MAIN BODY

Employee commitment and productivity 1

CHAPTER 1

INTRODUCTION

In today’s competitive world every organization is facing new challenges regarding

sustained productivity and creating committed workforce. Now a day’s no organization can

perform at peak levels unless each employee is committed to the organizations objectives.

Hence, it is important to understand the concept of commitment and its feasible outcome.

The success of every organisation future strategy depends a great deal on its employee’s

commitment levels. The employee commitment is also known as Employee loyalty. It’s for the

organisation leadership to attract, motivate and retain commited people for future business

objectives. Organisational leadership need to create the understanding that is only an employee’s

total commitment that gets translated into greater productivity and a very high level of quality

service, which is ultimately affecting the bottom line.

A large numbers of studies have been conducted to investigate the concept of

organizational commitment (OC). Still, commitment is the most challenging and researchable

concept in the fields of management, organizational behaviour. There have been several

measures and definitions about OC.

In the past decade, Meyer and Allen’s (1991) developed a three- component model of

OC which has been the dominant framework for OC .This three-component model is based on a

more comprehensive understanding of OC. The three-component model consists of: (a) Affective

commitment (AC) is the emotional attachment to one’s organization.

MAC Ramapuram MHRM Project 2014


(b) Continuance commitment (CC) is the attachment based on the accumulation of valued side

bets (pension, skill transferability, relocation, and self-investment) that co-vary with

organizational membership. (c) Normative commitment (NC) is the attachment that is based

on motivation to conform to social norms regarding attachment.

There are five I’s that determine the commitment of employees

Interesting work

Information

Involvement

Independence

Increased credibility

Personal factors, situational factors and the positional factors are the various factors

affecting the employee commitment. According to personal factors, employees who are highly

conscientious, outgoing (extroverted) and generally have a positive outlook on life (optimistic)

are often more inclined and more committed. According to situational factors work place values,

job characteristics, and organisational support affecting the employee commitment. Finally on

positional factors organisational tenure and hierarchical job level affect the employee

commitment. However, Organisational Commitment has clearly emerged as the most recognised

and researched construct of the employee’s attachment or loyalty to the organisation. A highly

committed person has the feeling that he is working for himself and not somebody else.

Productivity can be defined as the ratio of output to the ratio of input. In actual terms

productivity is a component which directly affects the company’s profits. According to Peter

Ducker” productivity represents the balance between all factors of production that will give the

greatest output at the smallest effort”. Employee productivity is the ratio of output that a labour



produced in accordance with the available inputs. Employee commitment is one of the important

factors affecting the employee productivity.

There are a number of factors affecting employee productivity they are the following:-

Strongly Defined rules and objectives

Motivation (psychological aspects)

Employee engagement

Strategic rotation

Refresher sessions.

Innovating and strong technology with proper resources.

Along with this an ICARE attitude will increase the productivity and increase the

organisation profitability.

I = Integration

C= Collaboration

A = Accountability

R = Responsibility

E = Excellence

Employee productivity is an important element in the process of economic growth.

When the productivity of the industry is increased the rate of economic growth increased

automatically. Increase in productivity in an industry leads to higher production with the most

economic use of the available resources, in other words cost of production is decreased. These

benefits the customers by reducing the prices, the workers by increasing their wages and the

entrepreneurs by increasing profits. Since the people’s income increases, their demand is also



increases. Increase in demand make it possible to start new industrial units generate more

employment. Thus, it is obvious, that higher productivity is instrumental in the economic growth

of any nation.

The employee commitment and employee productivity are linked to each other. The

committed employees will be more productive and thereby it will increase the profitability of the

organisation. Organisational leadership also affecting the commitment and productivity of the

employees.1

KITEX Ltd.is the weaving unit of Anna Group of companies. The company is engaged in

the production of fabrics made of cotton and other blends, grey cloth, bed sheets and lungies.

Through the years the company has carved a niche for itself in the highly competitive industry

with its tradition of world class quality. The company has a well organised production

department and is committed to cent percentage of quality in all the production process. In the

production department KITEX has 383 power looms and 22 automated loom. There are 390

workers in the plant/The annual sales range is in between US $10 million- US $50 million.

KITEX products are marketed through 2000 authorized dealers. At the dawn of the new

millennium KITEX entered into the luggage and baggage industry under the brand name of

ScooBee Day.

The main objective of the present study is “to study the employee commitment and

productivity of employees” in KITEX Ltd, Kizhakkambalam. It measures the commitment and

productivity of each staff to the organisation.

1.1 SIGNIFICANCE OF STUDY

1 Greeshma Maria Jose K, “A study on employee commitment in eastern Ltd, Adimaly”, MHRM project 2012, p.40.



The changing nature of the work place dramatically demands for the highest quality of

products and services. To maintain competition in the present scenario employee commitment is

crucial. The two keys to success in today’s environment of increasing competition and rapid

changes are an absolute passion for, and dedication to, excellence in customer service, effective

and enlighten management of our work force. Without employee commitment there can be no

improvement in any area of business activity.

In many organisations there is a growing commitment gap between the expectations of

the employer and the workers prepared to do. There are a number of reasons for this erosion of

employee commitment; the most one being a failure of management in some way or another. To

succeed in the face of increasing competition, a business needs improved productivity at all

levels. This requires enthusiastic commitment of all employees which can only be achieved

through better management policies. The second key of success is effective customer service, it

cannot be achieved without dedicated and commitment employees. Properly managed employees

can be motivated to achieve excellence in any area of business; they will contribute willingly and

thereby increasing the organisation profitability.

1.2 STATEMENT OF THE PROBLEM

Human resources are the important assets of any organisation and every organisation is

trying to achieve the vital goal i.e. The committed employees. The employee commitment is

also related to the productivity of the employees. The profitability of the organisation is also

depends on the employee commitment and their productivity. So it is necessary for an

organisation to know about the level of its employee’s commitment and their productivity. The



problem of this study is stated as “ A STUDY OF EMPLOYEE COMMITMENT AND

PRODUCTIVITY OF EMPLOYEES” IN KITEX LTD, KIZHAKKAMBALAM.”

1.3 .OBJECTIVES OF THE STUDY

General objective

To study of “employee commitment and productivity of employees “in KITEX LTD,

Kizhakkambalam.

Specific objectives:

To understand the specific factors affecting employee commitment in KITEX LTD.

To understand the level of employee commitment in KITEX LTD.

To understand how employee commitment affecting the productivity of employees in

KITEX LTD.

To offer suggestions and recommendations to improve the management of people in

KITEX LTD.

1.4 SCOPE OF THE STUDY

The scope of the study is limited to KITEX Ltd, Kizhakkambalam. This study makes an

effort to know about the commitment and productivity of employees in the organisation. The

result of the study is finally helps in finding out the level of employee commitment and

productivity of employees. And the result is helpful for the organisation to taking measures to

improve the commitment and productivity of the employees.

1.5 DURATION OF THE STUDY

The entire industrial project spanned over a period of two months from 5.4.2014 to 31.5.2014



1.6 LIMITATIONS OF THE STUDY

There may errors due to the bias of the respondents. However efforts are made to

minimize bias.

The study is limited to time constrains.

Lack of co-operation from the part of the respondents due to their work load.

The outcome of the study is restricted to KITEX Ltd, Kizhakkambalam.

Reliability of survey report.

1.7 CHAPTER SCHEME

The introduction chapter deals with introduction, statement of the problems, scope of the

study, objectives of the study, hypothesis of the study and the limitations of the study

The second chapter deals with the industry profile, where the operation of the company

pertains to.

Third chapter deals with the profile of the company.

Fourth chapter includes the review of literature

The fifth chapter deals with the methodology of the study.

Sixth chapter deals with the analysis of the data and interpretations.

The seventh chapter includes findings

The eight chapter deals with suggestions.

The conclusions are summarized in the final chapter.



CHAPTER 2

INDUSTRY PROFILE

2.1 TEXTILE INDUSTRY

New innovations in clothing productions, manufacture and design come during the

industrial revolution. Thus new wheels, looms, and spinning process changed clothing

manufactures forever. Thus were various stages from a historical perspective. Where the textile

industry evolved from being a domestic small scale industry to the status of super Marcy it

currently holds. The “cotton Stage” was the first stage in the history where textiles were

produced on a domestic basic.

Clothing manufactured during the industrial revolution formed a big part of the exports

made by Great Britain, they accounted for almost 25% of the total exports made that time

doubling in the period between 1701 and 1770. The under of the cotton industry in Great Britain

was Lancashire and the amount of exports from 1701 to 1770 had grown ten times. However

wool was the major export items at this point of time. In the industrial revolution era a list of

effects was made to increase the special of the production through inventions. Such as the flying

shuttle in 1778. The flyers and bobbin system and the roller spinning machine by John Wipatt

and Leuis Poal in 1738.

During this period cloth was made from materials including wool, flan and cotton.

The materials depended upon the area costume the cloth was being produced, and time they were

being males. In the latter half of the medieval period, in the northern part of Europe, cotton



comes to the Searched as important fibers. During the later phase of the 16th century cotton was

grown in the warmer climes of America and Asia.

During the industrial revolution new machine such as spinning wheels and handlooms

came in to the picture, making clothing materials quickly became an organized industry as

compared to the domesticated activity, it had been associated with before.

A number of innovations led to the industrialization of the textile industry in the Great

Britain. In the initial phases, textile mill were locate in an around the rivers since they were

powered by water wheels. After from steam engine was invented the dependence on the rivers

ceased to a great extent. In the later phase of the 20th century, shuttles that were used in the

textile industry were developed and become faster and thus more efficient. This led to the

replacement of the older shuttles with the new ones.

Today, modern technique, electronics and innovations have led to a competitive low

pedicel textile industry effacing almost any type of cloth or design to a person could deserve with

its low cost labour and China has come to dominate the global textile industry.

2.1.2 HISTROY OF TEXTILE INDUSTRY

India has been well known for her textile goods since very ancient times. The traditional

textile industry of India was virtually decayed during the colonial regime. However, the modern

textile industry made its real beginning in Bombay in 1850s. The first cotton textile mill of

Bombay was established in 1854 by a Parsi cotton merchant then engaged in overseas and

internal trade. Indeed the vast majority of the early mills were the handwork of Parsi merchant

engaged in yarn and cloth trade at home and Chinese and African markets.



The first cotton mill in Ahmadabad, which was eventually to emerge as a rival center to

Bombay, was established in 1861. The spread of the textile industry to Ahmadabad was largely

due to the Guajarati trading class. The cotton textile industry made rapid progress in the second

half of the 19th century and by the end of the century there were178 cotton textile mills, but

during the year 1900 cotton textile industry was in bad state due to the great famine and a

number of mills of Bombay and Ahmadabad were to be closed down for long periods.

2.1.2.1 Global Scenario

According to statistics, the global textile market poseurs a worth of more than $400

billion presently in a more globalize environments the industry has faced high competition as

well as opportunities. It is predicted that global textile production will grow by 25% between

2002 and 2010. Asian region will largely contribute in this regard high production of wool,

cotton and silk over the world has boosted the industry in the recent years.

Japan, India, Hongkong and China became reaching producers due to their cheap labour

supply. Which is an important factor for the industry? The World Trade Organization (WTO) has

taken to many steps for uplifting these factors in the year 1995, WTO had renewed its MFA and

adopted Agreement o Textile and Clothing (ATC) which states that all quotes on textile and

clothing will be removed among WTO member counters.

However, the level of export in textile from developing countries in increasing even if in

the presence of high tariff and quantitative restrictions by economically developments countries.

Moreover, the route of multifunctional textiles, eco-textiles and customized textiles are

considered as the future of the textiles industry.



2.1.2.2 Indian Scenario

Textile industry in India is the second largest employments generator after agriculture. It

holds significant status in India as it provides one of the most fundamental necessities of the

people. Textile industry was one of the earliest industries to come to existence in India and it

accounts for more than 30% of the total exports. Infuse the Indian textile industry is the second

largest in the world Seward only to China.

Textile industry is unique in forms that it is an independent industry, from the basic it

requirements of raw materials to the final products, art the huge value addition to every stage of

processing. Textile industry in India has vast potential for creation of employment opportunity in

the agricultural, industrial, organized and decentralized sector for rural and urban areas,

particularly for women and disadvantaged. Indian textile industry is particulate the following

segments. Really made garments, cotton textile including handlooms, manmade textile, woolen

textile, handy crafts, coir and jute.

Till the year 1785, development of textile before in India look place in terms of general

policies in 1985, for the first the importance of the textile sector was organized and a repeated

policy statement was announced with regard to development of textile sector. In the year 2000,

National Textile policy was announced. Its main objective was to provide cloth of acceptable

quality at reasonable price for the vast majority of century, to increasing contribute to the

provisions of sustainable employment and the economic growth of the nation and to compete

with confidence for as increasing share at the global material. The policy also aimed at achieving

the aged of textile and exports of US $50 billion by 2010 of which the share of garments will be

US $25 billion.



2.1.3 Textile industry in India

Textile industry is the largest of the modern India. India holds the second rank in

cloth. The important of textile industry lies in the fact that is provided one of the necessary of

life, i.e. clothing. The first cotton mill was setup in Calcutta in 1818. However, the industry made

real beginning in 1854 where cotton mill was setup in Mumbai. At present textile industry in

India makes an enormous & multi-directional contribution to the domestic economy. The

industry accounts for nearly accounts for nearly 20% of the total national industrial production

and provides employment to over 35 contributions to the domestic economy. The industry

accounts for nearly 20% of the total national industrial production and provides employment to

over 35 million people. It also account for more than 30% of exports, making it India’s largest

net foreign exchange industry. At present the contribution of this industry to gross import bill of

the country.

In India, cotton is the dominant fibre and it accounts for more than 65% of the

total fibre consumption in the textile sector. The area under cotton in India is the largest &

constitute nearly 1/4th industry has assumed importance in the recent year because of its

commendable, to the export effort.

Textile industry is composed of 4 sectors.

Mill sector

Garnet sector

Power sector

Handloom sector



Each of these sectors employee’s lack of workers contribution significantly to the

national economy. The greatest sector along employees about 3.6 million workers. The latter two

are jointly considered under the heading decentralized sector.

2.1.3.1 Importance of Indian textile industry.

Textile accounts for 20% of India’s industrial production & around 30% of its export earnings.

India account for 20% of world’s total cotton crop production & records largest producer of

skills. It is the second largest employer after the agriculture sector in both rural & urban areas.

India has a large pool of skilled low cost textile workers, experienced in technology skills.

India’s cotton textile has a high export potential.

2.1.3.2 Strength of Indian Textile Industry

India has rich resource of raw materials of textiles industry. It is one of the largest people

of cotton in the world and is also rich in recourse of fibers like polyester, silk, visor etc.

India is rich in highly trained manpower. The country has a huge advantage due to lower

wage rates. Became lower rates the manufacturing cost in textiles automatically comes down to

very reasonable rates. India is highly competitive in spinning sectors and has presence in almost

all process of the value China.

Indian garment industry in very diverse in size, manufacturing facility, types of appeared

product, quality of output, cost, requirements for fabrics etc. it comprises suppliers of readymade

garments for domestic or export markets.



2.1.3.3 Weakness of Indian Textile Industry

Indian textile industry is highly fragmented in the industry structure and is led by small

companies.

The reservation of production of every small companies across the country led substantial

fragmentation that distended the competitiveness of industry. Smaller companies do not have the

fiscal resources to enhance technology or investment in the high and engineering of process,

hence they lose in the productivity.

Indian labour laws are relatively unfavourable to the traders and there is an urgent need for

labour reforms in India

India seriously lacks in trade part number ship which leads to restricted access to the other major

markets.

2.1.4 Outlook for Indian Textile Industry

The outlook for Indian textile industry in India is very optimistic. It is expected

that Indian textile industry would continue to grow at an impressive rates. Textile industry is

being modernized by an exclusive scheme, which has set aside and 5 billion for investments in

improvisation of machinery. India also grab opportunities in the export market the textile

industry is anticipated to generate 12 million new jobs in various sectors.

2.1.5 Current Position of Indian Textile Industry

Indian textile industry is one of the leading in the world. Earlier it was estimated

to be around US $ 52 billion and has reached around US $ 115 billion in year 2012. The textile



export of the country was around US $ 19.14 billion in 2006-’07, which saw a stiff rise to reach

US $ 22.13 in 2007-’08. The share o4f export is also expected to increase from 4% to 7% within

2012.

Textile constitutes the single largest in India. The segment of the industry during

the year 2000-’01 has been positive. The production of cotton declined from 1.56 lakhs sales in

1999-2000 to 1.40 lakhs sales during 2000-’01.

Production of manmade fiber increased from 8.35 million kg in 1999-2000 to 9.01

million kg during the year 2000-01 registering a growth of 8.26%. The production of span yarn

increased to 31.60 million kg during 2000-01 from 30.46 million kg during 1999-2000

increasing from 894 million kg to 920 million kg.

The production of fabric registered a growth of 2.7% during the year 1999-2000

increasing from 39,208 million sq.mtrs. the production of mill sector declined by 2.6% while

production of handloom, power loom sector increased from Rs.4,55,048 million to 5,52,424

million, registering a growth of 21%.

Growth in the textile industry in the year 2003-2004 was Rs.1609 billion and during

2004-2005 production of fabrics touched a peak of 45,378 million sq.mtrs. in the year 2005-2006

up to November, production of fabrics registered a further growth of 9% over the corresponding

period of the previous year.

2.1.6 India’s Major Competitors in the World

Although the textile industry contributes 9% of GDP and 35% of foreign exchange

earnings, India’s share in global exports is only 35 compared to China’s 13.75%. Expressed in



US Dollars India’s export value $10 billion, in sharp contrast to China’s $77 billion. And while

India is still concerned with its “fine tuning” policy. China seems to have its sights on a more

strategic dimension.

In addition to China other developing countries are emerging as serious competitive

threats to India. Looking at exports share, Korea (6%) and Taiwan (5.5%) are ahead of India,

while Turkey (2%) has already caught up and others like Thailand (2.3%) and Indonesia (2%)

are not much further behind. The reasons for this development is the fact that India these

countries in investment levels, technology, quality and logistics.

Over the years, the industry has served to bring money into the country to fuel the

development of other industries and in this sense, the country will continue to benefit.

Significantly by virtue of producing and manufacturing clothing and textiles. There are several

areas where China enjoys a distinct advantage over India in a manufacturing type industry such

as textiles. Perhaps, the most noticeable advantage is the difference in Foreign Direct Investment

(FDI), especially by Chinese nationals living abroad. In fact, China is now the largest recipient of

FDI cash inflows, ahead of the United States. Furthermore, China has undergone significant

trade reform in recent years, especially in opening its market to foreign competitors and

privatizing large government agencies. This compares to the relative stagnation of out sided

policies that better describes India’s approach. And finally, it simply much more efficient and

cheaper for goods to reach the US from the port of Hong Kong and other China ports, versus

from India. However, India enjoys a similar comparative advantage for serving demand in the

European Union.

2.1.7 Government Regulations



Government regulations like the obligations to produced controlled cloth are against the interests

of the country. During the last two decades the excessive regulations exercised by the

government on the mill sector has promoted inefficiency in both production and management.

This has also resulted in a colossal waste of raw materials and productive facilities.

2.1.8 Textile Industry in Kerala

The first cotton textile mill was established in 1883 in Kallai near Kozhikode by P S

Santhapachettiyar and M Gupthan Namboothiripad known as Malabar spinning and weaving

mill. The commercial production was started in 1887. Later in 1976 the mill was taken over by

Government of Kerala and handled over to Kerala State Textiles Corporation. The second mill

presently called Parvathi Mills Ltd was started in 1884 by James Durragan, an English man using

19 acres of land donated by the Maharaja of Travancore. In 1888, the mill was sold to another

British industrialist named AT VIN. In 1932 the management was taken over by the management

was taken over by Kerala Textiles Corporation. In April 1974, the mill was nationalized under

sick textiles undertaking (nationalization) act and was made a unit of NTC Delhi. Sitharam

Textiles Ltd, another oldest mill was established in 1903 as a private Ltd Company. Balram

Iyyer started it. Later due to mismanagement and labour trouble, company was liquidated in

1954.

The factory was gutted down due to fire in 1959 and spinning production was completely

stopped. The Government of Kerala purchased this unit as a result of liquidation and public

auction in 1972, with the modest start of these mills, the number of cotton textile mill rose to 3%.

The Government of Kerala has announced in state assembly on March 29, 1994, its willingness

to start 5 more spinning mills, one each of Kasargode, Kozhikode, Thrissur, Kottayam and



Malappuram along with the commissioning of corporative spinning mill at Kareelakulangara at

Allepey with a spindle capacity of 6000 spindles.

The cotton textile industries are concentrated in district of Thrissur and Palakkadu

followed by Ernakulum and Kannur. These four districts of together account for nearly 3/4th of

the spinning mill in Kerala. The numbers of existing composite mills are quite low i.e., only four

in number, its growth during the last years is nil. Due to the unprofitable nature of composite

mill, Malabar spinning and weaving mill discontinued its weaving operation and concentrated on

spinning only. Calicut modern spinning mill once turned sick is now taken over by a financially

sound party and found earnings before the last decade. There are 7 cotton textiles mills in

Thrissur including one composite mill.

There are 16 private mill in Kerala of which 14 are spinning mills and the rest 2 are

composite mills. The national textile corporation has got under it, 4 spinning mills and 1

composite mill. The corporate sector owns only 2 spinning mills. In Kerala the Thrissur

corporative spinning mills with a installed spindle capacity of 12000 spindles is the smallest mill

followed by Kathayee Cotton Mills Ltd with 14,860 spindles. Another welcome feature was that

a 100% export oriented unit, Past Pin India Ltd.

2.2 BAG INDUSTRY

Bag industry takes a very important place in this century. Manufacturing sector is

the largest sector after agriculture and its importance in Indian importance in Indian economy is

recognized for its contribution to industrial production. Bag makers are the leading manufactures

in the economy. I India different type of bag manufactures are existed. The bag industry includes



hand bags, brief cases, wallets, purses, travel cases, school bags, luggage bags etc.. The fabrics

used are nylon, plastic, denim, leather, polyester etc.

These are a lot of school and college bag manufactures in the market. They offer

wide range of bags and in exclusive designs quality products. The domestic market acts as the

back bone of this manufacturing sector.

These industries have more labours and less capital for production in India where

large number of people are employment opportunities. The advantages of these industries are

they have much greater flexibility in their operations. They can be easily adapted to individual

tastes and changing fashion of the century.

2.2.1 Leather Bag Industry

It concerns all type of leather bags used by men and women alike, it includes different

kinds of bags. These bags are available in different designs and styles to suit the purpose they

serve. The leather used to manufacture leather bags includes sheep stain, pig stain, crocodile

stain and synthetic leather.

2.2.2 School Bag Industry

Bag industry takes a very important place in this century. Manufacturing sector is

the largest sector after agriculture and its importance in Indian importance in Indian economy is

recognized for its contribution to industrial production. Bag makers are the leading manufactures

in the economy. I India different type of bag manufactures are existed. The bag industry includes

hand bags, brief cases, wallets, purses, travel cases, school bags, luggage bags etc..



School bags are one of the most important accessories that are used on regular

basis. Designer school bags are designed and created with all possible material known to man

using various processes to get wide range of styling. School bags are shaped by the way they are

cut and sawn but usually have some stiffness and practical frames hold their shape.

2.2.3 School Bag Industry in India

Since independence Indian Government has focused a lot of energy in increasing

the literacy in India. School bags being a seasonal product are mainly sold at the beginning of

each academic year with increasing competition in the industry. The different manufactures are

trying to find their position in the market. The areas of differentiation between the vendors are:

Raw Materials

Price

Style

Quality

Durability

Economic Design and Innovation

Most of the vendors sell the bags through retail outlets like foot wear’s stores, general

stores and textile shops etc. most manufactures advertise and market their product on the web.

TV advertisement is the most common media currently used by/ manufactures by point purchase

crept applied in retail outlets.

2.2.4 Major School Bag Manufactures in India

Bharath Packers (New Delhi)



Uniplus (China)

Imprez (Mumbai)

Balaji (Bangalore)

Brandz (New Delhi)

Noor (Tamil Nadu)

Anna Group (Kerala)

Lunar Bags (Mysore)

2.2.5 School Bag Industry in Kerala

School bag industry is dominated by the unorganized sector. Except for few

national brands like Duck Back and Bata, most of the players have seasonal nature. The demand

for products arises during the school opening. Even though school bags are mainly dominated by

the local manufactures, branded school bags are available. One of the well known names among

the branded school bag is the branded Scoobee day. School bag industry faces a great threat from

China. Chinese bags are less costly than our local bags. However the branded companies come

up with providing advertisement in television. The school bag industry mainly focuses on the

kids and pre-primary segments. These groups are more addicted to comic characters and attract

the attention of the kids. The branded companies maintaining section is so vigilant to know the

plus of the market they advertise through the catchy stories of their characters and attract the

attention of these fans. So each branded companies complete off to capture the attention kids and

youngsters.



CHAPTER 3

COMPANY PROFILE

KITEX Limited is a prominent prodigy in the field of textile industry began its spectacular

display in 1975 at Kizhakkambalam, Aluva, Ernakulum. This prestigious company is the one of

the 6 th brand divisions of Anna group. Anna group of companies is a celebrity among the

industrial giants in our country.

The company was established to set up an efficient industrial estate to provide technical,

industrial, financial and marketing facilities to power loom owners and to create job

opportunities to power loom owners and to create job opportunities to educate unemployed. In

the 2000 the company is entered into the bag industry. In the market survey conducted in 2007 of

consumable products named ”Top 20 products”in Kerala, KITEX got 11th rank .

3.1 HISTROY OF THE COMPANY

More than three decades ago in 1968, when Mr M.C.Jacob founded the Anna Aluminium

Company, he made a break with the past. Belonging to the affluent family of a plantation owner,

he ventured into the risk world of manufacturing industry and hoped for the best, while working

hard to make his maiden venture to a greatest success. Today the group is involved in

manufacturing of Aluminium sheets, utensils, bags, garments etc.



ANNA-KITEX group is the one of the leading industrial group in the state of Kerala,

employing more than 125000 personnel in the past 40 years. The group is engaged in the

manufacturing of different products like garments, school bags textiles, utensils, brands spices

and curry powders, which is marked under the brands of kit ANNA-KITEX, scoobee day, Anna

Aluminium, chackson, Saras. The Anna-KITEX group is the pionner in the fashion industry.

3.2 ANNA GROUP OF COMPANIES

Anna-KITEX group is the one of the leading industrial group in the state of Kerala,

employing more than 125000 personnel in the past 40 years. The group is engaged in the

manufacturing of different products like garments, school bags textiles, utensils, brands spices

and curry powders2.

The major divisions of Anna group of companies are:-

Anna Aluminium

Sara Spices

KITEX Garments

2 http://.www.annaluminium.com,Anna group of companies,10-4-2014,7:22am



KITEX Limited

3.2.1 ANNA ALUMINIUM

It is established in the year 1968 at kizhakkambalam. Anna Aluminium is a one of the

flagship company of Anna group. It engaged in the manufacturing and the marketing of vessels

and utensils as per ISI standards. The company manufacture vessels only using 99.5% pure

Aluminium sheets. The brand ANNA has become a household name in Kerala due to its high

standard of quality and workmanship.

3.2.2 SARA SPICES

Sara Spices is the condiment producing unit of the Anna group. It is involved in the production

and exporting of curry powders. In the past two decades sacra Spices and curry powders are

known for its high standard of quality and hygiene.

3.2.3 KITEX GARMENTS

It is the garment company of Anna group. It is flexible manufacturing system which

makes KITEX extremely capable of adapting vigorously to the changing fashion market. Equally

competent to execute garment making tailor made to customer specification as well as

standardized production.

3.2.4 KITEX LIMITED



ANNA Group’s weaving unit, KITEX LIMITED was established in 1975. The

company is engaged in the production of fabrics made of cotton and other blends, grey cloth, bed

sheets and lungies. Through the years the company has carved a niche for itself in the highly

competitive industry with its tradition of world class quality. 3

KITEX white gives you an array of white dhotis single as well as double. It becomes with

streaks of colours and gold to add to the look to your dhotis. We also have beautiful and wide

range of bed sheets under the label of Sweet Dreams.

The company has a well organised production department and is committed to cent

percentage of quality in all the production process. In the production department KITEX has 383

power looms and 22 automated loom. There are 390 workers in the plant/The annual sales range

is in between US $10 million- US $50 million.

KITEX follows a line organizational structure and their span of management is narrow,

due to this they have the advantage like reinforcing authority relationship by emphasis of status

given, preventing cross communication etc. KITEX products are marketed through 2000

authorized dealers. At the dawn of the new millennium Kite entered into the luggage and

baggage industry under the brand name of ScooBee Day.

3.3 LOCATION OF THE COMPAY

3 http://www.KITEXlifestyle.com,10-4-2014,7:47am



The company is located at Kizhakkambalam in Ernakulum district, Kerala. The nearest

municipality is Alva, the industrial capital of Kerala. The location is connected to other places

only through road.

3.4 MISSION

KITEX Limited is commited to manufacture and deliver fabrics and the processed fabrics

as per the customer specification efficiently in a professional and environment friendly manner

on time and at the right cost with most customer satisfaction, to become a world class

organization through continual improvement.

3.5 VISION

A world class manufacturing company focusing on all round business excellence through

a total quality management system with committed leadership, effective teamwork, delighted

customers and satisfied employees in an environment friendly organization.



FIG:3.5

3.6POLICIES OF KITEX

The policies of KITEX Limited are the following:-

Consumer satisfaction

Social obligation

Quality and standard products for domestic customers

Profit maximization and consistency in the profitability level

Optimum utilisation of men, machine and material

Employee growth and satisfied work force

Consistent with diversified growth

Optimum inventory control


VISION

World Class Manufacturer

LEADERSHIP & TEAM WORK

CUSTOMER

POLICY & STRATEGY

QUALITY PROCESS & PEOPLE


Extensive marketing in Indian markets.

Autonomy in organisational hierarchy

Production through environment friendly and safer methods.

Effective management practices and cost control system.

3.7 ISO CERTIFICATION

KITEX got ISO 9001-2008 certification on February 2007, they are commited to

manufacture and deliver the quality fabrics. KITEX limited is the leading manufacture with ISO

9001-2008 certification in south India of all variety of greige fabrics, yar dyed fabrics, linen,

cotton Lycia, polyester etc.

3.8 LEGEAL FRAME WORK OF THE COMPANY

Legal frame work of the company means the rules and regulations which governs the

company. To be more precise it means that the rules and regulations that each and every

individual employee or employer of an organization should perform standing order has manner

in which every member should perform. It is also a detailed report on the right of each individual

in the organisation and the employer cannot dismiss a particular employee in the organisation

without following certain procedures and they act within the legal frame work of the

organisation. It contains details regarding how an employee should perform in an organisation or

details of how an employee must behave in an organisation.

3.9 VITAL STATISTICS



Name : KITEX LIMITED

Address : Kizhakkambalam, Aluva, Ernakulum.

Registered Office/factory : Kizhakkambalam.

Brand Name : KITEX

Nature of incorporation : public limited company

Nature of the business : manufacturing of cotton textile

Nature of product : consumer product, industrial product

Chairman & MD : Mr. Boby M. Jacob

Director : Mr. Boby M. Jacob, K. C Pillai, A.K Mathew

Banker : federal bank, SBI, Indian Bank, Axis Bank

Auditor : Varma & Varma

Total capital employed : 4 crore

Salary turnover : 200 crore

Employment potential : 2000

Number of machines : 564

3.10MARKETS

Major domestic markets are the following



Kerala

Tamil Nadu

Major export markets are the following

North America

South America

Western Europe

Eastern Europe

Eastern Asia

Middle East

3.11 PRODUCT PROFILE

3.11.1 KITEX LUNGIES:-

Table 3.11.1

Executive 130cm ×200cm 175 Rs

Medium 127cm×200cm 138 Rs

Medium super 127cm×200cm 150 Rs

Standard 127cm×192cm 105 Rs

Supreme 127cm×200cm 150 Rs

Economy 127cm×192cm 126 Rs

3.11.2 KITEX BED SHEET



Table 3.11.2

Sweet dreams 50 128cm×225cm 177 Rs

Sweet dreams 60 152cm×225cm 199 Rs

Sweet dreams double sheet. 225cm×175cm 304 Rs

Duo 1 sd 60 bed sheet+2 pillow covers 152cm×225cm 330 Rs

Solitude 1 double sheet 152cm×225cm 186 Rs

Sweet dreams king size 250cm×225cm 408 Rs

Duplex 1 solitude bed sheet+ 2 pillow

covers152cm×225cm 306 Rs

Soft dreams king size+2 pillow covers 225cm×250cm 575 Rs

Sweet dreams DS + 2 pillow covers 225cm×175cm 435 Rs

3.11.3 KITEX DHOTHIES

Table 3.11.3



Ready wear 128cm×200cm 120 Rs

Smart line single 120cm×200cm 135 Rs

Smart line gold single 127cm×200cm 150 Rs

Smart double 127cm×385cm 250 Rs

Smart plus double dhothi white broad kara 127cm×835cm 245 Rs

Smart ivory plus XL 127cm×400cm 260 Rs

Smart premium RX 127cm×385cm 310 Rs

3.11.4 SCOOBEE DAY PRODUCTS

Table 3.11.4

NAME SIZE MRP

Gipsy Large

Medium

395

340

Challenge Large

Medium

499

470

Promise Large

Medium

Small

330

315

285

Liberty Large

Medium

Small

299

285

265



Stylo Large

Medium

Small

315

300

285

Twinkle 200

Delight Large

Medium

Small

315

300

285

Hip top Large

Medium

Small

310

290

250

Hero plus Large

Medium

Small

310

290

250

3.12 COMPETITORS

The main competitors of KITEX lungies, dhothies and bed sheets are the following:-

MCR

Ram raj

Bombay dying

KKB

Angel

Jansons



The main competitors of Scoobee Day bags are the following:-

Puma

Candy man

Diesel

Dooby dooby

Reebok

3.13 ORGANISATIONAL STRUCTURE


Chairman & MD

Vice President


Fig: 3.13


Manager Administration

Manager HRSupervisor Assistant

InspectorAssistant Officer

Executive

Manager Manager executive

Executive Worker


3.14 DEPARTMENTS

The major departments in KITEX Limited are:-

Marketing Department

Production department

Finance department

Quality control Department

Store Department

Purchase Department

Human Resource Department

3.14.1Marketing Department

The marketing department of KITEX is manager by efficient and dynamic marketing

managers. Marketing managers reports to the general manager and the managing director.

Marketing department is divided into three sections such as griege fabrics, finished fabrics/bags,

advertising and sales promotion. Under each sections assistant manager, marketing executives,

sales man are to assist them.

3.14.2 Production Department

Production is the process in which raw materials and other input are converted into the

finished products. The cost of production system is its conversion system where in workers,

materials and machineries are used to convert into products and services. The process of

conversion is the heart of production function and is present in the entire organization.



3.14.3Finance Department

The finance department is headed by GM having sufficient industry experience in the field

of accounting, taxation, company law and finance management.

3.14.4 Quality control Department

The company has got ISO certification. The company had different equipment and

mechanism to ensure quality at different stages of production at minimum cost.

3.14.5 Store Department

The manager heads the store department. The store manager is reports to the store

manager, and the store manager is assisted by four persons two in general shifts and one each in

other two shifts.

3.14.6 Purchase Department

The firm has a centralized structure to the purchase department. It is headed by purchase

manager assisted by two purchase officer and purchase assistants.

3.14.7 Human resource Department

The Human Resource department in KITEX is headed by Mr. Joshi Paul who is the HR

manager of the company. The HR manager performs administrative roles, operational roles and

strategic roles. The department has other office assistant also. The HR manager coordinates all

the policies and programmes of Human resource department. In the circle level GM or DGM are

in charge of HRD section.



HR Department chart

Fig: 3.14.7

The Activities normally associated with HR department are:-

Human Resource Planning

Recruitment

Interview and selection

Probationary period

Training and development

Performance appraisal

Employee remuneration

Wage and salary


HR/Administrative manager

Assistant manager

Front office Assistant

Back office Assistant


Incentives

Employee welfare measures

Statutory welfare measures

Voluntary welfare measures

Hostel

Security department

Trade unionism

Industrial Relation

Promotion

Transfer

Separation

3.15 FUTURE VISIONS

To reach excellent quality in the following years.

To keep in pace with modern technologies and concept.

To organise supply of materials at minimum cost without any compromise in quality.

A world class manufacturing company focusing on all round business excellence through

Total Quality Management (TQM) system with commited leadership, effective team

work delighted customers and satisfied employees in an organisation.

3.16 CORPORATE SOCIAL RESPONSIBILITY (CSR)

KITEX places strong emphasis on good corporate social responsibility (CSR) to

continue our commitment to integrating sustainable practices throughout all our business.

Our focuses is to create strong relationship with the community and believe that we have a



responsibility to make the world a better place to live in. We are commited to minimizing

and mitigating the environmental impact of our operations and improve the quality of life.

We also believe in the positive impact of a safe and naturing work environment and strive to

maintain a work culture that allows personal and professional growth of each employee

Activities

Free bags for Anganavadi

Pension for the elderly

Medical assistance

Educational assistance

Institutional assistance



CHAPTER 4

REVIEW OF LITERATURE

One of the indispensable parts of the research is reviewing the literature. The review of

related literature is a sort of formal training, which enables the researcher to understand the

objectives and the corresponding hypotheses of the study. It acquaints the researcher with the

current knowledge and serves as a pole star in delimiting and defining the problem. The most

important reason for reviewing the literature is to know about the recommendations of the

previous researchers for further researches, which they have listed in their studies. This step

helps to eliminate the duplication of what has been done and provides useful hypothesis and

helpful suggestions for significant investigation. Essentially, review of related literature

economizes time and energy of the researcher. Thus, the review of related literature is an

essential aspect of research problem as it is a step of scientific method; it forms the foundation

upon which all the future work is to be built. If we fail to acquire this formation of knowledge

provided by the review of literature our work is likely to be shallow.

In the present research I collected the information about the relevant research studies

done in the field of employee commitment and employee productivity .This review of literature

provided an insight into various dimensions of the problem .The studies shown that there is a

linkage between employee commitment and employee productivity in an organisation. The

review of literature has been classified under the following sections. First section deals with the



research studies related to employee commitment; the second section involves the research

studies related to employee productivity.

4.1 THEORETICAL FRAME WORK OF EMPLOYEE COMMITMENT

No organisation in today’s competitive world can perform at peak levels unless each

employee is committed to the organisation’s objective and worked as an effective member. It is

no longer good enough to have employees who come to work faithfully every day and do their

jobs interdependently. Employees now have to think like entrepreneurs while working in teams,

and have to prove their worth. However they also want to be part of a successful organization

which provides a good income and the opportunity for the development and secure employment.

In the past the organisations secured the loyalty of their employees by guaranteed job

security. However many organizations have to respond to competitive pressure by downsizing,

restructuring and transformation, and thus created a less secure organizational climate .A

growing number of employees therefore feels that they were the victims of broken promises.

One of the challenges facing modern organizations involves maintaining employee commitment

in the current business environment. Employee commitment is important to researchers and

organisations because of the desire to retain the workforce. An individual becomes bound by his

actions to beliefs that sustain his activities and his own involvement.” Three features of

behaviour are important in binding individual to their acts: the visibility of the acts, the extent to

which the outcomes are irrevocable, and the degree to which the person undertakes the action

voluntarily.



4.1.1. DEFINITION OF COMMITMENT

Commitment refers to the act of binding oneself with the (intellectually or emotionally)

to a course of action. Committed employees give a big contribution to organizations because

they performed behave on achieving organizations' goals. Furthermore, workers who are

committed to their organization are happy to be members of it, believe in and feel good about the

organization and what it stands for, and intend to do what is good for the organization(George

and Jones, 1996, p.85).

Organizational commitment refers to the psychological attachment of workers to

their workplaces (Allen & Meyer, 1990; O’Reiily & Chatman, 1986)4. Commitment to

organizations is positively related to such desirable outcomes as job satisfaction (Bateman&

Stasser, 1984; Mowday, Porter, & Steers, 1982), motivation (Mowday, Steers,&Porter,1979),

and attendance (Mathieu & Zajac, 1990; Steers & Rhodes, 1978) and negatively related to such

outcomes as absenteeism and turnover (Clegg, 1983; Cotton & Tuttle,1986). Also, Horton stated

that stronger commitment could result in less turnover and absenteeism, thus increasing an

organization’s productivity (Schuler & Jackson, 1996, p.302). However, the relationship between

organizational commitment and job performance is more tenuous (Becker, Billings, Eveleth, &

Gilbert, 1996). For instance, Mathieu and Zajac’s (1990) Meta analysis showed that the

confidence interval around the mean correlation between organizational commitment and

performance included zero. Benkhoff says the main reason why commitment has been one of the

most popular research subjects in industrial psychology and organizational behavior over the past

30 years is its impact on performance ( 1997, p.701).

4 http://www.mbabrief.com,what is employee commitment,11-4-2014,19:40


http://www.mbabrief.com,what


As defined by Mowday, Steers ad Porter (1982), commitment consists of three

components: identification with the goals and value of the organisation, desire to belong to the

organisation and a willingness to display effort on behalf of the organisation. The most

thoroughly investigated approach to organisational commitment is the perspective advanced by

Mowday and his colleagues which emphasises the employees’ affective bond with the

organisation. In other words, this is an attitude about employees to their organisation and is an

ongoing process through which organisational participants express their concern for the

organisation and its continued success and well-being.

According to Salanick (1977), “Commitment is state of being in which an

individual becomes bound by his actions to beliefs that sustain his activities and his own

involvement.”Three features of behaviour are important in binding individual to their acts: the

visibility of the acts, the extent to which the outcomes are irrevocable, and the degree to which

the person undertakes the action voluntarily.

Guest (1987) has suggested that HRM policies are designed to maximise

organisational integration, employee commitment, flexibility and quality of work. Organisational

commitment is the relative strength of the individual’s identification with, and involvement in, a

particular organisation. Pierce and Dunham (1987) state that as with job involvement, the

research evidence demonstrates negative relationship between organisational commitment and

both absenteeism and turnover.

Mowday (1974) believes that organisational commitment is probably a better

predictor because it is a more global and enduring response to the organisation as a whole than is



job satisfaction. An employee may be dissatisfied with his or her particular job and consider it a

temporary condition, yet not be dissatisfied with the organisation as a whole.

Sheldon (1971) suggests that organisational commitment is an attitude or

orientation toward the organisation which links or attaches the identity of the person to the

organisation. Robins (1974) also defines organisational commitment as an individual’s

orientation towards the organisation in terms of loyalty, identification and involvement.

Allen and Meyer (1990) proposed three component model of organisational

commitment, viz., emotional belongingness to their organisation (Affective Commitment), the

cost associated with living the organisation (Continuance Commitment) and the feeling of

obligation to remain with the employer (Normative Commitment).

In recent times, with employees switching over jobs so frequently and with such as ease

at every possible opportunity for gaining personal benefits, a major question that the recruitment

personnel in various organisations face at the recruitment process is whether the employee being

recruited will benefit to the organisation in the long run and will he remain with the organisation

for a longer period of time than what the current trend shows. Another problem, which is a

common dilemma for the HR managers, is to hold back the potential employees in the

organisation and preventing them from leaving it. To succeed in this, what ideally should be

done is to not just offer these employees high material incentives but also try and create a sense

of commitment to the organisation so that the employee remains and works with the organisation

by choice and not force and identifies with the organisation.



4.1.2 PRINCIPLES OF ORGANISATIONAL COMMITMENT

The sense of organisational commitment will prevail an employee if the following

principles are already present in the employee’s nature and behaviour or if the organisation

successfully generates these principle qualities in them. It is on the presence and absence of these

principle feelings; a certain level of organisational commitment is developed and maintained.

Job Security

The ability to keep a job for as long as one wants, providing one’s job performance is

satisfactory.

Loyalty

The feelings of affection and attachment to one’s organisations.

Trust in Management

The extent to which employees ascribe good intentions to, and have trust in, the works

and actions of management and their organisation.

Identification

The extent to which employees adopt, as they are own, the goals and values of the

organisation.

Alienation

The extent to which the employee feel disappointed with their career and professional

development.

Helplessness

The extent to which employees feel that they possess few opportunities and alternatives

available to them outside their organisation



4.1.3 FACTORS AFFECTING EMPLOYEE COMMITMENT

Van Dyne and Graham (1994) contented that various personal, situational and positional

factors can affect the commitment of employees and consequently their attitude and behaviour.

The discussions below briefly high lights the principal personal, situational and positional factors

that influence employee commitment.

4.1.3.1 Personal factors

A great deal of research has sought to determine whether certain types of employees are

more likely to be committed to their employer .According to this result some employees may

simply be more predisposed to engage in citizenship behaviours than others. In particular,

employees who are highly conscientious, outgoing (extroverted) and generally have a positive

outlook on life (optimistic) are often more inclined and more committed. Employees who are

team oriented are tend to place the goals and concerns of the group above their own, typically

also be more inclined to display citizen relationship at work. Finally certain employees tend to

define their jobs more broadly than others, thus for these employees engaging citizen relationship

behaviour is simply seen as an integral part of their jobs.

4.1.3.2 Situational factors

Work place values

Shared values are a critical component of any conventional relationship. If employees believe

that their organization values quality products, they will engage in behaviours that will contribute

to high quality.



Job characteristics

To the extent that a job is structured is to provide regular feedback autonomy as well as a

sense of task completion, employees can monitor their own behaviour and gain an increased

sense of personal control .A high sense of personal control thus has a positive consequences for

employee attitudes and behaviours at work place.

Organisational support

There is an important relationship between the employee commitment and the extent to

which employee believe their organisations. Organisations that are able to provide work-life

benefits and other types of employee support are likely to elicit citizenship behaviour.

4.1.3.3 Positional factors

Organisational tenure

Various researchers have studied the relationship between job tenure and the employee’

relationships with the organisations. The studies has shown that employees who have been with

their employing organisations for a long time are more likely to have a embedded strong

relationship and strong organisational ties(Rousseau & Parks 1993).

Hierarchical job level

In organisations employees at higher job levels generally have high level of employee

commitment than those at lower levels. This is because positions of power allow people to

influence organisational decision making, indicate high status, recognize formal authority and

possibly competence, and show that organisation values their contribution.



4.1.4 Drivers of Employee commitment

Bragg (2002) identified the following three drivers as key factors influencing an

employee’s commitment.

4.1.4.1 Fairness

Fairness implies the elimination of one’s feelings, prejudices desires to achieve a proper balance

between conflicting interests. The problem with fairness is that it is subjective. Again, perception

is reality. To create a perception of fairness, employers should pay competitive wages, create and

administer policies that are unbiased, offer competitive benefits, provide timely accurate and

useful performance appraisal and also promotional and developmental opportunities.

4.1.4.2Trust

To nurture commitment, employers must create an environment of trust. If employers

wish to develop and maintain trust, they should be consistent, maintain confidence, encourage

employee involvement and should be ready for learn from mistakes. Building the trust of

employees on employers will help to improve employee commitment.

4.1.4.3 Concern for employees

Employees should be regarded as people, not factors of production. Employers should

provide job security as far as possible, training and development opportunities and other facilities

also.



Overall today’s employees have a strong sense of self- worth; they recognize their value

and want the employers as to well. Organizations that listen to their employees and build a

commited work place will have a competitive advantage.

4.1.5Dimensions of Employee Commitment

There is some disagreement with regard to the dimensionality of organisational

commitment and these differences stem from different motives and strategies involved in their

development. These include attempts to account for (a) empirical findings (Angle & Perry,

1981); (b) distinguish among uni dimensional conceptualisation (Jaros, 1993; Allen & Meyer,

1990), (c) ground commitment with an established theoretical construct (O’Reilly &

Chatman, 1986;) or some combination of these (Mayer & Scoorman, 1992; O’Reilly, Chatman

and Caldwell, 1986). However, a major factor that distinguishes the different forms of

commitment from another within the various models is the mindset (emotional attachment, sense

of being locked in, belief in and acceptance of the goals) presumed to characterise the

commitment. Moreover, there is considerable similarity in the nature of the mindsets within the

different frameworks.

4.1.6 Dimensions of organisational commitment within multi dimensional models

Table 4.1.6

Angle& Perry(1981)

Value commitment Commitment to support the goals of the organisation.

Commitment to say Commitment to retain their organizational membership

O’Reilly & Chatman (1986)

Compliance Instrumental involvement for specific extrinsic rewards.



IdentificationAttachment based on the desire for affiliation with the

organisation

InternalisationInvolvement predicted on congruence between individual

and organisational values.

Allen & Meyer (1990)

AffectiveThe employee’s emotional attachment to identification

with an involvement in the organisation.

ContinuanceAn awareness of the costs associated with leaving the

organisation

Normative A feeling of obligation to continue employment

Mayer & Schoorman (1992)

Value

A belief in and acceptance of organisational goals and

values and a willingness to exert considerable effort on

behalf of the organisation.

Continuance The desire to remain a member of the organisation.

Jaros (1993)

Affective

The degree to which an individual is psychologically

attached to an employing organisation through feelings

such as loyalty, affection, warmth, belongingness,

fondness ,pleasure and so on.

ContinuanceThe degree to which an individual experiences a sense of

being locked in a place of high costs of leaving.

Moral The degree to which an individual is psychologically



attached to an employing organisation through

internalisation of its goals, values and missions.

4.1.7Types of Employee commitment

4.1.7.1 Affective Commitment

It is the strength of people’s desire to continue working for an organisation because they

agree with its underlying goals and values. People feeling high degrees of affective commitment

desires to remain in their organisations because they endorse what the organisation stands for and

are willing to help in its mission.5

Bauer (2007) posit that organisational conditions encourage commitment. Participation in

decision making and job security are two such conditions. Certain job characteristics also

positively affect commitment. These include autonomy, responsibility, role clarity and

interesting work. Managers should encourage affective commitment because committed

individuals expend more task related effort and are less likely than others to leave the

organisation (Somers, 1995). Stinglhamber (2003) is of the view that those managers can

increase affective commitment by communicating that value employees’ contributions and that

they care about employees’ wellbeing.

Luthans (1985) revealed that American workers displayed higher affective commitment

than Korean and Japanese workers. Wong (2003) showed that Chinese place high value on social

relationship at work and that those with stronger interpersonal relationships are more committed

to their organisation. The author suggests that Chinese firms improve employee commitment and

retention by organising activities to help cultivate relationship among employees. This means

5 Dr.Varsha Dixit , A study about employee commitment and its impact on sustained productivity in Indian Auto-component industry,p-38



that expatriate managers should be sensitive to the quality of relationship among their Chinese

employees if they want to improve organisational commitment.

4.1.7.2 Continuance Commitment

It is strength of a person’s desire to remain working for an organisation due to his or her

belief that it may be costly to leave. The longer the people remain in their organisation, the more

they stand to lose what they have invested in the organisation over the years.

Becker (1960) view continuance commitment as an employee’s tendency to remain in an

organisation because he or she cannot afford to leave. Sometimes employees believe that if they

leave, they will lose a great deal of their interest in time, effort and benefits and they cannot

replace these investments.

In Kanter’s (1968) opinion, continuance commitment refers to participating in a system

and remains as its member, which emanates from a cognitive judgement that it is worthwhile to

remain in the group rather than bear the cost of leaving the group.

Stebbins (1970) has stated that continuance commitment is a psychological state that

arises not from the presence of rewards but from the presence or imminence of subjectively

defined penalties associated with the attempt or desire to leave a specific position.

4.1.7.3 Normative Commitment

It refers to employee’s feelings of obligation to stay with their organisations because of

pressure from others. People who have high degrees of normative commitment are greatly

concerned about what others would think of them for leaving.

Normative commitment refers to an employee’s desire to stay with the organisation based

on a sense of duty, loyalty and obligation. This sense of loyalty makes individuals feel that they



ought to stay committed to the relationship simply because it is the right thing to do (Allen,

1990).

Benkhoff (1996) posits that affective commitment and normative commitment are related

to lower rates of absenteeism, higher quality of work, increased productivity and several

different types of performance.

4.1.8 Methods of building Employee Commitment

Building employee commitment to the work place one of the important goal of HR

policies and practices. Research shows that commitment has a positive effect on productivity,

turnover and absenteeism etc. The following are the methods of building employee commitment.

1. Invest more time in the hiring process. Hiring takes a lot of time, but a rigorous process

pays off when you find the right person. "Person/organization fit is huge," Bergeron says. "If

you're selective on the front end, you lose fewer people later." Well-matched employees are

naturally more loyal, so retaining them takes less effort.

As you hire, introduce the candidate to several people on your team, ask them to complete a

project or share samples of past work, and screen for personality. "Make sure their values match

the values of the organization," Bergeron adds. A good match will blend naturally with the others

on your team, rounding out their skills and fitting in with the overall culture.

2. Make your employees marketable. A good working relationship must be beneficial for both

of you, meaning that employees need regular opportunities to enhance their professional skills.

Many companies worry about investing too much in employees in case they leave, but you want

to do just the opposite. "The more [employees] feel they can leave, the more likely they are to

stay," Bergeron says.



Managers are the most important source of growth and inspiration. "The relationship with the

manager is the number one predictor of whether or not someone stays [at a job]," Bergeron says.

Make sure your managers are trained to inspire their employees, share their expertise, and offer

opportunities for growth.

3. Allow many paths to promotion. Your employees' needs are ever evolving, so you can help

them grow and inspire loyalty by offering opportunities for advancement tailored to their skills

and goals. For example, many computer programmers want to move up without shifting into

management, so tech companies often offer a choice between technical or managerial career

paths.

Go one step further by helping an employee create a new job based on their skill set, or allowing

them to rotate between different roles. "If people have the flexibility to tailor their job to their

needs, they're less likely to leave to find what they need," Bergeron says.

4. Empower employees to make choices. Inspire loyalty by giving employees a sense of

freedom and control. "When people feel that they're trusted, they respond to that," Bergeron says.

You might let employees work from home when needed, make decisions autonomously, or

adjust their work schedule to balance family. Those freedoms show confidence and help

employees tailor the job to their needs.

"Trust is this basic component of society," Bergeron says. "Without it, [organizations] cease to

function." Trusting companies have less rigid management, greater creativity, and higher

employee satisfaction. They also inspire employees to go above and beyond, making the

workplace better for everyone.

4.2 THEORETICAL FRAME WORK OF EMPLYEE PRODUCTIVITY



Employee productivity is the one of the important factor that determines the success of

the organisation. Achieving better labor productivity requires detailed studies of the actual labor

cost. Various labors have different variables affecting their productivity levels. For every project,

productivity, cost, quality, and time have been the main concern. Better productivity can be

achieved if project management includes the skills of education and training, the work method,

personal health, motivational factors, the type of tools, machines, required equipment and

materials, personal skills, the workload to be executed, expected work quality, work location, the

type of work to be done, and supervisory personnel (Rowlinson and Proctor, 1999).

4.2.1 Definition

In the broad sense productivity represents the good and the services produced in relation

to the resources utilised to the production. It may be defined as the ratio of output to the ratio of

input. In actual terms productivity is a component which directly affects the company’s profits. It

is the measure or calculation between inputs and outputs. Inputs are the time and effort spent on

working and outputs are the outcomes/results. If the outputs are equivalent to the outputs the

employee is considered productive.

According to Peter Ducker” productivity represents the balance between all factors of

production that will give the greatest output at the smallest effort” In technical terms,

productivity may be defined as the ratio between input and output.

Employee productivity is the ratio of output that a labour produced in accordance with the

available inputs. Employee commitment is one of the important factors affecting the employee

productivity.

4.2.2 FACTORS AFFECTING EMPLOYEE PRODUCTIVITY



Following are the some of the important factors affecting Employee productivity:-

Strongly Defined rules and objectives

Goals and objectives of the organisation need to be real. It should be easily recognized

with no ambiguity or doubt. The goals need to be written and rethought at regular

intervals according to employee progress. This helps the employee understand what

exactly is expected of him and deliver the results accordingly. Lack of information

definitely leads to assumptions and confusion and a lack of productivity in a workplace.

Motivation (psychological aspects)

This aspect plays a very important role. A lot of psychological tabs and be pushed to

motivate the team and thus increase the employee productivity. Most important are the 3

R’s – Recognize, Reward and Reach out. Recognize and reward the work done above and

beyond. This will spur the employee to new heights and encourage the others to follow.

Never miss reaching out to everyone who contributes directly or indirectly for the

progress, which just shows that we really care for their well being.

Employee engagement

An employee is engaged when he is completely engrossed in the work and is emotionally

attached to the work environment and their organization.

Strategic rotation

Strategically rotate the task between teams and team members and ensure that all the

employees within a project are capable enough to cover each other during crisis and make

them responsible for each action or task delivered.

Having humanly human resource practices.



Having good HR Practices which enables and makes the employee feel more comfortable

definitely helps in boosting employee satisfaction and productivity.

Refresher sessions.

Conducting refresher sessions, quiz and presentations on related topics will ensure the

employee is completely equipped and confident to achieve the desired results.

Innovating and strong technology with proper resources.

Ensuring that the employee is given the right technology with regular enhancements

which is adaptable to the work being performed and proper resources will give extreme

good support for an employee to contribute better.

Along with this an ICARE attitude will increase the productivity and increase the

organisation profitability.

I = Integration

C= Collabration

A = Accountability

R = Responsibility

E = Excellence

4.2.3Significance of productivity

Whether it is a free enterprise economy or socialised economy or mixed economy there is

a stress is given on a higher productivity. The relationship between productivity and economic

growth is almost self explanatory. Productivity is an important element in the process of

economic growth. When the productivity of the industry is increased the rate of economic

growth increased automatically. Increase in productivity in an industry leads to higher

production with the most economic use of the available resources, in other words cost of



production is decreased. These benefits the customers by reducing the prices, the workers by

increasing their wages and the entrepreneurs by increasing profits. Since the people’s income

increases, their demand is also increases. Increase in demand make it possible to start new

industrial units generate more employment. Thus, it is obvious, that higher productivity is

instrumental in the economic growth of any nation.

4.2.4 Advantages of higher productivity

Advantages of higher productivity are the following:-

i. Increase in efficiency of various factors of production.

ii. Economic use of various factors of production, this decreases the cost of

production per unit.

iii. Decrease in overhead cost.

iv. Better quality goods at lower prices. This will enhance the stand of living of

people.

v. Increase in wages and salaries to the workers. The workers also get better working

conditions and higher bonus.

vi. Profits are increased and this facilitates internal financing of expansion.

vii. Better economic strength and stability of enterprise.

viii. Overall growth of the economy.

4.2.5 Difficulties in managing labour productivity

The Difficulties in managing productivity of labour is due to the following factors:-

i. Lack of commitment of managers for productivity enforcement.

ii. Lack of systems to measure productivity.

iii. Difficult industrial relation.



iv. Bad methods and bas management contributing to lower productivity.

Expect the difficult industrial relation, the managent have to take the responsibility for

the above difficulties.

The reasons for the poor productivity at floor level are the following:-

i. High overtime

ii. High idle time

iii. High absenteeism

iv. Low output

v. More rejections

vi. Rework and rectification

vii. More waiting time

viii. Inadequate utilisation of machinery

ix. Surplus manpower

x. Frequent work stoppage

In view of the strength of the unions the control of labour productivity has ceased to be an easy

task, even minor changes invite the attention and the involvement of unions. When the industrial

relation climate is unsatisfactory maintaining the productivity requires most of the energies of

the management, if the management is commited to enhancing productivity.

4.2.6 Measures of increasing labour productivity



The following are the steps to increasing labour productivity:

i. Improved raw material

Raw materials of right quantity should be procured by every industrial unit. This

will reduce wastage and increase the productivity of the labours and machines.

ii. Improved machines

Latest machines and equipments should be procured by every industrial unit. This

will helps to improve labour productivity.

iii. Improved working conditions

There should be proper arrangement of lighting, ventilations, and cleanliness, cooling

and heating of work place. If these arrangements are not proper, productivity is likely to

be low.

iv. Scientific selection of workers

Right persons should be appointed in the various positions of the organisation. Also

should be provided adequate training, raw materials, machines etc.

v. Provisions of incentives

Workers should be offered incentives to increase their productivity. Workers of good

productivity should be properly rewarded and recognised. Productivity linked bonus

plan can also be introduced for improving labour productivity.

vi. Harmonious relation

There should be industrial peace in the organisation. Harmonious industrial relations

help to get higher productivity from the workers.

vii. Quality and cost consciousness

Both the workers and the management should be conscious about cost and quality.



viii. Industrial research

Industrial research help to understand the new methods and techniques of production and their by

improving labour productivity. If an organisation adopts the above measures it will improve the

employee productivity and thereby organisation productivity.



CHAPTER 5

RESEARCH METHODOLOGY

Research in common parlance refers to a search for knowledge. Research comprises of defining

and redefining problems, formulating hypothesis, collecting, organising and evaluating data,

making deductions and reaching conclusions; and at last carefully testing the conclusions to

determine whether they fit the formulating hypothesis6. Research is thus, an original contribution

to the existing stock of knowledge making for its advancement.

5.1 RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. In it we study the various

steps that are adopted by the researcher in studying his research problem along with logic behind

them.

5.2 RESEARCH DESIGN

According to Kerlinger “ Research design is the plan ,structure and strategy of investigation

conceived so as to obtain answers to research questions and to control variance”. A research

design is the arrangement of conditions for the collection and analysis of data in a manner that

aims to combine relevance to the research purpose with economy in procedure.

The design adopted for this study is ‘Descriptive Research Design’ which is concerned with

describing the characteristics of the particular individual or of a group. Since the study is

6 C.R.Kothari, Research Methodology methods and techniques,2004,p-2



qualitative in nature, for describing attitudes and opinions of the respondents, the researcher have

of the opinion that ‘Descriptive Research’ is the most appropriate one.

5.3UNIVERSE

The universe of the present study is the employees currently working in KITEX LTD

Kizhakkambalam. Here the total population is 1300 employees.

5.4 SAMPLING UNIT

Sampling unit is the ‘number of employee’ in the KITEX LTD.

5.5 SAMPLING SIZE

Sampling size refers to the number of items to be selected from the universe to constitute a

sample. The sample size for the study was 50 of the total number of employees in KITEX Ltd.

5.6 SAMPLING TECHNIQUE

There are two methods of sampling technique. They are probability sampling and non-

probability sampling. Probability sampling has been selected for these study .Probability

sampling methods include: Simple random sampling and restricted random sampling. The

sampling design the researcher adopted is simple random sampling.

5.7 SAMPLING PROCEDURE

Simple random sampling has been adopted here. It refers to a sample selected from a population

in such a way that every member of the population has an equal chance of being selected and the

selection of any individual does not influence the selection of the other.To ensure the

randomness of selection we adopt lottery method.



5.8. SOURCES OF DATA

a) Primary data

Primary data for the study is collected using a well structured, closed end questionnaire

distributed among the sample of 50 employees randomly selected.

b) Secondary data

Data collected from a source that has already been published in any form is called secondary

data. The review of literature in any research is based on secondary data. Secondary data

analysis saves time that would otherwise be spent collecting data and particularly in the case

of quantitative data, provided larger and higher-quality database that would be unfeasible for

any individual researcher to collect on their own.

The secondary data for the study were collected from Human Resource records, company

websites, magazines, journals, and internet and for other published sources.

5.9 PROCESSING OF DATA.

Processing implies Editing, Coding, Classifying, and tabulating the collected data so that

they are amenable for analysis.

Editing: Editing of data is a process of examining the collected raw data to detect errors and

omissions and to correct these when possible.

Coding: Coding refers to the processing of assigning numerals or other symbols to answers

so that responses can be put into a limited number of categories or classes.

Classification: The process of arranging data in groups or classes according to resemblance

and similarities is technically called Classification.



Tabulation: when a mass of data has been assembled, it become necessary for the researcher

to arrange the same in some kind of concise and logical order.

5.10 DATA ANALYSIS TOOLS

After collection of data from the employees each questions were analysed using percentage

analysis method.

The percentage analysis is done according to the sample. The percentages of the respondents

are taken and respective graph is drawn according to it.

Percentage = Number of respondents

Total number of respondent

5.11 PRESENTATION OF DATA

The data is presented through charts and tables.



CHAPTER 6

DATA ANALYSIS AND INTERPRETATION

In order to extract meaningful information from the data collected, data analysis and

interpretation were carried out. They are first edited, coded and tabulated for the purpose of

analyzing them.

Analysis means computation of certain indices of measures along with searching for patterns

of relationships that exist among the data groups. In short, making intelligent and systematic

effort to understand the relationship between various data, the researcher has done processing

and then analyzed the data in order to accomplish the set research objectives.

The chapter entails the processing, analysis and interpretation of data. The data has been

initially processed with the help of field editing and tables. Suitable techniques are used to find

the reliability of various data and testing the accuracy of findings. The processed data has been

analyzed and appropriate interpretation is made which are presented as follows



Table 6.1- specific factors affecting employee commitment





Graph 6.1- specific factors affecting employee commitment



Analysis

The table 6.1specific factors affecting employee commitment shows that 20 % of the employees

are highly agree, 40% of the employees are agree ,20% of the employees have no comments and

20% of the employees are disagree that pay and reward system of the organization is the specific

factors influencing their commitment.

Then the table shows that 60% of the employees are highly agree and 40% of the employees are

agree that their attitude towards the job is the specific factor influencing their commitment in

Kitex.Ltd.

Next the table shows that 20% of the employees are highly agree and 80% of the employees are

agree support from the peers is a specific factor influencing their commitment in Kitex, Ltd.

Then the table shows that 20% of the employees are highly agree and 80% of the employees are

agree with the feedback from the superiors is a specific factor influencing their commitment in

Kitex,Ltd.

Next the table shows that 60% of the employees agree and 40% of the employees have no

comments about their knowledge about the organisation mission and vision is a specific factor

influencing their commitment in Kitex, Ltd.

Then the table shows that 40% of the employees agree and 60% of the employees have no

comments about their participation in management decision making is a specific factor

influencing their commitment in Kitex,Ltd.



Next the table shows that 20 % of the employees are highly agree , 20% of the employees agree

and 60% of the employees have no comments about the organization promotional policies is a

specific factor influencing their commitment in Kitex,Ltd.

Then the table shows that 100 % of the employees are highly agree that the job security provided

by the organization is a specific factor influencing their commitment in Kitex, Ltd.

Next the table shows that 100 % of the employees are agree that the stress free work

environment of the organization is a specific factor influencing their commitment in Kitex, Ltd.

Then the table shows that 100 % of the employees are agree with the training and development

opportunities available to them is a specific factor influencing their commitment in Kitex, Ltd.

Finally the table shows that 20 % of the employees are highly agree , 80% of the employees are

agree with the organisational justice and trust is a specific factor influencing their commitment

in Kitex,Ltd.

Interpretation

From the above analysis it is inferred that most of the employees are agreed 40%) with the pay

and reward system of the organization, and highly agreed (60%) in their attitude towards the and

satisfied (80%) in support from the peers, and agreed (80%) with the feedback from the

superiors, and agreed (60%) about their knowledge about the organisation mission and vision,

and have no opinion (60%) about their participation in management decision, and have no

opinion (60%) about the organisation promotional policies, and highly agreed (100%) with the

job security provided by the organization and agreed (100%) with the stress free work

environment and the training and development opportunities available to them ,and agreed



(80%) with the organisational justice and trust are the specific factor influencing their

commitment in Kitex,Ltd.

Majority of the employees are highly agreed (100%) with the job security provided by the

organisation and agreed (100%) with the stress free work environment and training and

development opportunities provided by the organization are the specific factors influencing

their commitment in Kitex,Ltd.



Table 6.2.1- level of affective commitment



Graph 6.2.1- level of affective commitment



Analysis

The table 6.2.1, level of affective commitment shows that the 20 % of the employees highly

agreed, 40 % of the employees are agreed and disagreed that they are happy to spend to spend

rest of their career in kitex Ltd.

Then 100% of the employees are agreed that they feel that the organiSational problems are their

own.

Next 100 % of the employees agreed that they feel a sense of belongings to the organisation.

Then 100% of the employees agreed that they have an emotional attachment to the organisation.

Finally 100 % of the employees agreed that they have a great deal of personal meaning to the

organisation.

Interpretation

From the above analysis it is inferred that most of the employees agreed (100%) that they feels

organisational problems are their own, have a strong sense of belongness, emotional attachment

and great deal of personal meaning with the organization. And equal percentage (40%) of the

employees agreed and disagreed that they are ready to spend rest of their career in the Kitex Ltd.

From this we can interpreted that employees affective commitment depends on their feeling of

sense of my own, belongness, personal meaning and the emotional attachment (agreed 100%)



Table 6.2.2- Level of continuance commitment



Graph 6.2.2- Level of continuance commitment



Analysis

The table 6.2.2 level of continuence commitment shows that 40 % of the employees are agreed

and have no opinion and 20 % are strongly disagreed that they staying in the organisation as a

matter of necessity.

Then 40 % of the employees are agreed and have no opinion and 20 % are strongly disagreed

that it would be costly for them to leave the organisation.

Next 40 % of the employees are agreed and have no opinion and 20 % are strongly disagreed that

their life would be disrupted if they decided to leave the organisation

Then 40 % of the employees are agreed and 60 % are disagreed that they put so much effort to

staying this organisation.

Finally 20 % of the employees are agreed, 60 % are disagreed, and 20 % are strongly disagreed

that they can’t leave the organization because of the scarcity of the available alternatives.

Interpretation

From the table it can infer that employees have continuance commitment depends on their matter

of necessity, and need of balancing the present position of life (Agreed 40%).



Table-6.2.3-Level of normative commitment



Graph 6.2.3-level of normative commitment



Analysis

From the table 6.2.3 level of normative commitment shows that 20 % of the employees strongly

agreed and 80 % of the employees agreed that they are remain in the organisation because of

they feel some moral obligation with the employer.

Next 20 % of employees strongly agreed, agreed and have no comments and also 40 % of the

employees agreed that they can’t leave the organisation because of the feeling of guilty to leave

it.

Then 40 % of the employees strongly agreed and 60 % of the employees agreed that the

organisation deserve their loyalty.

Next 20 % of the employees strongly agreed, 60 % of the employees agreed and 20 % of the

employees disagreed that they can’t leave the organization because of they have a sense of

obligation to the people in the organisation.

Lastly 40 % of the employees strongly agreed 60 % of the employees are agreed that they owe a

great deal to the organisation.

Interpretation

From the above analysis it is inferred that employees’ normative commitment depends on their

loyalty (strongly agreed 40%) and feeling of moral obligation to the employer (agreed 80%).



Table 6.3. - Relationship between employee commitment and employee productivity



Graph 6.3. - Relationship between employee commitment and employee productivity



Analysis

The table 6.3 relationship between employee commitment and employee productivity shows that

60 % of the employee strongly agreed and 40% of the employees agreed that their commitment

to the organisation improves their productivity.

Then 60 % of the employee strongly agreed and 40% agreed that employee commitment

improves job satisfaction and also the employee productivity.

Next 40 % of the employees strongly agreed and 60 % of the employees is agreed that reduction

in employee turnover is a result of employee commitment and it improves productivity.

Then 20 % of the employees strongly agreed and 20 % agreed and disagreed that feeling of

obligation to the organisation improves their productivity.

Finally 60 % of the employee strongly agreed and 40 % agreed that promotional opportunities of

the employees improved their productivity.

Interpretation

From the above Analysis we can get the following inferences:

Increased employee commitment can increase employee productivity. (60% strongly agree, 40 %

agree), employee commitment improves job satisfaction and employee productivity (60%

strongly agree, 40 % agree), employee commitment reduces labour turnover and employee

productivity (40% strongly agree, 60 % agree), Obligation toward the organisation increases

employee productivity.(40 % strongly agree,20% disagree),Promotional opportunities increases

employee commitment (60% strongly agree, 40 % agree)



In general we can say that employee employee commitment increases the productivity of the

employees in the kitex Ltd.



CHAPTER 7

FINDINGS

After analysis and interpretation the findings of the study are given as follows.

OBJECTIVE 1

To understand specific factors affecting employee commitment in Kitex Ltd.

Findings

The specific factors affecting the commitment of the employees in Kitex Ltd. are the following:

1. Job security provided by the organisation (100% highly satisfied).

2. Stress free work environment and training and development opportunities provided by

the organisation(100% satisfied).

3. Peers support feedback from superiors and organisational justice and trust (80%

satisfied.)

OBJECTIVE 2

To understand the level of employee commitment in Kitex Ltd.

1. Employees in the kitex limited agreed that they have a strong sense of affective commitment

towards the organization (agreed 100%)

2. Employees in the kitex limited shows a sense of continuance commitment towards the

organization (agreed 40%)



3. Employees in the kitex limited shows a sense of normative commitment towards the

organization (agreed 80%)

From the above findings we can say that the level of employee commitment of the employees in

the kitex limited is the affective commitment (agreed 100%).

OBJECTIVE 3

To understand how employee commitment affecting the productivity of employees in Kitex Ltd

1. Increased employee commitment can increase employee productivity.(60% strongly

agree, 40 % agree)

2. employee commitment improves job satisfaction and employee productivity(60%

strongly agree, 40 % agree)

3. employee commitment reduces labour turnover and employee productivity(40% strongly

agree, 60 % agree)

4. Obligation toward the organisation increases employee productivity.(40 % strongly

agree,20% disagree)

5. Promotional opportunities increases employee commitment(60% strongly agree, 40 %

agree)

In general employee commitment helps the organisation for improving its employees

productivity



CHAPTER 8

SUGGESTIONS

Some suggestions are made based on the findings, it will be helpful for the organisation for the

further improvement of employee commitment and employee productivity. The suggestions are

the following:

1. Since job security is the most important factor which affecting the commitment of the

employees in Kitex limited, keep its continuing.

2. Workers have little knowledge about the organization mission and vision, so make the

employees to aware about organization mission and vision. It will helpful for the employees for

increasing their commitment and productivity. Maintain the attitude of management towards the

employees and encourage communication with the employees. Management can discuss with

staffs to improve their commitment. When taking decisions, revise the company mission

statement to include all employees and departments as though they are an integral part of the

company’s future.

3. Provide more promotional opportunities and pay and reward structure to the employees.

Proper promotional opportunities and salary structure will helpful for the organization to

improving its employee’s commitment.

4. The level of employee commitment in kitex Limited is satisfactory, so keep its on the same

level.



5.Reduction in employee turnover is a result of its employees commitment, provision of

incentives, bonus, promotional opportunities etc will help the organization for improving

employee commitment and their by employee productivity.



CHAPTER 9

CONCLUSION

The study was indeed helpful to the researcher to understand more about the correlation between

employee commitment and productivity of the employees in KITEX Pvt Ltd. The study revealed

that the element of commitment was found to be present in most of the employees working

pattern. The success of every organisation’s business strategy depends a great deal on the

employee commitment levels. Increased employee commitment increases the productivity of the

employees this will provide quality products and services to the customers. The improved

customer service also improves the public image of the organization. Increased employee

commitment, employee productivity, and customer service will improve the profitability of the

organization. The sample size taken for the study is only 50. It can be extended to a larger

sample. Lower level employees can also be included in the study and can be used to measure the

commitment level of employees.




MAIN BODY

Documents

employee commitment

organisational commitment

concept of commitment

employee productivity

employees commitment

employees total commitment

affective commitment

situational factors