employees’ perception on organisational commitment...

89
149 CHAPTER VI EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT AND RETENTION DECISIONS ANALYSIS AND INTERPRETATION- PART II 6.1 INTRODUCTION According to Peter F. Ducker’s theories, Organizational Commitment is highly valuable. His studies have highlighted the impact of commitment 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 and is willing to display greater organizational citizenship behavior i.e., a willingness to go over and beyond his required job duties. And if human resources (employees) are said to be an organization‘s greatest assets, then committed human resources should be regarded as an organization’s competitive advantage. Earlier researchers suggest that the failure of organizational commitments can generally be attributed to negative employee attitudes towards work that in turn may impact employees’ decisions to stay or search for better organizations. Based on the conceptual understanding in this chapter of the study the researcher aims to draw an introspective analysis on employees’ commitment towards their organizations and its impact on their intention to stay or leave i.e., search for better job opportunities.

Upload: others

Post on 27-Jul-2020

0 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

149

CHAPTER VI

EMPLOYEES’ PERCEPTION ON ORGANISATIONAL

COMMITMENT AND RETENTION DECISIONS ANALYSIS AND INTERPRETATION- PART II

6.1 INTRODUCTION

According to Peter F. Ducker’s theories, Organizational Commitment

is highly valuable. His studies have highlighted the impact of commitment

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 and is

willing to display greater organizational citizenship behavior i.e., a

willingness to go over and beyond his required job duties. And if human

resources (employees) are said to be an organization‘s greatest assets, then

committed human resources should be regarded as an organization’s

competitive advantage. Earlier researchers suggest that the failure of

organizational commitments can generally be attributed to negative

employee attitudes towards work that in turn may impact employees’

decisions to stay or search for better organizations. Based on the conceptual

understanding in this chapter of the study the researcher aims to draw an

introspective analysis on employees’ commitment towards their

organizations and its impact on their intention to stay or leave i.e., search for

better job opportunities.

Page 2: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

150

6.2 ORGANIZATION COMMITMENT

Fostering employee commitment can have a great impact on

decreasing turnover rates. Research shows that commitment has a positive

effect on productivity, turnover and employees willingness to help co-

workers. In fact, increased employee commitment has been shown to

improve team performance and productivity and decrease absenteeism,

turnover, and intention to quit. The sample employees levels of organization

commitments are depicted in the following table.

TABLE: 6.1

ORGANIZATIONAL COMMITMENT

Variables Public Sector Private Sector

Sum Mean Rank Sum Mean Rank

I feel a strong sense of belonging to this

organization 691 3.64 2 917 3.79 2

I could just as well be working for a

different organization if the type of work

was similar

650 3.42 6 889 3.67 5

Often I find it difficult to agree with this

organization’s policies on important

matters relating to its employees

614 3.23 9 832 3.44 9

This organization really inspires the very

best in me in the way of job performance 648 3.41 8 880 3.64 7

I find that my values and this

organization’s values are very similar 675 3.55 5 910 3.76 4

There is little to be gained by sticking with

this organization indefinitely 650 3.42 6 889 3.67 5

I am willing to put in a great deal more

effort than normally expected to help this

organization be successful

692 3.64 2 917 3.79 2

I am proud to tell others that I am part of

this organization 758 3.99 1 974 4.02 1

I really care about the fate of this

organization 688 3.62 4 846 3.50 8

Source: Primary Data

Page 3: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

151

The table 6.1 shows organizational commitment of the respondents.

Both public and private sector employees express their pride that they are

part of the organization. This feeling has been ranked first with an average

mean of 3.99 and 4.02 respectively. Similarly the sense of a strong feel of

belongingness to the organization and willingness to put great deal than

expected for the success of the organization has been ranked second both in

the public and private personnel with an average mean of 3.64 and 3.79

respectively. In the public sector, finding the best in the performance of an

employee has been ranked eight while in the private sector, caring for the

fate of the organization has been ranked eight.

It has been inferred from the above table that in both the sectors, there

is least difficulty in agreeing with policies of the organizations, because, the

policies are framed in such a way that the employees can follow them

without much ado.

Public sector employees really care for the fate of the organization

than the private sector personnel. However it has been observed that the

private sector employees are more concerned with individual development

and career up gradation than expressing high degree for the smooth

functioning of the organization.

Page 4: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

152

The following hypothesis tends to measure the association and

disassociation that exist in organizational commitment of employees both in

public and private sector organizations.

H3: There exist no differences in the organization commitment practices

adhered by the employees of public and private sector institutions.

TABLE: 6.2

PAIRED t TEST

ORGANIZATION COMMITMENT OF

PUBLIC AND PRIVATE SECTOR EMPLOYEES

Pairs Mean SD SE Correlation

Pair I Public sector 3.546 0.215 0.071

.821 Private sector 3.697 0.171 0.057

The measure of correlation between the organizational commitment of

public and private sector employees are observed to be positively inter-

related and there exist no differences in the organization commitment

practices adhered by the employees of public and private sector institutions.

It is clearly understood that employees are committed to the

organizations where they work irrespective of the nature of the concern.

Organizational commitment consists of company policies and objectives and

it is obvious that the employees are committed to those organizational

policies and objectives in both the sectors.

Page 5: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

153

TABLE: 6.3

PAIRED SAMPLES TEST

ORGANIZATION COMMITMENT OF

PUBLIC AND PRIVATE SECTOR EMPLOYEES

Pairs Mean SD SE t

value Sig

Pair I

Public sector

and Private

sector

-0.151 0.122 0.040 -3.688 .006

Level of Significance 5 per cent

The calculated paired ‘t’ test values are observed to be within the

limits of five per cent level of significance, hence the hypothesis framed

stands accepted and it is concluded that there exist no differences in the

organization commitment practices adhered by the employees of public and

private sector institutions.

6.3 INTENTION TO STAY

Individuals’ preference to stay in a company clearly shows their care

about their career priorities (life stage needs), health, location, family, dual-

career, and other personal needs. The following table depicts employees’

intention to either stay or leave the present organizations.

Page 6: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

154

TABLE: 6.4

TURNOVER INTENTION

Variables Public Sector Private Sector

Sum Mean Rank Sum Mean Rank

I plan to work at my present job for as

long as possible 712 3.75 1 884 3.65 3

I will most certainly look for a new job in

the near future 641 3.37 3 823 3.40 4

I plan to stay in this job for at least two to

three years 622 3.27 4 892 3.69 2

I would hate to quit this job 692 3.64 2 917 3.80 1

Source: Primary Data

From the above table, it is inferred that the turnover intentions of the

employees both in public and private sectors. Plan to work in the present job

for as long as possible has first rank with an average mean of 3.75. Hate to

quit the job has second rank with an average mean of 3.64. Plan to stay in

the job for at least two to three years has fourth rank with an average mean

3.27. In the private sector, hate to quit the job has first rank with an average

mean 3.80. Looking for a new job in the near future has fourth rank with an

average mean 3.40.

It is inferred that in public sector, the employees want to work as long

as possible because of job security and monetary benefits they receive.

Whereas in the private sectors, employees enjoy working because of the

colleagues’ supports, career upliftment and opportunities to prove their

capability by undertaking challenging and time based tasks.

Page 7: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

155

The following hypothesis tends to measure the association and

disassociation that exist between public and private sector employees’

intention to stay in the present organization of work.

H4: There exist no differences among the public and private sector

employees’ intention either to stay or leave the job.

TABLE: 6.5

PAIRED t TEST

PUBLIC AND PRIVATE SECTOR EMPLOYEES’

INTENTION TO STAY OR LEAVE

Pairs Mean SD SE Correlation

Pair I Public sector 3.507 0.224 0.112

.393 Private sector 3.635 0.169 0.084

The measures of correlation have established positive but very

association in public and private sector employees’ intention either to stay or

leave the job.

Page 8: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

156

TABLE: 6.6

PAIRED SAMPLES TEST

PUBLIC AND PRIVATE SECTOR EMPLOYEES’

INTENTION TO STAY OR LEAVE

Pairs Mean SD SE t

value Sig

Pair I

Public sector

and Private

sector

-0.127 0.222 0.111 -1.149 .334

Level of Significance: 5 per cent

The calculated paired ‘t’ test values are observed to be above the

limits of five per cent level of significance, hence the hypothesis framed

stands rejected and it is concluded that there exist differences among the

public and private sector employees’ intention either to stay or leave the job.

Public sector employees want to stay in the same job as long as

possible for them than the private sector employees. This is due to the career

development and monetary benefits they receive than the private sector

employees who work harder even to receive their regular monthly salary.

6.4 RELATION BETWEEN SOCIO-ECONOMIC STATUS AND

TURNOVER INTENTION

As per Maslow’s hierarchy theory human wants increase as he/she

gets satisfaction in one stage of life cycle. Based on this concept the

following hypothesis is framed and tested.

H5: The socio-economic and job status of an employee significantly

influences their decision either to retain or leave their present job.

Page 9: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

157

TABLE: 6.7(a)

RELATION BETWEEN SOCIO-ECONOMIC STATUS AND

TURNOVER INTENTION (PUBLIC SECTOR)

Socio-economic status Turnover intention

Total Variables Source

Strongly

Agree Agree Moderately Disagree

Strongly

Disagree

Gender

Male 1(0.50) 3(1.60) 33(17.40) 79(41.60) 10(5.30) 126(66.30)

Female 0(0.00) 6(3.20) 21(11.10) 37(19.50) 0(0.00) 64(33.70)

Total 1(0.50) 9(4.70) 54(28.40) 116(61.10) 10(5.30) 190(100)

Age

Under

21 years 0(0.00) 1(0.50) 0(0.00) 2(1.10) 0(0.00) 3(1.60)

21 to 39

years 10(.50) 3(1.60) 24(12.60) 60(31.60) 5(2.60) 93(48.90)

40 to 59

years 0(0.00) 5(2.60) 30(15.80) 54(28.40) 5(2.60) 94(49.50)

Total 1(0.50) 9(4.70) 54(28.40) 116(61.10) 10(5.30) 190(100)

Educational

Qualification

Below

10th

0(0.00) 0(.00) 2(1.10) 0(0.00) 0(0.00) 2(1.10)

H.S.C.

Only 1(0.50) 3(1.60) 6(3.20) 12(6.30) 0(0.00) 22(11.60)

Diploma

Holder 0(0.00) 2(1.10) 10(5.30) 25(13.20) 2(1.10) 39(20.50)

Degree

Holder 0(0.00) 3(1.60) 26(13.70) 45(23.70) 3(1.60) 77(40.50)

PG

Holder 0(0.00) 1(0.50) 10(5.30) 34(17.90) 5(2.60) 50(26.30)

Total 1(0.50) 9(4.70) 54(28.40) 116(61.10) 10(5.30) 190(100)

Length of

Employment

1 to 6

months 0(0.00) 1(0.50) 0(0.00) 2(1.10) 0(0.00) 3(1.60)

6 month

to 1 year 0(0.00) 0(0.00) 3(1.60) 3(1.60) 0(0.00) 6(3.20)

1 to 3

years 0(0.00) 0(0.00) 6(3.20) 11(5.80) 2(1.10) 19(10.00)

3 to 5

years 0(0.00) 1(0.50) 10(5.30) 28(14.70) 1(0.50) 40(21.10)

5 to 10

years 0(0.00) 1(0.50) 17(8.90) 18(9.50) 2(1.10) 38(20.00)

10 to 15

years 1(0.50) 6(3.10) 18(9.50) 54(28.40) 5(2.70) 84(44.20)

Total 1(0.50) 9(4.70) 54(28.40) 116(61.10) 10(5.30) 190(100)

Source: Computed Data

Page 10: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

158

TABLE: 6.7(b)

RELATION BETWEEN SOCIO-ECONOMIC STATUS AND

TURNOVER INTENTION (PUBLIC SECTOR)

Socio-economic status Turnover intention

Total Variables Source

Strongly

Agree Agree

Moderate

ly Disagree

Strongl

y

Disagr

ee

Monthly

Income

Below `.

10000 0(0.00) 0(0.00) 4(2.10) 6(3.20) 2(1.10) 12(6.30)

`.10000 to

`.20000 0(0.00) 1(.50) 10(5.30) 21(11.10) 1(.50) 33(17.40)

`. 20001 to

`. 30000 1(0.50) 5(2.60) 22(11.60) 46(24.20) 2(1.10) 76(40.00)

`. 30001 to

`. 40000 0(0.00) 1(0.50) 14(7.40) 33(17.40) 3(1.60) 51(26.80)

`. 40001 to

`. 50000 0(0.00) 0(0.00) 2(1.10) 5(2.60) 1(.50) 8(4.20)

Above

`. 50000 0(0.00) 2(1.10) 2(1.10) 5(2.60) 1(.50) 10(5.30)

Total 1(0.50) 9(4.70) 54(28.40) 116(61.10) 10(5.30) 190(100)

Management

Level

Top Level

Executive 0(0.00) 2(1.10) 11(5.80) 10(5.30) 3(1.60) 26(13.70)

Middle Level

Management 1(0.50) 3(1.60) 27(14.20) 64(33.70) 5(2.60) 100(52.60)

Low Level

Management 0(0.00) 4(2.10) 16(8.40) 42(22.10) 2(1.10) 64(33.70)

Total 1(0.50) 9(4.70) 54(28.40) 116(61.10) 10(5.30) 190(100)

Type of the

organization

Manufacturing

Industry 0(0.00) 2(1.10) 9(4.70) 21(11.10) 3(1.60) 35(18.40)

Service

Organization 1(0.50) 7(3.70) 45(23.70) 95(50.00) 7(3.70) 155(81.60)

Total 1(0.50) 9(4.70) 54(28.40) 116(61.10) 10(5.30) 190(100)

Size of the

organization

Large Scale 0(0.00) 6(3.20) 39(20.50) 84(44.20) 7(3.70) 136(71.60)

Medium Scale 1(0.50) 2(1.10) 14(7.40) 31(16.30) 3(1.60) 51(26.80)

Small Scale 0(0.00) 1(0.50) 1(0.50) 1(0.50) 0(0.00) 3(1.60)

Total 1(0.50) 9(4.70) 54(28.40) 116(61.10) 10(5.30) 190(100)

Source: Computed Data

Page 11: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

159

TABLE: 6.8

RESULT OF CHI-SQUARE

RELATION BETWEEN SOCIO-ECONOMIC STATUS AND

TURNOVER INTENTION (PUBLIC SECTOR)

Variables

Chi-

square

value

DF Table

value

Contingency

co-efficient Remark

Gender 10.791 4 9.488 .232 Rejected

Age 8.777 8 15.507 .210 Accepted

Educational

Qualification 23.655 16 26.296 .333 Accepted

Length of

Employment 25.579 24 36.415 .344 Accepted

Monthly Income 15.523 20 31.410 .275 Accepted

Management

Level 9.474 8 15.507 .218 Accepted

Type of the

organization 1.323 4 9.488 .083 Accepted

Size of the

organization 8.640 8 15.507 .209 Accepted

Level of Significance: 5 per cent

The calculated chi-square values are lesser than the table values at 5

per cent level of significance. Therefore, the hypothesis framed is accepted.

It has been concluded that the socio-economic and job status of a public

sector employee significantly influences their decision either to retain or

leave their present job.

It has been further inferred that gender of employee does not have any

influence in taking a decision either to stay or leave the job, on the basis of

the educational qualification, monthly income, length of services or size of

organization. It is noted that if a problem comes, it is common for human

being irrespective of gender. In the modern world, both male and female are

working to meet the cost. There is no partiality between men and women in

work place in taking decision.

Page 12: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

160

TABLE: 6.9(a)

RELATION BETWEEN SOCIO-ECONOMIC STATUS AND

TURNOVER INTENTION (PRIVATE SECTOR) Socio-economic status Turnover intention

Total Variables Source

Strongly

Agree Agree Moderately Disagree

Strongly

Disagree

Gender

Male 0(0.00) 9(3.70) 35(14.50) 81(33.50) 16(6.60) 141(58.30)

Female 0(0.00) 5(2.10) 31(12.80) 44(18.20) 21(8.70) 101(41.70)

Total 0(0.00) 14(5.80) 66(27.30) 125(51.70) 37(15.30) 242(100)

Age

Under

21 years 0(0.00) 0(0.00) 3(1.20) 7(2.90) 1(0.40) 11(4.50)

21 to 39

years 0(0.00) 12(5.00) 46(19.00) 94(38.80) 28(11.60) 180(74.40)

40 to 59

years 0(0.00) 1(0.40) 15(6.20) 16(6.60) 7(2.90) 39(16.10)

60 and

More

years

0(0.00) 1(0.40) 2(0.80) 8(3.30) 1(0.40) 12(5.00)

Total 0(0.00) 14(5.80) 66(27.30) 125(51.70) 37(15.30) 242(100)

Educational

Qualification

Below

10th 0(0.00) 0(0.00) 2(0.80) 6(2.50) 0(0.00) 8(3.30)

H.S.C.

Only 0(0.00) 4(1.70) 8(3.30) 19(7.90) 5(2.10) 36(14.90)

Diploma

Holder 0(0.00) 2(0.80) 11(4.50) 26(10.70) 5(2.10) 44(18.20)

Degree

Holder 0(0.00) 3(1.20) 31(12.80) 52(21.50) 18(7.40) 104(43.00)

PG

Holder 0(0.00) 5(2.10) 14(5.80) 22(9.10) 9(3.70) 50(20.70)

Total 0(0.00) 14(5.80) 66(27.30) 125(51.70) 37(15.30) 242(100)

Length of

Employment

1 to 6

months 0(0.00) 0(0.00) 6(2.50) 10(4.10) 1(0.40) 17(7.00)

6 month

to 1 year 0(0.00) 0(0.00) 10(4.10) 17(7.00) 2(0.80) 29(12.00)

1 to 3

years 0(0.00) 6(2.50) 13(5.40) 25(10.30) 6(2.50) 50(20.70)

3 to 5

years 0(0.00) 4(1.70) 10(4.10) 31(12.80) 14(5.80) 59(24.40)

5 to 10

years 0(0.00) 3(1.20) 19(7.90) 24(9.90) 6(2.50) 52(21.50)

10 to 15

years 0(0.00) 1(0.40) 8(3.30) 18(7.40) 8(3.30) 35(14.50)

Total 0(0.00) 14(5.80) 66(27.30) 125(51.70) 37(15.30) 242(100)

Source: Computed Data

Page 13: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

161

TABLE: 6.9(b)

RELATION BETWEEN SOCIO-ECONOMIC STATUS AND TURNOVER INTENTION

(PRIVATE SECTOR)

Socio-economic status Turnover intention

Total Variables Source

Strongly

Agree Agree Moderately Disagree

Strongly

Disagree

Monthly

Income

Below `. 10000 0(0.00) 4(1.70) 27(11.20) 53(21.90) 20(8.30) 104(43.00)

`.10000 to `.20000 0(0.00) 6(2.50) 23(9.50) 36(14.90) 8(3.30) 73(30.20)

`. 20001 to `. 30000 0(0.00) 1(0.40) 6(2.50) 17(7.00) 3(1.20) 27(11.20)

`. 30001 to `. 40000 0(0.00) 3(1.20) 4(1.70) 12(5.00) 4(1.70) 23(9.50)

`. 40001 to `. 50000 0(0.00) 0(0.00) 4(1.70) 7(2.90) 2(0.80) 13(5.40)

Above `. 50000 0(0.00) 0(0.00) 2(0.80) 0(0.00) 0(0.00) 2(0.80)

Total 0(0.00) 14(5.80) 66(27.30) 125(51.70) 37(15.30) 242(100)

Managemen

t Level

Top Level Executive 0(0.00) 3(1.20) 12(5.00) 35(14.50) 5(2.10) 55(22.70)

Middle Level Management 0(0.00) 5(2.10) 38(15.70) 54(22.30) 17(7.00) 114(47.10)

Low Level Management 0(0.00) 6(2.50) 16(6.60) 36(14.90) 15(6.20) 73(30.20)

Total 0(0.00) 14(5.80) 66(27.30) 125(51.70) 37(15.30) 242(100)

Type of the

organization

Manufacturing Industry 0(0.00) 4(1.70) 30(12.40) 73(30.20) 14(5.80) 121(50.00)

Service Organization 0(0.00) 10(4.10) 36(14.90) 52(21.50) 23(9.50) 121(50.00)

Total 0(0.00) 14(5.80) 66(27.30) 125(51.70) 37(15.30) 242(100)

Size of the

organization

Large Scale 0(0.00) 5(2.10) 26(10.70) 57(23.60) 16(6.60) 104(43.00)

Medium Scale 0(0.00) 6(2.50) 28(11.60) 55(22.70) 10(4.10) 99(40.90)

Small Scale 0(0.00) 3(1.20) 12(5.00) 13(5.40) 11(4.50) 39(16.10)

Total 0(0.00) 14(5.80) 66(27.30) 125(51.70) 37(15.30) 242(100)

Source: Computed Data

Page 14: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

162

TABLE: 6.10

RESULT OF CHI-SQUARE

RELATION BETWEEN SOCIO-ECONOMIC STATUS AND

TURNOVER INTENTION (PRIVATE SECTOR)

Variables

Chi-

square

value

DF Table

value

Contingency

co-efficient Remark

Gender 6.581 3 7.815 .163 Accepted

Age 6.730 9 16.919 .164 Accepted

Educational

Qualification 10.259 12 21.026 .202 Accepted

Length of

Employment 19.789 15 24.996 .275 Accepted

Monthly

Income 14.581 15 24.996 .238 Accepted

Management

Level 8.771 6 12.592 .187 Accepted

Type of the

organization 8.834 3 7.815 .188 Rejected

Size of the

organization 9.864 6 12.592 .198 Accepted

Level of Significance: 5 per cent

The calculated chi-square values are lesser than the table values at 5

per cent level of significance. Therefore, the hypothesis framed is accepted.

It has been concluded that the socio-economic and job status of a private

sector employee significantly influences their decision to either stay or leave

their present job. However, the type of the organization, it corporate status,

reputation, number of branches it has significantly influences employee

decisions to stay or leave. So the employees of private organization are not

much considering the type of the organization for their decision i.e.,

manufacturing or service sector.

Page 15: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

163

6.5 MULTIPLE REGRESSION ANALYSIS

Sets of four Multiple regression modeling have been performed by the

researcher to measure the influences of organizational HR practices and

organizational factors on the employee commitment towards their employer

and their intention to stay or leave in a particular organization.

H6: HR practices of public and private sector institutions like:

Organization fit, Remuneration, recognition and reward, Opportunities

for training and career development, Challenging employment

assignments and opportunities to work are positively influence

employees’ commitment towards his/her employer/organization.

6.5.1 INFLUENCES OF HR PRACTICES ON ORGANISATION

COMMITMENT OF EMPLOYEES IN PUBLIC SECTOR

The regression model has been performed to evaluate influences of

HR practices on organization Commitment of public sector institutions. The

dependent variable is employees’ commitment and the independent variables

are: X1- Organization fit, X2- Remuneration, recognition and reward, X3-

Opportunities for training and career development and X4- Challenging

employment assignments and opportunities.

HR practices of public sector institutions = f (Organization fit,

Remuneration, recognition and reward, Opportunities for training and career

development and Challenging employment assignments and opportunities).

Page 16: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

164

Measured HR practices of public sector institutions as a dummy

variable and run the following regression model of the HR practices of

public sector institutions. Specifically,

Influences of HR practices on organization Commitment of public

sector employees= α + β1X1 + β2X2 +β3X3 + β4X4 + e

Where,

Influences of HR practices on organization Commitment of public

sector employees (Y) =

X1 = Organization fit

X2 = Remuneration, recognition and reward

X3 = Opportunities for training and career development

X4 = Challenging employment assignments and opportunities

Where, α is constant and β1, β2, β3, β4 are coefficients to estimate,

and e is the error term, which the authors assumed as NID for this research.

TABLE: 6.11

MULTIPLE REGRESSION MODEL SUMMARY

INFLUENCES OF HR PRACTICES ON ORGANISATION

COMMITMENT OF EMPLOYEES IN PUBLIC SECTOR

R R2 Adjusted R

2 SE

F

Value Sig

.646 .418 .405 .541 33.193 .000

Level of Significance: 5 per cent

Page 17: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

165

Y = .768+.194 X1+.241 X2+.185 X3+.181 X4

It has been revealed from the above econometric analysis that F ratio

(33.193) is statistically significant at 5 per cent level of significant. This

indicates the entire regression is significant, that is it established meager

41.80 per cent relationship between the variables tested. Thus, it has

concluded that the hypothesis framed stands accepted. It has been inferred

that HR practices of public sector institutions like: Organization fit;

Remuneration, recognition and reward; Opportunities for training and career

development; Challenging employment assignments and opportunities to

work are positively influence employees’ commitment towards his

employer/organization.

It is noted that employee’s commitment arise when there is

organizational fit for an employee i.e. personal and organizational goals

have to match each other. Commitment is influenced by the remuneration

package. When each and every employee has to be recognized and rewarded

for his work and challenges in work will induce employee’s commitment.

Page 18: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

166

TABLE: 6.12

INFLUENCES OF HR PRACTICES ON ORGANISATION

COMMITMENT OF EMPLOYEES IN PUBLIC SECTOR

Variables

Unstandardized

Coefficients

Standardized

Coefficients t Sig.

Co linearity

Statistics

B Std.

Error Beta Tolerance VIF

Constant .768 .264 - 2.906 .004 - -

Organization fit .194 .061 .197 3.194 .002 .829 1.207

Remuneration,

recognition and

reward

.241 .059 .288 4.054 .000 .623 1.604

Opportunities

for training and

career

development

.185 .058 .221 3.177 .002 .652 1.534

Challenging

employment

assignments and

opportunities

.181 .068 .166 2.657 .009 .811 1.233

Level of Significance: 5 per cent

To determine one or more of the independent variables which are

significant predictors of HR practices of public sector institutions the

information provided in the co-efficient table is examined. All the above 4

parameters/statements are statistically significant. The standardized co-

efficient beta column reveals that HR practices of public sector institutions

have beta co-efficient .768, which is statistically significantly at 0.000.

To assess multi-co linearity one looks at the size of tolerance and VIF

(Variance Inflated Factor). For the tolerance small, indicate the absence of

co linearity. The VIF is the inverse (opposite) of tolerance, one looks for

large values. If the tolerance value is smaller than .10, it is concluded that

multi-co linearity is a problem. Similarly, if the VIF is 5 or larger, then

Page 19: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

167

multi-co linearity is a problem. Since the tolerance value is substantially

above .10 and the VIF is smaller than 5 it is concluded that multi-co linearity

among the independent variable is statistically significant.

Predicated Value of

Influences of HR practices on organization Commitment of public

sector employees = .768 (Constant)

± .194 (Organization fit)

± .241 (Remuneration, recognition and reward)

± .185 (Opportunities for training and career development)

± .181 (Challenging employment assignments and opportunities)

To assess the HR practices of public sector institutions multiple

regression modeling has been performed and the relative importance of the

individual dimension is generated. With the support of multiple regression

modeling, four variables have been tested and found significant.

It is clearly noted that for the employee’s commitment, all the four

elements such as Organization fit; Remuneration, recognition and reward;

Opportunities for training and career development and Challenging

employment assignments and opportunities are essential.

6.5.2 INFLUENCES OF HR PRACTICES ON ORGANISATION

COMMITMENT OF EMPLOYEES IN PRIVATE SECTOR

The regression model has been performed to evaluate influences of

HR practices on Organization Commitment of private sector institutions.

Page 20: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

168

The dependent variable is employees’ commitment and the independent

variable are X1- Organization fit, X2- Remuneration, recognition and reward,

X3- Opportunities for training and career development and X4- Challenging

employment assignments and opportunities.

HR practices of private sector institutions = f (Organization fit,

Remuneration, recognition and reward, Opportunities for training and career

development and Challenging employment assignments and opportunities).

Measured of organizational commitment of private sector institutions

as a dummy variable and run the following regression model of the HR

practices of private sector institutions. Specifically,

Influences of HR practices on Organization Commitment of private

sector employees = α + β1X1 + β2X2 +β3X3 + β4X4 + e

Where,

Influences of HR practices on organization Commitment of private

sector institutions (Y) =

X1 = Organization fit

X2 = Remuneration, recognition and reward

X3 = Opportunities for training and career development

X4 = Challenging employment assignments and opportunities

Where, α is constant and β1, β2, β3, β4are coefficients to estimate,

and e is the error term, which the authors assumed as NID for this research.

Page 21: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

169

TABLE: 6.13

MULTIPLE REGRESSION MODEL SUMMARY

INFLUENCES OF HR PRACTICES ON ORGANISATION

COMMITMENT OF EMPLOYEES IN PRIVATE SECTOR

R R2

Adjusted

R2

SE F

Value Sig

.716 .513 .504 .555 62.325 .000

Level of Significance: 5 per cent

Y = .680+.095 X1+.145 X2+.394 X3+.201 X4

It has been revealed from the above econometric analysis that F ratio

(62.325) is statistically significant at 5 per cent level of significant. This

indicates the entire regression is significant, that is it established meager

51.30 per cent relationship between the variables tested. Thus, it has been

concluded that the hypothesis framed stands accepted. It has inferred that

HR practices like: Organization fit; Remuneration, recognition and reward;

Opportunities for training and career development; Challenging employment

assignments and opportunities to work are positively influence employees’

commitment towards his/her employer/organization.

It is clear that the above variables are present in the private sector

organizations which generate commitment among the employees.

Page 22: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

170

TABLE: 6.14

INFLUENCES OF HR PRACTICES ON ORGANISATION

COMMITMENT OF EMPLOYEES IN PRIVATE SECTOR

Variables

Unstandardized

Coefficients

Standardized

Coefficients t Sig.

Co linearity

Statistics

B Std.

Error Beta Tolerance VIF

Constant .680 .212 - 3.208 .002 - -

Organization fit .095 .056 .094 1.693 .092 .674 1.484

Remuneration,

recognition and

reward

.145 .056 .162 2.587 .010 .524 1.907

Opportunities

for training and

career

development

.394 .059 .420 6.669 .000 .519 1.927

Challenging

employment

assignments and

opportunities

.201 .067 .177 3.004 .003 .592 1.690

Level of Significance: 5 per cent

To determine one or more of the independent variables which are

significant predictors of HR practices of private sector institutions, the

information provided in the co-efficient table is examined. All the above 4

parameters statements are statistically significant. The standardized co-

efficient beta column reveals that HR practices of private sector institutions

have beta co-efficient .680 which is statistically significant at 0.000.

To assess multi-co linearity one looks at the size of tolerance and VIF

(Variance Inflated Factor). For the tolerance small indicate the absence of

co linearity. The VIF is the inverse (opposite) of tolerance, one looks for

large values. If the tolerance value is smaller than .10, it is concluded that

Page 23: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

171

multi-co linearity is a problem. Similarly, if the VIF is 5 or larger, then

multi-co linearity is a problem. Since the tolerance value is substantially

above .10 and the VIF is smaller than 5 it is concluded that multi-co linearity

among the independent variable is statistical significant.

Predicated Value of

Influences of HR practices on organization Commitment of private

sector institutions = .680 (Constant)

± .145 (Remuneration, recognition and reward)

± .394 (Opportunities for training and career development)

± .201 (Challenging employment assignments and opportunities)

To assess the HR practices of private sector institutions multiple

regression modeling has been performed and the relative importance of the

individual dimension is generated. With the support of multiple regression

modeling four variables have been tested and three variables found

significant. They are: Remuneration, recognition and reward; Opportunities

for training and career development; and Challenging employment

assignments and opportunities.

In the private sector, all the above variables are significant except

organization fit. Because, the organizational goals may not match with the

individual goal when there is no opportunity for career development.

H7: HR practices of public and private sector institutions like:

Organization fit, Remuneration, recognition and reward, Opportunities

for training and career development, Challenging employment

Page 24: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

172

assignments and opportunities to work are positively influence

employees’ intention to stay or leave their present organization.

6.5.3 INFLUENCES OF HR PRACTICES ON RETENTION OF

EMPLOYEES IN PUBLIC SECTOR

The regression model has been performed to evaluate influences of

HR practices on retention of public sector employees. The dependent

variable is reason for retaining and the independent variables are X1-

Organization fit, X2- Remuneration, recognition and reward, X3-

Opportunities for training and career development and X4- Challenging

employment assignments and opportunities.

Influences of HR practices on retention of public sector employees= f

(Organization fit, Remuneration, recognition and reward, Opportunities for

training and career development and Challenging employment assignments

and opportunities).

Measured HR practices on retention of public sector employees as a

dummy variable and run the following regression model of the HR practices

of public sector institutions. Specifically,

Influences of HR practices on retention of public sector employees= α

+ β1X1 + β2X2 +β3X3 + β4X4 + e

Where,

Influences of HR practices on retention of public sector employees

(Y) =

Page 25: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

173

X1 = Organization fit

X2 = Remuneration, recognition and reward

X3 = Opportunities for training and career development

X4 = Challenging employment assignments and opportunities

Where, α is constant and β1, β2, β3, β4are coefficients to estimate,

and e is the error term, which the authors assumed as NID for this research.

TABLE: 6.15

MULTIPLE REGRESSION MODEL SUMMARY

INFLUENCES OF HR PRACTICES ON RETENTION OF

EMPLOYEES IN PUBLIC SECTOR

R R2

Adjusted

R2

SE F Value Sig

.432 .187 .169 .790 10.624 .000

Level of Significance: 5 per cent

Y = 1.524+.331X1+.121 X2.095 X3+.131 X4

It has been revealed from the above econometric analysis that F ratio

(10.624) is statistically significant at 5 per cent level of significant. This

indicates that the entire regression is significant, that is it established meager

43.20 per cent relationship between the variables tested. Thus, it has

concluded that the hypothesis framed stands accepted.

It is inferred that HR practices like Organization fit; Remuneration,

recognition and reward; Opportunities for training and career development;

Challenging employment assignments and opportunities to work have

positive influence on public sector employees’ intention to stay with their

present organization.

Page 26: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

174

It is understood that the above factors exist in the public sector. So the

employees are willing to work there and stay there for a long period.

TABLE: 6.16

INFLUENCES OF HR PRACTICES ON RETENTION OF

EMPLOYEES IN PUBLIC SECTOR

Variables

Unstandardized

Coefficients

Standardized

Coefficients T Sig.

Co linearity

Statistics

B Std.

Error Beta Tolerance VIF

Constant 1.524 .386 - 3.951 .000 - -

Organization

fit .331 .089 .272 3.734 .000 .829 1.207

Remuneration,

recognition

and reward

.121 .087 .117 1.396 .164 .623 1.604

Opportunities

for training and

career

development

.095 .085 .092 1.120 .264 .652 1.534

Challenging

employment

assignments

and

opportunities

.131 .099 .097 1.318 .189 .811 1.233

Level of Significance: 5 per cent

To determine one or more of the independent variables which are

significant predictors of HR practices of public sector institutions the

information provided in the co-efficient table is examined. All the above 4

parameters statements are statistically significant. The standardized co-

efficient beta column reveals that HR practices of public sector institutions

have beta co-efficient 1.524 which is statistically significantly at 0.000.

Page 27: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

175

To assess multi-co linearity one looks at the size of tolerance and VIF

(Variance Inflated Factor). For the tolerance small indicate the absence of

co linearity. Since the VIF is the inverse (opposite) of tolerance, one looks

for large values. If the tolerance value is smaller than .10, it is concluded

that multi-co linearity is a problem. Similarly, if the VIF is 5 or larger, then

multi-co linearity is a problem. Since the tolerance value is substantially

above .10 and the VIF is smaller than 5 it is concluded that multi-co linearity

among the independent variables is statistical significant.

Predicated Value of

Influences of HR practices on retention of public sector employees

= 1.524 (Constant)

± .331(Organization fit)

To assess the HR practices of public sector institutions multiple

regression modeling has been performed. The relative importance of the

individual dimension of the generated scale with the support of multiple

regression modeling has been adopted. Out of four variables tested, one

variable is found significant i.e., Organization fit.

It has been clearly noted that the employees of public sectors stay in

the organization for the variable ‘Organization fit’ which matches the

organizational goals with individual goal. Hence both the organizations as

well as the employees are satisfied with the achievement of their goals.

Page 28: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

176

6.5.4 INFLUENCES OF HR PRACTICES ON RETENTION OF

EMPLOYEES IN PRIVATE SECTOR

The regression model has been performed to evaluate influences of

HR practices on retention of private sector employees. The dependent

variable is the reason for retaining and the independent variable is X1-

Organization fit, X2- Remuneration, recognition and reward, X3-

Opportunities for training and career development and X4- Challenging

employment assignments and opportunities.

Influences of HR practices on retention of private sector employees= f

(Organization fit, Remuneration, recognition and reward, Opportunities for

training and career development and Challenging employment assignments

and opportunities).

Measured HR practices influences on employee retention in private

sector institutions as a dummy variable and run the following regression

model of the HR practices of private sector institutions. Specifically,

Influences of HR practices on retention of private sector employees=

α + β1X1 + β2X2 +β3X3 + β4X4 + e

Where,

Influences of HR practices on retention of private sector employees

(Y) =

X1 = Organization fit

X2 = Remuneration, recognition and reward

X3 = Opportunities for training and career development

X4 = Challenging employment assignments and opportunities

Page 29: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

177

Where, α is constant and β1, β2, β3, β4 are coefficients to estimate,

and e is the error term, which the authors assumed as NID for this research.

TABLE: 6.17

MULTIPLE REGRESSION MODEL SUMMARY

INFLUENCES OF HR PRACTICES ON RETENTION OF

EMPLOYEES IN PRIVATE SECTOR

R R2 Adjusted R

2 SE F Value Sig

.664 .441 .432 .679 46.734 .000

Level of Significance: 5 per cent

Y = .864+.085X1+.444 X2+.184 X3+.122 X4

It has been revealed from the above econometric analysis that F ratio

(46.734) is statistically significant at 5 per cent level of significant. This

indicates the entire regression is significant, that is, it has established meager

66.40 per cent relationship between the variables tested.

Thus, it is concluded that the hypothesis framed stands accepted. It

has been inferred that HR practices like Organization fit; Remuneration,

recognition and reward; Opportunities for training and career development;

Challenging employment assignments and opportunities to work have

positive influence on the private sector institutions employees intention to

stay in their present organizations.

Page 30: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

178

TABLE: 6.18

INFLUENCES OF HR PRACTICES ON RETENTION OF

EMPLOYEES IN PRIVATE SECTOR

Variables

Unstandardized

Coefficients

Standardized

Coefficients T Sig.

Co linearity

Statistics

B Std.

Error Beta Tolerance VIF

Constant .864 .259 - 3.330 .001 - -

Organization fit .085 .068 .074 1.244 .215 .674 1.484

Remuneration,

recognition

and reward

.444 .068 .435 6.492 .000 .524 1.907

Opportunities

for training

and career

development

.184 .072 .172 2.545 .012 .519 1.927

Challenging

employment

assignments

and

opportunities

.122 .082 .094 1.492 .137 .592 1.690

Level of Significance: 5 per cent

To determine one or more of the independent variables which are

significant predictors of HR practices of private sector institutions the

information provided in the co-efficient table is examined. All the above 4

parameters statements are statistically significant. The standardized co-

efficient beta column reveals that HR practices of private sector institutions

have beta co-efficient .864 which is statistically significantly at 0.000.

To assess multi-co linearity one looks at the size of tolerance and VIF

(Variance Inflated Factor). For the tolerance small indicate the absence of

co linearity. The VIF is the inverse (opposite) of tolerance, one looks for

Page 31: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

179

large values. If the tolerance value is smaller than .10, it is concluded that

multi-co linearity is a problem. Similarly, if the VIF is 5 or larger, then

multi-co linearity is a problem. Since the tolerance value is substantially

above .10 and the VIF is smaller than 5, it is concluded that multi-co

linearity among the independent variable is statistically significant.

Predicated Value of

Influences of HR practices on retention of private sector employees

= .864 (Constant)

± .444 (Remuneration, recognition and reward)

± .184 (Opportunities for training and career development)

To assess the HR practices of private sector institutions multiple

regression modeling has been performed. The relative importance of the

individual dimension of the generated scale with the support of multiple

regression model has been adopted. Out of four variables tested two

variables are found significant such as remuneration, recognition and reward

and opportunities for training and career development.

It has been inferred that intention of private sector employees to stay

in the organization is only for the monetary benefits they receive and for the

opportunity for training and development.

6.5.5 INFLUENCES OF HR PRACTICES TO LEAVE THE PRESENT

JOB BY THE EMPLOYEES IN PUBLIC SECTOR

The regression model has been performed to evaluate reason stated by

the employee to leave the present job. The dependent variable is the reason

Page 32: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

180

for turnover and the independent variables are X1- Organization fit, X2-

Remuneration, recognition and reward, X3- Opportunities for training and

career development and X4- Challenging employment assignments and

opportunities.

Reason stated by the employee to leave the present job= f

(Organization fit, Remuneration, recognition and reward, Opportunities for

training and career development and Challenging employment assignments

and opportunities).

Measured reason for public sector employees to leave a job as a

dummy variable and run the following regression model of the HR practices

of public sector institutions. Specifically,

Reason stated by the employee to leave the present job = α + β1X1 +

β2X2 +β3X3 + β4X4 + e

Where,

Reason stated by the employee to leave the present job (Y) =

X1 = Organization fit

X2 = Remuneration, recognition and reward

X3 = Opportunities for training and career development

X4 = Challenging employment assignments and opportunities

Where, α is constant and β1, β2, β3, β4 are coefficients to estimate,

and e is the error term, which the authors assumed as NID for this research.

Page 33: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

181

TABLE: 6.19

MULTIPLE REGRESSION MODEL SUMMARY

INFLUENCES OF HR PRACTICES TO LEAVE THE PRESENT JOB

BY THE EMPLOYEES IN PUBLIC SECTOR

R R2

Adjusted

R2

SE F

Value Sig

.267 .071 .051 .969 3.555 .008

Level of Significance: 5 per cent

Y = 2.379-.045X1+.083 X2+.260 X3+.046 X4

It has been revealed from the above econometric analysis that F ratio

(3.555) is statistically significant at 5 per cent level of significant. This

indicates that the entire regression is significant, and it has established

meager 26.70 per cent relationship between the variables tested.

Thus, it is concluded that the hypothesis framed stands accepted. It is

inferred that HR practices like Organization fit; Remuneration, recognition

and reward; Opportunities for training and career development; Challenging

employment assignments and opportunities to work have possitive influence

on the employees’ intention to leave their present organization.

Page 34: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

182

TABLE: 6.20

INFLUENCES OF HR PRACTICES TO LEAVE THE PRESENT JOB

BY THE EMPLOYEES IN PUBLIC SECTOR

Variables

Unstandardized

Coefficients

Standardized

Coefficients T Sig.

Co linearity

Statistics

B Std.

Error Beta Tolerance VIF

Constant 2.379 .473 - 5.028 .000 - -

Organization

fit -.045 .109 -.032 -.415 .679 .829 1.207

Remuneration,

recognition

and reward

.083 .106 .070 .782 .435 .623 1.604

Opportunities

for training

and career

development

.260 .104 .219 2.501 .013 .652 1.534

Challenging

employment

assignments

and

opportunities

.046 .122 .030 .376 .707 .811 1.233

Level of Significance: 5 per cent

To determine one or more of the independent variables which are

significant predictors of HR practices of public sector institutions the

information provided in the co-efficient table is examined. All the above 4

parameters statements are statistically significant. The standardized co-

efficient beta column reveals that HR practices of public sector institutions

have beta co-efficient 2.379 which is statistically significantly at 0.000.

To assess multi-co linearity one looks at the size of tolerance and VIF

(Variance Inflated Factor). For the tolerance small indicate the absence of

co linearity. The VIF is the inverse (opposite) of tolerance, one looks for

Page 35: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

183

large values. If the tolerance value is smaller than .10, it is concluded that

multi-co linearity is a problem. Similarly, if the VIF is 5 or larger, then

multi-co linearity is a problem. Since the tolerance value is substantially

above .10 and the VIF is smaller than 5 it is concluded that multi-co linearity

among the independent variable is statistically significant.

Predicated Value of

Reason stated by the employee to leave the present job

= 2.379 (Constant)

± .260 (Opportunities for training and career development)

To assess the HR practices of public sector institutions multiple

regression modeling has been performed. The relative importance of the

individual dimension of the generated scale with the support of multiple

regression modeling has been adopted. Out of four variables tested, one

variable is found significant such as Opportunities for training and career

development.

It has been noted that the public sector employees leave the job due to

lack of opportunity for training and development. It is clear that in public

sector the employees are given training only at the time of appointment and

promotion but not during the normal working life.

6.5.6 INFLUENCES OF HR PRACTICES TO LEAVE THE PRESENT

JOB BY THE EMPLOYEES IN PRIVATE SECTOR

The regression model has been performed to evaluate the reason

stated by the employee to leave the present job. The dependent variable is

Page 36: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

184

the reason for turnover and the independent variables are X1- Organization

fit, X2- Remuneration, recognition and reward, X3- Opportunities for training

and career development and X4- Challenging employment assignments and

opportunities.

Reason stated by the employee to leave the present job = f

(Organization fit, Remuneration, recognition and reward, Opportunities for

training and career development and Challenging employment assignments

and opportunities).

Measured reason for private sector employees to leave a job as a

dummy variable and run the following regression model of the HR practices

of private sector institutions. Specifically,

Reason stated by the employee to leave the present job = α + β1X1 +

β2X2 +β3X3 + β4X4 + e

Where,

Reason stated by the employee to leave the present job (Y) =

X1 = Organization fit

X2 = Remuneration, recognition and reward

X3 = Opportunities for training and career development

X4 = Challenging employment assignments and opportunities

Where, α is constant and β1, β2, β3, β4 are coefficients to estimate,

and e is the error term, which the authors assumed as NID for this research.

Page 37: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

185

TABLE: 6.21

MULTIPLE REGRESSION MODEL SUMMARY

INFLUENCES OF HR PRACTICES TO LEAVE THE PRESENT JOB

BY THE EMPLOYEES IN PRIVATE SECTOR

R R2

Adjusted

R2

SE F Value Sig

.194 .038 .022 .987 2.325 .007

Level of Significance: 5 per cent

Y = 2.635+.135X1+.065 X2+.003 X3+.104 X4

It has been revealed from the above econometric analysis that F ratio

(2.325) is statistically significant at 5 per cent level of significant. This

indicates the entire regression is significant, and it has established meager

19.40 per cent relationship between the variables tested. Thus, it is

concluded that the hypothesis framed stands accepted.

It is inferred that the HR practices like Organization fit;

Remuneration, recognition and reward; Opportunities for training and career

development; Challenging employment assignments and opportunities to

work have positive influence on the employees’ intention to leave their

present organization.

Page 38: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

186

TABLE: 6.22

INFLUENCES OF HR PRACTICES TO LEAVE THE PRESENT JOB

BY THE EMPLOYEES IN PRIVATE SECTOR

Variables

Unstandardized

Coefficients

Standardized

Coefficients t Sig.

Co linearity

Statistics

B SE Beta Tolerance VIF

Constant 2.635 .377 - 6.986 .000 - -

Organization fit .135 .099 .105 1.356 .176 .674 1.484

Remuneration,

recognition

and reward

.065 .099 .058 .659 .011 .524 1.907

Opportunities

for training and

career

development

.003 .105 .002 .025 .980 .519 1.927

Challenging

employment

assignments

and

opportunities

.104 .119 .073 .875 .382 .592 1.690

Level of Significance: 5 per cent

To determine one or more of the independent variables which are

significant predictors of HR practices of private sector institutions, the

information provided in the co-efficient table is examined. All the above 4

parameters statements are statistically significant. The standardized co-

efficient beta column reveals that HR practices of private sector institutions

have beta co-efficient 2.635 which is statistically significant at 0.000.

To assess multi-co linearity one looks at the size of tolerance and VIF

(Variance Inflated Factor). For the tolerance small indicate the absence of

co linearity. The VIF is the inverse (opposite) of tolerance, one looks for

large values. If the tolerance value is smaller than .10, it is concluded that

multi-co linearity is a problem. Similarly, if the VIF is 5 or larger, then

Page 39: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

187

multi-co linearity is a problem. Since the tolerance value is substantially

above .10 and the VIF is smaller than 5 it is concluded that multi-co linearity

among the independent variable is statistical significant.

Predicated Value of

Reason stated by the employee to leave the present job

= 2.635 (Constant)

± .065 (Remuneration, recognition and reward)

To assess the HR practices of private sector institutions multiple

regression modeling has been performed. The relative importance of the

individual dimension is generated with the support of multiple regression

modeling. Out of four variables tested, one variable is found significant i.e.,

Remuneration, recognition and reward.

It has been clearly pointed out that the reason for the employee to

leave the concern is remuneration, recognition and reward. In private

organizations, people mainly work for the monetary benefits and

appreciation by the employer. Enhanced work can be obtained from the

employees with the monetary and non-monetary rewards. If these factors are

not prevailing in an organization, people will leave the job. Employees

expect higher pay for higher qualification.

H8: Organizational factors like: superior-subordinate relationship,

inter-personal relationship, organization polices (work culture),

communication of information and nature of working environment

directly influences employee’s decisions to stay in an organization.

Page 40: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

188

6.5.7 INFLUENCES OF ORGANISATIONAL FACTOR ON

EMPLOYEES’ COMMITMENT (PUBLIC SECTOR)

The regression model has been performed to evaluate influences of

organizational factor on employee commitment. The dependent variable is

organization commitment and the independent variable are : X1- superior-

subordinate relationship and inter-personal relationship, X2- organization

polices, recognition and reward, X3- communication of information and X4-

nature of working environment.

Influences of organizational factor on employee commitment = f

(superior-subordinate relationship and inter-personal relationship,

organization polices, recognition and reward, communication of information

and nature of working environment).

Measured Organizational factors of public sector institutions as a

dummy variable and run the following regression model of the

Organizational factors of public sector institutions. Specifically,

Influences of organizational factor on employee commitment

= α + β1X1 + β2X2 +β3X3 + β4X4 + e

Where,

Influences of organizational factor on employee commitment

(Y) =

X1 = Superior-subordinate relationship and inter-personal relationship

X2 = Organization polices, recognition and reward,

X3 = Communication of information

X4 = Nature of working environment

Page 41: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

189

Where, α is constant and β1, β2, β3, β4 are coefficients to estimate,

and e is the error term, which the authors assumed as NID for this research.

TABLE: 6.23

MULTIPLE REGRESSION MODEL SUMMARY

INFLUENCES OF ORGANISATIONAL FACTOR ON EMPLOYEES’

COMMITMENT (PUBLIC SECTOR)

R R2 Adjusted R

2 SE F Value Sig

.434 .188 .171 .616 10.732 .000

Level of Significance: 5 per cent

Y =1.898+.117 X1+.078 X2+ .162 X3+.152 X4

It has been revealed from the above econometric analysis that F ratio

(10.732) is statistically significant at 5 per cent level of significant. This

indicates that the entire regression is significant, that is, it has established

meager 18.80 per cent relationship between the variables tested.

Thus it is concluded that the hypothesis framed stands accepted. It is

inferred that organizational factors like superior-subordinate relationship;

inter-personal relationship; organization polices (work culture);

communication of information and nature of working environment have

direct influence on the public sector employee’s commitment towards

his/her organization.

Page 42: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

190

TABLE: 6.24

INFLUENCES OF ORGANISATIONAL FACTOR ON EMPLOYEES’

COMMITMENT (PUBLIC SECTOR)

Variables

Unstandardized

Coefficients

Standardized

Coefficients T Sig.

Co linearity

Statistics

B Std.

Error Beta Tolerance VIF

Constant 1.898 .288 - 6.583 .000 - -

Superior-

subordinate

relationship and

inter-personal

relationship

.117 .083 .113 1.411 .160 .681 1.469

Organization

polices .078 .078 .082 .994 .321 .650 1.537

Communication

of information .162 .080 .173 2.031 .044 .602 1.661

Nature of

working

environment

.152 .063 .195 2.418 .017 .677 1.477

Level of Significance: 5 per cent

To determine one or more of the independent variables which are

significant predictors of Organizational factors of public sector institutions

the information provided in the co-efficient table is examined. All the above

4 parameters statements are statistically significant. The standardized co-

efficient beta column reveals that Organizational factors of public sector

institutions have beta co-efficient 1.898 which is statistically significant at

0.000.

To assess multi-co linearity one looks at the size of tolerance and VIF

(Variance Inflated Factor). For the tolerance small indicate the absence of

co linearity. The VIF is the inverse (opposite) of tolerance, one looks for

Page 43: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

191

large values. If the tolerance value is smaller than .10, it is concluded that

multi-co linearity is a problem. Similarly, if the VIF is 5 or larger, then

multi-co linearity is a problem. Since the tolerance value is substantially

above .10 and the VIF is smaller than 5 it is concluded that multi-co linearity

among the independent variable is statistical significant.

Predicated Value of

Influences of organizational factor on employee commitment

= 1.898 (Constant)

± .162 (Communication of information)

± .152 (Nature of working environment)

To assess the Organizational factors of public sector institutions

multiple regression modeling has been performed. The relative importance

of the individual dimension is generated with the support of multiple

regression modeling. Out of four variables tested two variables are found

significant and they there are Communication of information and nature of

working environment.

It has been clearly identified that communication regarding policy

matters and all the decision regarding the staff should be noted to the

employees regularly. Pleasant working environment paves way for the

employees to be commited themselves to the organization. Thus, public

sector employees are enjoying with the free flow of communication and

hilarious working environment.

Page 44: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

192

6.5.8 INFLUENCES OF ORGANISATIONAL FACTOR ON

EMPLOYEES’ COMMITMENT (PRIVATE SECTOR)

The regression model has been performed to evaluate influences of

organizational factor on employee commitment. The dependent variable is

organization commitment and the independent variable are : X1- superior-

subordinate relationship and inter-personal relationship, X2- organization

polices, recognition and reward, X3- communication of information and X4-

nature of working environment.

Influences of organizational factor on employee commitment

= f (superior-subordinate relationship and inter-personal relationship,

organization polices, recognition and reward, communication of information

and nature of working environment).

Measured organizational commitment factors of private sector

institutions as a dummy variable and run the following regression model of

the Organizational factors of private sector institutions. Specifically,

Influences of organizational factor on employee commitment

= α + β1X1 + β2X2 +β3X3 + β4X4 + e

Where,

Influences of organizational factor on employee commitment

(Y) =

X1 = Superior-subordinate relationship and inter-personal relationship

X2 = Organization polices, recognition and reward,

X3 = Communication of information

X4 = Nature of working environment

Page 45: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

193

Where, α is constant and β1, β2, β3, β4 are coefficients to estimate,

and e is the error term, which the authors assumed as NID for this research.

TABLE: 6.25

MULTIPLE REGRESSION MODEL SUMMARY

INFLUENCES OF ORGANISATIONAL FACTOR ON EMPLOYEES’

COMMITMENT (PRIVATE SECTOR)

R R2

Adjusted

R2

SE F Value Sig

.503 .253 .240 .677 20.024 .000

Level of Significance: 5 per cent

Y = 1.728+.007 X1+.146 X2+.073 X3+.324 X4

It has been revealed from the above econometric analysis that F ratio

(20.024) is statistically significant at 5 per cent level of significant. This

indicates that entire regression is significant, i.e., it has established meager

25.30 per cent relationship between the variables tested.

Thus it is concluded that the hypothesis framed stands accepted. It is

inferred that organizational factors like superior-subordinate relationship;

inter-personal relationship; organization policies (work culture);

communication of information and nature of working environment directly

influences employee’s commitment towards the organization.

Page 46: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

194

TABLE: 6.26

INFLUENCES OF ORGANISATIONAL FACTOR ON EMPLOYEES’

COMMITMENT (PRIVATE SECTOR)

Variables

Unstandardized

Coefficients

Standardized

Coefficients t Sig.

Co linearity

Statistics

B Std.

Error Beta Tolerance VIF

Constant 1.728 .251 - 6.894 .000 - -

Superior-

subordinate

relationship and

inter-personal

relationship

.007 .099 .006 .068 .946 .370 2.704

Organization

polices .146 .076 .166 1.934 .054 .430 2.326

Communication

of information .073 .091 .069 .808 .420 .434 2.303

Nature of

working

environment

.324 .072 .344 4.482 .000 .536 1.867

Level of Significance: 5 per cent

To determine the significance of one or more independent variables of

Organizational factors of private sector institutions, the information provided

in the co-efficient table is examined. All the above 4 parameters statements

are statistically significant. The standardized co-efficient beta column

reveals that Organizational factors of private sector institutions have beta co-

efficient 1.728 which is statistically significant at 0.000.

To assess multi-co linearity one looks at the size of tolerance and VIF

(Variance Inflated Factor). For the tolerance small indicates the absence of

co linearity. The VIF is the inverse (opposite) of tolerance, one looks for

large values. If the tolerance value is smaller than .10, it is concluded that

Page 47: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

195

multi-co linearity is a problem. Similarly, if the VIF is 5 or larger, then

multi-co linearity is a problem. Since the tolerance value is substantially

above .10 and the VIF is smaller than 5 it is concluded that multi-co linearity

among the independent variable is statistical significant.

Predicated Value of

Influences of organizational factor on employee commitment

= 1.728 (Constant)

± .073 (Communication of information)

± .324 (Nature of working environment)

To assess the organizational factors of private sector institutions

multiple regression modeling has been performed. The relative importance

of the individual dimension is generated with the support of multiple

regression modeling. Out of four variables tested two variables are found

significant, and they are Communication of information and Nature of

working environment.

Thus in the private sector organizations also, the same two variables

have been influencing the organization commitment like that of public sector

organization. Hence, employees are enjoying with the free flow of

communication and uproarious working environment in the private sector.

H9: Organizational factors like: superior-subordinate relationship,

inter-personal relationship, organization polices (work culture),

communication of information and nature of working environment

directly influences employee’s decisions either to stay or leave their

organization.

Page 48: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

196

6.5.9 INFLUENCES OF ORGANISATIONAL FACTORS ON

RETENTION OF PUBLIC SECTOR EMPLOYEES

The regression model has been performed to evaluate influences of

organizational factors on retention of public sector employees. The

dependent variable is the reason to stay in a job and the independent

variables are: X1- superior-subordinate relationship and inter-personal

relationship, X2- organizational policies, X3- communication, X4- working

environment and X5-organizational commitment.

Influences of organizational factors on retention of public sector

employees = f (superior-subordinate relationship and inter-personal

relationship, organizational polices, communication, working environment

and organizational commitment).

Measured retention factors of public sector institutions as a dummy

variable and run the following regression model of the Organizational

factors of public sector institutions. Specifically,

Influences of organizational factors on retention of public sector employees

= α + β1X1 + β2X2 +β3X3 + β4X4+ β5X5 + e

Where,

Influences of organizational factors on retention of public sector employees

(Y) =

X1 = Superior-subordinate relationship and inter-personal relationship

X2 = Organizational polices

X3 = Communication

X4 = Working environment

X5 = Organizational commitment

Page 49: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

197

Where, α is constant and β1, β2, β3, β4, β5 are coefficients to

estimate, and e is the error term, which the authors assumed as NID for this

research.

TABLE: 6.27

MULTIPLE REGRESSION MODEL SUMMARY

INFLUENCES OF ORGANISATIONAL FACTORS ON RETENTION

OF PUBLIC SECTOR EMPLOYEES

R R2

Adjusted

R2

SE F Value Sig

.550 .302 .283 .734 15.946 .000

Level of Significance: 5 per cent

Y = 1.441-.085X1+.077 X2+.149 X3-.129 X4+.676 X5

It is revealed from the above econometric analysis that F ratio

(15.946) is statistically significant at 5 per cent level of significant. This

indicates that the entire regression is significant, that is, it has established

meager 30.2 per cent relationship between the variables tested.

Thus it is concluded that the hypothesis framed stands accepted. It is

inferred that organizational factors like superior-subordinate relationship and

inter-personal relationship; organizational polices; communication; working

environment are the influencing factors employee retention in public sector

jobs.

Page 50: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

198

TABLE: 6.28

INFLUENCES OF ORGANISATIONAL FACTORS ON RETENTION

OF PUBLIC SECTOR EMPLOYEES

Variables

Unstandardized

Coefficients

Standardized

Coefficients t Sig.

Co linearity

Statistics

B Std.

Error Beta Tolerance VIF

Constant 1.441 .352 - 4.096 .000 - -

Superior-

subordinate

relationship and

inter-personal

relationship

-.085 .099 -.064 -.857 .393 .676 1.479

Organizational

polices .077 .095 .063 .802 .423 .623 1.606

Communication .149 .097 .124 1.540 .125 .581 1.720

Working

environment -.129 .089 -.128

-

1.450 .149 .484 2.065

Organizational

commitment .676 .113 .548 5.989 .000 .453 2.206

Level of Significance: 5 per cent

To determine one or more of the independent variables which are

significant predictors of Organizational factors of public sector institutions,

the information provided in the co-efficient table is examined. All the above

5 parameters statements are statistically significant. The standardized co-

efficient beta column reveals that Organizational factors of public sector

institutions have beta co-efficient 1.441 which is statistically significantly at

0.000.

To assess multi-co linearity one looks at the size of tolerance and VIF

(Variance Inflated Factor). For the tolerance small indicate the absence of

co linearity. The VIF is the inverse (opposite) of tolerance, one looks for

Page 51: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

199

large values. If the tolerance value is smaller than .10, it is concluded that

multi-co linearity is a problem. Similarly, if the VIF is 5 or larger, then

multi-co linearity is a problem. Since the tolerance value is substantially

above .10 and the VIF is smaller than 5 it is concluded that multi-co linearity

among the independent variables is statistically significant.

Predicated Value of

Influences of organizational factors on retention of public sector employees

= 1.441 (Constant)

± .676 (Organizational commitment)

To assess the Organizational factors of public sector institutions

multiple regression modeling has been performed. The relative importance

of the individual dimension is generated with the support of multiple

regression modeling. Out of five variables tested, one variable is found

significant i.e., Organizational commitment.

It has been inferred that norm-based public service motives include a

desire to serve the public interest, loyalty to duty and to the government as a

whole and social equity. Affective public service motives include

commitment to a program from a genuine conviction about its social

importance and patriotism of benevolence. Therefore it could be assumed

that public sector employees may be more altruistic and more committed to

the organizations for which they work if those organizations help them by

fulfilling those needs.

Page 52: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

200

6.5.10 INFLUENCES OF ORGANISATIONAL FACTORS ON

RETENTION OF PRIVATE SECTOR EMPLOYEES

The regression model has been performed to evaluate Influences of

organizational factors on retention of private sector employees. The

dependent variable is the reason for an employee to stay in a job and the

independent variables are: X1- superior-subordinate relationship and inter-

personal relationship, X2- organizational policies, X3- communication, X4-

working environment and X5-organizational commitment.

Influences of organizational factors on retention of private sector

employees = f (superior-subordinate relationship and inter-personal

relationship, organizational polices, communication, working environment

and organizational commitment).

Measured retention factors of private sector institutions as a dummy

variable and run the following regression model of the Organizational

factors of private sector institutions. Specifically,

Influences of organizational factors on retention of private sector employees

= α + β1X1 + β2X2 +β3X3 + β4X4+ β5X5 + e

Where,

Influences of organizational factors on retention of private sector employees

(Y) =

X1 = Superior-subordinate relationship and inter-personal relationship

X2 = Organizational polices

X3 = Communication

X4 = Working environment

X5 = Organizational commitment

Page 53: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

201

Where, α is constant and β1, β2, β3, β4, β5 are coefficients to

estimate, and e is the error term, which the authors assumed as NID for this

research.

TABLE: 6.29

MULTIPLE REGRESSION MODEL SUMMARY

INFLUENCES OF ORGANISATIONAL FACTORS

ON RETENTION OF PRIVATE SECTOR EMPLOYEES

R R2

Adjusted

R2

SE F Value Sig

.708 .501 .490 .643 47.341 .000

Level of Significance: 5 per cent

Y = .610+.080 X1-.003 X2+.107 X3+.142 X4+.565 X5

It has been revealed from the above econometric analysis that F ratio

(47.341) is statistically significant at 5 per cent level of significant. This

indicates the entire regression is significant, that is it has established meager

70.80 per cent relationship between the variables tested.

Thus it is concluded that the hypothesis framed stands accepted. It is

inferred that organizational factors like superior-subordinate relationship and

inter-personal relationship; organizational policies; communication; working

environment influence an employee to stay in a job.

Page 54: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

202

TABLE: 6.30

INFLUENCES OF ORGANISATIONAL FACTORS ON

RETENTION OF PRIVATE SECTOR EMPLOYEES

Variables

Unstandardized

Coefficients

Standardized

Coefficients t Sig.

Co linearity

Statistics

B Std.

Error Beta Tolerance VIF

Constant .610 .239 - 2.553 .011 - -

Superior-

subordinate

relationship and

inter-personal

relationship

.080 .096 .065 .838 .403 .352 2.838

Organizational

polices -.003 .072 -.003 -.046 .963 .425 2.355

Communication .107 .087 .087 1.239 .217 .427 2.340

Working

environment .142 .084 .130 1.684 .093 .354 2.828

Organizational

commitment .565 .094 .495 5.981 .000 .309 3.234

Level of Significance: 5 per cent

To determine one or more of the independent variables which are

significant predictors of Organizational factors of private sector institutions,

the information are provided in the co-efficient table is examined. All the

above 5 parameters statements are statistically significant. The standardized

co-efficient beta column reveals that Organizational factors of private sector

institutions have beta co-efficient .610 which is statistically significantly at

0.000.

To assess multi-co linearity one looks at the size of tolerance and VIF

(Variance Inflated Factor). For the tolerance small indicate the absence of

co linearity. The VIF is the inverse (opposite) of tolerance, one looks for

Page 55: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

203

large values. If the tolerance value is smaller than .10, it is concluded that

multi-co linearity is a problem. Similarly, if the VIF is 5 or larger, then

multi-co linearity is a problem. Since the tolerance value is substantially

above .10 and the VIF is smaller than 5 it is concluded that multi-co linearity

among the independent variable is statistically significant.

Predicated Value of

Influences of organizational factors on retention of private sector employees

= .610 (Constant)

± .565 (Organizational commitment)

To assess the Organizational factors of private sector institutions

multiple regression modeling has been performed. The relative importance

on the individual dimension is generated with the support of multiple

regression modeling. Out of five variables tested, one variable is found

significant i.e., Organizational commitment as like that of public sector.

It has been generally noted that only commitment makes employees

to work in a particular job for longer period irrespective of public or private

sectors.

6.5.11 INFLUENCES OF ORGANISATIONAL FACTOR TO

LEAVE THE PRESENT JOB BY THE EMPLOYEES IN

PUBLIC SECTOR

The regression model has been performed to evaluate reason stated by

the public employee to leave the present job. The dependent variable is

Page 56: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

204

reason for turnover and the independent variables are: X1- superior-

subordinate relationship and inter-personal relationship, X2- organizational

policies, X3- communication, X4- working environment and X5-

organizational commitment.

Reason stated by the public employee to leave the present job = f

(superior-subordinate relationship and inter-personal relationship,

organizational polices, communication, working environment and

organizational commitment).

Measured factors that influence reasons to leave the job as a dummy

variable and run the following regression model of the Organizational

factors of public sector institutions. Specifically,

Reason stated by the public employee to leave the present job = α +

β1X1 + β2X2 +β3X3 + β4X4+ β5X5 + e

Where,

Reason stated by the public employee to leave the present job (Y) =

X1 = Superior-subordinate relationship and inter-personal relationship

X2 = Organizational polices

X3 = Communication

X4 = Working environment

X5 = Organizational commitment

Page 57: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

205

Where, α is constant and β1, β2, β3, β4, β5 are coefficients to

estimate, and e is the error term, which the authors assumed as NID for this

research.

TABLE: 6.31

MULTIPLE REGRESSION MODEL SUMMARY

INFLUENCES OF ORGANISATIONAL FACTOR TO LEAVE THE

PRESENT JOB BY THE EMPLOYEES IN PUBLIC SECTOR

R R2

Adjusted

R2

SE F

Value Sig

.240 .058 .032 .979 2.256 .001

Level of Significance: 5 per cent

Y = 2.234+.223 X1-.088 X2+.059 X3+.074 X4+.113 X5

It has been revealed from the above econometric analysis that F ratio

(2.256) is statistically significant at 5 per cent level of significant. This

indicates the entire regression is significant, that is, it has established meager

24 per cent relationship between the variables tested. Thus it is concluded

that the hypothesis framed stands accepted.

It is inferred that organizational factors like superior-subordinate

relationship and inter-personal relationship; organizational polices;

communication; working environment are considered to be the influencing

factors that determine employee decision to leave the present job.

Page 58: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

206

TABLE: 6.32

INFLUENCES OF ORGANISATIONAL FACTOR TO LEAVE THE

PRESENT JOB BY THE EMPLOYEES IN PUBLIC SECTOR

Variables

Unstandardized

Coefficients

Standardized

Coefficients t Sig.

Co linearity

Statistics

B Std.

Error Beta Tolerance VIF

Constant 2.234 .469 - 4.762 .000 - -

Superior-

subordinate

relationship

and inter-

personal

relationship

.223 .132 .147 1.691 .003 .676 1.479

Organizational

polices -.088 .127 -.063 -.693 .489 .623 1.606

Communication .059 .129 .043 .456 .649 .581 1.720

Working

environment .074 .118 .064 .626 .532 .484 2.065

Organizational

commitment .113 .151 .080 .750 .454 .453 2.206

Level of Significance: 5 per cent

To determine one or more of the independent variables which are

significant, predictors of Organizational factors, the information of public

sector institutions provided in the co-efficient table is examined. All the

above 5 parameters statements are statistically significant. The standardized

co-efficient beta column reveals that Organizational factors of public sector

institutions have beta co-efficient 2.234 which is statistically significant at

0.000.

To assess multi-co linearity one looks at the size of tolerance and VIF

(Variance Inflated Factor). For the tolerance small indicate the absence of

Page 59: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

207

co linearity. The VIF is the inverse (opposite) of tolerance, one looks for

large values. If the tolerance value is smaller than .10, it is concluded that

multi-co linearity is a problem. Similarly, if the VIF is 5 or larger, then

multi-co linearity is a problem. Since the tolerance value is substantially

above .10 and the VIF is smaller than 5 it is concluded that multi-co linearity

among the independent variable is statistically significant.

Predicated Value of

Reason stated by the public employee to leave the present job

= 2.234 (Constant)

± .223 (Superior-subordinate relationship and inter-personal

relationship)

To assess the Organizational factors of public sector institutions

multiple regression modeling has been performed. The relative importance

on the individual dimension is generated with the support of multiple

regression modeling. Out of five variables tested one variable was found

significant i.e., Superior-subordinate relationship and inter-personal

relationship.

It has been clearly pointed out that conflict between superior -

subordinate and among the employees creates reason for an employee to

leave the job in public sector. When people come out of the job, they have

good relationship with their colleagues which motivate them to achieve their

task efficiently.

Page 60: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

208

6.5.12 INFLUENCES OF ORGANISATIONAL FACTOR TO

LEAVE THE PRESENT JOB BY THE EMPLOYEES IN

PRIVATE SECTOR

The regression model has been performed to evaluate reason stated by

the private sector employee to leave the present job. The dependent variable

is the reason for turnover and the independent variables are: X1- superior-

subordinate relationship and inter-personal relationship, X2- organizational

policies, X3- communication, X4- working environment and X5-

organizational commitment.

Reason stated by the private employee to leave the present job = f

(superior-subordinate relationship and inter-personal relationship,

organizational polices, communication, working environment and

organizational commitment).

Measured factors those influence the decision of private sector

organization employees to leave the institutions as a dummy variable and

run the following regression model of the Organizational factors of private

sector institutions. Specifically,

Reason stated by the private employee to leave the present job = α +

β1X1 + β2X2 +β3X3 + β4X4+ β5X5 + e

Where,

Reason stated by the private employee to leave the present job (Y) =

X1 = Superior-subordinate relationship and inter-personal relationship

X2 = Organizational polices

Page 61: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

209

X3 = Communication

X4 = Working environment

X5 = Organizational commitment

Where, α is constant and β1, β2, β3, β4, β5 are coefficients to

estimate, and e is the error term, which the authors assumed as NID for this

research.

TABLE: 6.33

MULTIPLE REGRESSION MODEL SUMMARY

INFLUENCES OF ORGANISATIONAL FACTOR TO LEAVE THE

PRESENT JOB BY THE EMPLOYEES IN PRIVATE SECTOR

R R2

Adjusted

R2

SE F

Value Sig

.327 .107 .088 .952 5.646 .000

Level of Significance: 5 per cent

Y = 2.588-.380 X1+.197 X2+.024 X3+.024 X4+.435 X5

It has been revealed from the above econometric analysis that F ratio

(5.646) is statistically significant at 5 per cent level of significant. This

indicates that the entire regression is significant, that is, it has established

meager 32.70 per cent relationship between the variables tested. Thus it is

concluded that the hypothesis framed stands accepted.

It is inferred that organizational factors like superior-subordinate

relationship and inter-personal relationship; organizational polices;

communication; working environment are the factors that influence the

decision of private sector employees to leave the job.

Page 62: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

210

TABLE: 6.34

INFLUENCES OF ORGANISATIONAL FACTOR TO LEAVE THE

PRESENT JOB BY THE EMPLOYEES IN PRIVATE SECTOR

Variables

Unstandardized

Coefficients

Standardized

Coefficients t Sig.

Co linearity

Statistics

B Std.

Error Beta Tolerance VIF

Constant 2.588 .354 - 7.301 .000 - -

Superior-

subordinate

relationship

and inter-

personal

relationship

-.380 .142 -.277 -2.675 .008 .352 2.838

Organizational

polices .197 .107 .173 1.834 .068 .425 2.355

Communication .024 .128 .017 .183 .855 .427 2.340

Working

environment .024 .125 .020 .189 .850 .354 2.828

Organizational

commitment .435 .140 .344 3.109 .002 .309 3.234

Level of Significance: 5 per cent

To determine one or more of the independent variables which are

significant, predictors of Organizational factors of private sector institutions,

the information provided in the co-efficient table is examined. All the above

5 parameters statements are statistically significant. The standardized co-

efficient beta column reveals that Organizational factors of private sector

institutions have beta co-efficient 2.588 which is statistically significant at

0.000.

To assess multi-co linearity one looks at the size of tolerance and VIF

(Variance Inflated Factor). For the tolerance small indicate the absence of co

linearity. The VIF is the inverse (opposite) of tolerance, one looks for large

Page 63: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

211

values. If the tolerance value is smaller than .10, it is concluded that multi-

co linearity is a problem. Similarly, if the VIF is 5 or larger, then multi-co

linearity is a problem. Since the tolerance value is substantially above .10

and the VIF is smaller than 5 it is concluded that multi-co linearity among

the independent variable is statistically significant.

Predicated Value of

Reason stated by the private employees to leave the present job =

2.588 (Constant)

± .380 (Superior-subordinate relationship and inter-personal

relationship)

± .435 (Organizational commitment)

To assess the Organizational factors of private sector institutions

multiple regression modeling has been performed. The relative importance

on the individual dimension is generated with the support of multiple

regression modeling. Out of five variables tested, two variables are found

significant and they are Superior-subordinate relationship and inter-personal

relationship and Organizational commitment.

It has been inferred that if there is conflict or problem in the

relationship, employees would like to leave the job. On the contrary, if there

is downy relationship among the employees, they would like to stay in the

concern. More committed persons never quit the job. Less committed people

will never consider in quitting the job.

It is clearly understood that private sector employees are more

committed than the public sector employees.

Page 64: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

212

6.6 ROTATION FACTOR ANALYSIS

To examine the suitability of the data for subsequent exploratory

factor analysis (EFA), two tests have been used: Kaiser-Meyer-Olkin

Measure of Sampling Adequacy; and Bartlett's Test of Sphericity. Factor

analysis technique has been applied to find the underlying dimension

(factors) that exists among the 55 variables relating to the overall

organization of public sector.

TABLE: 6.35(a)

CUMULATIVE

FACTOR ANALYSIS OF PUBLIC SECTOR ORGANIZATION

Variables Initial Extraction

Organizational fit

This organization has the same values as I do

with regard to concern for others 1.000 .400

This organization does not have the same value

as I do with regard to fairness 1.000 .034

This organizational has the same values as I do

with regard to honesty 1.000 .419

I feel that my personal values are a good fit with

this organizational culture 1.000 .409

Remuneration and recognition system

Employees are given positive recognition when

they produce high quality work 1.000 .505

This organization pays well 1.000 .225

This organization offers a good benefits package

compared to other organizations 1.000 .635

This organization values individual excellence

over teamwork 1.000 .762

This organization offers good opportunities for

promotion 1.000 .541

Page 65: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

213

Variables Initial Extraction

Opportunities for training and career development

People are properly orientated and trained upon

joining this organization 1.000 .605

This organization does provide regular

opportunities for personal and career

development

1.000 .394

Innovation and creativity are encouraged here 1.000 .607

The organization has career development

activities to help an employee identify/ improve

abilities, goals, strengths & weaknesses

1.000 .686

Challenging employment assignments and opportunities

Employees are offered more challenging work

within the organization 1.000 .459

Employees can work autonomously on their

work assignments 1.000 .326

Employees are skilled to do a number of

different jobs, not just one particular job 1.000 .366

Employees are given opportunities to learn new

things 1.000 .314

Employees are offered a good amount of variety

in their job 1.000 .116

Page 66: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

214

TABLE: 6.35(b)

CUMULATIVE

FACTOR ANALYSIS OF PUBLIC SECTOR ORGANIZATION

Variables Initial Extraction

Leadership practices at the organizational and the team level

The leadership practices in this organization help me

to become a high performing employee 1.000 .545

The leadership practices in this organization enhance

my satisfaction with my job 1.000 .727

The organizational leadership practices are consistent

with my personal values 1.000 .116

The organizational leadership practices make a

positive contribution to the overall effectiveness of

the organization

1.000 .505

Team working is valued in this organization 1.000 .326

Members of my team expect and maintain high

standards of performance 1.000 .593

Team leaders are recognized for promotion and

development 1.000 .485

Each member of my team has a clear idea of the

group’s goals 1.000 .445

Organizational policies

Organizational policies and procedures are helpful,

well understood and up to date 1.000 .333

Progress towards meeting planned objectives is

periodically reviewed 1.000 .472

To organizational structure facilities the way we do

things 1.000 .485

This organizational has a defined vision/mission to

meet its goals 1.000 .535

Communication

This organization keeps employees well informed on

matters important to them 1.000 .466

Page 67: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

215

Variables Initial Extraction

Sufficient effort is made to determine the thoughts

and responses of people who work here 1.000 .472

Communications across all levels in this organization

tend to be good 1.000 .634

Organizational structure encourages horizontal and

vertical communication 1.000 .430

There is trust between employees and their

supervisors/ team leaders 1.000 .491

Working environment

My working life balances with my family life 1.000 .414

Overall this organization is a harmonious place to

work 1.000 .568

This organization regards welfare of its employees as

its first priority. 1.000 .224

Workers and management get along in this

organization 1.000 .608

For the work I do, the physical working conditions

are very pleasant 1.000 .571

This organization offers a lot of security 1.000 .880

A spirit of cooperation and teamwork exists 1.000 .880

Organizational commitment

I feel a strong sense of belonging to this organization 1.000 .542

I could just as well be working for a different

organization if the type of work was similar 1.000 .880

Often I find it difficult to agree with this

organization’s policies on important matters relating

to its employees

1.000 .226

This organization really inspires the very best in me

in the way of job performance 1.000 .402

I find that my values and this organization’s values

are very similar 1.000 .571

There is little to be gained by sticking with this

organization indefinitely 1.000 .880

Page 68: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

216

Variables Initial Extraction

I am willing to put in a great deal more effort than

normally expected to help this organization be

successful

1.000 .568

I am proud to tell others that I am part of this

organization 1.000 .581

I really care about the fate of this organization 1.000 .471

Turnover intention

I plan to work at my present job for as long as

possible 1.000 .406

I will most certainly look for a new job in the near

future 1.000 .413

I plan to stay in this job for at least two to three years 1.000 .451

I would hate a quit this job 1.000 .568

In order to provide a more parsimonious interpretation of the results,

55-item scale has been then analyzed using the Principal Component method

with Varimax rotation.

Factor analysis attempts to identify underlying variables, or factors,

that explain the pattern of correlations within a set of observed variables.

Factor analysis is often used in data reduction to identify a small number of

factors that explain most of the variance observed in a much larger number

of manifest variables. In the current study Rotation Factor analysis is

performed to measure the association among the overall organizations of

public sector respondents. The significance of variables is depicted in the

following table.

Page 69: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

217

TABLE: 6.36 (a)

FACTOR ANALYSIS OF ASSOCIATION OF OVERALL

ORGANIZATION OF PUBLIC SECTOR

Variables

Factors

Top Level Middle

Level Low Level

Person -Organizational Fit

X1-This organization has the

same values as I do with regard

to concern for others

- - -

X2-This organization does not

have the same value as I do with

regard to fairness

- - -

X3-This organizational has the

same values as I do with regard

to honesty

- - -

X4-I feel that my personal values

are a good fit with this

organizational culture

- .557 -

Remuneration and Recognition System

X5-Employees are given positive

recognition when they produce

high quality work

.694 - -

X6-This organization pays well - - -

X7-This organization offers a

good benefits package compared

to other organizations

- - -

X8-This organization values

individual excellence over

teamwork

.835 - -

X9-This organization offers good

opportunities for promotion .522 - -

Opportunities for Training and Career Development

X10-People are properly

orientated and trained upon

joining this organization

.691 - -

Page 70: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

218

Variables

Factors

Top Level Middle

Level Low Level

X11-This organization does

provide regular opportunities for

personal and career development

- - -

X12-Innovation and creativity are

encouraged here .617 - -

X13-The organization has career

development activities to help an

employee identify/ improve

abilities, goals, strengths &

weaknesses

.655 - -

Challenging Employment Assignments And Opportunities

X14-Employees are offered more

challenging work within the

organization

.547 - -

X15-Employees can work

autonomously on their work

assignments

- - -

X16-Employees are skilled to do a

number of different jobs, not just

one particular job

- - -

X17-Employees are given

opportunities to learn new things - - -

X18-Employees are offered a

good amount of variety in their

job

- - -

Level of Significance: 5 per cent

Page 71: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

219

TABLE: 6.36(b)

FACTOR ANALYSIS OF ASSOCIATION OF OVERALL

ORGANIZATION OF PUBLIC SECTOR

Variables

Factors

Top level Middle

level

Low

level

Leadership practices at the organizational and the team level

X19-The leadership practices in this

organization help me to become a high

performing employee

.650 - -

X20-The leadership practices in this

organization enhance my satisfaction with

my job

.748 - -

X21-The organizational leadership practices

are consistent with my personal values - - -

X22-The organizational leadership practices

make a positive contribution to the overall

effectiveness of the organization

.620 - -

X23-Team working is valued in this

organization - - -

X24-Members of my team expect and

maintain high standards of performance - - .677

X25-Team leaders are recognized for

promotion and development .657 - -

X26-Each member of my team has a clear

idea of the group’s goals - - .529

Organizational polices

X27-Organizational policies and procedures

are helpful, well understood and up to date - - .527

X28-Progress towards meeting planned

objectives is periodically reviewed - .681 -

X29-To organizational structure facilities the

way we do things .657 - -

X30-This organizational has a defined

vision/mission to meet its goals - .618 -

Page 72: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

220

Variables

Factors

Top level Middle

level

Low

level

Communication

X31-This organization keeps employees well

informed on matters important to them - .563 -

X32-Sufficient effort is made to determine the

thoughts and responses of people who work

here

- .681 -

X33-Communications across all levels in this

organization tend to be good - .747 -

X34-Organizational structure encourages

horizontal and vertical communication - .614 -

X35-There is trust between employees and

their supervisors/ team leaders - .570 -

Working environment

X36-My working life balances with my

family life - .590 -

X37-Overall this organization is a harmonious

place to work - .640 -

X38 - This organization regards welfare of its

employees as its first priority. - - -

X39-Workers and management get along in

this organization - - .598

X40-For the work I do, the physical working

conditions are very pleasant - - .678

X41-This organization offers a lot of security - - .905

X42-A spirit of cooperation and teamwork

exists - - .905

Organizational commitment

X43-I feel a strong sense of belonging to this

organization - .560 -

X44-I could just as well be working for a

different organization if the type of work was

similar

- - .905

Page 73: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

221

Variables

Factors

Top level Middle

level

Low

level

X45-Often I find it difficult to agree with this

organization’s policies on important matters

relating to its employees

- - -

X46-This organization really inspires the very

best in me in the way of job performance - .527 -

X47-I find that my values and this

organization’s values are very similar - - .678

X48-There is little to be gained by sticking

with this organization indefinitely - - .905

X49-I am willing to put in a great deal more

effort than normally expected to help this

organization be successful

- .587 -

X50-I am proud to tell others that I am part of

this organization - .752 -

X51-I really care about the fate of this

organization

- - -

Turnover intention

X52-I plan to work at my present job for as

long as possible - .625 -

X53-I will most certainly look for a new job

in the near future - - .514

X54-I plan to stay in this job for at least two

to three years .621 - -

X55-I would hate a quit this job - .587 -

Eigen value 18.606 5.109 3.620

% of Variance 33.830 9.289 6.581

Cumulative 33.830 43.119 49.700

Level of Significance: 5 per cent

Page 74: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

222

Three factors have been identified as being maximum percentage

variance accounted. The variable X5, X8, X9, X10, X12, X13, X14, X19, X20, X22,

X25, X29 and X54 is grouped as factor I and it accounts for 33.830 per cent of

the total variance. The variable X4, X28, X30, X31, X32, X33, X34, X35, X36, X37,

X43, X46, X49, X50, and X52 constitute the factor II and it accounts for 9.289 per

cent of the total variance. The variable X24, X26, X39, X40, X41, X42, X44, X47,

X48 and X53 is grouped as factor III and it accounts for 6.581 per cent of the

total variance.

TABLE: 6.37

FACTOR ANALYSIS OF ASSOCIATION OF OVERALL

ORGANIZATION FIT OF PUBLIC SECTOR

Factors Factor Variables included in the factors Cronbach’s

Alpha

F1 Top

level

Employees are given positive recognition when

they produce high quality work, This

organization values individual excellence over

teamwork, This organization offers good

opportunities for promotion, People are

properly orientated and trained upon joining

this organization, Innovation and creativity are

encouraged here, The organization has career

development activities to help an employee

identify/ improve abilities, goals, strengths &

weaknesses, Employees are offered more

challenging work within the organization, The

leadership practices in this organization help me

to become a high performing employee, The

leadership practices in this organization

enhance my satisfaction with my job, The

organizational leadership practices make a

positive contribution to the overall effectiveness

of the organization, Team leaders are

.967

Page 75: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

223

Factors Factor Variables included in the factors Cronbach’s

Alpha

recognized for promotion and development, To

organizational structure facilities the way we do

things and I plan to stay in this job for at least

two to three years

F2 Middle

level

I feel that my personal values are a good fit

with this organizational culture, Progress

towards meeting planned objectives is

periodically reviewed, This organizational has a

defined vision/mission to meet its goals, This

organization keeps employees well informed on

matters important to them, Sufficient effort is

made to determine the thoughts and responses

of people who work here, Communications

across all levels in this organization tend to be

good, Organizational structure encourages

horizontal and vertical communication, There is

trust between employees and their supervisors/

team leaders, My working life balances with

my family life, Overall this organization is a

harmonious place to work, I feel a strong sense

of belonging to this organization, This

organization really inspires the very best in me

in the way of job performance, I am willing to

put in a great deal more effort than normally

expected to help this organization be successful,

I am proud to tell others that I am part of this

organization, I plan to work at my present job

for as long as possible and I would hate a quit

this job

.955

F3 Low

level

Members of my team expect and maintain high

standards of performance, Each member of my

team has a clear idea of the group’s goals,

Organizational policies and procedures are

helpful, well understood and up to date,

Workers and management get along in this

organization, For the work I do, the physical

working conditions are very pleasant, This

.940

Page 76: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

224

Factors Factor Variables included in the factors Cronbach’s

Alpha

organization offers a lot of security, A spirit of

cooperation and teamwork exists, I could just

as well be working for a different organization

if the type of work was similar, I find that my

values and this organization’s values are very

similar, There is little to be gained by sticking

with this organization indefinitely and I will

most certainly look for a new job in the near

future

Source: Computed From Primary Data

The rotation factor analysis has been used to iterate variable those

value above 0.50 co-efficient levels. From the data description presented in

the above table it could be understood that the top level executives have

expressed high degree of belonging and pride of working in a particular

public sector organization, whereas the aspiration of the middle and bottom

level i.e., entry level employees are found to be more towards career up

gradation, moving up in the job position and searching for better

opportunities, as it has been inferred that in a period of 2-3 year the middle

level employee tend to search for better opportunities and career

promotions. The result of reliability analysis declares that the Cronbach’s

Alpha value .967, .955 and .940 establishes significant and positive

association between the variables tested. It establishes the existence of

internal consistency with data collected at time of filed survey. The results

of the test establish consistency in the opinion of sample population on

overall organization of public sector.

Page 77: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

225

To examine the suitability of the data for subsequent exploratory

factor analysis (EFA), two tests were used: Kaiser-Meyer-Olkin Measure of

Sampling Adequacy; and Bartlett's Test of Sphericity. Factor analysis

technique has been applied to find the underlying dimension (factors) that

exists among the 55 variables relating to the overall organization of private

sector.

TABLE: 6.38(a)

CUMULATIVE

FACTOR ANALYSIS OF PRIVATE SECTOR ORGANIZATION

Variables Initial Extraction

Organizational fit

This organization has the same values as I do

with regard to concern for others 1.000 .366

This organization does not have the same value

as I do with regard to fairness 1.000 .028

This organizational has the same values as I do

with regard to honesty 1.000 .507

I feel that my personal values are a good fit with

this organizational culture 1.000 .324

Remuneration and recognition system

Employees are given positive recognition when

they produce high quality work 1.000 .322

This organization pays well 1.000 .253

This organization offers a good benefits package

compared to other organizations 1.000 .427

This organization values individual excellence

over teamwork 1.000 .405

This organization offers good opportunities for

promotion 1.000 .389

Page 78: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

226

Variables Initial Extraction

Opportunities for training and career development

People are properly orientated and trained upon

joining this organization 1.000 .478

This organization does provide regular

opportunities for personal and career

development

1.000 .413

Innovation and creativity are encouraged here 1.000 .435

The organization has career development

activities to help an employee identify/ improve

abilities, goals, strengths & weaknesses

1.000 .331

Challenging employment assignments and opportunities

Employees are offered more challenging work

within the organization 1.000 .313

Employees can work autonomously on their

work assignments 1.000 .419

Employees are skilled to do a number of

different jobs, not just one particular job 1.000 .286

Employees are given opportunities to learn new

things 1.000 .423

Employees are offered a good amount of variety

in their job 1.000 .233

TABLE: 6.38(b)

CUMULATIVE

FACTOR ANALYSIS OF PRIVATE SECTOR ORGANIZATION

Variables Initial Extraction

Leadership practices at the organizational and the team level

The leadership practices in this organization help

me to become a high performing employee 1.000 .446

The leadership practices in this organization

enhance my satisfaction with my job 1.000 .465

The organizational leadership practices are 1.000 .233

Page 79: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

227

Variables Initial Extraction

consistent with my personal values

The organizational leadership practices make a

positive contribution to the overall effectiveness

of the organization

1.000 .369

Team working is valued in this organization 1.000 .419

Members of my team expect and maintain high

standards of performance 1.000 .388

Team leaders are recognized for promotion and

development 1.000 .439

Each member of my team has a clear idea of the

group’s goals 1.000 .215

Organizational polices

Organizational policies and procedures are

helpful, well understood and up to date 1.000 .521

Progress towards meeting planned objectives is

periodically reviewed 1.000 .449

To organizational structure facilities the way we

do things 1.000 .439

This organizational has a defined vision/mission

to meet its goals 1.000 .264

Communication

This organization keeps employees well informed

on matters important to them 1.000 .316

Sufficient effort is made to determine the thoughts

and responses of people who work here 1.000 .449

Communications across all levels in this

organization tend to be good 1.000 .297

Organizational structure encourages horizontal

and vertical communication 1.000 .322

There is trust between employees and their

supervisors/ team leaders 1.000 .324

Working environment

My working life balances with my family life 1.000 .274

Overall this organization is a harmonious place to

work 1.000 .232

Page 80: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

228

Variables Initial Extraction

This organization regards welfare of its employees

as its first priority 1.000 .216

Workers and management get along in this

organization 1.000 .288

For the work I do, the physical working conditions

are very pleasant 1.000 .528

This organization offers a lot of security 1.000 .966

A spirit of cooperation and teamwork exists 1.000 .966

Organizational commitment

I feel a strong sense of belonging to this

organization 1.000 .403

I could just as well be working for a different

organization if the type of work was similar 1.000 .966

Often I find it difficult to agree with this

organization’s policies on important matters

relating to its employees

1.000 .092

This organization really inspires the very best in

me in the way of job performance 1.000 .435

I find that my values and this organization’s

values are very similar 1.000 .528

There is little to be gained by sticking with this

organization indefinitely 1.000 .966

I am willing to put in a great deal more effort than

normally expected to help this organization be

successful

1.000 .614

I am proud to tell others that I am part of this

organization 1.000 .457

I really care about the fate of this organization 1.000 .487

Turnover intention

I plan to work at my present job for as long as

possible 1.000 .417

I will most certainly look for a new job in the near

future 1.000 .087

I plan to stay in this job for at least two to three

years 1.000 .082

I would hate a quit this job 1.000 .614

Page 81: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

229

In order to provide more parsimonious interpretation of the results,

55-item scale was then Factor analyzed using the Principal Component

method with Varimax rotation.

Factor analysis attempts to identify underlying variables, or factors,

that explain the pattern of correlations within a set of observed variables.

Factor analysis is often used in data reduction to identify a small number of

factors that explain most of the variance observed in a much larger number

of manifest variables. In the current study Rotation Factor analysis is

performed to measure the association between the overall organizations of

private sector of the study respondents. The significance of variables is

depicted in the following table.

Page 82: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

230

TABLE: 6.39 (a)

FACTOR ANALYSIS OF ASSOCIATION OF OVERALL

ORGANIZATION OF PRIVATE SECTOR

Variables Factors

Top level Middle level Low level

Person-Organizational Fit

X1-This organization has the same

values as I do with regard to

concern for others

.555 - -

X2-This organization does not

have the same value as I do with

regard to fairness

- - -

X3-This organizational has the

same values as I do with regard to

honesty

.624 - -

X4-I feel that my personal values

are a good fit with this

organizational culture

.544 - -

Remuneration and Recognition System

X5-Employees are given positive

recognition when they produce

high quality work

.548 - -

X6-This organization pays well - - -

X7-This organization offers a good

benefits package compared to

other organizations

.624 - -

X8-This organization values

individual excellence over

teamwork

.592 - -

X9-This organization offers good

opportunities for promotion .607 - -

Page 83: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

231

Variables Factors

Top level Middle level Low level

Opportunities for Training and Career Development

X10-People are properly orientated

and trained upon joining this

organization

.642 - -

X11-This organization does

provide regular opportunities for

personal and career development

.579 - -

X12-Innovation and creativity are

encouraged here .589 - -

X13-The organization has career

development activities to help an

employee identify/ improve

abilities, goals, strengths &

weaknesses

.507 - -

Challenging employment Assignments and Opportunities

X14-Employees are offered more

challenging work within the

organization

.536 - -

X15-Employees can work

autonomously on their work

assignments

- - .530

X16-Employees are skilled to do a

number of different jobs, not just

one particular job

- - -

X17-Employees are given

opportunities to learn new things .623 - -

X18-Employees are offered a good

amount of variety in their job .649 - -

Level of Significance: 5 per cent

Page 84: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

232

TABLE: 6.39 (b)

FACTOR ANALYSIS OF ASSOCIATION OF OVERALL

ORGANIZATION OF PRIVATE SECTOR

Variables Factors

Top level Middle level Low level

Leadership practices at the organizational and the team level

X19-The leadership practices in this

organization help me to become a high

performing employee

.595 - -

X20-The leadership practices in this

organization enhance my satisfaction with

my job

- - -

X21-The organizational leadership practices

are consistent with my personal values .559 - -

X22-The organizational leadership practices

make a positive contribution to the overall

effectiveness of the organization

- .530

X23-Team working is valued in this

organization .585 - -

X24-Members of my team expect and

maintain high standards of performance .575 - -

X25-Team leaders are recognized for

promotion and development .636 - -

X26-Each member of my team has a clear

idea of the group’s goals .653 - -

Organizational polices

X27-Organizational policies and procedures

are helpful, well understood and up to date .575 - -

X28-Progress towards meeting planned

objectives is periodically reviewed - - -

X29-To organizational structure facilities the

way we do things - - -

X30-This organizational has a defined

vision/mission to meet its goals .653 - -

Page 85: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

233

Variables Factors

Top level Middle level Low level

Communication

X31-This organization keeps employees well

informed on matters important to them .544 - -

X32-Sufficient effort is made to determine the

thoughts and responses of people who work

here

- - -

X33-Communications across all levels in this

organization tend to be good - - -

X34-Organizational structure encourages

horizontal and vertical communication - - -

X35-There is trust between employees and

their supervisors/ team leaders .534 - -

Working environment

X36-My working life balances with my

family life .540 - -

X37-Overall this organization is a

harmonious place to work - .947 -

X38- This organization regards welfare of its

employees as its first priority - - -

X39-Workers and management get along in

this organization .573 - -

X40-For the work I do, the physical working

conditions are very pleasant - .947 -

X41-This organization offers a lot of security .522 - -

X42-A spirit of cooperation and teamwork

exists .540 - -

Organizational commitment

X43-I feel a strong sense of belonging to this

organization - .947 -

X44-I could just as well be working for a

different organization if the type of work

was similar

.625 - -

Page 86: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

234

Variables Factors

Top level Middle level Low level

X45-Often I find it difficult to agree with

this organization’s policies on important

matters relating to its employees

- - -

X46-This organization really inspires the

very best in me in the way of job

performance

.655 - -

X47-I find that my values and this

organization’s values are very similar - - -

X48-There is little to be gained by sticking

with this organization indefinitely - - -

X49-I am willing to put in a great deal more

effort than normally expected to help this

organization be successful

- - -

X50-I am proud to tell others that I am part

of this organization - - -

X51-I really care about the fate of this

organization - - -

Turnover intention

X52-I plan to work at my present job for as

long as possible .575 - -

X53-I will most certainly look for a new job

in the near future - - -

X54-I plan to stay in this job for at least two

to three years - - -

X55-I would hate a quit this job .625 - -

Eigen value 17.234 2.926 2.274

% of Variance 31.334 5.320 4.135

Cumulative 31.334 36.654 40.790

Level of Significance: 5 per cent

Three factors have been identified as being maximum percentage

variance accounted. The variable X1, X3, X4, X5, X7, X8, X9, X10, X11, X12, X13,

Page 87: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

235

X14, X17, X18, X19, X21, X23, X24, X25, X26, X27, X30, X31, X35, X36, X39, X41, X42, X44,

X46, X52 and X55 is grouped as factor I and it accounts for 31.334 per cent of

the total variance. The variable X37, X40 and X43 constitute the factor II and it

accounts for 5.320 per cent of the total variance. The variable X15 and X22 is

grouped as factor III and it accounts for 4.135 per cent of the total variance.

TABLE: 6.40

FACTOR ANALYSIS OF ASSOCIATION OF OVERALL

ORGANIZATION FIT OF PRIVATE SECTOR

Factors Factor Variables included in the factors Cronbach’s

Alpha

F1 Top

level

This organization has the same values as I do

with regard to concern for others, This

organizational has the same values as I do

with regard to honesty, I feel that my

personal values are a good fit with this

organizational culture, Employees are given

positive recognition when they produce high

quality work, This organization offers a good

benefits package compared to other

organizations, This organization values

individual excellence over teamwork, This

organization offers good opportunities for

promotion, People are properly orientated

and trained upon joining this organization,

This organization does provide regular

opportunities for personal and career

development, Innovation and creativity are

encouraged here, The organization has career

development activities to help an employee

identify/ improve abilities, goals, strengths &

weaknesses, Employees are offered more

challenging work within the organization,

Employees are given opportunities to learn

new things, Employees are offered a good

amount of variety in their job, The leadership

practices in this organization help me to

become a high performing employee, The

.964

Page 88: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

236

organizational leadership practices are

consistent with my personal values, Team

working is valued in this organization,

Members of my team expect and maintain

high standards of performance, Team leaders

are recognized for promotion and

development, Each member of my team has

a clear idea of the group’s goals,

Organizational policies and procedures are

helpful, well understood and up to date, This

organizational has a defined vision/mission

to meet its goals, This organization keeps

employees well informed on matters

important to them, There is trust between

employees and their supervisors/ team

leaders, My working life balances with my

family life, Workers and management get

along in this organization, This organization

offers a lot of security, A spirit of

cooperation and teamwork exists, I could just

as well be working for a different

organization if the type of work was similar,

This organization really inspires the very

best in me in the way of job performance, I

plan to work at my present job for as long as

possible and I would hate a quit this job.

F2 Middle

level

Overall this organization is a harmonious

place to work, For the work I do, the physical

working conditions are very pleasant, I feel a

strong sense of belonging to this

organization,

.945

F3 Low

level

Employees can work autonomously on their

work assignments and The organizational

leadership practices make a positive

contribution to the overall effectiveness of

the organization

.939

Source: Computed From Primary Data

In comparison to the public sector employees the private sector

workers have expressed higher degree of organization fit and the employees’

Page 89: EMPLOYEES’ PERCEPTION ON ORGANISATIONAL COMMITMENT …shodhganga.inflibnet.ac.in/bitstream/10603/45035/12/12_chapter 6.p… · willing to display greater organizational citizenship

237

perception towards HRM practices, team work, inter-intra department/

superior-subordinate association apper to be positive. Thus, as far as the

sample subjects are considered in this study, their attrition rate is very

minimal. The result of reliability analysis declares that the Cronbach’s Alpha

value .964, .945 and .939 establishes significant and positive association

between the variables tested. It establishes the existence of internal

constancy with data collected at time of field survey. The results of the test

establish consistency in the opinion of respondents towards the sample

population on overall organization of private sector.

6.6 CONCLUSION

From the elaborate data analysis, it has been inferred that employees’

commitment towards their employer and the intention of the employees to

retention or leave the organization is observed to be more among the private

sector workers, who are comparatively young in age than the public sector

workers and more educated. These category of workers due to their job

inconsistency, lack of job security, also with an ambition to achieve more,

are ready for more committed and talented jobs and also to seek better job

tend to shift from one organization to another in every 3-5 years of intervals.

Moreover, these employees are in middle and low level cadres, so they seek

higher and better work and job opportunities.