chapter iii conceptual framework of quality of work...
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Chapter III
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CHAPTER III
CONCEPTUAL FRAMEWORK OF QUALITY OF WORK
LIFE, ORGANIZATIONAL COMMITMENT
EMPOWERMENT AND INDUSTRIAL PROFILE.
This chapter details the basic concepts of Quality of work life, organizational
commitment and employee empowerment. It also discusses aboutwomen executives
and their Quality of work life, organizational commitment and empowerment in work
place that underpin the conceptual framework for this thesis.
Over view of Quality of Work Life, Organizational Commitment and Employee
Empowerment:
A conceptual framework is a set of ideas, used to structure any planned research work.
It is a guide to the researcher in framing the research questions, reviewing the related
literature and analysing the data. Such a framework should be intended as the starting
point of any research work. It also helps the researcher to make a logical sense of the
factors and variables that have been deemed relevant to the research study. In this
chapter various concepts and models of organizational factors of QWL are
stated.Individuals selectively perceive and make attributions about their jobs in
accordance with the expectations they bring to the workplace.
Therefore an individual’s Quality of Work Life is influenced by his or her work
expectations and experience at work. When the employees perceive that the work life
in the Individuals selectively perceives and makes attributions about their jobs in
accordance with the expectations they bring to the workplace. Therefore an
individual’s Quality of Work Life is influenced by his or her work expectations and
experience at work.
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Individuals selectively perceive and make attributions about their jobs in accordance
with the expectations they bring to the workplace. Therefore an individual’s Quality
of Work Life is influenced by his or her work expectations and experience at work.
When the employees perceive that the work life in the
Organization is up to their expectations it is said that, QWL is provided by the
employer. (Hodson 1985, Chatman 1989)1.
"Workers are more likely than planners to know what dissatisfies them, what causes
these dissatisfactions, and what to do about them"(William Grimes 1994)2.
“Dissatisfaction with work life is a problem which affects almost all workers at
one time or another, regardless of position or status. The frustration, boredom, and
anger common to employees disenchanted with their work life, can be costly to both
the individual and the organization. Many organizational experiments carried out seek
to improve both productivity for the organization and the quality of working life for its
members” (Walton 1973)3.
The organizations have realized that the employees are said to be satisfied
when due attention is paid to a high Quality Work Environment (Mumford 2006)4.
The resourcefulness of the employees in an organization depends largely on the
environment at the workplace (Geers, Weiland, Kosbab, Landry &Helfer 2005)5.
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Often employees start jobs with expectations based on their life experiences, career
aspirations, and personal characteristics (Woods 1993)6.
Variation between relevant work expectations and the actual experience at
work is said to be an important factor influencing employee turnover. (Pearson, C. A.
L. 1995)7It is confirmed that satisfied employees are more likely to be highly
motivated, have a good morale at work, and given the opportunity can work more
effectively and efficiently(Eskildsen&Dahlgaard 2000)8. Employers are challenged to
provide benefits and services to their employees, so as to better satisfy them in the
quest to provide an effective and efficient service to its customers (Gronroos 1990)9.
QWL not only contributes to a company's ability to recruit quality people, but also it
enhances a company's competitiveness. Common beliefs support the contention that
QWL will positively nurture a more flexible, loyal, and motivated workforce, which
are essential in determining the company’s competitiveness.
The concept of quality of work life goes beyond the legislative acts of
protecting the worker, and attends to the necessities and aspirations of the human
beings focused on the idea of humanizing the work and in the social responsibility of
the company. The reconciliation of the interests of the individuals and the
organizations is something that seems common to all authors in the QWL
conceptualization (Fernandez 1996)11.
Quality of Work Life will be varying from place to place, industry to industry
and culture to culture (KlottMundick and Schuster 2009)12. The concept of QWL with
special reference to services sector is discussed below.
Services Sector Employees and Quality of Work Life
(Heskett et al.1994)13 suggested that quality of work life of employees will
improve external service quality to its customers and one may suggest that employees
with quality of work life will be more willing to provide services quickly
(responsiveness) with better courtesy (assurance) and to better understand the needs of
customers (empathy). Hence, more satisfied employees will provide better service.
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In service operations, employees are the most important assets with respect to service
quality because they are the ones who provide services to customers. Those who have
better job environment are more experienced, more skilful, and more willing to
provide services. Consequently, better external service quality will be achieved as
employees’ quality of work life is enhanced (WenShin Chen 2001)14.
(Schneider & Bowen 1985)15 A climate for employee well-being serves as a
foundation for a climate for service. Therefore, if employees perceive an organization
as offering a good work environment in return for their contribution to an organization,
then it is likely that employees will report higher levels of performance and job
involvement. Employee satisfaction facilitates superior performance and also greater
attraction and retention of the best employees, thereby enhancing the ability of the
organization to deliver higher quality services. Realization has dawned among
researchers and practitioners that customers are not just external, but that the
organization has internal customers as well, that is, their employees (Berry 1981)16.
“To analyse the quality of work life of employees various interrelated factors
needs careful consideration”. Quality of work life was thought to be based solely on
“extrinsic” traits of the job such as salaries and other benefits, safety, job security and
physical work environment. But human relations approach stresses that, while
extrinsic rewards are important, “intrinsic rewards” are key predictors of quality of
work life and employee efficiency. The “intrinsic” rewards includes traits specific to
the work done, the task content, skill levels, autonomy, and challenge (Crompton and
Harris 1998, Krahn and Lowe 1998, Rose 1994, Gallie 1990,Goldthorpe et al
1966)17.
According to the American Society of Training and Development QWL is a process
of work organization which enables its members at all levels to actively participate in
shaping the organization’s environment, methods and outcomes. This value based
process is aimed towards creating the twin goals of enhanced effectiveness of
organization and improved QWL of employees (Skirovan D 1980)18.
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The theoretical concepts of various authors stated in the above paragraphs
highlighted the importance of the quality of work life of employees in general and
services sector in particular. With a view to gain an in-depth knowledge on the
“factors” influencing QWL of employees in services sector the conceptual
framework and models of such factors developed by various authors are highlighted
below.
For the purpose of this study the organizational factors of QWL are identified
as pay and incentives, fringe benefits, job security, physical environment, work stress
stress, communication, opportunities for career growth, attitude of superior and job
autonomy. Further, the impact of these organizational factors on the organizational
development and the models developed by various authors on Organisational
commitment is also depicted in the following paragraphs.
Organisational Commitment
The concept of organisational commitment has attracted considerable attention
over recent years and has become a central objective of human resource management.
As Guest, 1987 indicated, HRM policies are designed to “maximise organisational
integration, employee commitment, flexibility and quality of work”. Interest refers to
“Commitment” which can be described as attachment and loyalty. Individuals can
display this attachment and loyalty at a variety of levels: their job, profession,
department, boss or organisation. Realistically then, commitment may therefore be
diverse and divided between any of these.
More specifically, Organisational Commitment has been defined by Mowdray,
1992 as consisting of three components: “identification with the goal’s and values of
the organisation, a desire to belong to the organisation and a willingness to display
effort on behalf of the organisation.”
Organizational commitment in the organizations has been extensively researched. It
was defined as the strength of involvement one has with the organization (Hall and
Schneider,Mowday et al.). Definitions had three main aspects; (a) a belief in and
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acceptance of organizational goals and values, (b) a willingness to exert effort towards
organizational goal accomplishment, (c) a strong desire to maintain organizational
membership (Mowday et al., Morrow). It was also accepted that commitment is a
process of identification with the goals of an organization’s multiple constituencies.
These constituencies may include top management, customers, unions or the
public at large (Reichers, 2005). According to the researchers, positive consequences
of organizational commitment is a long list that includes higher rate of attendance,
reduced burnout, employee retention, improved job performance, work quantity, work
quality, limited tardiness, low labour turnover and personal sacrifice on behalf of the
organization. (Tan and Akhtar, 1998; Somers and Birnbaum, 1998). The evidence on
the prediction of these numerous antecedents was tested in different settings. But tests
in wide spread organizations are scarce.
Normative Commitment
Affective Commitment
Continuance Commitment
Organizational commitment had three distinct domains (Allen and Meyer, 1990;
Dunham, Grube and Castaneda, 1994): affective, continuance and normative.
These three domains make up a construct and a member may have varying degrees of
all three components as a result of his or her relationship with the organization.
Affective commitment is defined as member’s emotional attachment to, identification
with and involvement in the organization and its goals. Continuance commitment is
Organisational Commitment
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defined as willingness to remain in an organization because of personal investment in
the form of non-transferable investments such as close working relationships with co-
workers, retirement investments and career investments, acquired job skills which are
unique to a particular organization. Normativecommitment is induced by a feeling of
obligation to remain with an organization. Such a feeling of obligation often results
from what Wiener (1982) characterized as “generalized value of loyalty and duty”.
When committed members tend to satisfy their social needs with other committed
members the relationship between members and management improves (Hansen et al.,
2002: 44).
Employee Empowerment
Many individuals think of employee empowerment only in behavioural terms.
Indeed, many think of it in terms of allowing a free-flowing, non-structured
environment for employees. Employee involvement and participative management are
often used to mean empowerment. They are not really interchangeable. Employee
involvement or empowerment is a complex concept; it tends to mean different things
to different people. According to Nielsen and Pedersen, (2001), “employee
empowerment” as defined by (McClelland, 2005; Conger and Kanungo, 2008) may be
seen as part of the broader concept of “employee involvement” which also includes
“participative management” The term “empowerment” is elastic and so it is not
always clear what it means in different organizations (Wilkinson1998; Dainty, et al,
2002). Notions of empowerment are derived from theories of participative
management and employee involvement (Spreitzer, KizilosandNason, 1997). The
theories of employee empowerment advocate that managers share decision- making
power with employees to enhance performance and work satisfaction (Wagner111,
1994). Lawler 111, (1991) on the other hand argues that employee involvement
emphasizes cascading power, information, rewards, and training to the lowest level
possible in the organizational hierarchy to increase worker discretion. As it turns out
employee involvement is a multidimensional concept.
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According to Olshfski and Cunningham (1998),” empowerment is about
delegation or sharing of power, authority or responsibility by those in the
organizational structure to those lower levels of the organization”.
Hickey and Casner-Lotto (2008) defines “Employee empowerment is about
delegating directly to non-management employees a significant amount of decision-
making authority commonly reserved for managers”. They further argue that a truly
participative organization is characterized by work systems that are structured to make
employee involvement on-going.
Employee empowerment is about decision-making, information sharing and
power sharing. Some researchers have also equated it to decision-making. For
example Nykodym et al., (2004) posit that employee empowerment or participative
decision-making is neither a new or simple management concept; while Bowen and
Lawler, (2002) point out that empowerment enables employees to make decisions and
Pastor (2006) emphasizes the taking of responsibility for decisions made. From a
mechanist or top-down approach, employee involvement is about delegation and
Decision-making
Planning daily activities
Setting targets
Setting policies and procedures
Using personal judgment
Information sharing
Team work
Suggestion boxes
Feedback
Consultation with supervisor
Power sharing
Ownership programs
Labour-management
Partnerships
Profit sharing
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accountability (Quinn and Spreitzer, 1999). Collins (1996) argues that that is a narrow
definition of empowerment since it hinges more on accountability than any wider
change in the process of work and decision-making which might be implied by a more
active modelling of empowerment. Collins (1995) sees that as a limiting type of
empowerment as at the end of it, the workers are empowered only in the sense that
they have a greater responsibility to act within a narrow sphere and then held
accountable for their limited action.
Employee empowerment refers to as the involvement of everyone, including
both management and employees that results into the disappearance of boundaries
between formal and informal leader to that of an inclusive organization where there
are “leaders of leaders”. At that level everyone in the organization feels empowered.
That kind of participatory management practice in a way balances the involvement of
managers and their subordinates in information sharing, decision-making or problem –
solving endeavours .However, (Hammuda and Dulaimi, 2007) posit that
empowerment is not meant to be a delegation revisited, but rather a wider meaning of
employees controlling their own destinies.
Women Executives and their Quality of Work Life, Organizational Commitment
and Empowerment in Work Place
Quality of work life among women executives: For a working individual, Quality of
Life cannot be separated from the quality of work. It provide an enabling environment
for women, and gender policy must take into account the opportunities that companies
can bring to women is Flexible working hours, especially during childbearing and
rearing years may be allowed to meet the family needs, whenever it is possible to do
so, without compromising the organisation’s goals.
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Control at work
General well being Job and Career Satisfaction Job appeal Work Life Balance Work Environment
At present scenario the women executives are concentrating on General Well-
Being assesses the extent to which an individual feels good or content within
themselves. General well-being both influences, and is influenced by work.
General Well Being incorporates both broader psychological well-beings as
well as general aspects of physical health. Psychological well-being can affect a
women employee performance at work for better or for worse. When people
feel good, they work well and enjoy being at work more. It can be useful to
review relevant policies and services, foster or maintain awareness and clarify
responsibilities, and ensure that monitoring is effective. A heightened awareness
of this aspect and its role in the overall Quality of work life a women employee
experiences can serve to help people consider more carefully what they can do
to look after their own and others’ well-being, so helping people work well at
work and feel well when working.
Women executive started concentrating more on Job and Career Satisfaction
.It represents the level to which the workplace provides a person with the best
things at work. The things that make the women employees feel good, such as:
sense of achievement, high self-esteem, fulfilment of potential, etc. The most
important determinants of job satisfaction are women employees’ interest in
QUALITY OF WORK LIFE AMONG
WOMEN EMPLOYEES.
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their work, good colleague relationships, high incomes, independent working
and clearly defined career opportunities. Most of the Women executives feel
that job satisfaction depends, on one hand, on the individual characteristics of
the person such as the ability to use initiative, relations with supervisors, or the
work that the person actually perform and on the other hand, environment
factors such as pay, promotion and job security. The rapidly changing nature of
the workplace is becoming more demanding on the women employee, where
upon longer working hours, job insecurity, and demanding deadlines are trends
that have tended to challenge maintenance of women executive satisfaction.
More positively, the women executives feel that when there is some changes in
workplace policies can lead to increases in work performance and job
satisfaction
Work-Life Balance is about people having a measure of control over when,
where and how they work. Within the current Quality of work the Home-Work
Interface factor reflects the extent to which the employer is perceived to support
women executive’ family and home life. Both the individual and the employer
need to actively and continually monitor work-life balance, and make
adjustments as required. Traditionally, there was a misconception about a
woman’s ability to balance her work and personal life. There are women, who
committed themselves to success and growth of organizations. They include,
Anne Mulcahy at Xerox, Carly Fiorina of Hewlett-Packard, Sara Mathew of
Dun & Bradstreet Inc., SulajjaFirodiaMotwani of Kinetic Engineering Ltd.,
Ranjana Kumar of NABARD, VidyaChhabria of Jumbo Group,
NainaLalKidwaj at HSBC, IndraNooyi at PepsiCo, KiranMazumdar Shah at
Biocon, LalitaGupte and ChandaKochar of ICICI. These are a few notable
examples of women, who not only balanced their home life with their work, but
also reached top positions in their respective organizations with their own styles
of leadership; a woman’s journey to such positions is not easy. Many research
studies strongly support that woman’s are born with the power of handling
situations as they are tough warriors. Many experts strongly believe that women
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are associated with more participative an interactive management skills. With
this they not only encourage their employees, but also make them feel more as
part of one family. This, in turn, helps them to achieve their goals and
objectives successfully.
The women executives in the corporate world feel that Control at Work plays
a very vital role in Quality of work life. It reflects the level to which a women
employee feels they can exercise what they consider to be an appropriate level
of control within their work environment. That perception of control might be
linked to various aspects of work, including the opportunity to contribute to the
process of decision making that affect women executives Most women
executives as who are in the top management suggest that perception of
personal control can strongly affect both an individuals’ experience of stress
and their health. They also suggested that there can be a positive significant
association also between personal control and job satisfaction and that poor
health is more prevalent in jobs characterised by high job demand and low job
control. However, organisations can reduce job strain by increasing worker
control without reducing actual workload. Some organisations have found that
they were able to change their administrative structure to reduce women
employee stress and protect women executives’ mental health without adversely
affecting productivity.
At present era the Women Employees wanted the management to make the job
more appealing. Job appealing can be done by attractive salary, better
communication and improved benefit packages.
To improve the Quality of work life the women executive believes they should
have favourable work environments. Working Conditions assesses the extent
to which the women executive is satisfied with various aspects affecting their
ability to work effectively, such as the fundamental resources provided at work,
the physical working environment, and security. Dissatisfaction with physical
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working conditions such as health and safety, or work hygiene can have a
significant adverse effect on women employees Quality of work life.
Organizational Commitment among Women Employees: To be successful in
today’s business environment, companies need the knowledge, ideas, energy, and
creativity of every employee, from front line workers to the top-level managers in the
executive suite. Commitment practices are implemented with the hopes of building
employee commitment, overcoming worker dissatisfaction, and reducing absenteeism,
turnover, poor quality work, and sabotage. Reservations are given more priorities in
case of public sector. Whereas the policies of the private and MNC the main concern
is on improvement of women in the organisation. Accordingly, management policy in
all the sectors prominence is on the women’s role in the organization.
Career Opportunities-Career is the interaction of work roles and other life
roles over a person’s lifespan including both paid and unpaid work in an
individual’s life. The company policies play an important role in providing
career opportunities. It seems that the organization may benefit from increasing
Organizational Commitment among
Women employees:
Career Opportunities
Work Life Policies
Job Characteristics
Positive relationship
Organizational structure and Management Policies
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commitment across all career stages. Career advancement, autonomy and
measurability of output related to commitment indicate that the creation of job
ladders and job flexibility will maximize commitment of women employees
and minimize absenteeism and turnover.
Work Life Policies-Friendly work life policies are required to reduce negative
impacts of work life conflict among women employees. Organizations can use
different time based strategies like flex time to reduce the work life conflicts of
women employees. Researchers also support the idea of flexible timing and
working conditions. Organizations need to accommodate these individuals with
remote access for telecommuting, childcare centres, referral programs and
employee assistance programs. Hence friendly work life polices can induce
organizational commitment among women employees.
Job Characteristics-The job must have five core characteristics and they are
skill variety, task significance, task identity, autonomy and feedback. Women
employees who follow organizationally designed job patterns should be
appreciated and rewarded with good pay and incentives. Their innovation and
creativity has to be encouraged.
Positive relationship- The organization as a work place environment is built
up of working relationship. When the women employees find the supervisory
relationship to be fair in its practices and they tend to be more committed to the
organization
.
Organizational structure and Management Policies-Organizational
structure plays an important role in organizational commitment. The
management can increase the level of women employees’ commitment with
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greater direction and influence. The management policies that encourage
employee involvement can help to satisfy women employee’s desire for
empowerment and demand for a commitment in organizational goals.
Management support plays a vital role in women employees’ commitment. If
the management provides them work life benefits and other employee
supports, the women employees will be more committed to organization.
Women Empowerment in the Workplace:Empowerment of women in the
workforce means allowing women to have more control over their lives. It means
giving them the freedom to make their own schedules, learn new skills and gain self-
reliance. Empowerment is created when the strengths that women already bring to the
company are recognized and utilized. Research provided by various researchers has
shown that businesses that promote women empowerment and gender equality are
more profitable. As more businesses take part in gender equality measures and see
their revenue increase as a result, the case for empowering women in the workplace is
likely to become a more recognized goal.
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Gender Equality-The importance of gender equality is documented in "The
Business of Empowering Women," a survey of 2,300 women executives. The
survey found that the companies who focused their efforts on empowering
women reported significant business benefits. A third of the businesses
surveyed reported that their investments in women resulted in increased
profits; another third reported their investments were expected to grow in the
short-term. In order to help companies incorporate gender equality into the
workplace, the United Nations organization has established "Women's
Empowerment Principles," which recommends that businesses establish
gender equality goals that should be incorporated into manager performance
evaluations.
Equal Opportunity and Non-discrimination-Researchers suggests that
allowing women more power and control in the workplace allows businesses to
diversify decision-making, resulting in higher revenue. In order to provide
equal opportunity for women in the workplace, Women employees
recommends that employers ensure each employee receives equal
compensation to that of other employees of similar rank, experience and tenure.
The organization suggests implementing gender-sensitive recruiting practices
and appointing women to management and board of director’s positions.
Health and Safety Environment-Investment in safe working conditions and
health policies is good for business. Research by the Massachusetts Institute of
Technology found that violence and harassment are disruptive in terms of
lower productivity; they often result in litigation and bad company publicity.
Women employees suggest employers adopt and emphasize a zero-tolerance
violence and sexual harassment policy at work. Businesses should invest in
health insurance policies that include counselling; they need to respect all
workers' rights to medical leave and counselling for themselves and their
dependents.
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Education and Training-Employers should encourage women to pursue non-
traditional jobs and ensure that all employees have equal opportunities to get
involved with mentoring programs.
Leadership- The distinctive and persuasive leadership style of women
employees enables them to build long-lasting relationships as opposed to mere
social networks. Women corporate leaders tend to be intuitive and calculated in
their decision making qualities that enable fair and sound judgment. Employers
should partner with other businesses to advocate for gender equality and more
opportunities for women. It is also important to recognize women who
contribute and work in leadership roles within the community.
Employee Empowerment among Women Executives improves their Quality of
work life and commitment towards organization:
Quality of work life, organizational commitment and employee empowerment are
the three most important and fundamental subjects in today's organizational
behaviour. Organizations, as systems, need coordination and efficiency among their
subsystems. One of the most important of these subsystems is manpower and
considering it is one of the most important priorities of the organization. Sufficient
attention to manpower leads to flourishing of the talents and prevents further problems
for the organization and management. Therefore many organizations focus more on
Quality of work life, Commitment and employee empowerment. Nowadays, there are
many organizations which provide integrated systems of beneficial services, which
include family benefits, to their staff. When employees are committed to the
organization, they get their identity inside it and remain loyal to it (Rout, 2000, p. 51).
Quality of work life program includes all kinds of improvements in organizational
culture which support growth and excellence in the organization (Philpot, 1987, p.
412). QWL in organization is essential for attracting and retaining employees.
Separating and determining which characteristics affect QWL is difficult. Oftentimes
quality of work life includes many concepts, one of which is employees'
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understanding of work and non-work lives (G. Nasal Seraji, 2006, p.
35).Organizations can make their staff committed to the organization by improving
quality of work life satisfying their essential needs, establishing mutual trust, and
creating an appropriate organizational culture. Commitment can have many positive
outcomes; those who have commitment are more orderly in their work, spend more
time in the organization and work more.
When women employees experience more empowerment, they report less job
strain and more job satisfaction and organizational commitment. They are also less
likely to leave the company. Empowerment does not only affect employee attitudes, it
also affects their performance (i.e., managerial effectiveness and employee
productivity/performance) and work behaviours (i.e., innovation, upward influence,
and being inspirational to others).
Managers should keep employees committed to the organization, and to do so,
they should be able to make them more committed by using employees' participation
in decision-making and providing an acceptable level of job security (Moorhead,
translated by Alvani and Memarzadeh, 1995, p.75).The increase in Quality of work
life and organizational commitment of manpower (in all three aspects of affective,
continuance, and normative) can have a great impact on the level of interest, job
satisfaction, willingness to stay, and organization performance. The importance of
manpower in advancement of a society affairs is so much that it can be considered as
the most effective pillar of scientific, cultural and economical developments in a
countries.
Empowered teams are also more proactive, less resistant to change, satisfied with their
jobs, high quality of work life and committed to the team and the organization. More
empowered teams have better process improvement, higher quality products/services,
and more customer satisfaction than less empowered teams. Programmatic research
on high involvement work practices has been conducted by researchers at the Centre
for Effective Organizations at the University of Southern California. Their research
has shown that high involvement practices which involve sharing power, information,
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knowledge, and rewards with employees at all levels has positive outcomes for
organizations, particularly in terms of improvements to employee quality of work life,
better commitment in organization the quality of products and services, customer
service, and productivity.
Conceptual Framework: The Empowerment in Organisation by women and women
employee empowerments significantly contributes towards improvement in quality of
work life of women employees, better commitment towards organization and along
with achievement of prime objective of the organisations. Based on above discussion
the frame work is shown in figure below.
Many experts believe that organizations can improve Quality of work life and
organizational commitment of women employees through employee empowerment.
This occurs in one of two main ways. First, empowerment can strengthen quality of
work life by providing women employees with the opportunity to attain intrinsic
rewards from their work, such as a greater sense of accomplishment and a feeling of
importance. In some cases, intrinsic rewards such as job satisfaction and a sense of
purposeful work can be more powerful than extrinsic rewards such as higher wages or
bonuses. Motivated employees clearly tend to put forth more effort than those who are
less motivated. The second means by which women employee empowerment can
increase Quality of work life and organizational commitment through better
Women Employee
Empowerment
Improved Quality
Of Work Life
High Progress in organizational commitment among women
employees.
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autonomy, training, work environment, leadership, control at work, openness and trust
and management policies. Employees who are allowed to participate in decision-
making and empowered to carry out their work are more committed to take initiative
and contribute new ideas. Empowerment thus inspires change and increases the level
of quality of work life and workplace commitment which increases the degree of
individual commitment and helping for achievement of organizational goal. The key
inputs for positive results are training, education and counselling in order to create a
new work ethos.
The benefits that can be derived from employee empowerment include women
employee commitment, improved quality of work life, efficiency, responsiveness,
synergy and management leverage. (Lin, 1998). To be a bit more specific,
empowerment is beneficial because everyone can see and manage their work as part
of the interconnected system. People are trusted and responsible adults, which is how
they behave. A collection of small, self-contained teams or business units are many
times more flexible and responsive at meeting threats and capitalizing on
opportunities. Quality of work life, commitment, energy, and passion levels are high.
Everyone focuses on meeting customer and stakeholder needs. Women Employees
have more control over the work, the vicious cycle of learned helplessness in replaced
with a virtuous recycle of hopefulness and leadership. The feedback loops are much
clearer and closer to the customer. (Clemmer, 2002). Results from companies using
the empowered team concept show that: “dynamic results occur with committed and
creative teamwork, high quality of work life among employees, employees become
more confident and motivated to the team process, and the better and stronger
company in the end result.” (Hellinghausen& Myers, 2006). In addition, individual
team members offer a broad set of skills and ideas, cross functional teams can greatly
facilitate project implementation as many systems project require cross functional
cooperation, innovativeness and customer satisfaction can be improved as teams are
empowered to make customer decisions in without having to wait for managerial
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approval, and finally, the quality of work life is improved as employees are more in
control of their own destiny. (Johnson, 2008).
The Empowerment in Organisation by women and women employee
empowerments significantly contributes towards improvement in quality of work life
of women employees and committed towards organization along with achievement of
prime objective of the organisations. However, its success depends upon the
commitment and attitudes of the management, union, and the employees of the
organisation. For a working individual, Quality of Life cannot be separated from the
quality of work. It provide an enabling environment for women, and gender policy
must take into account the opportunities that companies can bring to women is
Flexible working hours, especially during childbearing and rearing years may be
allowed to meet the family needs, whenever it is possible to do so, without
compromising the organisation’s goals.
The present study adopted a different approach and examined their roles in
terms of their independence as well as joint contributions to the Quality of Life and
Organizational Commitment of working women. It focused on women’s
empowerment in the corporate world. When the women employees experience good
quality of work life they tend to be more committed to their organization. Both
Quality of work life and Organizational Commitment play a significant role in
empowering Women employees in their work place. When there is women employee
empowerment in work place, it improves the quality of work life among women
employees and they will be more committed towards organization in achieving the
organizational goals.
Industry Profile
An industry profile is a brief or a comprehensive summary of a particular
industry which discusses the history, employment, revenue, characteristics,
technology, and the overall outlook of an industry. Since, this study is cornered on
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service industry the profile of services industry in general and the profile of banks,
insurance and telecom in particular is discussed below.
Profile of Indian Services sector and its importance
India’s Services Sector contribution to its GDP has been higher than that of
agriculture and manufacturing sectors over a past two decades as shown in Table 3. It
is indeed very interesting to know that India’s Services Sector was continuing to grow
even at the time of global recession when the Worlds’ Services sector was badly
affected both in terms of GDP growth as well as Employment (shown in graph 3.1 and
graph 3.2).Services Sector is also a large and most dynamic part of the Indian
economy both in terms of employment potential and contribution to national income.
India ranks twelfthin services output after US, Japan, UK, Germany, China, France,
Italy, Spain, Canada, Brazil and Russia. It provides employment to around 23% of the
total workforce in the country. The following table shows a comparison between the
three industries in India in terms of contribution to India’s GDP.
TABLE 3.1
Growth of Services Sector in India
Sectors
% share in GDP
1990
-91
2001
-02
2004
-05
2005
-06
2006
-07
2007
-08
2008
-09
Agriculture, forestry and fishing
32% 25% 21% 19.5% 18.5% 17.8% 17.5%
Manufacturing and mining 27% 26% 26% 26.4% 26.7% 26.5% 24.1%
Services Sector 41% 49% 53% 54.1% 54.8% 55.7% 58.4%
Total 100 100 100 100 100 100 100
Source: Central Statistical Organization, Ministry of Statistics and Program Implementation India 2012
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Table 3.1 clearly shows that
1. Services sector has been showing a higher growth rate than that of agriculture and
manufacturing for the past two decades.
2. India’s services sector contribution to the country’s GDP has been increasing even
during global recession (2008) and went up nearly to 58.4% in 2009 (which
accounts for more than half of India’s GDP). This shows the strength of services
sector in India.
TABLE 3.2
Employments in India- Sector Wise
Sector Employment %
Banking 17.5%
Insurance 20%
Telecom 62.5%
Source: India Labour Force statistics 2012
Tableshows that the majority of workforce is employed in Services Sector in
India. The concentration of the world population in countries like China and India
with more than one billion each was a matter of concern before liberalization. On
account of liberalization both the nations have become more service oriented because
of it’s highly skilled labour, and have shown their respective potentialities of its
peoples they hold. India has over 380 universities and about 1500 research institutes
which churn out approximately 2,00,000 engineers, 3,00,000 post graduates, 2,10,000
other graduates and around 9000 PhDs every year. This large base of skilled
manpower offers unparalled advantage to the companies operating in India. As a
result many multinational companies have either established operation hubs in India to
leverage sizeable talent pool or they have outsourced their work to a third party in
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India. This has made sure that the services that are available in the country are of best
quality. This has given a major boost to the Indian Services Sector in terms of GDP.
The working age population in India is expected to rise by 83% by 2030.
The following table shows the change in working population from 2010-30
among BRIC countries in the world.
TABLE 3.3
Change in working population
Country Change in working population 2010-30 (in million)
Brazil +18.40
China +9.90
India +241.10
Russia -17.00
Japan -13.00
Source: United Nations, World Population Prospects,2008
CHART
18.4 9.9
241.1
-17 -13
-50
0
50
100
150
200
250
300
Brazil China India Russia Japan
Change in working population 2010-30 (in million)
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Between 2010-2030 India will add 241 million people in working-age population;
Brazil will add around 18 million, while China will add 10 million people. The
increase of Indian working population is a good sign for the growth of Indian services
sector in future.
Future of services sector in India
Being the fastest growing segment, the Indian economy is likely to be
overwhelmingly dependent on the growth of services sector in future. More than 70%
of India’s incremental GDP and 60% of new jobs over the next five years are expected
to be generated by Services Sector. (Source: A survey on country’s services sector
2012, Boston consulting group-India)
The future of Indian economy is proving to be brighter not only because of its
huge human resources and their competency but also because of increasing
consumerism, absence of controls and licenses, interest of foreign entrepreneurs in
India and existence of four hundred million middle class people (Chand Khandela
2007)19.
The International Labour Organization (ILO) has predicted that the services
sector will surpass all other sectors in job creation by 2015 in the Asia-Pacific region,
which includes India and China. (Source: Times of India , Services sector to create
most jobs by 2015: ILO Published on 08/14/2007)
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The various sectors under the Service Industry in India are communication, insurance,
banks, construction, trade, hotels, transport, restaurant, storage and real estate. The
profile of sub service sectors in India is shown in table.
TABLE3.4
Sub Service Sectors share to GDP (India)
Sub-Services Sector 2005-06 2006-07 2007-08 2008-09
Communication, Transport, Hotels 26.4 27.1 28 30.2
Insurance, Banks, Financial and Business Services 13.8 14.3 14.6 14.8
Community, social and Personal services 13.9 13.4 13.1 13.4
Total contribution by services sector as shown in table 3.3 54.1 54.8 55.7 58.4
Source: National accounts statistics 2012
The above table shows the profile of three sectors taken for study such as
banks, insurance and telecom in terms of growth rate of employment for the year
2012. It is clear from the table that Banking, Insurance and Telecom has created more
than 50% growth rate in employment. Whereas IT sectors the giant sector under
service industry showed a negative growth rate of employment because of global
recession
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73
TABLE 3.5
Growth rate of employment in 2011-12
Sector Growth in %
IT/enabled -7.84
Banking 20.51
Insurance 2.92
Telecom 27.61
Source: Business Maps of India 2012
CHART
Source: ASSOCHAM Placement Pattern Study Employment Scenario in India (April-October 2012)
-10
0
10
20
30
IT / Enabled Banking Insurance Telecom
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Profile of Banking Sector in India
When banks across the world were falling like a pyramid of playing cards; we were
safe, steady and strong, with our banks, which have acted like a strong backbone of
our economy20.
At present India have 87 scheduled commercial banks (SCBs) – 27 public
sector banks, 29 private banks and 31 foreign banks. They have a combined network
of over 64,608 branches, 8, 93,356 employees and 43,651 ATMs. Public sector banks
account for 87.7 per cent of the offices, 82 per cent of staff and 60.3 per cent of
ATMs. The following table shows the total bank employees population in Tamil
Nadu.
Number of Bank Employees in Tamil Nadu
(MARCH 2012)
Officers 28,972
Clerks 30,456
Sub- ordinates 12,512
Total 71,940 Source: Basic Statistical Returns of Scheduled Commercial Banks in
India, Vol. 37 March 2012
A healthy banking system is essential for any economy striving to achieve good
growth and remain stable in an increasingly global business environment.The pace of
development for the Indian banking industry has been tremendous over the past
decade. As the world reels from the global financial meltdown, India’s banking sector
is continuing to provide growth opportunities (FICCI 2012).
FICCI conducted a survey on the Indian Banking Industry in 2009 to assess the
competitive advantage offered by the banking sector, as well as the policies and
structures required to further stimulate the pace of growth. A majority of the
respondents, almost 69% of them, felt that the Indian banking Industry was in a very
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good to excellent shape, with a further 25% feeling it was ingood shape and only
6.25% of the respondents feeling that the performance of theindustry was just
average.This optimism is reflected in the fact that 53.33% of respondents were
confident ina growth rate of 15-23% for the banking industry in 2010-11 and a greater
than25% growth rate for 2014-15.
TABLE 3.6
FICCI Survey on Banks 2009
Opinion of respondents % of respondents
Excellent 69%
Good 25%
Average 6%
Aggregate deposits of Scheduled Commercial Banks (SCBs) increased by
22.4% per cent (Rs.6, 33,383 crore) during 2011-12 as compared with 16.8 per cent
(Rs.5, 85,006 crore) in the previous year. During FY08, the total asset base of the
SCBs was equivalent to 91.8% of India’s GDP, as compared to 62.7% of GDP in
FY04. This ratio increased to 98.5 per cent at the end of March 2012 from 91.8 per
cent at end-March 2011. The share of banking sector to country’s GDP increases to
over 4.7 per cent in 201021.
A report "Opportunities in Indian Banking Sector", by market research
company, RNCOS, forecasts that the Indian banking sector will grow at a healthy
compound annual growth rate (CAGR) of around 23.3 per cent till 2012.
Projections of Banking Industry:It is being predicted that India could become the
third largest banking hub in the world by 2040. The banking industry is slated for
growth in future with a more qualitative rather than quantitative approach. The total
assets of all scheduled commercial banks by end of March 2012 are projected to touch
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Rs 40, 90,000cores which is nearly 65% of GDP at current market prices.
(Department of Statistics and Information Management, RBI 2011)
Employment Opportunities in Banking Sector
The banking sector is to provide over 1.5 million jobs by next ten years. The
financial year 2011-12 has already shown the banking sector to be among the largest
job providers in the country with over 50,000 vacancies being notified and to be filled
up in the public sector banks. (McKinsey report ‘India Banking 2012’)
TABLE 3.7
List of top five banks based on number of branches in India
(Figures in Rs. billions, as on 31st March, 2012)
Total Deposits
Total Advances
Net profit
Total Assets Branches
State Bank of India 4,355.21 3,373.36 45.41 5,665.65 10,186
ICICI Bank 2,305.10 1,958.66 31.10 3,453.12 1,400
Punjab National Bank 1, 398.60 1,990.48 20.48 1,990.48 4,500
HDFC Bank 1,007.69 634.27 15.90 1,332.51 1,412
Bank of Baroda 1,520.34 1,067.01 14.35 1,795.99 2,800
(Sources: Dun & Bradstreet 2009)
Profile of Insurance Sectorin India
Insurance business has a positive correlation with economic development in an
economy. As an economy develops over the years, insurance sector starts making
inroads into the interiors of the system. The insurance sector in India has come full
circle from being an open competitive market to nationalization and back to a
liberalized market again. By tracing the developments in the Indian insurance sector,
360-degree turn has been witnessed over a period of almost two centuries.
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India is the fifth largest market in Asia by premium following Japan, Korea,
China and Taiwan. Since the end of the year 2000 the insurance sector in India has
gone through several phases and changes, especially after 1999 when the Government
of India opened the insurance sector for private companies to apply for insurance,
allowing FDI up to 26%. Since then, the insurance sector in India is seen as a growing
market among the global insurers. However, the largest lifeinsurance company in
India is still government owned. In India, insuranceis a national issue, in which life
and general insurance is still a booming sector with great potential for various global
companies. Life insurance premium accounts to 2.5% and General insurance premium
accounts to 0.65% of GDP in India. In the second quarter of fiscal year 2011-12 1480
branches were added including 1293 branches set up by private life insurers increasing
the number of branches to a total of 10,037 out of which 7000 branches are in urban
areas. During this period the life insurance industry alone added 53,332 employees to
their pay rolls bringing up the total to 3 lakhs. The Indian Insurance Industry at
present consists of 34 players out of which public insurance companies are seven and
private insurance companies 27. This includes both life insurance and non-life
insurance companies. Insurance Market in India continues to be dominated by public
sector, though share has declined from 100% in FY-01 to 59% in 2012(Source: IRDA
2012)
Growth of Insurance Sector
The insurance sector in India has shown tremendous growth potential. Indian
insurance sector has registered an unprecedented growth of 200% and has attained a
size of Rs. 2000 billion by 20010-11. An unprecedented growth is likely to be seen in
Indian insurance business by 2011-12 in which private insurance business would grow
@ 140% in view of aggressive marketing technique adopted by them as against 35-
40% of state owned insurance companies growth rate (ASSOCHAM 2009).
Indian insurance is a flourishing industry, with several national and
international players competing and the period from 2010 - 2015 projected to be the
'Golden Age' for the Indian insurance industry. Indian insurance sector is likely to
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register unprecedented growth of 200% and attain a size of Rs. 2000 billion by 2011-
12. (The Journal of Applied Economic Research, Vol.2, No.1, 43-86, 2008).
The Banking, Financial Services and Insurance (BFSI) sector has been a pillar
of strength during the slowdown. With healthy capital adequacy ratios and prudent
oversight by the RBI, our capital market holds promise in providing the adequate
support to investment and development of institutions that will complement the high
growth rates in the future.
TABLE3.8
List of top 5 insurance players in India
Life Insurance corporation of India 2155
Bajaj Allianz General Insurance Co. 1200
New India Assurance Co. 1068
Birla Sun life Insurance Co. 600
ICICI Insurance Co. 450 Source: CRISIL and ICRA 2012
Profile of Telecom Sector
“Telecommunication is no longer a basic need. Besides providing access to
information and entertainment, it’s about personal identity and, above all,
empowerment. (Source: Times of India, May 17th 2012, World Telecom Day speech)
Telecom Sector in India has undergone a revolution in the recent years. Indian
Telecom Sector is the third largest and fastest growing in the world after China and
US up to the year 2007. Even at the time of economic slowdown in 2008 telecom
sector in India has undergone a revolution and moved from third largest to second
largest in the world which is depicted the following table.
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TABLE 3.9
Total telecom subscribers (in million) – A comparative study
Year China India Japan USA
2008 698 126 155 380
2009 781 206 157 400
2010 867 297 157 411
2011 931 417 158 407
2012 1010 582 159 401
Source: (TRAI 2012)
Table 13 shows that up to the year 2012, the sector has attracted subscribers of
over 582 million which was 3.5% greater than 2008. In addition to this 20 million
subscribers are adding up every month. The Indian telecom industry registered annual
revenues of over US$ 8.57 billion in 2011 triggered by the revival in incomes from
landline and mobile services. With more than 11 operators in the country, the telecom
industry directly contributes to more than 1.5 per cent of country’s GDP growth rate
of the country. The growth rate of India’s GDP is 6.7% in 2011. (Times of India May
17th 2012).
The Government of India has recognized that the provision of world class
telecommunications infrastructure and information is the key to rapid economic and
social development of the country. This will not only help in the development of
telecommunication industry, but also provide for widespread spillover benefits to
other sectors of the economy. Since the removal of restrictions on foreign capital
investment and industrial de-licensing, India’s Telecom industry has shown large
growth. Presently, the country’s growth rate of telecom sector is 14
percent.(Handbook of Statistics, Indian Economy, Reserve Bank of India 2012).
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Projections
It is estimated that by mid-2012, around half the country’s population will own
a mobile phone. It is projected that India will have 800 million subscribers by 2013
and I billion in 2014 (Times of India May 17th 2012). Tele communication sector is
estimated to surface as the biggest driving component in India's GDP with a
contribution of about 15.4% by the FY2014(National Accounts Statistics
2012).Communication sector is predicted to emerge as the single largest sector of
India’s economy, with a 15.4% share of GDP by 2014-15. In India’s transformation
from an agrarian to a services economy, communication is recognized as the fastest
growing sector, growing by 25.7% during 2005-12. The communication sector will
thus be one of the major drivers of the Indian economy in the next five years. Its
ranking in terms of contribution to total GDP has moved up from 17th in 1980-81 to
8th in 2007-08 and is further expected to surpass all other sectors by 2014-15,
assuming that all other sectors grow at the average growth rates observed during
2001-08. Telecommunication sector’s share of total GDP has increased from just
0.7% in the 1980s and 1.0% in the 1990s to 3.6% during 2001-08. In 2011-12, the
sector accounted for 5.7% of GDP. By 2012 Fixed Line Revenues are expected to
touch US Dollar 12.2 billion while mobile revenues will reach US dollars 39.8 billion
in India.(Source Frost and Sullivan industry analyst, Times of India 2012, May 17th
World Telecom Day Issue)
TABLE3.10
Number of subscribers (in million) - A Projection
Year Number of subscribers
2010 600
2012 612
2013 800
2014 1 billion Source: Ministry of Communication and Information Technology 2012
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Leading Telecom players both global and Indian are keen to make India as
their hub for manufacturing as well as Research and Development activities. This
helps to boost innovations in the sector as well as providing new employment and
growth opportunities, making India an upcoming hub for telecom services. (Times of
India May 17th 2012)
Telecom tops in Employment growth: The communication sector is said to have a
significant impact on the employment in the country. The study predicts that the sector
will generate an additional 8.5 million jobs by 2014-15, taking the total number of
jobs in the sector to 10.3 million (NCAER 2009). Hence, human resource functions is
said to be a challenging task for the telecom industry. Employment in Telecom Sector
has grown by 33% since 1994 which is the highest growth rate among service sectors.
With more and more players entering the industry, the competition in the industry in
terms of attracting and retaining the best talent is also increasing. The sector is
creating employment opportunities and adding around 1 lakh people in its work force.
Total employment in the sector is expected to reach 10.3 million in 5 years.
Communication will be amongst the Top 3 growth drivers of the economy by 2015.
TABLE3.11
Market share of Telecom players in India
Telecom Players % of market share
BharathiAirtel 22%
Vodafone Essar 18%
Reliance GSM 18%
BSNL 11%
Tata Teleservices 11%
IDEA Cellular 10%
Aircel 6%
Others 4%
Total 100% Source: Business Line 21st August 2012
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The industry profile of the three sectors under service industry such as banks,
insurance and telecom explains the importance of these sectors in terms of present and
future employment opportunities, contribution to the country’s GDP and economic
growth.
IT – ITES Industry in India
During 2008–09, India has entered into many multi – vendor contracts and long
term off-shoring contracts. To name a few, Subexwon a US$ 50 million deal with
British Telecom, Mind tree Consulting won a US$ 50 million deal with Arcelor
Mittal, Tech Mahindra won a US$ 700 million deal with BT to provide systems and
process transformation, Infosys won a five year contract with US insurer Conseco and
Wipro won a nine year IT infrastructure management deal with Aircel, estimated at
US$ 500 million. (IBEF, 2009)
The combined India domestic IT-ITES market is expected to grow at 15 per
cent in 2012 to achieve revenues of Rs.1,20,666crore compared to Rs 1,04,906 crore
in 2009. The domestic IT market is expected to grow at 13 per cent in 20 12 to touch
Rs.1,07,655crore, while the domestic ITES market is expected to post revenues of
Rs.13,011 crore, a growth of 35 per cent. The release said the combined India
domestic IT and IT-enabled Services grew by 5.4 per cent in 2009 have reached
Rs.1,04,906 crore compared to Rs.99,654 crore in 2008. (ICT, 2010)
The Industry has improved to provide a soaring share of voice-based services
and a variety of back-office processing activities. Range of services provided by IT
and ITES sector have extended in the last three to four years to include progressively
more intricate processes relating rule-based decision making and investigating
services requiring knowledgeable individual conclusions.
The total revenue for the Indian IT industry was US$ 71.7 billion in 2008-09.
The Indian IT industry has been growing at a compound annual growth rate (CAGR)
of 27 per cent for the last five years. Contribution of IT industry to India’s gross
domestic product (GDP) has grown from 1.2 per cent in 1997-08 to an estimated 5.8
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83
per cent in 2008-09.The total revenues from export have reached US$ 47.3 billion in
2008-09.The total exports have been growing at a CAGR of 28.7 per cent over the last
five years. During this period 2008-2009, direct and indirect employment has reached
approximately 2.23 million and eight million, respectively. Domestic market revenues
have touched approximately US$ 24.3 billion in 2008-09.Domestic market revenues
have been growing at a CAGR of 24 per cent for the last five years. (NASSCOM,
2009)
Indian IT/ITES sector (IBEF, 2009)has developed significantly with its,
Growth into varied verticals
Well distinguished service offerings.
Ever-increasing geographic diffusion
India’s importance among emerging markets, both as a supply and demand
Centre, is stimulating further IT/ITES growth
Continue to be one of the best emerging industries in India; while India
maintains its leading position as a strategic off shoring target for multinationals
globally.
The Indian ITES-BPO (domestic and exports) revenue was US$ 14.7 billion
and the sector grew at a rate of 18.9 per cent in 2008-09.
The Indian IT services market grew by 23 per cent between 2005-06 and 2008-09 and
the revenues are around at US$ 8.3 billion in 2008-09. The banking, financial services
and insurance (BFSI) vertical continues to account for the largest share of IT/ITES
services at 41 per cent. Hi-Tech/ telecom vertical, account for the second-largest
share at 20 per cent. Other verticals such as manufacturing, retail, media and
healthcare are rapidly gaining pace.Domestic IT-ITES market revenues have been
growing at a CAGR of 23 per cent between 2005-2006 and 2008-09 and about US$
24.3 billion in 2008-09. Domestic IT-BPO revenues grew by 24 per cent in and about
US$ 2 billion in 2008-09. Hardware accounted for about 49 per cent of the total
domestic IT-BPO spends in 2008-09.
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TABLE3.12
IT services export revenue
IT services export revenues:(2008-2009 ) US$ bn
Project oriented 12.9
IT consulting 0.65
Systems integration 0.75
Custom application development 11.12
Network consulting and integration 0.32
IT Outsourcing 11.02
Application management 7.21
Infrastructure management 3.80
Support and training 1.96
Total 25.88
(Source: IT: Industry profile, July 2009, CRIS INFAC)
Exports accounted for 87 per cent of the revenues and grew at a rate of 18 per
cent in 2008-09 to reach US$ 12.84 billion. Services exports account for nearly 67.7
per cent of total IT/ITES sector exports in 2008-09. The concept of outsourcing is
increasingly gaining acceptance even in the more conservative markets around the
world. India was crowned by the A.T. Kearney Global Services Location Index 2009,
surpassing 49 other countries of the world, promising to be the destination of
preference as an off shoring site of global IT/ITES powerhouses.
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85
TABLE3.12
Global services location
India is expected to continue drawing substantial investments in the sector for another
10-15 years. India is emerging as a back end services location to the global innovation
hub.
Source: A T Kearney Global Service Location Index 2009", AT Kearney website,
www.atkearney.com
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The Reasons for India’s success in IT – ITES Industry
“The Indian IT-ITES industry is India’s largest employment generator in the
organized sector of today creating jobs for over 7.5 million people both directly and
indirectly, and is expected to cross 10 million by 2012. A varied combination of
factors have led to this - healthy growth environment, attractive remuneration and
different kinds of employment opportunities in the new economy based on varying
skill sets, and above all the availability of talent in India which meets the employment
projections. What we do need to work on is the quality factor to ensure we remain the
highest employment generator and maintain our share of the global offshore IT and
ITES industry.” (KiranKarnik, 2008)
TheReasons for India’s success in IT – ITES Industry are,
Improving telecom and other infrastructure which is at par with global
standards.
Strong quality orientation among players and their focus on measuring and
monitoring quality targets.
Fast turnaround times and the ability to offer 24x7 services based on the
country's unique geographic location that allows for leveraging time zone
differences.
Proactive and positive policy environment which encourages ITES/BPO
investments and simplifies rules and procedures.
A friendly tax structure, which places the ITES/BPO industry on par with IT
services companies. (NASSCOM)