Gayathri MBA Thesis

June 3, 2016 | Author: Aparnaa Duraiswamy | Category: Types, School Work
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Organization Commitment Profile of the Employees Roots MultiClean Ltd and A1 Chips & Export (India)Pvt Ltd

Gayathri.V (12PBA005)

A Major Project Report submitted to Avinashilingam Institute for Home Science and Higher Education for Women Coimbatore

In partial fulfillment of the requirements for the Degree of Master in Business Administration.

March, 2014

Dedicated to my Family

Acknowledgement

\

ACKNOWLEDGEMENT As a mark of gratitude the researcher would like to thank the Chancellor, Dr.T.S.K.MeenakshiSundaram, M.A., M.Phil., Ph.D., The Vice Chancellor Dr.(Mrs.) Sheela Ramachandran., Msc. PG Dipl.(FDSC&PR)., Ph.D and The Registrar Dr.(Mrs.) Gowri Ramakrishnan M.Sc., M.Phil., Ph.D., of Avinashilingam University for Women, Coimbatore, for having given an opportunity to undertake this project work, which forms part of the curriculum. The researcher takes pleasure in thanking Dr.(Mrs.) U.Jerinabi M.Com., M.Phil., Dip.Ed., Ph.D., The Dean, Faculty of Business Administration, who has been the backbone behind each and every event of the department and for her constant and dedicated encouragement in all endeavours. The researcher expresses her sincere gratitude and grateful thanks to the Head of the Department , Avinashilingam School of Management Technology,

Dr.P.Chitramani

M.B.A, M.Phil, Ph.D for her continuous support and encouragement. The researcher expresses her most profound thankfulness to her supervisor, Dr.(Mrs.) J.Arthi, M.B.A, M.Phil, Ph.D, Assistant Professor(SG), Avinashilingam School of Management Technology , for all her patience, creativity encouraging guidance, and discussions that made this study to what it is. Without her understanding, consideration and untiring advice, this dissertation would not have been completed successfully. The researcher expresses her heartfelt thanks to the faculty members of Avinashilingam School of Management Technology for their constant encouragement and guidance. The researcher would like to thank Mr.S.Saravanan, Associate Head-HR and Mr.N.Sampath Kumar –Senior Training and Development Manager at Roots Industries Pvt Ltd and Mr.S.Murali , Managing Director ,A1 Chips and Export India Pvt Ltd for their valuable guidance during the project work. Finally, yet importantly, the researcher would like to express her heartfelt thanks to her beloved parents for their blessings, her friends for their help, encouragement and wishes for the successful completion of this project.

Synopsis

SYNOPSIS In this project an attempt has been made to analyze the Organizational Commitment level of the employees at Roots MultiClean ltd and A1 Chips Export (India) Pvt Ltd and a comparative study has been undergone from the results obtained from both the organizations. In the last two decades, Organizational Commitment has received special attention and has grown in acceptance in the literature of industrial and organizational psychology, and organizational behavior. Organizational Commitment is the subject of a number of organizational behavior studies and is considered an important variable in understanding the employee behavior and attitudes. The major objective of this project is to identify the organizational commitment level of the employees. The three forms of commitment Affective, Continuance and Normative portray the Organizational Commitment. In order to reach the objective, primary data have been collected through a structured questionnaire and secondary data through websites, magazines and journals for the study. The sample size of this study was 100 employees constituting operatives of Roots MultiClean Ltd and 100 employees of A1 Chips and Export India Pvt Ltd which are collected based non-probability sampling techniques. The research design used is descriptive research. The data is analyzed using the percentage analysis. Pie charts and bar diagrams were used in the study. The sampling technique used is non-probability sampling method. The data is analysed using Percentage Analysis, Mean Score Value, Correlation analysis and Chi-Square Test. The results of the study show that the employees at Roots MultiClean Ltd show a high level of affective commitment and normative commitment. It has also been found out that there is a moderate level of continuance commitment among the employees .Among the employees at A1 Chips and Export(India)Pvt Ltd it has been found out that the employees show a high level of affective commitment, continuance commitment and Normative Commitment. Through employees, organizations can garner a competitive advantage. Committed employees take pride in organizational membership, believe in the goals and values of the organisation, and therefore display higher levels of performance and productivity.

CONTENTS

CHAPTER

TITLE

PAGE NO

LIST OF TABLES LIST OF CHARTS I

INTRODUCTION 1.1 MANUFACTURING INDUSTRY

1

1.2 ROOTS MULTICLEAN LTD

10

1.3 A1 CHIPS AND EXPORT (INDIA) PVT LTD

19

1.4 ORGANISATIONAL COMMITMENT

23

1.5 OBJECTIVES

28

1.6 SCOPE

28

1.7 LIMITATIONS

29

II

REVIEW OF LITERATURE

III

RESEARCH METHODOLOGY

IV

ANALYSIS AND INTERPRETATION

V

SUMMARY

30 52 55

5.1 FINDINGS

76

5.2 SUGGESTION

88

5.3 CONCLUSION

90

BIBLIOGRAPHY ANNEXURE

91 94

LIST OF TABLES

TABLE NO

TITLE

PAGE NO

4.3.1

Gender

58

4.3.2

Age

59

4.3.3

Marital Status

60

4.3.4

Educational Qualification

61

4.3.5

Experience

62

4.3.6

Monthly Income

63

4.3.7

Affective Commitment

65

4.3.8

Continuance Commitment

66

4.3.9

Normative Commitment

67

LIST OF CHARTS

TABLE NO

TITLE

PAGE NO

4.3.1

Gender

58

4.3.2

Age

59

4.3.3

Marital Status

60

4.3.4

Educational Qualification

61

4.3.5

Experience

62

4.3.6

Monthly Income

63

4.3.7

Affective Commitment

65

4.3.8

Continuance Commitment

66

4.3.9

Normative Commitment

67

CHAPTER I

Introduction

CHAPTER I INTRODUCTION

The study on “Organizational Commitment Profile of the employees” was carried out in Roots MultiClean Ltd and A1 Chips & Export (India) Pvt Ltd. An attempt has also been made to do a comparative study of these two companies in the manufacturing sector. This chapter is categorized as mentioned below: 1.1 The Manufacturing Industry 1.2 Roots MultiClean Ltd 1.3 A1 Chips and Export (India) Pvt Ltd 1.4 Organizational Commitment 1.5 Research Objectives 1.6 Scope 1.7 Limitations

1.1 The Manufacturing Industry Manufacturing sector is the backbone of any economy. It fuels

productivity,

growth, employment and strengthens agriculture and service sectors. Astronomical growth in worldwide distribution systems and IT, coupled with opening of trade barriers, has led to stupendous growth of global manufacturing networks, designed to take advantage of lowwaged yet efficient work force of India. Classification in Manufacturing Indian Manufacturing sector is broadly divided into - Capital Goods & Engineering, Chemicals, Petroleum, Chemicals & Fertilizers,

Packaging,

NonDurables, Electronics, IT Hardware & peripherals, Gems & Jewelry,

Consumer Leather

&

Leather Product, Mining ,Steel & non-Ferrous Metals, Textiles & Apparels and Water Equipment

Role of manufacturing in the Indian economy Manufacturing holds a key position in the Indian economy, accounting for nearly 16 per cent of real GDP in FY12 and employing about 12.0 per labour force. Growth in the sector has been matching the strong pace in overall GDP growth over the past few years. For example, while real GDP expanded at a CAGR of 8.4 per cent over FY05-FY12, growth in the manufacturing sector was marginally higher at around 8.5 per cent over the same period. Consequently, its share in the economy has marginally increased during this time – to 15.4 per cent from 15.3 per cent. Growth however has remained below that of services, an issue that has not escaped the attention of policy makers in the country. Strong growth has been accompanied by a change in the nature of the sector – evolving from a public sector dominated set-up to a more private enterprise-driven one with global ambitions. In fact, according to UNIDO, India (with the exception of China) is currently the largest producer of textiles, chemical products, pharmaceuticals, basic metals, general machinery and equipment, and electrical machinery. In the coming year, the sector’s importance to the global economy is set to increase even further as a combination of supplyside advantages, policy initiatives, and private sector efforts set India on the path to a global manufacturing hub.

Exhibit 1 Size of the manufacturing sector in India 9000

16.4

8000

16.2

7000

16.0

6000

15.8

5000

15.6

4000

15.4

3000 2000

15.2

1000

15.0

0

14.8 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 Manufacturing sector (size in INR billion, constant prices) Share in real GDP (%)

Factors Driving the Indian Manufacturing Growth  Fortification in demand enabling sustainable growth of sector Domestic demand fundamentals for the manufacturing sector in India have never been rosier as it is now. Strong growth in per- capita income, a young and growing population, rapid urbanization, and changing lifestyles will ensure that demand growth will keep the manufacturing sector busy for the coming decades. Per-capita nominal GDP, for example, is slated to expand at a CAGR of 6.9 per cent over 2010-15. Demand-push from increasing incomes will be augmented by a rising middle class and a young population, which currently has a median age of 25 years. According to McKinsey, India’s middle class is likely to expand 12 times (to about 583 million people) over the period 2005-25. During this time, urbanization is likely to increase to 38 per cent from 29 per cent. As a result of these varied factors, India will emerge as the market by 2025 with aggregate consumption in the country slated to rise by about four times over 2005 -25. A small example here will best illustrate the evolving nature of consumer preferences in India. Harley Davidson, the iconic US bike maker, announced in November 2010, its plan for setting up a unit in India.

Exhibit 2 Income categories –changes expected in India 70 60 50 40

Seekers: Annual income INR200,000500,000

million households Aspirers: Annual income INR90,000200,000

Strivers: Annual income INR500,0001,000,000

30 20 10

Deprived annual income INR1,000,000

0 2005

2010

Strivers

Seekers

2015 Deprived

2020

2025

Aspirers

Globals

Source: McKinsey Quarterly Report, Aranca Research

Manufacturing sectors growth spurt Manufacturing accounts for a large chunk of Indian industry, a fact borne out by the sector’s 75.5 per cent share in the Index of Industrial Production CAGR of 8.7 per cent during FY05-FY12(FY 12 includes data from April2011 to Feb12), the manufacturing sector helped the overall industrial sector get over low growth in the other two sub-segments of IIP, Mining and Quarrying (14.2 weight age in IIP) and Electricity (10.3 weightage in IIP) witnessed CAGR of 3.4 per cent and 5.8 per cent respectively.

On an even more encouraging note, the manufacturing sector has strengthened in FY11 compared to the previous fiscal – an analysis of 121 sub-sectors by the Confederation of Indian Industry (CII) reveals that only 5 of them recorded declines in FY11 compared to 25 in FY10. At the same time, key sub- sectors like machine tools, ball and roller bearings, textile machinery, and utility vehicles recorded either excellent (above 20 per cent) or high (10-20 per cent) growth, thereby adding to value creation in manufacturing.

Exhibit 3 CAGR (FY05-FY12) of key sub-sectors within manufacturing (IIP) Manufacturing (Total)

8.7%

Machinery and equipment n.e.c.

12.9%

Motor vehicles#

14.4%

Wood and products of wood*

6.7%

Food products and beverages

6.9%

Textiles

4.2%

Basic metals 0%

9.7% 2%

4%

6%

8%

10%

12%

14%

16%

Source: Central Statistical Organisation, Aranca Research Note: * inlcudes cork products, articles of straw & plating materials; excludes furniture; # includes trailers & semi-trailers

Tapping Global Market  India’s growing manufacturing exports India’s manufacturing exporters have played a key prowess to consumers across the world. While on one hand sectors such as textiles, and gems and jewellery have been India markets since ancient times, the country has also made its presence felt in key industries such as engineering goods and chemicals. In fact, analysis of India’ export data for FY11 reveals that engineering goods had the highest share in manufacturing exports (40.4 per cent), followed by gems and jewellery (25.2 per cent) and chemicals and related products (17.2 per cent). Overall, total manufacturing exports in FY11 grew to USD168.0 billion from USD115.2 billion in FY10  The Main Export Markets The main export market for Indian manufacturing goods was the US and Western Europe. Within Western Europe, Germany and UK are two of the most important export markets. The Middle East is also a key destination for Indian goods with the UAE in particular a major market for Indian gems and jewellery, engineering goods and chemicals. Increasing Competitiveness of Indian Manufacturing  Sector has an edge in the global arena India ranks second in the world as per the 2010 Global Manufacturing Competitiveness Index (GMCI), prepared by the US Council on Competitiveness, and Deloitte. The index factors in market dynamics as well as policy issues influencing the sector. India is ahead of major developed and emerging economies like the US, South Korea, Brazil and competitiveness will increase further with its index score set to improve to 9.01(out of 10) in the next five years from the 2010.The drivers of GMCI in descending order of the weight is presented below.

Exhibit 4 Drivers of the GMCI in descending order of weight Talent-driven innovation Economic, trade, financial and tax systems Quality of physical infrastructure Government investments in manufacturing and innovation Legal and regulatory system Supplier network Local business dynamics Quality and availability of healthcare Source: Deloitte and US Council on Competitiveness, Aranca Research

Snap Shot on Key Industries Automotives India’s automotives industry, worth USD 48 billion, has evolved from producer of 0.6 million units in the early 1990’s to a giant churning out 18.0 million units in 2010. The sector is dominated by cars which make up two-third of industry turnover. However, in terms of volumes, two-wheelers have the largest share – about three-fourth. As per the Automotive Mission Plan, the sector will be worth USD145 billion by 2016.

Exhibit 5 Automotive sales (USD billion)

2007

2008

2009

2010E

Revenue

43.6

45.2

48.0

57.1

Cars

22.9

23.8

32.5

37.8

Trucks

14.9

15.4

8.9

12.3

Two-wheelers

5.8

6.0

6.6

7.0

Growth (%)

21.1

3.7

6.2

19.0

10.9

11.2

14.1

18.0

Production (million units)

Source: Datamonitor, SIAM, Aranca Research

Exhibit 6 Leading market players

Category Passenger Vehicles

Key Player

Market Share

Maruti Suzuki

45%

MCVs & HCVs

Tata Motors

63%

LCVs

Tata Motors

59%

Piaggio

41%

Hero Honda

59%

Honda

51%

Three Wheelers Motorcycles Scooters

Source: SIAM, Aranca Research Notes: LCV –Light Commercial Vehicles, Correspondingly M

in MCV

and H i n HCV s tan d fo r ‘ Medi um’

and ‘Hea vy’

Key Trends



India is the world’s 4th largest 2 wheeler producer and commercial vehicle producer



Increasing innovations –Tata Motors designed the world’s cheapest car (Nano)



Compressed Natural gas (CNG) fuelled vehicles in India have increased at a CAGR of 60 per cent during 2008-10

Growth Drivers



Demand drivers: Rising incomes, growing middle class, a young population, and easy access to credit



Policy Support: through sops, taxes, FDI encouragement, and focus on developing India as a global auto manufacturing hub

Opportunities



Global car giants like General Motors, Nissan and Toyota have earmarked India as the hub for manufacturing small cars for the world market.



India offers a 10-25 per cent cost advantage compared to Europe and Latin America



The electric car market is expected to expand given the passion for fuel efficiency



Given favorable policies (National Automotive Testing and R&D Infrastructure Project) and a pool of skilled manpower, India is fast emerging as a global R&D hub

Food Processing Domestic food spending in India touched USD181 billion in 2009 and is estimated to surge up to USD318 billion on the back of strong growth in per-capita income and a growing (young) population. The food processing industry stands to gain from the fact that the country is- the world’s largest fruits and vegetables producer, and the third-largest fish producer. Exhibit 7 Key figures (USD billion) Production

2004 57.0

2005 62.0

2006 68.0

2007 75.0

Growth (%)

8

9

10

10

Exports

0.6

1.2

1.4

1.9

Growth (%)

0

100

17

36

Source: Flavours of Incredible India (Ernst & Young, 2009), Aranca Research

Exhibit 8 Leading Market Players

Category

Leading players

Fruits, vegetables, Dabur, Godrej, Parle, MTR processed grain Aerated drinks and Pepsi, Coca-Cola, Parle packaged water MTR, Fritolay, Heinz, Nestle, Britannia, Packaged food Cadbury's Cooperative societies - GCMMF, APDDCF, Milk and milk products KMF, Mahasang, NDDB

Source: Aranca Research

Key Trends



Sector accounted for 14 per cent of India’s output in FY09



Consumer food (30 per cent), gain, groundnuts and cereals (28 per cent) and processed fruits and vegetables (18 per cent) were the main export items in FY11; main destinations were the Middle East and South East Asia



Unorganized sector dominates; share: 70 per cent of volumes, 50 per cent of value

Growth Drivers



Demand drivers: Rising incomes, increasing urbanization, growing middle class, dual income households, and a young population



Favorable supply fundamentals: Large agriculture sector, large livestock base, a long coastline, and a number of inland water bodies



Policy Support: Mega Food Parks, Agri Export Zones, 100 per cent FDI under automatic route, tax incentives, and recognition as priority sector for bank credit

Opportunities 

The fragmented market has huge growth potential as current value addition by the industry is 20 per cent; the government intends to boost this to 35 per cent by 2015



Household consumption of processed food is expected to double by 2020 on the rising incomes, poverty alleviation and further urbanization



Potential to evolve as a global food processing hub due to adequate supply of raw materials, cost advantages, and government support

For the past five decades, workers in manufacturing have been accustomed to the promise of long-term job security. At the same time, organizations could generally rely on committed employees who spent their entire careers supporting them. This contract between employees and employers is disappearing nowadays, and a new employment relationship is emerging in its place. However, this study attempts to focus organizational commitment level of the employees at two manufacturing companies and have come out with a comparative analysis on the results obtained from both the organizations.

1.2. Roots MultiClean Limited

RMCL started the manufacture of mechanized cleaning equipment in the early1990s through a techno-financial collaboration with Hako Werke, Germany. The alliance became one of the most successful in the Indian industry. Today, in India, RMCL is the largest manufacturer and exporter of cleaning equipment. A state of the art manufacturing facility and a comprehensive marketing and After Sales Service network, enabled the company to deliver optimum solutions for customer’s cleaning needs. Products from RMCL are built around eco friendly concepts and comply with international quality and safety norms Today, RMCL has grown into a leader in the Indian cleaning equipment manufacturing industry and has a significant market presence in the world market. Its domain expertise spans design, development and manufacture of cleaning equipment. Strategic alliances have strengthened its presence and broadened the scope of its product offerings. RMCL is also the exclusive representative in India for several well known and specialized manufacturers of cleaning equipment across the world. The company derives its strength from an experienced talent repository, comprising experts in technology, product design and development, research, manufacturing and marketing.

Collaboration The technical alliance and joint venture partnership with Hako Werke catapulted RMCL’s global entry. Several products from the Hako-Roots stable are today leading global brands in their respective categories. RMCL later developed its own technological capabilities in product design and entered into an expertise exchange partnership with Hako. Products thus designed are the combined result of Roots product design and Hako styling.

Organization Chart

K.RAMASAMY Executive Director

K.VARUN KARTHIKEYAN Managing Director

S.CHANDRASEKAR Executive Director Marketing

C.M VIJAY GANESH Vice President- Exports

Group Companies Roots Industries India Ltd The flagship company of the group is the largest manufacturer of electric horns in India and one among the largest manufacturing companies in the world. Roots Auto Products Pvt Ltd RAPPL is the country’s largest supplier of air horns with a sizeable market share of close to 50%. Roots Precision Products Pvt Ltd RPP is one of the most sought after solution providers for a variety of precision products in the country. Roots Cast P Ltd This division of Roots caters to specialized Aluminium / Zinc pressure die casting and has proven expertise in tool design, manufacturing, die casting, machining and surface finishing. Roots Polycraft Ltd This division was established in 1988 to manufacture precision injection moulding components and has established itself as a trusted solutions provider to discerning customer organizations’.

Quality RMCL has been quick to adapt to evolving technology and quality compliances. Accreditations include: 

First cleaning equipment manufacturer to comply to ISO 9001-2000 – QMS



First cleaning equipment manufacturer to gain ISO 14001-2004 – EMS (Environmental Management System)



First cleaning equipment manufacturer to be certified with ISO 18001-2007 – OHSAS (Occupational Health & Safety) All products are aligned to match different global standards including CE / CB / GS / EMS/cTUV

Quality Policy

Products The Roots MultiClean product stable comprises of comprehensive cleaning solutions for a wide variety of industrial, commercial and domestic cleaning requirements. In India, all products are backed by a wide network of After Sales Service centres. Products from RMCL are backed by critical research and design insights to suit specific Indian conditions and reflect international styling. The comprehensive range of cleaning machines caters to a numerous industrial cleaning applications.

Sweeper

Vaccum Cleaner

Scrubber Drier

Single Disc

Partners RMCL partners with several brands in different world markets and it exclusively represents these brands in India:

Hako

TTS, Italy

Delfin, Italy

Powerboss, USA

Soteco, Italy

Clearfix,Switzerland

Human Resource Practices Personal Culture The management has been encouraging and promoting a very informal culture, "Personal touch", sense of belonging, enabling employees to become involved and contribute to the success of the company. The top management also conscientiously inculcates values in the people. Work Environment Special and conscious efforts are directed towards housekeeping of the highest order. Renovation and modernization of office premises and office support systems are carried out on an ongoing basis. Training Roots believe in systematic training for employees at all levels. As a part of the Organizational Development efforts, training programmes are being conducted in-house, for employees at all levels. In addition, staff is also sponsored for need based training programmes at leading Management Development Institutes. Total Quality Management Customer Focus is not merely a buzzword but it has become an important factor of every day work and has got internalized into the work environment. There is an equal emphasis on internal customer focus leading to greater team efforts and better crossfunctional relationship. Quality Circle Movement To ensure worker participation and team work on the shop-floor, Roots Industries India Ltd has a very effective Quality Circle Movement in the organization. As on today Roots Industries India Ltd has 3 operating Quality Circles having 24 members and some of them have won awards at different conventions and competitions.

Through interaction with workmen in these sessions, a process of 2-way communication has been initiated and valuable feedback has been received on worker feelings, perception, problems and attitudes. Simultaneously management has communicated the problems faced by them and the plans to overcome these problems. Good Morning Assembly The management aims in operator's mental & physical fitness and it is ensured through the GMA. The operators and shift supervisor, assemble before the I shift beginning and do occupation of fitness exercise, discuss about the Quality Safety & Production aspects of the Previous shifts and take Quality / Safety oath. Through interaction with workmen in these sessions, a process of 2 way communications has been initiated and valuable feedback has been received on worker feelings, perception, problems and attitudes. Simultaneously management has communicated the problems faced by them and the plans to overcome these problems. Roots have a strong people-oriented work culture that can be seen and felt across all its member concerns. Whether they work in group or in isolation, their effort is well appreciated and achievements well rewarded. They have a sense of belonging and they revel in an environment of openness and trust. Cross-functional teams function as one seamless whole and foster the true spirit of teamwork. Roots as a learning organization systematically train its employees at all levels. Conducted in-house, the training programmes equip them to meet new challenges head on. Employees are encouraged to voice their feelings, ideas and opinions. There is a successful suggestion scheme in operation and best suggestions are rewarded. Lasting relationship will evolve only when people know that their work is valued and that they contribute meaningfully to the growth of the organization. At Roots, people across the group companies, through interactions at workshops and seminars, get to know each other individually, share their common experiences and learn something about life.

Roots Care Community Awakening & Rehabilitation of Environment Roots Care Service is formed by Employees of Roots Group to serve the society in the fields of: *

Community Health

*

Education

*

Social & Spiritual

*

Environment

*

General services

The motto is to create awareness among the public about the Environment, Health, to assist the needy by providing financial and non-financial assistance. Monthly Motivational Talk (MMT) Monthly Motivational Talk programme is organized to motivate the employees. Eminent speakers in various subjects are invited to deliver speech on a topic of current importance. Thirukkural Mandram To motivate the employees' interest over Tamil and Tamil Ilakiyam (Literature), Roots Thirukkural Mandram has been started and every month eminent speakers are invited to share their knowledge. Roots MultiClean Ltd, an unit of Roots Group of Companies provides a work environment which will make the employee feel committed towards the organization. And this study on evaluating the organizational commitment level was undertaken in this reputed organization among the operatives.

1.3 A1 Chips and Export (India) Pvt Ltd

The A-1 Chips was established 35 years ago by Mr. C.Subramaniam with its branch in Big Bazaar Street. Locally A-1 chips have nine branches in Coimbatore & Tirupur and now it becomes A-1 Chips and Exports India Pvt Ltd.

And the Secret behind this success is home type production and hygienic methods carried out in the manufacturing process. A-1 Chips also produces roasted food items which has become a household name in Tamilnadu, India and their products are marketed all over India and abroad. TASTE AND QUALITY IS OUR MOTTO, their adage conveys that their products are well known for its taste and Quality; they have been in this Food industry since 1974 and have set a land mark in food industry.

High standard of sanitation and hygiene is maintained in the plant premises. Almost, diligence is taken so that the processing area is devoid of diet, flies, rodents and wastes. The building is of suitable size and design to facilitate proper maintenance size sanitation operations. The walls have smooth surfaces and are easy to clean. Adequate facilities for lighting and ventilation are provided. The working area is well planned and organized such that back tracking and crowding is avoiding by adequate spacing.

The concern is having substantial contemporary manufacturing policy. The following processes are Raw material receiving: The raw materials are received methodically and its quality is checked. Items are inspected for its freshness, temperature, colour, odour, contamination, infestation, satisfactory packing, expiry date and labeling. All items are bought from well reputed supplies who maintain high standard of food, hygiene and requirement specification. The materials are accepted if they meet the standard acceptance criteria requirement of their establishment. The sample of raw materials is taken and they are subjected to physical and chemical examination in quality control lab. Storage and distribution: The received materials are stored at different temperatures to pressure their wholesomeness till required for preparation. The construction of store room facilitates, separate storage of perishable and non-perishable items. The issuing of materials are based on requisition and first in first out procedure are followed. Production: All the food prepared is of best quality. The pre-preparations such as slicing, feeling, soaking, grinding are done in systematic manner. The quality of their products is ensured by the correct cooking temperature, the fuel, the equipments, and the raw materials they purchase. Cooking is executed by indirect heating which assures the quality of their products. Cross-contamination is eliminated at all stages of productions. All the equipments used non-toxic, noncorrosive and do not effects the characteristics of the food, sanitation and hygiene are maintained throughout the production. The quality of the on process and final products are evaluated before packing.

Process

Peeling

Frying

Mixing

Lab Testing

Packing

Packing:

The finished products are taken to the packing area and are cooled before packing. The products are placed in the conveyor belts and passed through the metal detector that ensures the absence of any metal. Further the products are packed in automatic machine. Individual packets are arranged in boxes which are packed and then delivered. All the packets are enbelled with company emblem, product name, ingredients, quantity, nutrient content, manufacturing date, expiry date and directions to use. Sanitary facilities: Adequate supply of potable water is made available in the establishment. It is ensures that there is no-cross contamination between potable water system and non-potable water system. Adequate drainage and waste disposable are facilitated by preventing the risk of contamination of food. A proper system of waste collection and removal is established. The establishment ensures adequate cleaning and maintenance of the building to prevent pests. Amenity of the industry fulfills the sanitary conditions.

A1 Chips and Export (India) Pvt Ltd is famous and well known for its Tapioca Chips and now it provides more than 300 varieties of snacks, sweets and savories. It is also expanding its outlets in the cities nearby Coimbatore like Pollachi. A1 Chips and Export (India) Pvt Ltd also exports chips and other products to countries such as Dubai, Singapore and Australia.

An attempt has been made to analyze the organizational commitment level of the employees at this organization among the employees in the outlets at Coimbatore and in the factory located at Pachapalayam.

1.4 Organizational Commitment Organizational commitment in recent years has become an important concept in organizational research and in the understanding of employees' behavior in the workplace. It reflects the extent to which employees identify with an organization and are committed to its goals. A meta-analysis of 68 studies and 35,282 individuals revealed a strong relationship between organizational commitment and job satisfaction (Tett and Meyer, 1993). However, another study showed that only 38 per cent of employees feel any long-term commitment to their organization (Today, 1995). Yet greater organizational commitment can aid higher productivity (Mathieu and Zajac, 1990) Since the 1960s employee commitment continues to be one of the most exciting issues for both managers and researchers. The term commitment enjoys an increasing vogue in sociological discussion. It is used in analyses of both individual and organizational behavior. It is used in a descriptive concept to mark out forms of action characteristic of particular kinds of behavior of individuals and groups (Becker, 1960). Organizational commitment in the fields of Organizational Behavior and Industrial/Organizational Psychology is, in a general sense, the employee's psychological attachment to the organization. It can be defined as an employee's feelings about their job, and Organizational Identification, defined as the degree to which an employee experiences a 'sense of oneness' with their organization. Because the term has been used to express a varied assortment of ideas, it is fruitless to speculate on its real meaning. The sociologists argue that commitment and the authority that organizations have over members is rooted in the nature of employee involvement in the organization. Organizational researchers and social psychologists view commitment quite differently. Organizational researchers study attitudinal commitment, focusing on how employees identify with the goals and values of the organization. This is commitment viewed primarily from the standpoint of the organization.

Social psychologists study behavioral commitment, focusing on how a person's behavior serves to bind him to the organization. Once behavior shows commitment, people must adjust their attitudes accordingly, which then influence their subsequent behavior. Thus a cycle begins: behavior shapes attitudes and the shaped attitudes in turn shape behavior. The major driving force behind this continuous recognition of commitment in the management literature over more than three decades is that it is often seen as the key to ‘business success’ (Benkhoff, 1997). Many organizations are facing major challenges resulting in restructuring, reengineering and downsizing. The need for factors that predict organizational commitment has become more critical. One of the factors that could lead to healthy organizational climate, increased morale, motivation and productivity is organizational commitment. Organizational commitment has emerged as a promising area of research within the study of industrial/organizational psychology in recent time. (Adebayo, 2006; Meyer and Allen, 1997; Morrow, 1993).Covey (1997) argued that it is possible to purchase man power but it is not possible to purchase employees’ hearts, minds, and souls. Nowadays, the most important resources of an organization are employees’ intelligence and abilities (Marshall, 2000).In order for any organization to utilize the intelligence and the productivity of personnel, the employees must feel a sense of belonging to the organization.

Employees play an important role in achieving organizational targets; therefore, analysis of their psychological characteristics and the impact of these on the organization are crucial. Organizational commitment, in particular, has been a major field of study in recent years. Commitment has been a topic of considerable research interest within organizational behavior during the past 25 years (Mowday, 1998). Interest has seemed to grow over time; there is no evidence of diminished interest in organizational commitment. So, an attempt has been through this study to explore the organizational commitment level in two companies in the manufacturing sector and a comparative analysis of the results obtained from both the organizations has been made.

Definitions One commonly used definition of organizational commitment was developed by Porter et al. (1974). Organizational commitment is defined as the relative strength of an individual’s identification with and involvement in a particular

organization.

Mowday,

Porter,

and

Steers(1982),

affective

organizational commitment can be characterized by three related factors (1)a strong belief in and acceptance of the organization’s goals and values; (2)a willingness to exert considerable effort on behalf of the organization and (3)a strong desire to maintain membership in the organization. Murray, Gregoire, & Downey, 1991: The counterpart to affective organizational commitment is continuance organizational commitment, which considers the idea that individuals do not leave a company for fear of losing their benefits, taking a pay cut, and not being able to find another job. Hunt, Chonko and Wood, 1985 : organizational commitment was defined as a strong desire to remain a member of a particular organization, given opportunities to change jobs. O'Reilly and Chatman, 1986: attempted to clarify the construct of organizational commitment, focusing on the bases of the employee's psychological attachment to the organization. They distinguished three bases of commitment--compliance, identification and internalization--and suggested that these three bases of commitment `may represent separate dimensions of commitment. Maume, 2006: Organizational Commitment is typically measured by items tapping respondents’ willingness to work hard to improve their companies, the fit between the firm’s and the worker’s values, reluctance to leave, and loyalty toward or pride taken in working for their employers.

Theoretical Background Interest in organizational commitment has led to the development of several instruments to measure the construct. Morrow (1983) noted that there were

some 25 concepts and measures related to commitment, and Sutton and Harrison (1993) called for a moratorium on developing additional measures until existing ones could be further analyzed and tested. One of the major models of organizational commitment is that Developed by Meyer and Allen (1991), which conceptualizes organizational commitment in terms of three distinct dimensions: affective, continuance, and normative.

Figure 1.4 Allen and Meyer Three component Model

Affective commitment For several authors, the term commitment is used to describe an affective orientation toward the organization. Kanter (1968), for example, defined what she called "cohesion commitment" as the attachment of an individual's fund of affectivity and emotion to the group. Likewise, Buchanan (1974) described commitment as a partisan, affective attachment to the goals and values, and to the organization for its own sake, apart from its purely instrumental worth. Porter and his associates (Mowday, Steers and Porter, 1979; Porter, Crampon and Smith, 1976; Porter, Steers, Mowday and Boulian, 1974) described commitment as the relative strength of an individual's identification with and involvement in a particular organization. It is a "partisan affective attachment to the goals and values of an organization apart from its instrumental worth" (Popper and Lipshitz, 1992). Employees who are affectively committed to an organization remain with it because they want to do so (Meyer, Allen and Gellatly, 1990).

Continuance Commitment For Stebbins (1970), continuance commitment was the awareness of the impossibility of choosing a different social identity because of the immense penalties involved in making the switch. Still others have used the term "calculative" to describe commitment based on a consideration of the costs and benefits associated with organizational membership that is unrelated to affect (Etzioni, 1975; Hrebiniak and Alutto, 1972; Stevens, Beyer and Trice, 1978). Finally, Farrell and Rusbult (1981) suggested that commitment is related to the probability that an employee will leave his job and involves feelings of psychological attachment which is independent of affect. Meyer and Allen (1991) suggested that recognition of the costs associated with leaving the organization is a conscious psychological state that is shaped by environmental conditions (e.g. the existence of side bets) and has implications for behavior (e.g. continued employment with the organization). Employees wise primary link to the organization is based on continuance commitment remain because they need to do so (Meyer and Allen, 1991). Normative Commitment Finally, a less common, but equally viable, approach has been to view commitment as an obligation to remain with the organization. Marsh and Mannari (1977), for example, described the employee with "lifetime commitment" as one who considers it morally right to stay in the company, regardless of how much status enhancement or satisfaction the firm gives over the years. In a similar vein, Wiener (1982) defined commitment as the totality of internalized normative pressures to act in a way which meets organizational goals and interests and suggested that individuals exhibit these behaviours solely because they believe it is the right and moral thing to do. Normative commitment is characterized by feelings of loyalty to a particular organization resulting from the internalization of normative pressures on the individual (Popper and Lipshitz, 1992). Employees with a high level of normative commitment feel they ought to remain with the organization (Meyer and Allen, 1991).

1.5 Research Objectives a. Primary Objective  To analyze the organizational commitment level of the employees at Roots MultiClean Ltd and A1 Chips and Export India Pvt Ltd. b. Secondary Objective  To identify the relationship between the commitment level and demographical factors.  To compare the results obtained from the two organizations through a comparative analysis.  To suggest ways to improve organizational commitment level of the employees

1.6 Scope In this era of highly competitive environment, organizations in manufacturing sector are trying hard to win the mind of customers by providing them value added service and quality innovative products to remain competitive in the market. Only a committed employee will be more eager about his job and more motivated to dedicate a lot of time and effort to accomplish the tasks required to achieve the organization goal. Organizational commitment in recent years has become an important concept in organizational research and in the understanding of employees' behavior in the workplace. It reflects the extent to which employees identify with an organization and are committed to its goals. Studies have highlighted that commitment has a great impact on the successful performance of an organization. This is because a highly committed employee will identify with the goals and values of the organization, has a stronger desire to belong to the organization.

Therefore it is important for the company to know what are the aspects that plays important role or have big impact in boosting the commitment of the

employees. The research would help the employers to understand the type of commitment of the people in the organization and whether work environment created by them supports the commitment.

1.7 Limitations 

Errors due to the bias of respondents cannot be ruled out in this study.



Difficulty in getting appointments from the personnel managers.



Reluctance of the employees to disclose the facts.



The validity of the study depends upon the information gathered through primary data collection techniques.



Human nature is very dynamic and thus the level of organizational commitment may vary from time to time.

Chapter Summary This chapter provided an insight onto the research on the following areas such as the current trend in manufacturing sector, the company profile of the two organizations where the study was undertaken, and the growing research interests in the area of organizational commitment has also been discussed elaborately followed by the description of the adopted model for the study. The main aim of the research, the significance of the study and the research limitations has also been stated clearly

CHAPTER II

Review Of Literature

CHAPTER II REVIEW OF LITERATURE

In the last two decades, Organizational Commitment has received special attention and has grown in acceptance in the literature of industrial and organizational

psychology,

and

organizational

behavior.

Organizational

Commitment is the subject of a number of organizational behavior studies and is considered an important variable in understanding the employee behavior and attitudes (Mowday, Porter and Steers, 1982; Meyer and Allen, 1984; Farkas, Tetrick, 1989). The literature search indicates that OC is linked to various antecedents ranging from personal variables and organizational characteristics. India’s manufacturers have a golden chance to emerge from the shadow of the country’s services sector and seize more of the global market. McKinsey analysis finds that rising demand in India, together with the multinationals’ desire to diversify their production to include low-cost plants in countries other than China, could together help India’s manufacturing sector to grow sixfold by 2025, to $1 trillion, while creating up to 90 million domestic jobs. Recognizing this, a few leading ones are upgrading their competitiveness by bolstering their operations to improve the productivity of labor and capital, while launching targeted programs to train the plant operators, managers, maintenance engineers, and other professionals the country needs to reach its manufacturing potential. The workplace trend in manufacturing industries is changing with a rapid pace and demands for the highest quality of product and service is increasing. To remain competitive in the face of these pressures, employee’s organizational commitment is crucial. At this juncture, a study on Employee’s organizational commitment in manufacturing companies most relevant. It is appropriate to review the previous researches, surveys and studies for a clear understanding Organizational Commitment.

The following are the categories based on which the review is scrutinized.

2.1 Antecedents and Outcomes of Organizational commitment 2.1.1 Employee Commitment 2.1.2 Types of OC 2.1.3 Components of OC 2.1.4 OC Model 2.1.5 Developing OC 2.1.6 Determinants and Resultants of OC

2.1 Antecedents and Outcomes of Organizational commitment Organizational Commitment is an important issue from both the conceptual and organizational aspect since it may be used to predict employee's absenteeism, performance, turnover, and other behavior. There is little consensus concerning the definition of the concept or its measurement. Most researchers conceive commitment as involving some form of psychological bond between people and organizations, although there is little consensus as to a useful operational index of the concept. Allen and Meyer (1990) conceptualized a multidimensional OC measure that drew on the early works of Porter et al., (1974); Becker (1960); and Weiner and Vardi (1980). McGee and Ford (1987), and Meyer et al., (1990) offered evidence for the presence of other subdimensions of commitment, namely personal sacrifice and lack of alternatives. It is contended that the OC of managers and other employees is essential for the survival and effectiveness of large work organizations because the fundamental responsibility of management is to maintain the organisation in a state of health necessary to carry on its work. Effective management thus presupposes a proprietary concern, a sense of responsibility for and dedication to sustaining the well-being of the organisation. In the absence of ownership as a motive for such concern, modern organizations have of necessity turned to the deliberate creation and protection of committed elites (Selznick, 1957; Perrow, 1972).

Studies relating to employees' commitment have been extensively conducted by various scholars. Various definitions have been given for employee's

commitment. These include an effective response by an employee towards the whole organisation (Martin and Bennett, 1996). Organizational commitment may also be defined as a global attitude which can influence an individual's reaction towards his or her organisation (McCaul et al., 1995). Following a study by Mowday et al., (1979), OC constitutes (a) belief in and acceptance of an organization’s goals and values, (b) willingness to strive harder to develop an organisation by being part of the organisation, (c) willingness to continue working and be loyal to the organisation.

The concept Organizational commitment has grown in popularity in the literature on industrial and organizational psychology (Cohen, 2003). Early studies on Organizational commitment viewed the concept as a single dimension, based on an attitudinal perspective, embracing identification, involvement and loyalty (Porter, Steers, Mowday and Boulian, 1974). According to Porter et al., (1974) an attitudinal perspective refers to the psychological attachment or Affective commitment formed by an employee in relation to his identification and involvement with the respective organisation.

Porter et al., (1974) further describes Organizational commitment as "an attachment to the organisation, characterized by an intention to remain in it; an identification with the values and goals of the organisation; and a willingness to exert extra effort on its behalf". Individuals consider the extent to which their own values and goals relate to that of the organisation as part of Organizational commitment; therefore it is considered to be the linkage between the individual employee and the organisation.

Another perspective on Organizational commitment is the "exchangebased definition" or "side-bet" theory (Becker, 1960; Alluto, Hrebiniak and Alonso, 1973). This theory holds that individuals are committed to the organisation as far as they hold their positions, irrespective of the stressful conditions they experience. However, should they be given alternative benefits, they will be willing to leave the organisation.

Mowday, Porter and Steers (1982) support the "side-bet" theory by describing Organizational commitment as a behavior "relating to the process by which individuals become locked into a certain organisation and how they deal with this problem". This behavioral aspect of Organizational commitment is explained through Calculative and Normative commitments.

Consequently, the concept Organizational commitment is described as tridimensional, characterized by the Affective, Continuance and Normative dimensions (Meyer and Allen, 1991).

Common to the three dimensions of Organizational commitment is the view that Organizational commitment is a psychological state that characterizes organizational member's relationship with the organisation and has implications for the decision to continue or discontinue membership in the organisation (Meyer and Allen, 1997). The concept of Organizational commitment is a popular research topic and has received much empirical study, both as consequences and antecedents, of other work-related variables of interest. 2.1.1 Employee Commitment The concept of employment commitment lies at the heart of any analysis of Human Resource Management. Indeed, the rationale for introducing Human Resource Management policies is to increase levels of commitment, so that positive outcomes can ensue. Such is the importance of this construct. Yet, despite many studies on commitment, very little is understood of what managers mean by the term 'commitment' when they evaluate someone's performance and motivation. Determinants of commitment A model of employee commitment by Dex, S., Scheibl, F., Smith, C., and Coussey, M. (2000) hypothesised that commitment would be related to a set of personal and job related employee characteristics and possible variables related to the working environment as follows.

Ci = f (Xi, Wi, Oij) Where Ci is the level of commitment of employee i Xi is a set of personal characteristics of employee i Wi is a set of job related characteristics of employee i

Oij is a set of characteristics of the workplace establishment j where individual i is employed.

Gallie and White (1993) found that employee commitment was related to personal characteristics that they called external factors (beliefs, sense of success) and internal organizational factors (structure and policies of the organisation). Internal factors that were found to improve commitment included:

 

The opportunities for personal development; The higher the extent to which employees skills were utilized and greater their access to training;



The greater the extent the organisation was seen as a caring employer; and



The existence of teamwork as a form of supervision.

The literature defines commitment as an employee's level of attachment to some aspect of work. Various authors have been instrumental in identifying types of employee commitment as critical constructs in understanding the attitudes and behavior of employees in an organisation. Rajendran Muthuveloo and Raduan Che Rose (2005) explain their concept of OC and how OC forms a subset of employee commitment.

Arguing that conceptual redundancy exists across these, employee commitment is grouped into three foci, as in Figure 2.2.1, commitment to work/job, commitment to career/profession and commitment to organisation.

Though this research specifically addresses commitment to the organisation, or Organizational commitment, it is necessary that work and career commitment be clarified on the conceptual meaning.

Career Commitment: Career commitment refers to identification with, and involvement in, one's occupation. Much literature refers to similar or related concepts: occupational commitment, professional commitment and career salience.

Work Commitment: Work commitment refers neither to the organisation nor to one's career, but to employment itself. Persons committed to work hold a strong sense of duty towards their work, and place intrinsic value on work as a central life interes

Employment Commitment Organizational Commitment

Work /Job Commitment

Career / Professional Commitment

Figure 2.1 Typology of Employee Commitment

Organizational Commitment: The issue of Organizational commitment within the private sector, has, generally, received significant research focus over the past 25 years. There are two dominant conceptualisations of Organizational commitment in sociological literature. These are an employee's loyalty towards

the organisation and an employee's intention to stay with the organisation. Loyalty is an affective response to, and identification with, an organisation, based on a sense of duty and responsibility.

Herscovitch and Meyer's defines the degree to which an employee identifies with the goals and values of the organisation and is willing to exert effort to help it succeed. Loyalty is argued to be an important intervening variable between the structural conditions of work, and the values, and expectations, of employees and their decision to stay, or leave.

2.1.2 Types of OC

There are four types of employee Organizational commitment:

"Want to commit", "Have to commit", "Ought to commit" and "Uncommit" (Bragg et al., 2002). The first type, which comprises employees who commit themselves to the organisation or their employers voluntarily, are usually those who are dedicated. Such employees always strive to do their best for their employers. They are prepared and willing to accept new responsibilities just to serve their employers. They also have positive behaviour and perceptions towards things related to their work. This type of workers is most liked by every employer.

The second type comprises employees who feel obliged to give commitment to their organisation or employer. This type of workers normally feels trapped in situations which force them to commit themselves to their work. There are various factors which contribute to such a situation. These include failure to get employment somewhere else, family problems, nearing retirement, and health. In some situations, they could choose to leave their job, but they feel that they cannot afford to do so. This normally results in their doing work under stress/pressure which leads to the feeling of dissatisfaction, low productivity and negative behaviour. They also create a lot of problems to their supervisors and employers. The third type comprises employees who feel that it is their responsibility

or obligation to offer commitment to their organisation. This type of employees feels that they are obligated to do whatever is asked by their employer. This sense of obligation tends to occur with employees who desperately need the job offered to them by their employers. The fourth type comprises employees who lack commitment. Majority of them are not satisfied with or have a negative perception towards their organisation or employer. They actively look for opportunities to work somewhere else and they tend to work half-heartedly for their organisation. Most of them have intentions to quit or change job.

The need for high Organizational commitment is an important issue in any organisation. This is because an employee who is highly committed towards his or her organisation can be said to be productive, stable, and always strive towards fulfilling their organisation's needs as opposed to those who are less committed (Larkey and Morrill, 1995). Studies on job commitment have used various variables such as individual's background, organisation, employer, work, and job satisfaction. The findings by Aizzat et al., (2003) reveal that marital status (unmarried), qualification (degree) and pay have negative relationships with commitment towards organisation. Organizational commitment is also seen as having a direct relationship with low employee turnover and productivity (Bateman dan Strasser, 1984). One of the findings by Feather and Rauter (2004) involving permanent and temporary teachers in Victoria, Australia reveals a positive relationship between Organizational commitment and organizational identification, influence, variety, skill utilisation and organizational citizenship behaviour.

Moha Asri Abdulla, Munir Shuib, Zikri Mohammad, Hassan Naziri Khalid and Junaimah Jauhar (2007) in their research on Employee Organizational Commitment in SMEs: Manufacturing Sector found that majority of respondents demonstrates a high level of commitment. A total of 91.4 percent of the respondents showed a high level of commitment to their organisation. Only 0.8 percent said that they have moderate commitment. The others, around 7.8 percent had a low level of commitment to their organisation. Employee Organizational commitment involves five important elements: willingness to put in a great deal of

effort beyond that is normally expected, willingness to claim and tell friends that the organisation the employee is working for is the best, being loyal to the organisation, acceptance of almost any job assignment, having a bright future with the firm, and believing that work policies in the firm are the best. Employee commitment has been viewed as an intermediate outcome, on the way to improvements in business performance (Huselid, 1995).

The High Commitment Management (HCM) practices are about employers using practices that encourage commitment in their employees. This type of management theory would lead us to expect that jobs with more responsibility and discretion in the higher status occupations would be expected to be associated with higher levels of commitment.

Satisfaction with rewards from work, satisfaction with the job itself, and feeling secure are all likely to be associated with higher levels of commitment, as are higher pay levels (Dex, S. and Scheibl, E., 2001).

2.1.3 Components of OC

Two major theoretical approaches emerge from previous research on commitment: Commitment is viewed as an attitude of attachment to the organisation, which leads to particular job-related behaviour. The committed employee, for example, is less often absent, and is less likely to leave the organisation voluntarily, than the less committed employees. One line of research in organisations focuses on the implications of certain types of behaviour on subsequent attitudes. A typical finding is that employees who freely choose to behave in a certain way, and who find their decision difficult to change, become committed to the chosen behaviour and develop attitudes consistent with their choice.

The important issue is not whether the commitment process begins with

either attitude or behaviour. Rather, it is important to recognise the development of commitment may involve the subtle interplay of attitudes and behaviour over a period of time. The process through which commitment is developed may involve self-reinforcing cycles of attitudes and behaviour that evolve on the job, and over time, strengthen employee commitment to the organisation.

Meyer and Allen (1997) present these three approaches and define their three dimensional constructs as Affective, Continuance and Normative commitment.

Affective commitment refers to the employees' emotional attachment to, identification with, and involvement in, the organisation [based on positive feelings, or emotions, toward the organisation]. The antecedents for Affective commitment include perceived job characteristics [task autonomy, task significance, task identity, skill variety and supervisory feedback], organizational dependability [extent to which employees feel they can influence decisions on the work environment and other issues of concern to them].

Figure 2.2 Components of OC (Meyer and Allen,1997)

Continuance commitment refers to commitment based on the costs that the employee associates with leaving the organisation [due to the high cost of leaving]. Potential antecedents of Continuance commitment include age, tenure,

career satisfaction and intent to leave. Age and tenure can function as predictors of Continuance commitment, primarily because of their roles as surrogate measures of investment in the organisation. Normative commitment refers to an employee's feeling of obligation to remain with the organisation [based on the employee having internalized the values and goals of the organisation]. The potential antecedents for Normative commitment include co-worker commitment [including Affective and Normative dimensions, as well as commitment behavior], organizational dependability and participatory management. Co-workers' commitment is expected to provide Normative signals that influence the development of Normative commitment.

The employees' level of commitment to an organisation may make them more eligible to receive both external benefits, such as better wages, and psychological

rewards

associated

with

belonging.

Organizations’

value

commitment among their employees because it is typically assumed to reduce undesirable behavior, such as lateness and absenteeism. Committed employees may also be more likely to engage in "extra-role" behavior, such as creativeness or innovativeness that are vital for maintaining the organization’s competitiveness (Katz and Kahn, 1978).

2.1.4 OC Model Meyer and Allen (1997) use the tri-dimensional model to conceptualize Organizational commitment in three dimensions namely, Affective, Continuance and Normative commitments. These dimensions describe the different ways of Organizational commitment development and the implications for employees' behavior. Figure 2.3 presents the tri-dimensional Organizational commitment model.

Affective commitment dimension

The first dimension of Organizational commitment in the model is Affective commitment, which represents the individual's emotional attachment to the organisation. According to Meyer and Allen (1997), Affective commitment is "the employee's emotional attachment to, identification with, and involvement in the organisation".

Organizational members, who are committed to an organisation on an affective basis, continue working for the organisation because they want to (Meyer and Allen, 1991). Members who are committed on an affective level stay with the organisation because they view their personal employment relationship as congruent to the goals and values of the organisation (Beck and Wilson, 2000).

Affective commitment is a work related attitude with positive feelings towards the organisation (Morrow, 1993). Sheldon (1971) also maintains that this type of attitude is "an orientation towards the organisation, which links or attaches the identity of the person to the organisation". Affective commitment is the relative strength of an individual's identification with and involvement in a particular organisation (Mowday et al., 1982).

The strength of affective organizational commitment is influenced by the extent to which the individual's needs and expectations about the organisation are matched by their actual experience (Storey, 1995). Tetrick (1995, p 589) also describes affective commitment as “value rationality-based organizational commitment, which refers to the degree of value congruence between an organizational member and an organisation”.

ANTECEDENTS

PROCESSES

DISTAL

PROXIMAL

COMMITMENT

CONSEQUENCES

ORGASATIONAL CHARACTERISTICS

  

Size



Structure

 

Climate Etc

PERSONAL CHARACTERISTICS

  

  

  



Demographics  Values  Expectations

SOCIALISATION EXPERIENCES  Cultural  Familial

Organizational



WORK EXPERIENCE

      

   

MANAGEMENT PRACTICES  Selection  Training

Compensation

 



Job scope

  

AFFECT-RELATED

Relationships Participation

 

Support Justice

ROLE STATES  Ambiguity  Conflict 

PSYCHOLOGICAL CONTRACT

Social Exchange



Attribution

  Met expectations  Person - Job fit  Rationalisation



 



Need satisfaction

 

NORM RELATED Expectations 



Obligations





COST RELATED 

Alternatives  Investments

ENVIRONMENTAL CONDITIONS

   



  

Overload

Economic  Exchange

    

 



AFFECTIVE COMMITMENT Organisation Union

Team

CONTINUANCE COMMITMENT Organisation Union

Team NORMATIVE COMMITMENT Organisation Union Team



RETENTION Withdrawal



Cognition Turnover Intention Turnover

  

PRODUCTIVE BEHAVIOUR Attendance Performance Citizenship



EMPLOYEE WELLBEING Psychological  Health Physical Health  Health 



Career Progress

Unemployment  rate Family  responsibility Union Status



Figure 2.3 Organizational Commitment Model (Allen and Meyer,1997)

Continuance Commitment Dimension

The second dimension of the tri-dimensional model of Organizational commitment is Continuance commitment. Meyer and Allen (1997) define Continuance commitment as "awareness of the costs associated with leaving the organisation". It is calculative in nature because of the individual's perception or weighing of costs and risks associated with leaving the current organisation (Meyer and Allen, 1997). Meyer et al., (1990) also maintain that "accrued investments and poor employment alternatives tend to force individuals to maintain their line of action and are responsible for these individuals being committed because they need to". This implies that individuals stay in the organisation, because they are lured by other accumulated investments which they could lose, such as pension plans, seniority or organisation specific skills.

Normative Commitment Dimension

The last dimension of the Organizational commitment model is Normative commitment. Meyer and Allen (1997) define Normative commitment as "a feeling of obligation to continue employment". Internalised normative beliefs of duty and obligation make individuals obliged to sustain membership in the organisation (Allen and Meyer, 1990). According to Meyer and Allen (1991) "employees with Normative commitment feel that they ought to remain with the organisation". In terms of the normative dimension, the employees stay because they should do so or it is the proper thing to do.

Wiener and Vardi (1980) describe Normative commitment as "the work behaviour of individuals, guided by a sense of duty, obligation and loyalty towards the organisation". Organizational members are committed to an organisation based on moral reasons (Iverson and Buttigieg, 1999). The normatively committed employee considers it morally right to stay in the organisation, regardless of how much status enhancement or satisfaction the organisation gives him or her over the years.

2.1.5

Developing OC

Organizational Commitment is a spontaneous process, which develops through the orientation of individuals to the organisation. The development process can be described based on stages and levels of Organizational commitment.

Stages of OC

Organizational Commitment develops through stages, which are outlined by O'Reilly (1989) as Compliance, Identification and Internalisation. These stages are described in the forthcoming page:

Compliance stage The first stage, namely compliance centralises around the employee accepting the influence of others mainly to benefit from them, through remuneration or promotion (O'Reilly). At this stage, attitudes and behaviour are adopted not because of shared beliefs but simply to gain specific rewards.

Identification stage

The second stage, namely identification occurs when employees accept the influence of others in order to maintain a satisfying self-defining relationship with the organisation (O'Reilly, 1989). Employees feel proud to be part of the organisation; they may regard the roles they have in the organisation as part of their self-identity (Best, 1994).

Internalisation stage

The last stage, namely internalisation takes place when the employee finds the values of the organisation to be intrinsically rewarding and congruent with his or her personal values (O'Reilly, 1989). Organizational commitment at this level is based on the Affective dimension (Meyer and Allen, 1997). The employee at this stage develops not only the sense of belonging but passion to belong to the organisation hence the commitment is based on a "want to stay" basis. The values of the individual are therefore congruent with those of the group and the organisation.

Levels of Organizational commitment

There are different levels of Organizational commitment which are related to the individual’s Organizational development commitment. Employee's level of commitment may move from a low level to a moderate level and continue to develop to a higher level of commitment (Reichers, 1985).

A high level of Organizational commitment is characterised by a strong acceptance of the organisation‟svaluesandwillingness to exert efforts to remain with

the organisation (Reichers, 1985). Miller (2003) states that "high organizational commitment means identifying with one's employing organisation". The "will to stay" suggests that the behavioural tendencies at this level relate closely with Affective dimension of commitment, where individuals stay because they want to. The moderate level of Organizational commitment is characterised by a reasonable acceptance of organizational goals and values as well as the willingness to exert effort to remain in the organisation (Reichers, 1985).

The level can be viewed as a reasonable or average commitment, which implies partial commitment. The willingness to stay is an attribution of a moral commitment associated with the normative dimension of commitment (Meyer and Allen, 1997). The individuals stay in the organisation because they should do so.

The low level of Organizational commitment is characterised by a lack of neither acceptance of organizational goals and values nor the willingness to exert effort to remain with the organisation (Reichers, 1985). The employee who operates on this level must be disillusioned about the organisation; such an employee may stay because he or she needs to stay as associated with the continuance dimension (Meyer and Allen, 1997).

2.1.6 Determinants and Resultants of OC

There are varieties of factors that shape Organizational commitment. Such factors include the following: job-related factors; employment opportunities; personal characteristics; positive relationships; organizational structure; and management style. The findings by Dunham et al., (1994) were consistent with the research of Steers (1977) and Mottaz (1988) that perceived Participatory management contribute to create rewarding situations intrinsically conducive to the development of Affective commitment

Job-related factors Organizational commitment is an important job-related outcome at the individual level, which may have an impact on other job-related outcomes such as

turnover, absenteeism, job effort, job role and performance or visa versa (Randall, 1990). The job role that is ambiguous may lead to lack of commitment to the organisation and promotional opportunities can also enhance or diminish Organizational commitment (Curry, Wakefield, Price and Mueller, 1996).

Employment opportunities

The existence of employment opportunities can affect Organizational commitment (Curry et al., 1996). Individuals who have a strong perception that they stand a chance of finding another job may become less committed to the organisation as they ponder on such desirable alternatives. Where there is lack of other employment opportunities, there is a tendency of high level of Organizational commitment (Vandenberghe, 1996). Personal characteristics Organizational commitment can also be affected by the employee's personal characteristics such as age, years of service and gender (Meyer and Allen, 1997). Baron and Greenberg (1990) state that, "older employees, those with tenure or seniority, and those who are satisfied with their own levels of work performance tend to report higher levels of Organizational commitment than others". This implies that older people seem to be more committed to the organisation than other age groups.

Work environment The working environment is also identified as another factor that affects Organizational commitment. One of the common working environmental conditions that may affect Organizational commitment positively is partial ownership of a company. Ownership of any kind gives employees a sense of importance and they feel part of the decision-making process (Klein, 1987). This concept of ownership which includes participation in decision-making on new developments and changes in the working practices creates a sense of belonging (Armstrong, 1995). Subramaniam and Mia (2001) indicates that managers who participate in budget

decision-making tend to have a high level of organizational commitment.

Another factor within the work environment that may affect Organizational commitment is work practices in relation to recruitment and selection, performance appraisal, promotions and management style (Meyer and Allen, 1997). Metcalfe and Dick (2001) conclude that "the low level of Organizational commitment of constables could be attributed to inappropriate selection and promotion which lead to the perpetuation of managerial style and behaviour that has a negative effect on Organizational commitment of subordinates".

Positive relationships

The organisation as a workplace environment is built up of working relationships; one of which is the supervisory relationship. According to Randall (1990): "the supervisory relationship can affect Organizational commitment either positively or negatively". A positive supervisory relationship depends on how workrelated practices such as performance management are being implemented in the organisation (Randall, 1990).

Organizational structure

Organizational structure plays an important role in Organizational commitment. Bureaucratic structures tend to have a negative effect on Organizational commitment. Zeffanne (1994) indicates that the removal of bureaucratic barriers and the creation of more flexible structure are more likely to contribute to the enhancement of employee commitment both in terms of their loyalty and attachment to the organisation.

Management style

It is stated by Zefanne (1994) that "the answer to the question of employee commitment, morale, loyalty and attachment may consist not only in providing motivators, but also to remove demotivators such as styles of management not suited

to their context and to contemporary employee aspirations". A management style that encourages employee involvement can help to satisfy employee's desire for empowerment and demand for commitment towards organizational goals. Shirley Dex and Colin Smith (1998) used Allen and Meyer's model of OC to assess whether employee access to family friendly policies in the work place affected their commitment. Data about the family-friendly policies, and their number were available from both the manager's questionnaire and the employees themselves. Comparisons were made of the effects on commitment of policies from these two alternative sources. There was evidence that access to some family-friendly policies improved commitment in the case of employees working in the private sector but not in the public sector. A research project focuses on Engineers, a key workforce for any country similar to Malaysia - a nation embarking on a knowledge-based economy. The author's interest lies in improving Organizational commitment, which, in turn, reduces engineer turnover and enhances positive organizational outcomes. This research aims to identify the elements of employee perception and personal characteristics which have a significant influence on Organizational commitment amongst engineers in Malaysia. The study evaluates which elements of Organizational commitment and personal characteristics have implications for organizational outcomes, comprising loyalty, intention to leave, work stress and Job performance. The theoretical framework of this research is based on two hypotheses

I.

Positive employee perceptions lead to higher Organizational Commitment.

II.

Higher Organizational commitment brings positive organizational Outcomes. Engineer's perceptions, as antecedents of organizational commitment, are

measured through perceived job characteristics, perceived job satisfaction, perceived organizational

characteristics

and

role

perception.

The

authors

combine

organizational characteristics and group/leader relationships into one element called perceived organizational characteristics, while motivation and job satisfaction are

combined into perceived job satisfaction. The authors classify all four elements into one dimension, called employee perception, as it is the employees’ feeling about their role, job and organisation, based on their perceptions.

Employee Perception - Perceived job characteristics - Perceived job satisfaction - Perceived organizational characteristics - Role perception

Organizational Commitment - Affective commitment - Continuance commitment - Normative commitment

Personal Characteristics Age, gender, race, job tenure, academic background, country of graduation, length of service, position and religion

Organizational Outcomes - Loyalty - Intention to leave - Work stress - Self performance

Figure 2.4 Theoretical frame work (Rajendran Muthuveloo, Raduan Che Rose, 2005)

Organizational commitment is measured through Affective, Continuance and Normative commitment, based on the three-component model of Organizational commitment by Meyer and Allen (2005).

Organizational commitment can have either a negative or a positive effect on the organisation.

Negative effect of low level Organizational commitment The negative effect implies that the level of Organizational commitment is low. Employees with a low level of Organizational commitment tend to be unproductive and some become loafers at work (Morrow, 1993).

Lowman (1993) states that Organizational commitment can be regarded as a "work dysfunction when it is characterized by under- commitment and overcommitment". The following are the characteristics of over-commitment and undercommitment according to Lowman (1993):

The OC model and theoretical framework of various studies and researches had given appropriate insights for the current study to understand the base factors that influence OC and what impact OC could create on several other factors Table 2.1 Characteristics of Over-Commitment and Under-Commitment (Lowman, 1993)      

Under-commitment Fear of success Fear of failure Chronic and persistent procrastination Negative cultural, familial and personality factors. Chronic and persistent underachievement.



Over-commitment Overly loyal employees Job and occupational burnout Obsessive - compulsive patterns at work. Neurotic compulsion to succeed.



Extreme high level of energy.

  



In certain cases the high rate of staff turnover and absenteeism are associated with the low level of organizational commitment (Morrow, 1993). Cohen (2003, p xi) motivates that “lack of organizational commitment or loyalty is cited as an explanation of employee absenteeism, turnover, reduced effort expenditure, theft, job dissatisfaction and unwillingness to relocate”.

Positive effect of organizational commitment Committed organizational members contribute positively to the organisation which is not the case with less committed members. Cohen (2003, p 18) states that “organizations whose members have higher levels of commitment show higher performance and productivity and lower levels of absenteeism and tardiness”. This implies that employees with a high level of commitment tend to take greater efforts to perform and invest their resources in the organisation (Saal & Knight, 1987).

Organizational commitment can result in a stable and productive workforce (Morrow, 1993). It enables employees to release their creativity and to contribute towards organizational development initiatives (Walton, 1985).Employees who are highly committed do not leave the organisation because they are dissatisfied and tend to take challenging work activities (Meyer &Allen, 1997). Committed members are normally achievement and innovative orientated with the ultimate aim of engaging in and improving performance (Morrow, 1993).

Other positive effects of organizational commitment include feelings of affiliation, attachment and citizenship

behavior, which tend to improve

organizational efficiency and effectiveness (Williams & Anderson, 1991). Affectively and normatively committed members are more likely to maintain organizational membership and contribute to the success of the organisation than continuance-committed members (Meyer & Allen, 1997).

Chapter Summary This chapter described the concept of organizational commitment based on the adopted model for this study. Herewith ,the specific aim of literature review, namely to explore the concept of organizational commitment was met by focusing on the development, determination and results of OC , the positive and the negative effects of OC in detail.

CHAPTER III

Research Methodology

CHAPTER III RESEARCH METHODOLOGY

This chapter addresses the approach to the study. It provides an explanation of the research design, details regarding the sample, the variables to be examined, chosen measurement instruments, means of data collection, and data analysis.

This chapter is divided into various sub headings as presented below 3.1 Research Design 3.2 Sample Design 3.3 Data Collection Method 3.4 Measuring Scale and Statistical Tool

3.1 Research Design: The research design is descriptive. The purpose of descriptive research is to collect detailed factual information that describes an already existing phenomenon Ezeeni(1981).

Affective Commitment

Demographic Factors

Continuance Commitment

Normative Commitment

Organizational Commitment

3.2 Sample Design: 3.2.1 Population: All items in any field of enquiry constitute a ‘Universe” or “Population”. The population for the study constituted the Executives and Staffs of Roots MultiClean Ltd and employees at A1 Chips and Export (India) Pvt Ltd. 3.2.2 Sample Size: The sample unit of the study was 100 employees constituting Executives and staffs of Roots MultiClean Ltd and 100 employees at A1 Chips and Export India Pvt Ltd constituting of 50 employees from the outlets and 50 employees from the factory. 3.2.3 Sampling Method: The sampling method used for the study was non-probability judgmental sampling method.

3.3 Data Collection Method: Primary Data: Primary data was collected through a structured questionnaire. Secondary Data:

Secondary data has been collected books, project reports and

project reports and websites. 3.3.1 Tools for data collection: The questionnaire designed consists of two parts- Demographic Details, Organizational Commitment. The statements related to OC is derived from OCQ (Organizational Commitment Questionnaire) developed by Allen and Meyer (1990). Organizational Commitment was measured using 24 item scales which comprises of three set of items, they are 

Affective commitment (8 items)



Continuance Commitment (8 items),



Normative commitment (8 items).

3.4 Measuring Scale and Statistical Tools The data collected through questionnaire has been analyzed through Percentage Analysis, Mean Score Value and Correlation Analysis. The scaling technique used in the research method are 5-point scales used through factors like Strongly Agree, Agree, Neutral, Disagree, Strongly Disagree The data has been represented using bar diagram.

Percentage Analysis: Percentage analysis method was used for the purpose to tabulate the collected data and calculate the percentage. The values are plotted using bar charts.

Correlation Analysis: Correlation refers to any of a broad class of statistical relationships involving dependence. The correlation coefficient is a measure of linear association between two variables. Mean Score Value: The mean of set of scores is the sum of the scores divided by the number of scores. Along with the median and the mode, the mean is just one measure of the central tendency of a set of scores, but the mean is by far the most common and the most useful.

Chapter Summary This chapter has described the methodology for the present study in detail. In also provided details on the population of the study and the exact number of respondents participated in the study. The type of research design framed for the study is also mentioned for which the results will be reflected in the following chapters. The adopted questionnaire for the study, the method of data collection and the tools to examine the collected data are all discussed precisely.

CHAPTER 1V

Analysis and Interpretation

CHAPTER 1V ANALYSIS AND INTERPRETATION In this chapter the statistical measures are used to test the data on various aspects of the research objectives in order to arrive at a concrete result. Statistical Package for Social Sciences Version 16 was used to explore the data. The Chapter is categorized as follows 4.1 Pattern for Analysis 4.2 Reliability Analysis 4.2 Statistical Tables 4.3.1 Affective Commitment 4.3.2 Continuance Commitment 4.3.3 Normative Commitment 4.3 Hypothesis Testing 4.4 Correlation Analysis

4.1 Pattern for Analysis Factors

Tools Applied

Demographic Variables Age Gender Educational Qualification

Percentage Analysis

Marital Status Job Related Variables Experience Monthly Income Affective Commitment Strong Sense of belonging Part of family

Percentage Analysis

The

Discussion outside Personal Meaning Organisation Problems as own

MSV

Easy attachment with other organisation Emotional Attachment Spending rest of the career Continuance Commitment Few options to leave Disruption in life Costly to leave Afraid to quit job without another one lined up Matter of necessity

MSV

Scarcity of available alternatives Personal Sacrifice Overall benefits Normative Commitment Move company to company Loyal to his/her organisation Jumping from organisation to organisation Sense of moral obligation to remain Better job elsewhere

MSV

Value of remaining loyal People staying in one organisation Company man or company women Hypothesis Testing

Chi-Square

Relationship Between The Three Commitment

Correlation

Scales Organizational Commitment Profile

Cross Tabulation

4.2 Reliability Analysis The reliability test concerned with the stability and consistency measurement to access the goodness of a measure. It will answer the questions on how consistently it measures a particular concept. Based on the output of the analysis, the Cronbach’s alpha acquired indicates that all the items are positively correlated to one another and it is internally consistent.

The Cronbach’s Alpha testing will be used as it is the most well accepted reliability test tools applied by social researcher (Sekaran, 2006). In Cronbach’s Alpha reliability analysis, the closer Cronbach’s Alpha to 1.0, the higher the internal consistency reliability. (Cronbach’s Alpha; Cronbach, 1946). Cronbach measures ; 1. Reliability less than 0.6 considered poor. 2. Reliability in the range 0.7 is considered to be acceptable. 3. Reliability more than 0.8 are considered to be good Based on the output of the analysis from Table 4.1 it can be inferred that the Cronbach’s alpha acquired indicates that all the items are positively correlated to one another and it is internally consistent. On the over all, the reliability of all the measures was comfortably above 0.66, ranging from 0.66 to 0.85. In summary, the instrument used to measure each variable in this study is reliable. Table 4.2 Scale

Cronbach alpha

Cronbach alpha

Number of

coefficient(R)

coefficient(A)

items

Affective Commitment

.859

.665

8

Continuance Commitment

.697

.793

8

Normative Commitment

.765

.691

8

4.3 Statistical Tables In order to evaluate and compare the demographical data collected from two organizations, Simple Percentage analysis is used to reduce a series of related amounts to a series of percentages of a given base. Mean Score value method is applied to 5-point Likert scale questionnaire (OCQ) to manipulate data for analysis Gender Gender refers to the socially constructed roles, behavior, activities and attributes that a particular society considers appropriate for men and women Table 4.3.1 Gender

No of Respondents (R) 60 40 100

Male Female Total

% 60 40 100

No of Respondents (A) 39 61 100

% 39 61 100

From the above table it can be interpreted that the number of male respondents is more(60%) at Roots Multiclean Ltd when compared to A1 Chips and Export(India) Pvt Ltd (39%).And it is also found that the

number of female

respondents is more at A1 Chips and Export(India) Pvt Ltd (61%) when compared to that of Roots Mulitclean Ltd(40%). Chart 4.3.1 Gender 70 60 50 40 30 20 10 0 Male

Female Gender (R)

Male

Female Gender(A)

Age Age of the employees shows the number of employees working in the organization with a particular age group. Age indicates the level of maturity in each individual. Table 4.3.2 Age 20-25 25-30 30-35 35-40 40-Above Total

No of Respondents (R) 23 44 7 12 14 100

% 23 44 7 12 14 100

No of Respondents (A) 51 10 12 12 15 100

% 51 10 12 12 15 100

From the above table it can be interpreted that majority(51%) of the respondents at A1 Chips and Export(India) Pvt Ltd are between the age group of 2025 .As in the case of Roots MultiClean Ltd ,majority(44%) of the respondents belong to the age group of 25-30. Chart 4.3.2 Age

Marital Status Marital status will influence the employees to perform their work efficiently because the married person has more responsibilities and needed to balance work and life. Table 4.3.3 Marital Status

No of Respondents (R)

%

No of Respondents (A)

%

Married

48

48

54

54

Not Married

52

52

46

46

Total

100

100

100

100

From the above table it can be interpreted that majority(54%) of the respondents are married at A1 Chips and Export(India) Pvt Ltd when compared to respondents at Roots Multiclean Ltd. And majority(52%) of the respondents are single at Roots MultiClean Ltd whereas only 46% of the respondents are single at A1 Chips and Export(India) Pvt Ltd. Chart 4.3.3 Marital Status 56 54 52 50 48

46 44 42 Married

Not Married

Marital Status (R)

Married

Not Married

Marital Status (A)

Educational Qualification Educational qualification is an attribute that must be met or complied with and that fits a person for something. Table 4.3.4 Educational Qualification UG PG 10th 12th Others Total

No of Respondents (R) 37 51 0 0 12 100

% 37 51 0 0 12 100

No of Respondents (A) 23 0 44 33 0 100

% 23 0 44 33 0 100

The above table shows that majority (51%) of the respondents belong to Postgraduate category at Roots MultiClean Ltd, and majority (44%) of the respondents have the completed their 10th standard. Chart 4.3.4 Educational Qualification 60 50 40

30 20 10 0 UG

PG

Others

Educational Qualification(R)

UG

10th

12th

Others

Educational Qualification(A)

Experience Experience improves the skill of the employee. An experienced person can perform better than an inexperienced person by avoiding the unnecessary task attached to a job. Table 4.5.5 Experience 0-1 1-2 2-4 4-6 6-8 Above 8 Total

No of Respondents (R) 39 23 12 13 10 3 100

% 39 23 12 13 10 3 100

No of Respondents (A) 27 16 30 15 5 7 100

% 27 16 30 15 5 7 100

From the Table 4.5.5, it is evident that 28% of the respondents at Roots MultiClean Ltd have 2-4 years of experience which seems to me similar to that of the A1 Chips and Export (India) Pvt Ltd where 30% of the respondents belong to 2-4 years of experience category Chart 4.5.5 Experience

Experience(R)

Experience(A)

Above 8

6-8 years

4-6 years

2-4 years

1-2 years

0-1year

Above 8

6-8 years

4-6 years

2-4 years

1-2 years

0-1year

45 40 35 30 25 20 15 10 5 0

Monthly Income Income is a type of the compensation received by a private individual or household often derived from economical activities. Table 4.3.6

Monthly Income

No of Respondents (R)

%

No of Respondents (A)

%

Below 5000

0

0

12

12

5000 - 10000

14

14

10,000 - 15,000

24

24

58 30

58 30

15,000 - 20,000 20,000 - 25,000 Above 25,000

30 13 19

30 13 19

0

0

0 0

0 0

Total

100

100

0

0

The Table 4.3.6 shows that 30% of the respondents at Roots MultiClean Ltd are in the income group of 15,000-20,000. 58% of respondents at A1 Chips and Export(India) Pvt Ltd are in the income group of 5000-10,000. Chart 4.3.6 Monthly Income 70 60 50 40 30 20 10

Income(R)

Income(A)

10,000 - 15,000

5000 - 10000

Below 5000

Above 25,000

20,000 - 25,000

15,000 - 20,000

10,000 - 15,000

5000-10000

Below 5000

0

The Organizational Commitment Scales namely Affective Commitment, Continuance Commitment and Normative Commitment are analyzed with the help of Mean Score Value. The mean scores are calculated for 24 items in the OCQ. The calculated mean score ranges from 1 to 5.The commitment level have been analyzed with the help of these score. The mean score value measures

Above 3.5 to 5

- High Commitment Level

Above 2.5 and Below 3.5 - Moderate Commitment Level Above 1 and Below 2.5

- Low Commitment Level

Based on the above rating method the organizational commitment level has been scrutinized. When the mean score values are above 3.5 it is considered to have a high commitment level if the mean score is above 2.5 and below 3.5 then it is considered to have a moderate level of commitment. If the mean score ranges from above 1 to below 2.5 then there is said to be a low level of commitment. And the commitment level such as affective, continuance and normative have examined separately in order to carry out the comparative analysis

Affective Commitment

Affective commitment develops mainly from positive work experiences, such as job satisfaction and organizational fairness, and is associated with desirable outcomes, such as higher levels of organizational citizenship behaviors and lower levels of withdrawal behaviors like absenteeism and tardiness. The table 4.3.7 shows the mean score values of the affective commitment scales.

Table 4.3.7

S.No

1 2 3 4 5 6 7 8

Statements Strong Sense of belonging Part of family Discussion outside Personal Meaning Organisation Problems as own Easy attachment with other organisation Easy attachment with other organisation Spending rest of the career

MSV (R)

MSV (A)

4.16 4.22 3.95 3.92 3.86 3.71 3.54 3.75

4.51 4.34 4.62 3.57 4.48 4.07 4.59 3.95

From the Table 4.3.7, it can be interpreted that majority of the respondents of (R) have a strong sense of belonging towards their organization and feel like a part of family in their organization and they enjoy discussing about their organization outside it. Majority of the respondents at (A) tend to discuss about the organization outside it and feel that they cannot be easily attached to another organization and tend to possess a strong sense of belonging towards the organization Affective Commitment Chart 4.3.7 5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Spending rest of the career

Easy attachment with other organisation

MSV(A) Easy attachment with other organisation

Organisation Problems as own

Personal Meaning

Discussion outside

Part of family

Strong Sense of belonging

MSV(R)

Continuance Commitment Continuance commitment represents a need to stay with the organization and is not related to positive organizational or individual outcomes. Table 4.3.8 S.No

Statements

MSV (R)

MSV (A)

1 2

Few options to leave Disruption in life

3.26 3.14

3.30 3.45

3 4

Costly to leave Afraid to quit job without another one lined up

3.21 3.21

3.45 3.61

5 6 7 8

Matter of necessity Scarcity of available alternatives Personal Sacrifice Overall benefits

3.42 3.02 3.35 3.05

3.84 3.09 3.51 4.07

From the Table 4.3.9, it can be interpreted that majority of the respondents at (R) as well as at (A) feel that they stay with the organization as a matter of necessity.

Continuance Commitment

Chart 4.3.8 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0

Overall benefits

Personal Sacrifice

Scarcity of available alternatives

MSV (A)

Matter of necessity

Afraid to quit job without another one…

Costly to leave

Disruption in life

Few options to leave

MSV (R)

Normative Commitment Normative commitment

is argued to

develop from organizational

commitment norms that develop pre-entry (through familial and cultural socialization) or post-entry (through organizational socialization) and appears to be predictive of positive outcomes, not as strongly as affective commitment Table 4.3.9 S.No

Statements

MSV(R)

1 2 3 4 5 6 7 8

Move company to company Loyal to his/her organisation Jumping from organisation to organisation Sense of moral obligation to remain Better job elsewhere Value of remaining loyal People staying in one organisation Company man or company women

MSV(A)

3.45 3.99 3.51 3.47 3.28 3.63 3.52 3.54

4.15 4.68 3.72 4.17 3.96 4.26 3.97 4.39

From the Table 4.3.9, it is evident that majority of the respondents at (R) and (A) believe that a person must always be loyal to his/her organization Normative Commitment Chart 4.3.9

5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0

Company man or company women

People staying in one organisation

Value of remaining loyal

Better job elsewhere

Sense of moral obligation to remain

Jumping from organisation to…

Loyal to his/her organisation

Move company to company

MSV(R) MSV(A)

4.3 Hypothesis Testing Setting up and testing hypotheses is an essential part of statistical inference. In order to formulate such a test, usually some theory has been put forward, either because it is believed to be true or because it is to be used as a basis for argument, but has not been proved. In each problem considered, the question of interest is simplified into two competing hypotheses between which we have a choice; the null hypothesis, denoted H0, against the alternative hypothesis, denoted H1. These two competing hypotheses are not however treated on an equal basis: special consideration is given to the null hypothesis.

• H0= There is no significant association between Experience and Affective Commitment.

Hypothesis 1 • H1= There is significant association between Experience and Affective Commitment

•H0 = There is no significant association between Marital Status and Continuance Commitment

Hypothesis 2

Hypothesis 3

•H1 =There is significant association between Marital Status and Continuance Commitment

•H0 = There is no significant association between Income and Normative Commitment •H1= There is significant association between Income and Normative Commitment.

Figure 4.3 Hypotheses of the study

In order to test the hypotheses of the study, Chi-Square test was carried out. The chisquare test provides a method for testing the association between the Experience, Marital Status and Income and the affective, continuance and normative commitment respectively. The null hypothesis H0 assumes that there is no association between the variables (in other words, one variable does not vary according to the other variable), while the alternative hypothesis Ha claims that some association does exist. The outcome of a hypothesis test is "Reject H0 in favor of H1" or "Do not reject H0".

Hypothesis 1 H0= There is no significant association between Experience and Affective Commitment. H1= There is significant association between Experience and Affective Commitment

Chi-Square Test between Experience and Affective Commitment

Pearson Chi-Square

P Value

df

Asymp Sig (2sided)

(R)

20.708

10

.023

(A)

1.087

80

.018

The researchers also focusing on employee work experiences suggest that employees whose work experiences are consistent with their expectations and satisfy their basic needs tend to develop stronger affective attachment to the organization (Dunham et al., 1994; Hackett et al., 1994; Meyer et al., 1993). Based on the table, the results of Chi-square test can be concluded that null hypothesis is rejected at 5% significance level, which means there is a significant association between Experience and Affective Commitment and it can be inferred that the experience of the respondents influence on the affective commitment. Hypothesis 2 H0= There is no significant association between Marital Status and Continuance Commitment H1= There is significant association between Marital Status and Continuance Commitment. Marital status has been shown to relate to commitment, with married employees show more Commitment (Mathieu and Zajac, 1990).

Chi-Square Test between Marital Status and Continuance Commitment Pearson Chi-Square

P Value

df

Asymp Sig (2sided)

(R)

35.203

17

.006

(A)

35.487

23

.046

Based on the above table , the results of Chi-square test can be concluded that null hypothesis is rejected, which means that there is a significant association between Educational Qualification and Continuance Commitment and it can be inferred that the educational qualification of the respondents influence on the Continuance commitment. However, it is suggested that the reason for this is because married employees will typically have greater financial and family responsibilities, which increases their need to remain with the organisation. Hypothesis 3

H0= There is no significant association between Income and Normative Commitment H1= There is no significant association between Income and Normative Commitment.

Chi-Square Test between Income and Normative Commitment(R)

Pearson Chi-Square

P Value

df

Asymp Sig (2sided)

(R)

93.661

64

.009

(A)

1.008

76

.030

The studies done by Wan(2007), Martzler and Renzl (2007), Davies et al., (2001), Oshagbemi(2000), Okpara (2004) concluded that remuneration is an important aspect if an organisation wants to see their “engine” performing their best.In this study there exists a positive and significant association between Income

and Normative commitment. The impact of income of employees on normative commitment has been found to be positive and significant.

4.4 Relationship among Organizational Commitment Scales The combined influence of each of the three commitment components are made and constructed as separate profiles of combinations like Affective/Normative, Affective/Continuance and Continuance/Normative. The relationship among the three combinations is examined using the Correlation Analysis. Karl Pearson Correlation technique was adopted to reveal the relationship. Pearson’s correlation coefficient is a statistical measure of the strength of a linear relationship between paired data. A strong, or high, correlation means that two or more variables have a strong relationship with each other while a weak, or low, correlation means that the variables are hardly related. The scale model suggested by Davies (1971) used to describe the relationship between the independent variables and the dependent variable, are as shown below: 1. 0.7 and above – very strong relationship, 2. 0.50 to 0.69 – strong relationship, 3. 0.30 to 0.49 – moderate relationship, 4. 0.10 to 0.29 – low relationships and 5. 0.01 to 0.09 – very low relationship.

In order to determine whether there are significant relationships among the three commitment scales namely, Affective, Continuance and Normative, Pearson Correlation Coefficient analysis which was carried out is projected in the forthcoming table.

Correlation among the Organizational Commitment Scales (A)

Affective Commitment

Affective

Continuance

Normative

Commitment

Commitment

Commitment

.519**

.252*

.000

.012

100

100

100

.519**

1

.401**

Pearson Correlation

1

Sig. (2-tailed) N Continuance Commitment

Normative Commitment

Pearson Correlation Sig. (2-tailed)

.000

.000

N

100

100

100

Pearson Correlation

.252*

.401**

1

Sig. (2-tailed)

.012

.000

N

100

100

100

**. Correlation is significant at the 0.01 level (2-tailed). *. Correlation is significant at the 0.05 level (2-tailed).

Correlation among the Organizational Commitment Scales (R)

AffectiveCommitment

Pearson Correlation

Affective

Continuance

Normative

Commitment

Commitment

Commitment

.356**

.537**

.000

.000

100

100

100

**

1

1

Sig. (2-tailed) N ContinuanceCommitment

NormativeCommitment

Pearson Correlation

.356

Sig. (2-tailed)

.000

N

100

Pearson Correlation

**

.537

.000 100

100

**

1

.600

Sig. (2-tailed)

.000

.000

N

100

100

**. Correlation is significant at the 0.01 level (2-tailed). *. Correlation is significant at the 0.05 level (2-tailed).

**

.600

100

Relationship among different Commitment Scales (A)

Affective/Continuance .519

Affective/Normative .252

Normative/Continuance .401

Relationship among different Commitment Scales (R)

Affective/Continuance .356

Affective/Normative .537

Normative/Continuance .600

The researcher also examined correlations for all the scales within the OCQ. In the correlation Table(A), The data reveals that there is a significant correlation between Affective and Continuance(.519) , between Affective and Normative(.252) and Continuance and Normative(.401). In the correlation Table(R) ,The data reveals that there is a significant correlation between Affective and Continuance(.356) ,between Affective and Normative(.537) and Continuance and Normative(.600). It is found that three forms of commitment are related yet distinguishable from one another. But the chance of overlapping of form of commitment cannot be denied. The nature of these commitment components might differ, but one way or the other, they have a similar impact on employees’ decision to continue or discontinue their employment with the organisation(Caykoalu, Egri and Havlovic, 2007) It is made apparent through the correlation analysis that different forms of commitment is prevailing among the corporate respondents. The scores of Affective/Normative with Continuance/Normative are closely followed by Affective/Normative. The respondents with normative commitment when retained in the organisation will try to convert as affectively committed employees. This group of respondents with Normative commitment may slip into the quadrant of

Continuance commitment and may contribute to the increase in the percentage of employee turnover.

Affective

Continuance

Normative

Figure 4.4 Relationships between Commitment Scales

The Affective/Normative employees remain in the organisation and work closely towards the goals attainment unlike Normative/Continuance committed employees. The significant relationship between Normative and Continuance commitment indicate that the respondents if not given adequate grounds to reciprocate will try to be employees with Continuance commitment.

The Affective/Continuance nature of respondents if given right opportunities and a favourable work environment would stay in the current organisation. In future research, it may be possible to identify Commitment profiles that differentiate employees who are likely to remain with the organisation and contribute positively to its effectiveness from those who remain but contribute little.

Even though the employees are attached emotionally with the organisation if the opportunities available in the industry broaden, there are chances they will choose to leave the organisation. In order to retain the affectively committed employees for a longer time the organisation need to concentrate on issues of concern to employees like supervisory feedback, challenging job, participatory management.

CHAPTER V

Summary

CHAPTER V SUMMARY

This chapter presents the discussions of the results and the findings based on the analysis conducted throughout the entire study This chapter is broadly classified into 5.1 Recapitulation of the Study 5.2 Findings 5.2.1 Comparative Analysis 5.2.2 Commitment Levels 5.2.3 Organizational Commitment Profile 5.2.4 Research Framework outcomes 5.3 Suggestions 5.4 Conclusion 5.1 Recapitulation of the study The main aim of this study is to investigate the Organizational Commitment level of the employees at Roots MultiClean Ltd and A1 Chips and Export India Pvt Ltd .This study attempts to answer the following objectives: i.

To determine affective, continuance and normative commitment level of the employees.

ii.

Relationship between demographic factors and the affective, continuance and normative commitment level of the employees.

iii.

To undergo a comparative study of the commitment in these two companies.

iv.

To develop an Organizational Commitment Profile of the employees.

5.2 Findings The following table interprets the major findings of the study which includes factors such as Demographic Variables, Affective Commitment, Continuance Commitment and Normative Commitment. Table 5.2 (R) FACTORS

INTERPRETATION

DEMOGRAPHIC VARIABLES Age

45% age group of 25-30.

Gender

60% Male

Educational Qualification

51% PG category.

Marital Status

52% single.

Years of Experience

39% between 0-1 year experience

Income

30% income group of 15,000 to 20,000.

AFFECTIVE COMMITMENT

fACTORS

MSV

Strong Sense of belonging

4.16

Part of family

4.22

Discussion outside

3.95

Personal Meaning

3.92

Organisation Problems as own

3.86

Easy

attachment

with

other

3.71

organisation Emotional Attachment

3.54

Spending rest of the career

3.75

CONTINUANCE COMMITMENT Few options to leave

3.26

Disruption in life

3.14

Costly to leave

3.21

Afraid to quit job without another

3.21

one lined up Matter of necessity

3.42

Scarcity of available alternatives

3.02

Personal Sacrifice

3.35

Overall benefits

3.05 NORMATIVE COMMITMENT

Move from company to company

3.45

Loyal to his/her organisation

3.99

Jumping from organisation to

3.51

organisation Sense of moral obligation to remain Better job elsewhere

3.47

Value of remaining loyal

3.63

People staying in one organisation

3.52

Company man or company women

3.54

3.28

Table 5.2(A)

FACTORS

INTERPRETATION

DEMOGRAPHIC VARIABLES Age

51% - age group 20-25.

Gender

61% -Female

Marital Status

54% -married.

Experience

30% -2-4 years experience

Educational Qualification

44% have completed 10th standard

Income

58% -income group of 5000-10000 AFFECTIVE COMMITMENT

Strong Sense of belonging

4.51

Part of family

4.34

Discussion outside

4.62

Personal Meaning

3.57

Organisation Problems as own

4.48

Easy

4.07

attachment

with

other

organisation Emotional Attachment

4.59

Spending rest of the career

3.95

CONTINUANCE COMMITMENT Few options to leave

3.30

Disruption in life

3.45

Costly to leave

3.45

Afraid to quit job without another

3.61

one lined up Matter of necessity

3.84

Scarcity of available alternatives

3.09

Personal Sacrifice

3.51

Overall benefits

4.07

NORMATIVE COMMITMENT Move from company to company

4.15

Loyal to his/her organisation

4.64

Jumping from organisation to

3.72

organisation Sense of moral obligation to remain

4.17

Better job elsewhere

3.96

Value of remaining loyal

4.26

People staying in one organisation

3.97

Company man or company women

4.39

5.2.1 Comparative Analysis

In order to satisfy the secondary objective of comparing the organizational commitment dimensions at two different organizations in the manufacturing sector, a comparative study has been undergone to find the various differences and similarities which prevail among the two companies.

The data collected from (R) and (A) is subjected to a comparison which can pinpoint the commitment level which is lagging and leading. The comparison is represented pictorially for ease of understanding. The pictorial representation projects the three major statements which impacts the three commitment level namely Affective, Continuance and Normative. It is compared simultaneously to determine which form of commitment is prevailing among the employees and the factors that boost the commitment level of the employees. The comparison made between two companies is projected below.

(R)

(A)

Personal Meaning

Affective Commitment (R)

Strong Sense of Belonging

Discussion outside

Affective Commitment (A)

Strong Sense of Belonging

Feeling like part of the family

Scarcity of available alternatives Continuance Commitment (R)

Afarid of quitting without another job lined up Belonging

Overall benefits Continuance Commitment (A)

Loyal to his/her organization

Sense of moral obligation to remain Value of remaining loyal Company man or Company Women

Personal Sacrifice

Matter of necessity

Too few options to leave

Normative Commitment (R)

Organization’s problem as own

Normative Commitment (R)

Value of remaining loyal

People staying in one organization

The above illustration shows a comparative figure of the various organizational commitment dimensions in these two organizations. The affective commitment factors such as ‘I feel a strong sense of belonging to this organization’, ‘This organization has a great deal of personal meaning to me’ and ‘I feel like a part of family in this organization’ has a major impact on commitment level and have been agreed by the respondents of (R) whereas in (A), The affective commitment factors such as ‘I feel a strong sense of belonging to this organization’, ’I enjoy discussing about my organization with people outside it’ and ‘I really feel as if this organization’s problems are my own’ has a major impact on commitment level and have also been agreed by the respondents. The Continuance commitment factors such as “One of the few serious consequences of leaving this organization would be the scarcity of available alternative”, ”I am afraid of what might happen if quit my job without having another one lined up’ and ‘I feel that too few options to consider leaving this organization’ have a strong impact on the commitment levels of the respondents at (R),where as the factors differ with(A) where, factors such as ‘One of the major reasons I continue to work for this organization is that another organization may not match the overall benefits I have here’, It would be too hard for me to leave this organization right now, even if I wanted to as it would require considerable personal sacrifice’ and ‘Right now, staying with this organization is a matter of necessity’ greatly influence the commitment level of the respondents and they have agreed to the same.

The normative commitment level of the respondents at (R) are found to be the influenced by the acceptance of the following statements,’ One of the major reasons I continue to work in this organization is that I believe that loyalty is important and therefore feel a sense of moral obligation to remain’, ’I was taught to believe in the value of remaining loyal to this organization’ and ‘I think that to be a ‘company man’ or ‘company women’ is sensible. Whereas at (A) the factors such as ‘I believe that a person must always be loyal to his/her organization’, ’I was taught

to believe in the value of remaining loyal to this organization’ and ‘Things were better when people stayed in one organization for most of their time in their career’ has a greater impact on their commitment level. It is found that the statement ‘I feel a strong sense of belonging to this organization’ has a great impact on the Affective commitment level when compared to (A) as well as (R). And there seems to be no statements of impact found to be similar between (A) and (R).The Normative Commitment statement, ‘I was taught to believe in the value of remaining loyal to the organization’, found to have similar influence on the commitment levels at both (A) and (R). 5.2.2 Organizational Commitment Level (R) The following figure depicts the Commitment Level among the three dimensions namely Affective Commitment, Continuance Commitment and Normative Commitment.

Figure 5.2.2 Organizational Commitment Level (R)

The overall mean score of 3.56 in figure indicates that the respondents are moderately committed to their organisation. A high level of organizational commitment is characterized by a strong acceptance of the organization’s values and willingness to exert efforts to remain with the organisation (Reichers, 1985). Miller (2003, p 73) states that “high organizational commitment means identifying with

one’s employing organisation”. The “will to stay” suggests that the behavioral tendencies at this level relate closely with affective dimension of commitment, where individuals stay because they want to. However, the respondents seem to be more committed to the organisation in terms of the affective(3.88) and normative (3.55) dimensions than the continuance(3.23) dimension. 5.2.2 Organizational Commitment Level (A) The following figure depicts the Commitment Level among the three dimensions namely Affective Commitment, Continuance Commitment and Normative Commitment and the overall commitment. 4.5 4

4.26

3.5

4.16

4

3.54

3 2.5 2 1.5 1 0.5 0

Affective Commitment

Continuance Commitment

Normative Commitment

Overall

Figure 5.2.2Organizational Commitment Level (A)

The overall mean score of 4.00 in figure indicates that the respondents are highly committed to their organisation. A high level of organizational commitment is characterized by a strong acceptance of the organization’s values and willingness to exert efforts to remain with the organisation (Reichers, 1985). Miller (2003, p 73) states that “high organizational commitment means identifying with one’s employing organisation”. The “will to stay” suggests that the behavioral tendencies at this level relate closely with affective dimension of commitment, where individuals stay because they want to.

It is also evident that the respondents seem to be more committed to the organisation in terms of the affective (4.26) and normative (4.16) dimensions than the continuance (3.54) dimension. 5.2.3 Organizational Commitment Profile of the Employees (R) The following figure projects the Demographic details across the Organizational Commitment Level of the respondents at Roots MultiClean India Ltd. 45 40 35 30 25 20 15

High

10

Medium

5

Low

Age

Gender Marital Status

2-4years

1-2years

< 1 year

PG

UG

20,000-25,000

15,000-20,000

10,000-15,000

Unmarried

Married

Female

Male

25-30

20-25

0

Income Educational Qualification Experience

Figure 5.2.3 Organizational Commitment Profile of the Employees (R)

The organizational commitment level is found to be high for the respondents who belong to the age category of 25-30, when compared to the other age groups. The male respondents are found to be more committed than the female respondents. It is also found that large amount of married respondents are more committed than the unmarried respondents. There is more number of respondents who seem to have high commitment whose income is between 15,000 to 20,000.The respondents who have completed their post-graduation are found to be highly commitment than the other education groups. The respondents in the category of less than one year of experience tend perceive a high level of commitment towards the organisation.

5.2.3 Organizational Commitment Profile of the Employees (A) The following figure projects the Demographic details across the Organizational Commitment Level of the respondents at A1 Chips and Export India Pvt Ltd.

60 High

50 40

Medium

30

Low

20 10

Age

Gender

Marital Status

Income

Education Qualification

2-4 years

< 1 year

12th

10th

UG

10,000-15,000

5000-10,000

Unmarried

Married

Female

Male

Above 40

35-40

30-35

20-25

0

Experience

Figure 5.2.3 Organizational Commitment Profile of the Employees (A)

The organizational commitment level is found to be high for the respondents who belong to the age category of 20-25, when compared to the other age groups. The female respondents are found to be more committed than the male respondents. It is also found that large amount of married respondents are more committed than the unmarried respondents. There is more number of respondents who seem to have high commitment whose income is between 5000-10,000.The respondents who have completed their 10th standard are found to be highly commitment than the other education groups. The respondents in the category 2-4 years of experience tend perceive a high level of commitment towards the organisation.

5.2.4 Research Framework Outcome In connection to the research framework projected in chapter 2, the outcome of the same is discussed below. Demographic factors such as Experience, Income and Marital status were chosen to investigate the association with the different commitment scales. The experience of the respondents was examined for association with the affective commitment, and the results showed a significant association by rejecting the null hypothesis framed. The marital status of the respondents was examined for association with the Continuance Commitment. The results showed a positive relationship between marital status and Continuance Commitment. The Income of the respondents was examined for association with the Normative Commitment. The results showed a significant relationship between Income and Normative Commitment.

The Affective, Continuance and Normative Commitment which is influenced by the Experience, Marital status and Income respectively are found to be correlated with each other. The results of correlation analysis depicted that there exists a positive

correlation

between

the

three

combinations

made

namely

Affective/Normative, Affective/Continuance and Continuance/Normative. It is also evident from the study that the respondents perceive a combination of commitment at times.

Experience of the respondents influences the affective commitment and Marital status of the respondents influences the continuance commitment and Income of the respondents influences the normative commitment and there exists positive

relationship

between

the

three

combinations

made

namely

Affective/Normative, Affective/Continuance and Continuance/Normative which in turn contribute to the overall Organizational Commitment.

5.3 SUGGESTIONS High employee commitment is the dream of all organizations. However, the results obtained from the study shows that there is significant relationship between the experience, Marital Status, Income of the respondents and organizational commitment. For an organization to be successful, its managers should focus on increasing the employees’ job satisfaction in factors such as the work itself, benefit programs, rewards, work conditions, and promotions. These can influence the way a person would feel and perceive about their jobs. Indeed, managers may also apply job rotation so each employee will have an opportunity to perform different tasks using various skills and talents. By using this method, it may be able to further increase the interests the employees would have in their job.

Furthermore, managers might also decide to make use of a rewarding system to recognize those employees who perform their job well. Indeed, one would feel highly satisfied when he or she obtains a reward for their hard work and outstanding performance. Rewards can be of different forms, such as a higher wage, improvement of the work environment (a safer and better facilities for the workers), and assignment of suitable and challenging works to individuals as according their abilities and personalities.

Moreover, managers should motivate employees to be more helpful, considerate, friendly and good-natured to their co-workers and supervisors, because this would increase the employees’ job satisfaction and may motivate the urge to help out other co-workers. Indeed, providing sufficient opportunity for promotion to employees would significantly increase job satisfaction because promotions reflect valued signals about a person’s self-worth.

The organization must increase the cooperation among employee in order to increase the relationship among the employee in every department. Manager can conduct the outdoor activities or team building activities and must be participate by all employees in the organizations. Align with that, the relationship between employer and employees also can be improved. The finding reveal the essential of creating the give and take environment whereby to maintain a good relationship,

both parties must willing to complement, appreciate and reciprocate with each other. Practically, if the employer wants the employees to be committed to the organization, the employer should give the full attention and emphasize the quality of work environment among their employees.

Suggestive Model

Positive Feeling, Emotional Attachment, Involvement, Membership

Affective

Positive Extrinsic Rewards

Continuance

Sense of duty, obligation and loyalty

Normative

Organizational Commitment

The above model depicts that Positive Feeling, Emotional Attachment, Involvement and membership are drivers of affective commitment and Positive Extrinsic Rewards is a driver of continuance commitment and Sense of duty, Obligation and Loyalty are drivers of Normative Commitment and also there exists a relationship

between

various

commitment

scales

combination

such

as

Affective/Continuance, Affective/Normative and Continuance/Normative which finally contributes to the Organizational Commitment.

5.4 CONCLUSION The study is conducted to analyze the level of the employee’s organizational commitment in Roots MultiClean Ltd and A1 Chips and Export (India) Pvt Ltd .It has been found out that the employees of Roots MultiClean Ltd show a high level of affective commitment and normative commitment. It has also been found out that there is a moderate level of continuance commitment among the employees. Among the employees at A1 Chips and Export (India) Pvt Ltd it has been found out that the employees show a high level of affective commitment Continuance Commitment and Normative Commitment

In addition, the finding of this study also can help the organization in planning and developing the strategies to maintain or enhance the organizational commitment of the employees. It may become one of the tool and guidance for further actions. This is important to keep the survival of the organization in the global era whereby nowadays it is not easy to make employees to feel obliged and become committed to the organization. So, new strategies must be developed from time to time and it depends on the result of this kind of study.

Employees with strong organizational commitment continue employment with the organization because they want to do so. In order to achieve organizational commitment, employers need to help their employees’ value involvement in the organization. The more the employees’ value being part of the organization, the more likely they are to stay with the organization.

Organizational Commitment is highly valuable. This is because a highly committed employee will identify with the goals and values of the organization, has a stronger desire to belong to the organization and is willing to display greater organizational citizenship behavior. Highly committed employees wish to remain associated with the organisation and advance organizational goals, and are therefore less likely to leave. A committed employee will be more eager about his job and more motivated to dedicate a lot of time and effort to accomplish the tasks required.

Bibliography

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Goldsmith

(2008,January),How

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commitment.

Annexure

ANNEXURE SECTION – A DEMOGRAPHICS Name of the Organisation Department Email Id

Please (



: : :

) the appropriate response

Gender

Male Female

2.

Age(in yrs)

20-25 25-30 30-35 35-40 40 and above

3.

Marital Status

Married Not Married

4

Highest Educational Qualification

UG PG 10th 12th

1.

Any other, Specify _____________________________

6.

Income (per month in Rs.)

Below 5000 5000 - 10,000 10,000 - 15,000 15,000 - 20,000 20,000 - 25,000 Above 25,000

8.

Tenure in the current organisation

Less than 1 year 1 -2 yrs 2 – 4 yrs 4 yrs -6 yrs 6 yrs – 8yrs Above 8 yrs

SECTION - B ORGANISATIONAL COMMITMENT QUESTIONNAIRE The following statements concern how you feel about the department where you work. Please indicate the extent of your agreement or disagreement with each statement by circling a number from 1 to 5. Please do not put your name on this questionnaire. Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

1

2

3

4

5

S.No

Statements

1.

I feel a strong sense of belonging to this organization.

2.

I feel like part of the family in this organization.

3.

I enjoy discussing about my organization with people outside it

4.

This organization has a great deal of personal meaning for me.

5.

I really feel as if this organization’s problems are my own.

6.

I think that I couldn’t easily become as attached to another organization as I am to this one.

7.

I feel emotionally attached to this organization.

8.

I would be very happy to spend the rest of my career with this organization. I feel that too few options to consider leaving this organization.

9 10.

11.

Too much in my life would be disrupted if I leave this organization now. It would be costly for me to leave this organization now.

1

2

3

4

5

12.

13. 14.

15.

16.

17. 18.

I am afraid of what might happen if I quit my job without having another one lined up. Right now, staying with this organization is a matter of necessity. One of the few serious consequences of leaving this organization would be the scarcity of available alternatives. It would be very hard for me to leave this organization right now, even if I wanted to as it would require considerable personal sacrifice. One of the major reasons I continue to work for this organization is that another organization may not match the overall benefits I have here. I think that people these days move from company to company too often. I believe that a person must always be loyal to his or her organization.

19.

Jumping from organization to organization seem unethical to me.

20.

One of the major reasons I continue to work in this organization is that I believe that loyalty is important and therefore feel a sense of moral obligation to remain.

21.

If I got another offer for a better job elsewhere I would feel it was not right to leave this organization.

22.

I was taught to believe in the value of remaining loyal to one organization.

23.

Things were better when people stayed in one organization for most of their time in their careers.

24.

I think that to be a ‘company man’ or ‘company woman’ is sensible.

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