"A Study on Employee Commitment Among IT Professional in Bangalore"

1.INTRODUCTION

Information technology is the booming industry in India. IT Services and Business Process

Outsourcing (BPO) are the two major components of Information Technology. This sector has

contributed 7.7% in Indian GDP in 2017.

Indian IT sector was originated in Mumbai in 1967. Due to globalization and international

economic integration major Indian economic reforms took place in 1991. Software Technology

Park in India(STPI) was established by Indian Government in 1991. STPI facilitated software

technology parks in various cities. Firms were using these satellite links for communication.

Information Technology Act has been passed in the year 2000, to legalize procedures for

electronic transactions and e-commerce. India is the largest exporter of IT in the world economy.

Technology enabled IT services contributes nearly 53% of India GDP in 2018. Service sector is

the is the major contributor in the Indian economy.

Tata Consultancy Limited, Wipro, Infosys, Cognizant and HCL Technologies are among top

companies in India. They have presence all over the world providing employments and

contributing towards the economy of foreign countries. In India Major IT Hubs are in cities like

Bangalore, Hyderabad, Pune, Kolkata, Chennai, Mumbai, NCR, Noida and Gurgaon.

Information Technology is the use of computers, softwares, networks, infrastructure, process to

create, store and transfer information in the electronic form. Bangalore is known as the Silicon

Valley of India. Name implies the largest clusters of IT Hub of India.

There are many IT and ITes(Information Techology enabled services) companies are operating

in Bengaluru. At present situation, where organizations look for an competitive edge over others,

factors like motivation, retention, benefits, commitment, work life balance and work culture

plays an important role. Regardless of the economic condition, the objective is to make a

workplace which is motivating and engaging, where employees wish to stay, develop and

contribute their insight, experience and aptitude. Inspiration is a stimulating power that makes a

person to make a move to achieve an ideal objective. There are two types of motivators financial

and non-financial in a work place. Financial motivators are monetary benefits provided by

organization to their employees for their services. Non-financial motivators are the benefits

which is not directly related with money. Promotion, club membership, loans, new assignments

are some examples of non-financial motivators. Strategies of employee retention provide

effective correspondence to employees to increase commitment for achieving objectives of the

corporate initiatives. In spite of Organizations attempt to increase workforce, their motivation,

morale, satisfaction level and aptitude attrition rate is high in software industry. Retention

policies and strategies are almost similar for most software industries the only difference is the

employees working in the various organizations. Therefore, it is important to understand the

nature of workforce within the organization and to identify the key factors which will reduce

retention rate and improve employee’s commitment towards the organization.

AT present IT companies are streamlining their strategies to achieve business targets and

sustainable development. Employees engagement is the key factor for organizational effectiveness

therefore management need to focus on aligning workforce and engaging them effectively and
efficiently. Enhanced commitment results in higher performance, higher customer satisfaction and

higher employee retention. Only those organizations which have proper workforce management

system can sustain and achieve increased organization results. Performance of the Organization is

often measured by effectiveness.

Due to change in work culture, stiff market competition and demand for services has pushed

organizations to focus on employee engagement. Required qualification, talent and experience are

not enough to enable an organization to achieve its goals. It is crucial to manage these employees in a

appropriate way as per the need of the organization. Company need to ensure that their employees

should perform at the peak level of their potential. Concept of employee engagement is beyond the

organizational commitment, satisfaction and job involvement etc.

Employee commitment is an person’s psychological attachment to the company. The premise

behind these studies was to investigate approaches to improve how employees feel about their

work so that these employees would become more committed towards company. Commitment

towards Organization predicts work variables such as turnover, achievements and job

performance. Factors such as work stress, empowerment, job insecurity and employability and

leadership shows employees commitment towards the organization.

Commitment is the connection employees experience with their organization. Employees who

are committed to their organization generally feel a bond with their company. They feel that they

are fit in and understand the objectives of their organization. Employees likely to be more

determined towards their job, show relatively high efficiency and are more proactive in their

support.

Researchers have also developed many definitions of employee commitment and several scales

to measure them. Meyer and Allen's model of commitment is commendable which was
developed to integrate various definitions of commitment that had been flourished in the

literature. This model has been criticized for its inconsistency with empirical findings. It might

not be fully relevant in domains such as customer behavior. There has also been argument

surrounding what Meyers and Allen's model was attempting to accomplish.

Commitment has gathered a lot of attention in HR literature in recent years. Data about employee

commitment is viewed as an important interpreter of employee loyalty and the performance

towards organization.

Factors like globalization and fierce market competition forces organizations to perform all the

time. This increased pressure demands high commitment of employers towards job. The idea of

lifetime employment has also become obsolete. Now days departments which are not performing

up to company’s expectation are reorganized. As a result this leads to job cuts and bad

performers are removed from the organization. Committed employees bring added value to the

companies, through their proactive support, high productivity and quality awareness. They are

also less likely to leave the organization.

A research has uncovered positive relationship between employee commitment and preferred

outcomes for both employees and companies. Employee commitment has been associated to

reduce burnout and decrease levels of stress leading to greater work-life balance at the individual

level (Stairs, 2005). Employee commitment has been identified with increase in turnover,

increase customer satisfaction, growth in sales, productivity and shareholder return at the

organization level.

In spite of continuous growth in the software industry, it was found that there is a reduction in

the employee commitment and engagement. Today IT employees are disengaged because of lack
of management support, career growth, proper recognition and poor human resource policies, and

inadequate resources support (Bates, 2004; Richman, 2006).

The present study undertaken to examine the employee commitment and its impact on

organizational effectiveness.

1.2 Objective of The Study

1. To Study the various aspects of employee commitment.

2. To study the impact of employee commitment on organizational effectiveness.

3. To review the employee engagement strategies of Information Technology Firms.

1.3 Scope of The Study

The present study is undertaken to study the various aspects of employee commitment and its

impact on organizational effectiveness. This study is confined to selected Information

Technology organizations in Bangalore.

1.4Testing of Hypothesis

Considering objective of the study various hypothesis has been framed:

 There is a significant association between Age of the respondents and employee engagement
level

 There is a significant association between Gender of the respondents and employee

 There is a significant association between Marital status of the respondents and employee
engagement level

 There is a significant association between Income of the respondents and employee

 There is a significant association between Qualification of the respondents and employee

 There is a significant association between Residence of the respondents and employee

 There is a significant association between Type of family of the respondents and employee
engagement level

 There is a significant association between Family size of the respondents and employee
engagement level

 There is a significant association between Family income of the respondents and employee
engagement level

 There is a significant association between Number of dependents of the respondents and

 There is a significant association between Age of the respondents and organization