Organizational Commitment

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Text of Organizational Commitment

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

DECLARATIONI 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

CERTIFICATEThis 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 DISSERTATIONThe 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.

Examiners: 1. _____________________________ _________________________

2.______________________________

_________________________

3.______________________________

_________________________

Chairman: ______________________________

(Seal)

Date: Place:

ACKNOWLEDGEMENTI 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

ABSTRACTThe 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 jobrelated 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 Pearsons 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 its 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 its 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 (fr