quality of work life programmes in small scale …
TRANSCRIPT
Volume:01, Number:08, Dec-2011 : RJSSM Page 70 www.theinternationaljournal.org
QUALITY OF WORK LIFE PROGRAMMES IN SMALL SCALE
INDUSTRIAL UNITS: EMPLOYERS AND EMPLOYEES
PERSPECTIVE
Mr. A. Stephen
Associate Professor,
KPR School of Business, Coimbatore – 641 407
Dr. D. Dhanapal
Management Consultant,
PLS Nagar Coimbatore – 641 062.
Abstract:
The Quality of work life programs are the human resources practices adopted by the
company for the upliftment of the Quality of work life of employees. It is the utmost
responsibility of the management to ensure the good quality of work life of employees. The
present study aims at findings out the important QWL programs and the rate of
implementation of QWL programs in Small Scale Industrial Units in the perspectives of
employers and employees. The sample consists of 317 employers and employees of various
Small Scale Industrial units in Chennai, Coimbatore and Madurai cities in Tamilnadu, India.
The list of industrial units was acquired from District Industrial Centre of these cities and
units were chosen at random. The questionnaire was designed based on the attributes and
variables of QWL reviews and questionnaire from previous studies. The constituted variables
of the questionnaire were subjected to construct validity and discriminant validity. The study
reveals that the employers are highly perceiving the implementation of QWL programmes in
their units than their employees. the study concludes by identifying the 5 important QWL
programmes in SSI units, in the perspective of employers and employees.
Keywords: Quality of work life (QWL), Quality of work life programmes (QWLP), Small
Scale Industrial units (SSI), Employer, Employee.
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1. Introduction:
A great workplace is the one in which you trust people you work for, have pride in
what you do and enjoy the people you are working with (Levering, 1988). The employees
experience in work place as well as in life encourages creativity and self expression work is a
source of livelihood and gives meaning and purpose to individuals life. (Morrison, 1993).
Work can be a major source of stress and ill health (Duxbury and Higgins, 2001) and also a
major source of satisfaction. (Luthans, 1998). Healthy companies are described as ones that
encourage the physical, mental and spiritual aspects of humans (Topolosky, 2000).
There is a paradigm shift regarding relationship between organisation and employees.
The shift suggests that the employers are the primary source of company‟s competitive
advantage and organisational prosperity. Business leaders have discovered that the employees
are unique source of competitive advantage than any other competitive strategies. (Pfeffer,
1994). The future of successful and healthy companies will be shaped by all member of the
workforce (Wong and Kleiner, 1996). The survival of the organisation rests on the employees
and they should be made committed by means of refined treatment (Lawler, 2005).
Employees have certain expectations from the organisation. They want the organisations to
be loyal and to provide stability to their Jobs (Woods, 1993).
Commitment and responsibility should be mutual among employers and employees.
The management should ensure that committed employees should also experience a high
Quality of work life. (Kotze, 2005). Employees experiencing wellbeing at workplace
experience high quality of work life and vice versa (Riggio, 1990). Improving the employees
Quality of work life may have positive influences on the employees perception of their level
of Job satisfaction and organisational commitment (Brewer, 1996; Bruce and Blackburn,
1992; Werther and Davis, 1996; Yousef, 2001).
2. Need of the Study:
The Small Scale Industrial Units (SSI) in India serve the society by providing
immediate large scale employment opportunities, ensuring equitable distribution of national
income by facilitating effective mobilization of resources, capital and skills which might
otherwise remain unutilized. (Arti Singh, 2010). The Small Scale Industrial Units makes huge
contribution to the growth of our nation. Its total industrial output measures 39.42 percent, 35
percent share in exports, 6.71 percent in Gross Domestic Product (GDP) and provides
employment to about 27.14 million percents. (Ministry of SSI, 2004-05). Despite the
importance of SSI units to the country and the significance of QWL to the development of
people and the organisation, there is not much of research, which elucidates the employers
and employees perception on QWL programs. In this background a literature review on the
importance of Quality of work life, and QWL programs was undertaken.
3. Literature Review
The new-born concern for QWL in organisation might be due to the realization of
importance of human assets. Human resource are the most important assets that must be
unleashed and developed. In contrast to the thrust on capital, technology and long-lived
products, today‟s source of competitive advantage are high-quality products that can only be
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maintained through high quality personnel (Caudron, 1994). Organisation view QWL
programs as a method of reducing costs and improving productivity (Gordon, 1987). Many
organisations implemented QWL programs as a measure to counteract human relation
problems and to enhance organisational effectiveness. For instance, QWL programs in
Scandinavia and united states in Volvo and General motors plants respectively were
undertaken as a response to extreme organisational problems involving employee alcoholism,
absenteeism, tardiness, turnover and grievances (Pfeffer and Jones, 1980).
QWL programmes can lead to a greater self esteem and improved job satisfaction.
(Suttle, 1997). Satisfied employees work harder and provide better services. (Yoon and Suh,
2003). Implementation of QWL programs result in improved worker satisfaction,
commitment and performance (Nadler and Lawler, 1983). High level of QWL has been found
to be associated with high level of Job satisfaction on many aspects of working life. (Wilcock
and Wright, 1991). QWL is a significant predictor of organisational commitment among
managers (Anuradha and Pandey, 1995). There is a reduction in minor accident, grievance,
absentee and turnover rates with the installation and institutionalization of QWL process
(Havlovic, 1991).
QWL programs tend to increase employee participation and also reduce worker stress.
(Janet, L.Della – Guistina and Daniel, E. Della-Giustina, 1989). QWL programmes have two
objectives. One is to increase productivity and second to increase satisfaction of employees.
It requires certain amount of investment in human resources, for its successful
implementation. QWL depends on the factor affecting on it. (Sarang Shankar Bhola, 2006).
QWL initiatives facilitates the release of human energy. Improving the employees Quality of
work life may have a number of positive effects on the organisations ultimate performance
(Elizur and Shye, 1990; Greenberg and Baron, 1997 and Nykodym et al 1991). As QWL is a
response to environmental pressures, the efforts to cope with the pressures and what QWL
represents will continue. The labels might change but the momentum of change will not.
(Herman Gadon, 1984).
The above said reviews reveal the dimensions and benefits of QWL programs to the
individual and the organisation. But there is no exclusive study on QWL programs at Small
Scale Industrial units with regard to employer and employee prospectives. So the present
study has made an attempt to fill up the research gap with the help of proposed research
model.
4. Proposed Research Model
The Proposed Research model attempts to bring out the employers and employees
view on the existence of QWL programs at their industrial units.
Figure 1. Employers and Employees views on QWL programmes at SSI units.
Employers
View
Employees
View QWL
Programmes
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5. Objective of the Study
Based on the proposed research model, the objectives of the study are confined to:
1. To Identify important QWL programs.
2. To measure the Employers and Employees perception on the rate of implementation
of QWL programs in SSI Units.
7. Conceptual Framework
There are various meanings and definitions attributed to QWL by theorists,
academicians and practioners. (Davis and Cherns, 1975). Yet, there is a lack of universally
accepted definition and a clear out understanding of the QWL concept and what it entails.
(Krueger et al, 2002). QWL is defined as an approach or method in which specific techniques
and approaches are used for improving work (Ford, 1973). It is defined as the quality of
relationship between employees and the total working environment, with human dimensions
added to the usual technical and economic considerations (Davis, 1983).
It is evident that the definition of QWL varies and encompasses different perspectives
(Loscocco and Roschelle, 1991). Hence QWL is defined as the workplace strategies,
operations and environment that promote and maintain employee satisfaction aimed at
improving working conditions for employees and organisational effectiveness (Lau and
Bruce 1998). Majority of authors state that QWL issues are centred on worker related topics
such as job redesign, joint labor-management committees, flexible working hours, conflict
resolution techniques and gain sharing plans. (Janet, L. Guistina and Daniel, E. Della
Guistina, 1989). Variety of Job factors and organisational factors contribute to QWL
(Carayon and Smith 2000) and individual characteristics and circumstances can have an
impact on the QWL experiences of employees. (Hannif, Burgess and Connel 2008).
8. Research Methodology
Research Design is the blue print of the various methods for conducting the research
projects. It includes the procedures for obtaining the information needed, the way in which
they are processed and the method of presentation of the result to solve the research
problems. Even though the research designs are too many, the present study followed the
„Descriptive‟ research Design. Since the present study has made an attempt to measure the
implementation of QWL programmes in SSI units with regard to employers and employees
perspective and also finds out the important QWL programmes in SSI units, it is descriptive
in nature.
8.1. Sampling Procedure
The total sample size of the present study is arbitrarily assigned as one percent of the
population. The sampled units are selected at random. Hence, the sampled SSI units in
Chennai, Coimbatore and Madurai came to 321, 504 and 202 units respectively. The address
of the above said units had been collected from the respective District Industrial Centres. The
employer of SSI units was selected at non random whereas the employee in the same unit was
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selected at random. The questionnaire had been sent to all SSI units which consists of one
each questionnaire to the employer and employee in the SSI units. The response from the SSI
units at Chennai, Coimbatore and Madurai were 176,136 and 124 units respectively. Since
the study focuses on the employers‟ and employees‟ perspective on QWL programmes at SSI
units, the SSI units who had completed both questionnaire (employer and employee) had
been included for further analysis. Hence, the included sampled SSI units in Chennai,
Coimbatore and Madurai came to 107, 100 and 110 SSI units respectively.
8.2. Construct Development
The required data to fulfil the objectives of the study was collected with the help of
two different Questionnaire. One is meant for the employers and the another is meant for
employees of the SSI units. The relevant details about the various concepts and terms used in
the questionnaire have been identified with the help of review of previous studies and also
with the help of experts in relevant fields. In the present study the QWL programs are
confined to certain programs drawn from Beers (2000), Clark (2000), Edwards and Rothbard
(2000) and Sullivan and Lussier (1995). Based on the pilot study conducted among 30
employers and employees in SSI units and opinion from experts, industrialists and
academicians, the irrelevant QWL programs which was not suitable to the regional context
and environment, were deleted, from the existing questionnaire. The final draft of the
questionnaire was prepared to collect the relevant data. In the present study 21 QWL
programmes in SSI units were considered.
9. Results and Discussion
9.1. Qwl Programmes in SSI units.
The Quality of work life programmes are human resource practices, adopted by the
company for their upliftment of the quality of work life. The QWL programmes may be
related with work enrichment, personal enrichment, work life balance and the career
development. The quality of work life programs may include union – management
cooperation, work reorganization and employer Involvement. In particular, many early
employee involvement programs (from the mid 1970s to the early 1980s) were called QWL
programmes and were characterized by small group of workers and low – level managers
meeting periodically to discuss primarily “comfort issues”. Some programmes were beyond
these issues.
The implementation of QWL programmes at SSI units have been measured by the
employers and employees views on the rate of implementation of 21 QWL programmes at
their units. These QWL programmes are drawn from the review of previous studies and also
the views of experts. The employers and employees are asked to rate these 21 QWL
programmes at five point scale on the basis of rate of implementation at their SSI units. The
assigned scores are from 5 to 1 respectively. The mean score of each programmes among the
employers and employees have been computed separately in order to exhibit the level of
perception on the implementation of QWL programmes at SSI units. In order to find out the
significant difference among the employers and employees regarding their perception on the
implementation of QWL programmes in SSI units, the t test has been administered. The mean
score of QWL programmes among the employers and employees and their respective „T‟
statistics are shown in table 1.
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Table 1 Rate of Implementation of Quality of Work Life Programmes(QWLP) at the
Units
S.
No.
QWLP Mean Score Among t statistics
Employer Employee
1 Job Rotation 3.8634 3.1708 2.6517*
2 Job Enlargement 3.7309 3.0911 2.7028*
3 Job Enrichment 3.9662 3.1024 3.1445*
4 Autonomous work groups 3.8114 2.7086 3.3089*
5 Quality Circles 3.7655 2.8119 3.2446*
6 Project Team 3.8665 2.9094 3.1029*
7 Elder care referral and resources 3.5193 2.5145 3.2969*
8 Family counseling 3.0564 2.7345 0.9773
9 Career Counseling 2.9917 2.3865 2.0885*
10 Problem Solving sessions 3.6973 2.7086 3.2117*
11 Health Insurance 3.7314 2.8684 3.0896*
12 Flexible working hours 3.9028 2.9194 3.3919*
13 Job sharing 3.8183 3.2446 2.1773*
14 Maternity benefits 3.6817 3.0896 1.8644
15 Paternity benefits 3.2445 2.6545 1.4508
16 Flexible work sites 3.8141 3.0617 2.7339*
17 Leave with pay 3.6148 2.9091 2.5496*
18 Onsite child care 3.7696 3.0941 2.8441*
19 Relocation assistance 3.5889 2.8661 2.9969*
20 Employee workshop on child care 3.7081 2.8085 3.0143*
21 Employees sick leave for children‟s
illness
3.6889 2.9969 3.1039*
* Significant at five percent level.
The highly rated QWL programmes by the employers are job enrichment and flexible
working hours since their respective mean scores are 3.9662 and 3.9028, where as among the
employees, there two QWL Programmes are job sharing and job rotation since its mean
scores are 3.2446 and 3.1708 respectively. Regarding the perception on implementation of
QWL programmes at SSI units, significant difference among the employers and employees
have been observed in the case of 18 QWL programmes out of 21 QWL programmes namely
job rotation, job enlargement, job enrichment, autonomous work group, quality circles,
project team, elder care referral and resources, career counseling, problem solving sessions,
health insurance, flexible working hours, job sharing, flexible work sites, leave with pay,
onsite child care, relocation assistance, employee workshop on child care and employees sick
leave for children‟s illness, since their respective „T‟ statistics are significant at five percent
level.
9.2. Validity of Data for Exploratory Factor Analysis
The present study has made an attempt to narrate the QWL programmes into
important QWL programmes for further indepth analysis. The exploratory factor analysis has
been administered to narrate the QWL programmes into important QWL programmes. Before
the application of EFA, it is imperative to test the validity of data for EFA. It is tested with
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the help of KMO measure of sampling adequacy and Bartletts test of sphericity. The results
are given in table 2.
Table 2 Validity of data for Exploratory Factor Analysis
S.
No.
Particulars Co-efficient
1 Kaiser–Meyer–Ohlin measure of sampling
adequacy.
0.8142
2 Bartletts test of sphericity: Chi Square 2973.43
3 Degree of Freedom 541.00
4 P-Value 0.00
The KMO measure of sampling adequacy (0.8142) is greater than its minimum
threshold of 0.50. The Chi-Square value (2973.43) is significant at zero percent level which is
within the maximum accepted level of 5 percent level. Both these results indicates the
validity of data for EFA. The KMO and Bartletts test of sphericity shows that there is
adequate number of significant correlation among 21 variables.
9.3. Important QWL Programmes in SSI Units.
The executed EFA resulted in five important QWL programmes. The Eigen value and
percent of variation explained by each important QWL programmes have been computed.
The variables included in each QWL programmes factors have been identified with the help
of its factor loadings in these programmes compared to factor loading with other
programmes. The resulted QWL programmes, its eigen value and percent of variation
explained by each important programmes are presented in table 3
Table 3 Important quality of work life programmes (IQWLP).
S.No. IQWL P Number of
Programmes
in
Eigen
Value
Percent of
variation
explained
Cumulative
percent of
variation
explained
1 Job Related 6 4.9142 18.62 18.62
2 Quality related 5 3.8649 16.08 34.70
3 Welfare related 5 3.0841 15.17 49.87
4 Counseling 2 2.4565 10.73 60.60
5 Childrens Care 3 2.3891 8.94 65.54
The most important QWL programmes is job related since its eigen value and the
percent of variation explained by it are 4.9142 and 18.62 percent respectively. The next two
important QWL programmes are quality related and welfare related since its eigen values are
3.8649 and 3.0841 respectively. The percent of variation explained by these QWL
programmes are 16.08 and 15.17 respectively. The next two QWL programmes identified by
the EFA are counseling and child care since its eigen values are 2.4565 and 2.3891
respectively. The percent of variation explained by these QWL programmes are 10.73 and
8.94 respectively. In total, narrated five QWL programmes explain the important QWL
programmes to the extent of 65.54 percent. The extracted important QWL programmes have
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been confirmed with the help of confirmatory factor analysis through its standardised factor
loadings of the variables, its „t‟ statistics, composite reliability and average variance
extracted. The important QWL programmes have been included for further analysis.
9.4. Implementation of QWL Programmes as per the view of employers and employees
The mean score of each QWL programmes among the employers and employees have
been computed separately in order to exhibit the level of perception regarding
implementation of QWL programmes in SSI units. The level of perception regarding
implementation of QWL programmes in SSI units among employer and employee have been
presented in figure 2.
Figure 2 Rate of implementation of QWL programmes as per the view of employers and
employees
In order to find out significant difference among the employers and employees
regarding their perception on the implementation of QWL programmes in SSI units, the „T‟
test has been administered. The mean score of the QWL programmes among employers and
employees and their respective „T‟ statistics are depicted in table 4.
Table 4 Implementation of QWL Programmes as per the view of employers and employees
S.
No.
QWL P Mean Score among t - Statistics
Employer Employee
1 Job Related 3.8501 3.0983 3.1446*
2 Quality Related 3.7459 2.7814 3.2687*
3 Welfare Related 3.0241 2.5605 1.3661
4 Counseling 3.5583 2.8072 1.8541
5 Children‟s care 3.7222 2.9665 2.0845*
* Significant at give five percent level.
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The highly viewed QWL programmes by the employers are job related programmes
and quality related programmes since their respective mean scores are 3.8501 and 3.7459,
where as among the employees, the highly viewed QWL programmes are Job related
programmes and childrens care programmes as their respective mean scores are 3.0983 and
2.9665. Regarding the level of perception on implementation of QWL programmes, the
significant difference among the employers and employees have been noticed in the case of
three QWL programmes out of five QWL programmes namely job related programmes,
quality related programmes, childrens care related programmes, since their respective „T‟
statistics are significant at five percent level.
10. Research Implications:
The findings of the present study regarding employees perception on QWL
programme, that job related and welfare related programmes for the employees in industrial
units will lead to enhance job satisfaction is validated by the findings of Kiely, (1992),
Hornberger et al, (1997), Shamir, (1980), Gartner et al, (1997). The positive and significant
influence of job related programmes on job satisfaction of employees is evident by the
findings of Hackman et al (1975), that claims people of enriched jobs are definitely more
motivated and satisfied.
The employees perception on QWL programmes, reveal that the job related and
welfare related programmes continue to be a great concern for employees and are very
important to QWL. The presence of such measure lead to the enhanced QWL of employees
thereby resulting in improved job satisfaction is consistent with findings of Kalra, (1981),
Mehta (1982), Kalra and Ghosh, (1984), Gani and Ahmad (1995). The result of the present
study that Employees participating in the QWL program will be more satisfied and
committed than non-participating employee is similar to the findings of Verma (1989).
11. Managerial Implication
The result of the present study was intended to assist policy makers and decision
makers in formulating policies and systems that enhances the individual well being leading to
individual performance and organisational performance.
The present study identified 5 important QWL programmes on the rate of
implementation at SSI units among employer and employees. Out of 5 QWL program, there
is a significant difference for 3 programs, among employer and employees. They are job
related, quality related and childrens care programmes. Not with standing the fair rating for
these programs, the point to be noted is relatively low scoring for welfared related
programmes and Quality related programmes.
Management often fail to provide sufficient attention to QWL, in the area of job
security, perks and pay for fear of negative effect on a company‟s financial performance.
Organisation should understand it is worthwhile to invest in welfare related programmes, that
leads to employee satisfaction, especially in an economy that is perpetually increasing in
complexity. Such investments allow organisations to attract and retain quality employees,
develop an intellectual capital base, motivate employees to be more productive and garner
high value for the organisation.
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12. Conclusion:
Organisations have started realizing the importance of Human assets for their
existence and prosperity. The days are gone, when the people are viewed as mere machines,
that gives output. In this of context, taking info consideration the contribution of Small Scale
Industrial units to the economy of our country, the present study was undertaken. The study
was unleashed to reveal the view of employers and employees regarding the implementation
of QWL programmes at SSI units. The study also throws light on the importance of QWL
programmes in developing the human resources and enhancing the company‟s performance.
The study concludes by contributing to the understanding of the management and policy
makers on the perspectives exhibited by employers and employees.
13. Scope for future research
The present study was an attempt to reveal the employers and employees perspectives
on QWL programmes. In SSI units. Future studies may be done sector wise encompassing
greater Geographical location. The associations and significance between QWL programmes
and outcomes of job performance and employee behaviour may be undertaken. Such an
attempt would result in indepth study and establish the impact of QWL programmes on
quantitative and qualitative aspect of job performance and human behaviours.
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