Enhancing Organizational Growth Through Innovation and Creativity: Issues, Opportunities and Challenges
Enhancing Organizational Growth Through Innovation and Creativity: Issues, Opportunities and Challenges
Papers presented at the International Conference on Enhancing Organizational Growth Through Innovation and Creativity: Issues, Opportunities and Challenges: Amity Business School Amity University Haryana 5th– 6th May, 2011 Amity Education Valley, Gurgaon (Manesar)
Editors PADMAKALI BANERJEE VIKAS MADHUKAR Editing Team TANUSHRI PUROHIT PRAVEEN K SHARMA POONAM SHARMA
Organised by
AMITY BUSINESS SCHOOL Amity University Haryana Amity Education Valley, Gurgaon (Manesar) www.amity.edu/gurgaon
EXCEL INDIA PUBLISHERS New Delhi
First Impression: 2011 © Amity University Haryana, Gurgaon Enhancing Organizational Growth Through Innovation and Creativity: Issues, Opportunities and Challenges ISBN: 978-93-81361-02-3 No part of this publication may be reproduced or transmitted in any form by any means, electronic or mechanical, including photocopy, recording, or any information storage and retrieval system, without permission in writing from the copyright owners. Editors Profile Padmakali Banerjee has specialized in HRD climate in her Doctorate from University of Delhi. She has nearly two decade of experience in research, teaching, training and academic administration. She has been a Recourse Person and a trainer for Management Development Programmes, Consultant/Trainer on HRD issues to various private and public sector organizations. Her research interests include Leadership studies, Motivational Climate, Management Communication, entrepreneurship and Design Management. She has published research papers in reputed refereed journals. She has closely worked with corporate developing and holding Leadership Development Workshops and training programs for Corporate Leaders. . She is the Executive Editor of the Journal Amity Management Analyst and has received awards and scholarships for academic excellence. In her professional career she has exhibited her passion for entrepreneurship by empowering youth and developing leaders in different walks of life. Vikas Madhukar has specialised in finance and strategy and holds his Doctrate in International Finance from Kurukshetra University. He has a rich and varied experience of more than a decade in teaching, training, research, consultancy and administration. His area of interest includes financial statement analysis, strategic management, operations & total quality management and international financial environment. He has contributed more than 35 rasearch papers in different National and International Journals and Conferences and has been a Resource Person and trainer to various public and private sector organisations. He is the Managing Editor of Amity Management Analyst, the prestigious bi-annual ‘Refereed’ Journal of Amity Business School. A guide and a mentor, he has been credited in organizing various corporate meets, seminars and conferences at both National and International level.
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Organising Committee CONFERENCE CHAIRPERSON
Prof (Dr) R C Sharma Vice Chancellor – Amity University, Haryana CONFERENCE DIRECTOR
Prof (Dr) Padmakali Banerjee Director-Amity Business School & Dean Academics, Amity University, Haryana CONVENER & ORGANIZING SECRETARY
Prof (Dr) Vikas Madhukar Dy Director – Amity Business School & Director – Events, Amity University, Haryana COORDINATORS
Ms Vasudha Dhingra, Faculty – Amity Business School Ms Tanushri Purohit, Faculty – Amity Business School Mr Praveen K Shcarma, Faculty – Amity Business School COORDINATING TEAM
Ms Poonam Sharma, Faculty, Amity Business School Ms Divya Shikha, Faculty, Amity Business School Mr Yogesh Pattar, Faculty, Amity Business School Mr Kapil Madan, Faculty Amity Business School Ms Ranjana Kothari, Faculty, Amity Business School Ms Vani Gudapati, Faculty, Amity Business School Brig G K Dua, Registrar, AUH Sq Ldr S K Singh, Dy Director, Administration, AUH Mr V P Rawat, Assistant Registrar, AUH Col Anil Gulati, Head, Corporate Resource Centre, Mr R K Dhingra, Dy Director, Corporate Resource Centre
Foreword It is really laudable that Amity Business School, Amity University Haryana, has organized a Two Day International Conference on ‘Enhancing Organizational Growth through Innovation and Creativity’ on May 5th –6th , 2011, aiming at focusing on various dimensions of innovation that may be instrumental in enhancing growth and securing an edge over its competitors by an organization. It is indeed admirable a sincere effort has been made to bring together Academicians and Corporate leaders from across the world for making their deliberations for the benefit of all stakeholders. The present volume comprises more than thirty research papers authored by learned academicians and practitioners, which have been categorized under five heads, viz, Contemporary issues in Human Management; Finance, banking and insurance in integrated global environment; Marketing globally; Technology and business; and others - thus covering almost all the vital facets of the main theme of the Conference. It is my firm belief that this exercise will enrich the existing literature on the subject. The present volume, therefore, will be of great value to all researchers, faculty members, professionals and students related to the field and also inspire them to explore the unexplored aspect of the subject. It is also true that organizing an International Conference at the scale at which Amity Business School, AUH, is organizing it, is a Herculean task. It is possible only when the entire University works as a team. I, therefore, congratulate one and all who have contributed in any way towards this attempt. I wish the present volume a grand success among its readers and hope it will be inspiring and motivating to all concerned. Prof (Dr) RC Sharma Vice Chancellor Amity University Haryana
Preface Challenges and increased complexity in Organisations globally has made Innovation an area of prime focus for Organisational excellence. The book is specifically focused on Innovation and creativity in organization which have been impacted by globalization and liberalization of the Indian economy in the last two decade. The genesis of this work is based on the Government’s declaration of 2010-2020 as Innovation Decade and our Government has set up a National Innovation Council to create awareness about innovation. Thus focus at the University was to study the challenges faced by Leaders in this dynamic environment and skills required to deal with them. We organized the Conference on “Enhancing Organisational Growth Through Innovation & Creativity: Issues, Opportunities & Challenges” on May 5 and 6, 2011. The core objective of the Conference was to create a leaving platform for practitioners and scholars from various public, private sector Organisations and Academic Institutions to share their thoughts and experiences on the theme. In this busy world where time is a scour it was a challenge to find academics and practitioners who were willing to find time to write about their experience. Repeated follow-ups for papers resulted in some intensity writing on this topic of relevance. Total numbers of papers are 36 in the book. We hope that this will help in generating intervention to generate knowledge on the subject and support Leaders to deal with the challenges found in the Organisational environment. We acknowledge the contribution of all the individuals who helped to make the publication of this book happen. Firstly I appreciate and also thank the author and Organisations who have showed their experiences. This book is a result of constant motivation and inspiration of our Founder President - RBEF and Chancellor, Amity University Haryana, Dr Ashok K Chauhan and Mr. Aseem Chauhan, Additional President – RBEF and Chancellor, Amity University Rajasthan. We extend our heartfelt thanks to Dr R C Sharma, Vice Chancellor, Amity University Haryana for all the encouragement, invaluable assistance, guidance and help at different stages in bringing out this book. The publication of this book could not have been possible without the cooperation, hardwork & dedication of ‘editing team’ consisting faculty members of Amity Business School. We sincerely appreciate them for their zeal & enthusiasm. We are grateful to all the paper contributors in bringing out this volume of the edited book. We also thank Excel India Publishers, New Delhi for taking up the task of publishing the book and executing it nicely. Padmakali Banerjee Vikas Madhukar
Contents Foreword Preface
vi vii
CONTEMPORARY ISSUES IN HUMAN RE SOURCE MANAGEMENT 1. Building Personal Identity: A Content Analysis Ronny Kountur
3
2. Impact of Information Technology in the Human Resource System Sandip Rakshit and Hemanta Dey
11
3. Building the Sustainable Organization through Acclimatized, Creative Balance in the HR System Tapati Nandy and Barnishikha Das
16
4. Building Employee Perceptions to Achieve Favourable Work Attitudes and Outcomes: An Empirical Study of Doctors Luxmi, Vibhuti Yadav and Harleen Kaur
27
5. Internal Branding an Effective Tool for Employee Retention Swati Bisht
41
6. Comparison of Employee Satisfaction Dimensions Across Various Demographic Characteristics in the BPO Industry Santoshi Sengupta
46
7. Gender and Leadership Effectiveness as a Contemporary HR Practice in Indian Organizations Amita Girdhar and Shabnam Saxena
59
8. Organizational Culture and its Impact on Turnover Intentions of Employees: An Empirical Study of Few Selected Private Telecom Companies in and Around Chandigarh Luxmi and Tarun Kumar Vashisth
71
9. Role of Hierarchy in Organization for Competitive Advantage to Achieve Work Life Balance in Corporate Environment Arti Gaur, Suman Ghalawat and Meenakshi Azad
82
10. Shades & Shapes of Independence of Ideas: Evolving from Emulate to Innovate Jyoti Kukreja
96
x ♦ Contents
11. Emotional Intelligence a Path towards Organizational Success Prakash Kumar Choudhary and Anu Sharma
108
12. Fear in Learning Creates Difficulty in Managing Talent at Work (A Proposed Model) Sonika Sharma, Kavita Srivastava and Pankaj Chauhan
118
13. Innovative HR Practices for Employee Retention in It Industry Poonam Sharma and Tanushri Purohit
128
14. Ethical Behaviour in the Organizations Hojjatollah Darafsh
136
15. The Influence of Cultural Differences on Leadership Excellence Padmakali Banerjee
142
FINANCE, BANKING AND INSURANCE IN INTEGRATED GLOBAL ENVIRONMENT 16. Financial Inclusion Challenge in India: Innovative Microfinance Practices and Approaches Contributing to Entrepreneurial Growth and Employment Smita Shukla
165
17. A Study on Mapping Critical Success Factors in Acceptance of Mobile Banking in India SK Sharma and Rajan Yadav
181
18. Strategising Indian Corporate Growth by Deployment of Innovative Forex Risks Hedging Techniques-An Empirical Assessment of the Forex Derivatives through VAR Models Deepak Tandon and Gaurav Gupta
193
19. Value Creation through Mergers and Acquisitions Kanchan Parul, Nilmani Kumar and Sohni Shubham
207
20. Innovative Techniques in Banking Sector Jeet Singh and Preeti Yadav
219
21. Problems and Prospects in the Marketing of Mutual Fund Products in India BB Goyal and Meghna Aggarwal
234
22. Innovative Tax Saving Instruments—A Critical Analysis of Decision and Preferences of Taxpayers Meenakshi Rohella and Atul Dhingra
241
23. Financial Development and Economic Growth in India Ved Pal and Ashwani
251
Contents ♦ xi
MARKETING GLOBALLY 24. Social Capital of Consumers in Social Media Birud Sindhav
267
25. Effect of Branding on Customer Satisfaction: A Comparative Study of Dominos and Pizza Hut in Jammu Region (J&K) Sandeep Singh Chib and Pabitra Kumar Jena
272
26. Customer Experience Management (CEM)— A Key to Relationship Marketing Yogita Sharma and Pragati Chauhan
291
27. Innovative Marketing Strategies in Rural India Neetu Singh
299
28. Fortis Escorts Hospital, Jaipur-Story Behind the Heart Beat of Pink City (New Dimensions to Marketing of Services in Healthcare Industry) Shikha Kaushik and Sonal Katewa
310
29. Customer Relationship Management and Its Contribution in Organizational Growth Sanjay Shrivastava, SK Singh and KS Rathore
317
30. Web 2.0 for the Enterprise: Societal Marketing Jinnia M Kaushik
332
31. Business Opportunities in the Rural India: A Gateway of Economic Growth Praveen K Sharma and Sanjay Mishra
343
TECHNOLOGY AND BUSINESS 32. Decision Support System to Create a Good Organization: “By the use of Some Important Components and Responsibilities on Different Levels” Vineet Kumar Sharma and Arvind Kumar Arya
353
33. Role of Cloud Computing for MSMEs in India Mohit Bali and Amit Kumar Bhardwaj
362
34. An Empirical Study on the Usage of Internet or E-resource Leading to the Growth of Information and Communication Technology Shobha Kumari, Samidha Singh and Ravi Raj
380
xii ♦ Contents
OTHERS 35. Agri Business Incubation and Agro Technology Commercialization Baljeet Singh, RV Vyas, Saiyad M Iqbal and Rachana M Shukla
393
36. Enhancing Organisational Growth Through Supply Chain Management— A Special Reference to Automobile Sector Vikas Madhukar
403
AUTHOR INDEX
413
CONTEMPORARY ISSUES IN HUMAN RESOURCE MANAGEMENT • Building Personal Identity: A Content Analysis — Ronny Kountur • Impact of Information Technology in the Human Resource System — Sandip Rakshit and Hemanta Dey • Building the Sustainable Organization through Acclimatized, Creative Balance in the HR System — Tapati Nandy and Barnishikha Das • Building Employee Perceptions to Achieve Favourable Work Attitudes and Outcomes: An Empirical Study of Doctors — Luxmi, Vibhuti Yadav and Harleen Kaur • Internal Branding an Effective Tool for Employee Retention — Swati Bisht • Comparison of Employee Satisfaction Dimensions Across Various Demographic Characteristics in the BPO Industry — Santoshi Sengupta • Gender and Leadership Effectiveness as a Contemporary HR Practice in Indian Organizations — Amita Girdhar and Shabnam Saxena • Organizational Culture and its Impact on Turnover Intentions of Employees: An Empirical Study of Few Selected Private Telecom Companies in and Around Chandigarh — Luxmi and Tarun Kumar Vashisth • Role of Hierarchy in Organization for Competitive Advantage to Achieve Work Life Balance in Corporate Environment — Arti Gaur, Suman Ghalawat and Meenakshi Azad • Shades & Shapes of Independence of Ideas: Evolving from Emulate to Innovate — Jyoti Kukreja • Emotional Intelligence a Path towards Organizational Success — Prakash Kumar Choudhary and Anu Sharma • Fear in Learning Creates Difficulty in Managing Talent at Work (A Proposed Model) — Sonika Sharma, Kavita Srivastava and Pankaj Chauhan • Innovative HR Practices for Employee Retention in It Industry — Poonam Sharma and Tanushri Purohit • Ethical Behaviour in the Organizations — Hojjatollah Darafsh • The Influence of Cultural Differences on Leadership Excellence — Padmakali Banerjee
Building Personal Identity: A Content Analysis *
Ronny Kountur
This study used a qualitative approach. Data was taken from a text in the book of Proverbs. Data was analyzed using content analysis technique. Purposively, the sample was taken from Proverbs chapter 1 to 4. Two research questions were addressed: (1) What are the required personal identity as derived from the text? And, (2) how to build the required personal identity? The study found two categories of personal identity, they are trustworthy and helpful (they are called the required personal identity). In building this required personal identity, four categories emerged: putting God be the first, continue learning, keep on doing good, and careful in the ways of thinking. BACKGROUND
Each person has an identity, whether we like it or not. This identity is given by others based on what they see, feel, and experience with the person. Personal identity is a form of perception on a person. The same person might get different perception from other people. Some might look at him positively while others look at him negatively, if that is the case, there seems to be inconsistency in his identity. This inconsistency gets worse if the person is not aware of his own identity. For this reason, it is important for a person to know and develop his own identity. Identity of what he likes others to see in him or her that are distinctive. As mentioned by Wieland (2010), “Identity construction is … an active process that results in the development of a distinctive, coherent self.” The importance of personal identity has been mentioned by several authors such as Wieland (2010) and Parris & Vickers (2010). Studies show that a strong self image and professional identity lead to enhanced confidence and better performance in workplace (Shaw & Timmons, 2010; Rivera, 2009). And, personal identity affects work engagement. Low burnout and high engagement is the outcome, when meaningful identity status is achieved (Luyckx, at al., 2010). The Bible is the source of wisdom. For Christians, it is believed that the book is inspired by God. A lot of everyday concerns is learned from the Bible. As the introduction part of the book of Proverbs says, “Much of it [the Proverb] has to do with practical, everyday concerns.” Personal identity is a practical everyday concern that can be learned from this book of Wisdom; thus, study need to be done.
*Faculty,
Department of Business, Graduate School, AIIAS, Philippines
4 Enhancing Organizational Growth Through Innovation and Creativity: Issues, Opportunities and Challenges
PURPOSE OF THE STUDY
The main purpose of this study is to discover ways of building personal identity based on the Proverbs text. Specifically to answer the following questions: • •
What are the required personal identities? How to build those required identity?
STUDY PROCEDURES
Text from the book of Proverbs is the source of data in this study. The text was written in several versions. This study used the New English Version. Text in the book of Proverbs was purposively selected since this book contains collection of moral and religious teachings that could be of use in answering the research questions. There are 31 chapters in the book of Proverbs. The New English Version Bible divided the 31 chapters into four main parts. The first part was taken purposively as the sample of this study. The first part contains the words of wisdom that could provide information needed to answer the research questions. This first part was from chapter 1 to 9. Since chapter 5, 6, 7, and 9 talk about adultery and chapter 8 talks about praise, only chapter 1 to 4 was taken as the sample. Chapter 1 to 4 contain discussion related to the value of proverbs, advice to the young, wisdom calls, the rewards of wisdom, and the benefits of wisdom. Content analysis is the method in analyzing the data. “… all qualitative data analysis is content analysis in that it is the content of interviews, field notes, and documents that is analyzed.” (Merriam, 2009). Any statement or sentence in Proverbs chapter 1 to 4 became the unit of analysis. The following procedures were implemented consistently during the collection and analysis of data in order to assure the validity and reliability of the data collected. The first stage in the content analysis procedure was to read the text. The second stage was coding. For every statement that answered any of the three research questions, it was taken and coded. The statements were grouped according to the research question. If it answered the first research question, then that statement belongs to the first group. If it answered the second research question, then that statement belongs to the second group. And so on for the third research question. The third stage in the process was to group similar code into one group called concept. The fourth stage was to group those related concepts into one category or theme. The last stage was to interpret the categories.
Building Personal Identity: A Content Analysis 5
RESULTS
The result of this study is presented according to the sequence of the research question. It begins with the required personal identity and followed by building the required personal identity.
Required Personal Identity
Fig. 1: Concept Distribution for Required Personal Identity
What are the required personal identities written in the book of Proverbs? Twenty six statements emerged from the text that could answer this question. These statements then were coded. Since some statements are similar only eight different concepts came out. The eight different concepts are trust, honesty, loyalty, fairness, righteousness, helpfulness, wisdom, and knowledge. The distribution of these concepts is shown in Figure 1. Wisdom and Knowledge are frequently mentioned in the text while trust is the least mentioned in the text. As the text states, “Don’t plan anything that will hurt your neighbors; they live beside you, trusting you. (Proverbs 3:29). Trust seems to be one of the required identities that a person should have as stated in this text. In Proverbs 1, 2 and 3, it says, “Here are proverbs… They can teach you how to live intelligently, and how to be honest, just, and fair.” Three concepts emerged from this text. The first concept when it mentioned “to live intelligently” is about knowledge. It also indicates honesty when it says “be honest”. And the text also indicates fairness when it says “be … just, and fair.” The concept of knowledge appears several times in the text such as “To have knowledge, you must first have reverence for the Lord.” (Proverb 1:7). Knowledge becomes a required identity of a person in addition to honesty, just, and fair as the text indicates.
6 Enhancing Organizational Growth Through Innovation and Creativity: Issues, Opportunities and Challenges
Faithfulness, righteousness, helpfulness, and wisdom are also required in a person. As the text says, “Never let go of loyalty and faithfulness.” (Proverbs 3:3). About righteousness, it says “So you must follow the example of good people and live a righteous life… Because the Lord hates people who do evil, but he takes righteous people into his confidence” (Proverbs 3:20, 32). A person must also be helpful, “Never tell your neighbors to wait until tomorrow if you can help them now” (Proverbs 3:28). Several texts mentioned about wisdom. “Wisdom is more valuable than jewels; nothing you could want can compare with it.” (Proverbs 3:15). Further it says, “Do not abandon wisdom, Getting wisdom is the most important thing you can do.” (Proverbs 4:6, 7).
Fig. 2: The Required Personal Identity
When these eight concepts are carefully analyzed, two categories (group of concepts) emerge: trustworthiness and helpfulness. These are the two major personal identities that are required by the first four chapters of the book of Proverbs. A person must be identified as trustworthy and helpful. Honesty, loyalty, fairness, and righteousness are the concepts that build the
Building Personal Identity: A Content Analysis 7
category of trustworthiness; while knowledge and wisdom are the concepts that build the category of helpfulness. The eight concepts and the two categories of the required personal identity are shown in a diagram in Figure 2.
Building the Required Personal Identity How can a person build the required personal identity or what to do in order for a person to be identified as trustworthy and helpful? There are 47 statements from the text that answers this question. From all of these statements, different concepts transpires, such as putting God first, learn, pay attention, refuse to do bad, listen, willing to be corrected, understand, humble, not to argue, remember, no evil, ways of thinking, confidence, and determination. When related concepts are group together, four categories or group of concepts emerge. These categories become factors in order for a person to have the required personal identity. The four categories that are needed to develop the required personal identity are, God first, learn, act, and behave. The distributions of these four categories are shown in Figure 3. Statements related to learning are frequently mentioned in the text. These statements appeared twenty eight times. Statements related to action emerged 10 times. The least mentioned statement in the text are the statements related to behavior, it appeared only 3 times.
Fig. 3: Categories Required in Building Personal Identity
God must be first priority in developing personal identity. “…you must first have reverence for the Lord… Remember the Lord in everything you do, and he will show you the right way.” (Proverbs 1:7; 3:6). God first, means putting Him above everything else including ourselves and we should be a person free of self-centeredness. It is self-centeredness that drives people to be dishonest, unfair, and disloyal. In other words, when a person puts
8 Enhancing Organizational Growth Through Innovation and Creativity: Issues, Opportunities and Challenges
himself above God, he/she could never develop an identity of trustworthiness. Putting God first in a person’s life drives away selfcenteredness attitude and that person can develop the required personal identity. Putting “God first” is not the only category needed in building the required personal identity but making him the center of all activities in developing the required personal identity. It affects the other three categories that are needed in developing personal identity: continue learning, keep on doing good, and careful in thinking. If an individual is putting God first in his life, he/she is free of being self-centered, he will be humble enough to be willing to learn, sincere in his actions, and careful in thinking, that will lead to proper behavior. The relationship is shown in Figure 4. The second category that is needed in building the required personal identity is “continue learning”. Learning is about paying attention, understanding, willing to be corrected, and remembering. As mentioned in the text, “My child, pay attention to what your father and mother tell you.” (Proverbs 1:8). “Listen! Wisdom is calling out in the streets and marketplaces,” (Proverbs 1:20). Listening is a way of paying attention, another is observing. The importance of listening is mentioned in the study of Durant (2002) she recommends and encourage simple act of listening among employees in order to build a strong interpersonal relationship. Understanding is another important aspect in learning, as it is said, “Listen to what is wise and try to understand it.” (Proverbs 2:2). Willingness to be corrected is another element in learning. Somebody who understands what has been heard but unwilling to apply it because of the unwillingness to be corrected is actually not learning. Learning requires willingness to be corrected. As mentioned in the text, “Foolish people! … You have ignored all my advice and have not been willing to let me correct you.” Proverbs 1:25). Furthermore it says, “My child, when the Lord corrects you, pay close attention and take it as a warning.” (Proverbs 3:11). The third category that is needed is action. People are identified by what they do, what they show, whether they can be trusted, or whether they are helpful. Refusing to do evil is a way of showing that a person can be trusted. The text advice not to go with evil people, as it says “Do not go where evil people go. Do not follow the example of the wicked. …Keep away from evil! Refuse it and go on your way.” (Proverbs 4:14, 15). Also, if a person wants to be identified as a helpful person then he should do good to others. As the text indicates, “Whenever you possibly can, do good to those who need it” (Proverb 3:27). Doing good is not to argue for no reason, “Don’t argue with others for no reason when they have never done you any harm.” (Proverb 3:30).
Building Personal Identity: A Content Analysis 9
Fig. 4: Building the Required Personal Identity
The last category is behavior. An individual’s behavior is influenced by his/her thought. In the text it says, “Be careful how you think; your life is shaped by your thoughts.” (Proverb 4:23). DISCUSSION
To be trustworthy, a person needs to be honest, faithful, just, and righteous. These are the four concepts that build the category of trustworthiness. How can a person be trusted if he/she is not honest? Since an honest person is a person that can be trusted. It is honesty that generates trust and it is vital to most of the things that an individual does (Scanes, 2010). A study was conducted to school teachers and the result showed that honesty is one of the five characteristics valued most in an effective leader. In fact, honesty is the most important character teachers find in a leader. (Kaucher, 2010). Other studies done on school settings showed that, honesty is one of the basis of trust in a principal/administrator. (Snyder, 2010). Trust requires faithfulness and loyalty. How can you trust a person that is not faithful or loyal to you? It is hard! However, trust could also build loyalty. According to Pomraning’s study (2010), building and sustaining trust is a powerful leadership tool for building employee loyalty. A person who is fair/just can be trusted. In a game, a referee that is fair and just is a trusted referee. A study found that in an organization, for management to be trusted, it needs to engage in fairness-building activities. (Long, 2002). Helpfulness is another major category in required personal identity that emerged from the text. To be helpful, a person needs two things: Knowledge and wisdom. Knowledge is about “knowing how to do.” A knowledgeable person is a person that accomplishes particular tasks properly. For example,
10 Enhancing Organizational Growth Through Innovation and Creativity: Issues, Opportunities and Challenges
a person who has medical knowledge can easily help sick people by giving medical treatment as compared to those who have no medical knowledge. While, wisdom is about “knowing what is right from wrong.” Knowing what is right from wrong is a requirement in helping others. If a person does not know what is right from wrong, it might be more harm than good. A person must know he is doing the right thing. The text of Proverbs provides lesson on how to develop personal identity. Any person can develop his/her own identity by starting to let God be above everything else including oneself. And it is important to keep on learning and acting on what had been learned since action speaks louder than any of the mode of advertising to promoting oneself. This finding was supported by other study done by Sinclair (2000) that found self presentation ads persuade when personal identity is high. REFERENCES [1] Durant, R A (2002), “You Mean the World to Me: Story Telling and Leader Listening in Organizational Learning”, Dissertation, University of Alabama. [2] Kaucher, E (2010), “Ethical Decision Making and Effective Leadership”, Dissertation, Alliant International University. [3] Long, C P (2002), “Balancing Organizational Controls with Trust-building and Fairness-building Initiatives”, Dissertation, Duke University. [4] Luyckx, K; Duriez, B; Klimstra, T A & Witte, H D (2010), “Identity statuses in young adult employees: Prospective relations with work engagement and burnout”, Journal of Vocational Behavior, Vol 77, No 3, pp 339. [5] Merriam, S B (2009), Qualitative Research: A Guide to Design and Implementation, Jossey-Bass, San Fancisco. [6] Parris, M A & Vickers, M H (2010), “Look at Him He’s Failing: Male Executives’ Experiences of Redundancy”, Employee Responsibilities and Rights Journal, Vol 22, No 4, pp 345. [7] Pomraning, D C (2010), “Overall Organizational Emotional Intelligence and Organizational Emotional Intelligence Factors as Antecedents of Organizational Trust”, Dissertation, Walden University. [8] Rivera, M (2009), “On self-identity”, The Hispanic Outlook in Higher Education, Vol 19, No 23, pp 11. [9] Scanes, C G (2010), “Honesty and Trust”, Poultry Science, Vol 89, No 5, pp 859. [10] Show, K & Timmons, S (2010), “Exploring How Nursing Uniforms Influence Self Image and Professional Identity”, Nursing Times, Vol 106, No 10, pp 21. [11] Sinclair, J E (2000), “The Effect of Personal Identity on the Persuasiveness of Self-presentation Ads”, Dissertation, University of Florida. [12] Snyder, J L (2010), “Below the green line: Collaboration, constructive conflict and trust in teacher professional communities”, Dissertation, University of California. [13] Wieland, S MB (2010), “Ideal Selves as Resources for the Situated Practice of Identity”, Management Communication Quarterly: McQ, Vol 24, No 4, pp 503.
Impact of Information Technology in the Human Resource System *
Sandip Rakshit and **Hemanta Dey
Nowadays developments of Internet technology and computing have brought about positive impact in all sectors of business including Human Resource Management (HRM). As a result the concept of Human Resource Management Information System (HRMIS) introduced in the business sector. Normally HRMIS is used to acquire, store, manipulate, analyze, retrieve, and distribute appropriate information regarding an organization’s human resources. In this paper we are trying to find out the impact of HRMIS on enterprise social capital. The concept of human capital refers to the education, on-the job training, and work experience of the labor force. Here we also analyze HRMIS’s effect of increasing enterprise social capital and identify the key factors of HRMIS which contribute to increasing enterprise social capital. Through this research we also try to find out the rate of acceptance of employees’ towards the implementation of new functions of HRMIS in different Government and private sector. In our paper we also analyze the application of HRMIS in different Enterprise Resource Planning (ERP) software. The main features, key benefits, implementation challenges in HRMIS are also analyzed in this paper. INTRODUCTION
Today developments of Information Technology have brought about positive impact in different sectors. As a result the development of web-based application becomes the main requirement in government institutions, private sectors and education sectors, etc. Owing to fast development of information technologies, corporations are employed to enhance the capability of human resource management, which is called human resource management information system (HRMIS). Normally Human Resource Management is the organizational function which deals with issues related to people such as compensation, performance management, hiring, safety, wellness, benefits, training, administration, employee motivation and communication. HRMIS plays an important role in industry to assist to retrieve, maintain, and help deal with a lot of daily affairs. It is basically one type software or online solution for the data entry, data information and data tracking which are needed for human resources and payroll management and accounting functions within an organization. In line with the trend of using those applications on business activity, and security level, user’s identification requirement became one of the main concerns. User management and implementation of infrastructure which support the *Assistant **Assistant
Professor, Army Institute of Management, Kolkata, India Professor, Techno India College of Technology, Kolkata, India
12 Enhancing Organizational Growth Through Innovation and Creativity: Issues, Opportunities and Challenges
security requirement have become important factors. Mainly this system is highly secure so the data confidentially and user authentication became more and more important part of this system. Malaysia Airlines is the national airline of Malaysia; they provide services to over 100 destinations worldwide. In the past, managing the process of attracting new applicants and facilitating the training was handled through a paper-based process. But in 2006 they launched a Business Turnaround Plan; Malaysia Airlines made a departure from a paper based process to an automated system known as Human Resource Management Information System (HRMIS). APPLICATION AREA OF HRMIS
At the earlier stage the function of the computer in offices was mainly data processing and reporting i.e. by computer work of office automation becomes easy, which in computer terminology is known as EDP (Electronic Data Processing). But the EDP and other work cannot exchange information. The most important concept of MIS (Management Information System) is forecast about the business operations [1]; This information system help to take future important decisions for business from past data and information; its use for the information control in the behavior of enterprises and help enterprises to achieve their planning objectives. With the development of knowledge economy and information technology, the success of an organization totally depends on the construction of its social network and the network gathering of its social capital [5]. Encountered by the challenge of internet age, organizations must try every means to acquire and gather social capital through network to build up its core competencies. Boudreau (1995) once emphasized that “(organization should) try to do the right things, rather than do the same things right. The information HRMIS provides should be what organizations need, not simply what it could”. As higher education gets united, educational resources become recombined and the reform of higher education human resources is going, the human resources management of higher education is changing greatly, not only in its working area but also in its working connotation. Traditional human resources management information system is not fit for the need of the new times. DSS (Decision Support System) in computer system is a tool for interaction between man machines. It uses computing speed, storage capacity and other features, applications and methods of decision theory, psychology, behavior, artificial intelligence, computer networks and
Impact of Information Technology in the Human Resource System 13
databases etc. It can use by policy makers and decision makers according to the mode of thinking. As human resource management issues to solve semistructured and unstructured problems more, so use of DSS technology is one of the best choices. REVIEW OF PREVIOUS WORK
In the 50’s to 60’s last century, with the rapid development of computer technology, some large American companies started to use computers in their personnel management. From that time HRMIS has been upgraded and spread over different sectors and now in the 21st century, it becomes the most important tools in enterprise human resource management. HRMIS represents future development trend of human resource management. In past HRMIS was used to save enterprise personnel information but nowadays most of the enterprises still use HRMIS only for routine administration. Till now, most of the international research on HRMIS was focuses on the following areas: detailed function (Lego, 2001; Zheng Chu, 2003; Lin Wang, 2003), service object (Anderson, 1997; Qingyang Lin, 2003) and manifestation (Broderick & Boudreau, 1992; Walker, 2001; Moritz, 2003; Zheng Chu, 2003), etc. The major purpose of those researchers is to increase the efficiency and minimize costs by reforming traditional enterprise personnel management through information system. With the ongoing development of knowledge economy and information technology for the success of an enterprise increasingly depends on the construction of its social network and the network gathering of its social capital [2,3]. Boudreau (1995) once emphasized that “(enterprises should) try to do the right things, rather than do the same things right. The HRMIS should be provide only what enterprises need, not what it could”. So enterprises should fully exert the strategic function of HRMIS, and gradually transfer their work emphasis from traditional routine work like recruitment, training, appraisal and remuneration to the strategic approached which can create value for enterprises, such as gathering enterprise social capital through network. (Anthony et.al., 1996; Sobkowiak & LeBleu, 1996; Kovach, Hughes, Fagan & Maggitti, 2002).
Proposed Modern Framework of HRMIS Most researchers consider HRMIS as a technological method where various modern functions of human resource management are utilized. But we think it can be refer both computer network from technological perspective as well as social network in sociology research. Normally by create such system enterprises want to make a social network for information exchange between the enterprises by using computer network.
14 Enhancing Organizational Growth Through Innovation and Creativity: Issues, Opportunities and Challenges
To find out the impact of Information Technology in the Human Resource System, in this paper we analyze different functions of HRMIS. Some of the functions of HRMIS are discuss below • •
•
•
HRMIS is become a necessary technology to manage the benefits plan for the companies and their employee information. If any one is efficient with this technology he/she can save time and money. A new Research in business technology can be a daunting task and finding a suitable Human Resources Management Information System (HRMIS) by which someone’s business may meets the unique needs and it will be acceptable by all employees is a big challenge. So by exploring a Web-based HRMIS solution any one can start this process with minimize the cost of investment to purchase software, internal IT involvement or a lengthy implementation process. There are some advantages and disadvantages in electronic surveillance of employees at Work [4]. By electronic surveillance any employers can know about the best service of their organization. As well as not every workplace, or work culture and environment is suitable for electronic surveillance of employees at work, because some time it may injure trust and culture. Today employers can take the advantage of social networking sites like Orkut, LinkedIn through which they can complete networking and recruiting process.
So it is clear that Human Resource Department must be a leader in the implementation of emerging technologies. So using information technology HR departments can meet their goals to enhance efficiency and reduce cost with providing better service to their employees. Here we not consider enterprise economic strength, years of existence, enterprise employee scale, etc. These may exert more or less impact on HRMIS level which will be open for future. CONCLUSION
Today information technology is simplifying our lives but it create problems in the area of Title structure where technology requirements of jobs changing each day. Some time it create problem in recruitment, selection procedure, performance appraisal, rewards, training and professional development etc. This technology also demands continuous attention, investment, and training of the employees. Training and development is the most importance part of any project to get the best result. When budgets are fixed and low then most of the organizations usually cut training first that should not be the good way; therefore, improved training and development is an important issue to the Human Resource Management Departments [6]. HRMIS does
Impact of Information Technology in the Human Resource System 15
not build up a computer network inside or outside enterprises. It actually helps to establish enterprise social network, which has the benefit of increasing enterprise social capital. ACKNOWLEDGEMENT
The authors of this paper Mr. Sandip Rakshit and Mr. Hemanta Dey are thankful to the Research and Development Cell of Techno India College of Technology, Kolkata, for necessary supports during the research work. REFERENCES [1] McLeod, (1998), “Management Information Systems”, Prentice Hall, pp 22–26. [2] Jianguo Chen, Sili Ling, (2004), “Social Capital in Enterprise Organization: Knowledge and Information Selection”, Hunan Social Science, Vol 1. [3] Jinshu Ma, (2003), “Enterprise Network and Enterprise Innovation—A View of Social Capital”, Journal of Yunnan Administration College, Vol 1. [4] Kenneth A Kovach, Allen A Hughes, Paul Fagan, Patrick G Maggitti, (2002), “Employment Relations Today”, Hoboken, Vol 29, Iss 2, pp 43. [5] Yu Tang, (2003), “Impact of Social Network Features on the Value Realization of Social Capital”, Economy Science, Vol 3. [6] Mark L Lengnick-Hall, Steve Moritz, (2003), “The impact of e-HR on the human resource management functions”, Journal of Labor Research, Vol 24, Iss 3, pp 365.
Building the Sustainable Organization through Acclimatized, Creative Balance in the HR System *
Prof Tapati Nandy and **Barnishikha Das
In the face of global challenges and mounting uncertainty, managers are required daily to act, to marshal resources towards collective organizational ends. Human Resource managers, who include all managers of people, are charged with an even more daunting task: to align intangible resources to an often shifting strategy in an increasingly uncertain environment, akin to hitting a moving target in the dark. This task is less daunting if we focus not on the end point, but on the processes of adaptation and creative invention. The characteristics deemed essential for the optimal navigation of uncertainty in a dynamic, globalizing and rapidly changing world: connectivity, commitments, culture and capabilities – are the ‘four C’s’ of sustainable management. Thus, in order for the ‘sustainable organization’ to emerge, we suggest that what is needed is a fundamental shift in the frames we use to explain how change happens and what approaches to building organizational systems are most effective. The “complex resource-based view”, a perspective that operationalizes the traditional resource-based view (RBV) through the application of living systems heuristics, will allow us to identify the HR principles that are required to build capacity in terms of connectivity, commitments, culture and capabilities of the sustainable organization. We do this by considering the elements of the sustainable organization, described by the “4 C’s model” of organizational sustainability, as they relate to the living systems’ heuristics and relevant HR principles. By combining the 4 C’s of managing for organizational sustainability –connectivity, commitments, culture and capabilities – and living systems principles via Complex RBV – distribute being, pursue multiple goals, maximize the fringes, cultivate increasing returns, control from the bottom up, grow by chunking, and honor your errors – we open a wide array of ideas for bringing creative, adaptive coherence to the HR systems of would-be sustainable organizations. Here we introduce two complementary frameworks derived independently, each of which is aimed at helping to navigate uncertainty and complexity and which, taken together, form a richer framework for describing key leverage points for the human resource function in the sustainable organization. INTRODUCTION
The growing pressure on all elements of our economic, social and ecosystems is amplified by the increasingly networked and rapidly evolving technological economy that represents the new reality of globalization. Thus, in order for the ‘sustainable organization’ to emerge, we suggest that what is *Faculty,
Institute of Business & Computer Studies, SOA University, Bhubaneswar & Chief Learning officer–Veloxian Learning and Consultancy, Bhubaneswar
**Founder
Building the Sustainable Organization through Acclimatized, Creative Balance in the HR System 17
needed is a fundamental shift in the frames we use to explain how change happens and what approaches to building organizational systems are most effective. To navigate external complexity, new internal resources and capabilities are required that will serve to build sustained competitive advantage for the firm. The “complex resource-based view”, a perspective that operationalizes the traditional resource-based view (RBV) through the application of living systems heuristics, will allow us to identify the HR principles that are required to build capacity in terms of connectivity, commitments, culture and capabilities of the sustainable organization. The elements of the sustainable organization, described by the “4 C’s model” of organizational sustainability , as they relate to the living systems’ heuristics and relevant HR principles, We will then identify insights provoked by the Complex RBV perspective for strategic human resource management practices in the context of the sustainable organization, constructing the outline of a coherent, adaptive HR system, and advancing understanding for managers of sustainably relevant HR principles and practices. In this paper, the objective is • •
To analyze two complementary frameworks “complex resource-based view”, a perspective that operationalizes the traditional resourcebased view (RBV) To develop a richer framework for describing key leverage points for the human resource function in the sustainable organization, helping to navigate uncertainty and complexity and which, taken together.
DESIGN & METHODOLOGY
This framework has been developed from the conceptual theory of different strategies on sustaining change basing on the data in companies which are reputed to be sustainable organization through acclimatized, creative balance in the hr system. The companies which we have studied in depth are Toyota, General Electrics, BMW, and South West Airlines. All these companies are in their own sector the market leaders and also known to be employee friendly. The articles referred have been our secondary source for collecting the concepts and analyzing the inter relations.
Conceptualizing the Sustainable Organization: 4 C’s and Complex RBV In the face of global challenges and mounting uncertainty, managers are required daily to act, to marshal resources towards collective organizational ends. Human Resource managers, who include all managers of people, are charged with an even more daunting task: to align intangible resources to an often shifting strategy in an increasingly uncertain environment, akin to hitting a moving target in the dark. This task is less daunting if we focus not on the end point, but on the processes of adaptation and creative invention.
18 Enhancing Organizational Growth Through Innovation and Creativity: Issues, Opportunities and Challenges
The Four C’s Model for Organizational Sustainability Based on a review of the management literature and some theoretical reasoning four candidate characteristics of the ‘sustainable organization’ were all deemed essential for the optimal navigation of uncertainty in a dynamic, globalizing and rapidly changing world: connectivity, commitments, culture and capabilities – the ‘four C’s’ of sustainable management. Building organizational connectivity requires that managers bring a systems based approach to cognitively and consciously situating the organization in the context of macro global drivers across political, economic, social and ecological spheres. This connectivity is essential, both to avoid potential risk to the organization from unanticipated issues emerging from these areas, and also to ensure that latent needs from these different areas are identified as sources of potential value creation. Second, a focus on sustainable organizational commitments demands that managers incorporate a holistic perspective into organizational mission and goal setting, reconciling the pluralism of concerns illuminated through a systems-based approach to the external context with a focus on value creation across these domains. This commitment to the creation of multidimensional value is realized in the missions, codes, strategies, objectives and measures that managers establish in dialogue with the firm’s stakeholders. Culture for the sustainable organization requires that that senior managers and executive teams embrace those multiple perspectives that characterize a global mindset, with an awareness of diversity across cultures and markets and the ability to synthesize a range of stakeholder demands. A sustainable organizational culture in this model is characterized by a focus on value maximization through recognizing the synergies between value dimensions – social, economic, and environmental value. Finally, the organizational capabilities, most significant for sustainability are leadership, learning, stakeholder inclusion, and innovation. These are essential in that they allow managers and employees to adapt, comprehend and navigate the complexity of the global and organizational contexts in which they are embedded. Organizations that work hard on building their capabilities for sustainability might include many firms, but nowhere are the capabilities more important than in the extractive and natural resources industries where failure to build relationships with external constituencies results in direct denial of access to resources by communities and their advocates.
Building the Sustainable Organization through Acclimatized, Creative Balance in the HR System 19
Across all 4C’s, three commonalities emerge with regard to the role of managers in each of these aspects of organization. In order to simultaneously attend to these four domains, managers must be able to: • • •
Adopt a systems-based perspective that allows for the recognition of pluralism; Have the ability to synthesize a range of stakeholder interests to enable a holistic approach; Promote a focus on value creation and value maximization on multiple fronts.
THE COMPLEX RESOURCE-BASED VIEW
If managing sustainably depends critically on building internal capacity and strategic resources with respect to managing organizational connectivity, commitments, culture and capabilities, the question arises: how is such sustainable strategic capacity developed, and what is the role for the HR system? In strategic management theory, it is the resource-based view (RBV) of the firm that attempts to describe how managers build strategic capabilities and compete ‘from the inside out’, and the RBV serves as the most prevalent strategic perspective in research and theory in Strategic Human Resource Management. The resource-based view asserts that a firm develops competitive advantage by acquiring, developing, combining and effectively deploying its physical, human and organizational resources in ways that add unique value and are difficult for competitors to imitate .The RBV says that competitive advantage flows from latent creative potential and idiosyncratic capabilities (synchronous with the specific context), and that strategic resources must be valuable, rare, inimitable, and organizationally leveraged. Four critical aspects of the RBV, as outlined in the extensive RBV strategy literature, are: (i) resources have adaptive potential as well as creative potential; (ii) strategic resources are causally ambiguous and emerge in complex, often inscrutable ways; (iii) they emerge over time depending on non-linear interactions (i.e., they are ‘path-dependent’); and (iv) some resources are intangible and exist only at the system level, in relationships between things (like cooperation in the workforce, or a culture of knowledge sharing). These four aspects all make the RBV problematic, and they are all are central features of complex adaptive systems. In isolated elements” a set of abstract principles for the growth of living systems, synthesized from diverse streams of complexity research. Seven of these principles are:
20 Enhancing Organizational Growth Through Innovation and Creativity: Issues, Opportunities and Challenges
Distribute Being Allow that systems are not contained in discrete bodies; living systems are distributed over a multitude of smaller units. All the mysteries we find most interesting – life, intelligence, evolution – are found in the soil of large distributed systems.
Pursue Multiple Goals Survival is a many-pointed goal. A complicated structure has many masters, and none of them can be served exclusively. An adaptive system must tradeoff between exploiting a known path of success (optimizing a current strategy), or diverting energy to exploring new paths (thereby wasting energy and reducing efficiency).
Maximize the Fringes A diverse, heterogeneous entity can adapt to the world in a thousand daily mini-revolutions, staying in a state of permanent, but never fatal, churning. In economic, ecological, evolutionary, and institutional models, a healthy fringe speeds adaptation, increases resilience, and is almost always the source of innovations.
Cultivate Increasing Returns Each time you use an idea, a language, or a skill, you strengthen it, reinforce it, and make it more likely to be used again. That’s known as positive feedback, or snowballing. Anything which alters its environment to increase production of itself is playing the game of increasing returns.
Control from the Bottom Up When everything is connected to everything in a distributed network, wide and fast moving problems route around any central authority. Overall governance must arise from interdependent acts done locally in parallel, and not from a central command.
Grow by Chunking Allow complex systems to emerge out of the links among simple systems that work well and are capable of operating independently. Attempts to install highly complex organization, without growing it, inevitably lead to failure. Complexity is created by assembling it incrementally from simple modules that can operate independently.
Building the Sustainable Organization through Acclimatized, Creative Balance in the HR System 21
Honour Your Errors The process of going outside the usual method, game, or territory is indistinguishable from error. Even the most brilliant act of human genius is an act of trial and error. System evolution can be thought of as systematic error management. These heuristics characterize the behaviour of living systems that are adapting, creating, and thriving, and so are useful in thinking about the connectivity, commitments, culture and capabilities as critical components of organizational sustainability. In the next section we combine the living systems principles for complex resource-based advantage with the four C’s for organizational sustainability, in order to generate ideas for sustainable management through HR practices, and to offer some possible specifications for an HR architecture that is coherent and self-reinforcing. THE 4 C’S MODEL AND HR PROCESSES WITH A LIVING SYSTEMS VIEW
The living systems principles are broadly interpretable across organizational system boundaries. However, for our purposes we will consider the first three – distribute being, pursue multiple goals, and maximize the fringes – as they apply to the view outward from the organization, or to the top half of the 4 C’s model, to connectivity and commitments. The latter three – control from the bottom up, grow by chunking, and honour your errors, we will consider with an internal organizational focus (the lower portion of the 4C’s model). The fourth principle, cultivate increasing returns, serves as a central credo to sustainable organizations, so we will consider that from both an inward and outward view.. Our aim is to elaborate ideas for developing capacity in each of the 4C’s, while maintaining a coherent approach guided by some relevant living systems principles. CONNECTIVITY: RELEVANT LIVING SYSTEMS PRINCIPLES
The principle of cultivating increasing returns is useful in thinking about the development of internal resources for connectivity in the sustainable organization. Opportunities for positive reinforcement can be encouraged through linking the organization’s reputation with its internal identity in a virtuous cycle, by continuously relating organizational outcomes to societal objectives, and making adjustments for gaps between these two dimensions to build progress toward societal level sustainability. Distribute being means nesting the organizational identity in institutions and relationships outside its borders, which requires managers to form connections across organizational boundaries and expand the scope of the firm beyond insular concerns. Under connectivity, the heuristic of maximizing the fringes provides a provocation to managers to open generative dialogue with a wide range of stakeholders on the role of the organization in society and to
22 Enhancing Organizational Growth Through Innovation and Creativity: Issues, Opportunities and Challenges
experiment with stakeholders in identifying opportunities for organizational value creation. Pursuing multiple goals means embracing plurality and creating space for alternative methods of connecting with constituents in these conversations, which will enable the development of internal resources through and influence decisions about the organization’s direction. CONNECTIVITY: LEVERAGE POINTS IN THE HR SYSTEM AND PROCESSES
Connectivity, or a societal level, systems-based cognitive positioning of the organization within a globalized environment, can be enhanced by building business cases for change on a broad conception of the organization’s role in society (OD); by foregrounding global ecological and social trends into the environmental scanning at the front end of HR planning processes (HRP); by arranging developmental secondments of high potential employees within stakeholder-responsive organizations – in not-for-profits, or in customer plants, for example (TM); and by inviting civil society representatives in as speakers in corporate training programs, to offer an outside, perhaps critical, view of the organization and to provoke reflection (T&D). Expanding mindsets and re-framing the conception of the organization is a critical component to building greater contextual connectivity, and there several key roles for HR in helping make that happen. Indeed, “[t]he ability to identify and help others discover their mind-sets and mental models, and the capability to change those mind-sets when necessary, are possibly among the most critical capabilities an HR professional can have or acquire” COMMITMENTS: RELEVANT LIVING SYSTEMS PRINCIPLES
Cultivating increasing returns provides some insight into how internal resources around commitments can be encouraged in the sustainable organization. This principle implies creating positive reinforcement through developing commitments that are strategic leverage points for the organization. Including stakeholders in the full cycle of planning processes for developing codes and strategies, from scanning to evaluation, will support this synergistic aim. The heuristic of distributing being encourages the organization to eradicate arbitrary boundaries through developing shared goals with a range of stakeholder groups. Broadening the scope of the firm means that organizational identity may be built through the development of a mission that extends beyond organizational level sustainability, one that is aimed toward creating value on multiple fronts. Through maximizing the fringes, debate may be encouraged within the organization regarding the commitments that are being advanced, encouraging a more robust set of goals, codes and strategies. Pursuing multiple goals in the sustainable organization also translates to collaborative
Building the Sustainable Organization through Acclimatized, Creative Balance in the HR System 23
interaction with stakeholders in goal setting as a way to incorporate stakeholder perspectives and aspirations. Through developing an inclusive mission that represents diverse aims, the creation of value on multiple fronts will be made possible. COMMITMENTS: LEVERAGE POINTS IN THE HR SYSTEM AND PROCESSES
Building capacity for making sustainable commitments, which means explicitly installing the aim of value creation on social, economic, and ecological fronts into the organizational ‘meaning’ architecture (mission, vision, goals), is a key role of the HR system. Organization design should follow the intended function of multi-front objectives (OD); succession management systems can deliberately expose developing leadership candidates to organizational functions that focus on different aspects of ‘triple bottom line’ ; upstream development of talent pools (e.g., funding information sessions to primary schools programs) can include awareness building on the need to create environmental and social value along with economic prosperity (TM); and career development processes can incorporate a broad conception of the organization to allow greater space for employees to ‘find their passion’ and get engaged in the business of value creation (T&D). CULTURE: RELEVANT LIVING SYSTEMS PRINCIPLES
Building internal resources in the area of culture can be enlightened by the living systems principle of cultivating increasing returns by seeking integration on grounds of like values and creating value-based networks of communities of interest to accomplish this goal. In the sustainable organization, managers must work to create meanings around sustainability that will encourage mindsets enabling innovation and change towards more sustainable practices. The heuristic of control from the bottom up illuminates the need for systematic inclusion of employees and business partners with different cultural and cognitive influences in policy setting in the organization. This enrichment of the workplace should encourage the flow of information between levels in the organization through developing a culture of engagement. The directive to grow by chunking in the culture of the sustainable organization promotes an emphasis on learning, where local innovation is inspired by the cognitive diversity embodied in organizational teams. CULTURE: LEVERAGE POINTS IN THE HR SYSTEM AND PROCESSES
The three challenges for HR professionals in the coming decade: intimately knowing the business they are supporting, demonstrating that their work is relevant to that business, and maintaining a focus on positive organizational
24 Enhancing Organizational Growth Through Innovation and Creativity: Issues, Opportunities and Challenges
values – and they warn of the dangers of over committing on the first two to get ‘a seat at the table’, then forgetting the third, at the expense of long-term organizational health. The HR function can help foster a sustainable culture by foregrounding positive values in change management and organizational communication processes (OD); by including consideration of softer, intangible skills like leadership and learning capacity in assessing HR supply and demand (HRP); by including values-screens in recruitment and selection processes through behavioural-based interviewing (TM); and by providing training on understanding and interpreting the values-in-action, and in their application to corporate policy. CAPABILITIES: RELEVANT LIVING SYSTEMS PRINCIPLES
In the area of capabilities, the sustainable organization can be directed to cultivate increasing returns by seeking to develop constantly evolving capabilities that are aligned with their global organizational strategy. This alignment will serve to create positive reinforcement between the evolving strategies and the dynamic capabilities that can help both to create and to realize these strategies. The deliberate use of language and symbols will assist to reinforce and establish certain capabilities over time as core competencies of the sustainable organization. By engaging in meaningful partnerships with stakeholder groups, a democratization of the workplace may be encouraged. Growing by chunking encourages local innovation through developing leadership capabilities that legitimate a sustainability frame and give permission for innovating towards more sustainable practices. This heuristic illuminates the importance of building capacity for continuous learning for the sustainable organization in a rapidly changing environment. CAPABILITIES: LEVERAGE POINTS IN THE HR SYSTEM AND PROCESSES
Capabilities for sustainable organizational management include leadership, learning, innovation and stakeholder inclusion, and the HR function is instrumental in building capacity in each of these areas. Fostering and facilitating ‘sustainability conversations’ among senior leaders can help to clarify the various conceptions of sustainability at work within the organization, and can lead to more concerted action (OD); up and coming leadership candidates can be assessed for their capacity to think integrative regarding diverse stakeholder needs (HRP); performance evaluations can include deliberate reflective practice, in which the person under evaluation considers what was learned from successes and disappointments over the past period (TM); and leaders are groomed to be adept at engaging a variety of stakeholders in different situations – employees on the job, community constituents at a town hall meeting, or a meaningful customer interface (T&D).
Building the Sustainable Organization through Acclimatized, Creative Balance in the HR System 25
CONCLUSION
Deep challenges are facing the globe: environmental degradation, social injustice, and a growing disparity in the distribution of economic prosperity. Advancement towards global sustainability relies heavily on meaningful engagement of the business sector, which in turn depends on building effective, sustainable organizations. Creative, adaptive organizations are those that build and align intangible organizational resources in ways congruous with their operating environment. Since the global operating environment of most organizations is becoming increasingly complex, we contend that a complex process view of resource development is appropriate and helpful. By combining the 4 C’s of managing for organizational sustainability – connectivity, commitments, culture and capabilities – and living systems principles via Complex RBV – distribute being, pursue multiple goals, maximize the fringes, cultivate increasing returns, control from the bottom up, grow by chunking, and honour your errors – we open a wide array of ideas for bringing creative, adaptive coherence to the HR systems of would-be sustainable organizations. Managers of sustainable organizations must operate in forward gear in an increasingly complex global environment, and they must do more than simply hope that strategic resources emerge. The ideas offered here may allow managers to act coherently in constructing the conditions for the emergence of sustainable organizations, to implement adaptive HR policies, and to build organizations that work for their stakeholders and, more broadly, for the global human and ecological good. REFERENCES [1] Amit, R and P J H Schoemaker (1993), “Strategic assets and organizational rent”, Strategic Management Journal, Vol 14, No.1, pp 33–46. [2] Barnett, M L (2004), “Are globalization and sustainability compatible?”, Organization and Environment, Vol 1, No. 4, pp 523–32. [3] Colbert, B A (2004), “The complex resource-based view: Implications for theory and practice in strategic human resource management,” Academy of Management Review, Vol 29, No. 3, pp 341–58. [4] DeSimone, L D and F Popoff (1997), “Eco-efficiency: The business link to sustainable development,” Cambridge, MA: MIT Press. [5] Morel, B and R Ramanujam (1999), “Through the looking glass of complexity: The dynamics of organizations as adaptive and evolving systems,” Organization Science, Vol 10, No. 3, pp 278–93. [6] Pfeffer, J (2005), “Changing Mental Models: HR’s Most Important Task,” Human Resource Management, Vol 44, No. 2, pp 123–28.
26 Enhancing Organizational Growth Through Innovation and Creativity: Issues, Opportunities and Challenges
[7] Wheeler, D, B Colbert and Freeman (2003), “Focusing on Value: Reconciling Corporate Social Responsibility, Sustainability and a Stakeholder Approach in a Network World,” Journal of General Management, Vol 28, No. 3, pp 1–28. [8] Wheeler, D, K McKauge, J Thomson, R Davies, J Medayle and M Prada (2005), “Creating Sustainable Local Enterprise Networks,” MIT Sloan Management Review, Fall, pp 33–40. [9] Wright, P M, Dunford, B B and Snell (2001), “Human resources and the resource based view of the firm,” Journal of Management, Vol 27, pp 701–21. [10] Wright, P M and Snell, S A (2005), “Partner or guardian? HR’s challenge in balancing value and values,” Human Resource Management, Vol 44, No. 2, pp 177–82.
Building Employee Perceptions to Achieve Favourable Work Attitudes and Outcomes: An Empirical Study of Doctors *
Dr Luxmi, **Vibhuti Yadav and ***Harleen Kaur
The paper aims at exploring employee perceptions in the form of perceived organizational support and studying its impact on work attitude i.e. organizational commitment and work outcome i.e. organizational role stress. The paper is driven theoretically by the social exchange theory, the concept of perceived organizational support (POS) which is the commitment of the organization towards the employee, the norm of reciprocity as well as the other relevant literature in the human resource management and organizational behaviour research. With increasing competition managing and retaining employees has become a critical issue for the present organizations. Medical profession requires doctors to be committed and stress free in order to perform efficiently. A major factor that affects on job behaviour is the perceptions about the place of work. Thus, the study aims at exploring the role of building positive organizational perceptions in order to achieve most efficient employee work performance. This paper contributes to the limited body of knowledge about the psychological processes underlying the formation of organizational commitment and reducing role stress through the perspectives of the social exchange theory and the organizational support theory. Very few studies have been conducted related to doctors and the overall medical profession, thus the study provides an insight into a prospective area of research. INTRODUCTION
Medical profession is one of the most respected professions; however it also a profession which is constantly under scanner as even small mistakes made by doctors could have severe consequences. With the increasing level of competition and ever increasing work load employee burnout and turnover in hospitals has increased over time. This paper aims to investigate the relationship between perceived organizational support (POS), organizational commitment (OC) and organizational role stress (ORS) among doctors. Workrelated stress in employees is believed to result in physiological, psychological and behavioural consequences which are detrimental to the health of the employee and the effectiveness and efficiency of the organization. On the other hand, a high level of perceived organizational support has been associated with many positive implications for both *Lecturer,
University Business School, Panjab University Scholar, University Business School, Panjab University ***Research Scholar, University Business School, Panjab University **Research
28 Enhancing Organizational Growth Through Innovation and Creativity: Issues, Opportunities and Challenges
employees and management, such as increased organizational commitment, job satisfaction and reduced turnover rates (Eisenberger et al., 1997). According to organizational support theory, the development of perceived organizational support (POS) is based on the employees' tendency to view their favourable or unfavourable treatment as an indication that the organization favours or disfavours them (Rhoades and Eisenberger, 2002). Employees are said to develop global beliefs regarding the extent to which their organization values their contributions and genuinely cares about their wellbeing (Eisenberger et al., 1997). The concept of perceived organizational support is based on a social exchange interpretation of organizational commitment, whereby employees extend their effort and loyalties to the organization in return for the material commodities and social rewards it can bestow. POS theory has been found to be related to, yet distinct from, both Leader-Member exchange and supervisor support (Rhoades and Eisenberger, 2002). However, while the latter two constructs describe the relationship between subordinates and individual supervisors, acting as agents of the organization, the concept of POS describes the relationship that an employee has with their organization as a whole (Allen et al., 2003; Borchgrevink and Boster, 1997). Thus, the employee views their organization's favourable or less favourable treatment towards them, not through the actions of their immediate superiors, but through the human-like characteristics assigned to the policies, norms and culture of the organization. Organizational Commitment is highly valuable. Studies have highlighted that commitment has a great impact on the successful performance of an organisation. This is because a highly committed employee will identify with the goals and values of the organization, has a stronger desire to belong to the organization and is willing to display greater organizational citizenship behaviour i.e., a willingness to go over and beyond their required job duties. An effort to expand the concept of commitment has resulted in the increasing popularity of a tri-component model developed by Meyer and Allen. Based on the multidimensional nature of organizational commitment, there is growing support for a three-component model proposed by Meyer and Allen (1991). The three components are: • • •
Affective Commitment: Psychological attachment to organization. Normative Commitment: Perceived obligation to remain with the organization. Continuance Commitment: Costs associated with leaving the organization.
Building Employee Perceptions to Achieve Favourable Work Attitudes and Outcomes 29
Stress is an important psychological concept that can affect health, wellbeing and job performance in negative dimensions. Stress is a word derived from Latin word ‘Stingere’ meaning to draw tight. It is regarded as a force that pushes a physical or psychological factor beyond its range of stability, producing a strain within the individual. Organizational role stress arises from the difference between role expectations from the various role senders in an organization. Research suggests that a common flaw in hospitals is that they fail to address the issues associated with doctor’s wellbeing, such as the experience of work-related stress and burnout and the extent to which the doctor’s feel they are supported and valued (Anderson et al., 2001). Stress among employees is associated with reductions in productivity, absenteeism, low organizational commitment and high turnover, and these costs are directly linked to reduced organizational effectiveness and financial loss (Lingard, 2003; Reynolds and Tabacchi, 1993). The regular occurrence of these role stressors that prevent employees from meeting organizational expectations can evoke a variety of outcomes commonly recognised as symptoms of role strain. These include low job satisfaction, absenteeism, lower organizational commitment, poorer job performance, negative attitude toward work, tension and anxiety (Zohar, 1994). Faulkner and Patiar (1997) identified dealing with ambiguous situations as one of the most common sources of stress. Ross and Boles (1994) suggested that supervisory and managerial support reduces job-related strains such as role conflict and role ambiguity. This claim is supported by a number of findings that suggest supervisory and leadership behaviours actually increase role clarity (Hampton et al., 1986; Johnson et al., 1989). Both employee and employer can benefit from high levels of POS. Employees experience positive outcomes - such as a decrease in job-related stress, an increase in positive job-related affect, high levels of job involvement, reduced withdrawal behaviour, increased organizational commitment and a desire to remain with the organization. This results in positive organizational outcomes such as reduced turnover, increased affective commitment and higher productivity and performance (Eisenberger, et al., 2001). Smith, Gregory and Cannon (1996) claimed that extrinsic factors such as organizational support, supervisor relations and immediate work environment all contribute to employee's level of job satisfaction and can result in a positive attitude toward the organization. Extrinsic factors such as organizational support, supervisor relations and immediate work environment all contribute to a employee's level of job satisfaction and can
30 Enhancing Organizational Growth Through Innovation and Creativity: Issues, Opportunities and Challenges
result in a positive attitude toward the organization. Doctor’s turnover is recognized a major problem within the hospitals. This notion, along with the previous finding that doctors are more likely to experience lower levels of job satisfaction, suggests that doctors may be more likely to experience stressrelated symptoms and more prone to having negative perceptions of the extent to which their organization supports them. Thus, it becomes essential to study the impact of favorable employee perceptions about the organization in order to achieve positive work attitudes and outcomes. METHODOLOGY
Present Study The authors attempt to study perceived organizational support and its impact on organizational commitment and organizational role stress among doctors. In order to conduct the study junior resident doctors from a leading hospital in Chandigarh were taken.
Objectives • • • •
To study the level of perceived organizational support, organizational commitment and organizational role stress among doctors. To study the impact of perceived organizational support on organizational commitment and organizational role stress of doctors. To find the correlation between perceived organizational support and three sub dimensions of organizational commitment and ten sub dimensions of organizational role stress. To compare organizational commitment and organizational role stress using psycho-demographic variables i.e. gender and marital status.
Hypotheses To test the validity and applicability of given objectives and to gain an insight into the job behaviour of doctors involved in the study following hypothesis have been developed. H1
-
There
is
high
level
of
Perceived
organizational
support,
Organizational commitment and Organizational role stress among doctors. H2a - Perceived organizational support has positive and significant impact on the organizational commitment of doctors.
Building Employee Perceptions to Achieve Favourable Work Attitudes and Outcomes 31
H2b - Perceived organizational support has negative and significant impact on the organizational role stress of doctors. H3a–
Perceived organizational support has significant impact on all three sub-dimensions of organizational commitment of doctors.
H3b–
Perceived organizational support has significant impact on all ten sub-dimensions of organizational role stress of doctors.
H4a–
There exists a significant relationship among psycho-demographic variables i.e. gender and marital status and organizational commitment of doctors.
H4b–
There exists a significant relationship among psycho-demographic variables i.e. gender and marital status and organizational role stress of doctors.
RESEARCH DESIGN
The study is descriptive cum empirical in nature. The present study is confined to cover three dimensions i.e. perceived organizational support and its impact on organizational commitment and organizational role stress of doctors. In order to conduct the study doctors from a leading hospital in Chandigarh were taken as sample on random basis. Out of total of 140 respondents: • •
112 are males and 28 are females. 42 are married and 98 are unmarried.
Selection of Sample The study was conducted on a sample of doctors working in a leading hospital in Chandigarh. A total of 140 junior resident doctors on random basis were taken.
Data Collection Tools The Questionnaire was prepared for the doctors. The Questionnaire started with information relating to demographic profile of the respondents i.e. Gender and marital status. Followed by three parts i.e. Part I comprising of a standardized questionnaire relating to Perceived organizational support and Part II carried the standardized questions to measure the level of Organizational commitment and Part III a standardized questionnaire to measure organizational role stress.
32 Enhancing Organizational Growth Through Innovation and Creativity: Issues, Opportunities and Challenges
Perceived Organizational Support (POS) Questionnaire To measure POS standardized questionnaire developed by Eisenberger et al. was taken. The measure includes items that measure an employee’s perceptions of the degree to which the organization values the worker’s contributions and items about actions that the organization might take that would affect the well being of the employee.
Organizational Commitment (OC) Questionnaire OC standardized questionnaire developed by Allen and Meyer was taken. The variables relating to Organizational Commitment mentioned in the questionnaire have been categorized into three measures. • • •
Affective Commitment (AC) - Measures an employee’s emotional attachment to, identification with and involvement in the organization. Continuance Commitment (NC) - Measures employee’s commitment associated with the costs that employees perceive are related to leaving the organization. Normative Commitment (CC) - Measures employee’s commitment associated with perceived obligations to remain with the organization.
Organizational Role Stress Scale (ORS) questionnaire: •
• • • • • • •
Organizational role stress standardized questionnaire developed by Udai Pareek was taken to assess the degree of stress arising from various aspects of the job. Organizational role stressors consisted of ten dimensions, namely: Inter-role Distance (IRD) – The conflict arises when an individual occupies more than one role. Role Stagnation (RS) - Feeling of being stagnated in the same role. Role Expectation Conflict (REC) – It arises due to conflicting expectations or demands by different role senders. Role Erosion (RE) - When credit for tasks performed in one’s role is given to others or when some tasks belonging to one’s role are performed by others. Role Overload (RO) – When the role occupant feels that his/her role expectations are too many or too high. Role Isolation (RI) – When there is incompatibility of one’s role with other employee’s roles in the organization. Personal Inadequacy (PI) – A feeling of insufficient knowledge, skills or training to undertake a role effectively.
Building Employee Perceptions to Achieve Favourable Work Attitudes and Outcomes 33
• • • •
Self-role Distance (SRD) – It arises out of the conflict between selfconcept about the role and the expectations from the role, as perceived by the role occupant. Role Ambiguity (RA) – Lack of clarity about the various expectations that an employee has from his/her role. Resource Inadequacy (RIn) – It arises when the resources required by the role occupant for performing the role effectively are unavailable. The items were scored on a five-point Likert scale from strongly disagree to strongly agree.
Reliability and Validity Analysis Reliability can be defined to the extent to which a variable is consistent in what it is intended to measure. In the present research, the reliability of questionnaires was determined by using Cronbach’s Coefficient alpha. Table 1: Reliability Coefficients Number of items Cronbach Alpha (∝)
POS 17 0.830
OC 18 0.817
ORS 50 0.953
The reliability coefficient indicated that the scale for measuring is quite reliable. An alpha value of 0.60 and 0.70 or above is considered to be the criterion for demonstrating internal consistency of new scales and established scales respectively. ‘Validity’ represents the extent to which a measure correctly represents the concept of study. As standardized questionnaires were used for the purpose of collecting data Validity testing has already been performed by the respective authors.
Analysis of Data To arrive at pertinent analysis, the collected data was put to statistical analysis using SPSS package. The tools, which were employed to test the drafted hypothesis for analysis included: Analysis of Variance (ANOVA), Descriptive and Co-relation Analysis. After scoring the questionnaire the data was tabulated for each variable being studied separately.
Hypothesis Testing H1–There is high level of Perceived organizational support, Organizational commitment and Organizational role stress among doctors.
34 Enhancing Organizational Growth Through Innovation and Creativity: Issues, Opportunities and Challenges
Table 2: Descriptive Statistics Perceived organizational support (POS) Organizational commitment ( OC) Affective commitment (AC) Normative commitment (NC) Continuance commitment (CC) Organizational role stress (ORS) Inter-role Distance (IRD) Role Stagnation (RS) Role Expectation Conflict (REC) Role Erosion (RE) Role Overload (RO) Role Isolation (RI) Personal Inadequacy (PI) Self-role Distance (SRD) Role Ambiguity (RA) Resource Inadequacy (RIn)
N 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140
Mean 3.4441 3.2742 3.4119 3.2464 3.1643 3.0037 3.2829 2.9800 3.0843 2.9671 3.0771 3.0243 2.8757 2.9143 2.8583 2.9829
Means of all three variables i.e. Perceived organizational support (POS), Organizational commitment (OC) and Organizational role stress (ORS) are above the scale mean (3). The level of POS among doctors is moderately-high with a mean of 3.44. This shows that doctors perceive that the hospital they are employed in supports them. The overall level of Organizational Commitment is 3.27. With regards sub-dimensions of organizational commitment; the level of affective commitment is the highest with a mean of 3.41, followed by normative commitment (3.25) and the lowest is continuance commitment with a mean of 3.16. This shows that doctors are more committed to the hospital because they like the hospital and not because or certain obligation towards the hospital. The overall organizational role stress level is 3.00. The sub dimensions of organizational role stress score around the scale mean with four of them i.e. inter-role distance, role expectation conflict, role overload and role isolation being slightly above the scale mean and rest six dimensions i.e. role stagnation, role erosion, personal inadequacy, self role distance, role ambiguity and resource inadequacy being slightly below the scale mean. The highest being that of inter role distance (3.28). Therefore, we fail to reject H1. H2a-Perceived organizational support has positive and significant impact on the organizational commitment of doctors.
Building Employee Perceptions to Achieve Favourable Work Attitudes and Outcomes 35
Table 3: Correlations between POS and OC POS 1
POS
Pearson Correlation Sig. (2-tailed) N **. Correlation is significant at the 0.01 level (2-tailed).
OC .629** .000 140
140
Pearson's Correlation coefficient was used to test the hypothesis, and the results show a positive and highly significant relationship (.629**) between Perceived Organizational Support (POS) and Organizational commitment (OC). It implies that reciprocation affect of POS on OC is positive and significant. Doctors with high level of POS exhibit high level of commitment towards the hospital they are employed in. Thus, we fail to reject H2a. H2b - Perceived organizational support has positive and significant impact on the organizational role stress of doctors. Table 4: Correlations between POS and ORS POS
Pearson Correlation Sig. (2-tailed) N **. Correlation is significant at the 0.01 level (2-tailed).
POS 1
ORS -.566** .000 140
140
Pearson's Correlation coefficient was used to test the hypothesis, and the results show a negative and highly significant relationship (-.566**) between Perceived Organizational support (POS) and Organizational role stress (ORS). Doctors with high level of POS exhibit low level of organizational role stress as they feel supported by the hospital they are employed in. Thus, we fail to reject H2b. H3a – Perceived organizational support has significant impact on all three sub-dimensions of organizational commitment of doctors. Table 5: Correlations between POS and OC Sub-dimensions POS Pearson Correlation 1 Sig. (2-tailed) N 140 **. Correlation is significant at the 0.01 level (2-tailed). POS
AC .637** .000 140
NC .615** .000 140
CC .218** .010 140
Perceived organizational support (POS) has a positive and highly significant relationship with all three sub-dimensions of Organizational commitment i.e. affective, normative and continuance commitment. Therefore, we fail to reject H3a.
36 Enhancing Organizational Growth Through Innovation and Creativity: Issues, Opportunities and Challenges
H3b–Perceived organizational support has significant impact on all ten sub-dimensions of organizational role stress of doctors. Table 6: Correlation between POS and Sub-dimensions of ORS POS IRD POS Pearson 1 Correlation .339** Sig. (2.000 tailed) N 140 140 **. Correlation is significant at
RS REC RE RO RI PI SRD RA RIn .517** .555** .452** .369** .465** .454** .376** .518** .516** .000 .000 .000 .000 .000 .000 .000 .000 .000 140 140 140 140 the 0.01 level (2-tailed).
140
140
140
140
140
Perceived organizational support (POS) has a negative and highly significant relationship with all ten sub-dimensions of Organizational role stress (ORS) i.e. inter-role distance, role stagnation, role expectation conflict, role erosion, role overload, role isolation, personal inadequacy, self-role distance, role ambiguity and role inadequacy. Therefore, we fail to reject H3b. H4–There exists a significant relationship among psycho-demographic variables i.e. gender and marital status and: • •
Organizational commitment Organizational role stress of doctors. Table 7: Correlations between OC, ORS and Psycho-demographic variables
OC
Pearson Correlation 1 Sig. (2-tailed) N 140 ORS Pearson Correlation 1 Sig. (2-tailed) N 140 **. Correlation is significant at the 0.01 level (2-tailed).
Gender -.279** .001 140 .139 .103 140
Marital .236** .005 140 -.144 .089 140
Both the psycho-demographic factors i.e. gender and marital status taken in the study showed a highly significant correlation with organizational commitment. None of the psycho-demographic factors showed a significant relationship with organizational role stress. Gender showed negative while marital status showed a positive relationship in case of both the dependent variables.
Building Employee Perceptions to Achieve Favourable Work Attitudes and Outcomes 37
Table 8: ANOVA OC Marital Status Between Groups Within Groups Total Gender Between Groups Within Groups Total ORS Marital Status Between Groups Within Groups Total Gender Between Groups Within Groups Total
Sum of Squares 2.309 39.286 41.595 3.234 38.361 41.595 Sum of Squares 40.496 41.354 .794 40.561 41.354
df
Mean Square
F
Sig.
1 138 139 1 138 139 df
2.309 .285
8.110
.005
3.234 .278
11.633
.001
Mean Square
F
Sig.
.859 .293
2.926
.089
.794 .294
2.700
.103
1 138 139 1 138 139
The ANOVA tables show that organizational commitment does not differ significantly among various groups based on the psycho-demographic factors taken in the study. Therefore, we fail to reject H4a and fail to accept H4b
Summary of Results Following points summarize the results of the study: • •
•
•
The level of all three variables perceived organizational support (POS), organizational commitment (OC) and organizational role stress (ORS) is moderately high among doctors, both being above scale mean 3. Perceived organizational support was positively and highly correlated with organizational commitment. With regards sub-dimensions of OC, Perceived organizational support had significant positive correlation with affective, normative as well as continuance commitment. Perceived organizational support was negatively and highly correlated with organizational role stress. With regards sub-dimensions of ORS, Perceived organizational support had significant negative correlation with all ten sub-dimensions. Organizational commitment showed negative relationship with gender and ORS showed negative relationship with marital status. Both gender and marital status variables show highly significant relationship with OC. However, no significant correlation was found between organizational role stress and any of the psycho-demographic variables under study.
38 Enhancing Organizational Growth Through Innovation and Creativity: Issues, Opportunities and Challenges
DISCUSSION
Doctors have little input into the operating procedures and decision-making processes that regulate their service environment. Furthermore, while a hospital’s organization management places a strong emphasis on patient care, it has been recognised that the environment in which the doctors work can often inhibit their ability to provide a truly satisfying service (Vallen, 1993). In addition, Davidson, Manning and Timo (2001) claim that employees' perception of their work environment or climate has a substantial influence on the quality of service and level of customer satisfaction. Work-related stress has been linked to reduced productivity, absenteeism, low organizational commitment and high staff turnover and all of these contribute to reduced service and financial loss for the employer organization (Lingard, 2003). Thus, organization should be alert for behavioural symptoms related to stress such as reduced enthusiasm, high absenteeism, tardiness, and decreased productivity. Research indicates that POS is one of the factors that contribute to work-related stress and burnout. Thus, identification of burnout-related behaviours may indicate a need for managers to implement strategies to reassure employees of the organization's commitment toward them. To enhance employee levels of POS, organization needs to ensure that programs are in place that offer encouragement and reward good performance. These might include employee of the month programs, letters of commendation and internal promotional opportunities (Rowley and Purcell, 2001). Since supervisor support has been shown to be important in determining POS, organizations should also ensure that their higher administrative supervisors are seen to be approachable, empathetic and available to address any work related grievances that the doctors may have. Perceived organizational support has an impact on both employee attitude and behaviour towards the organization. While employee attitude in the form of organizational commitment will help in retaining best talent in the organization, a positive behavior in the form of reduced work/role stress would help in improving employee efficiency and productivity at work. REFERENCES [1] Allen, DG, Shore, LM, and Griffeth, RW (2003), “The role of perceived organizational support and supportive human resource practices in the turnover process”, Journal of Management, Vol 29, No1, pp 99–118. [2] Amabile, T M (1993), “Motivational synergy: toward new conceptualisations of intrinsic and extrinsic motivation in the workplace”, Human Resources Management Review, Vol 3, No 3, pp 185-201. [3] Anastasi, A (1982), Psychological Testing (5th ed) New York: Macmillan.
Building Employee Perceptions to Achieve Favourable Work Attitudes and Outcomes 39
[4] Anderson, BA, Provis, C, and Chappel, SJ (2001), “When it's just too hard to smile”, Australian Journal of Hospitality Management, Vol 8, No 2, pp 69-72. [5] Armeli, S, Eisenberger, R, Fasolo, P, and Lynch, P (1998), “Perceived organizational support and police performance: The moderating influence of socio-emotional needs”, Journal of Applied Psychology, Vol 83, No 4, pp 288-297. [6] Borchgrevink, CP, and Boster, FJ (1997), “Leader member exchange development: A hospitality antecedent investigation”, International Journal of Hospitality Management, Vol 16, No 3, pp 241-259. [7] Buick, I, and Thomas, M (2001), “Why do middle managers in hotels burn out?”, International Journal of Contemporary Hospitality Management, Vol 13, No 6, pp 304-309. [8] Charles, EP (2005), “The correction for attenuation due to measurement error: Clarifying concepts and creating confidence sets”, Psychological Methods, Vol 10, No 2, pp 206-226. [9] Davidson, M, Manning, M, and Timo, N (2001), “Are customer satisfaction and performance in hotels influenced by organisational climate?”, Australian Journal of Hospitality Management, Vol 8, No1, pp 41-54. [10] Eisenberger, R, Armeli, S, Rexwinkel, B, Lynch, PD, and Rhoades, L (2001), “Reciprocation of perceived organisational support”, Journal of Applied Psychology, Vol 8, No1, pp 42-51. [11] Eisenberger, R, Cummings, J, Armeli, S, and Lynch, PD (1997), “Perceived organisational support, discretionary treatment and job satisfaction”, Journal of Applied Psychology, Vol 82, No3, pp 812-820. [12] Eisenberger, R, Huntington, R, Hutchison, S, and Sowa, D (1986), “Perceived organizational support”, Journal of Applied Psychology, Vol 71, No 4, pp 500-507. [13] Faulkner, B, and Patiar, A (1997), “Workplace induced stress among operational staff in the hotel industry”, International Journal of Hospitality Management, Vol. 16, No 1, pp 99-117. [14] Hampton, R, Dubinsky, AJ, and Skinner, SJ (1986), “A model of sales supervisor leadership behaviors and retail salesperson's job-related outcomes”, Journal of the Academy of Marketing Science, Vol 14, pp 33-42. [15] Johlke, MC, Stamper, CL, and Shoemaker, ME (2002), “Antecedents to boundary spanner perceived organisational support”, Journal of Managerial Psychology, Vol 17, No2, pp 116-128. [16] Johnson, MW, Parasuraman, A, and Futrell, CM (1989), “Extending a model of sales person role perceptions and work related attitudes: Impact of job tenure”, Journal of Business Research, Vol 18, pp 269-290. [17] Lingard, H (2003), “The impact of individual and job characteristics on 'burnout' among civil engineers in Australia and the implications for employee turnover”, Construction Management and Economics, Vol 21, No 1, pp 69-80. [18] Reynolds, D, and Tabacchi, M (1993), “Burnout in full-service chain restaurants. The Cornell Hotel and Administration Quarterly”, Vol 34, No2, pp 62-68.
40 Enhancing Organizational Growth Through Innovation and Creativity: Issues, Opportunities and Challenges
[19] Rowley, G and Purcell, K (2001), “ASs cooks go, she went’: Is labour churn inevitable?” International Journal of Hospitality Management, Vol 20, pp 163-185. [20] Smith, K, Gregory, SR, and Cannon, D (1996), “Becoming an employer of choice: Assessing commitment in the hospitality workplace”, International Journal of Contemporary Hospitality Management, Vol 8, No 6, pp 3-9. [21] Vallen, GK (1993), “Organizational climate and burnout, The Cornell Hotel and Administration Quarterly, Vol 34, No 1, pp 54-59. [22] Zohar, D (1994), “Analysis of job stress profile in the hotel industry”, International Journal of Hospitality Management, Vol 13, No 3, pp 219-231.
Internal Branding an Effective Tool for Employee Retention *
Swati Bisht
INTRODUCTION
Employees are the key to the success of any organization. The world is getting competitive and the present time is only for the survival of the fittest. There is a rat race amongst companies to attract the best in order to deliver the best. Companies across the globe are realizing that long term success will come through long term employees .In this quest to retain the best the organizations are making sincere yet superficial efforts. Sincere yet superficial as they are doing everything yet losing on the crux .Fringe benefits, education, insurance for the families, flexible timings, good salaries and a lot more ,yet companies fail to accomplish their goal of instilling belongingness amongst its employee towards the organization. Why does it happen at all? Answer to this will surely be subjective and would vary from organization to organization but every organization must come to terms with the answer to this question .Growing Work Pressures, organizational politics, negativity in the work environment, lack of personal growth, lack of innovation in organizational practices and stagnant lifestyles could be some reasons that could lead to the employees going for a change of organization. Therefore employee engagement will come when Organizations brand themselves not just to their end customers but when they equally try and brand themselves to their own employees. It is said happy employees will contribute more to organization. Happy employees will value the organization they work for and contribute a longer inning to the organization. The organizations therefore must unleash the true value of their organization and employees through internal branding which will truly lay the foundation for employee engagement. The paper aims to examine the reasons for employee disengagement with the organization he /she works for and aims to understand the best practices that would lead to employee engagement. LOOKING INWARD -INTERNAL BRANDING
Before jumping to internal branding, it is important to throw light on what a brand is A Brand is an intangible asset and is a sum of identity, image, and aspiration. It gives identity to products, people and organizations.
*Associate
Professor and Dean PGDM, Institute of Management Studies, Dehradun-248009
42 Enhancing Organizational Growth Through Innovation and Creativity: Issues, Opportunities and Challenges
“All great brands have one purpose–to create a unique and strong emotional bond between themselves and their audience” —Alan Begstrom & Dannielle Blumenthal
Great Brands Have to be Strong Holistically An internal brand can be defined as • • •
Representative of the culture and values of your organization. Image is a representation of the vision and mission of your organization. Aspiration Value of what your organization will do and stand for.
Differentiation plays an essential role in internal branding. Differentiation is the mark of distinction -- how your offering to your employees differ from the offering of the customer. Companies play on this differentiation to create a strong internal brand. Differentiation complements and supports efforts of the organization and its employees, its identity and perceived brand image. Human beings want the best for themselves and therefore internal branding efforts work in the direction of directly or indirectly motivating good human resources towards the organization . Such efforts cement the base for esprit d'corps and serve as an essential recruitment and retention tool.
INTERNAL BRANDING INVOLVES
Which company would not want to be a dream company to work for? The answer to this is obvious every and any company would like to be a dream company. Internal branding will help the company to achieve it dream. But how can a company create strong internal brand that will attract and retain the best employees with them. • • •
Communicating the brand effectively to the employees Convincing employees of its relevance and worth & reinforcing that they are in safe hands Correlating brand value with personal growth
Internal Branding an effective Tool for Employee Retention 43
• •
Coordinating and linking every job in the Organization to delivery of brand essence. Connects employees and the organization
Employee engagement is a strategic approach supported by tactics for driving improvement, creating synergies and stimulating a positive organizational change. The good companies know that developing an employee engagement strategy and linking it to the achievement of corporate goals will help them win in the marketplace. Employees who work at the frontline are the face of an organization and if believe in the brand they work for, they will perform with more conviction. Employers Brand An Employer Brand (like any brand) is what you do, not just what you say! Doing goes a longer way than mere saying. Saying plus doing will leave a better impact “An employer brand can be defined as the sum of all experiences (positive and negative) that people have with your organization before they join, during their stay and after they leave the organization.” —Sanghani, Sveiby 2003. It is a promise that needs to be reconfirmed and re asserted throughout an employee’s career. EMPLOYERS BRAND AND INTERNAL BRANDING
• • • • • •
Smoothens Internal Communication/Marketing Reduce Attrition /Increase Retention Facilitates Employee Engagement Helps in bringing about a change smoothly Builds a sense of loyalty , pride within the organization Communication during turbulent times
44 Enhancing Organizational Growth Through Innovation and Creativity: Issues, Opportunities and Challenges
Internal branding helps in creating cooperation, collaboration and reach the right connection between employees and organizations.
Employee Engagement “Employee Engagement is not just about employee satisfaction - it is about the discretionary effort that differentiates high-performing staff” How can a Company Work Towards Employee Engagement? • • • • • • • • • • • • • •
By organizing regular meetings with its employees to understand what they need Giving the employees a personal touch It all has to start from the top. Give the employees a shared vision (An expression of the collective aspirations of people in an organization, instead of a means to manipulate people to achieve organizational goals and objectives) Give the employees more challenging assignments ( A survey conducted by Business World in 2008 revealed that employees prefer more challenging assignments) Giving the employee more career development and training opportunities Introducing appreciative inquiry for every employee is good at something and it is important to make the stronger employees more strong and give him an environment of positivity. Greater clarity of how the organization is contributing to his career Giving empowerment to the employees so that this autonomy gives them power to take their decisions and they stay motivated More stress relieving workshops Helping the employee find the link between his personal dreams and the organizational values. Regularly acknowledge the efforts of employees and create a distinction between performers and non performers. Effective Grievance Handling tool (example “Reach and Resolve” grievance handling tool (example Honeywell) Share the Wealth Approach ( Example Intel)
It is Said that Employees are Engaged to an Organization When an Employee • • • •
Trusts the organization and the people they work with Is willing to channelize his/ her“ discretionary effort” for furthering the organization’s interest Can see the link between their personal/ career goals and the organizational goals. Believes in the organization and holds a strong affinity towards it.
Internal Branding an effective Tool for Employee Retention 45
•
Doesn’t leave the organization even for higher pay packages in competitive organizations.
CONCLUSION
Transformation in any organization , does not occur instantaneously. It takes a lot of energy and effort to initiate any change, it takes even more energy to build on that momentum and carry on that momentum for a sustainably longer time. Any transformation can be carried successfully in an organization through its people and Internal Branding is today the key to more engaged employees .Give the employees the best so that they deliver the best. Show the employees that as an organization you will take care of their lives, give them more clarity of work, show them a career path , give them a sense of security and listen to them whenever they speak and want to express. For all this the organizations need to be more proactive and the top management of organizations needs to be more open to accepting employees as their partners in success and not just employees .This approach could lead to better employee engagement and hence better branding of the organization externally and internally. Internally ,because any new employee entering the organization will get more faith in the organization seeing older long term employees working with the organization and externally as long employee engagement terms will lead to better image of the organization in the market. New approaches towards employee engagement should be evolved by the Management of an organization so that long term employees can stay and contribute towards the organization. REFERENCES
Books [1] Schein, E H (1970) Organizational Psychology (2ed) Englewood Cliffs, N.J. Prentice Hall. [2] Alderfer, C P (1972) Human Needs in Organizational Settings. New York Free Press of Glencoe. [3] Coffman, C & Gonzalez-Molina, G (2002) A New Model: Great Organizations Win Business by Engaging the Complex Emotions of Employees and Customer.
Journals [4] Bill Faust, Beverly Bethge (2003) Looking inward: How internal branding and communications affect cultural change Design Management Journal Summer 2003, pp 56–63. [5] Buchanan, L (2004), “The Things They Do for Love” Harvard Business Review. 82 12 p19 (2). [6] Excerpt from Follow This Path. Warner Books. The Gallup Management Journal, 12–21.
Comparison of Employee Satisfaction Dimensions Across Various Demographic Characteristics in the BPO Industry Santoshi Sengupta* The BPO industry has been growing with an exceedingly high rate. Notwithstanding the ever rising attrition rate, it has become critical for the companies to satisfy their employees in order to retain them. This paper aims at determining how are various demographic factors associated with the various dimensions of employee satisfaction of the BPO employees. For this, it has considered ten job related variables of employee satisfaction and compared them across five selected demographic variables. The data collected from 500 middle level BPO employees was analyzed using SPSS 16.0. Ttests and Duncan’s mean tests were done to compare the various dimensions of employee satisfaction across selected demographic variables such as gender, marital status, education, age and tenure. Focused group interviews were also taken to get the true picture and to support the result from the quantitative analysis done. The analysis gave some useful findings which have implications for both academicians and practitioners. INTRODUCTION
Job satisfaction has always been a key research domain for scholars, practitioners, and organizational specialists, and it is one of the most regularly researched areas of workplace attitude. Where job satisfaction plays a significant role in employee retention; job dissatisfaction may cost a company in the form of high turnover, lateness, absenteeism, poor performance, and low productivity. According to Al-Ajmi (2001), excessive turnover, absenteeism, and low productivity result in a waste of human power and redundant loss in productivity and profit. Studies conducted all across the globe have shown that many individual variables influence job satisfaction (Ang et al., 1993; Hulin & Smith, 1964; Lee & Wilbur, 1985, Sharma and Jyoti 2006, Chimanikire 2001, Hunjra et al. 2010). India is a rapidly developing country, and there is a need to understand the attitudes of workers, specifically mangers in the BPO sector. Determining job satisfaction of these employees and developing strategies to enhance job satisfaction could empower BPO employees to assume an active role in managing the BPO industry effectively and efficiently; it could also help them remain satisfied and committed to their jobs. A few issues were examined more closely: First, from a theoretical perspective, the job characteristics *Senior
Lecturer, Professional Development Department, Jaypee Institute of Information Technology University, Noida
Comparison of Employee Satisfaction Dimensions Across Various Demographic Characteristics 47
specific to the BPO industry were considered. Second, selected demographic characteristics were considered as the base to compare the dimensions of employee satisfaction. These demographic characteristics were gender, marital status, education, age and tenure. Finally, from a practical point of view, there was a need to provide BPO personnel with the information to make better decisions in terms of enhancing satisfaction, participation, performance and retention of employees. Thus, this study deals with issues that are potentially useful for scholars and practitioners alike. The research question posed for the study is to see how employee satisfaction in a BPO differs by demographic characteristics of gender, marital status, education, age and tenure? The study explored ITES-BPO employees’ satisfaction in terms of ten job related characteristics namely challenges, interpersonal relationships, company policies, career progression, authority, supervision, working conditions, salary, recognition, and accountability. It is expected that the findings of this study will contribute to the literature on Indian ITES-BPO industry and also encompass Asian ITES industry. In line with the objective, the rest of the paper describes the Indian BPO industry; reviews the theoretical background of the study; and elucidates the methodology adopted. Subsequently, the main findings are presented and discussed and finally conclusions and managerial implications of the findings and research areas are discussed for further inquiry and understanding. LITERATURE REVIEW
From an insignificant size in early 2000 to a gigantic size today, the BPO sector has been growing at an extraordinary rate. According to Scholl et al. (2003), India’s revenue from BPO operations was expected to grow from approximately $1 billion in 2002 to $13.8 billion in 2007 and its share of supply was expected to be 57 percent of the offshore BPO market. 2008 was a year of revolution for the Indian IT – BPO sector as it began to re-engineer challenges posed by macro-economic environment, with the worldwide spending aggregate expected to reach nearly USD 1.6 trillion, a growth of 5.6 per cent over the previous year. Software and services exports (includes exports of IT services, BPO, Engineering Services and R&D and Software products) reached USD 47 billion, contributing nearly 66 per cent to the overall IT-BPO revenue aggregate. The flip side of the BPOs revolves around the host of challenges that they have been facing since their very commencement and the principal among these is employee attrition. Reports say that large and established players face an attrition rate of 45% against the industry average of 35%. Employees leave for many reasons and one among them is the level of their satisfaction.
48 Enhancing Organizational Growth Through Innovation and Creativity: Issues, Opportunities and Challenges
Academicians have used the concept of job satisfaction to reveal a combination of employee feelings towards the different facets of job satisfaction such as the nature of the work itself, pay, promotion opportunities, and satisfaction with co-workers (Schermerhorn et al., 2005). The importance of studying job satisfaction stems can be attributed to the facts that job satisfaction is associated with increased productivity and organisational commitment, lower absenteeism and turnover, and ultimately, with increased organisational effectiveness (Ellickson and Logsdon, 2001). The BPO industry is typified by a host of job related characteristics that is typical to it, which includes monotonous nature of the job, demand-supply disparity, lack of career growth potential on the professional front, loss of identity, mismatch with normal cycle, complete change of life style and lack of comfort on the personal front (Sengupta and Gupta 2008, Siong et al. 2006, Budhwar et al. 2006, Mehta et al. 2006). To study the employee satisfaction, literature on job related characteristics was reviewed. Much of literature is available which states a BPO job is monotonous, less skilled, and less challenging (Taylor and Bain 2006, Mehta et al. 2006, Budhwar 2006, Misra 2005) and thus affects the attitude of the employees towards it (Mishra 2007, Shah and Sharma 2007, Sengupta and Gupta 2008). In another study, it was seen that style of supervision affects the attitude of an employee in the form of their satisfaction and performance (Eisenberger 2003, Mishra 2007, Russell and Thite 2008). Working conditions is an imperative dimension of BPO job as it affects employee satisfaction, willingness to work and subsequently efficiency. Literature states that working conditions is not just limited to the physical environment conferred on the employees, it expands to job design, job control, task complexity and variety and even stressors (Clegg et al. 1997, Parker and Wall 1998, Semmer 1998). Salary is an important job related characteristic that affects employees liking towards a job, their satisfaction level and even their commitment to the organization (Siong et al. 2006, Grebner et al. 2003, Sharma and Jyoti 2006, Kazemzadeh and Bashiri 2009). Accountability, authority and recognition as a job related characteristics often affect job satisfaction and employee motivation at workplace. It gets converted into an ingredient of self esteem and hence affects employee self-fulfillment (Russell and Thite’s work 2008, Sengupta and Gupta 2008, Mishra 2007, Kazemzadeh and Bashiri 2009, Sharma and Jyoti 2006). Career progression is a vital job related characteristic which affects employees’ willingness to stay with the organization (Siong et al 2006, Addae et al. 2006). Interpersonal relationship in an organization is quite a binding factor and affects employee satisfaction to a large extent. Lack of it in a workplace often leads to social stressors (Grebner et al 2003, Dormann & Zapf 2002; Semmer 2007).
Comparison of Employee Satisfaction Dimensions Across Various Demographic Characteristics 49
The evidence also suggests that work-related attitudes differ by occupational group (Lim and Teo, 1998; Sengupta et al., 2009), gender (Arun and Arun, 2002; Lim and Teo, 1998), tenure (Lee and Wilbur, 1985; Rogers, 1991), and education (Rogers, 1991). Although many studies have been carried out on outsourced work environment on demographic characteristics such as age, gender, and the level of education (Grebner et al., 2003; Walsh and Deery, 2006), yet there appears to be paucity of direct empirical data on the influence of demographic characteristics on employee attitudes towards ITES-BPO work and work environment, especially in Asia. Bearing in mind the costs associated with replacing employees, it is prudent for organizations to spend on employee retention programs and to start with, it will be rewarding to identify work-related attitudes of employees and develop strategies to augment work and work environment. Hence, it is anticipated that the study would provide worthy information not only to academic community but also to practitioners that would enable them to make knowledgeable managerial decisions in India. Based on the past literature, it can be said that employees working in outsourcing environment confront a varied work environment, which is highly controlled; closely monitored and strictly measured against targets though employees are encouraged to take responsibility for both their team and their own performance (Budhwar et al., 2006, Wickramsinghe 2010). Thus, in the above context, ITES-BPO employees satisfaction towards ten job-related factors namely challenges in the job, supervision, working conditions, salary, accountability, authority, recognition, career progression, and interpersonal relationships will be compared across five demographic factors namely gender, marital status, education, age, and tenure. RESEARCH METHODOLOGY
The general intent of this exploratory and descriptive study was to compare job related variables of employee satisfaction across demographic characteristics. A sample size of 500 was taken and simple random sampling technique was used to gather data from the low and middle level employees. In a simple random sample of a given size, all such subsets of the frame are given an equal probability. This minimizes bias and simplifies analysis of results. A questionnaire was intricately designed to tap the demographic variables including age, education, gender, marital status, and tenure of the respondents. It also gathered information about their level of satisfaction with job related factors. Besides gathering data through questionnaire, focused group interviews were also done with the respondents to emphasize the data collected. Statistical Package for the Social Sciences (SPSS) version 16.0 was religiously used for the statistical analyses. Coding of variables in a quantitative research is very critical for better interpretation of results. Therefore, age, gender, education, tenure, and marital status were all coded and were entered in to the computer. Gender, education and marital status
50 Enhancing Organizational Growth Through Innovation and Creativity: Issues, Opportunities and Challenges
had only two categories, thus they were taken as dummy variables. Taking such variables as dummy variables eases the statistical operations to be done on them and helps in better assessment. The questions and responses were also coded and entered in the computer using Microsoft Excel Software. The validity and the internal consistency of the instrument were tested using cronbach alpha and KMO tests. The cronbach alpha came as 0.85 and the Kaiser-Meyer-Olkin value for the instrument was 0.745, which is acceptable as a middling value (Gorsuch 1983). Similarly, Bartlett's test of sphericity was also done and it showed a significant level and hence the instrument was accepted for further study. FINDINGS AND DISCUSSION
Personal Profile of Respondents The first section of the instrument collected information on the personal profile of the respondents which included age, gender, education, marital status and tenure. Age and tenure had three categories. In the age profile, 134 (26.8%) respondents fell in the category of less than 25; 226 respondents (45.2%) fell in the second category i.e. between 26 and 30; and 140 (28%) of the respondents fell in the third category of age more than 30. In the tenure profile, 40% of the respondents were less than 1 year old in their present organization. 41.6% of the respondents were 1-3 years old in their present organization and only 18.4% respondents were more than 3 years old in their present organizations. Gender, marital status and education had two categories only, wherein 272 were males (54.4%) and 228 were females (45.6%); 355 (71%) were unmarried and 145 were married (29%); and 244 respondents (48.8%) were graduates and 256 (51.2%) were post graduates.
Comparison of Employee Satisfaction Dimensions Across the Selected Demographic Variables Employee satisfaction is the individual employee’s general attitude towards the job. It was measured on nine dimensions related to job like supervision, salary, recognition, interpersonal relationships, authority, challenges in work, working conditions, accountability, and company policies. These dimensions were then compared across the demographic variables like gender, marital status, education and age. T-test and Duncan’s mean test was done to see whether these differences so computed were statistically significant. The findings are as follow:
Comparison of Employee Satisfaction Dimensions Across Various Demographic Characteristics 51
Gender Table 1: Comparison of Dimensions of Employee Satisfaction between Male and Female Respondents Dimensions of Employee Satisfaction Challenges Supervision Working Conditions Salary Accountability Career Progression Authority Recognition Interpersonal relationships Company Policies
Male Mean 3.74 3.84 3.75 3.04 3.34 3.58 3.56 3.46 3.81 3.30
(N= 272) S.D .95 .81 .81 .89 .70 1.00 1.08 .73 .79 .71
Female Mean 3.16 3.36 3.47 2.75 3.54 3.84 3.77 3.31 3.73 3.24
(N=228) S.D .78 1.03 .91 .91 .74 .83 .78 .96 .55 .61
t-value 7.40** 4.94** 3.63** 3.57** 3.07** 2.71** 2.44* 1.97* 1.19 NS 1.04 NS
*Significant at.05 level. ** Significant at.01 level
Significant difference was found in the mean values of eight dimensions of employee satisfaction as perceived by the male and female respondents. Dimensions like supervision, challenges, working conditions, salary, accountability, authority, and recognition had significant difference in the mean values. These dimensions attribute to the difference in perception of employee satisfaction between male and female employees. As shown in table 1, the t-value was highest in case of challenges in work, and this dimension was ranked higher by males than females. This means males perceive presence of challenges in the job bring them more satisfaction. Same was the case for supervision, working conditions, salary, and recognition. Males perceive these dimensions as more important that contributes to their satisfaction. Dimensions like accountability and authority were ranked higher by females, which mean females derive more satisfaction from accountability and authority. Interpersonal relationships and company policies had no significant difference at all. The above finding suggests that there is a difference of perception between male and female employees and this is well supported with extensive literature from the past that talks about the differences between men and women in terms of their attitudes towards job related dimensions of employee satisfaction (Wickramsinghe and Kumara, 2010; Arun and Arun, 2002; Lim and Teo, 1998). Several studies found that women have been marginalized in promotion, salary raises, assignments to challenging tasks, and access to authority (Guimaraes and Igbaria, 1992; Sumner and Niederman, 2004).
52 Enhancing Organizational Growth Through Innovation and Creativity: Issues, Opportunities and Challenges
Marital Status Significant difference was found in the mean values of three dimensions of employee satisfaction as perceived by the married and unmarried respondents. Factors like challenges, accountability, and authority had significant difference in the mean values. In all these cases, married employees ranked the dimensions higher than the unmarried ones. It simply means challenges in the job; accountability and authority contribute to employee satisfaction more in case of married employees. Rest all other dimensions had insignificant differences. Previous literature shows that marital status has relationship with job satisfaction constructs (Andrews, 1990; Bowen, Radhakrishna, & Keyser, 1994; Fetsch & Kennington, 1997; Griffin, 1984; Nestor & Leary, 2000) and that married employees rank working conditions more important for employee satisfaction (Wickramsinghe and Kumara 2010). Table 2: Comparison of Dimensions of Employee Satisfaction between Unmarried and Married Respondents Dimensions of Employee Motivation Challenges Accountability Authority Career Progression Interpersonal relationships Recognition Salary Supervision Working Conditions Company Policies
Unmarried Mean 3.35 3.36 3.58 3.30 3.74 3.44 2.89 4.02 3.64 3.26
(N= 355) Married (N=145) t-value S.D Mean S.D .90 3.77 .91 4.62** .76 3.61 .60 3.47** 1.00 3.84 .83 2.71** .71 3.24 .61 1.04 NS .71 3.87 .65 1.92NS .82 3.28 .90 1.86NS .89 2.97 .96 .91NS 1.11 3.93 .89 .88 NS .78 3.59 1.06 .54NS .61 3.29 .79 .52NS
** Significant at.01 level
Education Significant difference was found in the mean values of seven dimensions of employee satisfaction as perceived by the graduate and post graduate respondents. Dimensions like working conditions, salary, supervision, accountability, authority, career progression and company policies had significant difference in the mean values. These dimensions attribute to the difference in perception of employee satisfaction between graduate and post graduate employees.
Comparison of Employee Satisfaction Dimensions Across Various Demographic Characteristics 53
Table 3: Comparison of Dimensions of Employee Satisfaction between Graduate and Post Graduate Respondents Dimensions of Employee Satisfaction Salary Working Conditions Authority Career Progression Supervision Accountability Company Policies Recognition Challenges Interpersonal relationships
Graduate (N= 244) Post Graduate (N=256) t-value Mean S.D Mean S.D 3.18 .70 2.65 1.00 6.86** 3.81 .59 3.45 1.03 4.76** 3.47 1.19 3.83 .62 4.3** 3.36 .76 3.61 .60 3.47** 3.15 .87 3.39 .78 2.85** 3.34 .68 3.52 .76 2.83** 3.34 .73 3.21 .59 2.23** 3.35 .81 3.44 .88 1.21NS 3.43 .67 3.52 1.11 1.04NS 3.76 .79 3.79 .59 .51NS
** Significant at.01 level
The t-value was highest in case of salary, and this dimension was ranked higher by graduates than post graduates. This means decent salary in the job accounts for more employee satisfaction in case of graduate employees. Graduate employees are driven by money more than nature of job, recognition, or other dimensions. Same was the case with working conditions and policies. Graduates ranked these two factors contributing to employee satisfaction than post graduates. Dimensions like supervision, accountability and authority were ranked higher by post graduates. These factors contributed to employee satisfaction in case of educated employees and the difference in the scores was also significant. However, there was no significant difference in case of recognition, challenges and interpersonal relations at all. This finding has congruence with other previous studies too (Guimaraes and Igbaria, 1992; Lee and Wilbur, 1985; Rogers, 1991, Bilgic 1998)
Age Duncan’s Mean Test was applied to compare the dimensions of employee satisfaction among three age groups. Significant difference was found in the mean values of a couple of dimensions of employee satisfaction as perceived by respondents of the various age categories. Working conditions showed highly significant difference in mean and standard deviation values across the three age categories. Challenges in the job, supervision, authority, recognition, career progression and accountability were other significant factors. The table shows all the values of mean and standard deviation of the dimensions of employee satisfaction across the various age groups. It can be seen that F value was highest in case of working conditions and supervision. These factors were ranked highest by employees less than 25 years of age. Such young employees respond more to hygiene factors rather
54 Enhancing Organizational Growth Through Innovation and Creativity: Issues, Opportunities and Challenges
than motivational factors. Moreover, these employees are new to job and new to the work and hence respond well to effective supervision. Absence of nice working conditions or meaningful supervision may result in dissatisfaction from job. Similarly accountability was also ranked higher by the same category of employees. Challenge and recognition in job was ranked higher by employees more than 35 years of age than other less aged employees. It makes sense as such employees get triggered by presence of challenging tasks and recognition got from bosses in their job. Authority was ranked highest by the middle category of employees that is whose age is between 26 and 30. Table 4: Comparisons of Dimensions of Employee Satisfaction among Three Age Groups (A1= Less Than 25, A2= 26-30, A3 = More Than 30) Duncan’s Mean Test Dimensions of Employee Satisfaction
A1 (N=134) Mean S.D Working Conditions 3.97 .24 Challenges 3.19 .79 Authority 3.43 1.38 Career Progression 3.62 .94 Recognition 3.48 1.04 Supervision 2.88 1.11 Accountability 3.54 .82 Interpersonal relationships 3.67 .92 Company Policies 3.18 .70 Salary 2.98 .58
A2 (N=226) Mean S.D 3.56 .88 3.57 .91 3.82 .70 3.73 .71 3.26 .76 2.82 .98 3.34 .68 3.82 .59 3.33 .69 2.92 .99
A3 A1 v/s A1 v/s A2 v/s (N=140) A2 A3 A3 Mean S.D 3.40 1.16 * * 3.59 1.00 * * 3.60 .77 * * 3.89 .83 * 3.52 .76 * * 2.43 1.01 * * 3.48 .68 * 3.81 .59 3.27 .58 2.83 1.01
F-value 16.85** 9.25** 7.74** 05.30** 4.97** 8.41** 3.52* 2.24NS 2.01NS 1.12NS
*Significant at.05 level **Significant at.01 level
Tenure Duncan’s Mean Test was applied to compare the dimensions of employee satisfaction among three tenure groups. Significant difference was found in the mean values of a few dimensions as perceived by respondents of the various categories of tenure. Challenges, interpersonal relationships, company policies, authority, supervision, and working conditions showed significant differences in mean and standard deviation values. Salary, recognition and accountability did not have any significant difference in the mean values or standard deviations. Table 5 shows all the values of mean and standard deviation of the dimensions of employee satisfaction across the various tenure groups. It can be seen that F value was highest in case of challenges. This factor was ranked highest by respondents with 2-3 years of job. It means such respondents have high satisfaction level when they perceive challenges in their job. This may be because with growing tenure in a particular job, one
Comparison of Employee Satisfaction Dimensions Across Various Demographic Characteristics 55
gets motivated to find challenging jobs, which fulfils their intrinsic needs. Interpersonal relationships, company policies, authority, and supervision were all ranked highest by respondents with 2-3 years of tenure and their difference with other groups was also significant. This shows that respondents who are around 2 years old in their organizations start responding to job characteristics like interpersonal relationships, policies, authority etc. In case of career progression, respondents who were more than 3 years ranked it highest. There was significant difference between T1 (less than 1 year) and T2 (2-3 years); and T1 and T3 (more than 3 years). This finding has also congruence with previous studies (Lim and Teo, 1998; Wickramsinghe and Kumar, 2010). Table 5: Comparisons of Dimensions of Employee Satisfaction among Three Tenure Groups (T1= Less Than 1 Year, T2= 2-3 Years, T3 = More Than 3 Years) Duncan’s Mean Test Dimensions of Employee Satisfaction Challenges Interpersonal relationships Company Policies Career Progression Authority Supervision Working Conditions Salary Recognition Accountability
T1 Mean S.D 3.62 .98 3.39 .84 2.83 .49 3.19 .79 3.22 1.21 3.73 .94 3.42 .50 3 .47 3.86 .62 3.64 .70
T2 Mean S.D 4.27 .70 3.74 .55 3.07 .51 3.57 .91 3.67 .87 3.89 .71 3.30 .90 2.95 .65 3.78 .56 3.57 .63
T1 v/s T1 v/s T2 v/s T3 T2 T3 T3 Mean S.D 3.85 1.30 * * 3.61 .58 * * 2.99 .52 * * 3.59 1.00 * * 3.5 .87 * * 3.62 .83 * 3.16 1.11 * 2.84 .92 3.78 .58 3.66 .77
F-value 20.34** 12.33** 10.01** 09.25** 09.04** 05.30** 02.83* 02.06NS 01.00NS 0.90NS
* Significant at.05 level ** Significant at.01 level
LIMITATIONS AND FURTHER RESEARCH
The study revealed the following important conclusions. Ten job related variables were compared across five demographic characteristics of BPO employees and differences were recorded, which revealed that BPO employees do not respond to all the variables of employee satisfaction in the same manner. There is difference of perception in gender, marital status, qualification, age, and tenure. Further exploration revealed that employees from different bands of age, marital status, gender, tenure or education derive satisfaction from their work for different reasons. Few dimensions are significant with specific personal characteristics, whereas few are not. This all-inclusive analysis of the dimensions of employee satisfaction gives a clear coherent picture in BPOs. Referring to the limitations of the study, it should be noted that the study can be expanded to a larger area in a sector like ITES, software, hardware industry etc which share the same features as that of a BPO. It can be seen
56 Enhancing Organizational Growth Through Innovation and Creativity: Issues, Opportunities and Challenges
that only ten job related variables and five demographic variables were considered for the study. Many more can be taken to get a more all-inclusive picture. Now that the study has exposed that employees from different gender, age groups, marital status, tenure and education respond to different dimensions of employee satisfaction, we can work out further to use these specific dimensions to satisfy employees and ensure enhanced performance, satisfaction and retention of the employees. REFERENCES [1] Addae, H M, Parboteeah, K P and Davis, E E, (2006), “Organizational commitment and intentions to quit: An examination of the moderating effects of psychological contract breach in Trinidad and Tobago”, International Journal of Organizational Analysis, vol 14 no 3, pp 225-238, Sep 2006 Emerald Group Publishing Limited, (1934-8835 DOI 10 1108/19348830610823419). [2] Ahmed Imran Hunjra, Muhammad Irfan Chani, Sher Aslam, Muhammad Azam, and KashifUr-Rehman (2010), African Journal of Business Management, Vol 4(10), pp 2157-2163, August, 2010. [3] Al-Ajmi, R (2001) “The effect of personal characteristics on job satisfaction: A study among male managers in the Kuwait oil industry” International Journal of Commerce & Management, 11(3/4): 91-111. [4] Andrews, G L (1990) An assessment of the interaction of selected personal characteristics and perceptions of selected aspects of job satisfaction by Wisconsin Cooperative Extension agricultural agents (Master’s thesis, University of Wisconsin-River Falls, 1990) Summary of Research in Extension, 5, 151. [5] Ang K, & Goh, H (1993) “The impact of age on the job satisfaction of accountants”, Personnel Review, 22:31-9. [6] Arun, S and Arun, T, (2002), ‘‘ICTs, gender and development: women in software production in Kerala’’, Journal of International Development, vol 14, pp 39-50. [7] Aselage, J and Eisenberger, R, (2003), “Perceived organizational support and psychological contracts: a theoretical integration”, Journal of Organizational Behavior, vol 24, no 5, pp 491-509, August 2003. [8] Bilgic, R (1998), ‘‘The relationship between job satisfaction and personal characteristic of Turkish workers’’, Journal of Psychology, Vol 132, pp 549-57. [9] Bowen, C F, Radhakrishna, R B, & Keyser, R (1994) Job satisfaction and commitment of 4-H agents, Journal of Extension, 32(1) Retrieved October 6, 2003, from http://www.joe.org/joe/1994june/rb2.html [10] Budhwar P, Varma A., Singh V and Dhar R, (2006), “HRM systems of Indian call centres: An exploratory study”, International Journal of Human Resource Management, vol. 17, no. 5, pp 881–897, Summer 2006. [11] Chimanikire, P, Mutandwa, E, Gadzirayi, C T, Muzondo, N, and Mutandwa, B, (2007) “Factors affecting job satisfaction among academic professionals in tertiary institutions in Zimbabwe” African Journal of Business Management, vol 1(6) pp 166-175, September, 2007.
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Gender and Leadership Effectiveness as a Contemporary HR Practice in Indian Organizations *
Dr Amita Girdhar and **Dr Shabnam Saxena
Traditionally, leadership and administration has been the domain of men. This is evident from the gender imbalance of leaders and office bearers across the organizations and society. Women have not been active in local politics and are relatively inactive in organizational leadership due to institutional, socio-economic and cultural constraints. However, times are changing. There is now an acceptance that women can and do play a vital role in organizational affairs, particularly in contributing to the achievement of harmony, development and progress. The main objectives of the research were to compare the leadership styles and effectiveness of male and female leaders. The data was collected from 300 middle level managers from Indian insurance companies using standardized scales i.e. Leadership Style Questionnaire and Leadership Behavior Scale (LBS). Leadership Behaviour Scale comprises of six variables i.e. Emotional Stabilizer, Team Builder, Performance Oriented, Potential Extractor, Socially Intelligent and Value Inculcator. Leadership style questionnaire, comprising five of the most typical patterns of leadership, ranging from highly leader-centered to highly group-centered i.e. Authoritative, Political, Evaluative, Participative and Laissez-faire.Total of 8 insurance companies (4 public and 4 private insurance companies) from Haryana and Delhi were targeted. Specifically, the research findings described and analyzed that women are equally effective leaders as are men. It also reflects in the changed attitude of the society and the corporate world towards the women employees. Results of the research connotes that there is a significant difference found between leadership styles of male and female managers. Male leaders mainly prefer laissez faire style whereas majority of female leaders has opted for both evaluative and laissez faire style of leadership. In leadership effectiveness, the woman leaders have proved better in emotional facilitation and goal orientation and male leaders have got better scores on appraisal of positive emotions. But overall, there is no significant difference between the scores of male and female leaders. INTRODUCTION
Leadership has been described as a process of persuasion where the leader (or team of leaders) acts as an example for a group in order to motivate and induce the group to pursue the objectives of the leader and the organization. *Assistant
Professor, Department of Business Management, CCS Haryana Agricultural University, Hisar Haryana–125004 **Associate Professor, Haryana School of Business, Guru Jambheshwar University of Science & Technology, Hisar Haryana–125001
60 Enhancing Organizational Growth Through Innovation and Creativity: Issues, Opportunities and Challenges
In this regard, it is important to realize that leaders cannot be separated from the historic control in which they arise or the culture of their working environment. They are integral parts of the system in which they arise yet dependent upon two-way communication. With constituents and the forces that create the circumstances in which they emerge. In addition, leaders are accountable for the performance of their organization or the success of the movement that they are heading regardless of the context in which it occurs. There are many kinds of leaders with a wide array of styles and qualities, and there appears to be no limit to the variety. These complex individuals are selective in displaying different sides of their nature in the different situations they arise. In leadership, it is essential to understand that one has to become a role model, if he wishes that others follow his path, hence, before beginning to help one’s associates, one needs to work on one’s own behaviour, since there is no substitute for “walking the talk” as a source of modeling and inspiration. Women generally do not agree with present leadership definitions, which are usually used to describe the person who sits at the top of an organization, group or any other bodies that is pyramidal in nature. This kind of leadership implies a sense of control and a hierarchical power structure and carries with it a range of emotive notions such as responsibility, authority and power. They are very uncomfortable with the notion of leadership with authoritative connotations that reflects a commanding structure. They tend to shy away from these ideas when considering themselves as leaders. Leadership to them has more to do with commonsense and helping others to understand their own situation, obligation and place in the world. It is clearly based on providing service to others, humanity, caring, compassion and modesty. It may even be apologetic, but it is very successful in generating enthusiasm and support of other women. The definition is very important since this is the starting point in their journey while discussing their leadership roles. It reflects more the democratic approach to leadership with building relationship through twoway communication and dialogue as key elements in their leadership approach. It emphasized more on connecting to others. LITERATURE REVIEW
Leadership is an inherently subjective subject with many definitions associated to it (Zaharah Hassan, 2004). Most of those definitions found in the literature agreed that leadership is mainly concerned with a person who tries to influence groups or followers to achieve certain objectives. The literature also indicates that there are various theories describing leadership such as the traits that leads to successful leaders (Stogdill, 1950), and the roles that leaders need to perform (Mintzberg, 1973; Yukl, 1994). The
Gender and Leadership Effectiveness as a Contemporary HR Practice in Indian Organizations 61
literature also points to the styles and approach that leaders need to adopt such as shown by early studies conducted by Iowa University, Ohio University and Michigan Universities (Nahavandi, 1977) and later studies by other researchers (Lewin and Lippit, 1938; Lewin et al., 1939; Blake and Mouton, 1964; Tannenbaum & Schmidt, 1973). Leadership theories also take into account of the contingencies and situations they face (Fielder, 1967; Hersey and Blanchard, 1988; House, 1971; House & Mitchell, 1974; House, 1997). More recent literature includes transformational (Burns, 1978) and servant leadership (Greenleaf, 1998). Recent writings also noted that there are notions of leadership that are assumed either implicitly or explicitly linking leadership to gender (Zaharah Hassan, 2004). Various studies show that there are differences in the leadership styles of males and females leaders. Much of the discussion on those differences centers on what has been called concern for production and concern for people. Other ways of expressing this leadership dichotomy is through contrasting concern for tasks and concern for relationships according to situations as shown by various development levels of the subordinates, (Hersey and Blanchard, 1969, 1988; Hersey et al. 2001) or a focus on initiating structure as opposed to the focus of consideration for people (Stogdill and Coons, 1957). Tannenbaum and Schmidt’s (1973) situational theory see that contrast as a continuum of autocratic or democratic leadership styles. Literature on leadership and gender often pivots on whether or not gender gives emphasis on one of the above dimensions of leadership at the expense of the other. Some of the research findings indicate that female leaders tend to be more relationship-oriented and democratic and male leaders more task-oriented and autocratic (Eagly and Johnson, 1990). In recent years, transformational and transactional leadership construct has become a popular theme in leadership literature in the general management domain. Unlike task versus relationship-oriented leadership, the transformational–transactional leadership notion is viewed as a continuum allowing for individuals to employ transformational and transactional qualities at the same time (Bass, 1985, 1990; Bryman, 1992). Transactional leadership is based on exchanges between the leader and followers where followers are rewarded for meeting specific goals or performance criteria. Transformational is seen to be charismatic and visionary in nature, and leaders lead and motivate followers in ways beyond exchanges and rewards. Transformational leadership is generally held to be a superior form of leadership, built on transactional leadership, but not viceversa. There is a line of argument in leadership literature contending that female leaders tend to be more transformational than male leaders (Rosener, 1990). This argument is based on the idea that transformational leadership emphasizes the nurturing of subordinates and the process of socialization.
62 Enhancing Organizational Growth Through Innovation and Creativity: Issues, Opportunities and Challenges
The nurturing qualities of women are particularly well developed in comparison to men. This leads to the adoption of transformational leadership style by female leaders and by implication, a tendency for Zaharah Hassan and Abu Daud Silong male leaders, who are not privy to this socialization process, tends to be more inclined to transactional leadership. In leadership research, gender has been distinguished from sex. The former is viewed as a collection of qualities labeled male or female (Bem, 1974; Gray 1989) that are culturally constructed, while the latter comprises of attributes that are the result of biological characteristics. Male gender qualities characterizes as aggressive, independent, objective, logical, rational, analytical, decisive, confident, assertive, ambitious, opportunistic and impersonal. These are distinguished from female gender qualities describe as emotional, sensitive, expressive, cooperative, intuitive, warm, tactful, receptive to ideas, talkative, gentle, tactful, empathetic and submissive (Park, 1996; Osland et al, 1998). The notion of male and female gender qualities facilitates the arguments that male gender qualities are oriented towards more impersonal, task-oriented or transactional approach to leadership, while female gender qualities tends towards more nurturing, relationship-oriented style of leadership that underlies the transformational leadership approach. The idea that gender determines leadership style is by no means a unanimous view in leadership literature. Rosener (1990) for example, in a survey of male and female executive with similar jobs and education and of similar age, found that women tend to be more transformational in their leadership style than men. Kouzes and Posner (1990), using their version of transformational leadership model, found that female leaders were more likely than male leaders to practice “modeling the way” and “encouraging the heart”. A cross-cultural study by Gibson (1995) involving Norway, Sweden, Australia and the USA, found that male leaders were more likely to emphasize goal setting than female leaders and female leaders more likely to focus on facilitating interaction than male leaders. This trend among women leaders was also emphasized in the Malaysian public sector leadership (Rafiah Salim, 2007; Halipah Esa, 2007) However, other scholars such as Butterfield and Powell (1981), Campbell et al. (1993) and Ronk (1993) all have concluded that leadership style is independent of gender. Powell, (1990) in his analysis of a number of research studies, found that male and female leaders exhibit similar amounts of task-oriented and people-oriented leadership behavior. Kolb (1999) has asserted that two decades of research indicates few, if any, leadership differences in the leadership behavior of male and female.
Gender and Leadership Effectiveness as a Contemporary HR Practice in Indian Organizations 63
Objective of the Present Study To compare the leadership styles and leadership effectiveness of male and female managers. SAMPLE AND SAMPLE PROFILE
The sample included in the study was drawn from different places of Haryana. The sample size of the research consisted of 300 middle level managers. Out of 300 respondents, 223 of respondents were male and rest 77 respondents were female. To cover the wide range of population spread all over the area selected, the area was stratified into different zones. In this way, efforts were made to make the sample more representative, more purposeful and in accordance with the objectives of the study. INSTRUMENT FOR DATA COLLECTION
The first section of the questionnaire was made of six dimensional leadership style questionnaires to identify the typical pattern of leadership styles. Leadership Resources Inc. and American Management Association design this questionnaire.
Leadership Style Questionnaire There were six categories in the questionnaire i.e. Dominance, Tact, Communication, Maturity, Attitude and Cooperation. For each of the six categories on the instrument, there was a series of statements (a, b, c, d and e). Respondents had to consider each statement and select the one that best described them. For scoring, the individual scores were calculated (total number of a, b, c, d and e) and in this way, predominant style of the respondents was found. Below is the key to different leadership styles
Five Patterns of Leadership Styles The experienced leader uses many complex and subtle means to exercise his influence and stimulate those he leads for creative and productive efforts. From the complex range of leadership styles, five of the most typical patterns are selected, ranging from highly leader-centered to highly group-centered
Authoritative The leader identifies a problem, considers alternative solutions, chooses one of them, and then tells others what they are to do. The leader may or may not consider what the group members will think or feel about the decision, but group members clearly do not participate directly in the decisionmaking. Coercion may or may not be used or implied.
64 Enhancing Organizational Growth Through Innovation and Creativity: Issues, Opportunities and Challenges
Political The leadership, as before, makes the decision without consulting the group. However, instead of simply announcing the decision, he/she tries to persuade the group members to accept it. The leader points out how he/she has considered organization goals and the interest of group members and states how the member will benefit from carrying out the decision.
Evaluative The leader identifies a problem and proposes a tentative solution. Before finalizing it, however, he/she gets the reactions of those who will implement it. The leader says, in effect, “I’d like your frank reactions to this proposal, and I will then make the final decision”.
Participative The leader here gives group members a chance to influence the decision from the beginning. Problems and relevant background information are presented, and then the members are asked for their ideas. In effect, the group is invited to increase the number of alternative actions to be considered. The leader then selects the solution he/she regards as most promising.
Laissez-Faire The leader here participates in the discussion as “just another member” and agrees in advance to carry out whatever decision the group makes. The only limits placed on the group are those given to the leader by his superiors. Many research and development teams make decisions this way. LEADERSHIP BEHAVIOUR SCALE
The second section of the questionnaire was made of six dimensional leadership behaviour scales to measure various dimensions of leaders’ effectiveness, focusing on positive and constructive dimensions. This scale is developed by Dr. Asha Hinger, Professor, Deptt. of Psychology, University of Rajasthan, Jaipur, published by National Psychological Corporation, Agra. In order to know the profile of leadership effectiveness among male and female middle level managers in insurance organisations, standard variables are given in the scale, which are as follows: Emotional Stabilizer shows balanced behaviour, empathy, absence of prejudice, substantial patience and managing the emotions of self and others.
Gender and Leadership Effectiveness as a Contemporary HR Practice in Indian Organizations 65
Team Builder encourages collaborative decision-making, resolves problems of members maintain team cohesion and avoid unhealthy competition among members. Performance Oriented shows prioritization of work, achievement motivation, adherence to high standard of performance, regular rejuvenation and Impregnable (Resists all attacks). Potential Extractor focused on identification of potentials, providing proper opportunities to employees, proper channelization of individual’s potentials, delegating adequate authority and building confidence for overall development. Socially Intelligent are capable of proper use of body language, good listener and analyzer, clarifying limitations and constraints, resolving conflicts tactfully and keeping track of overall latest development. Value Inculcator emphasized commitment to work, organisational loyalty time management, trust based relationship and acceptance for mistakes and failures. Total Leadership effectiveness effectiveness of the respondents.
It
shows
the
overall
leadership
All the above dimensions were studied through field survey.
Descriptive and Statistical Inferences The analysis was divided into two parts viz. descriptive inference and statistical inference. Descriptive inference indicated the frequency distribution while statistical inference laid emphasis on t-test and chisquare-test. Total 300 middle managers of insurance companies were investigated during the study, 223 of respondents were male and rest 77 respondents were female. The responses were coded and tabulated and then analysis was done across male and female respondents. Table 1: Analysis of Leadership Styles Leadership Styles Authoritative Political Evaluative Participative Laissez-Faire Gender No's % No's % No's % No's % No's % Male 13 5.83 63 28.25 31 13.90 38 17.04 78 34.98 Female 5 6.50 13 16.88 23 29.87 13 16.88 23 29.87 Total 18 6 76 25.33 54 18 51 17 101 33.67
Total No's % 223 100 77 100 300 100
Analysis of Leadership Styles Elevated portion (28.25 per cent) of total male respondents and 16.88 per cent of total female respondents proved themselves as expert in selling their ideas (political style). Female respondents scored higher in evaluative (29.87 per cent) and laissez faire (29.87 per cent) styles while male respondents scored higher in laissez faire (34.98 per cent) style.
66 Enhancing Organizational Growth Through Innovation and Creativity: Issues, Opportunities and Challenges
Chi-square value: 11.56 Since χ2 cal > χ2 tab, therefore, it can be concluded that there is significant difference found between leadership styles of male and female managers. Male respondents mainly preferred laissez faire style whereas majority of female respondents opted for both evaluative and laissez faire style of leadership (Table-1).
Analysis of Leadership Effectiveness The result revealed that the mean value for male and female respondents for Emotional Stability is 20.609 and 21.208 with the value of S.D. 2.712 and 2.392, respectively (Table-2). The value of t-test is -1.717 at 0.087 significant levels. In simple words, it is concluded that mean difference between the male and female respondents regarding Emotional Stability is not significant (the value of significant level for t-test is greater than 0.05). The mean value for Team Building is 21.377 and 21.623, respectively for both male and female respondents with S.D. 2.549 and 2.685. The t-value is -0.722 at 0.471 significant levels. It can be evaluated that there is no significant difference (the value of significant level for t-test is greater than 0.05) between the scores of male and female respondents regarding Team Building. Further, the value of mean for male and female respondents regarding Performance Orientation is 21.825 and 21.636 with S.D. 2.477 and 2.127, respectively. The t-value is 0.597 with significant level of 0.551. Again, it can be said that there is no significant difference between the scores of male and female respondents. In case of Potential Extraction, the fourth variable of leadership behaviour, the value of mean for male and female respondents is 22.731 and 23.065 with S.D. 2.369 and 1.681, respectively. The t-value is -1.141 with significant level of 0.255. It can be extracted that there is no significant difference between the responses of male and female respondents regarding Potential Extraction. Next, in case of Social Intelligence, the mean value for male and female respondents is 20.256 and 20.649 with S.D. 2.463 and 2.031, respectively. The t-value is 1.262 with significant level of 0.208. It means that there is no significant difference found between the responses of male and female respondents regarding Social Intelligence (the value of significant level for t-test is greater than 0.05). Finally, the last variable of leadership effectiveness i.e. value inculcator; the mean difference for male and female respondents is 22.251 and 22.519 with S.D. 2.721 and 1.875, respectively. The value of t-test is 0.802 with significant level of 0.423, which is not significant (as it is greater than 0.05). Lastly, the value of mean for male and female respondents regarding total leadership effectiveness is 128.951 and 130.701 with S.D. 11.172 and 6.731, respectively. The t-value is -1.295 with significant level at 0.196. It can be concluded that mean difference between the male and female respondents regarding total leadership effectiveness is not significant (as the value of significant level for t-test is more than 0.05).
Gender and Leadership Effectiveness as a Contemporary HR Practice in Indian Organizations 67
Table 2: Analysis of Leadership Effectiveness Variables
Gender
Emotional Stability
Male Female Team Building Male Female Performance Orientation Male Female Performance Extraction Male Female Social Intelligence Male Female Value Inculcation Male Female Total Leadership Male Effectiveness Female
N
Mean
223 77 223 77 223 77 223 77 223 77 223 77 223 77
20.609 21.208 21.377 21.623 21.825 21.636 22.731 23.065 20.256 20.649 22.251 22.519 128.951 130.701
Std. Deviation 2.712 2.392 2.549 2.685 2.477 2.127 2.369 1.681 2.463 2.031 2.721 1.875 11.172 6.732
Value of tTest -1.717
Sig. (2-Tailed) 0.087
-0.722
0.471
0.597
0.551
-1.141
0.255
-1.262
0.208
-0.802
0.423
-1.295
0.196
** Significant at 1% level * Significant at 5% level Source: Field Survey
CONCLUSION AND RECOMMENDATIONS
This study seeks to fill the gap that existed in the literature on gender and leadership effectiveness because women contribution is getting bigger but too often they are not documented. Women leadership relates more to a holistic and “bottom-ups” approach in developing the organization. This approach has a greater impact on organisational success compared to the “top-down” approach commonly utilized by male leaders. It is true that men and women, as groups tend to have shared, genderspecific strong and weak points. Indeed, their strengths and weaknesses average out, it is implied that there may not be any gender discrimination at workplace on the basis of leadership effectiveness. The study explains that there is a significant difference between leadership styles of male and female managers. Male leaders mainly prefer laissez faire style whereas majority of female leaders has opted for both evaluative and laissez faire style of leadership. There is no significant difference found between the scores of male and female leaders regarding leadership effectiveness. Female managers, who are seen as good at listening to others and gaining their input before implementing change are likely to be assessed as good at cooperating with others, able to foster relationships, able to find pleasure in life, control impulses, and understand their own emotions and the emotions of others. The other point is emotional stability or composure, which refers to the skill of remaining calm in a crisis and recovering from mistakes, is related to several emotional intelligence
68 Enhancing Organizational Growth Through Innovation and Creativity: Issues, Opportunities and Challenges
measures. It appears that being rated highly on composure has to do with controlling impulses during difficult times, being responsible toward others, and having a satisfied disposition. The strategies to improve women leadership are: •
• • • •
Create opportunities for these female leaders to document their experience and development as organisational leaders. Studies and report that include women telling their stories will raise awareness of women achievements and contribution to the field. Through documentation and dissemination of information, the women can share the “best practices” and learn from each other. Cultivate new leaders through training or mentoring. Integrate study findings in leadership training program. Organize a dialogue session among women led organizations for sharing knowledge and resources.
Women generally have to face discrimination in our society. Though this tendency is disappearing with social development. The change in the attitude of the society has also led the corporate world to change its outlook and attitude towards its women employees. Moreover, the organizations of the day are now emphasizing on the women leadership due to specific advantages and there is hardly any organization/department where women are not leading. REFERENCES [1] Bass, B M (1990), from transactional to transformational leadership: Learning to share vision, Organizational Dynamics, Vol 18, pp 19–31. [2] Bass, B M (1985), Leadership Performance beyond Expectation, Free Press, New York [3] Bem, S L (1974), the Measurement of Psychological Androgyny, Journal of Consulting Clinical Psychology Vol 42, No 2, pp 155-62. [4] Blake, R R & Mouton, J S (1964), the Managerial Grid, Gulf Publishing, Houston. [5] Bryman, A (1992), Charisma and Leadership in Organization, Sage publications, London [6] Burns, J M (1978), Leadership, Harper & Row, New York. [7] Butterfield, D, Powell, D (1981), Sex Effects in Evaluating Leaders Organizational Behavior and Human Performance, Vol 28, pp129–41. [8] Campbell, D J Bommer, W Yeo, E (1993), Perceptions of Appropriate Leadership Style: Participation versus Consultation across Two Cultures, Asia Pacific Journal of Management, Vol 10, No1, pp1–19. [9] DuBrin, A J (2001), Leadership, Mifflin, London. [10] Eagly, A H, Johnson, B T (1990), Gender and Leadership Style: A Meta-Analysis Psychological Bulletin, Vol 108, pp. 233-56.
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[11] Gibson, C B (1995), An Investigation of Gender Differences in Leadership across Four Countries, Journal of International Business Studies, Vol 26, pp 255-279. [12] Gittell, M, Covington, S, Gross, J (1994a), the difference Gender makes: Women in Neighborhood Development Organizations Howard Samuels State Management and Policy Center, the Graduate School and University Center, CUNY. [13] Gittell, M, Covington, S, Gross, J (1994b) Race and Gender in Neighborhood Development Organization Howard Samuels State Management and Policy Center, the Graduate School and University Center, CUNY. [14] Gray, H L (1989) Gender Consideration in School Management: Masculine and Feminine Leadership Styles Human Resource Management in Education, Open University Press, Milton Keynes. [15] Greenleaf, R (1998) The power of servant leadership, Berret-Koehler, San Francisco. [16] Halipah Esa (2007), Women leadership in the Public Sector, A talk presented at the National Workshop on Traditions of Effective Public Sector Leadership, Putrajaya International Convention Center, Putrajaya, 13-14 December, 2007. [17] Hersey, P, Blanchard, K H, Johnson, D E (2001) Management of Organizational Behavior: Leading Human Resources (8 Ed), Prentice Hall, Upper Saddle, N J. [18] Hersey, P, Blanchard, K H (1988) Management of Organizational Behavior, Prentice-Hall, Englewood Cliffs, N J. [19] House, R J (1997), Path-goal theory of leadership: Lessons, legacy, and a reformulated theory, Leadership Quarterly, Vol 7, No 3, pp 323–352. [20] House, R J, Mitchell, R R (1974), Path-goal theory of leadership, Journal of Contemporary Business, Vol 3, pp 81–97. [21] House, R J (1971), A path-goal theory of leadership effectiveness, Administrative Science Quarterly, Vol 16, pp 321-339. [22] Ife, J (1997), Rethinking Social Work, Towards Critical Practice Longman, Melbourne, Australia. [23] Jones, G E (1982), the Clarendon Letter In G E Jones and M J Rolls (Eds) Progress in Rural Extension and Community Development Vol (1), John Wiley and Sons, London. [24] Kirk, P & Shutte, A M (2004) Community Leadership Development, Community Development Journal, Vol 39 No 3, pp 234–251. [25] Kolb, J A (1999), The Effect of Gender Role, Attitude toward Leadership and Self-Confidence on Leader Emergence: Implication for Leadership Development, Human Resource Development Quarterly, Vol 10, No 4, pp 305-20. [26] Kouzes, J and Posner, B (1990), Leadership Practices Inventory: A SelfAssessment and Analysis Pfeifer & Co, San Diego, CA. [27] Lewin, K, Lippit, R, White, R K (1939) Pattern Of Aggressive Behavior in Experimentally Created Social Climates, Journal of Social Psychology, Vol 10, pp 271-301. [28] Mintzberg, H (1973) The Nature of Managerial Work, Harper and Row, New York. [29] Nahavandi, A (1997), The Art and Science of Leadership, Prentice-Hall International, London. [30] Northouse, P G (2003), Leadership: Theory and Practice, Sage, London.
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[31] Osland, J S, Synder, M M, Hunter, L (1998), A Comparative Study of Managerial Styles among Female Executive in Nicaragua and Costa Rica. International Studies of Management and Organization, Vol 28, No 2, pp 54-73. [32] Park, D, (1996), Gender Role, Decision Style and Leadership Style, Women in Management Review, Vol 11, No 8, pp13-17. [33] Powell, G N (1990), One More Time: Do Female and Male Manager Differ, The Executive, August, pp 68-75. [34] Rosener, J B (1990), Ways Women Lead, Harvard Business Review, Vol 68, No 6, pp 119-25. [35] Tannenbaum, R, Schmidt, W H (1973). How to Choose a Leadership Pattern, Harvard Business Review, May-Jun, pp 162-80. [36] Stogdill, R, Coons, A (1957) Leader Behavior: Its Description and Management. Ohio State University. [37] Stogdill, R M (1950), Leadership, membership and organization, Psychological Bulletin, Vol 47, pp1-14. [38] Yukl, G (1994) Leadership in Organizations, Prentice-Hall, Englewood Cliffs, NJ [39] Zaharah Hassan. (2004), Leadership Behaviors and Styles among Women Academic Leaders in a Public University, Doctoral Thesis, Universiti Putra Malaysia (in Malay Language).
Organizational Culture and its Impact on Turnover Intentions of Employees: An Empirical Study of Few Selected Private Telecom Companies in and Around Chandigarh *
Dr Luxmi and **Tarun Kumar Vashisth
The present paper is designed to find out the impact of organisational culture on turnover intention amongst the employees, to investigate the relationship between turnover intention and demographic variables and to see the association among subscales of organizational culture in private telecom sector organizations. The scope of the present paper is private telecom sector organizations belonging to Panchkula, Mohali and Chandigarh. The sample comprised of 95 respondents drawn from three private telecom sector organizations. The research done on the basis of demographic factors made the study comprehensive. The results revealed a very significant negative correlation between organizational culture and turnover intentions of the employees. It is also indicated that there is no association between any of demographic variables and the turnover intention of the employees in private telecom sector organizations. INTRODUCTION
In the present scenario, industrial managers are well aware of the need to elicit the best efforts from employees towards the achievement of organizational goals. With the steady increase in the number of multinational corporations, the nature of business in today’s global market require people of different nationalities and cultural background to work together. Therefore, to compete in the global market, it is important for the business managers to distinguish among values held in various cultures and imbibe them to stay in the complex corporate culture. Organizational theorists and corporate leader have produced voluminous material on organizational culture and its offspring-symbol, language, ideology, belief, ritual, and myth (Pettigrew, 1979). Organisational Culture has received much attention as to its effects, such as the potential impact on organizational success and strategic competitive advantage (Martins and Martins, 2002). Kroeber and Kluchhohn (1952) identified 164 different *Sr.
Lecturer, University Business School, Panjab University, Chandigarh–160025 Professor, University Business School, Panjab University Regional Centre, Ludhiana, Punjab-140001
**Assistant
72 Enhancing Organizational Growth Through Innovation and Creativity: Issues, Opportunities and Challenges
meanings of the term ‘culture’ that have been used in anthropology and sociology. Business and industrial organizations are human organizations and just as in families, children absorb culture from their parents and/or other elders; employees in organizational settings absorb the culture from their managerial leaders and other seniors of that organization. In addition, this organizational culture provides many opportunities for shared assumptions, priorities, meanings and values to the organizational members. Top management people and management theorist have come to appreciate the power of organizational culture in guiding employee behaviour on the job within the company. Organizational performance has been related with the type of culture an organization has such as an open culture/strong culture or a close/weak culture. Some organizational cultures labeled, ‘strong; and other ‘weak’. A strong culture is characterized by the organization’s core values being both widely shared and intensively held. The more the members accept the core values and the greater the member’s commitment to those values, the stronger will be the culture. Those core values are expressed as decisions and actions on appropriate occasions. The degree of sharedness is affected by two main factors – ‘orientation’ through training programs, and ‘rewards’ (Pareek, Rao and Pestonjee, 1981). The degree of ‘intensity’ is the result of the reward structure. When organization members realize that they will be rewarded for performing or acting according to the espoused core values of the organization; their desire to do so increases (Luthans, 1989). Also a ‘weak’ culture may exist where important assumptions or values are not widely shared in an organization, but vary from individual to individual or unit to unit. Founders and the policy makers create a culture in the organization where people would be most productive and effective. The culture is transmitted through the process of socialization where employees come to know about its structure, processes, system, norms and expected behaviour pattern. Culture may be transmitted through stories (narrative events about the founders and success stories), rituals (repetitive sequences of activities expressing the core values), languages, symbols and gestures. ORGANIZATIONAL CULTURE
Efforts to arrive at a perfect definition of organization culture would be akin to the attempts of the blind men in the Sufi Story, who deciphered the elephant in their own way by touching the different limbs of the animal. Kroeber and Parsons (1958) define organizational culture as the transmitted and created content and patterns of values, ideas and other symbolic meaningful systems which shapes human behaviour. Bares and Posterwood (1979) define organisational culture as a pattern of behaviour
Organizational Culture and its Impact on Turnover Intentions of Employees: An Empirical Study 73
handed down to members of a group by the previous generation. Hofstede (1980) defined culture as “ the collective programming of the mind that distinguishes the member of one group or category of people from others” Deal and Kennedy (1982) define it in simplistic fashion, as the way people do things around the organization. Sathe (1983) define it as the set important understandings (often unstated) that member of a community share in common. Thus the meanings of organizational culture as viewed by the different scholars suggest that organizational culture is a pattern of basic assumptions, invented, discovered, or developed by a given group wherein the members learn to cope with its problems of external adaptation and internal integration. It has worked well enough for validity and therefore need to be taught to new members. In fine the Culture can be expressed better by “OCTAPACE” Pareek (1997). From the above explanation, we can conclude that the organizational culture as an outcome of perception, is the result of interaction between the individuals and the environment, and hence is influenced by the nature of people involved as well as the setting. TURNOVER INTENTION
Employee turnover is a much studied phenomenon. But there is no standard reason why people leave organizations. Intention to leave is strongly and consistently related to voluntary turnover (Mathieu and Zajac, 1990) Turnover is referred as an individual’s estimated probability that they will stay in an employing organization. (Cotton and Turtle, 1986). Mobley et al. (1979) suggested that intentions offer a better explanation of turnover because they encompass one’s perception and judgment. Turnover intentions are the immediate precursor to turnover behaviour (Tett & Meyer, 1993). Intent to stay (or leave) refers to an employee’s behavioural intention, and has been demonstrated to exert a strong negative influence on actual turnover (Bluedorn, 1982; Iverson, 1992; Mueller et al., 1992; Price and Mueller, 1981, 1986). Intention to leave has a behavioural implication as it entails one’s attachment to the organization (Iverson and Roy, 1994). Intention to quit represents an attitudinal orientation or a cognitive manifestation of the behavioural decision to quit (Elangovan, 2001). Intention to quit is the strength of an individual’s view to stay or to leave his/her current employer (Boshoff et al., 2002). The turnover intention, belonging to the category of voluntary turnover, refers to the thought that the working staff deliberately made a determination to leave the organization where he had been working for a period after careful consideration (Mobley, 1977).
74 Enhancing Organizational Growth Through Innovation and Creativity: Issues, Opportunities and Challenges
Employee turnover is the rotation of workers around the labour market; between firms; jobs and occupations; and between the state of employment and unemployment (Abassi and Hollman, 2000). Turnover intentions is seen (Sager et al., 1998; Jacobs and Roodt, 2007) as a mental decision intervening between an individual’s attitude regarding a job and the stay or leave decision. Tett and Meyer (1993) conceived turnover intention to be a conscious and deliberate willfulness to leave the organization. It has been described as the last in a sequence of withdrawal cognitions, a set to which thinking of quitting and intent to search for alternative employment also belong (e.g., Tett & Meyer, 1993). RELATIONSHIP BETWEEN ORGANIZATIONAL CULTURE AND TURNOVER INTENTIONS
Schwepker (2001) examined ethical climate and its relationship to job satisfaction, organizational commitment, and turnover intention among salespeople. Although salespeople are believed to be physically, psychologically, and socially separated from the organizations, results suggest that the organization’s ethical climate nevertheless influences them. He also suggested that salespeople’s perceptions of a positive ethical climate are positively associated with their job satisfaction and organizational commitment. Egan et al., (2004) examined the relationship of organizational learning culture, job satisfaction and organizational outcome variables with a sample of information technology (IT) employees in the United States. They found that learning organizational culture is associated with information technology employees’ job satisfaction and motivation to transfer learning. A turnover intention was found to be negatively influenced by organizational learning culture and job satisfaction. Mohr et al., (2005) found that Group/ entrepreneurial culture were negatively related to facilitylevel resignation rates after controlling for size, teaching affiliation and urban status. Organizations with higher scores on this culture dimension experienced lower resignation. Jacobs and Roodt (2008) found that organizational culture has a significantly negative correlation with turnover intentions. Organizational culture has also interacted with job satisfaction, knowledge sharing and the professional category to decrease turnover intentions and with organizational citizenship behavior to increase turnover intentions in a final predictive model. Jacobs and Roodt revealed that among the different types of cultures, consensual culture and rational culture had significant, positive association with the nurse’s job satisfaction. In addition consensual culture exhibited the strongest, negative association with the turnover intentions of the nurses, while hierarchical culture showed a significant, positive association.
Organizational Culture and its Impact on Turnover Intentions of Employees: An Empirical Study 75
METHODOLOGY
Present Study The above mentioned and other similar studies made the plot for the present paper. The authors attempt to study organizational culture and turnover intentions in private telecom sector organizations belonging to Panchkula, Mohali and Chandigarh. The sample comprised of 95 respondents drawn from three private telecom sector organizations (Vodafone India, Bharti Airtel, and Spice Telecom).
Objectives The present paper studies organizational culture and turnover intentions in private telecom sector organizations belonging to Panchkula, Mohall and Chandigarh. The main objectives of the paper are as follows: • • • •
To study Turnover Intentions of employees taking different demographic factors i.e. Marital Status, Qualification, and Gender etc. To find the correlation among the subscales of organizational Culture. To find the correlation between sub-scales of Organisational Culture and Turnover Intention of employees. To find the impact of Organisational Culture on Turnover intentions of employees in Private Telecom Sector Organizations.
Hypotheses H1a H2a H3a H4a H5a H6a H7a H8a
There is a significant difference in Turnover Intentions of employees at different hierarchical levels. There is a significant correlation between Turnover Intentions and the Age of the employees. There is a significant correlation between Turnover Intentions of employees and their Total Work Experience. There is a significant difference in Turnover Intentions of employees possessing different educational levels. There is a significant difference in Turnover Intentions of employees for male and female employees. There is a significant difference in Turnover Intentions of married and single employees. There is a significant correlation between sub-scales of Organisational Culture and Turnover Intention of employees. Organisational Culture has a significant impact on Turnover Intention of the employees.
76 Enhancing Organizational Growth Through Innovation and Creativity: Issues, Opportunities and Challenges
RESEARCH DESIGN
The present paper is descriptive and empirical in nature. Three organizations were chosen from private telecom sector using convenient sampling. Then a sample of top, middle and frontline managers was chosen from a sample frame of three companies using stratified random sampling. Top, middle and frontline managers were taken in the ratio of 1:2:3, based on availability and feasibility of the study. Out of a total of 95 respondents: • • • •
20 51 55 33
are are are are
top managers, 30 are middle and 45 are frontline managers. males and 44 are females. married and 40 are unmarried. graduates and 62 are post graduates.
The Other Demographics are Mentioned in Exhibit 1 Exhibit 1: Descriptive Statistics Age Total Work Experience
N 95 95
Minimum 23 05
Maximum 38 10
Mean 1.88 .183
Std. Deviation .770 .794
MEASURES
Primary data was collected through preliminary interviews and questionnaires ultimately. Organizational Culture Questionnaire (Udai Pareek) is used to undertake the study. The scale is multidimensional, suggesting eight subscales i.e.; Openness, Confrontation, Trust, Authenticity, Pro-action, Autonomy, Collaboration, and Experimentation. Questionnaire on Turnover Intentions was developed. The Cronbach alpha coefficient of Turnover Intentions Scale was found to be 0.87. DATA ANALYSIS
Preliminary Analysis: Data were examined for outliers and possible errors prior analysis, and none were detected. The data also were screened for possible violations to assumptions of normality and linearity. No violations were found. Results of Kruskal-Wallis (Level-wise, Age-wise and Experience-wise comparison) The results are presented in the Table-1 below. Table 1: Test Statistics Chi-Square df Asymp. Sig.
Age 2.568 2 .277
Level 1.119 2 .571
Experience 1.468 2 .480
Organizational Culture and its Impact on Turnover Intentions of Employees: An Empirical Study 77
The result of Kruskal-Wallis test in table-2 suggests no significant difference (p value>.05) on age (p equals.277), level (p equals.571) and experience (p equals.048). Therefore, the null hypotheses (H1, H2, and H3) that there is no significant difference in Turnover Intentions of employees with different age, total work experience and hierarchical level are not rejected. Result of Two-Sample Kolmogorov-Smirnov (Qualification-wise, Genderwise and marital Status-wise comparison) The results are presented in the Table-2 below. Table 2: Test Statistics Qualification .148 .086 -.148 .685 .736
Most Extreme Differences Absolute Positive Negative Kolmogorov-Smirnov Z Asymp. Sig. (2-tailed)
Gender .213 .213 -.020 1.035 .234
Marital Status .200 .200 -.018 .962 .312
The Result of Two-Sample Kolmogorov-Smirnov Test in table-3 suggest no significant difference (p value>.05) on qualification (p equals.736), gender (p equals.234) and marital status (p equals.312). Therefore, the null hypotheses (H4, H5, and H6) that there is no significant difference in Turnover Intentions of employees possessing different educational level, male/female and married/single employees are not rejected. RESULT OF SPEARMEN’S CORRELATION
The results are presented in the Table -3 below. Table 3: Spearman’s Correlation Authenticity
Proaction
Autonomy
Collaboration
Experimentation
Turnover Intention
Organisational Culture
Trust
Trust
Confrontation
Confrontation
Openness
Openness
Dimensions
Correlation Coefficient
1.000
.183
.330**
.119
.497**
.257*
.418**
.163
-.122
.451**
Sig. (2-tailed) N Correlation Coefficient Sig. (2-tailed) N Correlation Coefficient Sig. (2-tailed) N
.
.076
.001
.252
.000
.012
.000
.114
.238
.000
95 .183
95 1.000
95 .454**
95 .467**
95 .222*
95 .412**
95 .467**
95 .623**
95 -.219*
95 .707**
.076
.
.000
.000
.031
.000
.000
.000
.033
.000
95 .330**
95 .454**
95 1.000
95 .516**
95 .429**
95 .292**
95 .558**
95 .441**
95 -.311**
95 .709**
.001
.000
.
.000
.000
.004
.000
.000
.002
.000
95
95
95
95
95
95
95
95
95
95
78 Enhancing Organizational Growth Through Innovation and Creativity: Issues, Opportunities and Challenges Authenticity
Correlation Coefficient Sig. (2tailed) N Proaction Correlation Coefficient Sig. (2tailed) N Autonomy Correlation Coefficient Sig. (2tailed) N Collaboration Correlation Coefficient Sig. (2tailed) N Experimentatio Correlation n Coefficient Sig. (2tailed) N Turnover Correlation Intention Coefficient Sig. (2tailed) N Organisational Correlation Culture Coefficient Sig. (2tailed) N
.119
.467**
.516**
1.000
.356**
.257*
.478**
.411**
-.513**
.675**
.252
.000
.000
.
.000
.012
.000
.000
.000
.000
95 .497**
95 .222*
95 .429**
95 .356**
95 1.000
95 .274**
95 .321**
95 .198
95 -.312**
95 .523**
.000
.031
.000
.000
.
.007
.001
.054
.002
.000
95 .257*
95 .412**
95 .292**
95 .257*
95 .274**
95 1.000
95 .466**
95 .561**
95 -.330**
95 .624**
.012
.000
.004
.012
.007
.
.000
.000
.001
.000
95 .418**
95 .467**
95 .558**
95 .478**
95 .321**
95 .466**
95 1.000
95 .566**
95 -.446**
95 .829**
.000
.000
.000
.000
.001
.000
.
.000
.000
.000
95 .163
95 .623**
95 .441**
95 .411**
95 .198
95 .561**
95 .566**
95 1.000
95 -.395**
95 .750**
.114
.000
.000
.000
.054
.000
.000
.
.000
.000
95 -.122
95 -.219*
95 -.311**
95 -.513**
95 -.312**
95 -.330**
95 -.446**
95 -.395**
95 1.000
95 -.537**
.238
.033
.002
.000
.002
.001
.000
.000
.
.000
95 .451**
95 .707**
95 .709**
95 .675**
95 .523**
95 .624**
95 .829**
95 .750**
95 -.537**
95 1.000
.000
.000
.000
.000
.000
.000
.000
.000
.000
.
95
95
95
95
95
95
95
95
95
95
**Correlation is significant at the 0.01 level (2-tailed).
Result of Spearmen’s Correlation (Correlation of Turnover Intentions with different variables of Organisational Culture and Overerall organizational culture) The result of Spearmen’s Correlation (table-4) suggest very significant correlation (p value