the organization to 'repay the debt.' It

may also reflect an internalized norm, developed before the person joins the organization

through family or other socialization processes, that one should be loyal to one's organization.

The employee stays with the organization because he/she "ought to".

3.32 Job Satisfaction

Job satisfaction has been defined as a pleasurable emotional state resulting from the appraisal

of one’s job; an affective reaction to one’s job; and an attitude towards one’s job. Weiss (2002)

has argued that job satisfaction is an attitude but points out that researchers should clearly

distinguish the objects of cognitive evaluation which are affect (emotion), beliefs and

behaviours .This definition suggests that we form attitudes towards our jobs by taking into

account our feelings, our beliefs, and our behaviours.

Job satisfaction can also be defined as either as the overall or general job satisfaction of an

employee or as the satisfaction with certain facets of the job such as the work itself ,co-

workers,supervision,pay, working conditions, company policies, procedures and

opportunities for promotion(Smith et al.,1969).Based upon these two view points of job

satisfaction , it may be measures either as the general or overall satisfaction of an employee

with the job or it may be measured as the satisfaction of an employee with the various work

facets. For the present study the former view of job satisfaction has adopted.

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3.4 VARIABLES UNDER INVESTIGATION

Dependent variable-The dependent variable is Organizational Commitment (Affective

commitment, Normative commitment and Continuance commitment)

Independent Variable- The independent variable in this study is job satisfaction.

Demographic Variables-Gender, Age, Experience, Education, Management level and Marital

status

3.5 OBJECTIVES OF THE STUDY

The main objectives set for the study are

1. To determine organizational commitment of software professionals using the revised

Organizational Commitment Scales (Meyer, Allen and Smith 1993)

2. To measure the job satisfaction level of software professionals.

3. Identify the relationship between level of job satisfaction and organizational

Commitment.

4. Examine whether the commitment and job satisfaction will differ according to

the age level of the employees.

5. Relative ranking of motivating factors using Kovach’s (1999) Ten Job-Related Factors.

3.6 HYPOTHESES

The following hypotheses is developed from the objectives

H1: The higher the level of job satisfaction, the greater the level of Affective

commitment.

H2: Job satisfaction and commitment will differ according to age of the employees.

3.7 SETTING

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This study focused on the Bangalore IT industry as Bangalore is also referred to as the

Silicon Valley of India. In India Bangalore has the highest number of software companies. So

the current study concentrated on Bangalore IT professionals.

3.8 POPULATION

The population for the study was all technical employees in the Information technology

Industry in Bangalore city. There are around 1200 IT and ITES organizations operating in

India. In these are 250 are multinational companies. There are around 200 IT companies in

Bangalore and 160 of these companies have their technology related operations in Bangalore.

Research design -The research design which is used in this study is descriptive.

3.9 SAMPLE OF THE STUDY

The sample-For the present study data was collected with the help of structured questionnaire

from 300 employees working in software industry. The study is concentrated on Bangalore IT

industry. The researcher used non probabilistic sampling (purposive sampling) method as

sampling design. Samples were selected from 10 top IT multinational companies. Samples

were drawn from three levels of management including entry level, middle level and top

level employees. The pertinent information for the study is collected from both primary and

secondary sources.

Table 3.1 showing the distribution of the sample according to the age level of employees

IT employees based on their age Number of IT employees based on age

Percentage

Below 30 years 116 Male 71 38.7%

Female 45

30-40 yrs 114 Male 67 38%

Female 47

40 yrs and above 70 Male 46 23.3%

Female 24

Total 300 100

3.10 PROFILE OF RESPONDENTS

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The respondents selected for the study was drawn from top listed multinational companies in

Bangalore. The following table present the profile of respondents.

Table 3.2 indicating the frequency and percentage of gender distribution of respondents

Gender Frequency PercentageMale 184 61.3

Female 116 38.7Total 300 100

For the current study there was larger percentage of male (61.3%) than female (38.7%) in the

sample.

Table 3.3 indicating the frequency and percentage of qualification of respondents.

Qualification Frequency PercentageGraduate 52 17.3

Post graduate 84 28Professional qualification 164 54.7

Total 300 100

Most of the respondents had professional qualification (54.7%).Others were graduate (17.3%)

and post graduate (28%).

Table 3.4 indicating the marital status of respondents

Marital status Frequency PercentageMarried 182 60.7Single 118 39.3Others - -Total 300 100

For the current study majority of the respondents were married (60.7%), followed by single

(39.3%).

Table 3.5 indicating frequency and percentage of experience of respondents in the

current company

Experience in the current company

Frequency Percentage

Less than 1 yr 63 21

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1-2 yrs 94 31.32-3 yrs 25 8.33-4yrs 38 12.74-5 yrs 48 16

5 yrs and above 32 10.7Total 300 100

In terms of experience in the current company most of the respondents were working since 1-

2 years(31.3%) followed by <1 year(21%),4-5 years(16%),3-4 years(12.7%),5 yrs and

above(10.7%) and least being 2-3 yrs(8.3%).

Table 3.6 indicating frequency and percentage of total experience of respondents

Total experience Frequency Percentage

2 yrs and below 59 19.72-5 yrs 94 31.35-10yrs 51 17

10-15 yrs 53 17.715-20yrs 35 11.7

Above 20yrs 8 2.6Total 300 100

In terms of total work experience most of the respondents were in the 2-5

yrs(31.3%),followed by 2 years and below(19.7%),10-15yrs(17.7%),5-10yrs(17%),15-20yrs

(11.7%) and least being above 20 years (2.6%).

3.11 THE INSTRUMENTS

The independent variable in this study is job satisfaction. The overall Job satisfaction was

measured using the 15-item questionnaire developed by Prof.Harold Andrew Patrick in 2009,

designed to measure 15 aspects of job. The aspects of overall job satisfaction are job

security,interest,opportunity for advancement,appreciation,company policy and management

practises, intrinsic aspects of a job,salary,supervision,social aspects of job, working

conditions,communication,hours,ease, benefits ,and fair treatment. Responses were collected

with the help of 7 point likert scale.

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Reliability-Pilot study was conducted to test the reliability .The Cronbachs alpha reliability

for the above scale was 0.924.

Reliability Statistics

Table 3.7 indicating reliability analysis of the Job satisfaction questionnaire

Cronbach's Alpha value Number of items

.924 15

15 item questionnaire Scale Mean if

Item Deleted

Scale Variance if Item Deleted

Corrected Item-Total Correlation

Cronbach's Alpha if Item

Deleted

Job security 61.23 248.599 .573 .921Interest 61.00 263.586 .468 .923

Opportunity for advancement 62.10 228.300 .819 .912Appreciation 62.33 228.092 .790 .914

Company policy and management practices

61.70 248.562 .625 .919

Intrinsic aspects of job 61.33 255.264 .498 .923salary 62.43 215.909 .877 .910

supervision 63.67 238.299 .752 .915Social aspects of job 60.97 256.861 .638 .920Working conditions 60.90 258.507 .601 .921

Communication 60.90 261.886 .513 .923Hours 62.87 241.154 .544 .923Ease 61.10 273.679 .161 .928

Benefits 62.47 219.637 .869 .910Fair treatment 62.73 224.823 .836 .912

The dependant variable, organizational commitment was measured using the revised

Organizational Commitment Scales (Meyer, Allen and Smith 1993) that is, the Affective

Commitment Scale (ACS), the Continuance Commitment Scale (CCS) and the Normative

Commitment Scale (NCS) with 24 questions on 7-point Likert scales. The reliability

coefficients for the three dimensions of organizational commitment were ACS scales (0.951),

CCS scales (0.627), NCS scales (0.796) while the overall reliability coefficient for all the 24

items of organizational commitment was 0.805.

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Table 3.8 indicating reliability analysis of the organizational commitment questionnaire

Cronbach's Alpha value Number of items

Affective Commitment Scale 0.951 8Continuance Commitment Scale 0.627 8Normative Commitment Scale 0.796 8

.

The Kovach ten job-related factors were used to determine what motivates the employees in

software industry. The respondents were asked to indicate the degree of importance of the

factors and relative ranking according to motivational importance.

Table 3.9 indicating reliability analysis of ranking of the motivational factors

Motivational Factors Mean rankinteresting work 4.07

appreciation of work 4.10feeling "in on things" 9.47

job security 3.20good wages 2.03

promotion/growth 3.07good working conditions 5.20

personal loyalty 7.83tactful discipline 8.83

sympathetic help with problems 7.20

3.12 DATA COLLECTION

The investigator collected the data from 300 IT employees working with 10 different IT

multinational companies. Researcher administered the questionnaire after giving sufficient

instruction to the respondents. The confidentiality of the responses was assured to the

respondents. After the data collection data was coded for further analysis.

3.13 ANALYSIS

The following statistical techniques were used to analyze the data.

Descriptive statistics-Frequency, percentage, mean and standard deviation

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The Pearson’s correlation coefficients were used to analyze the relationship between each of

the job satisfaction facets and organizational commitment.

ANOVA and Regression Analysis

Friedman test-Kovach’s ten job-related factors were ranked according to the order of

importance in motivating the employees. To analyse the data statistical package for social

sciences (SPSS) was used.

3.14 CONCLUSION

This chapter described the methodology adopted. This study used a descriptive design. The

purpose of descriptive surveys, according to Ezeani (1998), is to collect detailed and factual

information that describes an existing phenomenon. Data was collected from 300 IT

employees working in Bangalore city. The details of the statistical analysis are presented in

the next chapter.

CHAPTER 1V

STATISTICAL ANALYSIS AND INTERPRETATION

OF DATA

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CHAPTER IV

STATISTICAL ANALYSIS AND INTERPRETATION OF DATA

4.1 INTRODUCTION

This chapter covers analysis of the data and interpretation of the results. Data analysis

involves uncovering patterns and trends in data set and data interpretation is explaining those

patterns and trends.

Data was collected from 300 IT employees working with different multinational companies in

Bangalore. The SPSS –version 18 was used to analyze the data. The statistical techniques

used for the study were ANOVA, Karl Pearson’s correlation coefficient, Friedman test,

Regression, mean and standard deviation. The purpose of the study is to determine the

organizational commitment and job satisfaction of IT employees, and identify the

relationship.

4.2 CHARACTERISTICS AND DISTRIBUTION OF SAMPLE

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For the current study sample size was 300.Sample was selected from different multinational

IT companies in Bangalore city representing three managerial levels. After collecting the data,

it was coded for analysis. Numeric codes were used to convert responses.

4.3DEMOGRAPHIC PROFILE OF THE RESPONDENTS

The respondents were a cross-section of three hundred IT professionals with diverse

backgrounds.

Table 4.1 indicating the frequency and percentage of gender distribution of respondents

Gender Frequency Percent Valid percent Cumulative

Male 184 61.3 61.3 61.3Female 116 38.7 38.7 100Total 300 100 100

For the current study there was larger percentage of male (61.3%) than female (38.7%).

Table 4.2 showing the distribution of the sample according to the age level of employees

Age Frequency Percent Valid Percent Cumulativepercent

Below 30 yrs 116 38.7 38.7 38.730-40yrs 114 38 38 76.740-50yrs 70 23.3 23.3 100

Total 300 100 100

In terms of age, 38.7% of the respondents were below 30 years of age, 38.0% of the respondents were in the age group 30 - 40 years, and 23.3% of the respondents were in the age group 40 - 50 years.

Table 4.3 indicating the frequency and percentage of qualification of respondents

Qualification Frequency Percent Valid Percent Cumulative PercentGraduate 52 17.3 17.3 17.3

Post graduate 84 28 28 45.3Professional qualification 163 54.3 54.3 99.7

Others 1 .3 .3 100Total 300 100 100

Page 63: Organizational Commitment

Most of the respondents had professional qualification (54.7%).Others were graduate (17.3%)

and post graduate (28%).

Table 4.4 indicating the marital status of respondents

Marital Status Frequency Percent Valid Percent Cumulative percent

Married 182 60.7 60.7 60.7Single 118 39.3 39.3 100Total 300 100 100

For the current study majority of the respondents were married (60.7%), followed by single

(39.3%).

Table 4.5 indicating frequency and percentage of experience of respondents in the

current company

Experience in the current company

Frequency Percent Valid Percent Cumulative Percent

1-2yrs 63 21.0 21.0 21.02-3yrs 94 31.3 31.3 52.33-4yrs 25 8.3 8.3 60.74-5yrs 38 12.7 12.7 73.35-6yrs 48 16.0 16.0 89.3

6+ 32 10.7 10.7 100Total 300 100 100

In terms of experience in the current company most of the respondents were working since 2-

3 years(31.3%) followed by 1-2 year(21%),5-6 years(16%),4-5 years(12.7%),6 yrs and

above(10.7%) and least being 3-4 yrs(8.3%).

Table 4.6 indicating frequency and percentage of total experience of respondents

Total experience

Frequency Percent Valid percent Cumulative percent

2 yrs and below 59 19.7 19.7 19.7

Page 64: Organizational Commitment

2-5 yrs 94 31.3 31.3 51.05-10yrs 51 17 17 68.0

10-15 yrs 53 17.7 17.7 85.715-20yrs 35 11.7 11.7 97.4

Above 20yrs 8 2.6 2.6 100Total 300 100 100

In terms of total work experience most of the respondents were in the 2-5

yrs(31.3%),followed by 2 years and below(19.7%),10-15yrs(17.7%),5-10yrs(17%),15-20yrs

(11.7%) and least being above 20 years (2.6%).

Table 4.7 indicating the frequency and percentage of size of the organization

Size of the Organization

Frequency Percent Valid percent Cumulative percent

>1000employees

300 100 100 100

In terms of size of the organization, all the respondents were from organizations with one

thousand or more employees.

Table 4.8 indicating frequency and percentage of different managerial levels

Management level

Frequency Percent Valid percent Cumulative percent

Entry level 152 50.7 50.7 50.7Middle level 69 23.0 23.7 73.7Senior level 79 26.3 26.3 100.0

Total 300 100 100

In terms of management level, 50.7% of the respondents were at entry-level, 23.0% of the

respondents were at middle-level, and 26.3% were at senior-level.

4.4 DESCRIPTIVE STATISTICS

4.4.1 Affective Commitment

Table 4.9 indicating the mean and standard deviation for Affective commitment

Mean 3.7508

Page 65: Organizational Commitment

Standard deviation 1.26335Percentiles 25 2.6250

50 3.375075 5.0000

The level of affective commitment varied in the range 2.00 - 6.00, with two clusters, one in

the range 2.00 - 4.00, representing low affective commitment, and another in the range 4.00 -

6.00, representing high affective commitment.

8.006.004.002.000.00

AFFECTIVE COMMITMENT

40

30

20

10

0

Fre

qu

ency

Mean =3.7508Std. Dev. =1.26335

N =300

Histogram

4.4.2Continuance Commitment

Table 4.10 indicating the mean and standard deviation for Continuance commitment

Mean 4.0054Standard deviation .66946

Percentiles 25 3.500050 4.000075 4.5000

Page 66: Organizational Commitment

The level of continuance commitment was moderate for IT employees, varying in the range

3.00 - 5.00.

6.004.002.00

CONTINUANCE COMMITMENT

40

30

20

10

0

Fre

qu

ency

Mean =4.0054Std. Dev. =0.66946

N =300

Histogram

4.4.3Normative Commitment

Table 4.11 indicating the mean and standard deviation for Normative Commitment

Mean 3.4175Standard deviation .51985

Percentiles 25 3.125050 3.312575 3.7500

The level of normative commitment was moderate for technical employees working in IT

companies, varying in the range 2.50 - 5.00.

Page 67: Organizational Commitment

5.505.004.504.003.503.002.502.00

NORMATIVE COMMITMENT

50

40

30

20

10

0

Fre

qu

enc

y

Mean =3.4175Std. Dev. =0.51985

N =300

Histogram

4.4.4 Organizational Commitment

Table 4.12 indicating the mean and standard deviation for Organizational Commitment

Mean Standard Deviation

Continuance Commitment 4.0054 .66946Affective Commitment 3.7508 1.26335

Normative Commitment 3.4175 .51985

The level of organizational commitment was moderate, with relatively higher variability in

affective commitment. Mean value was highest for Continuance commitment indicating

employees are staying back with the organization because of the cost of leaving the

organisation or it’s too much trouble to go somewhere else.

Page 68: Organizational Commitment

4.4.5 Job Satisfaction

Table 4.13 indicating the mean and standard deviation for Job satisfaction

Mean Standard deviation

Social aspects of job 5.57 .895Working conditions(excluding hours) 5.46 1.070

Intrinsic Aspects of job(excluding ease) 5.42 .980Interest(from intrinsic aspect of job) 5.33 .919

Job security 5.33 1.127Communication 5.11 .982

Ease(from intrinsic aspect of job) 5.10 .939Benefits 4.47 1.665

Company policy and management practises 4.39 1.305Opportunity for advancement 4.30 1.480

Fair treatment 4.01 1.543Salary 3.97 2.086

Appreciation(from management) 3.74 1.506Supervision 3.25 1.590

Hours(from working conditions) 2.69 1.403

Amongst the items comprising the scale for job satisfaction, the items with highest

satisfaction levels were related to the social aspects of the job, working conditions (excluding

working hours), interest (from intrinsic aspects of the job), job security, communication, and

ease of the job (as an intrinsic aspect of the job). On the other hand, employees had lowest

satisfaction levels for working hours, supervision, appreciation from management, and salary.

Table 4.14 indicating the mean and standard deviation for overall Job Satisfaction

Mean 4.5422Standard deviation .77886

Percentiles 25 4.000050 4.566775 5.1833

Page 69: Organizational Commitment

8.006.004.002.000.00

JOB SATISFACTION

60

50

40

30

20

10

0

Fre

qu

en

cy

Mean =4.5422Std. Dev. =0.77886

N =300

Histogram

The level of job satisfaction was moderate, varying in the range 2.50 - 5.50, peaking near

5.00.

4.4.6 Motivational Factors

Table 4.15 indicating Friedman’s mean rank test for motivational factors of IT employees

Motivational Factors Mean Rank

Interesting work 4.17Appreciation of work 4.50Feeling “in on things” 9.27

Job security 3.48Good wages 1.53

Promotion /growth 2.01Good working conditions 5.59

Personal loyalty 7.74

Page 70: Organizational Commitment

Tactful discipline 9.30Sympathetic help with problems 7.41

Test Statistics

N 300Chi-Square 2361.009df 9Asymp.sig. .000

a. Friedman test

There was significant difference in importance of different motivational factors. The most

important motivational factors were good wages, promotion/growth, job security, interesting

work, and appreciation of work.

4.5 DIFFERENCE BETWEEN THE GROUPS-ANOVA

Organizational Commitment

Report

GenderMen Women Total

MeanAffective commitment Std.Deviation

3.7582 3.7392 3.75081.27948 1.24276 1.26335

MeanContinuance commitment Std.Deviation

4.0258 3.9731 4.0054.67373 .66427 .66946

Mean Normative commitment Std.Deviation

3.4552 3.3578 3.4175.57663 .57663 .51985

Table 4.16 indicating ANOVA for Organizational commitment and gender

Sum of Squares

df Mean Square

F Sig.

Affective Commitment Between the groupsGender Within groups

.025477.19

129

.0251.601

.016 .900

Page 71: Organizational Commitment

Total 3477.219

8299

Continuance Commitment Between the groupsGender Within groups Total

.198133.809134.007

1298299

.198

.449.441 .507

Normative Commitment Between the groupsGender Within groups Total

.67580.12780.802

1298299

.675

.2692.510

.114

There was no significant difference in organizational commitment between men and women

IT professionals.

Hypothesis- H2: Job satisfaction and commitment will differ according to age of the

Employees.

Report

Age<30yrs 30-40yrs 40-50yrs Total

MeanAffective commitment Std.Deviation

2.6099 4.1941 4.9196 3.7508.46132 1.19828 .55781 1.26335

MeanContinuance commitment Std.Deviation

4.1713 3.4441 4.6446 4.0054.48188 .47244 .45625 .66946

Mean Normative commitment Std.Deviation

3.1175 3.5702 3.6661 3.4175.43216 .50222 .44064 .51985

Table 4.17 indicating ANOVA for Organizational commitment and Age

Sum of Squares

df Mean Square

F Sig.

Affective Commitment Between the groupsAge Within groups Total

269.022208.196477.219

2297299

134.511.701

191.885

.000

Continuance Commitment Between the groupsAge Within groups Total

67.71866.289134.00

2297

33.859.223

151.699

.000

Page 72: Organizational Commitment

7 299

Normative Commitment Between the groupsAge Within groups Total

17.42563.37680.802

2297299

8.713.213

40.830 .000

There was significant difference in organizational commitment between age groups.

Organizational commitment was highest for IT professionals in the 40 - 50 yr. age group. In

particular, continuance commitment was lowest for IT professionals in the 30 - 40 yr. age

group.

Report

QualificationGraduate Post

graduateProfessional qualification

Others Total

Affective Commitment Mean Std.Deviation

3.3798 3.8452 3.8282 2.5000 3.75081.25391 1.26134 1.25347 1.2633

Continuance Commitment Mean Std.Deviation

4.1611 4.1146 3.8972 4.3750 4.0054.69985 .61213 .67414 .66946

Normative Commitment Mean Std.Deviation

3.4351 3.3973 3.4210 3.6250 3.4175.66027 .47496 .49534 .51985

Table 4.18 indicating ANOVA for Organizational commitment and Qualification

Sum of Squares

df Mean Square

F Sig.

Affective Commitment Between the groupsQualification Within groups Total

10.448466.771477.219

3296

3.4831.577

2.208

.087

Page 73: Organizational Commitment

299

Continuance Commitment Between the groupsQualification Within groups Total

4.305129.702134.007

3296299

1.435.438

3.275

.021

Normative Commitment Between the groupsQualification Within groups Total

.09580.70780.802

3296299

.032

.273.117 .950

There was significant difference in continuance commitment between IT professionals with

different qualifications. Continuance commitment was lowest for those with professional

qualifications. There was no significant difference in affective commitment and in normative

commitment between qualifications.

Report

Marital StatusMarried Single Total

MeanAffective commitment Std.Deviation

4.1813 3.0869 3.75081.20108 1.05555 1.26335

MeanContinuance commitment Std.Deviation

4.0144 3.9915 4.0054.77750 .45811 .66946

Mean Normative commitment Std.Deviation

3.4938 3.2998 3.4175.46256 .58015 .51985

Table 4.19 indicating ANOVA for Organizational commitment and Marital Status

Sum of Squares

df Mean Square

F Sig.

Affective Commitment Between the groupsMarital Status Within groups Total

85.749391.470477.219

1298299

85.7491.314

65.275

.000

Continuance Commitment Between the groupsMarital Status Within groups Total

.038133.969134.007

1298299

.038

.450.083 .773

Normative Commitment Between the groups 2.695 1 2.695 10.28 ..001

Page 74: Organizational Commitment

Marital Status Within groups Total

78.10780.802

298299

.262 3

There was significant difference in affective commitment and in normative commitment

between married and single IT professionals. Both affective commitment and normative

commitment were significantly lower for single IT professionals. There was no significant

difference in continuance commitment between married and single IT professionals.

Report

Years in present position1-2 2-3 3-4 4-5 5-6 6+ Total

Affective Commitment Mean Std.Deviation

2.7718 3.0027 4.1100 4.2467 4.9297 5.2383 3.7508

.66620 .98646 1.22598 1.00147 .47749 .62810 1.26335

Continuance Commitment Mean Std.Deviation

4.0496 3.9441 3.6550 4.0757 4.4349 3.6445 4.0054.43738 .56100 .64477 .86678 .64412 .77973 .66946

Normative Commitment Mean Std.Deviation

3.1210 3.2832 3.7050 3.6250 3.6589 3.5625 3.4175.40033 .58406 .38676 .36646 .45527 .45570 .51985

Table 4.20 indicating ANOVA for Organizational commitment and Years in present Position

Sum of Squares

df Mean Square

F Sig.

Affective Commitment Between the groupsYears in present position Within groups Total

263.075214.143477.219

5294299

52.615.728

72.236

.000

Continuance Commitment Between the groups Years in present position Within groups Total

16.754117.252134.007

5294299

3.351.399

8.402 .000

Normative Commitment Between the groupsYears in present position Within groups Total

14.40366.39980.802

5294299

2.881.226

12.755

.000

There was significant difference in organizational commitment based on years in the current

position. Affective commitment increased with years in the current position. Continuance

Page 75: Organizational Commitment

commitment varied considerably with years in current position, and was lowest for IT

professionals in their present position for six years or more. Normative commitment also

varied considerably with years in current position and was highest for professionals in their

position for 3-4 yrs.

Report

Overall work experience2 yrs and

below

2-5 5-10 10-15 15-20 20+ Total

Affective Commitment Mean Std.Deviation

2.6102 2.9215 4.1863 5.1274 4.8179 5.3438 3.7508

.41980 .87490 .99699 .64043 .58027 .48985 1.26335

Continuance Commitment Mean Std.Deviation

4.1377 4.0013 3.4387 3.9505 4.6250 4.3438 4.0054.45111 .56781 .52343 .80352 .55984 .58152 .66946

Normative Commitment Mean Std.Deviation

3.0572 3.3497 3.4828 3.6557 3.6500 3.8594 3.4175.33261 .59894 .44442 .38128 .41102 .66291 .51985

Table 4.21 indicating ANOVA for Organizational commitment and Overall work experience

Sum of Squares

df Mean Square

F Sig.

Affective Commitment Between the groupsOverall work experience Within groups Total

311.655165.563477.219

5294299

62.331.563

110.685 .000

Continuance Commitment Between the groups Overall work experience Within groups Total

31.924102.083134.007

5294299

6.385.347

18.388 .000

Normative Commitment Between the groups Overall work experience Within groups Total

14.76966.03380.802

5294299

2.954.225

13.151 .000

Page 76: Organizational Commitment

There was significant difference in organizational commitment based on overall work

experience. Affective commitment generally increased with overall work experience.

Continuance commitment varied considerably with overall work experience, and was lowest

for IT professionals with overall work experience of 5 -10 yrs. and 10 - 15 yrs. Normative

commitment generally increased with overall work experience.

Report

Management LevelEntry Middle Senior Total

MeanAffective commitment Std.Deviation

2.6686 4.7065 4.9984 3.7508.48150 .85126 .60893 1.26335

MeanContinuance commitment Std.Deviation

4.0313 3.4438 4.4462 4.0054.54917 .50800 .65739 .66946

Mean Normative commitment Std.Deviation

3.1480 3.7283 3.6646 3.4175.38263 .56513 .43048 .51985

Table 4.22 indicating ANOVA for Organizational commitment and Management level

Sum of Squares

df Mean Square

F Sig.

Affective Commitment Between the groupsManagement level Within groups Total

364.013113.206477.219

2297299

182.006.381

477.502

.000

Continuance Commitment Between the groups Management level Within groups Total

37.21196.796134.007

2297299

18.605.326

57.087 .000

Normative Commitment Between the groups Management level Within groups Total

22.52358.27980.802

2297299

11.262.196

57.391 ..000

There was significant difference in organizational commitment based on management level.

Affective commitment was highest for senior-level IT professionals. Continuance

Page 77: Organizational Commitment

commitment was highest for senior-level, and lowest for middle-level IT professionals.

Normative commitment was highest for middle- and senior-level IT professionals.

4.6 DIFFERENCE BETWEEN THE GROUPS-JOB SATISFACTION

Report

Job Satisfaction

Gender Mean Std.Deviation

Men 4.5261 .81339Women 4.5678 .72341

Total 4.5422 .77886

Table 4.23 indicating ANOVA for Job satisfaction and gender

Sum of Squares

df Mean Square

F Sig.

Job Satisfaction Between the groupsGender Within groups Total

.124181.257181.381

1298299

.124

.608.204 .652

There was no significant difference in job satisfaction between men and women IT professionals.

Report

Job Satisfaction

Age Mean Std.Deviation

Below 30 yrs 3.8713 .6039330-40yrs 4.8655 .6482340-50yrs 5.1276 .23556

Total 4.5422 .77886

Page 78: Organizational Commitment

Table 4.24 indicating ANOVA for Job satisfaction and Age

Sum of Squares

df Mean Square

F Sig.

Job Satisfaction Between the groupsAge Within groups Total

88.12393.257181.381

2297299

44.062.314

140.325

.000

There was significant difference in job satisfaction between IT professionals in different age

groups. Job satisfaction generally increased with age.

Report

Job Satisfaction

Qualification Mean Std.Deviation

Graduate 4.3218 1.02430Post graduate 4.6135 .71868Professional qualification 4.5800 .70868

Others 3.8667 -

Total 4.5422 .77886

Table 4.25 indicating ANOVA for Job satisfaction and Qualification

Sum of Squares

df Mean Square

F Sig.

Job Satisfaction Between the groupsQualification Within groups Total

3.642177.739181.381

3296299

1.214.600

2.022

.111

There was no significant difference in job satisfaction between IT professionals based on

qualifications.

Report

Job Satisfaction

Marital Status Mean Std.Deviation

Page 79: Organizational Commitment

Married 4.7689 .59890Single 4.1927 .89008Total 4.5422 .77886

Table 4.26 indicating ANOVA for Job satisfaction and Marital Status

Sum of Squares

df Mean Square

F Sig.

Job Satisfaction Between the groupsMarital Status Within groups Total

23.768157.613181.381

1298299

23.768.529

44.938

.000

There was significant difference in job satisfaction between married and single IT

professionals. Married IT professionals were generally more satisfied than single IT

professionals.

Report

Job Satisfaction

Years in present position Mean Std.Deviation

1-2yrs 3.9894 .64148

2-3yrs 4.2121 .778323-4yrs 4.9520 .69563

4-5yrs 4.7702 .65791

5-6yrs 5.0750 .29451

6+ 5.2104 .36987

Total 4.5422 .77886

Table 4.27 indicating ANOVA for Job satisfaction and Years in Present position

Sum of Squares

df Mean Square

F Sig.

Job Satisfaction Between the groupsYears in present position Within groups Total

63.584117.797181.38

5294

12.717.401

31.739

.000

Page 80: Organizational Commitment

1 299

There was significant difference in job satisfaction between IT professionals based on years in

the current position. Job satisfaction generally increased with years in current position.

Report

Job Satisfaction

Overall work Experience Mean Std.Deviation

2 Yrs and below 3.8994 .36291

2-5yrs 4.1213 .817025-10yrs 4.8850 .57008

10-15yrs 5.2616 .34514

15-20yrs 4.9810 .25595

20yrs and above 5.3583 .25927

Total 4.5422 .77886

Table 4.28 indicating ANOVA for Job satisfaction and Overall work experience

Sum of Squares

df Mean Square

F Sig.

Job Satisfaction Between the groupsOverall work experience Within groups Total

86.52194.860181.381

5294299

17.304.323

53.631

.000

There was significant difference in job satisfaction between IT professionals based on overall

work experience. Job satisfaction generally increased with overall work experience.

Report

Job Satisfaction

Management Level Mean Std.Deviation

Entry level 3.9412 .54894

Page 81: Organizational Commitment

Middle level 5.1739 .50633Senior level 5.1468 .30239

Total 4.5422 .77886

Table 4.29 indicating ANOVA for Job satisfaction and Management level

Sum of Squares

df Mean Square

F Sig.

Job Satisfaction Between the groupsManagement level Within groups Total

111.31470.067181.381

2297299

55.657.236

235.919

.000

There was significant difference in job satisfaction between IT professionals at different levels

of management. Job satisfaction was lower at entry-level than at middle- and senior-level of

management.

4.7 DIFFERENCE BETWEEN THE GROUPS-MOTIVATION

Table 4.30 indicating Motivation and Gender Mean

Mean

4.22 4.06 4.16

4.45 4.54 4.49

9.24 9.30 9.27

3.38 3.61 3.47

1.54 1.52 1.53

2.14 1.79 2.01

5.53 5.66 5.58

7.77 7.70 7.74

9.27 9.35 9.30

7.41 7.42 7.41

MF1. Interesting work

MF2. Appreciation of work

MF3. Feeling "in on things"

MF4. Job security

MF5. Good wages

MF6. Promotion/growth

MF7. Good working conditions

MF8. Personal loyalty

MF9. Tactful discipline

MF10. Sympathetic help with problems

men women Total

Gender

There was no difference between men and women IT professionals in the importance of

different motivational factors.

Table 4.31 indicating Mean for Motivation and Age

Page 82: Organizational Commitment

Mean

4.43 4.14 3.74 4.16

4.56 4.34 4.60 4.49

9.22 9.26 9.34 9.27

3.20 3.60 3.70 3.47

1.41 1.68 1.49 1.53

2.00 2.18 1.74 2.01

5.76 5.19 5.91 5.58

7.59 8.24 7.20 7.74

9.52 8.93 9.56 9.30

7.32 7.33 7.70 7.41

MF1. Interesting work

MF2. Appreciation of work

MF3. Feeling "in on things"

MF4. Job security

MF5. Good wages

MF6. Promotion/growth

MF7. Good working conditions

MF8. Personal loyalty

MF9. Tactful discipline

MF10. Sympathetic help with problems

below 30 yrs. 30 - 40 yrs. 40 - 50 yrs. Total

Age

There was no difference between IT professionals in different age groups in the importance of

different motivational factors.

Table 4.32 indicating Mean for Motivation and Qualification.

Mean

3.79 4.36 4.18 4.00 4.16

4.85 4.58 4.32 5.00 4.49

9.40 9.30 9.21 8.00 9.27

3.42 3.42 3.51 3.00 3.47

1.56 1.60 1.48 2.00 1.53

2.52 1.94 1.88 1.00 2.01

5.58 5.30 5.72 6.00 5.58

7.69 7.74 7.75 9.00 7.74

9.00 9.37 9.36 10.00 9.30

7.19 7.39 7.50 7.00 7.41

MF1. Interesting work

MF2. Appreciation of work

MF3. Feeling "in on things"

MF4. Job security

MF5. Good wages

MF6. Promotion/growth

MF7. Good working conditions

MF8. Personal loyalty

MF9. Tactful discipline

MF10. Sympathetic help with problems

graduate post-graduateprofessionalqualification others Total

Qualification

There was no difference between IT professionals with different qualifications in the

importance of different motivational factors.

Page 83: Organizational Commitment

Table 4.33 indicating Mean for Motivation and Marital Status

Mean

4.07 4.30 4.16

4.48 4.49 4.49

9.33 9.17 9.27

3.55 3.33 3.47

1.58 1.46 1.53

1.95 2.10 2.01

5.46 5.76 5.58

7.76 7.71 7.74

9.28 9.34 9.30

7.46 7.34 7.41

MF1. Interesting work

MF2. Appreciation of work

MF3. Feeling "in on things"

MF4. Job security

MF5. Good wages

MF6. Promotion/growth

MF7. Good working conditions

MF8. Personal loyalty

MF9. Tactful discipline

MF10. Sympathetic help with problems

married single Total

Maritial Status

There was no difference between married and single IT professionals in the importance of

different motivational factors.

Table 4.34 indicating Mean for Motivation and Years in present Position

Mean

4.49 4.33 3.96 4.21 3.56 4.00 4.16

4.32 4.70 4.68 4.34 4.33 4.44 4.49

9.16 9.44 9.08 9.21 9.23 9.25 9.27

3.37 3.13 3.64 3.89 3.81 3.50 3.47

1.30 1.46 1.64 1.63 1.65 1.81 1.53

1.98 2.24 2.08 1.79 1.94 1.66 2.01

5.70 5.45 5.28 5.61 5.65 5.84 5.58

7.56 7.66 8.32 7.87 7.46 8.19 7.74

9.70 9.21 9.04 8.95 9.52 9.09 9.30

7.43 7.36 7.36 7.50 7.58 7.22 7.41

MF1. Interesting work

MF2. Appreciation of work

MF3. Feeling "in on things"

MF4. Job security

MF5. Good wages

MF6. Promotion/growth

MF7. Good working conditions

MF8. Personal loyalty

MF9. Tactful discipline

MF10. Sympathetic help with problems

1 2 3 4 5 6+ Total

Years in Present Position

There was difference between IT professionals based on years in the current position in the

importance of different motivational factors. Promotion/growth was more important than

salary for IT professionals in their present position for six years or more.

Table 4.35 indicating Mean for Motivation and overall work experience

Page 84: Organizational Commitment

Mean

4.61 4.03 4.20 4.17 3.97 2.88 4.16

4.46 4.55 4.20 4.55 4.83 3.88 4.49

9.29 9.22 9.29 9.26 9.20 9.75 9.27

3.15 3.43 3.73 3.43 3.49 4.75 3.47

1.27 1.49 1.73 1.66 1.46 2.13 1.53

1.83 2.40 2.20 1.57 1.54 2.38 2.01

5.88 5.49 5.02 5.81 5.91 5.00 5.58

7.47 7.71 8.41 7.89 7.23 7.13 7.74

9.58 9.30 8.76 9.43 9.51 9.00 9.30

7.46 7.38 7.18 7.26 7.83 8.13 7.41

MF1. Interesting work

MF2. Appreciation of work

MF3. Feeling "in on things"

MF4. Job security

MF5. Good wages

MF6. Promotion/growth

MF7. Good working conditions

MF8. Personal loyalty

MF9. Tactful discipline

MF10. Sympathetic help with problems

2 yrs. andbelow 2 - 5 yrs. 5 - 10 yrs. 10 - 15 yrs. 15 - 20 yrs.

20 yrs. andabove Total

Overall Work Experience

There was difference between IT professionals based on overall work experience in the

importance of different motivational factors. Job security was less important than interesting

work and appreciation of work for IT professionals with twenty or more years of overall work

experience.

Table 4.36 indicating Mean for Motivation and Management level

Mean

4.44 3.90 3.85 4.16

4.57 4.23 4.56 4.49

9.24 9.26 9.32 9.27

3.40 3.38 3.67 3.47

1.38 1.86 1.53 1.53

1.95 2.48 1.71 2.01

5.54 5.35 5.86 5.58

7.71 8.26 7.35 7.74

9.41 8.87 9.47 9.30

7.34 7.28 7.67 7.41

MF1. Interesting work

MF2. Appreciation of work

MF3. Feeling "in on things"

MF4. Job security

MF5. Good wages

MF6. Promotion/growth

MF7. Good working conditions

MF8. Personal loyalty

MF9. Tactful discipline

MF10. Sympathetic help with problems

entry level middle level senior level Total

Management Level

There was no difference between IT professionals at different levels of management in the

importance of different motivational factors.

4.8 CORRELATION ANALYSIS

HYPOTHESIS

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H1: The higher the level of job satisfaction, the greater the level of Affective commitment.

Table 4.37 indicating Pearson correlation between Job satisfaction and Organizational commitment

Correlations

1 -.034 .531**

.278 .000

-.034 1 -.073

.278 .102

.531** -.073 1

.000 .102

Pearson Correlation

Sig. (1-tailed)

Pearson Correlation

Sig. (1-tailed)

Pearson Correlation

Sig. (1-tailed)

AFFECTIVE COMMITMENT

CONTINUANCE COMMITMENT

NORMATIVE COMMITMENT

AFFECTIVECOMMITMENT

CONTINUANCECOMMITMENT

NORMATIVECOMMITMENT

Correlation is significant at the 0.01 level (1-tailed).**.

There was significant positive correlation of job satisfaction with affective commitment and

normative commitment, and negative correlation with continuance commitment.

Table 4.38 indicating Pearson correlation between 15 items in Job satisfaction and Affective commitment

Page 86: Organizational Commitment

Correlations

.389

.000

.409

.000

.604

.000

.496

.000

.316

.000

.328

.000

.855

.000

.558

.000

.295

.000

.258

.000

.299

.000

.348

.000

-.008

.446

.787

.000

.700

.000

Pearson Correlation

Sig. (1-tailed)

Pearson Correlation

Sig. (1-tailed)

Pearson Correlation

Sig. (1-tailed)

Pearson Correlation

Sig. (1-tailed)

Pearson Correlation

Sig. (1-tailed)

Pearson Correlation

Sig. (1-tailed)

Pearson Correlation

Sig. (1-tailed)

Pearson Correlation

Sig. (1-tailed)

Pearson Correlation

Sig. (1-tailed)

Pearson Correlation

Sig. (1-tailed)

Pearson Correlation

Sig. (1-tailed)

Pearson Correlation

Sig. (1-tailed)

Pearson Correlation

Sig. (1-tailed)

Pearson Correlation

Sig. (1-tailed)

Pearson Correlation

Sig. (1-tailed)

JS1. Job Security

JS2. Interest (from intrinsic aspects of job)

JS3. Opportunity for advancement

JS4. Appreciation (from management)

JS5. Company policy and management practices

JS6. Intrinsic aspects of job (excluding ease)

JS7. Salary

JS8. Supervision

JS9. Social aspects of job

JS10. Working conditions (excluding hours)

JS11. Communication

JS12. Hours (from working conditions)

JS13. Ease (from intrinsic aspects of job)

JS14. Benefits

JS15. Fair treatment

AFFECTIVECOMMITMENT

Amongst the items comprising the scale for job satisfaction, the items with highest correlation

with affective commitment were related to the salary, benefits, fair treatment, opportunity for

advancement, and supervision. The items with moderate correlation were appreciation (from

management),interest (from intrinsic aspects of job),job security and intrinsic aspects of

job(excluding ease).The job satisfaction items with lowest correlation were working

conditions(excluding hours),social aspects of job, and communication.

4.9 REGRESSION ANALYSIS

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Regression of Affective Commitment on Job Satisfaction:

Model Summary

.819a .670 .669 .72663Model1

R R SquareAdjustedR Square

Std. Error ofthe Estimate

Predictors: (Constant), JOB SATISFACTIONa.

ANOVAb

319.878 1 319.878 605.842 .000a

157.341 298 .528

477.219 299

Regression

Residual

Total

Model1

Sum ofSquares df Mean Square F Sig.

Predictors: (Constant), JOB SATISFACTIONa.

Dependent Variable: AFFECTIVE COMMITMENTb.

Table 4.39 indicating regression of Affective commitment on Job satisfaction

Coefficientsa

-2.281 .249 -9.175 .000

1.328 .054 .819 24.614 .000

(Constant)

JOB SATISFACTION

Model1

B Std. Error

UnstandardizedCoefficients

Beta

StandardizedCoefficients

t Sig.

Dependent Variable: AFFECTIVE COMMITMENTa.

Job satisfaction was found to have a significant positive impact on affective commitment,

explaining 67.0% of the variation in affective commitment. Thus, when job satisfaction

increases, affective commitment would tend to increase with it.

Regression of Normative Commitment on Job Satisfaction:

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Model Summary

.595a .354 .351 .41866Model1

R R SquareAdjustedR Square

Std. Error ofthe Estimate

Predictors: (Constant), JOB SATISFACTIONa.

ANOVAb

28.570 1 28.570 163.003 .000a

52.232 298 .175

80.802 299

Regression

Residual

Total

Model1

Sum ofSquares df Mean Square F Sig.

Predictors: (Constant), JOB SATISFACTIONa.

Dependent Variable: NORMATIVE COMMITMENTb.

Table 4.40 indicating regression of Normative commitment on Job satisfaction

Coefficientsa

1.615 .143 11.272 .000

.397 .031 .595 12.767 .000

(Constant)

JOB SATISFACTION

Model1

B Std. Error

UnstandardizedCoefficients

Beta

StandardizedCoefficients

t Sig.

Dependent Variable: NORMATIVE COMMITMENTa.

Job satisfaction was found to have a significant positive impact on normative commitment,

explaining 35.1% of the variation in normative commitment. Thus, when job satisfaction

increases, normative commitment would tend to increase with it, but less so than affective

commitment.

Regression of Continuance Commitment on Job Satisfaction:

Model Summary

.108a .012 .008 .66669Model1

R R SquareAdjustedR Square

Std. Error ofthe Estimate

Predictors: (Constant), JOB SATISFACTIONa.

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ANOVAb

1.554 1 1.554 3.497 .062a

132.453 298 .444

134.007 299

Regression

Residual

Total

Model1

Sum ofSquares df Mean Square F Sig.

Predictors: (Constant), JOB SATISFACTIONa.

Dependent Variable: CONTINUANCE COMMITMENTb.

Table 4.41 indicating regression of Continuance commitment on Job satisfaction

Coefficientsa

4.426 .228 19.401 .000

-.093 .050 -.108 -1.870 .062

(Constant)

JOB SATISFACTION

Model1

B Std. Error

UnstandardizedCoefficients

Beta

StandardizedCoefficients

t Sig.

Dependent Variable: CONTINUANCE COMMITMENTa.

Job satisfaction was not found to have a significant impact on continuance commitment,

explaining only 1.2% of the variation in continuance commitment. Thus, when job

satisfaction increases, continuance commitment would be expected to slightly decrease with

it.

In the present chapter the data has been analysed and interpreted. The following chapter will

cover the summary, findings, implications and limitations of the study.

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CHAPTER V

SUMMARY AND CONCLUSION

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CHAPTER V

SUMMARY AND CONCLUSION

5.1 INTRODUCTION

The current study focussed to provide both theoretical and practical contribution to the

existing literature by examining the relationship between job satisfaction and organisational

commitment of technical employees in Bangalore and to suggest some managerial

implications. This chapter is on summary and conclusion .It covers the need for the study,

statement of the problem, scope of the study, operational definitions, variables of the study,

sampling technique, tools of the study, statistical techniques used, major findings,

implications and limitation of the study.

5.2 NEED FOR THE STUDY

The integral part of any management process is to manage the people at work. A well

managed organisation sees worker as the root cause of quality and productivity .An effective

organisation will always promote a sense of commitment and satisfaction among its

employees. The significance and importance of the concept of organizational commitment in

terms of leading to beneficial organizational and desirable outcomes such as increased

effectiveness, reducing absenteeism and turnover, has been documented by many studies such

as those of Steers (1977); Porter et al. (1974); Reiches (1985) and Tett and Meyer (1993). In

order to make employees satisfied and committed to their jobs there is need for strong and

effective motivation at the various levels.

One way to address issue of employee turnover is to understand the job satisfaction and

commitment level of employees. A lot of studies are conducted separately on commitment,

satisfaction and motivation but very few studies are there on IT sector linking these three .So

it is crucial to conduct a study on job satisfaction and organizational commitment in

information technology industry and also to identify the important motivating factors to retain

the highly talented workforce.

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5.3 STATEMENT OF THE PROBLEM

Organizational commitment and Job satisfaction -A study of employees in the Information

Technology industry in Bangalore, India.

5.4 OBJECTIVES OF THE STUDY

The main objectives set for the study are

1. To determine organizational commitment of software professionals using the revised

Organizational Commitment Scales (Meyer, Allen and Smith 1993)

2. To measure the job satisfaction level of software professionals.

3. Identify the relationship between level of job satisfaction and organizational

Commitment.

4. Examine whether the commitment and job satisfaction will differ according to the age

level of the employees.

5. Relative ranking of motivating factors using Kovach’s Ten Job-Related Factors.

5.5 VARIABLES UNDER INVESTIGATION

Dependent variable-The dependent variable is Organizational Commitment (Affective

commitment, Normative commitment and Continuance commitment)

Independent Variable- The independent variable in this study is job satisfaction.

Demographic Variables-Gender, Age, Experience, Education, Marital status and

management level.

5.6 HYPOTHESIS

The following hypothesis is developed from the objectives

H1:The higher the level of job satisfaction, the greater the level of Affective

Commitment.

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H2: Job satisfaction and commitment will differ according to age of the Employees

The hypothesis is tested with different statistical techniques .Pearson’s Correlation analysis,

ANOVA, and Regression was used to analyse the collected information.

5.7 POPULATION

The population for the study was all technical employees in the Information technology

Industry in Bangalore city. There are around 1200 IT and ITES organizations operating in

India. In these are 250 are multinational companies. There are around 200 IT companies in

Bangalore and 160 of these companies have their technology related operations in Bangalore.

Research design -The design which is used in this study is descriptive.

5.8 SAMPLE OF THE STUDY

For the present study data was collected with the help of structured questionnaire from 300

employees working in software industry. The study is concentrated on Bangalore IT industry.

The researcher used non probabilistic sampling (purposive sampling) method as sampling

design. Samples were selected from 10 top IT multinational companies. Samples were drawn

from three levels of management including entry level, middle level and top level employees.

The pertinent information for the study is collected from both primary and secondary sources.

5.9 THE INSTRUMENTS

The independent variable in this study is job satisfaction. The overall Job satisfaction was

measured using the 15-item questionnaire developed by Prof.Harold Andrew Patrick in 2009,

designed to measure 15 aspects of job. Responses were collected with the help of 7 point

likert scale.

The dependant variable, organizational commitment was measured using the revised

Organizational Commitment Scales (Meyer, Allen and Smith 1993) that is, the Affective

Commitment Scale (ACS), the Continuance Commitment Scale (CCS) and the Normative

Commitment Scale (NCS) with 24 questions on 7-point Likert scales.

The Kovach ten job-related factors, developed by kovach, Kenneth. (1999) were used to

determine what motivates the employees in software industry. The respondents were asked to

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indicate the degree of importance of the factors and relative ranking according to motivational

importance.

5.10 ANALYSIS

The following statistical techniques were used to analyze the data.

Descriptive statistics-Frequency, percentage, mean and standard deviation

The Pearson’s correlation coefficients were used to analyze the relationship between each of

the job satisfaction facets and organizational commitment.

ANOVA and Regression

Friedman test-Kovach’s ten job-related factors were ranked according to the order of

importance in motivating the employees. To analyse the data statistical package for social

sciences (SPSS) was used.

5.11 MAJOR FINDINGS OF THE STUDY

5.11.1Demographic Profile

Gender- For the current study there was larger percentage of male (61.3%) than female (38.7%).

Age- In terms of age, 38.7% of the respondents were below 30 years of age, 38.0% of the respondents were in the age group 30 - 40 years, and 23.3% of the respondents were in the age group 40 - 50 years.

Qualification- Most of the respondents had professional qualification (54.7%).Others were

graduate (17.3%) and post graduate (28%).

Marital Status- For the current study majority of the respondents were married (60.7%),

followed by single (39.3%).

Experience in the current organisation- In terms of experience in the current company most

of the respondents were working since 2-3 years(31.3%) followed by 1-2 year(21%),5-6

years(16%),4-5 years(12.7%),6 yrs and above(10.7%) and least being 3-4 yrs(8.3%).

Total experience- In terms of total work experience most of the respondents were in the 2-5

yrs(31.3%),followed by 2 years and below(19.7%),10-15yrs(17.7%),5-10yrs(17%),15-20yrs

(11.7%) and least being above 20 years (2.6%).

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Size of the organization- In terms of size of the organization, all the respondents were from

organizations with one thousand or more employees.

Managerial level- In terms of management level, 50.7% of the respondents were at entry-level, 23.0% of the respondents were at middle-level, and 26.3% were at senior-level.

5.11.2 General Findings

1. The level of organizational commitment was moderate, with relatively higher variability in

affective commitment. Mean value was highest for Continuance commitment indicating

employees are staying back with the organization because of the cost of leaving the

organisation or it’s too much trouble to go somewhere else.

2. IT employees were showing only a moderate level of job satisfaction. Amongst the items

comprising the scale for job satisfaction, the items with highest satisfaction levels were

related to the social aspects of the job, working conditions (excluding working hours), interest

(from intrinsic aspects of the job), job security, communication, and ease of the job (as an

intrinsic aspect of the job). On the other hand, employees had lowest satisfaction levels for

working hours, supervision, appreciation from management, and salary. It shows that IT

employees are dissatisfied with the working hours, supervision, appreciation from

management and the salary they are getting.

3. To increase the Job satisfaction and commitment it is very important to identify the

motivational factors. . The most important motivational factors for IT employees were good

wages, promotion/growth, job security, interesting work, and appreciation of work.

5.11.2 HYPOTHESIS RELATED FINDINGS

1. There was significant positive correlation of job satisfaction with affective commitment and

normative commitment, and negative correlation with continuance commitment. This

indicates that higher the level of job satisfaction greater the level of affective commitment and

normative commitment. If employees are staying back with the organization because of the

cost of leaving the organisation or it’s too much trouble to go somewhere else then there will

be less satisfaction.

2. Amongst the items comprising the scale for job satisfaction, the items with highest

correlation with affective commitment were related to the salary, benefits, fair treatment,

opportunity for advancement, and supervision. The items with moderate correlation were

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appreciation (from management),interest (from intrinsic aspects of job),job security and

intrinsic aspects of job(excluding ease).The job satisfaction items with lowest correlation

were working conditions(excluding hours),social aspects of job, and communication. So it

clearly indicates the importance of salary, benefit, fair treatment, opportunity for advancement

and a good supervision in increasing the positive emotional attachment to the organisation.

3. Regression analysis revealed that job satisfaction had a significant impact on

Organizational commitment. Job satisfaction was found to have a significant positive impact

on affective commitment, explaining 67.0% of the variation in affective commitment. Thus,

when job satisfaction increases, affective commitment would tend to increase with it. Job

satisfaction was not found to have a significant impact on continuance commitment,

explaining only 1.2% of the variation in continuance commitment. Thus, when job

satisfaction increases, continuance commitment would be expected to slightly decrease with

it. Job satisfaction was found to have a significant positive impact on normative commitment,

explaining 35.1% of the variation in normative commitment. Thus, when job satisfaction

increases, normative commitment would tend to increase with it, but less so than affective

commitment.

4. There was no significant difference in organizational commitment between men and

women IT professionals. So the gender doesn’t play any role.

5. There was significant difference in organizational commitment between age groups.

Organizational commitment was highest for IT professionals in the 40 - 50 yr. age group. In

particular, continuance commitment was lowest for IT professionals in the 30 - 40 yr age

group. Affective commitment was lowest for IT employees below 30 yrs and it was increasing

with the age. So it clearly indicates the importance of increasing affective commitment among

young employees as it can reduce turnover cost.

6. There was significant difference in continuance commitment between IT professionals with

different qualifications. Continuance commitment was lowest for those with professional

qualifications. There was no significant difference in affective commitment and in normative

commitment between qualifications.

7. There was significant difference in affective commitment and in normative commitment

between married and single IT professionals. Both affective commitment and normative

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commitment were significantly lower for single IT professionals. There was no significant

difference in continuance commitment between married and single IT professionals.

8. There was significant difference in organizational commitment based on years in the

current position. Affective commitment increased with years in the current position.

Continuance commitment varied considerably with years in current position, and was lowest

for IT professionals in their present position for six years or more. Normative commitment

also varied considerably with years in current position, and was low for IT professionals in

their present position for six years or more.

9. There was significant difference in organizational commitment based on overall work

experience. Affective commitment generally increased with overall work experience.

Continuance commitment varied considerably with overall work experience, and was lowest

for IT professionals with overall work experience of 5 -10 yrs. and 10 - 15 yrs. Normative

commitment generally increased with overall work experience.

10. There was significant difference in organizational commitment based on management

level. Affective commitment was highest for senior-level IT professionals. Continuance

commitment was highest for senior-level, and lowest for middle-level IT professionals.

Normative commitment was highest for middle- and senior-level IT professionals.

11. There was no significant difference in job satisfaction between men and women IT

professionals.

12. There was significant difference in job satisfaction between IT professionals in different

age groups. Job satisfaction generally increased with age of IT employees. The logic will be

as workers grow older, alternative employment opportunities become limited, making their

current jobs more attractive.

13. There was no significant difference in job satisfaction between IT professionals based on

qualifications.

14. There was significant difference in job satisfaction between married and single IT

professionals. Married IT professionals were generally more satisfied than single IT

professionals.

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15. There was significant difference in job satisfaction between IT professionals based on

years in the current position. Job satisfaction generally increased with years in current

position and experience.

16. There was significant difference in job satisfaction between IT professionals at different

levels of management. Job satisfaction was lower at entry-level than at middle- and senior-

level of management.

17. There was no difference between men and women IT professionals in the importance of

different motivational factors.

18. There was no difference between IT professionals in different age groups in the

importance of different motivational factors.

19. There was no difference between IT professionals with different qualifications in the

importance of different motivational factors.

20. There was no difference between married and single IT professionals in the importance of

different motivational factors.

21. There was difference between IT professionals based on years in the current position in

the importance of different motivational factors. Promotion/growth was more important than

salary for IT professionals in their present position for six years or more.

22. There was difference between IT professionals based on overall work experience in the

importance of different motivational factors. Job security was less important than interesting

work and appreciation of work for IT professionals with twenty or more years of overall work

experience.

23. There was no difference between IT professionals at different levels of management in the

importance of different motivational factors.

5.12 IMPLICATIONS

1. The study revealed that there is only moderate level of Job satisfaction and Organizational

commitment for IT employees. From the review of literature it is clear that IT employees

seem to be quicker to change jobs than other employees when they are dissatisfied with their

current employer (Hacker, 2003).So it cites the importance of improving their job satisfaction

and commitment.

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2. Another important finding of the study is amongst the items comprising the scale for job

satisfaction; IT employees are dissatisfied with the working hours, supervision, appreciation

from management and the salary they are getting. So the IT companies should pay more

attention in improving working hours, good supervision, and appreciation for the work they

are doing. IT mncs should pay more attention to the salary of the employees as it has highest

correlation with affective commitment. It can reduce the employee turnover and the cost

associated with it. It is possible that when employees judge the organization to be providing

good supervision, positive feelings of well being will be created. This is likely to stimulate

them to reciprocate by increasing their sense of obligation to the organization and the belief

that staying is the ‘right thing’ to do to the organization.

3. For any organization the most important challenge is to retain the talented work

force.Inorder to retain the talented work force it is very important to identify what motivates

them. The study revealed that the most important motivational factors for IT employees were

good wages, promotion/growth, job security, interesting work, and appreciation of work. The

findings of this study provide valuable insights for the management to create a motivated and

committed workforce.

4. There was significant positive correlation of job satisfaction with affective commitment

and normative commitment, and negative correlation with continuance commitment. An

employee who is affectively committed strongly identifies with the goals of the organization

and desires to remain a part of the organization. This employee commits to the organization

because he/she "wants to”. As there is high correlation between job satisfaction and affective

commitment organization should concentrate on developing affective commitment-oriented

organization policies.

5. For the organization, job satisfaction of its workers means a work force that is motivated

and committed to high quality performance. Amongst the items comprising the scale for job

satisfaction, the items with highest correlation with affective commitment were related to the

salary, benefits, fair treatment, opportunity for advancement, and supervision. This means that

if an IT organization can give importance to these factors it can reduce employee turnover and

can increase affective commitment of its employees.

6. There was significant difference in organizational commitment between age groups.

Affective commitment was lowest for IT employees below 30 yrs and it was increasing with

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the age. The commitment of younger workers is likely to be more affected by disappointment

with pay and promotion opportunities than the commitment of older employees who have

achieved their advancement and income potential compared to younger employees who often

make job choices on the basis of income and career potential. Older employees, on the other

hand, have higher needs for affiliation and lower needs for achievement. So to increase the

affective commitment of younger employees organisation should pay more attention towards

their salary and opportunity for advancement.

7. There was difference between IT professionals based on years in the current position in the

importance of different motivational factors. Promotion/growth was more important than

salary for IT professionals in their present position for six years or more. So when we plan the

HRD variables it should be according to their experience level. Achievement needs will be

higher for less experienced and affiliation needs will be motivating factor for experienced

employees. So the HR policies should be planned based on employee need.

5.13 LIMITATIONS OF THE STUDY

The study has the following limitations

• Time limit of the researcher is one major limitation

• The survey is subjected to the bias and prejudices of the respondents. Hence 100%

accuracy can’t be assured.

• The research is confined to Bangalore city only, so the result might be indicative not

conclusive

• The findings of the research are based on what the respondent have stated as true

• As the study is planning to conduct on software professionals in Bangalore city, so the

same result may not hold true for other areas.

5.14 SUGGESTIONS FOR FURTHER RESEARCH

1. A study on the relationship between human resources management practises and

organizational commitment of IT employees.

2. A study on the relationship between job satisfaction, organisational commitment and

turnover intention among IT professionals can be undertaken.

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3. A study can be conducted to find out the antecedents of organizational commitment and Job

satisfaction among Indian IT employees.

5.15 CONCLUSION

A major challenge faced by all IT organization is, developing and maintaining Organizational

commitment and Job satisfaction. It is the interest of all organization to secure commitment

and reduce employee turnover. So this topic has attracted the interest of many researchers.

This study confirms the relationship between job satisfaction and organizational commitment.

So managers need to make effort to develop human resource policies that are in alignment to

the needs and motivation of the employees. The findings of this study have pointed out some

salient issues in the IT field. It is imperative for IT company management to meet the

demands of their personnel to strengthen their motivation, satisfaction, and commitment to

minimize turnover.

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APPENDIX

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APPENDIX-1

PROFORMA

Christ University Institute of Management

Bangalore – 560029

Dear Respondent,

I am doing my dissertation titled “Organizational commitment and Job satisfaction: A

study of employees in the IT industry in Bangalore, India.” in partial fulfilment of my

M.Phil (Management) course.

You are requested to participate in the study. Your consent for the participation in the study is

voluntary. However, your participation will help the progress of research and scientific

knowledge in this field. All information collected is for research purpose and will be kept

confidential .If you have any doubt about the study, you are free to contact the investigator for

clarification.

Thank you for your cooperation.

Regards,

Jasmine Sonia

Research Scholar

Christ University

[email protected]

Gender: Male Female

1. Age: Below 30 yrs 30-40 40-50

2. Qualification : Graduate Post Graduate Professional Qualification

Others specify

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3. Marital Status: Married Single Others 4. Position/Designation: (Specify)

………………………………………………………………..

5. How long have you been in this position: < 1 Year 1-2 Years 2-3Years

3-4 Years 4-5 Years 5 Years and Above

6. Work Experience: 2years and below 2-5yrs 5-10yrs 10-15 yrs

15-20yrs above 20 yrs

7. Size of the Organization: Less than 500 employees 500-1000 Employees

More than 1000 Employees

Instructions: Kindly read the items carefully and Tick in the appropriate box. Please

do not omit any item.

Kindly tick in the appropriate Box

Strongly Disagree

Disagree

Slightly Disagree

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Undecided

Slightly Agree

Agree

Strongly Agree

1

2

3

4

5

6

7

1 I would be very happy to spend the rest of my career with this organization

2 I enjoy discussing my organization with people outside it

3 I really feel as if this organizations problems are my

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own

4 I do not think I could become as attached to another organization as I am to this one

5 I feel like part of the family at my organization

6 I feel emotionally attached to this organization

7 This organization has a great deal of personal meaning for me

8 I feel a strong sense of belonging to my organization

9 It would be hard for me to leave my organization right now, even if I wanted to

10

My life would be disrupted if I decided I wanted to leave my organization now

11 I am afraid of what might happen if I quit my job without having another one lined up

12

It would be costly for me to leave my organization now

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13

Right now staying with my organization is a matter of necessity as much as desire

14

I feel that I have few options to consider leaving this organization

15

One of the serious consequences of leaving this organization would be scarcity of available alternatives

16

One of the major reasons I continue to work for this organization is that leaving would require personal sacrifice-another organization may not match the overall benefits I have here

17

I think that people these days move from organization to organization too often

18

I believe that a person must always be loyal to his/her organization

19

Jumping from organization to organization seems unethical to me

20

I believe that loyalty is important and therefore I feel a strong sense of moral obligation

21

If I got another offer for a better job elsewhere I would not feel it was right to leave my organization

22

I was taught to believe in the value of remaining loyal to one organization

23

Things were better in the days when people stayed with one organization for most of their careers

24

I think that wanting to be a company man or company woman is sensible

INSTRUCTIONS: The following is a list of job, work and organization related items. Kindly indicate your level of satisfaction with the items on a ‘7-point’ scale as shown below. 1 indicating highly dissatisfied and 7 indicating highly satisfied. Be HONEST and CANDID in your response and do not omit any item.

Highly Dissatisfied

Employees' Ranking

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11. Job Security2. Interest (from intrinsic aspects of job)3. Opportunity for advancement4. Appreciation (from management)5. Company policy and management practices6. Intrinsic aspects of job (excluding ease)7. Salary8. Supervision9. Social aspects of job10.Working conditions (excluding hours)11.Communication12.Hours (from working conditions)13.Ease (from intrinsic aspects of job)14.Benefits15.Fair treatment

Instructions: Kindly read the items carefully and rank

the items, regarding your view about motivating

factors. Please do not omit any item. Please indicate

the extent of your motivational importance by selecting

a number from 1 to 10. 1 indicates highest ranking and

10 indicates least motivating factor. Do not repeat the

number while ranking.

Items

Interesting work

Appreciation of work

Feeling "in on things"

Job security

Good wages

Promotion/growth

Good working conditions

Personal loyalty

Tactful discipline

Sympathetic help with problems