Dissertation Project - QWL Alliance Business School Page 1 Executive Summary: IT/ITES industry is one of the most dynamic industries in terms of the work environment as well as the diversity of workforce employed both in terms of demographics as well as talent. Hence, the quality of work life becomes very crucial in such organizations where work life has become the most important part of human lives with the increasing level of stress and decreasing level of job satisfaction. Also the rising number of two-income households is heightening the concern for employees’ quality of work life. Given that female participation at work is increasing, it is apparent that males and females independently will need to take care of both work and home. Therefore, quality of work experience rather than work per se became the focus of attention and workplace wellness is crucial in promoting healthier working environments. The purpose of choosing the topic is to understand how the quality of work life can affect the productivity of employees as well as their decision to stay with the organization. Thus, the main objective of the research is to determine the extent to which the quality of work life influences the level of employee engagement and also study its effect on employee retention. The quality of work life is defined using four dimensions namely Health and well being, Job security, Skills and competency development and Work life balance. The findings of the survey carried out on a sample of 100 IT/ITES professionals revealed that the most crucial dimensions of quality of work life are Skills and competency development and work life balance. Also a positive correlation has been found between quality of work life and employee engagement and also with employee retention. Apart from this, workplace stress has also come up as an area of concern for the professionals. The suggestions that have been provided on the basis of findings mainly included providing health and wellness programs, stress management programs and introducing flexible working options. Also emphasis has been laid on designing program that should improve the other aspects of work life such as enhancing the skill set of the workforce according to their requirements as well as introducing compensation and benefits based on equity. Hence the study helps in providing a platform for the organizations to initiate the design of work systems that enhance the working life experiences of organizational members, thereby improving commitment and motivation for achieving organizational goals.
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Dissertation Project - QWL
Alliance Business School Page 1
Executive Summary:
IT/ITES industry is one of the most dynamic industries in terms of the work
environment as well as the diversity of workforce employed both in terms of demographics
as well as talent. Hence, the quality of work life becomes very crucial in such organizations
where work life has become the most important part of human lives with the increasing level
of stress and decreasing level of job satisfaction. Also the rising number of two-income
households is heightening the concern for employees’ quality of work life. Given that female
participation at work is increasing, it is apparent that males and females independently will
need to take care of both work and home. Therefore, quality of work experience rather than
work per se became the focus of attention and workplace wellness is crucial in promoting
healthier working environments.
The purpose of choosing the topic is to understand how the quality of work life
can affect the productivity of employees as well as their decision to stay with the
organization. Thus, the main objective of the research is to determine the extent to which the
quality of work life influences the level of employee engagement and also study its effect on
employee retention. The quality of work life is defined using four dimensions namely Health
and well being, Job security, Skills and competency development and Work life balance.
The findings of the survey carried out on a sample of 100 IT/ITES professionals
revealed that the most crucial dimensions of quality of work life are Skills and competency
development and work life balance. Also a positive correlation has been found between
quality of work life and employee engagement and also with employee retention. Apart from
this, workplace stress has also come up as an area of concern for the professionals. The
suggestions that have been provided on the basis of findings mainly included providing
health and wellness programs, stress management programs and introducing flexible
working options. Also emphasis has been laid on designing program that should improve the
other aspects of work life such as enhancing the skill set of the workforce according to their
requirements as well as introducing compensation and benefits based on equity.
Hence the study helps in providing a platform for the organizations to initiate the
design of work systems that enhance the working life experiences of organizational
members, thereby improving commitment and motivation for achieving organizational goals.
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Chapter 1.
INTRODUCTION
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1. INTRODUCTION
In today's high tech, fast-paced world, the work environment is very different than it
was a generation ago. According to the Institute of Industrial Engineers, the world’s largest
professional society dedicated solely to the support of the industrial engineering profession
and individuals involved with improving quality and productivity, it is not uncommon for a
person to change careers an average of six times in his or her lifetime. It is now rare for a
person to stay with a single company his or her entire working life. Because employees are
often willing to leave a company for better opportunities, companies need to find ways not
only to hire qualified people, but also to retain them.
Unfortunately, many employees these days feel they are working harder, faster, and
longer hours than ever before. Job-related employee stress can lead to lack of commitment to
the corporation, poor productivity, and even leaving the company; all of which are of serious
concern to management. Many employees bring work home with them on a regular basis,
especially now that it is so easy for them to do that. With the wide availability of cell phones,
pagers, personal digital assistants (PDAs), and computers, employees find it harder to get
away from the office.
One of the more stressful professions today is in the Information Technology (IT)
field. Not long ago, IT professionals were extremely well respected and in demand. As
technology advanced rapidly, there was a high demand for programmers and engineers.
Most had their choice of high-paying jobs as technology companies competed to recruit the
best of them.
The recent recession has resulted in the companies acknowledging morale problems
among their IT staffs. Perhaps this is because the information technology sector experienced
widespread layoffs during this period. In general, when layoffs happen the remaining
employees are forced to pick up the workload of those who were laid off. This leads to added
responsibility and longer work hours, often without additional compensation. This in turn
leads to stress, burnout, and resentment. Other causes of employee dissatisfaction include
low wages, lack of challenges, insufficient resources, unrealistic expectations, pressure to
produce, willfully blind management, unreasonable policies and procedures, difficulty
balancing family and work, and increased health benefit costs.
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As employers try to address employee turnover and job satisfaction issues, they must
first determine what the issues are. Several companies have convened focus groups and
conducted employee-satisfaction surveys to find out how their employees feel and to
determine what they can do to make their employees happy.
Many researches have found that supportive work-life policies and practices, such as
flexible work arrangements, when available, employees exhibit more positive work
outcomes, such as job satisfaction, commitment to employer, and retention, as well as more
positive life outcomes, such as less interference between job and family life, less negative
spillover from job to home, greater life satisfaction, and better mental health.
In the search for improved productivity, manager and executives alike are discovering
the important contribution of Quality of Work Life (QWL). QWL entails the design of work
systems that enhance the working life experiences of organizational members, thereby
improving commitment and motivation for achieving organizational goals.
This dissertation project is aimed towards identifying those dimensions of Quality of
work life that are crucial and influences the engagement level of employees in an
organization as well as help in their retention, especially in the IT/ITES sector of India.
1.1 Who are the IT Professionals?
One of the fastest growing workforces in the present work environment is the group
of information technology (IT) professionals. Bureau of Labour Statistics (BLS) estimated
that 1.64 million new IT jobs would be created within the period of 2004 to 2016 (BLS 2007).
According to the bureau, one out of four new jobs will be IT related. IT professionals are
involved in acquisition, processing, storage of vocal, pictorial, textual and numerical
information which demand extensive use of IT skills. The nature of jobs enables the IT
professionals to work independently with multinational teams round the clock regardless of
their locations throughout the world (Evans and Wurster, 2000). This flexible work
arrangement creates new employment trends that make it possible for the sharing of work
around the time zone. On the other hand it allows the organizations to capitalize on skills and
the expertise of some highly competent workforce residing across the world to work
remotely with multiple superiors at lower costs (Industrial Relations Services, 2000; Merill,
2000). This shapes the organization to a smaller or lean structure. Such a working
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environment exposes the IT professionals to high task complexity that possibly leads them to
high strain, uncertainty, and lack of proper personal development opportunities as well as a
greater imbalance of work with non-work activities. Robbins (2001) argued that such work
scenarios will lead the IT professionals to experience poor QWL.
No doubt, all other occupations have a capacity to influence the work and non-work
life balance, but some occupations are potentially more influential than others. Bagnara,
Mariani and Parlangeli (2001) have reported that work within the high technology and
continuously facing uncertainty is potentially more stressful than others. Martinsons and
Cheung (2001) further argue that continuous changes in work related factors directly or
indirectly affected the IT professionals. Indeed these changes demand them to perform thus;
an effective measure to handle its consequences is the responsibility of the organizations.
Therefore, one of the ongoing concerns among the IT industries is to mitigate the effects of
changes in work environment on job satisfaction, work performance, reliability, health and
comfort. Understanding the constructs of QWL among the IT professionals is essential to
provide substantial strategies to counteract such surges (De Jonge et al., 2000; Andries et al.,
2002) especially in the technologically emerging societies.
1.2 QUALITY OF WORK LIFE (QWL) -
The term QWL refers to the favorableness or unfavourableness of a total job
environment for people. QWL programs are another way in which organisations
recognize their responsibility to develop jobs and working conditions that are excellent
for people as well as for economic health of the organisation.
As the work culture changes drastically in the recent years, the traditional concept of
work to fulfill humans’ basic needs are also facing out. The basic needs are continued to
diversify and change according to the evolution of the work system and standards of living of
a workforce. Thus a definition by Suttle (1977) on the QWL as the degree to which work are
able to satisfy important personal basic needs through their experience in the organization is
no longer relevant. Generally jobs in the contemporary work environment offer sufficient
rewards, benefits, recognition and control to employees over their actions. Although to some
extent contemporary workforce are compensated appropriately, their personal spending
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practices, lifestyles, leisure activities, individual value systems, health and so forth can affect
their levels of need.
The recent definition by Serey (2006) on QWL best meets the contemporary work
environment. The definition is related to meaningful and satisfying work. It includes (i) an
opportunity to exercise one’s talents and capacities, to face challenges and situations that
require independent initiative and self-direction; (ii) an activity thought to be worthwhile by
the individuals involved; (iii) an activity in which one understands the role the individual
plays in the achievement of some overall goals; and (iv) a sense of taking pride in what one is
doing and in doing it well. This issue of meaningful and satisfying work is often merged with
discussions of job satisfaction, and believed to be more favorable to QWL.
The definition of QWL indicates that it is a multi-dimensional construct, made up of a
number of interrelated factors that need careful consideration to conceptualize and measure. It
is associated with job satisfaction, job involvement, motivation, productivity, health, safety and
well-being, job security, competence development and balance between work and non work life
as is conceptualized by European Foundation for the Improvement of Living Conditions (2002).
1.3 Constructs of QWL
The selected constructs of QWL that we use in this research are derived from the
European Foundation for the Improvement of Living and Working Condition (EWON) (2002)
who have used the dimensions widely in their QWL studies. These factors are believed to be
appropriate and reliable in the context of Asia. The dimensions of QWL selected are health
and well-being, job security, skills & competence development and the balance between
work with non-work life. The following section discusses each of the constructs of QWL from
the perspectives of IT professionals.
1. Health & Well Being:
Health and well-being of QWL refer to physical and psychological aspects of an
individual in any working environment. Asakura and Fujigaki (1993) examined the direct
and indirect effect of computerization on workers health and well-being and found that
higher job demand leads to higher strain work environment; hence, it affects their health and
well being. An unstrained work environment ensures good health and psychological
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conditions which enable the employees to perform job and non-work related functions
without inhibitions. Thus, it leads to an unstressful work environment providing comfortable
work life.
There are many definitions of stress as it is deemed as a subjective phenomenon of
QWL. Carayon, Smith and Haims (2001) revealed that stress arises in the process of
interaction between a person and the work environment that threatens the individual’s
physical, psychological and physiological homeostasis. Physical illness and psychological
disorders increase when pressure at work increases. The nature of IT professions reflect a
similar situation that continuously demanding and monotonous work environment that
affects the brains resulting in exhaustion and decreasing in some of IT professionals’
cognitive abilities. Depression and anxiety are also another form of stress that contributes
towards the deterioration of health. IT related jobs have been associated with repetitive
strain as well as problems related to excessive exposure to video display terminals. Routine
work, badly designed instruments such as computers and furniture in ICT work environment
have significantly increased work related disorders.
Jobs in IT work environment have become a critical factor because they involve a new
set of stressors that are also physically demanding. Many researchers highlight technostress
concept when discussing stress that is related to IT (Bradley, 2001). Technostress includes
the pressure of mastering the IT revolution, the daily frustrations and sudden interruptions
of software bugs or system crashes, resulting in work intensification and workplace stress.
The symptoms of technostress are related to physical and psychological conditions such as
backache, uncertain tempers, ulcers, acne, insomnia, low morale and job-hopping. On the
other hand, resistance to learn and keep up with IT or rejection of the technology due to
individual ambivalence, reluctance or fear of IT also causes stress particularly among
seasoned IT professionals.
Although, the health and well-being of workforce has improved due to the
disappearance of harsh and hazardous work in the last century, workforce are again at risk
because of the nature of contemporary work especially in IT industries is psychologically
demanding. Therefore, job demands that cause strain can be detrimental to individual health,
thus leading to psychological distress and health complaints. Hence, IT workplace should
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focus on prevention strategies from poor health and wellbeing in order to provide a good
QWL.
2. Job security:
A dramatic change of workforce in contemporary work environment has revealed a
significant amount of organization change. Organization change such as downsizing,
rightsizing and outsourcing have adversely affected employees’ loyalty, morale, motivation
and perceived job security. Organization of Economic Cooperation and Development (OECD)
(1996) highlighted that job security is the most controversial issue in contemporary work
environment. Job security, the central aspect of QWL represents strength of the
organizations to provide permanent and stable employment regardless of the changes in
work environment. Hence, providing a sense of security is important especially in the work
environment where many facets of jobs can be outsourced.
The increase in industry wide unemployment and outsourcing trends have made it
evident that job security cannot be taken for granted. Jobs in IT industries such as computer
programming, software development, system analysis are highly paid but the chance to
extend the contract is uncertain. Therefore, it is observed that IT industry has practiced high
employment rate but low job security which has led to the intrinsic insecure work
environments that lead to poor QWL. The emergence of outsourcing and IT automation
concept also has significantly fuelled the sense of job insecurity among IT professionals. As a
conclusion, the unstable work nature and the way working culture are being diversified,
point to a considerable impact on the job security among the IT professionals.
3. Skills & Competency Development:
There was a strong consensus that IT professionals would need to continuously
enhance their skill sets in order to remain employable in the IT industry. Work associated
with greater task variety; task discretion and skill development opportunities foster the
competency development among the workforce. The nature of IT related jobs are expected to
stimulate growth in skills and knowledge. This is seen as an important aspect of competency
development that enhances QWL. Therefore competency development is operationalized as
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the nature of the job that provides opportunities and stimulates growth in skills and
knowledge either for career or organizational development.
Career development opportunity will provide essential training that will help the
individual employees to equip with the new skills to spearhead in their career. Most
contemporary organizations do not limit themselves to just training an employee for a job,
but they go beyond to furnish them with a support system that encourages workplace
learning. Empirical research portrays that IT profession is associated with higher skill levels,
greater employee responsibility and greater task complexity that lead to higher utilization of
individual capabilities. Hence, individuals in such work scenario, which use more advanced
technological infrastructures, are exposed to greater competency development (Wall,
Cordery and Clegg, 2002).
Learning opportunities and skill discretion have also proven to have a positive effect
on job satisfaction and reduced job stress that will lead to better QWL. The opportunity to
develop and the use of skills are associated with learning mechanisms. This applies
especially when the job requires employees to deploy cognitive skills. With respect to
learning, greater autonomy on job enhances the acquisition and utilization of knowledge
whilst greater participation is held to promote cognitive growth via increased knowledge
transfer among employees (Scully, Kirkpatrick and Locke 1995). Such a job environment
expands knowledge base, leads to a better understanding of how the job is related to other
organizational practices and a greater ability to solve problems. In such a situation,
employees gain the cognitive and behavioural repertoire to predict, control or cope with
uncertain demands thus reducing the likelihood of poor QWL. In contrast, high job demands
with inadequate control reduce the ability and opportunities to develop new skills and
knowledge and thus enforce negative attitudes and anxiety which deteriorate QWL.
Therefore, lack of career progression and professional’s development in such a working
environment may cause IT professionals to experience poor QWL. Thus, understanding the
constructs of QWL in terms of job environment that provides essential competencies for the IT
professionals to excel in their careers will ensure good QWL.
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4. Work life Balance
A major component of QWL, which is important for both the employees and the
employers, is the relationship between work and home life. In an increasing competitive
environment, it is difficult to separate home and work life. Employees today are more likely
to express a strong desire to have a harmonious balance among career, family life and leisure
activities. This has been suggested at the international level the need for national policies in
many countries. An ILO convention that was adopted in 1981, states that it is necessary for
organizations to help employees to balance their work and non-work demands (Lewis,
1997).
The advantage of being able to work anywhere and at anytime has blurred the
boundaries of work and leisure hours. Ironically, with IT revolution and intensified virtual
communications, workload and working hours among the workforce have increased. The
extended function of IT as a communication tool necessitates employees to distinguish
between significant and insignificant information. This could increase the intensity of work
because the information overload through e-mail consumes a considerable amount of time.
Therefore, IT professionals to some extent are required to work long hours; hence
compromising their personal time will lead to an imbalance between work with non-work
life.
The threat of imbalance in work and non-work life has implications not only on the
employees but also on organizations, governments and society. This relationship is bi-
directional because previous studies have indicated that less conducive environments in the
workplace have a greater impact on home life than vice versa. Another important factor that
creates an imbalance work condition was a commitment to the work activities. The IT work
environment is widely assumed to be a high-commitment workplace that forces the IT
professionals to sacrifice their personal leisure hours to meet their work demand. The
flexible scheduling of work hours which supposedly contribute to balance work and family
relationship, which may create a conflict. Such a work arrangement demands the IT
professionals to be committed with work whenever possible and hijack them from joining
non work related activities.
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Allen et al. (2000) emphasized that problems associated with family responsibilities
are additional sources that may diminish QWL among IT professionals. They additionally
assert that when an employee has higher work responsibility there will be more spillover of
negative work outcomes on family life. The demands of managing higher responsibility at
work and home are also a potential source of stress because it allows a spillover to family life
thus creating an imbalance working environment.
Traditional human resource policy practices that require the IT professionals to work
long hours at the expense of personal time are believed to generate poor work family
relationship. Working long hours consistently reflect poor health both physically and
psychologically. Most studies on hours of work and health re-affirm that consistent long
hours at work do reflect itself in employees’ ill health, both physical and psychological.
Competitive work pressures among IT professionals to boost productivity with
skeleton resources make it difficult to achieve a balanced work-life. The work pressures
affect the employee’s social environment, and if no corrective action taken, it may result in a
poor social life. The balance is important particularly among the IT professionals in order to
nurture and develop the sustainable human resource practices in the IT work environment.
Therefore, balance between work and non-work life is suggested as one of the measures of
QWL.
1.4 Employee Engagement
There has been a lot of coverage of employee engagement in the business media over
the past few years, but many of us are still wondering exactly what employee engagement
actually is and why it is such a hot topic. Although many regard the phrase as mere “buzz
words”, there is in fact a whole management philosophy underpinning it, and one which
many HR practitioners and organisation leaders are seeing as a solution to a whole range of
business challenges.
Simply put, employee engagement is about getting your workforce to “go the extra
mile” and deliver great service to your clients. This in turn drives customer advocacy and can
lead to a significant impact on the bottom line. And it is when we start looking at the bottom
line figures that suddenly top executives are starting to sit up and take notice.
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Engagement is not just about increasing turnover, however. Other advantages of
engaged workforces include better talent retention, lower turnover, reduced recruitment
and training costs, higher motivation, better life/work balance and a more productive,
positive and enjoyable work environment. Engagement also acts as a differentiator in a
competitive market, as clients will gravitate towards suppliers where high employee
engagement levels are in evidence. And the principles of engagement apply to all companies,
no matter what their size or market sector. By the same token, all companies can benefit
from the many and varied advantages improved engagement can offer.
1.5 The Construct – Employee Engagement
Kahn(1990) describes engagement as “the simultaneous employment and expression
of a person’s preferred self in task behaviours that promote connection to work and to
others, personal presence (physical, cognitive, emotional) and active, full role performances.”
Descriptions of positive affectivity such as: adaptive, energy and enthusiasm (Macey &
Brown, T. "Sweatshops of the 1990s: Employees Who "Survived" Downsizing Are
Working Harder and Longer These Days."Management Review,August 1996, 13–18.
Caproni, P.J. "Work/Life Balance: You Can't Get There from Here."Journal of Applied
Behavioral Science,March 1997, 46–56.
Caudron, S. "On the Contrary, Job Stress Is in the Job Design."Workforce,September
1998, 21.
Cole, J. "Building Heart and Soul: Increased Employer Concern for Employees."HR
Focus,September 1998, 9.
Herman, R.E., and J.L. Gioia. "Making Work Meaningful: Secrets of the Future-Focus
Corporation."Futurist,December 1998, 24.
Jackson, Lee Anna. "When the Love is Gone: How to Reignite Passion for the Job."Black
Enterprise,January 2005, 54
King, Julia. "Going Down Fast: Slashed Resources and Impossible Demands Have
Caused IT Morale to Disintegrate."Computerworld,8 November 2004, 51
Lau, R.S.M., and B.E. May. "A Win-Win Paradigm for Quality of Work Life and Business
Performance."Human Resource Development Quarterly9, no. 3 (1998): 211–226.
Manley, Will. "The Manley Arts: Labor, Work, and Happiness."Booklist,1 November
2002, 454
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APPENDIX: QuestionnaireDear Sir/Madam,
This questionnaire has been designed for educational purpose. The information provided by you will not be disclosed to anyone and will be kept strictly confidential. This will act as a tool to study the various HR policies and practices.
Please provide your honest feedback for effective analysis.
1. How long have you worked in your present job for your current employer? Less than 1 Year 1-5 years More than 5 years
2. Which of the following best describes your usual work schedule? Day shift Irregular shift/ on-call Night shift Rotational shift
3. I spend more hours than I would like at work. Yes No
Mark the following statements in a scale of [1-5], where 1 signifies ‘Strongly agree’; 2- ‘Agree’; 3- ‘Neutral’; 4-‘Disagree’ and 5-‘Strongly Disagree’, that applies to you themost.
4. I often find my work stressful.5. I understand how my role in the organization is related to my organization’s overall
goals, objectives and direction.6. I understand how my unit/department contributes to the success of the organization7. The safety and health conditions where I work are good 8. I worry about my job security.9. I often feel there are not enough people or staff to get all the work done.10. My post is likely to be made redundant in the near future.11. My income is likely to be unstable and uncertain.12. I am given a lot of freedom to decide how to do my own work.13. Chances of promotions are good and fair in my organization.14. I am given opportunities to develop my own special abilities relevant to my job. 15. I have the training opportunities I need to perform my job safely and competently. 16. I understand how my role in the organization is related to my organization’s overall
goals, objectives and direction.17. I understand how my unit/department contributes to the success of the organization.
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18. I would recommend my organization to a friend as a good place to work for.19. I am proud to tell others I work for my organization.20. I am personally motivated to help my organization be successful.21. I am willing to put in a great deal of effort beyond what is normally expected to help my
organization succeed.22. My compensation and benefits are good and fair. 23. In my job, I often take part with others in making decisions that affects me. 24. I get to do a number of different things on my job.25. Often the demands of my job interfere with my family/social life.
Please mark the option in the scale provided, that applies to you the most.
26. How easy would it be for you to find a job with another employer with approximately the same income and fringe benefits as you have now? 1. Very easy2. Somewhat easy3. Difficult4. Very difficult
27. Taking everything into consideration, how likely is it you will make a genuine effort to find a new job with another employer within the next year. 1. Very likely 2. Somewhat likely3. Likely 4. Not at all likely
28. All in all, how satisfied would you say you are with your work life? 1. Very satisfied2. Somewhat satisfied3. Neutral4. Not too satisfied 5. Not at all satisfied