ORGANIZATIONAL BEHAVIOUR

A STUDY ON JOB SATISFACTION IN INFORMATION TECHNOLOGY

INDUSTRY IN INDIA

Submitted to –

Dr. Bindu Gupta

Submitted by –

Areeb Ahmad

Arif Ehsaan

Ashutosh Bihani

Ankush Singhal

1

Dileep Bajaj

Himaja V.

Neha Agarwal

Executive Summary:

We are surveying the IT industry in India, in which we are trying to find out

the level of job satisfaction of the employees working in the industry and

their attrition rate. The IT industries which we are targeting are: Infosys

Technologies Ltd, Tata Consultancy Services, Adobe Systems, Mahindra

Satyam.

Job satisfaction shows how content the employee is with his job. It is a

person’s evaluation of his or her job and work context. Job satisfaction

depends upon various factors like Job Content, the supervisor, career

opportunities in the company, salary, promotion and other incentives and

benefits which a employee can draw from the industry, working condition the

environment of the company and the sub ordinates with which an employee

works. Salary is one of the factors which affect job satisfaction, the level of

satisfaction also depends upon the attitude of the person. People having

negative attitude are generally not satisfied with their job irrespective of

their promotion, working environment and salary which they are offered. The

most easiest way to express dissatisfaction is to leave the organization this

increases the turnover rate of the employees in an organization and

increases the attrition rate. Some other ways to express dissatisfaction is to

2

raise voice and attempts to improve the situation, passively wait for

conditions to improve and the other is to neglect the situation making it

worse. Job satisfaction goes hand in hand with productivity.

The responses to the survey have been quantified by assigning weights to answers. On

performing the regression analysis on the factors affecting intention to quit (and hence attrition)

it was found that work compensation work quality and work environment are the three factors –

work compensation, work quality and work environment that contribute the most to intention to

quit (and hence to attrition).

ContentsExecutive Summary:..................................................................................................2

Acknowledgement......................................................................................................4

Introduction: Background of the study ..................................................................................5

Definition of Job Satisfaction...........................................................................................5

Objective of the Study................................................................................................6

Detailed Analysis for factors considered.................................................................6

Models of job satisfaction.....................................................................................7

Job Characteristics Model.....................................................................................8

Relationships and practical implications..............................................................9

Work Environment................................................................................................9

Compensation....................................................................................................10

Work Quality......................................................................................................11

Organizational Commitment..............................................................................12

Methodology................................................................................................................14

Brief profile of the Indian IT Industry.....................................................................14

Brief of various Companies used in the Survey...................................................................15

Tata Consultancy Services (TCS)........................................................................15

Infosys................................................................................................................16

Adobe Systems Incorporated.............................................................................16

Mahindra Satyam...............................................................................................17

3

Method of Research..............................................................................................17

Methodology of Survey.............................................................................................18

Survey Questions and Responses.............................................................................19

Results......................................................................................................................32

Recommendations....................................................................................................34

References...............................................................................................................34

Annexure..................................................................................................................35

Questionnaire........................................................................................................35

Questionnaire

AcknowledgementNo study can be completed without the support of the employees of the

organization where it is conducted, more so when the job satisfaction and

attrition rate of the employees is the primary focus. Unconditional assistance

and uninterrupted cooperation from our previous subordinates, co-workers

and friends in different organization in which we have experience, are vital

for our recent study. This study would not have taken its present shape in

the absence of openness and readiness to share their insights, judgement

and views of the employees of the organization.

Our special thanks to Dr. Bindu Gupta for her support and guidance at

various stages of the project starting from its inception and preparing of the

questionnaire.

This project has really been an experience which gave us the insight of the

work culture in IT industry and reasons for attrition rate prevailing in the

industry.

4

Research Team

Introduction: Background of the study (Introduction of the variables

measured and analysed in the study)

Definition of Job Satisfaction

Different authors give various definitions of job satisfaction. Some of them are taken from the

book of D.M. Pestonjee “Motivation and Job Satisfaction” which are given below:

“Job satisfaction is defined as a pleasurable, emotional, state resulting from appraisal of one’s

job. An effective reaction to one’s job.”

-Weiss

“Job satisfaction is general attitude, which is the result of many specific attitudes in three areas

namely:

Specific job factors

Individual characteristics

Group relationship outside the job.”

5

-Blum and Naylor

“Job satisfaction is defined, as it is result of various attitudes the person hold towards the job,

towards the related factors and towards the life in general.”

-Glimmer

“Job satisfaction is defined as “any contribution, psychological, physical, and environmental

circumstances that cause a person truthfully say, ‘I am satisfied with my job.”

“Job satisfaction is defined, as employee’s judgment of how well his job on a whole is satisfying

his various needs.”

-Mr. Smith

“Job satisfaction is defined as a pleasurable or positive state of mind resulting from appraisal of

one’s job or job experiences.”

-Locke

Objective of the Study

The research has been undertaken with following objectives.

To study the level of job satisfaction among the employees of Informational Technology

Industry in India if any.

To study the factors effecting job satisfaction in the Indian IT industry.

Detailed Analysis for factors considered

Job Satisfaction

6

Job satisfaction describes how content an individual is with his or her job. The happier people

are within their job, the more satisfied they are said to be. Job satisfaction is not the same as

motivation, although it is clearly linked. Job design aims to enhance job satisfaction and

performance, methods include job rotation, job enlargement and job enrichment. Other

influences on satisfaction include the management style and culture, employee involvement,

empowerment and autonomous work position .

Definition : Job satisfaction has been defined as a pleasurable emotional state resulting from the

appraisal of one’s job; an affective reaction to one’s job; and an attitude towards one’s job.]Weiss

(2002) has argued that job satisfaction is an attitude but points out that researchers should clearly

distinguish the objects of cognitive evaluation which are affect (emotion), beliefs and

behaviors. This definition suggests that we form attitudes towards our jobs by taking into

account our feelings, our beliefs, and our behaviors.

Models of job satisfaction

Affect Theory

Edwin A. Locke’s Range of Affect Theory (1976) is arguably the most famous job satisfaction

model. The main premise of this theory is that satisfaction is determined by a discrepancy

between what one wants in a job and what one has in a job. Further, the theory states that how

much one values a given facet of work (e.g. the degree of autonomy in a position) moderates

how satisfied/dissatisfied one becomes when expectations are/aren’t met.

7

Dispositional Theory

Another well-known job satisfaction theory is the Dispositional Theory. It is a very general

theory that suggests that people have innate dispositions that cause them to have tendencies

toward a certain level of satisfaction, regardless of one’s job. This approach became a notable

explanation of job satisfaction in light of evidence that job satisfaction tends to be stable over

time and across careers and jobs. Research also indicates that identical twins have similar levels

of job satisfaction.

Two-Factor Theory (Motivator-Hygiene Theory)

Frederick Herzberg’s Two factor theory (also known as Motivator Hygiene Theory) attempts to

explain satisfaction and motivation in the workplace. This theory states that satisfaction and

dissatisfaction are driven by different factors – motivation and hygiene factors, respectively. An

employee’s motivation to work is continually related to job satisfaction of a subordinate.

Motivation can be seen as an inner force that drives individuals to attain personal and

organizational goals (Hoskinson, Porter, & Wrench, p.133). Motivating factors are those aspects

of the job that make people want to perform, and provide people with satisfaction, for example

achievement in work, recognition, promotion opportunities. These motivating factors are

considered to be intrinsic to the job, or the work carried out. Hygiene factors include aspects of

the working environment such as pay, company policies, supervisory practices, and other

working conditions.

Job Characteristics Model

Hackman & Oldham proposed the Job Characteristics Model, which is widely used as a

framework to study how particular job characteristics impact on job outcomes, including job

8

satisfaction. The model states that there are five core job characteristics (skill variety, task

identity, task significance, autonomy, and feedback) which impact three critical psychological

states (experienced meaningfulness, experienced responsibility for outcomes, and knowledge of

the actual results), in turn influencing work outcomes (job satisfaction, absenteeism, work

motivation, etc.). The five core job characteristics can be combined to form a motivating

potential score (MPS) for a job, which can be used as an index of how likely a job is to affect an

employee's attitudes and behaviours.

Relationships and practical implications

Job Satisfaction can be an important indicator of how employees feel about their jobs and a

predictor of work behaviours such as organizational citizenship, absenteeism, and

turnover. Further, job satisfaction can partially mediate the relationship of personality variables

and deviant work behaviors.

One common research finding is that job satisfaction is correlated with life satisfaction. This

correlation is reciprocal, meaning people who are satisfied with life tend to be satisfied with their

job and people who are satisfied with their job tend to be satisfied with life. However, some

research has found that job satisfaction is not significantly related to life satisfaction when other

variables such as non-work satisfaction and core self-evaluations are taken into account.

Work Environment

A work environment can be identified as the place that one works. i.e. -in an office building in a

cube, at home at the kitchen table, from a car or truck, at a construction site. All are work

9

environments. We tend, however, to hear about "healthy work environments." This can point to

other factors in the work environment, such as co-workers, air quality, ergonomic seating,

management (the boss!), child care, parking, noise, and even the size of one's cube. A work

environment doesn't require a job. It requires that work has to be done in some place. Say you

need to do homework. Where do you do it? At school in study hall? At your kitchen table? On

the floor at a friend's house? These can also be considered work environments.

Creating a Positive Work Environment

An effective work environment is vital to the success of small businesses and large corporations

alike. When problems remain unsolved and rules never get implemented, the result can be an

unproductive staff and a stale work environment.

People working together with a common denominator will accomplish tasks with greater ease

and have higher expectations of themselves and their work. (success and passion)A positive

work environment is critical no matter how many employees you have. It is management that

fosters the work atmosphere so they are responsible for conducting things in a way that helps

raise people's spirits. There are four basic beliefs:

• Hope

• Trust

• Pleasure

• Opportunity

Compensation

With the technological developments taking place at a higher rate, the salary packages are too

increasing at a much higher rate. Pay packages in India have witnessed an increase of more than

10

14% in 2006 over last year’s salary packages. The compensation package comprises of monetary

and non-monetary benefits that includes salary, special allowances, house rent allowance, travel

allowance, mobile allowance, employee stock options, club memberships, accommodations,

retirement benefits and other benefits.

Globalization is being considered as the cause for such salary hikes. The establishment of multi-

national companies and privatization has led the Indian industry to witness higher salary

package.

With the immense competition of attracting and retaining talented human resource,

compensation package is the only motivation factor available with the organizations be it

Indian origin organizations or foreign-owned multinationals.

With the high attrition rate organizations are increasing their salary packages to attract and retain

talented human resource. In the race, India has begged first position followed by Lithuania and

China.

Work Quality

Work quality is basically how an employee perceives the quality of work that he does and how

fulfilling is it for the higher needs of the employee i.e. of self actualization.

Factors on which work quality depends.

Employee participation : How involved is he in the overall management of his work.

How of responsibility and freedom he is being given.

Employee participation as a workplace strategy

Information sharing : How much of the information about the projects, company etc is

shared with the employee.

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Receiving feedback on your work : does he get proper feedback for his effort, basic

recognition of his work for further motivation and enhancement.

Skill use : How much he is able to use his skill sets in his work. Or does his work gives

no scope for using his skills to him.

Opportunities for skills development: What opportunities does his work offers to him to

further enhance his knowledge and improve his skill sets.

Workplace training : whether he is being given proper training for the job he has to do.

Organizational Commitment

Organizational commitment is the psychological attachment of an employee to an

organization.

Model of commitment

According to Meyer and Allen's (1991) three-component model of commitment, prior research

indicated that there are three "mind sets" which can characterize an employee's commitment to

the organization:

Affective Commitment: AC is defined as the employee's positive emotional attachment to the

organization. An employee who is affectively committed strongly identifies with the goals of

the organization and desires to remain a part of the organization. This employee commits to

the organization because he/she "wants to". In developing this concept, Meyer and Allen

drew largely on Mowday, Porter, and Steers's (1982) concept of commitment, which in turn

drew on earlier work by Kanter (1968).

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Continuance Commitment: The individual commits to the organization because he/she

perceives high costs of losing organizational membership (cf. Becker's 1960 "side bet

theory"),including economic costs (such as pension accruals) and social costs (friendship ties

with co-workers) that would be incurred. The employee remains a member of the

organization because he/she "has to".

Normative Commitment: The individual commits to and remains with an organization

because of feelings of obligation. These feelings may derive from many sources. For

example, the organization may have invested resources in training an employee who then

feels a 'moral' obligation to put forth effort on the job and stay with the organization to 'repay

the debt.' It may also reflect an internalized norm, developed before the person joins the

organization through family or other socialization processes, that one should be loyal to one's

organization. The employee stays with the organization because he/she "ought to".

TYPES

Intellectual Commitment(full)

Emotional Commitment (full)

Financial Commitment (phased)

Guidlines to enhance organizational commitment.

There are five guidelines which help to enhance organizational commitment.

1) Commit to people-first values: Put it in writing, hire the right-kind managers, and walk the

talk.

2) Clarify and communicate your mission: Clarify the mission and ideology; make it charismatic;

use value-based hiring practices; stress values-based orientation and training; build the tradition.

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3) Guarantee organizational justice: Have a comprehensive grievance procedure; provide for

extensive two-way communications.

4) Community of practise: Build value-based homogeneitly; share and ahare alike; emphasize

barnraising, cross-utilization, and teamwork; getting people to work together.

5) Support employee development: Commit to actualizing; provide first-year job challenge;

enrich and empower; promote from within; provide developmental activities; provide employee

security without guarantees.

Methodology

Brief profile of the Indian IT Industry

The Indian Information Technology industry accounts for a 5.9% of the country's GDP and

export earnings as of 2009, while providing employment to a significant number of its sector

workforce. More than 2.3 million people are employed in the sector either directly or indirectly,

making it one of the biggest job creators in India and a mainstay of the national economy. In

March 2009, annual revenues from outsourcing operations in India amounted to US$50 billion

and this is expected to increase to US$225 billion by 2020. The most prominent IT hub is IT

capital Bangalore. The other emerging destinations

are Chennai, Hyderabad, Mumbai, Pune, NCR, Jaipur and Kolkata. Technically proficient

immigrants from India sought jobs in the western world from the 1950s onwards as India's

education system produced more engineers than its industry could absorb. India's growing stature

in the information age enabled it to form close ties with both the United States of America and

the European Union. However, the recent global financial crisis has deeply impacted the Indian

IT companies as well as global companies. As a result hiring has dropped sharply and employees

14

are looking at different sectors like financial service, telecom or manufacturing industries, Which

are growing phenomenally over the last few years. Due to meltdown the IT industry's pace of

growth has dropped significantly and amount of Job dissatisfaction is also on a high.

India's IT Services industry was born in Mumbai in 1967 with the establishment of Tata Group

in partnership with Burroughs. The first software export zone SEEPZ was set up here way back

in 1973, the old avatar of the modern day IT park. More than 80 percent of the country's software

exports happened out of SEEPZ, Mumbai in 80s.[3]

Each year India produces roughly 500,000 engineers in the country, out of them only 25% to

30% possessed both technical competency and English language skills, although 12% of India's

population can speak in English. India developed a number of outsourcing companies

specializing in customer support via Internet or telephone connections. By 2009, India also has a

total of 37,160,000 telephone lines in use, a total of 506,040,000 mobile phone connections, a

total of 81,000,000 Internet users—comprising 7.0% of the country's population, and 7,570,000

people in the country have access to broadband Internet— making it the 12th largest country in

the world in terms of broadband Internet users.

Brief of various Companies used in the Survey

Tata Consultancy Services (TCS)

Tata Consultancy Services (TCS) is a Software services consulting company headquartered

in Mumbai, India. TCS is the largest provider of information technology and business process

outsourcing services in Asia. TCS has offices in 42 countries with more than 142 branches across

the globe. The company is listed on the National Stock Exchange and Bombay Stock

Exchange of India.

15

TCS is a flagship subsidiary of one of India's largest and oldest conglomerate company, the Tata

Group, which has interests in areas such as energy, telecommunications, financial services,

manufacturing, chemicals, engineering, materials, government and healthcare

TCS is one of the largest private sector employers in India with a core strength in excess of

165,000 individuals. TCS has one of the lowest attrition rates in the Indian IT industry.

Infosys

Infosys is an information technology services company headquartered in Bangalore, India.

Infosys is one of the largest IT companies in India with 114,822 employees (including

subsidiaries) as of 2010. It has offices in 30 countries and development centres in India, China,

Australia, UK, Canada and Japan. It was founded on 2 July 1981 by seven entrepreneurs

Adobe Systems Incorporated

Adobe Systems Incorporated is an American computer software company headquartered in San

Jose, California, USA. The company has historically focused upon the creation of multimedia

and creativity software products, with a more-recent foray towards rich Internet

application software development.

Adobe was founded in December 1982 by John Warnock and Charles Geschke, who established

the company after leaving Xerox PARC in order to develop and sell the PostScript page

description language. In 1985, Apple Computer licensed PostScript for use in

its LaserWriter printers, which helped spark the desktop publishing revolution. The company

name Adobe comes from Adobe Creek in Los Altos, California, which ran behind the house of

one of the company's founders. Adobe acquired its former competitor, Macromedia, in

December 2005, which added newer software products and platforms such

as Coldfusion, Dreamweaver, Flash and Flex to its product portfolio.

16

As of August 2009, Adobe Systems has 7,564 employees,[4] about 40% of whom work in San

Jose. Adobe also has major development operations inOrlando, FL; Seattle, WA; San Francisco,

CA; Orem, UT; Ottawa, Ontario; Minneapolis, MN; Newton, MA; San Luis Obispo,

CA; Hamburg, Germany;Noida, India; Bangalore, India; Bucharest, Romania; Beijing, China.

Mahindra Satyam

Mahindra Satyam (formerly known as Satyam Computer Services Ltd) was founded in 1987

by B Ramalinga Raju. The company offers consulting and information technology (IT) services

spanning various sectors, and is listed on the New York Stock Exchange, theNational Stock

Exchange (India) and Bombay Stock Exchange (India). In June 2009, the company unveiled its

new brand identity “Mahindra Satyam” subsequent to its takeover by the Mahindra Group’s IT

arm, Tech Mahindra. Mahindra Satyam offers the following ‘horizontal’ services - Extended

Enterprise Solutions, Web Commerce Solutions, Business Intelligence Services, Quality

Consulting, Strategic Outsourcing Services, Industry Native Solutions, BPO and Engineering

Services

Method of Research

For our research, we have formed series of questions to measure job satisfaction and reasons for

attrition rate in organizations selected. The questionnaire was mainly divided into three parts.

First part is to find out the factor which best represents the employee overall job satisfaction. The

factors used were employee recognition, pay and benefits, and job content.

Second part contained the questions regarding agreeableness of employees on different factors

like Work environment, Compensation, Work quality, Organizational commitment.

The above factors were considered because in general for any employee those are the main

factors which contribute to both personal and professional satisfaction.

17

From the employee’s rating on the agreeableness to different factors we can find out the level of

the job satisfaction of employees in different companies and also the main reason for the attrition

rate.

Third part is to find out the crucial reasons for the attrition rate i.e. the main reasons for

employees to make decision to quit the job. Some of the factors mentioned in questionnaire are

work quality, politics in the organization, work load, compensation, and work environment.

Methodology of Survey

The responses to the survey have been quantified by assigning weights to answers. For instance,

an “Strongly agree” in response to a question gets a weight of 4, an “Agree” gets a weight of 3, a

disagree gets a weight of 2 and so on. We have formulated some hypotheses pertaining to the

different factors that affect attrition in IT companies and then a regression analysis has been done

to find out as to which all factors contribute significantly to attrition. The dependent variable that

we have taken is Intention to quit (the question chosen is - As soon as possible I will leave this

organization) which may be taken as a good representation of attrition. The independent

variables (or the factors that affect intention to quit and hence attrition) are – Work

compensation, organizational commitment, work quality and work environment. The following

hypotheses have been formulated :

Variables Null Hypothesis – H0 Alternate Hypothesis – H1

Work compensation Work compensation does not contribute

significantly to intention to quit

Work compensation does contribute

significantly to intention to quitOrganizational

commitment

Organizational commitment does not

contribute significantly to intention to

quit

Organizational commitment does

contribute significantly to intention

to quit

18

Work quality Work quality does not contribute

significantly to intention to quit

Work quality does contribute

significantly to intention to quitWork environment Work environment does not contribute

significantly to intention to quit

Work environment does contribute

significantly to intention to quit

Survey Questions and Responses

GenderMale 81 75%

Female 27 25%

DIRECTIONS: Please select the level that best represents your level of overall

job satisfaction for each item below. - That your views and participation are

valued?

19

Strongly

satisfied

1

6

15

%

Satisfied 6

6

61

%

Dissatisfied 1

3

12

%

Strongly

dissatisfied

1

3

12

%

DIRECTIONS: Please select the level that best represents your level of overall

job satisfaction for each item below. - That your work gives you a feeling of

personal accomplishment?Strongly

satisfied

8 7

%

Satisfied 7

7

71

%

Dissatisfied 1 16

20

7 %

Strongly

dissatisfied

6 6

%

DIRECTIONS: Please select the level that best represents your level of overall

job satisfaction for each item below. - That you receive appropriate recognition

for your contributions?Strongly

satisfied

2

3

21

%

Satisfied 3

6

33

%

Dissatisfied 4

3

40

%

Strongly

dissatisfied

6 6

%

21

DIRECTIONS: Please select the level that best represents your level of overall

job satisfaction for each item below. - That your compensation matches your

responsibilities?Strongly

satisfied

1

3

12

%

Satisfied 5

8

54

%

Dissatisfied 3

1

29

%

Strongly

dissatisfied

6 6

%

Please rate your agreeableness on the items listed below.

22

Work environment : - I have the resources I need to do my job wellStrongly

agree

3

5

32

%

Agree 6

6

61

%

Disagree 3 3

%

Strongly

disagree

4 4

%

Work environment : - I have all the information I need to do my job effectivelyStrongly

agree

3

0

28

%

Agree 6

3

58

%

Disagree 1

5

14

%

Strongly

disagree

0 0

%

23

Work environment : - My workplace is safeStrongly

agree

6

1

56

%

Agree 3

6

33

%

Disagree 1

0

9

%

Strongly

disagree

1 1

%

Work environment : - My work climate encourages teamwork and supportStrongly

agree

2

0

19

%

Agree 5 49

24

3 %

Disagree 2

9

27

%

Strongly

disagree

6 6

%

Compensation : - I am paid fairly for the work I doStrongly

agree

7 6

%

Agree 6

4

59

%

Disagree 3

7

34

%

Strongly

disagree

0 0

%

25

Compensation : - My salary is competitive with similar jobs I might find

elsewhereStrongly

agree

2

9

27

%

Agree 5

8

54

%

Disagree 1

9

18

%

Strongly

disagree

2 2

%

Compensation : - My benefits (over & above my pay) are comparable to those

offered by other organizations

26

Strongly

agree

3

0

28

%

Agree 5

5

51

%

Disagree 1

9

18

%

Strongly

disagree

4 4

%

Work quality : - My responsibilities and quality of work match my skills and

qualificationsStrongly

agree

8 7

%

Agree 6

9

64

%

Disagree 2

7

25

%

Strongly

disagree

4 4

%

27

Intention to Quit : - I think a lot about quitting my jobStrongly

agree

1

1

10

%

Agree 5

6

52

%

Disagree 3

5

32

%

Strongly

disagree

6 6

%

28

Intention to Quit : - I am actively searching for an alternative to my present jobStrongly

agree

6 6

%

Agree 4

7

44

%

Disagree 4

8

44

%

Strongly

disagree

7 6

%

Intention to Quit : - As soon as possible I will leave this organizationStrongly

agree

2

3

21

%

Agree 4

2

39

%

Disagree 3

4

31

%

Strongly

disagree

9 8

%

29

Organizational Commitment : - If necessary, I am prepared to put myself out for

this organisation (e.g. by working long and/or unsocial hours)Strongly

agree

2

3

21

%

Agree 4

9

45

%

Disagree 3

6

33

%

Strongly

disagree

0 0

%

Organizational Commitment : - If asked, I am prepared top take on more

responsibility or tasks not in my job description

30

Strongly

agree

2

2

20

%

Agree 7

0

65

%

Disagree 1

5

14

%

Strongly

disagree

1 1

%

Organizational Commitment : - I feel that it is worthwhile to work hard for this

organizationStrongly

agree

1

6

15

%

Agree 7

3

68

%

Disagree 1

5

14

%

Strongly

disagree

4 4

%

31

Organizational Commitment : - I am committed to this organisationStrongly

agree

2

2

20

%

Agree 6

2

57

%

Disagree 2

2

20

%

Strongly

disagree

2 2

%

32

What are the most crucial reason(s) that will affect your decision if you choose to quit your

jobCompensation (whole pay

package)

7

8

72

%

Work environment 5

5

51

%

Quality of work 6

8

63

%

Want to start your own

venture

1

0

9%

Too much work load 5

6

52

%

Too little work 4 4%

Politics in the organization 5

6

52

%

None, I won't quit my job 1 1%

Number of daily responses

33

Results

On performing the regression analysis on the factors affecting intention to quit (and hence

attrition) it was found that work compensation work quality and work environment are the three

factors that contribute the most to intention to quit (and hence to attrition). Accordingly the null

hypotheses for these three factors were rejected and the final conclusion is depicted in the table

below.

Variables p value Null Hypothesis –

H0

Alternate Hypothesis –

H1

Conclusion

Work

compensation 0.005620

677

Work compensation

does not contribute

significantly to

intention to quit

Work compensation

does contribute

significantly to intention

to quit

Reject the

null

hypothesis

Organizational

commitment0.482567

595

Organizational

commitment does

not contribute

significantly to

intention to quit

Organizational

commitment does

contribute significantly

to intention to quit

Do not reject

the null

hypothesis

Work quality

0.030610

692

Work quality does

not contribute

significantly to

intention to quit

Work quality does

contribute significantly

to intention to quit

Reject the

null

hypothesis

Work

environment 1.4485E-

22

Work environment

does not contribute

significantly to

intention to quit

Work environment does

contribute significantly

to intention to quit

Reject the

null

hypothesis

34

Recommendations

Organizational turnover in the workplace has risen to epidemic proportions as have its associated

costs. These cost include the hard, tangible costs such as severance pay, recruitment costs,

orientation costs, time spent reviewing resumes and conducting interviews, as well as pre-

employment drug screening to name a few. Other major costs of employee turnover are more

difficult to quantify but still have an impact on an organization's bottom line. These costs include

reduced employee morale and productivity for starters.

The above regression analysis shows that work compensation work quality and work

environment are the three factors that contribute the most to intention to quit (and hence to

attrition). This means that IT companies need to focus on these aspects to retain employees. Also

out of the above mentioned factors the work environment is the most significant and hence it

needs to be emphasized more upon. In other words, retention of employees should be achieved

by focusing on providing better salary, perks and other benefits and creating a more dynamic

work environment that offers new growth opportunities more frequently on a variety of levels.

Besides that matching job profiles with the skill set of the employee is also very important. This

can be done by making improvements in the hiring process one among them being not hiring

over qualified people for a job that can be done easily by a less qualified person.

References

• Pearson Education – Organizational Behaviour 13e by Stephen P Robbins, Stephen P Robbins and Timothy A Judge

• Sample Questionnaires by Dr. Bindu Gupta, Faculty, IMT Ghaziabad.• www.wikipedia.org

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Annexure

Questionnaire

Name

Current employer *

Gender *

• Male

• Female

DIRECTIONS: Please select the level that best represents your level of overall job satisfaction for each

item below. *

Strongly satisfied

SatisfiedDissatisfie

d

Strongly dissatisfie

d

That your views and participation are

valued?

That your work gives you a feeling of personal

accomplishment?

That you receive appropriate recognition for your contributions?

That your compensation matches your

responsibilities?

Please rate your agreeableness on the items listed below.

Work environment : *

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Strongly agree

Agree DisagreeStrongly disagree

I have the resources I need to do my job well

I have all the information I need to do

my job effectively

My workplace is safe

My work climate encourages teamwork

and support

Compensation : *

Strongly agree

Agree DisagreeStrongly disagree

I am paid fairly for the work I do

My salary is competitive with similar jobs I might

find elsewhere

My benefits (over & above my pay) are

comparable to those offered by other

organizations

Work quality : *

Strongly agree

Agree DisagreeStrongly disagree

My responsibilities and quality of work match

my skills and

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Strongly agree

Agree DisagreeStrongly disagree

qualifications

Intention to Quit : *

Strongly agree

Agree DisagreeStrongly disagree

I think a lot about quitting my job

I am actively searching for an alternative to my

present job

As soon as possible I will leave this organization

Organizational Commitment : *

Strongly agree

Agree DisagreeStrongly disagree

If necessary, I am prepared to put myself

out for this organisation (e.g. by working long

and/or unsocial hours)

If asked, I am prepared top take on more

responsibility or tasks not in my job description

I feel that it is worthwhile to work hard

for this organisation

I am committed to this organisation

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What are the most crucial reason(s) that will affect your decision if you choose to quit your job *

• Compensation (whole pay package)

• Work environment

• Quality of work

• Want to start your own venture

• Too much work load

• Too little work

• Politics in the organization

• None, I won't quit my job

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