A Study of Spinning Division in Textile Industries.

“A Well-Contented Employee is easy to Retain”-A Study of Spinning Division in Textile Industries.

Ms. Nisha Solanki1

1Assistant Professor, FCM, SGT University, Gurugram (Haryana) 1 [email protected]

ABSTRACT

Happy workers are productive workers and productive workers are likely to be happy. Employee job satisfaction is essential to face the dynamic and ever-increasing challenges of maintaining the productivity of the organization by keeping their workforce constantly engaged and motivated. Furthermore, environmental pressures, rising health costs, and various needs of the workforce also pose a challenge for the management. This could be overcome by creating a work environment that maintains employee job satisfaction as well as motivates people towards an exceptional performance at the workplace, achieving work-life balance. This paper outlines the broad contours of various variables responsible for employee satisfaction and various ways by which one can maximize employee satisfaction. In this paper, various variables were considered to analyze their impact on job satisfaction among the employee, particularly in spinning division textile firms. Data was collected through a self-designed questionnaire and a total of 256 questionnaires were duly filled. The data was analysed with frequency analysis and descriptive analysis for demographic interpretation and factor analysis was executed by applying KMO & BARTELETT’S TEST. Employee training was found to be a significant factor responsible for employee satisfaction, along with other factors.

Keywords: Employee Performance, Turnover, Job Satisfaction, Textile Industry, spinning division.

INTRODUCTION

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NOVYI MIR Research Journal

Volume 6, Issue 2, 2021

Dessler, G (1978) refers to job satisfaction, as the degree of needs satisfaction that is derived from and or experienced on the job. He affirms the ability of employees in organization aspirations, feeling happy doing their job with the hope that their needs will be achieved. Robin (1989) studied job satisfaction as an attitude towards an individual's job, and the difference between the number of reward workers receive and the amount they believe they should receive. It has been found that the causes of Employee turnover mainly come under three categories: job dissatisfaction, errors in employee selection, and poor management (white, 1995). Sheelan (1995) found that job satisfaction was the most common cause of turnover. Saifuddinet. al. (2008) found that low absenteeism is related to high job satisfaction while high turnover and absenteeism are associated with job dissatisfaction. The Mobley model (Lee, TW 1988.) explained the process of how job dissatisfaction can lead to employee turnover.

The textile industry occupies a noteworthy place in the Indian economy and contributes substantially due to its export earnings. Textile export represents nearly 30% of the country total exports. It has a high weightage of over 20% in national production. It provides direct employment to over 5 million persons in the mills, power loom, and handloom sectors. Also, the textile industry in India is one of the oldest manufacturing sectors in the country.

The sector employs nearly 35 million people and after agriculture, is the second-highest employer in the country. Its importance is underlined by the fact that it accounts for around 4% of Gross Domestic Product, 14% of industrial production, 9% of excise collections, 18% of employment in the industrial sector, and 16% of the country's total exports earnings. With direct linkages to the rural economy and the agriculture sector, it has been estimated that one of every six households in the country depends on this sector, either directly or indirectly, for its livelihood. The spinning division plays a vital role in all types of textile industries. It is part of the textile manufacturing process where three types of fibers are converted into yarn, then fabrics, which undergo finishing processes such as bleaching to develop textiles. The textiles are then fabricated into clothes or other products. A spinning division having a large number of workers and they produce tons of thread per day. This amount of thread is produced by labour in various shifts. But it has been observed that labour turnover of the spinning division is higher than other divisions.

It is said that a satisfied employee is a productive employee, any kind of grievance relating to organizational or personal to a greater extent influence on the job. So every organization is giving higher priority to keep their employees with satisfaction by providing several facilities which improve satisfaction and which reduces dissatisfaction. Satisfaction is considered as a key issue by the entrepreneur where efforts are taken and programs are initiated. If an employee is not satisfied with the job there are chances for absenteeism, job turnover, lower productivity, Committing of mistakes, diverting energy for different types of conflicts keeping this thing in view all organizations are trying to identify the areas where satisfaction to be improved to get out of the above dangers. In this connection, research was conducted to identify the level of satisfaction in terms of satisfaction to dissatisfy on various job-related factors.

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Employee satisfaction refers to a collection of positive and/or negative feelings that an individual holds toward his or her job. Job Satisfaction is part of life satisfaction. It is the amount of pleasure or contentment associated with a job. Job Satisfaction is an emotional response to a job. Job satisfaction is one of the most popular and widely researched topics in the field of organizational psychology (Spector, 1997). Locke (1976) defines job satisfaction as a pleasurable or positive emotional state resulting from the appraisal of one's job or job experiences. Job satisfaction has been studied both as a consequence of many individuals and work environment characteristics and as an antecedent to many outcomes. Employees who have higher job satisfaction are usually less absent, less likely to leave, more productive, more likely to display organizational commitment, and more likely to be satisfied with their lives (Lease, 1998). There are a variety of factors that can influence a person's level of job satisfaction. Some of these factors include the level of pay and benefits, the perceived fairness of the promotion system within a company, the quality of the working conditions, leadership and social relationships, the job itself (the variety of tasks involved, the interest and challenge the job generates, and the clarity of the job description/requirements). The happier people are within their job, the more satisfied they are said to be. The concept of job satisfaction has gained importance ever since the human relations approach has become popular. Job satisfaction involves a complex number of variables, conditions, feelings, and behavioural tendencies.

LITERATURE REVIEW

Training & Development

Personal development is one of the vital aspects for employee satisfaction that adds to the job satisfaction pertaining to the employees in the organization. The satisfaction associated with the training methods is significantly important for the overall satisfaction of the employees related to their work in the organization. The various factors associated with the training namely, methods, techniques, tools, timings, venue are also contributing to the satisfaction level and involvement level of employees for the training. The selection of training technique and methods on the basis of employee’s preference is also need to be considered for the better results. The training import the new skills among employees and hence contribute to the growth that makes the employee more willing to stay in the same organization for further growth (Costen and Salazar 2011). The high level of significance that is 27% was also found for the contribution in employee satisfaction (Costen and Salazar 2011). It means the satisfaction of employees in the organization can be increased through effective training modules that ultimately lead to decreased attrition rate as well.

Training the employees for making them a good human capital is also one of the necessity for organizations and people to survive in the stiff and contingent competition (Nda and Fard 2013). This human capital makes the organization uniquely differentiated. These relationships between the training and organizational effectiveness and productivity was also supported in the administrative offices of Ethiopia (Kum , Cowden, and Karodia 2014). In Telecom industry also,

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the positive relation was found between the training and job satisfaction (Khan et al. 2016). This job satisfaction was also found relevant for the sense of great accountability among the middle level employees and hence found effective for organizational performance. Research also supported that training as a factor for satisfaction, it also affect the level of performance in the organization (Utara 2017). All the literature elaborated the positive relationship between the job satisfaction and training and that job satisfaction was found the mediator for the significant relationship between the training of employees and their tenure in the organization (Fletcher, Alfes, and Robinson 2018). That means the positive perception about the growth through training leads to higher tenure of the employees in the organization.

Employee Benefits

Different organizations are adopting a number of dynamic employee benefits to make the employees more satisfied and happier. All the benefits are not equally satisfactory for employees but they do vary from employee to employee on the basis of various factors. The research elaborated the significant positive impact on the employee satisfaction and it was also found that the role of flexible hours is not different on different demographics (BARBER, DUNHAM, and FORMISANO 1992). These results were contradicted by the another research in Colorado when the significant difference was between the employee benefits and satisfaction level of employees on the basis of gender, income level and exemption status (Balkin and Griffeth 1993). Along with this researcher also found the inverse relationship between the education level and age with the employee benefit satisfaction. So, we can infer here that as the education level increases, employees start ignoring the benefits and seeking for more benefits.

The flexible work settings have a positive impact on the job satisfaction as that allows employees to adjust the work settings according to their comfort situation. The positive impact was also noticed between the productivity of the organization and the freedom to work in flexible settings (Van Der Voordt 2004). It means flexible settings makes the employees self decider and enhance the accountability level and employees also get conscious for performance and so the productivity of the organization increases. The positive relationship between the employee satisfaction and employee individual benefits was also confirmed in the lodging industry (Choi and Dickson 2010). The job satisfaction through the employee benefits also been observed significantly important for the consistency in performance of employees and that resulted into the increased customer satisfaction (Jaworski et al. 2018).

Health & Safety

Employee well being is very critical for the organizational performance and so the organizations are adopting various strategies that help employees cope up with health issues. The boredom is one of the aspect which affects employee well being and it was found that employees who can easily cope up with the boredom were having better level of well being as compared to employees who find boredom difficult to cope up (Game 2007). The healthy work environment

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is direct indicator of employee satisfaction and organizational productivity. The role of employee involvement in the organizational healthy practices was found significant for the employee satisfaction and overall performance of the organization (Grawitch, Trares, and Kohler 2007). The studies also supported the relationship between the organizational health & safety cost with the employee performance and accidental cost (Bayram, Ünğan, and Ardıç 2017). If organizations are investing more on the health & safety measures, that make the workplace lesser prone to accidents and hence accidental cost can be saved along with the employee satisfaction which comes through employee perceived safety and security. Extended work shifts affect the employee fatigue and performance. So, different benefits like nap time, flexible shifts, child care facility, etc can have positive impact on employee satisfaction (Estryn-Béhar and Van Der Heijden 2012).

Working Environment

The working environment varies from one organization to another and affects the employee health and satisfaction level. The employees with varied shift timings were found with more stress and least employee satisfaction that leads to ill effect on the health of employees (Sveinsdóttir 2006). The working environment includes both physical and mental aspects. The working environment with employee career opportunities and growth opportunities positively contribute to the employee satisfaction and also to the overall performance (Raziq and Maulabakhsh 2015). The employee satisfaction with growth opportunities also has significant impact on the retention of employees in the organization. The working environment is very broader area and includes various aspects but Self Realization, Workload, Conflict and Nervousness were found as valid and reliable aspects for working environment (Røssberg, Eiring, and Friis 2004). The physical ambience was found as one of the important aspect of working environment in banking sector that have a significant impact on the productivity of employees in banks (Kafui Agbozo 2017). In manufacturing units, employees need regular guidance and supervision. So, the leadership attitude and style of supervisor and working conditions were found as significant for the employee satisfaction and also the performance of the employees (Widodo 2014).

Research Gap

From the extensive literature review of the various papers from the platforms of repute like J-Gate, Ebsco, Inderscience and Web of Science, it has been noticed that a number of studies were already conducted by the researchers on various time intervals. These studies were conducted in general work environments and on various levels of employees, but we failed to find any particular study in the spinning division of a textile industry. This study is more specifically designed to know about the satisfaction of blue collar employees and to draw various insights for the reasons of high attrition rate in a specific unit that is spinning division of the Textile industry.

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RATIONALE OF THE STUDY Employee satisfaction and retention have always been important issues for any organization because high levels of absenteeism and staff turnover can affect the bottom line of the organization. The employee satisfaction is the direct determinant of employee turnover rate in any organization. Satisfied employees tend to be more productive, creative and committed to their employers. This study makes an attempt to find out the satisfaction level of the employees along with their demographic details and the factors which are more important to consider by the management for retaining the employees.

OBJECTIVES The present study is aiming towards finding the various factors that contribute to the employee satisfaction in the spinning unit of Textile companies in India.

RESEARCH METHODOLOGY This exploratory cum descriptive study was undertaken on the factory workers in the spinning section of various textile organizations in India. The data was collected from 256 workers who were approached as per the convenience. The individual responses were recorded with the help of self designed standard questionnaire. Questionnaires was divided in two parts , first part of questionnaire provide the demographic information such as name, gender, education, income and second part includes various factors which were responsible for employee satisfaction and turnover, identified by previous researches.

Data Analysis tools:

Reliability Test: Cronbach’s-alpha test is used to test the reliability of the 20 items that was collected through previous.

KMO and bartlett Test: It is used to identify the appropriateness of factor. Factor analysis was assessed by checking the significance of Bartlett test of spherecity and by examining sampling adequacy through Kaiser-Meyer- Olkin (KMO) Measure of Sampling Adequacy recommends accepting values greater than 0.5 as acceptable.

Factor Analysis: To study the factors influencing the labour turnover of the Individual worker, factor analysis is applied, under which Principal Component Analysis (PCA) technique using Varimax Rotation have been used. Factor analysis is primarily used for data reduction and summarization. In research there may be a large number of variables/attributes, most of which are correlated and which must be reduced to a manageable level. Relationships among sets of many interrelated attributes are examined and represented in terms of a few underlying factors.

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TABLE NO-1 Demographic Profile of Respondents

Age Gender

18 Years to 30 Years

66.4 Male


28.9 Female

40 Years

4.7

Source: Created by Author

Figure-1

Figure-3

62%

38%

GenderMale Female

2%

94%

4%

Monthly WagesUpto 5000

Rs. 5000 to Rs. 10000

Above 10000

Demographic Profile of Respondents

Gender Monthly Wages Educational Qualification

62.5 Upto 5000

2.3 10th standard

48.4

37.5

Rs. 5000 to Rs. 10000

93.8 12th Standard

14.1

Above 10000

3.9 Graduation 2.3

Less than 10th

35.2

Figure-2

Figure-4

66%

29%5%

Age Group18 Years to 30 Years 30 Years to 40 Years

40 Years

Monthly Wages

Rs. 5000 to Rs. 10000

49%

14%2%

35%

Educational Qualification

10th standard 12th Standard

Graduation Less than 10th

48.4

14.1

35.2


49%

12th Standard

Less than 10th

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DATA ANALYSIS RELIABILITY TEST Reliability of the measures was assessed with the use of Cronbach’s alpha. Cronbach’s alpha allows us to measure the reliability of the different categories. As a general rule, a coefficient greater than 0.7 is considered acceptable and a good indication of construct reliability (Nunnally, 1978). Table 2 shows the Cronbach alpha reliabilitiy for 20 items as 0.766, which show acceptable reliability level.

TABLE NO-2 KMO & BARTELETT’S TEST The appropriateness of factor analysis was assessed by checking the significance of Bartlett test of spherecity and by examining sampling adequacy through Kaiser-Meyer- Olkin (KMO) Measure of Sampling Adequacy (Hair, et al, 2006). Kaiser & Rice (1974) recommends accepting values greater than 0.6 as acceptable. For the data collected, the value is 0.740, which falls in the range of very good, and based on this value it can be interpreted that there is no error in the 56.1% of the sample and the rest of the sample there may be a possibility of error.

Bartlett's test is another indication of the strength of the relationship among variables. This tests the null hypothesis that the correlation matrix is an identity matrix. From the same table, we can see that the Bartlett's test of sphericity is significant That is, its associated probability is less than 0.05. In fact, it is actually (.000), i.e. the significance level is small enough to reject the null hypothesis. This means that correlation matrix is not an identity matrix.

TABLE NO-3

Reliability Statistics Cronbach's Alpha Cronbach's Alpha Based on

Standardized Items N of Items

.766 .763 20

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. 0.740

Bartlett's Test of Sphericity Approx. Chi-Square

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FACTOR ANALYSIS: Factors Summaries and Component Grouping

Factor analysis was performed on the data of 256 respondents, the importance attached to each of the factors influencing employee turnover in spinning division . Initially, correlation analysis was run to check for interdependence among the factors after which Principal Component Analysis (PCA) was run. The purpose of performing PCA was to transform a set of interrelated variables into a set of unrelated linear combinations of these variables in to a set of uncorrelated linear combinations.

Principal component analysis along with Varimax rotation was employed for extracting factors. The criteria adopted for deciding the number of factors was, as given by Kaiser and Rice (1974), the common factors with an eigen value greater than one should be considered. Retaining only the factors with eigen values greater than one (Kaiser’s criterion). Based on Varimax Rotationwith with Kaiser Normalisation.

Total Loading, % of Variance and Cumulative Variance for the major Principal Component Factors are summarized as follows- TABLE NO-4

FACTORS Total Loading

% Of Variance

Cumulative Variance %

Training and development 3.983 14.482 14.482

Health and Welfare 2.843 12.971 27.453

Employee Benefit Facilities 2.193 11.339 38.792

Employee Safety and Hazards 1.835 8.871 49.663

Working Environment 1.542 8.364 56.027

Co-worker Attitude 1.887 6.417 62.432

Source: Created by Author As per result of Factor Analysis there were six factors identified i.e Training and Development Health and Welfare, Employee Benefit Schemes, Working Environment, Employee safety and Hazards and Coworkers’ Attitude. These six factors collectively showing 62.43% of total

747.294

Df 190

Sig. .000

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variance it means that all identified factors are explaining majority of factors influencing an employee’s satisfaction level and the possible reasons for turnover rate.

CONCLUSION & SUGGESTION Turnover is a burning issue for any organizations. For the steady productivity of an organization it is essential to maintain its skilled workforce. But most of the times it is very difficult to control the turnover rate within organizations. A person does not stay in an organization only for salary but he/she may stay for many other reasons such as, growth opportunities, good employee relation, better working environment, preferable job location etc.

Productivity of an organization depends on the skills or expertise of its workforce which are the human assets for the organization. It is therefore, crucial to maintain a constant workforce particularly for the skilled Ones in an organization to reduce turnover for the betterment of the organization. The skills and competencies of the workers need to maintain and update on a regular basis in the organization with the adoption of appropriate training methods.

IMPLICATION OF THE STUDY The findings of this study indicated that many factors affect the job satisfaction of employees that need to be considered by the management to control the attrition rate and increase employee satisfaction level. Management should pay attention on providing employee welfare services, health and safety, job security, working responsibilities and good working environment for worker level employees for better retention rate of employees. Management should give more opportunities for promotion and develop their skills and abilities of non managerial level employees. Employees are interested in having friendly environment. Therefore management must get more acquainted with this employees and make employees see them as a leader, not as a boss. Since employees are interested in having good cooperation with colleagues, management should make sure to have a working environment where good cooperation and mutual respect exist. These positive well managed factors will improve the retention rate in any organization.

LIMITATIONS OF THE STUDY The present study is limited to the employee satisfaction among the workers who are working in the spinning unit of textile companies in India. The study has been conducted on 256 sample units through convenience sampling and hence cannot be generalized for the entire population of the country. The study was conducted only on the workers of one unit and the results for other workers in different units may vary. Further studies can be conducted to study the factors of employee well being which generally affect the various workers in different units. The comparative study of different levels of workers and their satisfaction may also be conducted.

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A Study of Spinning Division in Textile Industries.

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