Quality of Work Life and its relationship with Organisational CommitmentA study in Banking Sector

A Synopsis submitted

To

U.B.S, Panjab University

Chandigarh

On

September 11, 2012

Submitted By:

Jyoti

MBA (HR) Sem-3

Roll No. 11

Table of Contents

1. INTRODUCTION.......................................................................................................................2

1.1 Quality of work life................................................................................................................2

1.2 Organisational Commitment..................................................................................................2

2. REVIEW OF LITERATURE......................................................................................................3

2.1 Quality of Work Life..............................................................................................................3

2.2 Importance of Quality of work life........................................................................................4

2.3 What is Organisational Commitment?...................................................................................4

2.4 Significance of Organisational Commitment.........................................................................5

2.5 Quality of Work life and Organisational Commitment.........................................................5

3. NEED FOR STUDY....................................................................................................................6

4. RESEARCH OBJECTIVES........................................................................................................7

5. RESEARCH METHODOLOGY................................................................................................7

5.1 Research Design.....................................................................................................................7

5.2 Sampling technique................................................................................................................7

5.3 Sample Selection....................................................................................................................8

5.4 Sample size............................................................................................................................8

Banking Sector in India............................................................................................................8

5.5 Hypothesis..............................................................................................................................8

5.6 Method of Collecting Data.....................................................................................................9

a. Variables...........................................................................................................................9

b. Instruments used...............................................................................................................9

5.7 Data Analysis Techniques......................................................................................................9

a. Descriptive statistics...........................................................................................................10

b. Inferential statistics.............................................................................................................10

6. TIMELINE................................................................................................................................11

7. Bibliography..............................................................................................................................12

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1. INTRODUCTION

1.1 Quality of work life

In today‘s high competitive scenario, people are realizing the importance of relationships and are

trying to strike balance between career and personal lives. And so quality of work life can have a

far reaching impact on organizational commitment. Quality of work life takes into consideration

the socio-psychological needs of employees. It not only focuses on social needs of employees

but also on growth needs by providing vertical growth opportunities.

QWL may be defined as subjective well-being. It represents the relationship between employees

and their total working environment. QWL in a broader sense seeks to achieve integrations

among technological, human, organizational and social demands which are often contradictory

and conflicting. It is not based on a particular theory. It does not advocate a particular technique

for application. Instead, it is more concerned with the overall climate of work and the impact that

the work has on people as well as on organization effectiveness. Direct participation of

employees in problem solving and decision making particularly in areas related to their work is

considered to be necessary condition for providing greater autonomy and opportunity for self-

direction and self-control. This will result in upgrading the QWL.

1.2 Organisational Commitment

Commitment is the function of inherent sincerity of an individual, which develops the capacity to

work hard and give good results even in poor and adverse circumstances. Effective employees

consider commitment as both, the aspect of an individual and organizational importance. The

person who is committed towards his job works with sincerity and honesty and efficiently

sustains hard work which gives him internal satisfaction of pulling his optimum strength into

work.

Organizational commitment is generally defined as the relative strength of an individual's

identification with and involvement in a particular organization. Conceptually, it can be

characterized by at least three factors: a strong belief in and acceptance of the organization's

goals and values, which indicates affective or value commitment; a willingness to exert

considerable effort on behalf of the organization; and a strong desire to maintain membership in

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the organization, which captures workers' attachment to organizations (Kalleberg & Mastekaasa.,

1994) (Mowday, Porter, & Steers, 1982).

2. REVIEW OF LITERATURE

2.1 Quality of Work Life

The term ‘Quality of Work Life (QWL)’ is reputed to have originated from an international

labour relations conference in 1972 at Arden House, Columbia University, New York where

significant focus was placed on developing a credible and functional measure of QWL to make

working environments more humane for workers (Davis & Cherns, 1975). While there seems to

be no agreed upon definition of quality of work life, it has been used as a construct which relates

to the well-being of employees. Some say that (Mills, 1978) may have first coined the term

‘quality of work life’ and he suggested that QWL had moved into the permanent vocabulary of

both unions and management. Carayon et al. (2003) describes QWL as "the quality of the

relationship between employees and the total working environment, with human dimensions

added to the usual technical and economic considerations" (Carayon, Hoonakker, Marchand, &

Schwarz, 2003).

Various organisational factors have been linked to the Quality of Work Life construct such as job

satisfaction, organisational effectiveness, team effectiveness, organisational commitment and a

lower level of employee turnover and personal alienation (Berg, 2011).

QWL is a comprehensive and expanded program that increases member satisfaction, reinforces

their learning with the environment, and helps them to manage change. Member dissatisfaction

of QWL is a problem that harms all employees – without considering rank and situation. The aim

of many organizations is increasing members’ satisfaction in all levels. However, this is a

complex problem, because the separation and determination that what factors relate to QWL is

difficult (Saraji & Dargahii, 2006). In this study, employees felt that three most factors of

Quality of work life that make work a positive experience are occupational health and safety at

work, monetary compensation and support to employees by intermediate managers/ supervisors.

Findings by Saklani (2010) as given by (Berg, 2011), regarding various QWL components and

their importance to non-managerial employees in India indicated employees regarded job

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security, fringe benefits and welfare measures, adequate and fair compensation and opportunity

for continued growth in their careers as the most important components of QWL.

2.2 Importance of Quality of work life

There is no denying the importance of QWL as most employees’ lives are tied to and organised

according to the actions of their organisations and most individuals spend a great deal of their

time participating in job or work related activities and even plan their days, living standards and

social interaction around the demands of their work – and to a large extent, people define

themselves and others in terms of their work, making QWL in organisations a major component

of quality of life in general.

(QWL) is essential for organizations to continue to attract and retain employees. According to

(Akdere, 2006), the issue of work life quality has become critical in the last two decades due to

increasing demands of today’s business environment and family structure. From a business

perspective, quality of work life (QWL) is important since there is evidence demonstrating that

the nature of the work environment is related to satisfaction of employees and work-related

behaviours (Greenhaus, Collins, & Shaw, 2003).

May, Lau and Johnson (1999) suggested that companies offering better QWL and supportive

work environments would likely gain leverage in hiring and retaining valuable people and

companies with high QWL enjoy exceptional growth and profitability (Berg, 2011). QWL is

synonymous with employability rate, job security, earnings and benefits (Korunka, Hoonakker,

& Carayon, 2008).

Apart from predicting important organisational variables, research also indicates QWL

significantly influences the non-working life of an individual and is an important predicator of

life satisfaction, health and psychological wellbeing of employees (Martel & Dupuis, 2006).

2.3 What is Organisational Commitment?

Organizational commitment is generally defined as the relative strength of an individual's

identification with and involvement in a particular organization (Yang, 2003).

According to (Mowday & Steers, 1979), organizational commitment refer to the extent to which

the employee demonstrate a strong desire to remain the member of the organization, the degree

of willingness to exert high level of efforts for organization and belief and acceptance of the

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major goals and values of the organization. (Mathieu & Zajac, 1990) has defined organizational

commitment in several ways that signifies a bond between the individual and the organization.

The three-component model of commitment was developed by (Allen & Meyer, 1990). This

model proposes that organizational commitment is experienced by the employee as three

simultaneous mind-sets encompassing affective, normative, and continuance organizational

commitment. Affective Commitment reflects commitment based on emotional ties the employee

develops with the organization primarily via positive work experiences. Normative Commitment

reflects commitment based on perceived obligation towards the organization, for example rooted

in the norms of reciprocity. Continuance Commitment reflects commitment based on the

perceived costs, both economic and social, of leaving the organization.

On the other hand, other scholars (e.g. Becker, 1960) suggest a cost based commitment, where an

individual assesses the perceived 'gains' associated with continued membership of an

organisation and the perceived 'costs' associated with leaving and the ultimate decision (leaving

or staying) is made based on its comparative advantage (Becker, 1960).

2.4 Significance of Organisational Commitment

According to (Mueller, 1994), many modern management techniques attempts to indirectly

control employees by fostering organizational commitment. Managers try to reinforce employee

loyalty as organizationally committed individuals are reported to be better performers, (Jauch,

Osborn, & Glueck, 1978). They are more aligned with enterprise goals, and are thought to be less

likely than their uncommitted counterparts to seek employment elsewhere (Mowday & Steers,

1979). (Baugh & Roberts, 1994) suggested that strong levels of positive work outcomes are

recorded by individuals who are committed to both their organization and their career, while

those who are not committed to either, record weak level. Studies have concluded that committed

employees’ remains with the organization for longer periods of time than those which are less

committed have a stronger desire to attend work, and a more positive attitude about their

employment

2.5 Quality of Work life and Organisational Commitment

A meta-analysis done by (Lewis, Brazil, Krueger, Lohfeld, & Tjam, 2001), suggests QWL

factors include reduced work stress; organisational commitment and belonging ; positive

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communication; autonomy; recognition; predictability of work activities; fairness; clear locus of

control and organisational decisions.

According to Gnanayudam & Dharmasiri. (2003), the Quality of work life (QWL) plays an

important role in enhancing organizational commitment of employees (Gnanayudam &

Dharmasiri, 2007).

As per the research of Bhopatkar and Nema (2008), Quality of work life has a significant effect

on organizational commitment. This indicates that employees with favourable quality of work

life are more committed and maintain a long term relationship with their organizations as

compared to those with unfavourable quality of work life (Bhopatkar & Nema, 2003). The

quality of work life literature tends to regard the outcome of improved job conditions as an

increase in general work satisfaction, low absenteeism, and commitment, which is generally

defined in the psychological literature as a preference for remaining in the job and a sense of

identification with the organization ( Louis, 1998).

The teachers' quality of work life is also associated with variables such as commitment and sense

of efficacy ( Louis, 1998). In the study (Normala, 2010), it is shown that there is strong

relationship between Quality of work life and Organisational Commitment.

3. NEED FOR STUDY

The main objective of this study is to determine the relationship between the Quality of Work

Life that the employee has and his organizational commitment. In particular, this research studies

the effect of Quality of work life on the Organisational commitment of the employee. The

significance of the study is for both for the employee and managers. The study significance of

the study is that it would assist decision makers in identifying key workplace issues in order to

develop strategies to address and improve the quality of working conditions and increase the

commitment of the employees in the organization. In study of ( Khan , Ziauddin, Jam, & Ramay,

2010),Out of the three dimensions of Organisational Commitment, all the dimensions of

organizational commitment showed significant effects on Job performance. In the study by

(Ayub, 2008), it was found that organisational commitment has direct impact on the turnover

intentions of employee and more organisational commitment leads to less turnover. Increased

commitment would result in increased employee performance and retention which is important

for every organisation.

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4. RESEARCH OBJECTIVES

The following are the research objectives of this study:-

Objective 1: To identify the instrument for measuring Quality of Work life.

Objective 2: To identify the instrument for measuring Organisational Commitment.

Objective 3: To measure Quality of Work life.

Objective 4: To measure Organisational Commitment.

Objective 5: To study the relationship between quality of work life and organizational

commitment of the employees.

Objective 6: To examine whether the variance in the dimensions of Organisational Commitment

can be explained by considering the dimensions of Quality of work life as independent variables.

5. RESEARCH METHODOLOGY

5.1 Research Design

This study is a descriptive quantitative research study. The Descriptive research attempts to

describe certain researchable phenomena in already defined subject related paradigms.

5.2 Sampling technique

In this research, Probability Random sampling will be used in the first stage for selecting the

organisations from the banking sector for collecting data. A probability or random sample

describes a sample selected in such a way that all members in the population have an equal

chance of selection. Probability sampling, or random sampling, is a sampling technique in which

the probability of getting any particular sample may be calculated. A list of banks operating in

India will be collected from the Indian Banks’ Association’s website. Random table will be

applied to select 4 banks from the list.

In the second stage, Non-probability Convenience sampling will be used to select the employees

to fill the questionnaires. Non-probability sampling does not involve random selection.

Convenience sampling is a sampling where the members of the population are chosen based on

their relative ease of access.

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5.3 Sample Selection

The sample selected for this study includes the employees of the organisations under the banking

industry. 4 organisations will be chosen from the banking industry.

5.4 Sample size

A sample size of the research would consist of 150 employees working in the banking sector.

Banking Sector in India

The Banking industry plays a dynamic role in the economic development of a country. The

growth story of an economy depends on the robustness of its banking industry. Banks act as the

store as well as the power house of the country’s wealth. They accept deposits from individuals

and corporates and lends to the businesses. They use the deposits collected for productive

purposes which help in the capital formation in the country.

According to an Indian Bank’s Association’s report titled ‘Being five star in productivity –

road map for excellence in Indian banking’, India’s gross domestic product (GDP) growth

will make the Indian banking industry the third largest in the world by 2025. Wholesale banking

revenues which in India account for about 30 percent of the total banking system revenue is

expected to more than double, from the current level of about USD 16 billion to about 35 to 40

billion USD by 2015.

The research on the Quality of work life and its relationship with Organisational Commitment

has been done in the IT sector and manufacturing industry in India, so this research in the

banking sector might bring some new results for the decision makers.

5.5 Hypothesis

The following are the alternate hypothesis of this study:-

H1: Quality of work life as well as its dimensions will differ within the organisations in the

banking sector.

H2: Organisational Commitment as well as its dimensions will differ within the organisations in

the banking sector.

H3: There is significant relationship between the Quality of work life and Organisational

commitment.

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H4: The dimensions of Quality of work life will serve to significantly explain the variance in

Organisational Commitment and its dimensions in the banking sector.

5.6 Method of Collecting Data

As per the research objectives, the survey method will be used to collect the data. A structured

questionnaire will be used to collect the data from the employees.

a. Variables

The Quality of work life is the independent variable in the study. It has the following 12

dimensions: skill discretion, decision authority, task control, work and time pressure, role

ambiguity, physical exertion, hazardous exposure, job insecurity, lack of meaningfulness, social

support from supervisor and social support from co-workers and the outcome variable of job

satisfaction.

Organisational Commitment is the dependent variable in the study and it has the following

dimensions: affective, normative, and continuance organizational commitment

b. Instruments used

The Quality of work life Questionnaire developed by Margot Van der Doef & Stan Maes (1999)

will be used for measuring the Quality of work life of the employees (Van der doef & Maes,

1999). It consists of 60 questions for the before mentioned 12 dimensions of Quality of work life.

Meyer & Allen’s (1990) Organizational Commitment Questionnaire (OCQ) will be used to

measure the Organisational Commitment of the employees (Allen & Meyer, 1990). It consists of

24 questions for the 3 dimensions of Organisational Commitment.

5.7 Data Analysis Techniques

The statistical programme used to determine the above was the SPSS Statistical 17.0 (SPSS,

2008).

Reliability of instruments -- The reliability of the instruments is determined by

computation of the Cronbach alpha. The Cronbach alpha measure estimates the reliability

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based on the number of the items in the test and the average inter-correlation among test

items. It varies from 0 to 1.0. A common rule is that the indicators should have a

Cronbach's alpha of 0.7 to judge the set reliable.

a. Descriptive statistics

Descriptive statistics are used to describe the basic features of the data in a study and provides

simple summaries about the sample and the measures.

Means are used to describe the results. The mean is the sum of scores divided by the

number of scores across the distribution. The calculated mean is used to compute the

average scores that are obtained for the different components of the questionnaires.

Correlation describes the degree of relationship between two variables – the strength of

this relationship is represented by a correlation coefficient. Pearson’s Product Moment

Correlation will be used to determine the strength of a relationship between the two

variables within this study. The correlation coefficient may take on any value between 1

and -1. A correlation of +1.00 is indicative of a perfect positive relationship, a correlation

of 0.00 indicates no relationship, and a correlation of -1.00 indicates a perfect negative

relationship between variables.

Regression analysis includes many techniques for modelling and analysing several

variables, when the focus is on the relationship between a dependent variable and one or

more independent variables. In this research there is only one independent variable. It

helps to understand how the value of dependent variable changes when an independent

variable is varied.

b. Inferential statistics

Inferential statistics are used to reach conclusions which extend beyond the immediate data alone

i.e. to make inferences from the data obtained to more general conditions.

T-Test - The t-test assesses whether the means of two groups are statistically different

from each other. The t-test compares the actual difference between two means in relation

to the variation in the data (expressed as the standard deviation of the difference between

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the means). The t-test, one-way Analysis of Variance (ANOVA) and a form of regression

analysis are mathematically equivalent.

6. TIMELINE

1st review: Dec 12, 2012

Will prepare the final draft of the questionnaire and administer the questionnaire.

2nd review: Feb 27, 2013

Will complete data collection, data entry, data checking and data analysis.

Final Submission: April 3, 2013

Will submit the complete project report.

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7. Bibliography

Akdere, M. (2006). Improving QWL: Implications for Human Resources. The Business Review.

Allen, P., & Meyer, J. (1990). The measurement and antecedents of affective, continuance and

normative commitment to the organization. Journal of Occupational Psychology.

Ayub, S. (2008). Impact Of Organizational Commitment On Turnover Intentions Of Employees.

National University Of Modern Languages.

Baugh, S., & Roberts, R. (1994). Professional and organizational commitment among engineers:

conflicting or complementing? Engineering Management, IEEE.

Becker, H. (1960). Notes on the concept of commitment. American journal of Sociology.

Berg, Y. v. (2011). The relationship between Organisational Trust and Quality of Work Life.

Bhopatkar, N., & Nema, J. (2003). Effect of Quality of Work life on Organizational Commitment

in service sector in Indore. Indore, India.

Carayon, P., Hoonakker, P., Marchand, S., & Schwarz, J. (2003). Job characteristics and quality

of working life in the Information Technology Work Force: The role of gender.

Davis, L., & Cherns, A. (1975). The Quality of Working Life. New York.

Gnanayudam, J., & Dharmasiri, A. (2007). The Influence of Quality of Work-life on

Organizational Commitment : A Study of the Apparel Industry.

Greenhaus, J. H., Collins, K. M., & Shaw, J. D. (2003). The relation between work-family

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Jauch, L., Osborn, R., & Glueck, W. (1978). Organizational loyalty, professional commitment,

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