ORGANIZATIONAL COMMITMENT AND JOB SATISFACTION: A STUDY OF EMPLOYEES IN THE INFORMATION TECHNOLOGY INDUSTRY IN BANGALORE, INDIA Submitted in partial fulfilment of the requirement for the degree of Master of Philosophy By Jasmine Sonia (Roll No.0930008) Supervisor T.BHAMA Lecturer-Department of Management studies 2010
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ORGANIZATIONAL COMMITMENT ANDJOB SATISFACTION: A STUDY OF
EMPLOYEES IN THE INFORMATIONTECHNOLOGY INDUSTRY IN
BANGALORE, INDIA
Submitted in partial fulfilment of the requirement for the degree of
Master of Philosophy
By
Jasmine Sonia(Roll No.0930008)
Supervisor
T.BHAMA
Lecturer-Department of Management studies
2010
DECLARATION
I Jasmine Sonia hereby declare that the dissertation, entitled “Organizational commitment
and Job satisfaction: A study of employees in the Information Technology Industry in
Bangalore, India” submitted to Christ University, in partial fulfilment of the requirements for
the award of the Degree of Master of Philosophy in Management is a record of original and
independent research work done by me during the academic year 2009-2010 under the
supervision and guidance of Ms. T. Bhama, Department of Management studies , Christ
University ,and it has not formed the basis for the award of any Degree/Diploma/Associate
ship/Fellowship or other similar title to any candidate of any University.
Date: Signature of the candidate
CERTIFICATE
This is to certify that the dissertation, entitled “Organizational commitment and Job
satisfaction: A study of employees in the Information Technology Industry in Bangalore,
India” submitted to Christ University, in partial fulfilment of the requirements for the award
of the Degree of Master of Philosophy in Management is a record of original research work
done by Ms. Jasmine Sonia During the period 2009-2010 of her study in the Department of
Management studies at Christ University, Bangalore, under my supervision and guidance and
the dissertation has not formed the basis for the award of any Degree/Diploma/Associate
ship/Fellowship or other similar title to any candidate of any University .
Date: Signature of the Guide
T.Bhama (Lecturer)
Department of Management Studies,
Christ University
APPROVAL OF DISSERTATION
The dissertation entitled “Organizational commitment and Job satisfaction: A study of
employees in the Information Technology Industry in Bangalore by Jasmine Sonia is
approved for the degree of Master of Philosophy in Management.
I express my sincere gratitude to the management of Christ University for giving me an
opportunity to complete Master of Philosophy in Management. I am greatly indebted to Fr.
Thomas T .V. (Director, Institute of Management) for his guidance and who always remained
as a source of inspiration.
I remember the efforts taken by the Research centre of the Christ University for establishing a
universal research culture and motivating the research scholar to accomplish this study.
I am greatly thankful to my guide Ms. T. Bhama (Lecturer, Department of Management
studies) for her constant guidance, support, patience and encouragement to complete this
work on time.
I extend my profound gratitude to Prof. Harold Andrew Patrick (Professor and coordinator
OB and HRM) for giving me all the necessary guidance and suggestion.
I would like to thank Dr. Mihir Dash for helping me in data analysis and for giving all the
necessary suggestion for the interpretation of data.
I remember with gratitude all the IT employees who have shown interest in filling my
questionnaire, without which the research work could not have materialized.
I would like to thank my family, colleagues, and friends for all their love and encouragement
in all stages of my dissertation work.
Lastly, I thank God for making me who I am and giving me all blessings to complete this
journey.
JASMINE SONIA
ABSTRACT
The integral part of any management process is to manage the people at work. A well
managed organisation sees worker as the root cause of quality and productivity .An effective
organisation will always promote a sense of commitment and satisfaction among its
employees. The significance and importance of the concept of organizational commitment in
terms of leading to beneficial organizational and desirable outcomes such as increased
productivity, reducing absenteeism and turnover, has been documented by many studies such
as those of Steers (1977); Porter et al. (1974); Reiches (1985) and Tett and Meyer (1993).
One way to address issue of employee turnover is to understand the job satisfaction and
commitment level of employees. Organizations often try to foster commitment in their
employees to achieve stability and reduce costly turnover. It is commonly believed that
committed employees will also work harder and be more likely to “go the extra mile” to
achieve organizational objectives. Research has consistently demonstrated that commitment
does indeed contribute to a reduction in turnover. Motivated employees are needed in our
rapidly changing workplaces. Motivated employees help organizations survive. Motivated
employees are more productive. To be effective, managers need to understand what motivates
employees within the context of the roles they perform. A lot of studies are conducted
separately on commitment, satisfaction and motivation but very few studies are there on IT
sector linking these three .So it is crucial to conduct a study on job satisfaction and
organizational commitment in information technology industry and also to identify the
important motivating factors to retain the highly talented workforce.
The review of related literature on Organizational commitment, Job satisfaction and
Motivation has helped the researcher to identify the gap and has provided an insight to the
direction of current study. The population for the study was all technical employees in the
Information technology Industry in Bangalore city. For the present study data was collected
with the help of structured questionnaire from 300 employees working in software industry.
The study is concentrated on Bangalore IT industry. The researcher used non probabilistic
sampling (purposive sampling) method as sampling design. Samples were selected from 10
top IT multinational companies. Samples were drawn from three levels of management
including entry level, middle level and top level employees. The pertinent information for the
study is collected from both primary and secondary sources.
The independent variable in this study is job satisfaction. The overall Job satisfaction was
measured using the 15-item questionnaire developed by Prof.Harold Andrew Patrick in 2009,
designed to measure 15 aspects of job. The aspects of overall job satisfaction are job
security,interest,opportunity for advancement,appreciation,company policy and management
practises, intrinsic aspects of a job,salary,supervision,social aspects of job, working
conditions,communication,hours,ease, benefits ,and fair treatment. Responses were collected
with the help of 7 point likert scale.
The dependant variable, organizational commitment was measured using the revised
Organizational Commitment Scales (Meyer, Allen and Smith 1993) that is, the Affective
Commitment Scale (ACS), the Continuance Commitment Scale (CCS) and the Normative
Commitment Scale (NCS) with 24 questions on 7-point Likert scales. The Kovach ten job-
related factors developed by kovach , Kenneth (1999) were used to determine what motivates
the employees in software industry. The respondents were asked to indicate the degree of
importance of the factors and relative ranking according to motivational importance. The
statistical technique used to analyse the data were descriptive statistics, The Pearson’s
correlation, ANOVA, Regression and Friedman test. Data was analysed with the help of
SPSS.
The major findings of the study were:
1. The level of organizational commitment was moderate, with relatively higher variability in
affective commitment. Mean value was highest for Continuance commitment indicating
employees are staying back with the organization because of the cost of leaving the
organisation or it’s too much trouble to go somewhere else.
2. IT employees were showing only a moderate level of job satisfaction. Amongst the items
comprising the scale for job satisfaction, the items with highest satisfaction levels were
related to the social aspects of the job, working conditions (excluding working hours), interest
(from intrinsic aspects of the job), job security, communication, and ease of the job (as an
intrinsic aspect of the job). On the other hand, employees had lowest satisfaction levels for
working hours, supervision, appreciation from management, and salary. It shows that IT
employees are dissatisfied with the working hours, supervision, appreciation from
management and the salary they are getting.
3. To increase the Job satisfaction and commitment it is very important to identify the
motivational factors. . The most important motivational factors for IT employees were good
wages, promotion/growth, job security, interesting work, and appreciation of work.
4. There was significant positive correlation of job satisfaction with affective commitment and
normative commitment, and negative correlation with continuance commitment. This
indicates that higher the level of job satisfaction greater the level of affective commitment and
normative commitment. If employees are staying back with the organization because of the
cost of leaving the organisation or it’s too much trouble to go somewhere else then there will
be less satisfaction.
5. Amongst the items comprising the scale for job satisfaction, the items with highest
correlation with affective commitment were related to the salary, benefits, fair treatment,
opportunity for advancement, and supervision. The items with moderate correlation were
appreciation (from management),interest (from intrinsic aspects of job),job security and
intrinsic aspects of job(excluding ease).The job satisfaction items with lowest correlation
were working conditions(excluding hours),social aspects of job, and communication. So it
clearly indicates the importance of salary, benefit, fair treatment, opportunity for advancement
and a good supervision in increasing the positive emotional attachment to the organisation.
6. Regression analysis revealed that job satisfaction had a significant impact on
Organizational commitment. Job satisfaction was found to have a significant positive impact
on affective commitment, explaining 67.0% of the variation in affective commitment. Thus,
when job satisfaction increases, affective commitment would tend to increase with it. Job
satisfaction was not found to have a significant impact on continuance commitment,
explaining only 1.2% of the variation in continuance commitment. Thus, when job
satisfaction increases, continuance commitment would be expected to slightly decrease with
it. Job satisfaction was found to have a significant positive impact on normative commitment,
explaining 35.1% of the variation in normative commitment. Thus, when job satisfaction
increases, normative commitment would tend to increase with it, but less so than affective
commitment.
It is the interest of all organization to secure commitment and reduce employee turnover. So
this topic has attracted the interest of many researchers. This study confirms the relationship
between job satisfaction and organizational commitment. So managers need to make effort to
develop human resource policies that are in alignment to the needs and motivation of the
employees. The findings of this study have pointed out some salient issues in the IT field. It is
imperative for IT company management to meet the demands of their personnel to strengthen
their motivation, satisfaction, and commitment to minimize turnover.
TABLE OF CONTENTS
DISSERTATION APPROVAL
DECLARATION
CERTIFICATE
ACKNOWLEDGEMENT
ABSTRACT
TABLE OF CONTENTS
LIST OF TABLES
CONTENTS PAGE NUMBER
CHAPTER 1-INTRODUCTION1.1 Information Technology Industry 1.2 Indian Information Technology Industry1.3 Organizational Commitment1.4 Affective Commitment 1.5 Continuance commitment1.6 Normative Commitment1.7 Benefit of Organizational Commitment1.8 Job Satisfaction1.9 The causes of Job Satisfaction1.10 Theoretical Framework1.11 History and Back ground of the study1.12 Theories of Job satisfaction1.13 Determinants of Job satisfaction1.14 Outcomes of Job satisfaction
1.15 Motivation1.16 Intrinsic and Extrinsic motivation1.17 The role of motivation1.18Theories of motivation1.19 Scope and area of study1.20 Resume of succeeding chapters
CHAPTER 11-REVIEW OF LITERATURE 2.1 Introduction 2.2 Studies on Job satisfaction, Organizational Commitment and Motivation 2.3 OverviewCHAPTER 111- RESEARCH METHODOLOGY
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3.1 Introduction 3.2 Statement of the Problem 3.3 Operational Definitions 3.4 Variables under Investigation 3.5 Objectives of the study 3.6 Hypotheses 3.7 Setting 3.8 Population 3.9 Sample of the study 3.10 Profile of the respondents 3.11 The Instruments 3.12 Data Collection 3.13 Analysis 3.14 Conclusion
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CHAPTER 1V-STATISTICAL ANALYSIS AND INTERPRETATION 4.1 Introduction 4.2 Characteristics and distribution of sample 4.3 Demographic Profile of respondents 4.4 Descriptive Statistics 4.5 ANOVA- Organizational commitment 4.6 ANOVA-Job satisfaction 4.7 ANOVA-Motivation 4.8 Correlation Analysis 4.9 Regression AnalysisCHAPTER V-SUMMARY AND CONCLUSION 5.1 Introduction 5.2 Need for the study 5.3 Statement of the problem 5.4 Objectives of the study 5.5 Variables under investigation 5.6 Hypotheses 5.7 Population 5.8 Sample of the study 5.9 The instruments 5.10 Analysis 5.11 Major findings of the study 5.12 Implications of the study 5.13 Limitation of the study 5.14 Suggestions for further research 5.15 Conclusion
BIBLIOGRAPHYAPPENDIX-PROFORMA
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86-9091-96
LIST OF TABLES
Table 3.1 showing the distribution of sample according to the age level of
employees
Table 3.2 indicating the frequency and percentage of gender distribution of
respondents
Table 3.3 indicating the frequency and percentage of qualification of
respondents
Table 3.4 indicating the marital status of respondents
Table 3.5 indicating frequency and percentage of experience of respondents in
the current company
Table 3.6 indicating frequency and percentage of total experience of
respondents
Table 3.7 indicating reliability analysis of the Job satisfaction questionnaire
Table 3.8 indicating reliability analysis of the organizational commitment
questionnaire
Table 3.9 indicating reliability analysis of ranking of the motivational factors
Table 4.1 indicating the frequency and percentage of gender distribution of
respondents
Table 4.2 showing the distribution of the sample according to the age level of
employees
Table 4.3 indicating the frequency and percentage of qualification of
respondents
Table 4.4 indicating the marital status of respondents
Table 4.5 indicating frequency and percentage of experience of respondents in
the current company
Table 4.6 indicating frequency and percentage of total experience of
respondents
Table 4.7 indicating the frequency and percentage of size of the organization
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Table 4.8 indicating frequency and percentage of different managerial levels
Table 4.9 indicating the mean and standard deviation for Affective
commitment
Table 4.10 indicating the mean and standard deviation for Continuance
commitment
Table 4.11 indicating the mean and standard deviation for Normative
commitment
Table 4.12 indicating the mean and standard deviation for Organizational
commitment
Table 4.13 indicating the mean and standard deviation for Job satisfaction
Table 4.14 indicating the mean and standard deviation for overall Job
satisfaction
Table 4.15 indicating Friedman’s mean rank test for motivational factors of
IT employees
Table 4.16 indicating ANOVA for Organizational commitment and gender
Table 4.17 indicating ANOVA for Organizational commitment and Age
Table 4.18 indicating ANOVA for Organizational commitment and
Qualification
Table 4.19 indicating ANOVA for Organizational commitment and Marital
Status
Table 4.20 indicating ANOVA for Organizational commitment and Years in
present Position
Table 4.21 indicating ANOVA for Organizational commitment and Overall
work experience
Table 4.22 indicating ANOVA for Organizational commitment and Management
level
Table 4.23 indicating ANOVA for Job satisfaction and gender
Table 4.24 indicating ANOVA for Job satisfaction and Age
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Table 4.25 indicating ANOVA for Job satisfaction and Qualification
Table 4.26 indicating ANOVA for Job satisfaction and Marital Status
Table 4.27 indicating ANOVA for Job satisfaction and Years in Present position
Table 4.28 indicating ANOVA for Job satisfaction and Overall work experience
Table 4.29 indicating ANOVA for Job satisfaction and Management level
Table 4.30 indicating Motivation and Gender Mean
Table 4.31 indicating Mean for Motivation and Age
Table 4.32 indicating Mean for Motivation and Qualification
Table 4.33 indicating Mean for Motivation and Marital Status
Table 4.34 indicating Mean for Motivation and Years in present Position
Table 4.35 indicating Mean for Motivation and overall work experience
Table 4.36 indicating Mean for Motivation and Management level
Table 4.37 indicating Pearson correlation between Job satisfaction and
Organizational commitment
Table 4.38 indicating Pearson correlation between 15 items in Job satisfaction
and Affective commitment
Table 4.39 indicating regression of Affective commitment on Job satisfaction
Table 4.40 indicating regression of Normative commitment on Job satisfaction
Table 4.41 indicating regression of Continuance commitment on Job satisfaction
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CHAPTER 1
INTRODUCTION
CHAPTER 1
INTRODUCTION
In today’s competitive world, the biggest challenge which the organizations are facing is to
retain talented employees. Job satisfaction is necessary to promote functional employee
behaviours in the organization. For the organization, job satisfaction of its workers means a
work force that is motivated and committed to high quality performance. Job Satisfaction can
be an important indicator of how employees feel about their jobs and a predictor of work
behaviours such as organizational citizenship, absenteeism, and turnover. Further, job
satisfaction can partially mediate the relationship of personality variables and deviant work
behaviours. One common research finding is that job satisfaction is correlated with life
satisfaction.
Securing Commitment and retaining good employees are very important to achieve stability
and reduce costly turn over. Various outcomes are influenced by organizational commitment
such as decreased turn over, higher motivation and organizational support. An employee who
is affectively committed strongly identifies with the goals of the organization and desires to
remain a part of the organization. This employee commits to the organization because he/she
"wants to". Organizational commitment is recognized as a key factor in the employment
relationship. Similarly, it also is widely accepted that one way to reduce voluntary turnover is
by strengthening employee commitment to the firm.
So it is crucial to identify the level of job satisfaction, motivating factors and its influence on
organizational commitment to retain talented work force in software industry.
1.1INFORMATION TECHNOLOGY INDUSTRY
The word "software" had been coined as a prank by at least 1953, but did not appear in print
until the 1960s. Before this time, computers were programmed either by customers, or the few
commercial computer vendors of the time, such as UNIVAC and IBM. The first company
founded to provide software products and services was Computer Usage Company in 1955.
The software industry began in the late 1950s when the use of computers for business
applications expanded rapidly creating a huge demand for people with programming
experience. A number of people who had learned their programming skills working for
computer manufacturers or for the large companies and government agencies that were the
first computer users saw this as an opportunity to start their own companies and sell their
services under contract.
The first such company, Computer Usage Corporation (CUC), was founded in 1955 by Elmer
Kubie and John W. Sheldon, two former IBM employees. The company was founded with
$40,000 in start-up capital which supported a staff of five in addition to the two founders. Its
In terms of age, 38.7% of the respondents were below 30 years of age, 38.0% of the respondents were in the age group 30 - 40 years, and 23.3% of the respondents were in the age group 40 - 50 years.
Table 4.3 indicating the frequency and percentage of qualification of respondents
There was difference between IT professionals based on overall work experience in the
importance of different motivational factors. Job security was less important than interesting
work and appreciation of work for IT professionals with twenty or more years of overall work
experience.
Table 4.36 indicating Mean for Motivation and Management level
Mean
4.44 3.90 3.85 4.16
4.57 4.23 4.56 4.49
9.24 9.26 9.32 9.27
3.40 3.38 3.67 3.47
1.38 1.86 1.53 1.53
1.95 2.48 1.71 2.01
5.54 5.35 5.86 5.58
7.71 8.26 7.35 7.74
9.41 8.87 9.47 9.30
7.34 7.28 7.67 7.41
MF1. Interesting work
MF2. Appreciation of work
MF3. Feeling "in on things"
MF4. Job security
MF5. Good wages
MF6. Promotion/growth
MF7. Good working conditions
MF8. Personal loyalty
MF9. Tactful discipline
MF10. Sympathetic help with problems
entry level middle level senior level Total
Management Level
There was no difference between IT professionals at different levels of management in the
importance of different motivational factors.
4.8 CORRELATION ANALYSIS
HYPOTHESIS
H1: The higher the level of job satisfaction, the greater the level of Affective commitment.
Table 4.37 indicating Pearson correlation between Job satisfaction and Organizational commitment
Correlations
1 -.034 .531**
.278 .000
-.034 1 -.073
.278 .102
.531** -.073 1
.000 .102
Pearson Correlation
Sig. (1-tailed)
Pearson Correlation
Sig. (1-tailed)
Pearson Correlation
Sig. (1-tailed)
AFFECTIVE COMMITMENT
CONTINUANCE COMMITMENT
NORMATIVE COMMITMENT
AFFECTIVECOMMITMENT
CONTINUANCECOMMITMENT
NORMATIVECOMMITMENT
Correlation is significant at the 0.01 level (1-tailed).**.
There was significant positive correlation of job satisfaction with affective commitment and
normative commitment, and negative correlation with continuance commitment.
Table 4.38 indicating Pearson correlation between 15 items in Job satisfaction and Affective commitment
Correlations
.389
.000
.409
.000
.604
.000
.496
.000
.316
.000
.328
.000
.855
.000
.558
.000
.295
.000
.258
.000
.299
.000
.348
.000
-.008
.446
.787
.000
.700
.000
Pearson Correlation
Sig. (1-tailed)
Pearson Correlation
Sig. (1-tailed)
Pearson Correlation
Sig. (1-tailed)
Pearson Correlation
Sig. (1-tailed)
Pearson Correlation
Sig. (1-tailed)
Pearson Correlation
Sig. (1-tailed)
Pearson Correlation
Sig. (1-tailed)
Pearson Correlation
Sig. (1-tailed)
Pearson Correlation
Sig. (1-tailed)
Pearson Correlation
Sig. (1-tailed)
Pearson Correlation
Sig. (1-tailed)
Pearson Correlation
Sig. (1-tailed)
Pearson Correlation
Sig. (1-tailed)
Pearson Correlation
Sig. (1-tailed)
Pearson Correlation
Sig. (1-tailed)
JS1. Job Security
JS2. Interest (from intrinsic aspects of job)
JS3. Opportunity for advancement
JS4. Appreciation (from management)
JS5. Company policy and management practices
JS6. Intrinsic aspects of job (excluding ease)
JS7. Salary
JS8. Supervision
JS9. Social aspects of job
JS10. Working conditions (excluding hours)
JS11. Communication
JS12. Hours (from working conditions)
JS13. Ease (from intrinsic aspects of job)
JS14. Benefits
JS15. Fair treatment
AFFECTIVECOMMITMENT
Amongst the items comprising the scale for job satisfaction, the items with highest correlation
with affective commitment were related to the salary, benefits, fair treatment, opportunity for
advancement, and supervision. The items with moderate correlation were appreciation (from
management),interest (from intrinsic aspects of job),job security and intrinsic aspects of
job(excluding ease).The job satisfaction items with lowest correlation were working
conditions(excluding hours),social aspects of job, and communication.
4.9 REGRESSION ANALYSIS
Regression of Affective Commitment on Job Satisfaction:
Model Summary
.819a .670 .669 .72663Model1
R R SquareAdjustedR Square
Std. Error ofthe Estimate
Predictors: (Constant), JOB SATISFACTIONa.
ANOVAb
319.878 1 319.878 605.842 .000a
157.341 298 .528
477.219 299
Regression
Residual
Total
Model1
Sum ofSquares df Mean Square F Sig.
Predictors: (Constant), JOB SATISFACTIONa.
Dependent Variable: AFFECTIVE COMMITMENTb.
Table 4.39 indicating regression of Affective commitment on Job satisfaction
Coefficientsa
-2.281 .249 -9.175 .000
1.328 .054 .819 24.614 .000
(Constant)
JOB SATISFACTION
Model1
B Std. Error
UnstandardizedCoefficients
Beta
StandardizedCoefficients
t Sig.
Dependent Variable: AFFECTIVE COMMITMENTa.
Job satisfaction was found to have a significant positive impact on affective commitment,
explaining 67.0% of the variation in affective commitment. Thus, when job satisfaction
increases, affective commitment would tend to increase with it.
Regression of Normative Commitment on Job Satisfaction:
Model Summary
.595a .354 .351 .41866Model1
R R SquareAdjustedR Square
Std. Error ofthe Estimate
Predictors: (Constant), JOB SATISFACTIONa.
ANOVAb
28.570 1 28.570 163.003 .000a
52.232 298 .175
80.802 299
Regression
Residual
Total
Model1
Sum ofSquares df Mean Square F Sig.
Predictors: (Constant), JOB SATISFACTIONa.
Dependent Variable: NORMATIVE COMMITMENTb.
Table 4.40 indicating regression of Normative commitment on Job satisfaction
Coefficientsa
1.615 .143 11.272 .000
.397 .031 .595 12.767 .000
(Constant)
JOB SATISFACTION
Model1
B Std. Error
UnstandardizedCoefficients
Beta
StandardizedCoefficients
t Sig.
Dependent Variable: NORMATIVE COMMITMENTa.
Job satisfaction was found to have a significant positive impact on normative commitment,
explaining 35.1% of the variation in normative commitment. Thus, when job satisfaction
increases, normative commitment would tend to increase with it, but less so than affective
commitment.
Regression of Continuance Commitment on Job Satisfaction:
Model Summary
.108a .012 .008 .66669Model1
R R SquareAdjustedR Square
Std. Error ofthe Estimate
Predictors: (Constant), JOB SATISFACTIONa.
ANOVAb
1.554 1 1.554 3.497 .062a
132.453 298 .444
134.007 299
Regression
Residual
Total
Model1
Sum ofSquares df Mean Square F Sig.
Predictors: (Constant), JOB SATISFACTIONa.
Dependent Variable: CONTINUANCE COMMITMENTb.
Table 4.41 indicating regression of Continuance commitment on Job satisfaction
Coefficientsa
4.426 .228 19.401 .000
-.093 .050 -.108 -1.870 .062
(Constant)
JOB SATISFACTION
Model1
B Std. Error
UnstandardizedCoefficients
Beta
StandardizedCoefficients
t Sig.
Dependent Variable: CONTINUANCE COMMITMENTa.
Job satisfaction was not found to have a significant impact on continuance commitment,
explaining only 1.2% of the variation in continuance commitment. Thus, when job
satisfaction increases, continuance commitment would be expected to slightly decrease with
it.
In the present chapter the data has been analysed and interpreted. The following chapter will
cover the summary, findings, implications and limitations of the study.
CHAPTER V
SUMMARY AND CONCLUSION
CHAPTER V
SUMMARY AND CONCLUSION
5.1 INTRODUCTION
The current study focussed to provide both theoretical and practical contribution to the
existing literature by examining the relationship between job satisfaction and organisational
commitment of technical employees in Bangalore and to suggest some managerial
implications. This chapter is on summary and conclusion .It covers the need for the study,
statement of the problem, scope of the study, operational definitions, variables of the study,
sampling technique, tools of the study, statistical techniques used, major findings,
implications and limitation of the study.
5.2 NEED FOR THE STUDY
The integral part of any management process is to manage the people at work. A well
managed organisation sees worker as the root cause of quality and productivity .An effective
organisation will always promote a sense of commitment and satisfaction among its
employees. The significance and importance of the concept of organizational commitment in
terms of leading to beneficial organizational and desirable outcomes such as increased
effectiveness, reducing absenteeism and turnover, has been documented by many studies such
as those of Steers (1977); Porter et al. (1974); Reiches (1985) and Tett and Meyer (1993). In
order to make employees satisfied and committed to their jobs there is need for strong and
effective motivation at the various levels.
One way to address issue of employee turnover is to understand the job satisfaction and
commitment level of employees. A lot of studies are conducted separately on commitment,
satisfaction and motivation but very few studies are there on IT sector linking these three .So
it is crucial to conduct a study on job satisfaction and organizational commitment in
information technology industry and also to identify the important motivating factors to retain
the highly talented workforce.
5.3 STATEMENT OF THE PROBLEM
Organizational commitment and Job satisfaction -A study of employees in the Information
Technology industry in Bangalore, India.
5.4 OBJECTIVES OF THE STUDY
The main objectives set for the study are
1. To determine organizational commitment of software professionals using the revised
Organizational Commitment Scales (Meyer, Allen and Smith 1993)
2. To measure the job satisfaction level of software professionals.
3. Identify the relationship between level of job satisfaction and organizational
Commitment.
4. Examine whether the commitment and job satisfaction will differ according to the age
level of the employees.
5. Relative ranking of motivating factors using Kovach’s Ten Job-Related Factors.
5.5 VARIABLES UNDER INVESTIGATION
Dependent variable-The dependent variable is Organizational Commitment (Affective
commitment, Normative commitment and Continuance commitment)
Independent Variable- The independent variable in this study is job satisfaction.
Demographic Variables-Gender, Age, Experience, Education, Marital status and
management level.
5.6 HYPOTHESIS
The following hypothesis is developed from the objectives
H1:The higher the level of job satisfaction, the greater the level of Affective
Commitment.
H2: Job satisfaction and commitment will differ according to age of the Employees
The hypothesis is tested with different statistical techniques .Pearson’s Correlation analysis,
ANOVA, and Regression was used to analyse the collected information.
5.7 POPULATION
The population for the study was all technical employees in the Information technology
Industry in Bangalore city. There are around 1200 IT and ITES organizations operating in
India. In these are 250 are multinational companies. There are around 200 IT companies in
Bangalore and 160 of these companies have their technology related operations in Bangalore.
Research design -The design which is used in this study is descriptive.
5.8 SAMPLE OF THE STUDY
For the present study data was collected with the help of structured questionnaire from 300
employees working in software industry. The study is concentrated on Bangalore IT industry.
The researcher used non probabilistic sampling (purposive sampling) method as sampling
design. Samples were selected from 10 top IT multinational companies. Samples were drawn
from three levels of management including entry level, middle level and top level employees.
The pertinent information for the study is collected from both primary and secondary sources.
5.9 THE INSTRUMENTS
The independent variable in this study is job satisfaction. The overall Job satisfaction was
measured using the 15-item questionnaire developed by Prof.Harold Andrew Patrick in 2009,
designed to measure 15 aspects of job. Responses were collected with the help of 7 point
likert scale.
The dependant variable, organizational commitment was measured using the revised
Organizational Commitment Scales (Meyer, Allen and Smith 1993) that is, the Affective
Commitment Scale (ACS), the Continuance Commitment Scale (CCS) and the Normative
Commitment Scale (NCS) with 24 questions on 7-point Likert scales.
The Kovach ten job-related factors, developed by kovach, Kenneth. (1999) were used to
determine what motivates the employees in software industry. The respondents were asked to
indicate the degree of importance of the factors and relative ranking according to motivational
importance.
5.10 ANALYSIS
The following statistical techniques were used to analyze the data.
Descriptive statistics-Frequency, percentage, mean and standard deviation
The Pearson’s correlation coefficients were used to analyze the relationship between each of
the job satisfaction facets and organizational commitment.
ANOVA and Regression
Friedman test-Kovach’s ten job-related factors were ranked according to the order of
importance in motivating the employees. To analyse the data statistical package for social
sciences (SPSS) was used.
5.11 MAJOR FINDINGS OF THE STUDY
5.11.1Demographic Profile
Gender- For the current study there was larger percentage of male (61.3%) than female (38.7%).
Age- In terms of age, 38.7% of the respondents were below 30 years of age, 38.0% of the respondents were in the age group 30 - 40 years, and 23.3% of the respondents were in the age group 40 - 50 years.
Qualification- Most of the respondents had professional qualification (54.7%).Others were
graduate (17.3%) and post graduate (28%).
Marital Status- For the current study majority of the respondents were married (60.7%),
followed by single (39.3%).
Experience in the current organisation- In terms of experience in the current company most
of the respondents were working since 2-3 years(31.3%) followed by 1-2 year(21%),5-6
years(16%),4-5 years(12.7%),6 yrs and above(10.7%) and least being 3-4 yrs(8.3%).
Total experience- In terms of total work experience most of the respondents were in the 2-5
yrs(31.3%),followed by 2 years and below(19.7%),10-15yrs(17.7%),5-10yrs(17%),15-20yrs
(11.7%) and least being above 20 years (2.6%).
Size of the organization- In terms of size of the organization, all the respondents were from
organizations with one thousand or more employees.
Managerial level- In terms of management level, 50.7% of the respondents were at entry-level, 23.0% of the respondents were at middle-level, and 26.3% were at senior-level.
5.11.2 General Findings
1. The level of organizational commitment was moderate, with relatively higher variability in
affective commitment. Mean value was highest for Continuance commitment indicating
employees are staying back with the organization because of the cost of leaving the
organisation or it’s too much trouble to go somewhere else.
2. IT employees were showing only a moderate level of job satisfaction. Amongst the items
comprising the scale for job satisfaction, the items with highest satisfaction levels were
related to the social aspects of the job, working conditions (excluding working hours), interest
(from intrinsic aspects of the job), job security, communication, and ease of the job (as an
intrinsic aspect of the job). On the other hand, employees had lowest satisfaction levels for
working hours, supervision, appreciation from management, and salary. It shows that IT
employees are dissatisfied with the working hours, supervision, appreciation from
management and the salary they are getting.
3. To increase the Job satisfaction and commitment it is very important to identify the
motivational factors. . The most important motivational factors for IT employees were good
wages, promotion/growth, job security, interesting work, and appreciation of work.
5.11.2 HYPOTHESIS RELATED FINDINGS
1. There was significant positive correlation of job satisfaction with affective commitment and
normative commitment, and negative correlation with continuance commitment. This
indicates that higher the level of job satisfaction greater the level of affective commitment and
normative commitment. If employees are staying back with the organization because of the
cost of leaving the organisation or it’s too much trouble to go somewhere else then there will
be less satisfaction.
2. Amongst the items comprising the scale for job satisfaction, the items with highest
correlation with affective commitment were related to the salary, benefits, fair treatment,
opportunity for advancement, and supervision. The items with moderate correlation were
appreciation (from management),interest (from intrinsic aspects of job),job security and
intrinsic aspects of job(excluding ease).The job satisfaction items with lowest correlation
were working conditions(excluding hours),social aspects of job, and communication. So it
clearly indicates the importance of salary, benefit, fair treatment, opportunity for advancement
and a good supervision in increasing the positive emotional attachment to the organisation.
3. Regression analysis revealed that job satisfaction had a significant impact on
Organizational commitment. Job satisfaction was found to have a significant positive impact
on affective commitment, explaining 67.0% of the variation in affective commitment. Thus,
when job satisfaction increases, affective commitment would tend to increase with it. Job
satisfaction was not found to have a significant impact on continuance commitment,
explaining only 1.2% of the variation in continuance commitment. Thus, when job
satisfaction increases, continuance commitment would be expected to slightly decrease with
it. Job satisfaction was found to have a significant positive impact on normative commitment,
explaining 35.1% of the variation in normative commitment. Thus, when job satisfaction
increases, normative commitment would tend to increase with it, but less so than affective
commitment.
4. There was no significant difference in organizational commitment between men and
women IT professionals. So the gender doesn’t play any role.
5. There was significant difference in organizational commitment between age groups.
Organizational commitment was highest for IT professionals in the 40 - 50 yr. age group. In
particular, continuance commitment was lowest for IT professionals in the 30 - 40 yr age
group. Affective commitment was lowest for IT employees below 30 yrs and it was increasing
with the age. So it clearly indicates the importance of increasing affective commitment among
young employees as it can reduce turnover cost.
6. There was significant difference in continuance commitment between IT professionals with
different qualifications. Continuance commitment was lowest for those with professional
qualifications. There was no significant difference in affective commitment and in normative
commitment between qualifications.
7. There was significant difference in affective commitment and in normative commitment
between married and single IT professionals. Both affective commitment and normative
commitment were significantly lower for single IT professionals. There was no significant
difference in continuance commitment between married and single IT professionals.
8. There was significant difference in organizational commitment based on years in the
current position. Affective commitment increased with years in the current position.
Continuance commitment varied considerably with years in current position, and was lowest
for IT professionals in their present position for six years or more. Normative commitment
also varied considerably with years in current position, and was low for IT professionals in
their present position for six years or more.
9. There was significant difference in organizational commitment based on overall work
experience. Affective commitment generally increased with overall work experience.
Continuance commitment varied considerably with overall work experience, and was lowest
for IT professionals with overall work experience of 5 -10 yrs. and 10 - 15 yrs. Normative
commitment generally increased with overall work experience.
10. There was significant difference in organizational commitment based on management
level. Affective commitment was highest for senior-level IT professionals. Continuance
commitment was highest for senior-level, and lowest for middle-level IT professionals.
Normative commitment was highest for middle- and senior-level IT professionals.
11. There was no significant difference in job satisfaction between men and women IT
professionals.
12. There was significant difference in job satisfaction between IT professionals in different
age groups. Job satisfaction generally increased with age of IT employees. The logic will be
as workers grow older, alternative employment opportunities become limited, making their
current jobs more attractive.
13. There was no significant difference in job satisfaction between IT professionals based on
qualifications.
14. There was significant difference in job satisfaction between married and single IT
professionals. Married IT professionals were generally more satisfied than single IT
professionals.
15. There was significant difference in job satisfaction between IT professionals based on
years in the current position. Job satisfaction generally increased with years in current
position and experience.
16. There was significant difference in job satisfaction between IT professionals at different
levels of management. Job satisfaction was lower at entry-level than at middle- and senior-
level of management.
17. There was no difference between men and women IT professionals in the importance of
different motivational factors.
18. There was no difference between IT professionals in different age groups in the
importance of different motivational factors.
19. There was no difference between IT professionals with different qualifications in the
importance of different motivational factors.
20. There was no difference between married and single IT professionals in the importance of
different motivational factors.
21. There was difference between IT professionals based on years in the current position in
the importance of different motivational factors. Promotion/growth was more important than
salary for IT professionals in their present position for six years or more.
22. There was difference between IT professionals based on overall work experience in the
importance of different motivational factors. Job security was less important than interesting
work and appreciation of work for IT professionals with twenty or more years of overall work
experience.
23. There was no difference between IT professionals at different levels of management in the
importance of different motivational factors.
5.12 IMPLICATIONS
1. The study revealed that there is only moderate level of Job satisfaction and Organizational
commitment for IT employees. From the review of literature it is clear that IT employees
seem to be quicker to change jobs than other employees when they are dissatisfied with their
current employer (Hacker, 2003).So it cites the importance of improving their job satisfaction
and commitment.
2. Another important finding of the study is amongst the items comprising the scale for job
satisfaction; IT employees are dissatisfied with the working hours, supervision, appreciation
from management and the salary they are getting. So the IT companies should pay more
attention in improving working hours, good supervision, and appreciation for the work they
are doing. IT mncs should pay more attention to the salary of the employees as it has highest
correlation with affective commitment. It can reduce the employee turnover and the cost
associated with it. It is possible that when employees judge the organization to be providing
good supervision, positive feelings of well being will be created. This is likely to stimulate
them to reciprocate by increasing their sense of obligation to the organization and the belief
that staying is the ‘right thing’ to do to the organization.
3. For any organization the most important challenge is to retain the talented work
force.Inorder to retain the talented work force it is very important to identify what motivates
them. The study revealed that the most important motivational factors for IT employees were
good wages, promotion/growth, job security, interesting work, and appreciation of work. The
findings of this study provide valuable insights for the management to create a motivated and
committed workforce.
4. There was significant positive correlation of job satisfaction with affective commitment
and normative commitment, and negative correlation with continuance commitment. An
employee who is affectively committed strongly identifies with the goals of the organization
and desires to remain a part of the organization. This employee commits to the organization
because he/she "wants to”. As there is high correlation between job satisfaction and affective
commitment organization should concentrate on developing affective commitment-oriented
organization policies.
5. For the organization, job satisfaction of its workers means a work force that is motivated
and committed to high quality performance. Amongst the items comprising the scale for job
satisfaction, the items with highest correlation with affective commitment were related to the
salary, benefits, fair treatment, opportunity for advancement, and supervision. This means that
if an IT organization can give importance to these factors it can reduce employee turnover and
can increase affective commitment of its employees.
6. There was significant difference in organizational commitment between age groups.
Affective commitment was lowest for IT employees below 30 yrs and it was increasing with
the age. The commitment of younger workers is likely to be more affected by disappointment
with pay and promotion opportunities than the commitment of older employees who have
achieved their advancement and income potential compared to younger employees who often
make job choices on the basis of income and career potential. Older employees, on the other
hand, have higher needs for affiliation and lower needs for achievement. So to increase the
affective commitment of younger employees organisation should pay more attention towards
their salary and opportunity for advancement.
7. There was difference between IT professionals based on years in the current position in the
importance of different motivational factors. Promotion/growth was more important than
salary for IT professionals in their present position for six years or more. So when we plan the
HRD variables it should be according to their experience level. Achievement needs will be
higher for less experienced and affiliation needs will be motivating factor for experienced
employees. So the HR policies should be planned based on employee need.
5.13 LIMITATIONS OF THE STUDY
The study has the following limitations
• Time limit of the researcher is one major limitation
• The survey is subjected to the bias and prejudices of the respondents. Hence 100%
accuracy can’t be assured.
• The research is confined to Bangalore city only, so the result might be indicative not
conclusive
• The findings of the research are based on what the respondent have stated as true
• As the study is planning to conduct on software professionals in Bangalore city, so the
same result may not hold true for other areas.
5.14 SUGGESTIONS FOR FURTHER RESEARCH
1. A study on the relationship between human resources management practises and
organizational commitment of IT employees.
2. A study on the relationship between job satisfaction, organisational commitment and
turnover intention among IT professionals can be undertaken.
3. A study can be conducted to find out the antecedents of organizational commitment and Job
satisfaction among Indian IT employees.
5.15 CONCLUSION
A major challenge faced by all IT organization is, developing and maintaining Organizational
commitment and Job satisfaction. It is the interest of all organization to secure commitment
and reduce employee turnover. So this topic has attracted the interest of many researchers.
This study confirms the relationship between job satisfaction and organizational commitment.
So managers need to make effort to develop human resource policies that are in alignment to
the needs and motivation of the employees. The findings of this study have pointed out some
salient issues in the IT field. It is imperative for IT company management to meet the
demands of their personnel to strengthen their motivation, satisfaction, and commitment to
minimize turnover.
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3. Marital Status: Married Single Others 4. Position/Designation: (Specify)
………………………………………………………………..
5. How long have you been in this position: < 1 Year 1-2 Years 2-3Years
3-4 Years 4-5 Years 5 Years and Above
6. Work Experience: 2years and below 2-5yrs 5-10yrs 10-15 yrs
15-20yrs above 20 yrs
7. Size of the Organization: Less than 500 employees 500-1000 Employees
More than 1000 Employees
Instructions: Kindly read the items carefully and Tick in the appropriate box. Please
do not omit any item.
Kindly tick in the appropriate Box
Strongly Disagree
Disagree
Slightly Disagree
Undecided
Slightly Agree
Agree
Strongly Agree
1
2
3
4
5
6
7
1 I would be very happy to spend the rest of my career with this organization
2 I enjoy discussing my organization with people outside it
3 I really feel as if this organizations problems are my
own
4 I do not think I could become as attached to another organization as I am to this one
5 I feel like part of the family at my organization
6 I feel emotionally attached to this organization
7 This organization has a great deal of personal meaning for me
8 I feel a strong sense of belonging to my organization
9 It would be hard for me to leave my organization right now, even if I wanted to
10
My life would be disrupted if I decided I wanted to leave my organization now
11 I am afraid of what might happen if I quit my job without having another one lined up
12
It would be costly for me to leave my organization now
13
Right now staying with my organization is a matter of necessity as much as desire
14
I feel that I have few options to consider leaving this organization
15
One of the serious consequences of leaving this organization would be scarcity of available alternatives
16
One of the major reasons I continue to work for this organization is that leaving would require personal sacrifice-another organization may not match the overall benefits I have here
17
I think that people these days move from organization to organization too often
18
I believe that a person must always be loyal to his/her organization
19
Jumping from organization to organization seems unethical to me
20
I believe that loyalty is important and therefore I feel a strong sense of moral obligation
21
If I got another offer for a better job elsewhere I would not feel it was right to leave my organization
22
I was taught to believe in the value of remaining loyal to one organization
23
Things were better in the days when people stayed with one organization for most of their careers
24
I think that wanting to be a company man or company woman is sensible
INSTRUCTIONS: The following is a list of job, work and organization related items. Kindly indicate your level of satisfaction with the items on a ‘7-point’ scale as shown below. 1 indicating highly dissatisfied and 7 indicating highly satisfied. Be HONEST and CANDID in your response and do not omit any item.
Highly Dissatisfied
Employees' Ranking
11. Job Security2. Interest (from intrinsic aspects of job)3. Opportunity for advancement4. Appreciation (from management)5. Company policy and management practices6. Intrinsic aspects of job (excluding ease)7. Salary8. Supervision9. Social aspects of job10.Working conditions (excluding hours)11.Communication12.Hours (from working conditions)13.Ease (from intrinsic aspects of job)14.Benefits15.Fair treatment
Instructions: Kindly read the items carefully and rank
the items, regarding your view about motivating
factors. Please do not omit any item. Please indicate
the extent of your motivational importance by selecting
a number from 1 to 10. 1 indicates highest ranking and
10 indicates least motivating factor. Do not repeat the