Relationship between HRM Practices, Organizational commitment and Sustained Productivity in Cement Industries in Rajasthan: A Case Study

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1 Relationship between M Practices, Organizational commitment and Sustained Productivity in Cement Industries in Rajasthan: A Case Study Mohd.Yunus Sheikh 1 Dr. Gaurav Bissa 2 1 Research Scholar, Pacific University of Higher Studies, Udaipur 2 Associate Professor, Govt. Engineering College Bikaner Abstract The main objective of this study is to explore the relationship between M and sustained productivity in cement industry in Rajasthan. Research indicates a positive relation between the M, employee commitment and sustained productivity. Cement industry in Rajasthan facing problems to retain talented and highly skill employee in the industry for a long time thus tough to survive in the market. This survey consists of 160 employee of various cement industry in Rajasthan. and Regression analysis is used to find out the relation between M and sustained productivity by using SPSS 20. Key Words: M Practices, Sustained Productivity. Introduction Outcome of various studies shows that a produce a positive impact on employee performance and sustained productivity. According to Cully et.al, 2000, generally managing staff has fulfilled the perspectives of M where employee favor has given very less attention. Meyers and smith (2000) reveals that researchers give less importance the relationship between the M and sustained productivity. Human resources should be considered as a back bone for cement industry to survive in the competitive era of globalization. M play a significant role to obtained sustained productivity. should be implemented by the human resource management in order to retain the deserving and talented employee which helps to maintain the sustained productivity. This research is very important to understand the significant of M and its implementation to enhance organizational commitment and hence sustained productivity. So should be framed as per the expectation of an employee and benefit for an organization. reveal that employees of cement industry are the key factors and main assets to maintain and growth of an industry. The effective implementation of (Becker and Gerhart 1996) can be directly seen as organizational performance such as absenteeism, productivity, profit, retention, sustained productivity etc. Keenoy (1990) explores that the main objectives of are effective management of an employee so that organization can achieve their goals and objectives like sustained productivity. Studies of C.F.Arthur (1994) and Fernieet. al. shows that have a direct impact on organizational outcome variables (employee commitment, satisfaction etc).organizational development influenced by change in globalization, competitiveness, technology etc. If employee perception toward organization is positive then this changes will be favorable for organization. Negative employee perception will lead unfavorable result such as employee frustration, switch over, absenteeism and decrease productivity. Effective can avoid such situations by exploring different benefits, incentives to an employee and make them committed toward organization which leads to sustained productivity even during industrial changes. Practices include the following function a. Selection process (Recruitment) 363 Mohd.Yunus Sheikh, Dr. Gaurav Bissa

2 b. Training and Development c. Annual Increment & Promotion d. Incentives and Perks e. Compensation (Medical benefit) According to Boxall and Purcell (2003), involves an effective management of employee and make a strong positive bond between employee and organization. managers are the most responsible for that. Stewart & Brown (2011) finds that recruitment of quality employees, motivates them to achieve optimum performance can only be achieved by an effective. a. Selection Process (Recruitment) Organization can find energetic and an extraordinary peoples by means of advertisement on newspaper, website, media, direct placement by visiting college and university etc. Yale bladder (1972) explore that recruitment process should involve written test, interview and then finally Medical examination of the candidates. Some criteria should be designed to short list a candidates for written test in order to separate the creamy layer with the other one. b. Training & Development The main objectives of training is to enhance employee s performance which lead to sustainproductivity of an organization. Training should be designed in such a way that improves skillsof an employee in every aspect (working methodology, attitude, and perception towards organization). c. Annual Increment and Promotion Annual increment and promotion plays a key role for improving performance of any employee. These things motivate employee to be more committed towards an organization especially in the region of Rajasthan where they have to work comparatively hot and adverse weather conditions. d. Incentives and Perks The things which encourage an employee to work with full of efficiency and even at overtime are Incentives and perks. These treat as an energy booster for an employee which enhances their power to give more output. So these employees are more committed to an industry which leads to sustain Productivity. e. Compensation (Medical benefit) Every employee has worried about health of themselves and their family members. M should ensure that every employee will be given any medical or emergency compensation, so that employee can be work effectively without any fear. Organization : According to Allen & Meyer (1990) organizational commitment can be classified as affective, continuance and normative commitment. Affective commitment measure the degree of involvement and emotional attachment of an employee in the organization. Continuance commitment is a feeling to remain with the organization. Meyer & Smith (2000) explore that a normative commitment is sense of obligation which employee feel for the organization. The heart of M is an organizational commitment which produces impact on human attitude and their performance. According to Meyer & Allen (1997) M produce a positive impact on organizational commitment. If an employee gets attractive incentives, perks and other benefit than an employee may has a very strong affection towards an organization. Meyer & Smith (2000) find the M can improves normative commitment of an employee which helps to maintain sustain productivity. Justified rewards, empowerment, fame, competence development (Daleny et al, 1996) all affect commitment toward organization. Individual s psychological attachment of an employee towards organization is an organizational commitment. According Steers (1977), Mowdayet. al. (1979) long term relationship and willing to stay in organization is an organizational commitment. Lambaet. al. (2013) explores that if an employees are willing to do something for organization and show positive relationship with the organization is an organizational commitment which result in sustained productivity. Stewart et al. (2011) explore that the main function of is to recruit excellent employees and motivate them to enhance performance and to maintain or improve productivity and also leads to long term positive relation between employees and organization. 364 Mohd.Yunus Sheikh, Dr. Gaurav Bissa

3 plays a key role in recruitment & selection, training and development, compensation and reward, incentives, perks and promotion so that employee can be motivated to affectionally committed with an organization. According to Zaitouni et al. (2011) explore that the main component that improves belongingness of employee with organization is recognition. Faith of employees on M (Koys,1988& 1991) is directly related to employees commitment which results in sustained productivity. RESEARCH METHODOLOGY The purpose of the study is to find the relationship between M, organizational commitment of employees and sustained productivity and also to explore the relationship between various dimensions of the above said parameters. These research outcomes will definitely give a valuable suggestion regarding the relationship between M, organizational commitment and sustained productivity. A. Objectives of the study 1. To study relationship between, employee commitment (affective, continuance and normative commitment). 2. To study relationship between and employee commitment and Sustained Productivity. B. Sample size The sample size of this research is 200. Respondents include various demographic parameters like Education, age, work experience, gender and marital status. C. Proposed Model M AC CC NC EC SP D. Population of the study In this study finite population is consider and population consist of technical and official employees of cement industries of Rajasthan E. Research Hypothesis H A1 = There is no significant relationship between M and Affective commitment. H B1 = There is significant relationship between M and Affective commitment. H A2 = There is no significant relationship between M and Continuance commitment. H B2 = There is significant relationship between M and Continuance commitment. H A3 =There is no significant relationship between M and Normative commitment. H B3 = There is significant relationship between M and Normative commitment. H A4 = There is no significant relationship between M and commitment. H B4 = There is significant relationship between M and commitment. H A5 = There is no significant relationship between commitment and sustained productivity. H B5 = There is significant relationship between commitment and sustained productivity. Research Analysis Table 1: Descriptive Statistics Results and Reliability Values N Minimu m Maximum Mean selection &recruitment Training & Development Annual Increment & Promotion Incentives & Perks Std. Deviati on Compensation commitment Affective Continuance Normative Sustained Productivity Valid N (listwise) Mohd.Yunus Sheikh, Dr. Gaurav Bissa

4 It is clear from the descriptive analysis that the arithmetic mean of is reported as 3.76 (std. dev as 0.79) and this result indicates that participants reply the as almost agree. As per the arithmetic mean of the dimensions, highest arithmetic mean reported as 3.77 (std. dev. as 0.84) for Annual increment and promotion, whereas the lowest mean is 3.20 (std. dev. 0.91) for the dimension Incentives and Perks. On the other hand arithmetic mean of organizational commitment is found as 3.85 (std. dev. 0.81) indicates that most of the candidates scale nearly to agree. Continuance commitment is reported as highest arithmetic mean 3.97 (std. dev. 0.88) whereas the lowest component is affective commitment with arithmetic mean as 3.88 (std. dev. 0.88). Sustained productivity shows arithmetic mean as 3.02 (std. dev. 0.79) which clearly indicates that the maximum population remain neutral regarding sustain productivity. Table 2: Reliability test for.73 6 Value of cronbach s alpha for is which is above 0.70, so correlation test can be performed up to a given level of significance Table 3: Reliability test of Affective Value of cronbach s alpha is which is above 0.70, so correlation test can be performed up to a given level of significance. Table 4: Reliability test of Continuance Value of cronbach s alpha is which is above 0.70, so correlation test can be performed up to a given level of significance. Table 5: Reliability test of Normative Value of cronbach s alpha is which is above 0.70, so correlation test can be performed up to a given level of significance. Table 6: Reliability test for Value of cronbach s alpha for employee commitment is which is above 0.70, so correlation test can be performed up to a given level of significance. Table 7: Reliability test for Sustained Productivity Value of cronbach s alpha for sustained productivity is 0.72 which is much above 0.70, so correlation test can be performed up to a given level of significance. Table 8: Overall Reliability test for Sustained Productivity Value of cronbach s alpha for sustained productivity is 0.72 which is much above 0.70, so 366 Mohd.Yunus Sheikh, Dr. Gaurav Bissa

5 correlation test can be performed up to a given level of significance. Table 9: Analysis between and Affective. Affective **.682 ** 1 Affective **. is significant at the 0.01 level (2-tailed). coefficient, significant values and number of respondents with non -missing values shown in Table 9. The value of correlation coefficient for and AC is which incline towards +1 and shows a strong positive relation between them. This indicates that the positive change in one leads to positive change in other variable. The significance value of p is which is less than 0.01, so the correlation between and Affective is positive at 95% level of significance. So the null Hypothesis H A1 is rejected, mean there is a significant relationship between the M and Affective. Table 10: Analysis between and Continuance. Continuan ce Commitm ent **.720 ** 1 Continuance Commitmen t coefficient, significant values and number of respondents with non -missing values shown in Table 10. The value of correlation coefficient for M and CC is 0.72 which incline towards +1 and shows a positive relation between them. This indicates that the positive change in one leads to positive change in other variable. The significance value of p is which is less than 0.01, so the correlation between Continuance and Work is positive at 95% level of significance. So the null Hypothesis H A2 is rejected, mean there is a significant relationship between the M and Continuance. Table 11: Analysis between and Normative. Normative Commitme nt Normative Commitme nt ** Sig. (2 - tailed).819 ** 1 Sig. (2 - tailed) **. is significant at the 0.01 level (2- tailed). coefficient, significant values and number of respondents with non -missing values shown in Table 11. The value of correlation coefficient for M and NC is 0.81 which incline towards +1 and shows a strong positive relation between them. This indicates that the positive change in one leads to positive change in other variable. The significance value of p is which is less than 0.01, so the correlation between Normative and Work is positive at 95% level of significance. So the null Hypothesis H A3 is rejected, mean there is a significant relationship between the Normative and Work 367 Mohd.Yunus Sheikh, Dr. Gaurav Bissa

6 Table 12: Analysis between and. Commitm ent practic es Commitm ent **.833 ** 1 **. is significant at the 0.01 level (2- tailed). The value of correlation coefficient for M and EC is 0.83 which incline towards +1 and shows a strong positive relation between them. This indicates that the positive change in one leads to positive change in other variable. The significance value of p is which is less than 0.01, so the correlation between Normative and Work is positive at 95% level of significance. So the null Hypothesis H A4 is rejected, mean there is a significant relationship between the Normative and Work Table 13: Analysis between & Sustained productivity. Sustained Productivity Commitme nt Sustained Productivit y **.864 ** 1 **. is significant at the 0.01 level (2-tailed). The value of correlation coefficient for EC and SP is 0.86 which incline towards +1 and shows 368 Mohd.Yunus Sheikh, Dr. Gaurav Bissa a strong positive relation between them. This indicates that the positive change in one leads to positive change in other variable. The significance value of p is which is less than 0.01, so the correlation between Normative and Work is positive at 95% level of significance So the null Hypothesis H A5 is rejected, mean there is a significant relationship between the and Sustained Productivity. Regression Analysis 1. For various dimensions of M with dependent variable as commitment. Model Unstandardized Coefficients B Std. Error Standardiz ed Coefficient s Beta 1 (Constant) selection & recruitment Training & Developme nt Annual Increment & Promotion Incentives & Perks Compensati on t Sig a. Dependent Variable: The result shows that Beta value for selection and recruitment is at t=2.197 (p-value<=.01), For Training & Development Beta value is at t=6.655 (p -value<=.01) and for Annual Increment & promotion is at t=2.965 (p-value <=0.01), for incentives and perks Beta value is at t=5.801, for compensation Beta value is at t=0.813 with dependent variable is commitment.. It indicates that M

7 impose very much significant impact on employee commitment at 99% confidence level. 2. For commitment with dependent variable as Sustained Productivity Model 1 (Constant ) Unstandardiz ed Coefficients B Std. Error Standardi zed Coefficien ts Beta t Sig Commitm 2 ent a. Dependent Variable: Sustained Productivity The result shows that Beta value for is at t=4.182 (p-value<=.01), It indicates that employee commitment produce very much significant impact on Organizational Development at 99% confidence level. Findings 1. There is a significant relationship between M and Affective commitment. 2. There is a significant relationship between M and Continuance commitment. 3. There is a significant relationship between M and Normative commitment. 4. There is a significant relationship between M and commitment. 5. There is a significant relationship between commitment and Sustained Productivity. Conclusion This research reveals that M affect very much on employee commitment for various cement industries in Rajasthan. M should design in such a way that attract or motivate to be committed for organization. Committed employee definitely participates to retain or increase in sustained productivity. correlations explore that M policies directly link to committed employee and they have a very good sense to take participate for sustained productivity. should be given various benefits like increment, promotion, incentives, perks, compensation time to time and whenever as needed so that employee can perform with full of energy and enthusiasm, which helps to increase productivity. If an employee feel obligation towards industry then he/she tries to do work with best efficiency for achieving task and organizational development. In tremendous challenging condition of cement industry, affectionately committed employee perform very well which result in better organizational development of industry. Committed employee also willing to remain with an organization whose experience can be positively used in cement industry which leads to help the development of an organization.regression analysis conclude that all of the dimensions of M helps to increase the commitment level of an employee. Increasing number of cement industries in Rajasthan indicates that employee in this region have a very good commitment towards organizational goals. It is also advised to management of cement industries that they should plan a policy which makes employees affectionately committed towards organization which helps to build sustained productivity. References 1. Allen, N.J. & Meyer, J.P. (1990). The measurement and antecedents of affective, continuance and normative commitment to the organization, Journal of Occupational Psychology, 63, Arthur, J.B Effects of Human Resource System on Manufacturing Performance and Turnoves, 3. Academy of Management Journal, Vol 37 No 3:pp Becker, B and Gerhart, B (1996) The Impact of Human Resource Management on Organizational Performance: Progress and Prospects. The Academy of Management Journal Vol. 39, No. 4 (Aug., 1996), pp Boxall, P. & Purcell, J. (2003). Strategy and human resource management. Basingstoke andnew York: Palgrave Macmillan.Cully, M.,Woodland, S. O Reilly, A and Dix, G Britain at Work: As Depicted by the 1998 Workplace Relations Survey Routledge,London. 6. Delaney, J. &Huselid, M. (1996). The impact of human resource management onperceptions of organizational performance, The Academy of Management Journal, 39 (4), Mohd.Yunus Sheikh, Dr. Gaurav Bissa

8 7. Fernie, S. Metcalf, D. and Woodland, S What has human rsource achieved in the workplace?,employment Policy Institute Economic Report, Vol 8 No Keenoy, T (1990) "M : A Case of the Wolf in Sheep sclothing?"personnel Review,Vol.192, pp Koys, D.J. (1988.) Human resource management and a culture of respect: Effects on employees` organizational commitment, Rights and Responsibilities Journal, 1, Koys, D.J. (19 91). Fairness, legal compliance and organizational commitment, Rights and Responsibilities Journal, 4, Lamba, S. &Choudhary, N. (2013). Impact of M on organizational commitment of employees, International Journal of Advancements in Research & Technology, 2 (4), Meyer, J.P. & Allen, N.J. (1997). in the work-place: Theory, research and application. Thousand Oaks, CA: Sage Publications. 13. Meyer,J.P.,Smith,C.A. (2000). M strageies for managing employee commitment: a case Study of small construction professional services firms. In Proceeding of the EngineeringProject Organizations Conference,pp Meyer, J.P. & Smith, C.A. (2000). M and organizational commitment: Test of a mediation model, Canadian Journal of Administrative Sciences, 17 (4), Mowday, R.T., Steers, R.M. & Porter, L.W. (1979). The measurement of organizationalcommitment, Journal of Vocational Behavior, 14, Stewart, G. L. &Brown,K. G. (2011 ). Human resource management.2nd edition, USA: John Wiley & Sons. 370 Mohd.Yunus Sheikh, Dr. Gaurav Bissa