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EXECUTIVE SUMMARY An attempt is made to study the level of organisation commitment among the employees at pantaloon retail India limited –Big bazaar, KSRTC The research was carried for period of eight weeks from 3May to June 29, 2010.A descriptive research was carried by taking convenience sampling for the employees of the each group. A well structured questionnaire was prepared and administered to employee sample of 100. The opinions are collected and tabulated, and it is analyzed through tables and percentage analysis. The results of the analysis are used for drawing the conclusions. A remedial measure / recommendation were suggested based on the findings. [MHRM 2008-2010] Page 1
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big bazaar-organisational commitment report

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Page 1: big bazaar-organisational commitment report

EXECUTIVE SUMMARY

An attempt is made to study the level of organisation commitment among the

employees at pantaloon retail India limited –Big bazaar, KSRTC

The research was carried for period of eight weeks from 3May to June 29,

2010.A descriptive research was carried by taking convenience sampling for the

employees of the each group. A well structured questionnaire was prepared and

administered to employee sample of 100.

The opinions are collected and tabulated, and it is analyzed through tables and

percentage analysis. The results of the analysis are used for drawing the conclusions.

A remedial measure / recommendation were suggested based on the findings.

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SECTION I

PROFILE STUDY OF THE

ORGANISATION

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1. INDUSTRY PROFILE

1.1 INDIAN RETAIL INDUSTRY

The Indian retail market, which is the fifth largest retail destination globally, has been

ranked the second most attractive emerging market for investment after Vietnam in

the retail sector by AT Kearney's seventh annual Global Retail Development Index

(GRDI), in 2008. The share of retail trade in the country's gross domestic product

(GDP) was between 8–10 per cent in 2007. It is currently around 15 per cent, and is

likely to reach 22 per cent by 2010.

A McKinsey report 'The rise of Indian Consumer Market', estimates that the Indian

consumer market is likely to grow four times by 2025. Commercial real estate

services company, CB Richard Ellis' findings state that India's retail market is

currently valued at US$ 511 billion.

Banks, capital goods, engineering, fast moving consumer goods (FMCG), software

services, oil marketing, power, two-wheelers and telecom companies are leading the

sales and profit growth of India Inc in the fourth quarter of 2008-09. India continues

to be among the most attractive countries for global retailers. At US$ 511 billion in

2008, its retail market is larger than ever and drawing both global and local retailers.

Foreign direct investment (FDI) inflows as on January 2009, in single-brand retail

trading, stood at approx. US$ 25.18 million, according to the Department of Industrial

Policy and Promotion (DIPP).

India's overall retail sector is expected to rise to US$ 833 billion by 2013 and to US$

1.3 trillion by 2018, at a compound annual growth rate (CAGR) of 10 per cent. As a

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democratic country with high growth rates, consumer spending has risen sharply as

the youth population (more than 33 percent of the country is below the age of 15) has

seen a significant increase in its disposable income. Consumer spending rose an

impressive 75 per cent in the past four years alone. Also, organized retail, which

accounts for almost 5 per cent of the market, is expected to grow at a CAGR of 40 per

cent from US$ 20 billion in 2007 to US$ 107 billion by 2013.

India has emerged the third most attractive market destination for apparel retailers,

according to a new study by global management consulting firm AT Kearney. It

further says that in India, apparel is the second largest retail category, representing 10

per cent of the US$ 37 billion retail market. It is expected to grow 12-15 per cent per

year. Apparel, along with food and grocery, will lead the organized retailing in India.

India has one of the largest numbers of retail outlets in the world. A report by Images

Retail estimates the number of operational malls to grow more than two-fold, to cross

412, with 205 million square feet by 2010, and a further 715 malls to be added by

2015, with major retail developments even in tier-II and tier-III cities in India

1.2 INDIAN ORGANISED RETAIL SECTOR

The overall retail market in India is likely to grow at a CAGR of 5.5% (at constant

prices) to 1,677,000 Cr in 2015. The organized retail market is expected to grow

much faster at a CAGR of 21.8% (at constant prices) to Rs. 246,000 Cr by 2015

thereby constituting ~15% of the overall retail sales. Based on our projections, the top

5 organized retail categories by 2015 would be food, grocery & general merchandise,

apparel, durables, food service and home improvement.

Retailers inspired by the Wal-Mart story of growth in small town America are

tempted to focus on smaller towns and villages in India. However, a careful analysis

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of the town strata-wise population, population growth, migration trends and consumer

spend analysis reveals a very different picture for India.

As per our estimates, the share of the 35 towns with current population greater than

1mn in the overall population of India would grow much faster from 10.2% today to

reach 14.4% by 2025. Simultaneously, the share of these towns in the overall retail

market would grow from 21% today to 40% by 2025. Within these top 35 towns, an

estimated 70-80% of trade could be in the organized Sector.

Retail market in the Indian organized sector is expected to cross Rs 1000

billion by 2010.Traditionally the retail industry in India was largely unorganized,

comprising of drug stores, medium, and small grocery stores. Most of the organized

retailing in India have started recently and is concentrating mainly in metropolitan

cities.

The growth in the Indian organized retail market is mainly due to the change

in the Consumer’s behavior. This change has come in the consumer due to increased

income, changing lifestyles, and patterns of demography which are favorable. Now

the consumer wants to shop at a place where he can get food, entertainment, and

shopping all less than one roof. This has given Indian organized retail market a major

boost.

Retail market in the organized sector in India is growing can be seen from the

fact that 1500 supermarkets, 325 departmental stores, and 300 new malls are being

built. Many Indian companies have entered the Indian retail market which is giving

Indian organized retail market a boost.

Indian organized retail market is growing at a fast pace due to the boom in the

India retail industry. In 2005, the retail industry in India amounted to Rs 10,000

billion accounting for about 10% to the country's GDP. The organized retail market in

India out of this total market accounted for Rs 350 billion which is about 3.5% of the

total revenues. Retail market in the Indian organized sector is expected to cross Rs

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1000 billion by 2010.Traditionally the retail industry in India was largely

unorganized, comprising of drug stores, medium, and small grocery stores. Most of

the organized retailing in India have started recently and is concentrating mainly in

metropolitan cities.

The growth in the Indian organized retail market is mainly due to the change

in the Consumer’s behavior. This change has come in the consumer due to increased

income, changing lifestyles, and patterns of demography which are favorable. Now

the consumer wants to shop at a place where he can get food, entertainment, and

shopping all less than one roof. This has given Indian organized retail market a major

boost.

Retail market in the organized sector in India is growing can be seen from the

fact that 1500 supermarkets, 325 departmental stores, and 300 new malls are being

built. Many Indian companies have entered the Indian retail market which is giving

Indian organized retail market a boost.

1.3 GROWTH PHASE OF INDIAN RETAIL SECTOR TO CONTINUE

The phase of high growth of Indian retail sector is expected to Continue due to

huge amounts of investments and breaking up of traditional concepts in this sector.

These are leading to various changes and are providing further boost to the growth of

the Indian Retail Sector. The Indian Retail Sector that includes the traditional retail

and the modern retail is estimated to grow at a very fast pace from US$ 336 billion, in

2006 to US$ 590 billion, by 2011.The traditional retail sector is expected to increase

from US$ 324 billion, in 2006 to US$ 493 billion, by 2011. The share of the modern

retail in the Indian Retail Sector is also estimated to increase from 4% in 2008, to

16% in the next five years. This exceptional growth is expected to take place in the

retail sector due to large amounts of investment which is estimated to be about US$

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35 billion in the next five years. The "cash- and- carry" activities are expected to

receive the majority of investments.

The maximum amount of growth in the Indian Retail Sector will be registered

in the topmost 50 to 60 markets that are located in the urban areas. These markets

would be mostly supermarkets and hypermarkets. However, these supermarkets and

hypermarkets will also witness fast erosions in their margins. Further, it is estimated

that in the longer run, the convenient stores that are located in the local neighborhood

will continue to survive.

A major focus area in the Indian retail sector is the supply chain management.

In the western countries, the retail sector has a highly developed system of supply

chain. However developments in supply chain in Indian retail sector has been quite

slow.Other areas that need attention for the growth of the Indian retail sector to

continue includes duty and tax structures, infrastructure, rising land prices and

effective trend forecasting.

Trend forecasting needs to be done in the country especially in the segments

of cosmetics, apparel and footwear for this will help the retail companies to curtail

their expenses substantially. Also another area that requires attention is manpower for

it is estimated that the sector of Indian Retail will suffer from shortage of manpower

by about a million people, by 2012.

The chains in the Indian retail sector need to frequently change their stocks

and also adopt concepts like home delivery. If all these areas are given immediate

attention then the growth phase of Indian retail sector would continue at a very fast

pace. The Indian retail sector would then witness the setting up of retail parks that

are flourishing in Europe. Further, the growth Of the Indian retail sector would help

in making the country ready for big retailers by 2015-2016.

1.4 GROWTH FACTORS IN INDIAN ORGANISED RETAIL SECTOR

The Indian Retail growth can be attributed to the several factors including:

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Demography Dynamics: Approximately 60 per cent of Indian population below 30

years of age.

Double Incomes: Increasing instances of Double Incomes in most families coupled

with the rise in spending power.

Plastic Revolution: Increasing use of credit cards for categories relating to Apparel,

Consumer Durable Goods, Food and Grocery etc.

Urbanization: increased urbanization has led to higher customer density areas thus

enabling retailers to use lesser number of stores to target the same number of

customers. Aggregation of demand that occurs due to urbanization helps a retailer in

reaping the economies of scale. Covering distances has become easier: with increased

automobile penetration and an overall improvement in the transportation

infrastructure, covering distances has become easier than before. Now a customer can

travel miles to reach a particular shop, if he or she sees value in shopping from a

particular location.

1.5 SCOPE OF INDIAN RETAIL MARKET

The scope of the Indian retail market is immense for this sector is poised for

the highest growth in the next 5 years. The India retail industry contributes 10% of

the countries GDP and its current growth rate is 8.5%. In the Indian retail market the

scope for growth can be seen from the fact that it is expected to rise to US$ 608.9

billion in 2009 from US$ 394 billion in 2005.

The organized retailing sector in India is only 3% and is expected to rise to

25- 30% by the year 2010. There are under construction at present around 325

departmental stores, 300 new malls, and 1500 supermarkets. This proves that there is

a tremendous scope for growth in the Indian retail market.

The growth of scope in the Indian retail market is mainly due to the change in

the consumer’s behavior. For the new generation have preference towards luxury

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commodities which have been due to the strong increase in income, changing

lifestyle, and demographic patterns which are favorable.

The scope of the Indian retail market has been seen by many retail giants and that’s

the reason that many new players are entering the India retail industry.

The major Indian retailers are:

Pantaloons Retail India Ltd

Shoppers Stop

Bata India Ltd

Music World Entertainment Ltd.

1.6 OPPURTUNITIES IN INDIAN ORGANISED RETAIL SECTOR

The opportunities in Indian organized retail sector are many for this sector is

witnessing a boom. The retail industry in India amounted to US$ 200 billion in 2006,

and out of this amount the Indian organized retail sector amounted to US$ 6.4 billion.

The opportunities in India organized retail sector can be judged from the fact that by

2010 it is expected to rise to US$23 billion.

The various opportunities in the organized retail sector in India are mainly

there for the Indian consumers behavior pattern has changed. Now the Indian

consumer gets more hefty pay- packages, is younger, a large number of women are

working, western influences, and more disposable income have opened a lot of

opportunities in Indian organized retail sector.

The Indian consumer wants to shop, eat and get entertainment in one place

which has also given Indian organized retail sector an opportunity to grow. The

Indian government in 2005 allowed foreign direct investment (FDI) in single brand

retail to 51%. This has opened up a lot of opportunities in India organized retail

sector. In fact 325 departmental stores, 300 new malls, and 1500 supermarkets are

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being built which shows the tremendous opportunities in the organized retail sector in

India.

1.7 CHALLENGES FACING IN THE INDIAN ORGANIZED RETAIL

SECTOR

The challenges facing the Indian organized retail sector are various and these

are stopping the Indian retail industry from reaching its full potential. The behavior

pattern of the Indian consumer has undergone a major change. This has happened as

the Indian consumer is earning more now, western influences, women working force

is increasing, desire for luxury items and better quality. He now wants to eat, shop,

and get entertained under the same roof.All these have lead the Indian organized retail

sector to give more in order to satisfy the Indian customer.

The biggest challenge facing the Indian organized retail sector is the lack of

retail space. With real estate prices escalating due to increase in demand from the

Indian organized retail sector, it is posing a challenge to its growth. With Indian

retailers having to shell out more for retail space it is effecting there overall

profitability in retail. Trained manpower shortage is a challenge facing the organized

retail sector in

India. The Indian retailers have difficultly in finding trained person and also

have to pay more in order to retain them. This again brings down the Indian retailers

profit levels.

The Indian government has allowed 51% foreign direct investment (FDI) in

the India retail sector to one brand shops only. This has made the entry of global retail

giants to organized retail sector in India difficult. This is a challenge being faced by

the Indian organized retail sector.

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2. INCORPORATION AND HISTORY OF THE

ORGANISATION

FUTURE GROUP

Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one

of India’s leading business houses with multiple businesses spanning across the

consumption space.

While retail forms the core business activity of Future Group, group

subsidiaries are present in consumer finance, capital, insurance, leisure and

entertainment, brand development, retail real estate development, retail media and

logistics.

Led by its flagship enterprise, Pantaloon Retail, the group operates over 12

million square feet of retail space in over 63 cities and towns and 65 rural locations

across India.Headquartered in Mumbai (Bombay), Pantaloon Retail employs around

30,000 people and is listed on the Indian stock exchanges. The company follows a

multi-format retail strategy that captures almost the entire consumption basket of

Indian customers. In the lifestyle segment, the group operates Pantaloons, a fashion

retail chain and Central, a chain of seamless malls.

In the value segment, its marquee brand, Big Bazaar is a hypermarket format

that combines the look, touch and feel of Indian bazaars with the choice and

convenience of modern retail.

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In 2008, Big Bazaar opened its 100th store, marking the fastest ever organic

expansion of a hypermarket. The first set of Big Bazaar stores opened in 2001 in

Kolkata, Hyderabad and Bangalore.

The group’s specialty retail formats include, books and music chain, Depot,

sportswear retailer, Planet Sports, electronics retailer, Ezone, home improvement

chain, Home Town and rural retail chain, Aadhar, among others. It also operates

popular shopping portal, futurebazaar.com. Future Capital Holdings, the group’s

financial arm provides investment advisory to assets worth over $1 billion that are

being invested in consumer brands and companies, real estate, hotels and logistics. It

also operates a consumer finance arm with branches in 150 locations.

Other group companies include, Future Generali, the group’s insurance

venture in partnership with Italy’s Generali Group, Future Brands, a brand

development and IPR company, Future Logistics, providing logistics and distribution

solutions to group companies and business partners and Future Media, a retail media

initiative.

The group’s presence in Leisure & Entertainment segment is led through,

Mumbai-based listed company Galaxy Entertainment Limited. Galaxy leading leisure

chains, Sports Bar and Bowling Co. and family entertainment centres, F123. Through

its partner company, Blue Foods the group operates around 100 restaurants and food

courts through brands like Bombay Blues, Spaghetti Kitchen, Noodle Bar, The

Spoon, Copper Chimney and Gelato.

Future Group’s joint venture partners include, US-based stationery products

retailers, Staples, French women’s wear retailer, Etam, Middle East-based Axiom

Communications and India-based Blue Foods, Liberty Shoes, Talwalkars’ and Asian

Electronics.

The group’s flagship company, Pantaloon Retail was awarded the

International Retailer of the Year 2007, by the US-based National Retail Federation,

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the largest retail trade association and the Emerging Market Retailer of the Year 2007

at the World Retail Congress in Barcelona.

Future Group believes in developing strong insights on Indian consumers and

building businesses based on Indian ideas, as espoused in the group’s core value of

‘Indianness.’The group’s corporate credo is, ‘Rewrite rules, Retain values.’

The company’s leading formats include Pantaloons, a chain of fashion outlets,

Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain,

blends the look, touch and feel of Indian bazaars with aspects of modern retail like

choice, convenience and quality and Central, a chain of seamless destination malls.

Some of its other formats include, Depot, Shoe Factory, Brand Factory, Blue Sky,

Fashion Station, aLL, Top 10, m Bazaar and Star and Sitara. The company also

operates an online portal, futurebazaar.com.

A subsidiary company, Home Solutions Retail (India) Limited, operates

Home Town, a large-format home solutions store, Collection i, selling home furniture

products and E-Zone focused on catering to the consumer electronics segment.

Pantaloon Retail was recently awarded the International Retailer of the Year

2007 by the US based National Retail Federation (NRF) and the Emerging Market

Retailer of the Year 2007 at the World Retail Congress held in Barcelona.Pantaloon

Retail is the flagship company of Future Group, a business group catering to the

entire Indian consumption space

SIX VERTICALS OF FUTURE GROUP

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FUTURE RETAIL IS FURTHER DIVIDED INTO:

PANTALOON RETAIL

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FUTURE GROUP

FUTURE RETAIL

FUTURE MEDIA

FUTURE LOGISTIC

S

FUTURE SPACE

FUTURE BRANDS

FUTURE CAPITAL

FUTURE RETAIL

PANTALOONS RETAIL INDIA

LIMITED

HOME SOLUTIONS

RETAIL INDIA LIMITED

CONVERGE M

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MAJOR MILESTONES

1987 - Company incorporated as Menz Wear Private Limited. Launch of Pantaloon

trouser brand, India’s first formal trouser brand

1991 - Launch of BARE, the Indian jeans brand

1992 - Initial public offer (IPO) was made in the month of May

1994 - The Pantaloon Shoppe – exclusive menswear store in franchisee format

launched across the nation. The company starts the distribution of branded garments

through multi-brand retail outlets across the nation

1995 - John Miller – Formal shirt brand launched

1997 – Company enters modern retail with the launch of the first 8000 square store,

Pantaloons in Kolkata

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2001 – Three Big Bazaar stores launched within a span of 22 days in Kolkata,

Bangalore and Hyderabad

2002 - Food Bazaar, the supermarket chain is launched

2004 - Central - India’s first seamless mall is launched in Bangalore

2005 - Group moves beyond retail, acquires stakes in Galaxy Entertainment, Indus

League Clothing and Planet Retail. Sets up India’s first real estate investment fund

Kshitij to build a chain of shopping malls

2006 - Future Capital Holdings, the company’s financial is formed to manage over

$1.5 billion in real estate, private equity and retail infrastructure funds. Plans forays

into retailing of consumer finance products.

Home Town, a home building and improvement products retail chain is

launched along with consumer durables format, Ezone and furniture chain, Furniture

Bazaar.

Future Group enters into joint venture agreements to launch insurance

products with Italian insurance major, Generali. Forms joint ventures with French

retailer, ETAM Group and US office stationery retailer, Staples

2007 - Future Group crosses $1 billion turnover mark.

Specialized companies in retail media, logistics, IPR and brand development and

retail-led technology services become operational.

Pantaloon Retail wins the International Retailer of the Year at US-based

NationalRetail Federation convention in New York and Emerging Retailer of the

Year award at the World Retail Congress held in Barcelona.

Futurebazaar.com becomes India’s most popular shopping portal

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2008 - Future Capital Holdings becomes the second group company to make a

successful Initial Public Offering in the Indian capital markets.

Big Bazaar crosses the 100-store mark, marking one of the fastest ever expansion of a

hypermarket format anywhere in the world.

Total operational retail space crosses 10 million square feet mark.

Future Group acquires rural retail chain, Aadhar present in 65 rural locations

3 . MISSION \ VISION STATEMENTS.

GROUP VISION

Future Group shall deliver Everything, Everywhere, Every time for Every Indian Consumer in the most profitable manner.

GROUP MISSIONWe share the vision and belief that our customers and stakeholders shall be

served only by creating and executing future scenarios in the consumption space leading to economic development.

FUTURE GROUP MANIFESTOWe, in Future Group, will not wait for the Future to unfold itself but create

future scenarios in the consumer space and facilitate consumption because consumption is development. Thereby, we will effect socio-economic development for our customers, employees, shareholders, associates and partners.Our customers will not just get what they need, but also get them where, how and when they need.

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We will not just post satisfactory results, “Future” – the word which signifies optimism, growth, achievement, strength, beauty, rewards and perfection. Future encourages us to explore areas yet unexplored, write rules yet unwritten; create new opportunities and new successes. To strive for a glorious future brings to us our strength, our ability to learn, unlearn and re-learn our ability to evolve.

We will write success stories. We will not just operate efficiently in the Indian economy, we will evolve it. We will not just spot trends; we will set trends by marrying our understanding

of the Indian consumer to their needs of tomorrow.It is this understanding that has helped us succeed. And it is this that will help us succeed in the Future. We shall keep relearning. And in this process, do just one thing. Rewrite Rules. Retain Values.

4. CORPORATE OFFICE AND NUMBER OF UNITS

The company is head quarters in Mumbai and has got 850 retail stores. The group

operates over 12 million square feet of retail space in over 63 cities and towns and 65

rural locations across India.

Corporate office address:

Knowledge House Off

Jogeshwari - Vikhroli Link Road

Shyam Nagar

Mumbai

Maharashtra – 400060

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5. EMPLOYEE STRENGTH OF BIG BAZAAR, KSRTC

Total number of employees (excluding promoters& part timers) - 105

Promoters- 20

Part timers - 20

6. VARIOUS DEPARTMENTS AT BIG BAZAAR

Food bazaar

GM Home- Electronics bazaar, Furniture bazaar

GM fashion- Toys and sports

Star and sitara,

F123

Cashiering

Home delivery

PUC- Plastics, Utensils, Crockery

Depot

Apparels-Men’s, ladies, kids

Footwear

NBD

SUPPORT TEAMS- HR, logistics, Maintenance , CSD

7. SWOT ANALYSIS

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STRENGTH

High volume

State of the art infrastructure

Variety of stuff under single roof

High Brand – equity

Multi locations nation wide

WEAKNESS

Unavailable at all major cities and towns

Unreachable to each & every customer

Low perception among weak sections of the society.

OPPORTUNITIES

Organized retail

Evolving consumer preference

New revolution of social status

Rural –urban exodus

THREATS

Competitors

New entrants ( such as Cash & Carry)

Govt. policies ( FDI )

Political & legal factors

Operation in risk by increasing the size

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8. HR POLICIES AND PROCEDURE

The store works in two shifts or staggered timings decided by the store

manager /assistant store manager

Each shift will be 10 hours including one lunch break and tea breaks each for a full

work day

• Normally the store opens at 10 am

• SHIFT TIMINGS weekend : 3 shifts (9:00 a.m, 11:30 a.m, 1:30 p.m)

• Week days: two shifts (9:00 a.m, 1:30 p.m)

• Every employee should get one day off in a week, mutually agreed by the

SM/ASM/DM on any day between Monday & Friday

• It is compulsory to sign in an attendance register / use the swipe card as per

the shop and establishment act

COMPENSATORY OFF

• All employees authorized to work on their weekly off/declared holidays

• Any compensatory off needs to be availed within 90 days from the eligible

date. Encashment of compensatory off is not permissible

LEAVE YEAR

• The year for calculation of leave would be the financial year i.e., 1st July –

30th June.

TYPES OF LEAVES

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• SL – 7 days

• CL – 7 days

• EL – 30 days

• 7 days during the probation period is allowed

• All trainees Management / Executive) can avail of an advance all-purpose

leave of 15 days during the training period,

• The above will be adjusted against their leave balance.

ALL PURPOSE LEAVE (APL)

• Leave accumulation will be permissible up to a period of 90 days.

• Only 15 days of leave can be carried forward to the next year.

• Encashment of leave is not permissible during the tenure of service.

• Leave can be encashed only at the time of severance / separation from the

company. 

•   Leave will be encashed at the time of last drawn monthly gross salary.

MATERNITY LEAVE

• Only applicable to Female Employees for pregnancy, delivery, post delivery,

and others as provided by Law.

• A maximum of 84 days leave will be granted. 42 days prior expected date of

delivery and 42 days after

Eligibility: Minimum 160 days of service with the organization

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• The concerned employee should have been in employment for a minimum

period of 160 days.

• In case of miscarriage or abortion, Maternity Leave will be admissible up to

six weeks immediately following the day of her miscarriage or abortion.

• Maternity leave is only applicable for first two children in the family

PROCESS OF AVAILING LEAVE

• All applications for leave must be made in advance through the printed form

of Leave Application.

The application form has to be approved by the employee’s HOD /

Immediate Manager and passed to HR.

It is an employee’s responsibility to ensure that the duly approved leave is

received by the HR including details on type of leave and reason for leave.

COMPENSATION

• Bonus

• Salary disbursement

• Deductions

• Provident Fund (P.F.) :

• Employees State Insurance Corporation (E.S.I.C.).

• Professional Tax (PT)

• Income tax (IT)

BENEFITS

• Locker Facility

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• Uniforms

• Gift Vouchers

• Loans

• Salary advance

• Special Privilege scheme

• Late sitting Allowance

• Celebration

• Pantaloon Shishya

• Pantaloon Foundation

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SECTION II

PROBLEM CENTERED STUDY OF THE ORGANISATION

LITERATURE REVIEW

INTRODUCTION

Organisation Commitment

Organizational commitment in recent years has become an important concept

in organizational research and in the understanding of employees' behaviour in the

workplace. It reflects the extent to which employees identify with an organization and

are committed to its goals. A meta-analysis of 68 studies and 35,282 individuals

revealed a strong relationship between organizational commitment and job

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satisfaction (Tett and Meyer, 1993). However, another study showed that only 38 per

cent of employees feel any long-term commitment to their organization (Today,

1995). Yet greater organizational commitment can aid higher productivity (Mathieu

and Zajac, 1990)

Since the 1960s employee commitment continues to be one of the most

exciting issues for both managers and researchers. The term commitment enjoys an

increasing vogue in sociological discussion. It is used in analyses of both individual

and organizational behaviour. It is used in a descriptive concept to mark out forms of

action characteristic of particular kinds of behaviour of individuals and groups

(Becker,1960). Organizational commitment in the fields of Organizational Behaviour

and Industrial/Organizational Psychology is, in a general sense, the employee's

psychological attachment to the organization. It can be defined as an employee's

feelings about their job, and Organizational Identification, defined as the degree to

which an employee experiences a 'sense of oneness' with their organization.

Because the term has been used to express a varied assortment of ideas, it is

fruitless to speculate on its real meaning. The sociologists argue that commitment and

the authority that organizations have over members is rooted in the nature of

employee involvement in the organization. In this case involvement can take one of

the three forms ie, moral involvement, calculative involvement or alienative

involvement. Organizational researchers and social psychologists view commitment

quite differently. Organizational researchers study attitudinal commitment, focusing

on how employees identify with the goals and values of the organization. This is

commitment viewed primarily from the standpoint of the organization. Social

psychologists study behavioral commitment, focusing on how a person's behaviour

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serves to bind him to the organization. Once behaviour shows commitment, people

must adjust their attitudes accordingly, which then influence their subsequent

behaviour. Thus a cycle begins: behaviour shapes attitudes and the shaped attitudes in

turn shape behaviour. The major driving force behind this continuous recognition of

commitment in the management literature over more than three decades is that it is

often seen as the key to ‘business success’ (Benkhoff, 1997). More recently, some

researchers (e.g. Baruch, 1998), have started doubting the viability and suitability of

organizational commitment (OC) to today’s fast changing environment in the West.

On the contrary, other researchers argue that one of the key year 2000 issues is

organizational commitment. The recent perspective of multidimensional

organizational commitment is taking over from the one-dimensional approach that

has dominated management research for more than three decades. Studies involving a

variety of professions, including research scientists and engineers (Steers, 1977),

employees in nursing departments (Curry et al., 1986), clergy (Baack et al., 1993),

and police officers (Dunham et al., 1994), have shown that a range of variables are

related to organizational commitment. These variables include organizational

characteristics, job characteristics, and demographic characteristics.

One commonly used definition of organizational commitment was developed

by Porter et al. (1974). Organizational commitment is defined as the relative strength

of an individual’s identification with and involvement in a particular organization.

Mowday, Porter, and Steers(1982), affective organizational commitment can be

characterized by three related factors (1)a strong belief in and acceptance of the

organization’s goals and values; (2)a willingness to exert considerable effort on

behalf of the organization and (3)a strong desire to maintain membership in the

organization.

Murray, Gregoire, & Downey, 1991: The counterpart to affective

organizational commitment is continuance organizational commitment, which

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considers the idea that individuals do not leave a company for fear of losing their

benefits, taking a pay cut, and not being able to find another job.

Hunt, Chonko and Wood,1985: organizational commitment was defined as a

strong desire to remain a member of a particular organization, given opportunities to

change jobs.

O'Reilly and Chatman,1986: attempted to clarify the construct of

organizational commitment, focusing on the bases of the employee's psychological

attachment to the organization. They distinguished three bases of commitment--

compliance, identification and internalization--and suggested that these three bases of

commitment `may represent separate dimensions of commitment.

Maume,2006: Organizational Commitment is typically measured by items

tapping respondents’ willingness to work hard to improve their companies, the fit

between the firm’s and the worker’s values, reluctance to leave, and loyalty toward or

pride taken in working for their employers.

Organizational commitment, as an attitude, has been defined as the relative

strength of an individual’s identification with, and involvement in, a particular

organization (Mowday et al., 1979; Allan and Meyer, 1990). This definition,

reflecting an individual’s affective commitment, represents a major approach to

the study of organizational commitment (Meyer et al., 2002), and appears to be the

most desired form of commitment. Employees with strong organizational

commitment continue employment with the organization because they want to do so

(Ghani et al., 2004). In order to achieve organizational commitment, employers need

to help their employees’ value involvement in the organization. The more the

employees’ value being part of the organization, the more likely they are to stay with

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the organization. Early research considered organizational commitment to be a

construct with a single dimension; however, it is now widely accepted as being multi-

dimensional (Meyer & Allen, 1997). In other words, more than one form of

attachment exists to describe the nature of this psychological tie or mind-set.Many

factors influence employee commitment. These include commitment to the manager,

occupation, profession, or career (Meyer & Allen, 1997). Organizational

commitment focuses on employees’ commitment to the organization.

In 1984, Meyer and Allen proposed a bi-dimensional conceptualization of

organizational commitment that drew on these early works, labelling the former view

as affective and the latter as continuance commitment. In 1990, they added a third

component, namely, normative commitment (Allen and Meyer, 1990). Originally

introduced by Weiner and Vardi (1980), normative commitment refers to feelings of

obligation to stay with an organization because of the belief that it is the right thing to

do. Meyer and Allen (1991) argued that common to these approaches is the view that

commitment is a psychological state that (a)characterizes the employee’s relationship

with the organization and (b) has implications for the decision to continue or

discontinue membership in the organization. Meyer and Allen (1991) further argued

that affective, continuance and normative commitment are components, rather than

types, of commitment as an employee’s relationship with an organization might

reflect varying degrees of all three. Beyond this, however, the nature of these

psychological states differs and the three components of commitment are argued to

develop from different antecedents and to have different implications for job-related

outcomes other than turnover (for a review, see Allen and Meyer, 1996; Meyer and

Allen, 1997).

Affective commitment develops mainly from positive work experiences, such

as job satisfaction and organizational fairness, and is associated with desirable

outcomes, such as higher levels of organizational citizenship behaviours and lower

levels of withdrawal behaviours like absenteeism and tardiness. Continuance

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commitment, on the other hand, has been shown to have two primary antecedents:

lack of job alternatives and ‘side-bets’, that is, anything that increases the cost of

quitting, such as investments in the organization in terms of time, money and effort.

Continuance commitment as such represents a need to stay with the organization and

is not related to positive organizational or individual outcomes. Finally, normative

commitment is argued to develop from organizational commitment norms that

develop pre-entry (through familial and cultural socialization) or post-entry (through

organizational socialization) and appears to be predictive of positive outcomes, not as

strongly as affective commitment (Wasti, 2002).

Theoretical Background

Interest in organizational commitment has led to the development of

several instruments to measure the construct. Morrow (1983) noted that there were

some 25 concepts and measures related to commitment, and Sutton and Harrison

(1993) called for a moratorium on developing additional measures until existing ones

could be further analyzed and tested. One of the major models of organizational

commitment is that Developed by Meyer and Allen (1991), which conceptualizes

organizational commitment in terms of three distinct dimensions: affective,

continuance, and normative.

Affective commitment

For several authors, the term commitment is used to describe an affective

orientation toward the organization. Kanter (1968), for example, defined what she

called "cohesion commitment" as the attachment of an individual's fund of affectivity

and emotion to the group. Likewise, Buchanan (1974) described commitment as a

partisan, affective attachment to the goals and values, and to the organization for its

own sake, apart from its purely instrumental worth. Porter and his associates

(Mowday, Steers and Porter, 1979; Porter, Crampon and Smith, 1976; Porter, Steers,

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Mowday and Boulian, 1974) described commitment as the relative strength of an

individual's identification with and involvement in a particular organization. It is a

"partisan affective attachment to the goals and values of an organization apart from its

instrumental worth" (Popper and Lipshitz, 1992). Employees who are affectively

committed to an organization remain with it because they want to do so (Meyer,

Allen and Gellatly, 1990).

Continuance Commitment

For Stebbins (1970), continuance commitment was the awareness of the

impossibility of choosing a different social identity because of the immense penalties

involved in making the switch. Still others have used the term "calculative" to

describe commitment based on a consideration of the costs and benefits associated

with organizational membership that is unrelated to affect (Etzioni, 1975; Hrebiniak

and Alutto, 1972; Stevens, Beyer and Trice, 1978). Finally, Farrell and Rusbult

(1981) suggested that commitment is related to the probability that an employee will

leave his job and involves feelings of psychological attachment which is independent

of affect. Meyer and Allen (1991) suggested that recognition of the costs ssociated

with leaving the organization is a conscious psychological state that is shaped by

environmental conditions (e.g. the existence of side bets) and has implications for

behaviour (e.g. continued employment with the organization). Employees wise

primary link to the organization is based on continuance commitment remain because

they need to do so (Meyer and Allen,1991).

Normative Commitment

Finally, a less common, but equally viable, approach has been to view

commitment as an obligation to remain with the organization. Marsh and Mannari

(1977), for example, described the employee with "lifetime commitment" as one who

considers it morally right to stay in the company, regardless of how much status

enhancement or satisfaction the firm gives over the years. In a similar vein, Wiener

(1982) defined commitment as the totality of internalized normative pressures to act

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in a way which meets organizational goals and interests and suggested that

individuals exhibit these behaviours solely because they believe it is the right and

moral thing to do. Normative commitment is characterized by feelings of loyalty to a

particular organization resulting from the internalization of normative pressures on

the individual (Popper and Lipshitz,1992). Employees with a high level of normative

commitment feel they ought to remain with the organization (Meyer and Allen,

1991).

In arguing for their framework, Meyer & Allen (1991) contended that affective, continuance, and normative commitment were components rather than types because employees could have varying degrees of all three. “For example, one employee might feel both a strong attachment to an organization and a sense of obligation to remain. A second employee might enjoy working for the organization but also recognize that leaving would be very difficult from an economic standpoint. Finally, a third employee might experience a considerable degree of desire, need, and obligation to remain with the current employer” (Meyer & Allen, 1997, p. 13) Even though the authors present this argument, they do not imply that there is a rationale for summing all the scales to obtain an overall score for organizational commitment. Consequently, for this research, the different scales will be referred to as types rather than components

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CHAPTER 1

PROBLEM FORMULATION

i) TITLE OF THE STUDY :

To study the level of organisational commitment among Big Bazaar

employees

ii) BACKGROUND OF THE STUDY

Organizational commitment in recent years has become an important concept

in organizational research and in the understanding of employees' behaviour in the

workplace. It reflects the extent to which employees identify with an organization

and are committed to its goals. A meta-analysis of 68 studies and 35,282 individuals

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revealed a strong relationship between organizational commitment and job

satisfaction (Tett and Meyer, 1993). However, another study showed that only 38 per

cent of employees feel any long-term commitment to their organization (Today,

1995). Yet greater organizational commitment can aid higher productivity (Mathieu

and Zajac, 1990).

Interest in organizational commitment has led to the development of several

instruments to measure the construct. Morrow (1983) noted that there were some 25

concepts and measures related to commitment, and Sutton and Harrison (1993)

called for a moratorium on developing additional measures until existing ones could

be further analyzed and tested. One of the major models of organizational

commitment is that Developed by Meyer and Allen (1991), which conceptualizes

organizational commitment in terms of three distinct dimensions: affective,

continuance, and normative.

iii) STATEMENT OF THE PROBLEM

Employees are one of the most important determinants and leading factors

that determine the success of an organization in a competitive environment. This is

especially true for service organizations that rely heavily on their good behavioural

employees to provide friendly and courteous services to their customers in this

competitive environment. For keeping their customers happy and satisfied, the

organization should have highly committed employees. With the increasing levels of

development, the working environment has also become more competitive. In order

to survive in this competitive environment, an organization should have highly

committed employees.

IV) RELEVANCE OF THE STUDY

The research helps the organization in understanding the importance of

organizational commitment of the employees in achieving its goals. Organizational

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Commitment is highly valuable. This is because a highly committed employee will

identify with the goals and values of the organization, has a stronger desire to belong

to the organization and is willing to display greater organizational citizenship

behaviour. Highly committed employees wish to remain associated with the

organisation and advance organisational goals, and are therefore less likely to leave.

A committed employee will be more eager about his job and more motivated to

dedicate a lot of time and effort to accomplish the tasks required.

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CHAPTER II

RESEARCH PROCESS

Objective of the Study

To study the level of Organizational Commitment among big Bazaar employees,KSRTC

Specific Objective of the Study

1) To measure organizational commitment.

2) To study the relationship between the personal factors of the employee (Age, Experience, Gender etc.)

Research Design

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Type of research: Descriptive Research

Data Collection:

Primary data- Questionnaire

Secondary data- daily interaction,websites, reference books

Sampling:

Sampling Design- convenient sampling

Population- Employees of Big Bazaar,KSRTC

Sample Unit- shop floor employees & Managers

Sample size- 100 employees

Tools for data collection:

Organizational commitment: Organizational Commitment Questionnaire developed by Meyer, Allen, and Smith (1993) is used to assess organizational commitment.

Tools for Data Analysis: Percentage Method

Limitations of the study

o Errors due to the bias of respondents cannot be ruled out in this study.

o Reluctance of the employees to disclose the facts.

o Reluctance of employees to co-operate.

o The validity of the study depends upon the information gathered through

primary data collection techniques.

o Human nature is very dynamic and thus the level of organizational

commitment may vary from time to time.

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o Findings of the study cannot be generalized as it is specific to Big Bazaar

KSRTC

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PRESENTATION AND

ANALYSIS OF DATA

The data analysis is done by considering the different dimensions of commitment coined by Allen and Mayer. They are

Affective Normative & continuous

The population includes

1. Band 1 employee (team member & team leader)

2. Band 2 employees (DM, ADM &SM)

3. Support function (HR, Maintenance and CSD)

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(Includes both males and females)

Sample Size

CATEGORY NUMBER OF RESPONDENTS

Band 1 75

Band 2 15

Support function 10

TOTAL 100

AFFECTIVE COMMITMENT:

Q1. I would be happy to spend the rest of my career with this organisation

FACTOR NUMBER OF RESPONDENTS

PERCENTAGE (%)

Strongly Disagree 50 50%

Disagree 0 0

Agree 15 15%

Strongly Agree 35 35%

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ANALYSIS

86% of the employees strongly agree with the statement,7% agrees with the statement

only 7% strongly disagree with the statement

Q2: I enjoy discussing my organisation with people outside it

FACTOR NUMBER OF RESPONDENTS

PERCENTAGE (%)

Strongly Disagree 15 15%

Disagree 0 0

Agree 35 35%

Strongly Agree 50 50%

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ANALYSIS

50% of the population strongly agrees with the statement & only 15% strongly

disagree with the given statement

Q3. I feel as if this organisation’s problems are my own

FACTOR NUMBER OF RESPONDENTS

PERCENTAGE (%)

Strongly Disagree 25 25%

Disagree 33 33%

Agree 30 30%

Strongly Agree 10 10%

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ANALYSIS

25% of the respondents strongly disagreed with the statement & 33% disagreed with

it .while 10% strongly agreed with the given statement.

Q4: I do not think I could become as attached to another organisation as I am to

this one

FACTOR NUMBER OF RESPONDENTS

PERCENTAGE (%)

Strongly Disagree 10 10%

Disagree 5 5%

Agree 20 20%

Strongly Agree 65 65%

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ANALYSIS

65% of the employees have strongly agreed with the statement while only 10 % of the

employee strongly disagreed with the statement.

Q5. I feel as a” part of the family” at my organisation

FACTOR NUMBER OF RESPONDENTS

PERCENTAGE (%)

Strongly Disagree 10 10%

Disagree 0 0%

Agree 5 5%

Strongly Agree 85 85%

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ANALYSIS

85% of the population strongly agreed with the statement and only 10% of the

population disagreed with the given statement.

Q6: I feel emotionally attached to this organisation

FACTOR NUMBER OF RESPONDENTS

PERCENTAGE (%)

Strongly Disagree 40 40%

Disagree 5 5%

Agree 20 20%

Strongly Agree 35 35%

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ANALYSIS

35% of the population is emotionally attached to the organisation while 40% have

strongly disagreed with it.

Q7: This organisation has a personal meaning for me

FACTOR NUMBER OF RESPONDENTS

PERCENTAGE (%)

Strongly Disagree 10 10%

Disagree 4 4%

Agree 20 20%

Strongly Agree 60 60%

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ANALYSIS

60% of the respondents strongly agrees that they have a personal meaning to this

organisation but only 10% strongly disagrees that they don’t have a personel meaning

to this organisation.

Q8: I feel a strong sense of belonging to my organisation

FACTOR NUMBER OF RESPONDENTS

PERCENTAGE (%)

Strongly Disagree 10 10%

Disagree 5 5%

Agree 10 10%

Strongly Agree 75 75%

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ANALYSIS

75% of the population feels a strong sense of belongingness and only 10% disagree

with the statement.

CONTINUANCE COMMITMENT

Q9: It would be hard for me to leave my organisation right now, even if I

want to

FACTOR NUMBER OF RESPONDENTS

PERCENTAGE (%)

Strongly Disagree 35 35%

Disagree 15 15%

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Agree 20 20%

Strongly Agree 25 25%

ANALYSIS

37% of the employees strongly disagree with the statement and only 26% agrees with

the given statement

Q10: My life would be disrupted if I decided I want to leave my organisation now

FACTOR NUMBER OF RESPONDENTS

PERCENTAGE (%)

Strongly Disagree 20 20%

Disagree 5 5%

Agree 20 20%

Strongly Agree 55 55%

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ANALYSIS

55% of the population strongly agreed with the mentioned statement, 20% strongly

disagreed with it

Q11: I am afraid of what might happen if I quit my job without having another one line up

FACTOR NUMBER OF RESPONDENTS

PERCENTAGE (%)

Strongly Disagree 10 10%

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Disagree 5 5%

Agree 20 20%

Strongly Agree 65 65%

ANALYSIS

65% strongly agreed with the statement and Only 10% disagreed with it

Q12: It would be costly for me to leave my organisation right now

FACTOR NUMBER OF RESPONDENTS

PERCENTAGE (%)

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Strongly Disagree 14 14%

Disagree 12 12%

Agree 24 24%

Strongly Agree 60 60%

ANALYSIS

54% of the employees strongly agrees with the statement and only 13% strongly

disagrees with it.

Q 13: Right now staying with my organisation is a matter of necessity than desire

FACTOR NUMBER OF RESPONDENTS

PERCENTAGE (%)

Strongly Disagree 10 10%

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Disagree 2 2%

Agree 18 18%

Strongly Agree 70 70%

ANALYSIS

Majority of the population accepted that it is a matter of necessity than desire and

only 10% disagreed with it

Q14: I feel I have little option to consider leaving this organisation

FACTOR NUMBER OF RESPONDENTS

PERCENTAGE (%)

Strongly Disagree 50 50%

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Disagree 25 25%

Agree 5 5%

Strongly Agree 20 20%

ANALYSIS

50% of them strongly disagreed with the statement,20% of them strongly agreed with

it

Q15: One of the serious consequences of leaving this organisation would be scarcity of available alternatives

FACTOR NUMBER OF RESPONDENTS

PERCENTAGE (%)

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Strongly Disagree 70 70%

Disagree 12 12%

Agree 18 18%

Strongly Agree 0 0%

ANALYSIS

70 % of the population strongly disagreed with the fact

Q16: One of the major reasons I continue to work for this organisation is that leaving would require personnel sacrifice; another organisation may not match the overall benefits I have here

FACTOR NUMBER OF PERCENTAGE

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RESPONDENTS (%)

Strongly Disagree 34 34%

Disagree 5 5%

Agree 17 17%

Strongly Agree 44 44%

ANALYSIS:

44% strongly agrees with the statement and 34% strongly disagrees

NORMATIVE COMMITMENT:

Q17: I think people these days move from organisation to organisation too often

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FACTOR NUMBER OF RESPONDENTS

PERCENTAGE (%)

Strongly Disagree 10 10%

Disagree 2 2%

Agree 28 28%

Strongly Agree 60 60%

ANALYSIS:

Majority of the population strongly agreed with the statement

Q18: I believe that a person must always be loyal to his/her organisation

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FACTOR NUMBER OF RESPONDENTS

PERCENTAGE (%)

Strongly Disagree 53 53%

Disagree 4 4%

Agree 0 0%

Strongly Agree 43 43%

ANALYSIS:

53% strongly disagree with the specified statement

Q19: Jumping from organisation to organisation seems to be unethical to me

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FACTOR NUMBER OF RESPONDENTS

PERCENTAGE (%)

Strongly Disagree 10 10%

Disagree 5 5%

Agree 20 20%

Strongly Agree 65 65%

ANALYSIS:

65% strongly agree with the statement, 10% strongly disagreed with it

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Q20: I believe that loyalty is important and therefore I feel strong sense of moral

obligation to remain

FACTOR NUMBER OF RESPONDENTS

PERCENTAGE (%)

Strongly Disagree 20 20%

Disagree 5 5%

Agree 30 30%

Strongly Agree 45 45%

ANALYSIS:

45% strongly agreed with the statement and only 20% sttrongly disagreed with it

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Q21: If I got another offer for a better job elsewhere, I would not feel it was right to leave my organisation

FACTOR NUMBER OF RESPONDENTS

PERCENTAGE (%)

Strongly Disagree 38 38%

Disagree 21 21%

Agree 20 20%

Strongly Agree 21 21%

ANALYSIS:

38% of the population strongly disagreed with the statement

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Q22: I was taught to believe in the value of remaining loyal to the organisation

FACTOR NUMBER OF RESPONDENTS

PERCENTAGE (%)

Strongly Disagree 30 30%

Disagree 15 15%

Agree 25 25%

Strongly Agree 30 30%

ANALYSIS:

30% of the population strongly agreed with the statement, while 30% strongly

disagreed

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Q23: Things were better in the days when people stayed in one organisation for

most of their careers

FACTOR NUMBER OF RESPONDENTS

PERCENTAGE (%)

Strongly Disagree 52 52%

Disagree 2 2%

Agree 36 36%

Strongly Agree 10 10%

ANALYSIS:

52% of the population strongly disagree with the above statement , 36% of trhe

population agrees with it

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Q24. I think wanting to be a company man or company woman is sensible

FACTOR NUMBER OF RESPONDENTS

PERCENTAGE (%)

Strongly Disagree 10 10%

Disagree 5 5%

Agree 20 20%

Strongly Agree 65 65%

ANALYSIS:

65%strongly agreed with the statement ,10% disagreed with it

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ANALYSIS OF DEMOGRAPHIC DETAILSTABLE 1

Table showing the age of the respondents

Age Number of Respondents

Percentage (%)

21-30 68 68%

31-40 32 32%

CHART 1

Chart showing the age of the respondents

Inference:

68% of the respondents were in the age group of 21-30, 32% of them were of the agegroup 31-40

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TABLE 2

Table showing the experience of the respondents

Experience Number of Respondents

Percentage (%)

Below 1yr 23 23%

1-2yrs 57 57%

Above 3yrs 20 20%

Chart showing the experience of the respondents

Inference:

57% of the employees have 1-2years experience and 23% of them have more than 3 years experience. Only 20% of them have less than 1 year of experience

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CHAPTER IV

FINDINGS AND SUGGESTIONS

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FINDINGS

There is a low level of affective commitment among the shop floor employees

There is low level of normative commitment among the total population

Employees with more than 3years of experience shows high level of effective

commitment

The continuance commitment is seen highly among the employees of

experience between 2-3 years

It has been found out that there are two factors that majorly influence

continuance commitment they are the cost of leaving and the availability of

alternative

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SUGGESTION

The awareness of performance based promotion should be created

Salary mismatch between the experienced and the new member should be

avoided

Fun at work culture helps to increase the commitment level among

employees

Information sharing and employee participation in decision making helps

to increase the commitment level

Providing nonfinancial benefit can also help in increasing the commitment

level

Providing the necessary freedom in their work can help to increase the

commitment towards work and organisation

.

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CHAPTER V

CONCLUSIONS

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CONCLUSIONS

The study is conducted to analyse the level of the employees commitment in

Big Bazaar,KSRTC Bangalore. It has been found out that the Band 2 employees that

is the officers shows a high level of affective commitment while compared with the

Band1 employees. It also been found out that there is a high level of continuance

commitment among the Band 2 employees and it is found out that generally there is

low level of normative commitment among the population.

Employees with strong organizational commitment continue employment with

the organization because they want to do so. In order to achieve organizational

commitment, employers need to help their employees’ value involvement in the

organization. The more the employees’ value being part of the organization, the more

likely they are to stay with the organization.

Organizational Commitment is highly valuable. This is because a highly

committed employee will identify with the goals and values of the organization, has a

stronger desire to belong to the organization and is willing to display greater

organizational citizenship behaviour. Highly committed employees wish to remain

associated with the organisation and advance organisational goals, and are therefore

less likely to leave. A committed employee will be more eager about his job and more

motivated to dedicate a lot of time and effort to accomplish the tasks required.

With the increasing levels of development, the working environment has also

become more competitive. In order to survive in this competitive environment, an

organization should have highly committed employees.

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BIBLIOGRAPHY

1) Allen, N. J., & Meyer, J. P. (1990). The measurement and antecedents of affective, continuance, and normative commitment to the organization. Journal of Occupational Psychology, 63, 1-18.

2) Iles, P., Mabey, C., & Robertson, I. (1990). HRM practices and employee commitment: possibilities, pitfalls and paradoxes. British Journal of Management, 1, 147-157.

3) Jaros, S. T., Jermier, J. M., Koehler, J. W., & Sincich, T. (1993). Effects of continuance, affective, and moral commitment on the withdrawal process: An evaluation of eight structural equation models.

4) Kalliath, T. J., O’Driscoll, M. P., & Gillespie, D. F. (1998). The relationship between burnout and organizational commitment in two samples of health professionals. Work & Stress 12(2), 179-185.

5) Meyer, J. P., & Herscovitch, L. (2001). Commitment in the workplace: Toward a general model. Human Resource

6) Meyer, J. P., & Smith, C. A. (2000). HRM practices and organizational commitment: Test of a mediation model. Canadian Journal of Administrative Sciences, 17(4), 319-331.

7) Meyer, J. P., Stanley, D. J., Herscovitch, L., & Topolnytsky, L. (2002). Affective, continuance, and normative commitment in the organization: a meta-analysis of antecedents, correlates, and consequences. Journal of Vocational Behavior, 61, 20-52.

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8) Mowday, R. T., Steers, R. M. & Porter, L. W. (1979), “The measurement of organizational commitment”, Journal of Vocational Behavior, Vol. 14, pp. 224-247.

9) Mowday, R. T., Steers, R. M. & Porter, L. W. (1982), Employee-organization linkages: The psychology of commitment, absenteeism, and turnover, Academic Press, New York.

10) Nyhan, R. C. (1999). Increasing affective organizational commitment in public organizations: The key role of interpersonal trust. Review of Public Personnel Administration, 19, 58-70.

11) Bowen, D.E., Ledford, G.E., & Nathan, B.R (1991). Hiring for the organization, not the job. Academy of Management Executive, 4, 35-51.

12) Robert D. Bretz Jr. and Timothy A. Judge (1992). The Relationship Between Person-Organization Fit and Career Success, p.2-15

13) Meyer, J.P. and Allen, N.J(1991).A three component conceptualization of organizational commitment. Human Resource Management Review, 1, 61-89

WEBSITES

www.futuregroup.in

www.wikipedia.org

www.pantaloon.com

http://business. mapsofindia.com/Indian retail-industry/

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ANNEXURE

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QUESTIONNAIR

NAME: AGE:

SEX: MARITAL STATUS:

QUALIFICATION: DEPARTMENT:

DESIGNATION: EXPIRIENCE:

Please indicate your level of agreement with the following statements. Mark a number for each statement.

4-strongly agree, 3- agree, 2- disagree, 1-strongly disagree

Sl.no statements4 3 2 1

1 I would be happy to spend the rest of my career with this organisation

2 I enjoy discussing my organisation with people outside it

3 I feel as if this organisation’s problems are my own

4 I do not think I could become as attached to another organisation as I am to this one

5 I feel as a” part of the family” at my organisation

6 I feel emotionally attached to this organisation

7 This organisation has a personal meaning for me

8 I feel a strong sense of belonging to my organisation

9 It would be hard for me to leave my organisation right now, even if I want to

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10 My life would be disrupted if I decided I want to leave my organisation now

11 I am afraid of what might happen if I quit my job without having another one line up

12 It would be costly for me to leave my organisation right now

13 Right now staying with my organisation is a matter of necessity than desire

14 I feel I have few option to consider leaving this organisation

15 One of the serious consequence of leaving this organisation would be scarcity of available alternatives

16 One of the major reason I continue to work for this organisation is that leaving would require personnel sacrifice, another organisation may not match the overall benefits I have here

17 I think people these days move from organisation to organisation too often

18 I believe that a person must always be loyal to his/her organisation

19 Jumping from organisation to organisation seems to be unethical to me

20 I believe that loyalty is important and therefore I feel strong sense of moral obligation to remain

21 If I got another offer for a better job elsewhere, I would not feel it was right to leave my organisation

22 I was taught to believe in the value of remaining loyal to the organisation

23 Things were better in the days when people stayed in one organisation for most of their careers

24 I think wanting to be a company man or company woman is

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sensible

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