CHAPTER I

INTRODUCTION

Context of the Study

Need and Significance of the Study

Statement of the Problem

Operational Definition of Key Terms

Objectives of the Study

Hypotheses of the Study

Methodology

Scope and Limitations of the Study

Organisation of the Report

CHAPTER I

INTRODUCTION

1.1 CONTEXT OF THE STUDY

Every industry requires certain perquisites for its functioning, namely,

raw materials, finance and funding, machinery, etc. Similarly, it requires

manpower. And this manpower is the human resources and in order to

manage the manpower, human resource management is necessary. Human

Resource Management involves managing manpower in order to improve

individual, group and organisational effectiveness. It is important to manage

human resources as they help in the prosperity and progress through the

committed and creative efforts and competencies of their human resources.

Dr. W.E. Deming once remarked: “Abundance of natural resources is not a

requirement for prosperity. The wealth of a nation depends on its people”.

Human Resource Management also looks into the grievances and issues

faced by the employees and industrial relations.

Our environment is changing faster and becoming more complex, more

competitive and more global than ever. To compete in this environment

indeed, to survive in this environment, today’s organisations must be more

competitive, adaptive and lean. They must think globally and they must

decentralise. They must foster quality, cost reduction and innovation. To

compete in this environment, the people in today’s organisations must be

willing and able to accomplish all of these things. For personal and human

2Introduction

resource managers, this translates into opportunity and excitement because

there is the challenge to match the ever-changing needs of organisation with

quality human resources. Managing human resource effectively requires a

great deal of knowledge and expertise. Human resource managers must

know the environment in which the organisation is operating. They must also

know about all of the personnel and human resource management activities

that an effective firm uses in managing their human resources. Today’s

human resource managers must be willing and able to play more roles, must

be as adaptable as the organisation itself and must be flexible in order to take

in stride the accelerating pace of change.

Human Resource Management deals with finding the right people,

placing them on the right job, at the right time, training and development for

better performance, providing a growth-oriented career path and sustaining

their motivation and satisfaction through proper and timely rewards.

Ultimately both the employer and the employee should be able to attain their

goals in their respective mission. In the process, the success depends on

how the management is able to make its human resource committed to the

goals of the organisation.

The term Job Satisfaction is quite frequently used in the literature of

industrial psychology for individual attitude towards the specific aspects of

total work situation. Since the time when the occupation of individuals

became a socially significant phenomenon, social scientists focused their

attention on the problem of job satisfaction. Job satisfaction refers to the

3Introduction

general attitude of employees towards their job. Job satisfaction describes

how content an individual is with his or her job.

Analysing Job Satisfaction and Organisational Commitment is

particularly crucial nowadays, as people often do not work at the same

organisation or job throughout their lifetime. So once an ideal candidate is

chosen, organisations will like to make a great effort to retain those

employees. An effective organisation will make sure that there is a spirit of

co-operation and sense of commitment and satisfaction within the sphere of

its influence.

Job Satisfaction represents several related attitudes which are most

important characteristics of a job about which people have effective response.

These are the work itself, pay, promotion opportunities, supervision and

workers (Luthans, 1998).

Commitment can be identified as three different types, which include:

affective, continuance and normative commitment. The attachment of the

employee to their organisation has received a considerable attention in the

fields of management and organisational behaviour. This attachment has

been used and defined in many ways over the years. However,

Organisational Commitment has clearly emerged as the most recognised and

researched construct of the employee’s attachment or loyalty to the

organisation. A highly committed person has the feeling that he is working for

himself and not somebody else. As a result, he develops a sense of

responsibility and does not require any external drive for his job performance.

4Introduction

Weiner (1982) suggested that Organisational Commitment is likely to

predispose employees to put in their best in organisational programme

activities.

Venkatachalam (1998) recognised that the concept of Organisational

Commitment has provide its usefulness not only as a theoretical construct and

as an empirical predictor, but also a powerful tool which can also be used as

an aid to achieve higher levels of performance and discipline in an

organisation. He found that the construct has been related to many important

outcome variables like performance, absenteeism, personnel turnover, tenure,

tardiness, etc.

1.2 NEED AND SIGNIFICANCE OF THE STUDY

IT industry is a fast growing one especially in Kerala. In Kerala, IT

industry is at the childhood stage. Without noise and smoke, this industry

faces many fever and fret. Professionals are the backbone of this industry.

But they face many problems in society and in workplace. The work

environment that is able to fulfil employees’ personal need is considered to

provide a positive interaction effect, which will lead to an excellent quality of

work life. The personal needs are satisfied when rewards from the

organisations such as compensation, promotion, recognition and development

meet their expectations. When stress arises in the process of interaction

between a person and the work environment, it threatens the individual’s

psychological and physiological well-being. Physical illness and psychological

disorders increase when pressure at work increases. Stress causes problems

5Introduction

to the muscular system and circulation thus increasing the risk of heart attack

which is well documented in psychosomatic studies. Employees who have

been exposed over two years in high strain work environment are likely to

develop higher systolic blood pressure. The nature of work of IT professionals

reflects a similar situation. A continuously demanding and monotonous work

environment affects the brain resulting in exhaustion and degenerate

cognitive abilities. Depression and anxiety are also another form of stress

that contribute towards the deterioration of health. The prevention strategies

must be healthy and humanistic in nature in order to evolve IT professionals

work comfortably.

Today, everything and anything is being computerised across the

board. Almost every country is linked by the World Wide Web. Almost all

companies, business enterprises and government department – both Central

and State – linked through either intranet or internet. So the IT sector is vital

to the progress of any nation. Human resource is the key ingredient in the

development of IT sector. So the Job Satisfaction and the Commitment of IT

professionals towards the job are important for the healthy growth of this

industry.

IT professionals perform a variety of duties that ranges from installing

application to designing complex computer networks and information

databases. A few of the duties that IT professionals perform may include data

management, networking, engineering, computer hardware maintenance,

database and software development as well as the management and

6Introduction

administration of the entire system. When computer and communication

technologies are combined, the result is Information Technology or Infotech.

IT industry has huge job potential in the near future. One of the major hurdles

for the growth of this industry is well-trained manpower. In this context, the

Government of Kerala plans to roll out a mass based human resource

development in IT industry with public private participation which would

specifically focus on addressing the current issues in the demand-supply

disparity in information technology employment sector in the State. The main

objective of the programme is to develop Kerala into a hub of information

technology.

Several studies as those of Cramer (1993), Somers (1995),

Balanchandran and Anantharaman (1996) and Mishra, Dhar and Dhar (1999)

have found that job satisfaction and organisational commitment are

interrelated. Enhancing job satisfaction guarantees greater involvement and

commitment from the part of the employee. Heslin (2003) found that

Employee’s productivity is largely related to their level of job satisfaction and

in fact the turnover rate can be reduced with a higher level of organizational

commitment. Pillai’s (2010) study indicated that Tech workers want to be in

jobs where they can learn and grow. Soonhee Kim (2009) found that job

satisfaction of IT employees in the public sector is dependent on job clarity,

effective communication with management, a participatory management

approach, organizational support for career development, opportunity for

advancement and family friendly policies. All these studies point out that job

7Introduction

satisfaction and organisational commitment are the key variables in

enhancing productivity and reducing the turnover in any organisation. Review

of related literature and studies also revealed that no exhaustive study has

been conducted so far on IT professionals’ Job Satisfaction and Organisational

Commitment in India. As IT industry is a fast growing one which provide

immense job opportunities to the educated youth of India, the investigator

decided to study the Job Satisfaction and Organisational Commitment of

employees in the IT industry of Kerala.

Kerala is rapidly growing as an IT hub after the government started the

Technopark in Thiruvananthapuram. The government’s positive attitude on

this sector, the State’s ideal climate and tranquil atmosphere and the

availability of educated youths are attracting many national and multinational

IT organisations to Kerala. The government initiatives in this regard are very

constructive and if this will go according to the planned objectives, IT industry

will become one of the major employment generating industries in Kerala.

Though the industry is providing attractive salary and other perks to its

employees, the hectic work schedule and erratic work timings are creating its

own problems in the psychological and physiological well-being of employees

in IT industry. Are the employees in IT industry really satisfied with their jobs

as perceived by the society? Is the organisational commitment of an

employee has a significant relationship with his/her job satisfaction? Is

experience a vital aspect in deciding job satisfaction and organisational

commitment of an employee? How satisfactory is the organisation’s attitude

8Introduction

towards an employee’s overall well-being? Is the commitment exhibited by

employees due to lack of other suitable employment or is it due to the

attachment they accrue due to the quality of work environment in their

organisation? To get answers to these and other relevant research questions,

the investigator decided to probe the topic under study in detail.

1.3 STATEMENT OF THE PROBLEM

The IT industry, though growing in a fast pace, faces uncertainties

many times due to the global recessionary trends as majority of the

organisations in this industry are dependent on companies in Europe and the

USA. The 2000 dot.com crash (where so many large and small companies

conducting business through World Wide Web vanished which created a

massive recession) and further 2008 global recession created panic in the

industry and many employees were rendered jobless overnight at those

periods. Though they enjoy salaries and privileges which is inaccessible to

many in other similar jobs, the industry has its own problems which will

naturally affect its employees’ morale and job satisfaction. This study is an

attempt to gauge the job satisfaction and organisational commitment of

employees in the IT industry. As Kerala is fast emerging as an important IT

destination, two important IT corridors in Kerala – The Technopark and

Infopark – were selected for the study. The study is entitled as

“JOB SATISFACTION AND ORGANISATIONAL COMMITMENT

OF EMPLOYEES IN THE IT INDUSTRY OF KERALA”

9Introduction

1.4 OPERATIONAL DEFINITIONS OF KEY TERMS

The major terms used in the study are explained below.

Job Satisfaction

Job satisfaction may be defined as a pleasurable and positive

emotional state resulting from the appraisal of one’s job or job experiences

(Locke, 1976).

Organisational Commitment

Organisational Commitment can be theoretically defined as a

psychological link between the employee and his or her organisation that

makes it less likely that the employees will voluntarily leave the organisation

(Allen & Meyer, 1996).

IT Industry in Kerala

Information Technology industry is predominantly an industry which

deals with the needs of organisations in technological areas which helps in

companies to automate many jobs and hence enhance productivity. It

involves installing applications to design complex computer networks and

information databases. Software development for the complex processes in

large organisations is one of the main jobs in IT industry. Majority of the

organisations in this industry outsource jobs from the major developed

countries in Europe and the USA. In Kerala, IT industry is growing in a rapid

pace due to the availability of educated manpower and the encouragement

from the part of the government.

10Introduction

Information Technology Policy – Kerala

This policy aimed at creating an appropriate pro-enterprise, legal,

regulatory and commercial framework to facilitate the rapid growth of IT

industry in the State. This policy also focuses on establishing Kerala as a

global centre for excellence in human resources, through the creation of a

large pool of diverse, multiskilled technically competent manpower in the

State and establishing an internationally competitive business infrastructure

and environment for IT industry in the State on par with the best facilities and

practices worldwide (IT Policy, Government of Kerala, 2000).

Technopark

Technopark being the first government IT park in India proved to have

the most conducive working environment for a technology business incubator

in generating the in-house entrepreneurs with their innovations through

incubation. Technopark is the only IT Park in India having ISO 9001; 2008,

ISO 2004, OHSAS 18001; 2007 and CMMI Level 4 certifications (Economic

Review, 2010). Now several national and multinational companies are

operating from this facility.

Infopark

Infopark situated in Kochi, is Kerala’ new IT hotspot hosting over 50

IT/ITeS companies ad over 10,000 professionals. It offers tailor made

workspaces, world-class infrastructure facilities and end-to-end solutions for

global IT/ITeS companies. Infopark has ambitious plans to become one of the

11Introduction

major IT parks in the country. With this vision, it has been growing faster ever

since its inception in 2004.

IT Professionals

One of the fastest growing workforces in the present work environment

is the group of information technology (IT) professionals. IT professionals are

involved in acquisition, processing, storage of vocal, pictorial, textual and

numerical information which demand extensive use of IT skills. The nature of

jobs enables the IT professionals to work independently with multidimensional

teams round the clock regardless of their locations throughout the world

(Evans and Wurster, 2000).

1.5 OBJECTIVES OF THE STUDY

The following are the objectives formulated for the study:

1. To find out the extent of Job Satisfaction experienced by professionals

in the IT industry of Kerala.

2. To find out the extent of Organisational Commitment of professionals in

the IT industry of Kerala (for total commitment and its components).

3. To compare the Job Satisfaction experienced by IT professionals

based on select socio-demographic variables.

4. To compare the Organisational Commitment of IT professionals based

on select socio-demographic variables.

5. To find out the relationship. If any, between Job Satisfaction and

Organisational Commitment for the total sample and the select socio-

demographic variables.

12Introduction

6. To factor analyse the Job Satisfaction factors in IT industry to find out

the factors which are helpful for HR managers.

1.6 HYPOTHESES OF THE STUDY

1. The Job Satisfaction of employees in IT industry is moderate.

2. The Organisational Commitment of employees in IT industry is

moderate (for total commitment and its components).

3. There is significant difference in the Job Satisfaction of employees in IT

industry based on the select socio-demographic variables.

4. There is significant difference in the Organisational Commitment of

employees in IT industry based on the select socio-demographic

variables.

5. There is significant relationship between Job Satisfaction and

Organisational Commitment for the employees in IT industry (for the

total sample and the select socio-demographic variables).

6. The Job Satisfaction factors obtained through factor analysis would

help HR managers in the formulation of strategies for Job Satisfaction

of employees in IT industry.

1.7 METHODOLOGY AND TOOLS

In pursuance of the objectives and hypotheses, the following

methodology was adopted for conducting the present study. The study is

designed as an analytical one based on the survey method. Both primary and

secondary data have been used for the study.

13Introduction

In the first exploratory stage of this study, a survey of literature was

undertaken by the researcher to familiarise with the various aspects of the

study, to evolve appropriate methodology and to formulate a conceptual

framework for the study. For these purpose, various secondary sources such

as research articles, working papers, seminar reports, annual reports, etc.

were reviewed.

In the second stage, primary data were collected from the IT

professionals in the IT industry of Kerala through a field survey. For this

purpose, a structured Questionnaire was prepared that should help to collect

the necessary information about the factors affecting job satisfaction and

organisational commitment.

1.7.1 Construction of Tools

The Job Satisfaction Questionnaire was tested before finalising it by

conducting a pilot study. For the purpose of the pilot study, the researcher

collected data from 30 IT professionals. It helped in identifying the variables

required for the study. The questionnaire was then revised in the light of the

suggestions and criticisms made by the guide and the fellow researchers.

The questionnaire so revised was circulated among three experts for critical

review. The questionnaire was redrafted in the light of their comments. A

copy of the Job Satisfaction Questionnaire is given in Appendix I.

For the purpose of the study, the Job Satisfaction Questionnaire was

framed on the basis of the model of Minnesota Satisfaction Questionnaire

(MSQ) (1967). On the basis of the test and retest, 30 statements have been

14Introduction

used in the job satisfaction questionnaire to measure overall job satisfaction.

The Likert scale of summated rating was used in the scale to measure the

extent of Job Satisfaction. There are five responses, viz., strongly agree,

agree, undecided or neutral, disagree and strongly disagree. To secure the

total job satisfaction score of an employee, a ‘strongly agree’ response was

given a weightage of ‘5’, a ‘agree’ response a weightage of ‘4’, to a ‘neutral, or

undecided’ response, a weightage of ‘3’, a ‘disagree’ response a weightage of

2, and a ‘strongly disagree’ response, a weightage of 1. Thus, it was possible

to get the overall job satisfaction score of an employee by adding up the

scores of all the 30 items. Thus, by adding up the scores of all the 30 items,

the job satisfaction score of an employee can be found out. The internal

consistency of Job Satisfaction Questionnaire was tested using Cronbach’s

Alpha. The alpha coefficient obtained is 0.85 which shows the Job

Satisfaction Questionnaire is a highly reliable one.

For studying the Organisational Commitment of IT professionals, the

Organisational Commitment Questionnaire (OCQ) developed by Meyer and

Allen (1993) is used. This instrument was finalised from a 66 original pool of

items, generated after an extensive literature survey by the original authors

(Allen & Meyer, 1990) and a 24 items questionnaire with three subscales of 8

items each for measuring affective, continuance and normative commitment

was developed. This scale was further tested for its validity and consequently

a shortened version of 18 items having 6 items each for measuring the three

different dimensions of organisational commitment was developed by Meyer

15Introduction

and Allen in 1993. The researcher used this 18 items questionnaire for the

purpose of this study as it had superior psychometric properties than the

earlier developed ones. The responses categories were Strongly agree to

Strongly disagree.

Though the original questionnaire was a standardised one, the

investigator re-established the reliability of the questionnaire using Split-half

Method. The split-half reliability coefficient obtained is 0.78 which shows that

the questionnaire is a highly reliable one. A copy of the Organisational

Commitment Questionnaire is given as Appendix II.

For studying the personal factors which influences the job satisfaction

and organisational commitment of IT professionals, a Personal Data Sheet

was also prepared by the investigator (Appendix III). It is meant to collect

personal details such as age, martial status, sex, educational qualification,

experience, etc. of the respondent.

1.7.2 Sample Selected for the Study

The question of the size of the sample in research is very important. It

is to be noted that an optimum sample fulfils the requirements of

representativeness and reliability. The sample should be sufficiently large to

minimise sampling error. Garrett (1984) in this regard points out: “The larger

the N the larger the SD of the sample and the more inclusive (and presumably

representative) our sample becomes of the general population”.

The population for the study constituted the entire IT professionals

working in IT industry of Kerala. This includes professionals in Technopark,

16Introduction

Infopark, Software Technology Park of India (STPI) and other small registered

units in Kerala. As per the data available from Economic Review (2010),

about 28,000 professionals are working in Technopark and 10,000

professionals are working in Infopark, Kochi where most of the IT giants have

their own campuses. For the remaining small registered firms, no reliable

data is available. In the case of STPI, its functioning in Kerala is not worth

mentioning. In Kerala, the information technology industry is mainly centred

on the infrastructure made available by the Government of Kerala. This

translates into the fact that more than 90 per cent of the professionals in IT

industry are concentrated in Technopark, Thiruvananthapuram and Infopark,

Kochi. So, as the chief IT hubs in Kerala are Technopark in

Thiruvananthapuram and Infopark in Kochi, the investigator decided to select

the sample from these two parks only. For the purpose of the study, 345

sample respondents were selected from the IT professionals in these two

parks on the basis of simple random sampling. From these, more than 40

respondents returned incomplete questionnaires. Thus, a final sample

consisting of 300 were selected for analysis of data. The collection of data

was very difficult mainly due to security reasons and lukewarm response of

the management and the respondents. Due representation was given to

gender, marital status, designation and experience.

1.7.3 Variables of the Study

Job Satisfaction and Organisational Commitment are the variables

selected for the study. Organisational Commitment was classified as

17Introduction

Affective Commitment, Continuance Commitment and Normative

Commitment. In addition to these variables, select socio-demographic

variables are also selected which are given below.

(1) Age

(2) Sex

(3) Martial status

(4) Educational qualification

(5) Designation

(6) Level of management

(7) Salary

(8) Experience in present organisation

(9) Experience in present position

(10) Number of times promoted

(11) Experience in previous organisation

(12) Spouse’s employment status

(13) Nature of spouse’s employment.

1.7.4 Statistical Techniques Used for the Analysis of Data

1. Percentage Analysis

2. Two-tailed test of significance of difference between means.

3. Karl Pearson’s Product Moment Correlation

4. Analysis of Variance

5. Scheffee test of post hoc comparison.

6. Factor analysis

18Introduction

In addition to these techniques, in order to identify the high, average

and low groups of employees based on their Job satisfaction and

Organisational Commitment, the following procedure was adopted.

The subjects were grouped into three viz. high, average and low,

based on their Job Satisfaction and Organisational Commitment scores. In

each case, the mean (M) and standard deviation () for each level were

worked out. Those getting scores at or above M+were grouped as high and

those getting scores at or below M- were grouped as low. Those getting

scores between M- and M+ were grouped as average.

1.7.5 Period of the Study

Field work and data collection for the study extended to a period of one

year from February 2010 to January 2011. Secondary data relating to the

sample units were also collected.

1.8 SCOPE AND LIMITATIONS OF THE STUDY

This study is an effort to find out the job satisfaction and organisational

commitment of IT professionals in Kerala with a view to suggest suitable

measures to enhance the job satisfaction and organisational commitment of

the employees in IT industry. The findings of the study will have wide

ramifications for the policymakers and HR managers in IT industry in creating

conducive environment for maximum job satisfaction and derive higher

organisational commitment from the employees. It is hoped that the findings

19Introduction

of the study will be applicable throughout the IT industry irrespective of the

position the employees belong.

Though all precautions were taken to make the study a reliable one,

certain limitations were found in the study. Each study has its own limitations

which are, of course, beyond the control of the investigator. The following are

the major limitations found in the study.

1. Only Technopark in Thiruvananthapuram and Infopark in Kochi were

selected for the study. But it is to be noted that they are the major IT

industry hubs in Kerala.

2. The sample consists of only 300 IT professionals. The accessibility

problems in the study area due to security reasons and lack of

co-operation from the employees restricted the sample size to 300.

However, considering the size of the population, this sample is found to

be adequate enough to be representative of the population.

3. No Information Technology enabled Services (ITeS) professionals

were selected for the study. Here the investigator decided that to get

generalisable results for IT industry, it is better to exclude ITeS

employees. But the results of the findings are applicable to ITeS

industry also.

In spite of these limitations, it is hoped that the results of the study

would be highly beneficial in formulating policies for Job Satisfaction and

Organisational Commitment of employees in the IT industry.

20Introduction

1.9 ORGANISATION OF THE REPORT

The report has been presented in six chapters.

Chapter I is the introductory chapter. It gives a background of the

problem, need and significance of the study, statement of the problem,

definition of key terms, objectives, hypotheses, methodology and scope and

limitations of the study.

Chapter II is review of related literature and studies pertaining to the

topic under study.

Chapter III deals with the theoretical constructs of Job Satisfaction and

Organisational Commitment.

Chapter IV is a brief overview of the IT industry in India.

Chapter V pertains to the analysis of the data collected through the Job

Satisfaction Questionnaire, Organisational Commitment Questionnaire and

Personal Data Sheet.

Chapter VI details the major findings, conclusions and

recommendations which is followed by suggestions for further research.

21Introduction

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22Introduction

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