Professional Ethics and Organizational Productivity for Employee Retention

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1 Professional Ethics and Organizational Productivity for Employee Retention Sandhya Kethavath JNTU, India ABSTRACT Values and ethics function as criteria, which govern goals at various levels of organization. Higherlevel values influence the relevance and availability of options for choice. Purposive systems are enabled by negative feedback to liberate outputs, to some degree, from random or contingent factors, so that relative constancy of action towards goals can be maintained over time. Such relative freedom is vital for life, but depends on an enabling organization. Such an account points to possibilities for a more objective account of the nature and role of professional values, with implications for epistemology, ethics and the philosophy of mind. Also suggests that, in a politically free society, the structure of authority must be a function of the needs and goals of the individuals within it. This paper contributes to the very limited number of studies that analyze the influence of professional ethics and organizational productivity on job performance, employee engagement, and willingness to help collegiality, perpetuity towards organization and competency scale for better employee retention. 1. INTRODUCTION 1.1 INTRODUCTION Decision-making was long in need of methods of prioritization but now needs to complete the scope of its structures to become a dependable science that can be helpful on the micro level. Most of the factors that determine the structure of a decision depend largely on the feelings and memories of the decision makers and that leaves room for doubt about the completeness of the decision. The decision makers would be helped by having available a general well-researched list of factors for some of their complex decisions in order to have greater assurance that their decisions are comprehensive and right. To do that, they must have wide exposure and be familiar with the full spectrum of human values and environmental opportunities. Our concern is about structuring decisions in a reliable way to serve the needs of decision makers. The effective management of people is a critical component of organizational competitiveness. When we think of our ethics and values, we think of what is important to us in our lives (e.g., security, independence, wisdom, success, kindness, pleasure). Each of us holds numerous values with varying degrees of importance. A particular value may be very important to one person, but unimportant to another. Consensus regarding the most useful way to conceptualize basic values has emerged gradually since the 1950 s. Values A value usually appears as a guideline or norm that helps us to judge what is or is not right or good in any situation. (e.g., security, independence, wisdom, success, kindness, pleasure). Values function as criteria which govern goals at various levels of organization. Locke s value theory This theory posits that job satisfaction is the relation between jobs out comes realized as compared to those desired. Locke s approach focuses on any outcomes that people value, regardless of what they are and not necessarily lower order needs. The key to satisfaction according to theory is the discrepancy between those aspects of the job one has and those one wants the greater the discrepancy lesser the satisfaction. Locke s theory calls attention to those aspects of the job that need to be attended for job satisfaction to result. Specifically the theory suggested that these aspects might not be same for all people, but any value aspect of the job about which people perceive serious discrepancies. > RJSSM: Volume: 06, Number: 04, August 2016 Page 50

2 Job performance Performance, output and productivity form the backbone of organizations. High performance, high commitment and loyalty are the desired expectations of organizations. Individuals enter organization with some needs, aspirations and expectations about work life. Organizations on the other hand, focus on productivity, commitment and loyalty. Individual performance is a function of the product of ability and Motivation, which may be presented as Performance = [ability x motivation] Ability here may be interpreted as a competence, skill or knowledge. The interaction of the basic abilities with motivation leads to performance. Performance is the accomplishment of a given task measured against preset known standards of accuracy, completeness, cost, and speed. Employee Engagement Engagement is an indicator of an employee s willingness to expend discretionary effort to help the employer (Erickson, 2005). Employee engagement, also referred to as work engagement, worker engagement and job engagement, connotes high levels of personal investment in and emotional connection with the work tasks performed in a job ( Kahn, 1990). It is different from job attitudes. But, Robinson, Perryman, & Hayday, (2004) define employee engagement as a positive attitude held by the employee towards the organization and its value; an engaged employee is aware of business context, and works with colleagues to improve performance within the job for the benefit of the organization. An organization must work to develop and nurture engagement, which requires a twoway relationship between employer and employee. Outcomes of Employee Engagement: Perpetuity: Perpetuity is an annuity that has no end, or a stream of cash payments that continues forever. Perpetuities are one of the time values of money methods for valuing financial assets. Perpetuities are a form of ordinary annuities. Perpetuity is an annuity in which the periodic payments begin on a fixed date and continue indefinitely. It is sometimes referred to as a perpetual annuity. Fixed coupon payments on permanently invested (irredeemable) sums of money are prime examples of perpetuities. Scholarships paid perpetually from an endowment fit the definition of perpetuity. The value of the perpetuity is finite because receipts that are anticipated far in the future have extremely low present value (present value of the future cash flows). Unlike a typical bond, because the principal is never repaid, there is no present value for the principal. Assuming that payments begin at the end of the current period, the price of perpetuity is simply the coupon amount over the appropriate discount rate or yield. That is PV \ = \ {A \over r} Where PV = Present Value of the Perpetuity, A = the Amount of the periodic payment, and r = yield, discount rate or interest rate. 1.2 SCOPE: The study covered the important aspects of professional ethics and organizational productivity for employee retention. The study is carried on for 45 days. Therefore the data collection was restricted to only 81 employees only. The study was restricted to Hyderabad only. Aspects such as job performance, employee engagement, willingness to help human beings and perpetuity of the organization were studied. 1.3 OBJECTIVES: To know whether there is significant relationship among the job performance, employee engagement, competency scale, willingness to help human beings and help the perpetuity of organizations to retain the skilled workforce. Gender impact on the job performance Impact of age on the willingness to help human beings. 1.4 RESEARCH METHODOLOGY: 1. Primary data: It is obtained from the direct personal and indirect & oral interaction. > RJSSM: Volume: 06, Number: 04, August 2016 Page 51

3 2. Secondary data: Secondary data is the data that have been already collected by and readily available from other sources like literature reviews, websites, articles, journals, magazines and text books. 1.5 Following statistical tools are used for analysis: 1. Excel & SPSS 2. Statistical tools like reliability analysis, correlation test, recoding of the gender, frequencies, regression analysis, independent sample t-test, chi-square or cross tabs test. 1.6 Variables taken for study: Job Performance Employee Engagement Competency Scale Willingness to help collegiality Willingness to help the perpetuity of organization DATA ANALYSIS TABLE:1 DATA ANALYSIS: SYNTAX: ANALYZE SCALE RELIABILITY ANALYSIS Ø JOB PERFORMANCE: Case Processing Summary N % Valid Cases Excluded a 1.6 Total a. Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbach's N Alpha Items of Cronbach s alpha value for the variable Job performance is.804. The construct/variable is 6 items/statements. From the above table it is clear that Cronbach s alpha value is more than.60 or 60% which shows the validity of the construct taken for study. > RJSSM: Volume: 06, Number: 04, August 2016 Page 52

4 Ø EMPLOYEE ENGAGEMENT: Case Processing Summary N % Valid Cases Excluded a 1.6 Total a. Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbach's N Alpha Items of Cronbach s alpha value for the variable Employee engagement.804 The construct /variable is 6items/statements From the above table it is clear that cronbach s alpha vale is more than 0.60 or 60% which shows the validity of the construct taken for study. Ø COMPETENCY SCALE: Case Processing Summary N % Valid Cases Excluded a 1.6 Total a. Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbach's N Alpha Items of Cronbach s alpha value for the variable.815 The construct/variable is 3items/statements From the above table it is clear that cronbach s alpha value is more than 0.60 or 60% which shows the validity of the construct taken for study. > RJSSM: Volume: 06, Number: 04, August 2016 Page 53

5 Ø WILLINGNESS TO HELP COLLEGIALITY: Case Processing Summary N % Valid Cases Excluded a 1.6 Total a. Listwise deletion based on all variables in the procedure. Cronbach's N Alpha Items of Cronbach s alpha value for the variable.853 The construct /variable is 6items/statements. From the above table it is clear that cronbach s alpha value is more than 0.60 or 60% which shows the validity of the construct taken for study. Ø WILLINGNESS TO HELP ORGANIZATIONS: Case Processing Summary N % Valid Cases Excluded a 1.6 Total a. Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbach's N Alpha Items of Cronbach s alpha value for the variable.839. The construct/ variable is 5items/statements. From the above table it is clear that cronbach s alpha value is more than 0.60 or 60% which shows the validity of the construct taken for study. TABLE 2: CORRELATION TEST: Correlation is calculated to understand the relationship between the variables. If the significance value is less than 5% there exists a relationship otherwise there is no relationship if the p value or significance value is more than 5%. > RJSSM: Volume: 06, Number: 04, August 2016 Page 54

6 SYNTAX: ANALYZE CORRELATE BIVARIATE Correlations jobperf employee competency willingness willingness engagement scale to help to help human organizations beings Pearson **.720 **.641 **.567 ** Correlation Jobperf Sig. (2-tailed) N Pearson employee Correlation.488 ** **.425 **.624 ** engagement Sig. (2-tailed) N Pearson.720 **.590 ** **.671 ** Correlation competency scale Sig. (2-tailed) N Pearson willingness to help Correlation.641 **.425 **.654 ** ** human beings Sig. (2-tailed) N Pearson willingness to help Correlation.567 **.624 **.671 **.644 ** 1 organizations Sig. (2-tailed) N **. Correlation is significant at the 0.01 level (2-tailed). INTREPRETATION: There is a relationship between Job Performance and Employee Engagement as the significance value for Sig. (2 tailed) is less than 5%. There is a relationship between Job Performance and Competency Scale as the significance value for Sig. (2 tailed) is less than 5%. There is a relationship between Job Performance and Willingness to help collegiality as the significance value for Sig. (2 tailed) is less than 5%. There is a relationship between Job Performance and Willingness to help Organizations as the significance value for Sig. (2 tailed) is less than 5%. > RJSSM: Volume: 06, Number: 04, August 2016 Page 55

7 TABLE:3 RECODING OF THE GENDER SYNTAX: TRANSFORM AUTOMATIC RECODE RECODE GENDER In the above sample the Number of females were noted as 38 and the number of males were noted as 116. Gender has been recorded, for the purpose of using gender, in other statistical tools like regression or T-Test or Anova test. TABLE :4 FREQUENCIES The frequencies are calculated to understand the exact number in the text variables. SYNTAX: ANALYZE DESCRIPTIVE STATISTICS FREQUENCIES > RJSSM: Volume: 06, Number: 04, August 2016 Page 56

8 In the above sample the Number of females was noted as 38 and the number of males was noted as 116. Gender has been recorded for the purpose of using gender in other statistical tools like regression or T-Test or ANOVA Test. TABLE 5:REGRESSION ANALYSIS SYNTAX: ANALYZE REGRESSION LINEAR Variables Entered/Removed a Model Variables Entered Variables Removed Method 1 employee engagement, jobperf b. Enter a. Dependent Variable: willingness to help the perpetuity of organizations b. All requested variables entered. > RJSSM: Volume: 06, Number: 04, August 2016 Page 57

9 Model Summary Mode R R Adjusted R Std. Error of l Square Square the Estimate a a. Predictors: (Constant), employee engagement, jobperf ANOVA a Model Sum of Squares Df Mean Square F Sig. Regression b 1 Residual Total a. Dependent Variable: willingness to help the perpetuity of organizations b. Predictors: (Constant), employee engagement, jobperf Coefficients a Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta (Constant) Jobperf employee engagement a. Dependent Variable: willingness to help organizations The above analysis was done using Regression analysis Regression analysis is done to know the cause and effect relationship. In this analysis both dependent and independent variables are taken for the study. The dependent variable taken from the study is willingness to help the perpetuity of organizations and independent variables as job performance and employee engagement. The analysis was Multiple analysis where multiple independent variables was taken into consideration. The above table depicts that s there exists a relationship between Willingness to help the perpetuity of Organizations, Employee engagement and job performance From the above table we can conclude that the factors of willingness to help organizations have significant impact on the job performance and employee engagement and also shows the employee retention attitude. TABLE : 6 INDEPENDENT SAMPLE T-TEST SYNTAX: ANALYZE COMPARE MEANS INDEPENDENT SAMPLE T-TEST > RJSSM: Volume: 06, Number: 04, August 2016 Page 58

10 Group Statistics GENRE C Jobper f N Mean Std. Deviation Std. Mean F M Error Independent Samples Test Levene's Test for Equality of Variances F Sig. t Df Sig. (2- tailed) jobperf Equal variances assumed Equal variances not assumed INTERPRETETION: t-test for Equality of Means Mean Difference Std. Error Difference 95% Confidence Interval of the Difference Lower Upper The above analysis was done using Independent sample T-TEST. T-TEST analysis is done to know test variables and scale variables. In this analysis, Gender does not have any impact on the job performance as the significant value is more than 5%. TABLE :7 CHI-SQUARE OR CROSS TABS TEST SYNTAX: ANALYZE DESCRIPTIVE STATISTICS CROSSTABS Cases Valid Missing Total N Percent N Percent N Percent GENREC * Highest Educational Qualification % 1 0.6% % GENREC * Marital status % 1 0.6% % GENREC * V/Non-V % 1 0.6% % GENREC * Smoker/Nonsmoker % 1 0.6% % GENREC * Drinker/Nondrinker % 1 0.6% % > RJSSM: Volume: 06, Number: 04, August 2016 Page 59

11 GENREC * Smoker/Nonsmoker Crosstabulation Count Smoker/Nonsmoker Total NS S F GENREC M Total GENREC * Drinker/Nondrinker Crosstabulation Count Drinker/Nondrinker Total D ND F GENREC M Total INTERPRETETION: The above analysis was done using crosstabs test. This test is done to know the exact number ie. Text to Text. In this analysis, both Smokers/Non-smokers and Drinker/Non-Drinker are taken into consideration. FINDINGS, SUGGESTIONS, CONCLUSIONS FINDINGS It is clear from the Reliability analysis that all the Cronbach s alpha values are above It indicates that all the constructs are valid and contribute to the project professional ethics and Organizational Productivity. The Independent Sample test done whether there is significant difference in the job performance when Gender is considered in the organization The Table -2 the significant two tail test should be less than 5% but it is more that means it clearly signifies that both males and females are not equally contributing to the Organizational productivity. The correlation table says that all the factors or the constructs taken for the analysis of the study ie Employee engagement, Willingness to help colllegiality, Perpetuity towards the organization, Job performance and competency scale are perfectly correlated to each other. The significance levels are close to 0.05 which signifies the relationship between the variables and once again all are contributing factors to the professional ethics and organizational productivity which in turn enhances the employee retention. The regression analysis says that organizational productivity is dependent on the job performance and employee engagement. SUGGESTIONS Out of the sample size 144, the males are more in number than females so when coming to the performer s category generalizations are drawn. The employee engagement outcomes are very good in the organization and the organization can follow the same competency scale techniques to encourage the employees. Infuse energy and positivity at work place. > RJSSM: Volume: 06, Number: 04, August 2016 Page 60

12 Clear and open communication, quality of interaction with peers, collaboration, organization policy, organization performance are all contributing factors to organizational productivity. CONCLUSION The commitment of the employees of the organizations and their over and above performance otherwise called employee engagement, their sincerity, willingness attitude to help the collegiality and several other factors contribute to the congenial atmosphere in the organizations which in turn results increases the organizational productivity. There is also further scope for the other factors to be taken for the research. As the correlation significance shows positive results it can be concluded that all the factors taken for the present study are perfectly correlated and are contributing to the professional ethics and organizational productivity leading to increased employee retention. > RJSSM: Volume: 06, Number: 04, August 2016 Page 61

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