CHAPTER I
INTRODUCTION
Context of the Study
Need and Significance of the Study
Statement of the Problem
Operational Definition of Key Terms
Objectives of the Study
Hypotheses of the Study
Methodology
Scope and Limitations of the Study
Organisation of the Report
CHAPTER I
INTRODUCTION
1.1 CONTEXT OF THE STUDY
Every industry requires certain perquisites for its functioning, namely,
raw materials, finance and funding, machinery, etc. Similarly, it requires
manpower. And this manpower is the human resources and in order to
manage the manpower, human resource management is necessary. Human
Resource Management involves managing manpower in order to improve
individual, group and organisational effectiveness. It is important to manage
human resources as they help in the prosperity and progress through the
committed and creative efforts and competencies of their human resources.
Dr. W.E. Deming once remarked: “Abundance of natural resources is not a
requirement for prosperity. The wealth of a nation depends on its people”.
Human Resource Management also looks into the grievances and issues
faced by the employees and industrial relations.
Our environment is changing faster and becoming more complex, more
competitive and more global than ever. To compete in this environment
indeed, to survive in this environment, today’s organisations must be more
competitive, adaptive and lean. They must think globally and they must
decentralise. They must foster quality, cost reduction and innovation. To
compete in this environment, the people in today’s organisations must be
willing and able to accomplish all of these things. For personal and human
2Introduction
resource managers, this translates into opportunity and excitement because
there is the challenge to match the ever-changing needs of organisation with
quality human resources. Managing human resource effectively requires a
great deal of knowledge and expertise. Human resource managers must
know the environment in which the organisation is operating. They must also
know about all of the personnel and human resource management activities
that an effective firm uses in managing their human resources. Today’s
human resource managers must be willing and able to play more roles, must
be as adaptable as the organisation itself and must be flexible in order to take
in stride the accelerating pace of change.
Human Resource Management deals with finding the right people,
placing them on the right job, at the right time, training and development for
better performance, providing a growth-oriented career path and sustaining
their motivation and satisfaction through proper and timely rewards.
Ultimately both the employer and the employee should be able to attain their
goals in their respective mission. In the process, the success depends on
how the management is able to make its human resource committed to the
goals of the organisation.
The term Job Satisfaction is quite frequently used in the literature of
industrial psychology for individual attitude towards the specific aspects of
total work situation. Since the time when the occupation of individuals
became a socially significant phenomenon, social scientists focused their
attention on the problem of job satisfaction. Job satisfaction refers to the
3Introduction
general attitude of employees towards their job. Job satisfaction describes
how content an individual is with his or her job.
Analysing Job Satisfaction and Organisational Commitment is
particularly crucial nowadays, as people often do not work at the same
organisation or job throughout their lifetime. So once an ideal candidate is
chosen, organisations will like to make a great effort to retain those
employees. An effective organisation will make sure that there is a spirit of
co-operation and sense of commitment and satisfaction within the sphere of
its influence.
Job Satisfaction represents several related attitudes which are most
important characteristics of a job about which people have effective response.
These are the work itself, pay, promotion opportunities, supervision and
workers (Luthans, 1998).
Commitment can be identified as three different types, which include:
affective, continuance and normative commitment. The attachment of the
employee to their organisation has received a considerable attention in the
fields of management and organisational behaviour. This attachment has
been used and defined in many ways over the years. However,
Organisational Commitment has clearly emerged as the most recognised and
researched construct of the employee’s attachment or loyalty to the
organisation. A highly committed person has the feeling that he is working for
himself and not somebody else. As a result, he develops a sense of
responsibility and does not require any external drive for his job performance.
4Introduction
Weiner (1982) suggested that Organisational Commitment is likely to
predispose employees to put in their best in organisational programme
activities.
Venkatachalam (1998) recognised that the concept of Organisational
Commitment has provide its usefulness not only as a theoretical construct and
as an empirical predictor, but also a powerful tool which can also be used as
an aid to achieve higher levels of performance and discipline in an
organisation. He found that the construct has been related to many important
outcome variables like performance, absenteeism, personnel turnover, tenure,
tardiness, etc.
1.2 NEED AND SIGNIFICANCE OF THE STUDY
IT industry is a fast growing one especially in Kerala. In Kerala, IT
industry is at the childhood stage. Without noise and smoke, this industry
faces many fever and fret. Professionals are the backbone of this industry.
But they face many problems in society and in workplace. The work
environment that is able to fulfil employees’ personal need is considered to
provide a positive interaction effect, which will lead to an excellent quality of
work life. The personal needs are satisfied when rewards from the
organisations such as compensation, promotion, recognition and development
meet their expectations. When stress arises in the process of interaction
between a person and the work environment, it threatens the individual’s
psychological and physiological well-being. Physical illness and psychological
disorders increase when pressure at work increases. Stress causes problems
5Introduction
to the muscular system and circulation thus increasing the risk of heart attack
which is well documented in psychosomatic studies. Employees who have
been exposed over two years in high strain work environment are likely to
develop higher systolic blood pressure. The nature of work of IT professionals
reflects a similar situation. A continuously demanding and monotonous work
environment affects the brain resulting in exhaustion and degenerate
cognitive abilities. Depression and anxiety are also another form of stress
that contribute towards the deterioration of health. The prevention strategies
must be healthy and humanistic in nature in order to evolve IT professionals
work comfortably.
Today, everything and anything is being computerised across the
board. Almost every country is linked by the World Wide Web. Almost all
companies, business enterprises and government department – both Central
and State – linked through either intranet or internet. So the IT sector is vital
to the progress of any nation. Human resource is the key ingredient in the
development of IT sector. So the Job Satisfaction and the Commitment of IT
professionals towards the job are important for the healthy growth of this
industry.
IT professionals perform a variety of duties that ranges from installing
application to designing complex computer networks and information
databases. A few of the duties that IT professionals perform may include data
management, networking, engineering, computer hardware maintenance,
database and software development as well as the management and
6Introduction
administration of the entire system. When computer and communication
technologies are combined, the result is Information Technology or Infotech.
IT industry has huge job potential in the near future. One of the major hurdles
for the growth of this industry is well-trained manpower. In this context, the
Government of Kerala plans to roll out a mass based human resource
development in IT industry with public private participation which would
specifically focus on addressing the current issues in the demand-supply
disparity in information technology employment sector in the State. The main
objective of the programme is to develop Kerala into a hub of information
technology.
Several studies as those of Cramer (1993), Somers (1995),
Balanchandran and Anantharaman (1996) and Mishra, Dhar and Dhar (1999)
have found that job satisfaction and organisational commitment are
interrelated. Enhancing job satisfaction guarantees greater involvement and
commitment from the part of the employee. Heslin (2003) found that
Employee’s productivity is largely related to their level of job satisfaction and
in fact the turnover rate can be reduced with a higher level of organizational
commitment. Pillai’s (2010) study indicated that Tech workers want to be in
jobs where they can learn and grow. Soonhee Kim (2009) found that job
satisfaction of IT employees in the public sector is dependent on job clarity,
effective communication with management, a participatory management
approach, organizational support for career development, opportunity for
advancement and family friendly policies. All these studies point out that job
7Introduction
satisfaction and organisational commitment are the key variables in
enhancing productivity and reducing the turnover in any organisation. Review
of related literature and studies also revealed that no exhaustive study has
been conducted so far on IT professionals’ Job Satisfaction and Organisational
Commitment in India. As IT industry is a fast growing one which provide
immense job opportunities to the educated youth of India, the investigator
decided to study the Job Satisfaction and Organisational Commitment of
employees in the IT industry of Kerala.
Kerala is rapidly growing as an IT hub after the government started the
Technopark in Thiruvananthapuram. The government’s positive attitude on
this sector, the State’s ideal climate and tranquil atmosphere and the
availability of educated youths are attracting many national and multinational
IT organisations to Kerala. The government initiatives in this regard are very
constructive and if this will go according to the planned objectives, IT industry
will become one of the major employment generating industries in Kerala.
Though the industry is providing attractive salary and other perks to its
employees, the hectic work schedule and erratic work timings are creating its
own problems in the psychological and physiological well-being of employees
in IT industry. Are the employees in IT industry really satisfied with their jobs
as perceived by the society? Is the organisational commitment of an
employee has a significant relationship with his/her job satisfaction? Is
experience a vital aspect in deciding job satisfaction and organisational
commitment of an employee? How satisfactory is the organisation’s attitude
8Introduction
towards an employee’s overall well-being? Is the commitment exhibited by
employees due to lack of other suitable employment or is it due to the
attachment they accrue due to the quality of work environment in their
organisation? To get answers to these and other relevant research questions,
the investigator decided to probe the topic under study in detail.
1.3 STATEMENT OF THE PROBLEM
The IT industry, though growing in a fast pace, faces uncertainties
many times due to the global recessionary trends as majority of the
organisations in this industry are dependent on companies in Europe and the
USA. The 2000 dot.com crash (where so many large and small companies
conducting business through World Wide Web vanished which created a
massive recession) and further 2008 global recession created panic in the
industry and many employees were rendered jobless overnight at those
periods. Though they enjoy salaries and privileges which is inaccessible to
many in other similar jobs, the industry has its own problems which will
naturally affect its employees’ morale and job satisfaction. This study is an
attempt to gauge the job satisfaction and organisational commitment of
employees in the IT industry. As Kerala is fast emerging as an important IT
destination, two important IT corridors in Kerala – The Technopark and
Infopark – were selected for the study. The study is entitled as
“JOB SATISFACTION AND ORGANISATIONAL COMMITMENT
OF EMPLOYEES IN THE IT INDUSTRY OF KERALA”
9Introduction
1.4 OPERATIONAL DEFINITIONS OF KEY TERMS
The major terms used in the study are explained below.
Job Satisfaction
Job satisfaction may be defined as a pleasurable and positive
emotional state resulting from the appraisal of one’s job or job experiences
(Locke, 1976).
Organisational Commitment
Organisational Commitment can be theoretically defined as a
psychological link between the employee and his or her organisation that
makes it less likely that the employees will voluntarily leave the organisation
(Allen & Meyer, 1996).
IT Industry in Kerala
Information Technology industry is predominantly an industry which
deals with the needs of organisations in technological areas which helps in
companies to automate many jobs and hence enhance productivity. It
involves installing applications to design complex computer networks and
information databases. Software development for the complex processes in
large organisations is one of the main jobs in IT industry. Majority of the
organisations in this industry outsource jobs from the major developed
countries in Europe and the USA. In Kerala, IT industry is growing in a rapid
pace due to the availability of educated manpower and the encouragement
from the part of the government.
10Introduction
Information Technology Policy – Kerala
This policy aimed at creating an appropriate pro-enterprise, legal,
regulatory and commercial framework to facilitate the rapid growth of IT
industry in the State. This policy also focuses on establishing Kerala as a
global centre for excellence in human resources, through the creation of a
large pool of diverse, multiskilled technically competent manpower in the
State and establishing an internationally competitive business infrastructure
and environment for IT industry in the State on par with the best facilities and
practices worldwide (IT Policy, Government of Kerala, 2000).
Technopark
Technopark being the first government IT park in India proved to have
the most conducive working environment for a technology business incubator
in generating the in-house entrepreneurs with their innovations through
incubation. Technopark is the only IT Park in India having ISO 9001; 2008,
ISO 2004, OHSAS 18001; 2007 and CMMI Level 4 certifications (Economic
Review, 2010). Now several national and multinational companies are
operating from this facility.
Infopark
Infopark situated in Kochi, is Kerala’ new IT hotspot hosting over 50
IT/ITeS companies ad over 10,000 professionals. It offers tailor made
workspaces, world-class infrastructure facilities and end-to-end solutions for
global IT/ITeS companies. Infopark has ambitious plans to become one of the
11Introduction
major IT parks in the country. With this vision, it has been growing faster ever
since its inception in 2004.
IT Professionals
One of the fastest growing workforces in the present work environment
is the group of information technology (IT) professionals. IT professionals are
involved in acquisition, processing, storage of vocal, pictorial, textual and
numerical information which demand extensive use of IT skills. The nature of
jobs enables the IT professionals to work independently with multidimensional
teams round the clock regardless of their locations throughout the world
(Evans and Wurster, 2000).
1.5 OBJECTIVES OF THE STUDY
The following are the objectives formulated for the study:
1. To find out the extent of Job Satisfaction experienced by professionals
in the IT industry of Kerala.
2. To find out the extent of Organisational Commitment of professionals in
the IT industry of Kerala (for total commitment and its components).
3. To compare the Job Satisfaction experienced by IT professionals
based on select socio-demographic variables.
4. To compare the Organisational Commitment of IT professionals based
on select socio-demographic variables.
5. To find out the relationship. If any, between Job Satisfaction and
Organisational Commitment for the total sample and the select socio-
demographic variables.
12Introduction
6. To factor analyse the Job Satisfaction factors in IT industry to find out
the factors which are helpful for HR managers.
1.6 HYPOTHESES OF THE STUDY
1. The Job Satisfaction of employees in IT industry is moderate.
2. The Organisational Commitment of employees in IT industry is
moderate (for total commitment and its components).
3. There is significant difference in the Job Satisfaction of employees in IT
industry based on the select socio-demographic variables.
4. There is significant difference in the Organisational Commitment of
employees in IT industry based on the select socio-demographic
variables.
5. There is significant relationship between Job Satisfaction and
Organisational Commitment for the employees in IT industry (for the
total sample and the select socio-demographic variables).
6. The Job Satisfaction factors obtained through factor analysis would
help HR managers in the formulation of strategies for Job Satisfaction
of employees in IT industry.
1.7 METHODOLOGY AND TOOLS
In pursuance of the objectives and hypotheses, the following
methodology was adopted for conducting the present study. The study is
designed as an analytical one based on the survey method. Both primary and
secondary data have been used for the study.
13Introduction
In the first exploratory stage of this study, a survey of literature was
undertaken by the researcher to familiarise with the various aspects of the
study, to evolve appropriate methodology and to formulate a conceptual
framework for the study. For these purpose, various secondary sources such
as research articles, working papers, seminar reports, annual reports, etc.
were reviewed.
In the second stage, primary data were collected from the IT
professionals in the IT industry of Kerala through a field survey. For this
purpose, a structured Questionnaire was prepared that should help to collect
the necessary information about the factors affecting job satisfaction and
organisational commitment.
1.7.1 Construction of Tools
The Job Satisfaction Questionnaire was tested before finalising it by
conducting a pilot study. For the purpose of the pilot study, the researcher
collected data from 30 IT professionals. It helped in identifying the variables
required for the study. The questionnaire was then revised in the light of the
suggestions and criticisms made by the guide and the fellow researchers.
The questionnaire so revised was circulated among three experts for critical
review. The questionnaire was redrafted in the light of their comments. A
copy of the Job Satisfaction Questionnaire is given in Appendix I.
For the purpose of the study, the Job Satisfaction Questionnaire was
framed on the basis of the model of Minnesota Satisfaction Questionnaire
(MSQ) (1967). On the basis of the test and retest, 30 statements have been
14Introduction
used in the job satisfaction questionnaire to measure overall job satisfaction.
The Likert scale of summated rating was used in the scale to measure the
extent of Job Satisfaction. There are five responses, viz., strongly agree,
agree, undecided or neutral, disagree and strongly disagree. To secure the
total job satisfaction score of an employee, a ‘strongly agree’ response was
given a weightage of ‘5’, a ‘agree’ response a weightage of ‘4’, to a ‘neutral, or
undecided’ response, a weightage of ‘3’, a ‘disagree’ response a weightage of
2, and a ‘strongly disagree’ response, a weightage of 1. Thus, it was possible
to get the overall job satisfaction score of an employee by adding up the
scores of all the 30 items. Thus, by adding up the scores of all the 30 items,
the job satisfaction score of an employee can be found out. The internal
consistency of Job Satisfaction Questionnaire was tested using Cronbach’s
Alpha. The alpha coefficient obtained is 0.85 which shows the Job
Satisfaction Questionnaire is a highly reliable one.
For studying the Organisational Commitment of IT professionals, the
Organisational Commitment Questionnaire (OCQ) developed by Meyer and
Allen (1993) is used. This instrument was finalised from a 66 original pool of
items, generated after an extensive literature survey by the original authors
(Allen & Meyer, 1990) and a 24 items questionnaire with three subscales of 8
items each for measuring affective, continuance and normative commitment
was developed. This scale was further tested for its validity and consequently
a shortened version of 18 items having 6 items each for measuring the three
different dimensions of organisational commitment was developed by Meyer
15Introduction
and Allen in 1993. The researcher used this 18 items questionnaire for the
purpose of this study as it had superior psychometric properties than the
earlier developed ones. The responses categories were Strongly agree to
Strongly disagree.
Though the original questionnaire was a standardised one, the
investigator re-established the reliability of the questionnaire using Split-half
Method. The split-half reliability coefficient obtained is 0.78 which shows that
the questionnaire is a highly reliable one. A copy of the Organisational
Commitment Questionnaire is given as Appendix II.
For studying the personal factors which influences the job satisfaction
and organisational commitment of IT professionals, a Personal Data Sheet
was also prepared by the investigator (Appendix III). It is meant to collect
personal details such as age, martial status, sex, educational qualification,
experience, etc. of the respondent.
1.7.2 Sample Selected for the Study
The question of the size of the sample in research is very important. It
is to be noted that an optimum sample fulfils the requirements of
representativeness and reliability. The sample should be sufficiently large to
minimise sampling error. Garrett (1984) in this regard points out: “The larger
the N the larger the SD of the sample and the more inclusive (and presumably
representative) our sample becomes of the general population”.
The population for the study constituted the entire IT professionals
working in IT industry of Kerala. This includes professionals in Technopark,
16Introduction
Infopark, Software Technology Park of India (STPI) and other small registered
units in Kerala. As per the data available from Economic Review (2010),
about 28,000 professionals are working in Technopark and 10,000
professionals are working in Infopark, Kochi where most of the IT giants have
their own campuses. For the remaining small registered firms, no reliable
data is available. In the case of STPI, its functioning in Kerala is not worth
mentioning. In Kerala, the information technology industry is mainly centred
on the infrastructure made available by the Government of Kerala. This
translates into the fact that more than 90 per cent of the professionals in IT
industry are concentrated in Technopark, Thiruvananthapuram and Infopark,
Kochi. So, as the chief IT hubs in Kerala are Technopark in
Thiruvananthapuram and Infopark in Kochi, the investigator decided to select
the sample from these two parks only. For the purpose of the study, 345
sample respondents were selected from the IT professionals in these two
parks on the basis of simple random sampling. From these, more than 40
respondents returned incomplete questionnaires. Thus, a final sample
consisting of 300 were selected for analysis of data. The collection of data
was very difficult mainly due to security reasons and lukewarm response of
the management and the respondents. Due representation was given to
gender, marital status, designation and experience.
1.7.3 Variables of the Study
Job Satisfaction and Organisational Commitment are the variables
selected for the study. Organisational Commitment was classified as
17Introduction
Affective Commitment, Continuance Commitment and Normative
Commitment. In addition to these variables, select socio-demographic
variables are also selected which are given below.
(1) Age
(2) Sex
(3) Martial status
(4) Educational qualification
(5) Designation
(6) Level of management
(7) Salary
(8) Experience in present organisation
(9) Experience in present position
(10) Number of times promoted
(11) Experience in previous organisation
(12) Spouse’s employment status
(13) Nature of spouse’s employment.
1.7.4 Statistical Techniques Used for the Analysis of Data
1. Percentage Analysis
2. Two-tailed test of significance of difference between means.
3. Karl Pearson’s Product Moment Correlation
4. Analysis of Variance
5. Scheffee test of post hoc comparison.
6. Factor analysis
18Introduction
In addition to these techniques, in order to identify the high, average
and low groups of employees based on their Job satisfaction and
Organisational Commitment, the following procedure was adopted.
The subjects were grouped into three viz. high, average and low,
based on their Job Satisfaction and Organisational Commitment scores. In
each case, the mean (M) and standard deviation () for each level were
worked out. Those getting scores at or above M+were grouped as high and
those getting scores at or below M- were grouped as low. Those getting
scores between M- and M+ were grouped as average.
1.7.5 Period of the Study
Field work and data collection for the study extended to a period of one
year from February 2010 to January 2011. Secondary data relating to the
sample units were also collected.
1.8 SCOPE AND LIMITATIONS OF THE STUDY
This study is an effort to find out the job satisfaction and organisational
commitment of IT professionals in Kerala with a view to suggest suitable
measures to enhance the job satisfaction and organisational commitment of
the employees in IT industry. The findings of the study will have wide
ramifications for the policymakers and HR managers in IT industry in creating
conducive environment for maximum job satisfaction and derive higher
organisational commitment from the employees. It is hoped that the findings
19Introduction
of the study will be applicable throughout the IT industry irrespective of the
position the employees belong.
Though all precautions were taken to make the study a reliable one,
certain limitations were found in the study. Each study has its own limitations
which are, of course, beyond the control of the investigator. The following are
the major limitations found in the study.
1. Only Technopark in Thiruvananthapuram and Infopark in Kochi were
selected for the study. But it is to be noted that they are the major IT
industry hubs in Kerala.
2. The sample consists of only 300 IT professionals. The accessibility
problems in the study area due to security reasons and lack of
co-operation from the employees restricted the sample size to 300.
However, considering the size of the population, this sample is found to
be adequate enough to be representative of the population.
3. No Information Technology enabled Services (ITeS) professionals
were selected for the study. Here the investigator decided that to get
generalisable results for IT industry, it is better to exclude ITeS
employees. But the results of the findings are applicable to ITeS
industry also.
In spite of these limitations, it is hoped that the results of the study
would be highly beneficial in formulating policies for Job Satisfaction and
Organisational Commitment of employees in the IT industry.
20Introduction
1.9 ORGANISATION OF THE REPORT
The report has been presented in six chapters.
Chapter I is the introductory chapter. It gives a background of the
problem, need and significance of the study, statement of the problem,
definition of key terms, objectives, hypotheses, methodology and scope and
limitations of the study.
Chapter II is review of related literature and studies pertaining to the
topic under study.
Chapter III deals with the theoretical constructs of Job Satisfaction and
Organisational Commitment.
Chapter IV is a brief overview of the IT industry in India.
Chapter V pertains to the analysis of the data collected through the Job
Satisfaction Questionnaire, Organisational Commitment Questionnaire and
Personal Data Sheet.
Chapter VI details the major findings, conclusions and
recommendations which is followed by suggestions for further research.
21Introduction
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22Introduction
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