Section B – Group5 A Study on the Organizational Behavior of employees of Infosys Ltd. using Statistical tools Business_Statistics_Project_Report_SectionB_Group5 12DM-035 APURV MEHTA 12DM-114 RAMYA VASUDEVAN 12DM-137 SHREYANSH RAJESH MEHTA 12FN-044 DHIRENDRA PRATAP SINGH 12FN-149 UDYAN GUPTA 12HR-026 SANYA SHARMA 12IT-005 ATUL RAJAN
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Section B – Group5A Study on the Organizational Behavior of employees of Infosys Ltd. using
To conduct a survey on the employees of Infosys Ltd. in a particular age group to understand the internal working environment of the company and develop a relationship between the dependent and the independent variables with the help of statistical analysis.
Dependent variables: Job Satisfaction and Intent to quit
Independent variables:
1. Procedural Justice2. Distributive Justice3. Leader Member Exchange (LMX)4. Trust in Organization5. Conscientiousness6. Organizational Citizenship Behavior – towards Organization7. Organizational Citizenship Behavior – towards Individual
(A detailed description of these variables is given in the Appendix section)
The effect of the independent variables on the dependent variables, ‘Job Satisfaction’ and ‘Intent to Quit’ were studied and analyzed independently.
Statistical tools used for the study:
We have used MS Excel to do the analysis of the data. The following analyses were done on the sample data:
1. Job Satisfaction’ in a company is positively related to factors like Procedural Justice, Distributive Justice, LMX, Trust in Organization, Conscientiousness, OCB-O, OCB-I, Ethical leadership. From our analysis, we found that up to 72% of the variation in ‘Job Satisfaction’ is explained by the parameters Procedural Justice, Distributive Justice, LMX , Trust in Organization , Conscientiousness, OCB-O, OCB-I , Ethical leadership
2. ‘Intention to Quit’ in a company is positively related to factors like Procedural Justice, Distributive Justice, LMX, Trust in Organization, Conscientiousness, OCB-O, OCB-I, Ethical leadership. We also found that up to 50% of the variation in ‘Intent to quit’ is explained by the
3. From hypothesis testing, we have concluded that Conscientiousness and OCB are positively related to Job Satisfaction
4. From hypothesis testing, we conclude that Conscientiousness and OCB are negatively related to Intent to quit
5. Both the factors ‘Compared to most jobs, mine is pretty good one’ and ‘All in all, I am satisfied with my job’ are similar and contribute equally towards ‘Job Satisfaction’.
6. Both the factors ‘It is likely that I will quit my employment with the organization within one year’ and ‘I intent to keep working with this organization for at least next three years’ are different and they together do not contribute towards ‘Intent to Quit’.
IntroductionInfosys Limited was started in 1981 by seven people with US$ 250. Today, it is a global leader in consulting, technology and outsourcing with revenues of US$ 7.075 billion. Many of the world’s most successful organizations rely on Infosys to deliver measurable business value. Infosys provides business consulting, technology, engineering and outsourcing services to help clients in over 30 countries build tomorrow’s enterprise.
Their award-winning Infosys Labs and its breakthrough intellectual property can be leveraged as a co-creation engine to accelerate innovation across the enterprise.
Infosys pioneered the Global Delivery Model (GDM), based on the principle of taking work to the location where the best talent is available, where it makes the best economic sense, with the least amount of acceptable risk. Continued leadership around GDM enables Infosys to drive extraordinary efficiencies and free up clients’ resources for strategic transformation or innovation initiatives.
Infosys takes pride in building strategic long-term client relationships. 99.1% of our revenues come from existing customers.
Infosys gives back to the community through the Infosys Foundation that funds learning and education.
How they do it
Infosys helps companies derive the measurable business value that they have always been looking for from business and IT investments.
We deliver measurable business value in 3 ways:
TransformInfosys can transform the fundamental shape of your business P&L. Regardless of which team you engage with, Infosys has a best-practice process for delivering value. We call it IMPACT – to ensure a clear line of sight from process change to bottom-line impact, ensuring that you receive the business value you were promised.
OptimizeBeyond transformation and innovation, it boils down to execution - delivering on time, on budget and "on value". They can optimize your core operations to drive best-in-class efficiency and help fund the transformation and innovation.
InnovateInfosys can inject a level of product and service innovation into your business to create new revenue opportunities through collaboration and co-creation. They keep abreast of the latest technology and how it applies to your business issues. What you get from them is best-of-breed solutions. The
foundation of their innovation capability is their core lab network – Infosys Labs – and the new thinking that our team of over 600 researchers brings to the table.
Infosys has a global footprint with 68 offices and 70 development centres in US, India, China, Australia, Japan, Middle East, UK, Germany, France, Switzerland, Netherlands, Poland, Canada and many other countries. Infosys and its subsidiaries have 151,151 employees as on June 30, 2012.
The Research Methodology
This research was conducted by taking a survey of the top, middle and lower level employees of Infosys Ltd. to find out the relationship between ‘Job Satisfaction’ (and ‘Intent to Quit’) and the various other parameters like Trust in the organization, Organizational Citizenship Behavior, Ethical Leadership etc.
For the survey, an online questionnaire was prepared in Google Documents, consisting of 9 sections, each section pertaining to one of the independent parameters under consideration. This was then sent to the employees of the company. Out of the many people approached to complete the online survey, we were able to get 26 responses. So the sample for our study consists of the responses of 26 people working in Infosys Ltd.
The questionnaire consisted of more than one question pertaining to the same area, for example, the questions 2.1 to 2.7 were related to ‘Procedural Justice’, 2.8 – 2.11 were related to ‘Distributive Justice’ and so on. So before starting the analysis, the response data had to be formatted by grouping the responses pertaining to each parameter together. The formatting was done as follows:
For each sample, the mean of the responses related to a specific parameter was taken and updated as the representative for that parameter. For example, the mean of the responses to questions 2.1 to 2.7 for each person was taken as a representative value for ‘Procedural Justice’ for that person. The same procedure was then applied to all the parameters to come up with one single value per person for each of the parameters under consideration.
The formatted sample data based on the key parameters like ‘Procedural Justice’, ‘Distributive Justice’, ‘Leader Member Exchange (LMX)’, ‘Trust in Organization’, ‘Conscientiousness’, ‘OCB-O’, ‘OCB-I’, ‘Job Satisfaction’ and ‘Intent to Quit’ is given below:
IBS Center for Management Research presents a case which analyzes the management of human resource in the IT industry with a special emphasis on the factors responsible for the high rate of employee turnover in the industry. The IT industry, being a knowledge-based sector, requires a workforce that is highly competent. Also, the demanding nature of work in the industry requires effective strategies to retain its workforce. With growing demand for Indian IT professionals overseas and with multinational IT companies establishing their offices in India, retention becomes very difficult. To handle the challenge, companies have started using a variety of retention tools such as ESOPs (Employee Stock Ownership Plans) and RSUs (Restricted Stock Units). They have also taken other initiatives like improving the work-life balance of their employees, encouraging learning and development, developing a positive organization culture, etc. to retain their employees. The case examines the retention tools used by Indian IT companies to combat attrition. It ends with the discussion on the challenges the Indian IT industry faces in the future in view of the growing need to retain its talent pool.
Poornima Mohandas & Raghu Krishnan in an article for ‘livemint’ presented a thorough analysis in which they argued what IT companies are looking for beyond salary hike option to stem attrition.
Piar Chand and Hemange Kaul in an research paper which published in the ‘International Journal of Humanities and Applied Sciences (IJHAS) Vol. 1, No. 2 March 2012 ISSN’ studied the workplace spirituality, organizational emotional ownership and job satisfaction as predictors to cope up with job stress. They studied the correlation between workplace spirituality, organizational emotional ownership, job satisfaction and job stress. For which they used a Self-developed tool for Organizational Emotional Ownership, ‘Minnesota Satisfaction Questionnaire’ invented by Weiss, Dawis, England and lofquist in 1967 for Job satisfaction. Self-developed tool was used for Job stress. One hundred Project Managers were selected from the organizations namely Cognizant, Infosys and HCL from different cities Of India namely Pune, Chandigarh and Delhi. They were selected through purposive sampling. The mean age of the sample was 33.9 years which ranges from 25 to 50 years. Out of this sample there were 78 males and 22 females. Out of this 73 were married and 27 were single.
Based on the above research and certain modifications, our objective is to study the effect of the independent variables on Job Satisfaction and Intent to Quit.
Hypothesis testing:
1. Conscientiousness and Organizational Citizenship Behavior (OCB-towards Organization) are related to Job Satisfaction
2. Conscientiousness and Organizational Citizenship Behavior (OCB-towards Organization) are related to Intent to quit
Conscientiousness is the quality of acting according to the dictates of one's conscience. It includes such elements as self-discipline, carefulness, thoroughness, self-organization, deliberation (the
tendency to think carefully before acting), and need for achievement. Conscientious individuals are generally hard working and reliable. When taken to an extreme, they may also be "workaholics", perfectionists, and compulsive in their behavior. People who are low on conscientiousness tend to be more laid back, less goal-oriented, and less driven by success.
Organizational Citizenship Behavior (OCB) is the individual behavior that is discretionary, not directly or explicitly recognized by the formal reward system, and that in the aggregate promotes the effective functioning of the organization. Organ’s definition of OCB includes three critical aspects that are central to this construct. First, OCBs are thought of as discretionary behaviors, which are not part of the job description, and are performed by the employee as a result of personal choice. Second, OCBs go above and beyond that which is an enforceable requirement of the job description. Finally, OCBs contribute positively to overall organizational effectiveness.
We have used the both regression analysis and t-test to test our hypotheses, the analyses and results of which are shared in the next section. We have used ‘MS Excel’ to do our analyses and calculations.
Tools and Analysis
1. Regression analysisIn regression analysis, we attempt to study 2 cases the effect of the independent variables on the dependent variable ‘Job Satisfaction’ the effect of the independent variable on the dependent variable ‘Intent to Quit’
Case1: Study the relationship between ‘Job Satisfaction’ and the other independent parameters
We have considered a level of significance of 90%, alpha = 0.10
Ho: Conscientiousness and Organizational Citizenship Behavior (OCB-towards Organization) are not related to Job Satisfaction
Ha: Conscientiousness and Organizational Citizenship Behavior (OCB-towards Organization) are related to Job Satisfaction
Conscientiousness: p-calculated value = 0.087777
OCB – towards Organization: p-calculated value = 0.044065
Since p-value for both the variables, Conscientiousness and OCB – towards Organization < 0.10, we reject the null hypothesis
As per the regression report, we are able to conclude the following:
1. 72% of the variation in ‘Job Satisfaction’ is explained by the parameters Procedural Justice, Distributive Justice, LMX , Trust in Organization , Conscientiousness, OCB-O, OCB-I , Ethical leadership
2. The standard error of the regression, 0.803750735 which is a small value implies that the regression line is a good fit to the observation of sample points
3. From hypothesis testing, we conclude that Conscientiousness and OCB are positively related to job satisfaction
Case2: Study the relationship between ‘Intent to quit’ and the other independent parameters
We have considered a level of significance of 90%, alpha = 0.10
Ho: Distributive Justice and Ethical Leadership are not related to Intent to quit
Ha: Distributive Justice and Ethical Leadership are related to Intent to quit
Distributive Justice: p-calculated value = 0.007708Ethical Leadership = 0.065802
Since p-value for both the variables < 0.10, we do not have the sufficient evidence to reject the null hypothesis
As per the regression report, we are able to conclude the following:
1. 50% of the variation in ‘Intent to quit’ is explained by the parameters Procedural Justice, Distributive Justice, LMX , Trust in Organization , Conscientiousness, OCB-O, OCB-I , Ethical leadership
2. The standard error of the regression, 0.69 which is a small value implies that the regression line is a good fit to the observation of sample points
3. From hypothesis testing, we conclude that Distributive Justice and Ethical Leadership are negatively related to Intent to Quit
t-test
Case1: Study the parameters related to ‘Job Satisfaction’
The responses to the questions ‘Compared to most jobs, mine is pretty good one’ and ‘All in all, I am satisfied with my job’ in the questionnaire are both related to ‘Job Satisfaction’. So we try to understand the relationship between these two parameters.
Compared to most jobs mine is pretty good one. All in all I am satisfied with my job.
Pearson Correlation 0.824722544Hypothesized Mean Difference 0
Df 25
t Stat 1.224255267
P(T<=t) one-tail 0.116134075
t Critical one-tail 1.708140761
P(T<=t) two-tail 0.23226815
t Critical two-tail 2.059538553
According to t-test analysis
H0: u1 equal to u2
Ha: u1 not equal to u2
(u1 corresponds to the mean of ‘Compared to most jobs, mine is pretty good’ and u2 corresponds to the mean of ‘All in all, I am satisfied with my job’ and we consider alpha as 0.05)
Inference-
1. P-value is greater than alpha (0.05) we do not reject the null hypothesis.2. t-value is less than t- critical thus we do not reject the null hypothesis.
This implies that both the factors are similar and contribute equally towards ‘Job Satisfaction’.
t-test - Case2: Study the parameters related to ‘Intent to Quit’
The responses to the questions ‘It is likely that I will quit my employment with the organisation within one year’ and ‘I intent to keep working with this organization for at least next three years’ in the questionnaire are both related to ‘Intent to Quit’. So we try to understand the relationship between these two parameters.
It is likely that I will quit my employment with the organisation within one year.
I intent to keep working with this organization for at least next three years
8Observations 26 26Pearson Correlation 0.21356Hypothesized Mean Difference 0Df 25
t Stat3.38357
8
P(T<=t) one-tail0.00118
1
t Critical one-tail1.70814
1
P(T<=t) two-tail0.00236
1
t Critical two-tail2.05953
9
According to t-test analysis
H0: u1 equal to u2
Ha: u1 not equal to u2
(u1 corresponds to the mean of ‘It is likely that I will quit my employment with the organisation within one year’ and u2 corresponds to the mean of ‘I intent to keep working with this organization for at least next three years’ and we consider alpha as 0.05)
Inference-
1. P-value is less than alpha (0.05) we reject the null hypothesis.2. t-value is greater than t critical thus we reject the null hypothesis.
This implies that both the factors are different and they together do not contribute towards ‘Intent to Quit’.
From our analysis, we have analytically proved that:
1. ‘Job Satisfaction’ in a company is positively related to factors like Procedural Justice, Distributive Justice, LMX, Trust in Organization, Conscientiousness, OCB-O, OCB-I, Ethical leadership. From our analysis, we found that up to 72% of the variation in ‘Job Satisfaction’ is explained by the parameters Procedural Justice, Distributive Justice, LMX , Trust in Organization , Conscientiousness, OCB-O, OCB-I , Ethical leadership
2. ‘Intention to Quit’ in a company is positively related to factors like Procedural Justice, Distributive Justice, LMX, Trust in Organization, Conscientiousness, OCB-O, OCB-I, Ethical leadership. We also found that up to 50% of the variation in ‘Intent to quit’ is explained by the parameters Procedural Justice, Distributive Justice, LMX , Trust in Organization , Conscientiousness, OCB-O, OCB-I , Ethical leadership.
3. From hypothesis testing, we have concluded that Conscientiousness and OCB are positively related to Job Satisfaction
4. From hypothesis testing, we conclude that Conscientiousness and OCB are negatively related to Intent to quit
5. Both the factors ‘Compared to most jobs, mine is pretty good one’ and ‘All in all, I am satisfied with my job’ are similar and contribute equally towards ‘Job Satisfaction’.
6. Both the factors ‘It is likely that I will quit my employment with the organization within one year’ and ‘I intent to keep working with this organization for at least next three years’ are different and they together do not contribute towards ‘Intent to Quit’.
Recommendations
1. Bring in aspects like Transparency in the Organization’s processes, fairness, Ethical and moral leadership, good working environment between the managers and the employees etc. within the organization, so that the employees get a feeling of belonging in the company. This in turn leads to high Job Satisfaction and Organizational Citizenship Behavior.
2. Provide flexible work schedules adapted to the needs of the individual. Workers will migrate to a company whose benefit packages and schedules help them meet the demands of their lives.
3. Provide career development. For many people, learning new skills and advancing their career is just as important as the money they make. In a study by Linkage, Inc. more than 40 percent of
the respondents said they would consider leaving their present employer for another job with the same benefits if that job provided better career development and greater challenges.
4. Create an early warning detection system. Ask employees to let you know if they hear of people who are thinking about quitting. Advance notice will give you an opportunity to try to prevent the departure.
5. Look for triggers. Focus on individuals going through some form of change such as marriage, pregnancy, divorce, a child's graduation, mergers, or other important events that could influence job satisfaction and/or persuade or force employees to leave the organization prematurely.
6. Identify and weed out poor managers. The relationship with the employee’s front-line manager is the most common reason people leave.
APPENDIX:
Procedural Justice
Procedural justice refers to the idea of fairness in the processes that resolves disputes and allocates resources. One aspect of procedural justice is related to discussions of the administration of justice and legal proceedings. This sense of procedural justice is connected to due process , fundamental justice , procedural fairness ,and natural justice (other Common law jurisdictions), but the idea of procedural justice can also be applied to non-legal contexts in which some process is employed to resolve conflict or divide benefits or burdens. Other aspects of procedural justice can also be found in social psychology and sociology issues and organizational psychology.
Distributive justice
Distributive justice concerns the nature of a socially just allocation of goods in a society. A society in which incidental inequalities in outcome do not arise would be considered a society guided by the principles of distributive justice. The concept includes the available quantities of goods, the process by which goods are to be distributed, and the resulting allocation of the goods to the members of the society.
In the context of organizational justice, distributive justice is conceptualized as fairness associated with outcomes decisions and distribution of resources. The outcomes or resources distributed may be tangible (e.g., pay) as well as intangible (e.g., praise). Perceptions of distributive justice can be fostered when outcomes are perceived to be equally applied.
Leader Member Exchange
Leaders often develop relationships with each member of the group that they lead, and leader–member exchange theory explains how those relationships with various members can develop in unique ways.
The leader-member exchange theory of leadership focuses on the two-way relationship (dyadic relationships) between supervisors and subordinates. These are not the only 2. Also known as LMX,
LMET or Vertical Dyad Linkage Theory, leader–member exchange focuses on increasing organisational success by creating positive relations between the leader and subordinate.
Trust in Organization
The organization’s willingness, based upon its culture and communication behaviors in relationships and transactions, to be appropriately vulnerable based on the belief that another individual, group, or organization is competent, open and honest, concerned, reliable, and identified with common goals, norms, and values.
Conscientiousness
Conscientiousness is the trait of being painstaking and careful, or the quality of acting according to the dictates of one's conscience. It includes such elements as self-discipline, carefulness,thoroughness, self-organization, deliberation (the tendency to think carefully before acting), and need for achievement. It is an aspect of what has traditionally been called character. Conscientious individuals are generally hard working and reliable. When taken to an extreme, they may also be "workaholics", perfectionists, and compulsive in their behavior. People who are low on conscientiousness are not necessarily lazy or immoral, but they tend to be more laid back, less goal-oriented, and less driven by success.
Organizational Citizenship Behavior
OCB as “individual behavior that is discretionary, not directly or explicitly recognized by the formal reward system and that in the aggregate promotes the effective functioning of the organization” . Organ’s definition of OCB includes three critical aspects that are central to this construct. First, OCBs are thought of as discretionary behaviors, which are not part of the job description, and are performed by the employee as a result of personal choice. Second, OCBs go above and beyond that which is an enforceable requirement of the job description. Finally, OCBs contribute positively to overall organizational effectiveness.
Ethical Leadership
Ethical leadership is leadership that is involved in leading in a manner that respects the rights and dignity of others7. “As leaders are by nature in a position of social power, ethical leadership focuses on how leaders use their social power in the decisions they make, actions they engage in and ways they influence others”. Leaders who are ethical demonstrate a level of integrity that is important for stimulating a sense of leader trustworthiness, which is important for followers to accept the vision of the leader7. These are critical and direct components to leading ethically. The character and integrity of the leader provide the basis for personal characteristics that direct a leader’s ethical beliefs, values, and decisions7. Individual values and beliefs impact the ethical decisions of leaders.