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Major Project Report

ON

EMPLOYEE COMMITTMENT

Submitted in the Partial Fulfillment for the Requirement ofBachelors Business Administration

(BBA)

Guru Gobind Singh Indraprastha University (GGSIPU)

SUBMITED TO: SUBMITED BY:

Ms. Gauri Dhingra Ashish Singh Aswal

(Faculty Guide) 06121401710

JAGANNATH INTERNATONAL MANAGEMENT SCHOOL

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CERTIFICATE

This is to certify Ashisl Singh Aswal, a bonafide student of Bachelor of

Business Administration, Jagannath International Management School,

Vasant Kunj Affiliated with Guru Gobind Singh Indraprastha University,

enrolled for the batch 2010-2013, enrollment number 06121501710 has

done the project specializing in the field of Employee Commitment

under my Supervision.

PROJECT INTERNAL GUIDE

(Ms. Gauri Dhingra)

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ACKNOWLEDGEMENT

I wish to acknowledge the generous support provided by Ms.Gauri

Dhingra, Faculty Guide, who guided , supervised our project &

providing us an opportunity for practical training. She is very kind,

helpful and ready to remove the constraints all the time.

I also express my sincere gratitude towardsall the employees of the

company for providing us a chance to do our survey. They fully co-operatewhich helped me to complete my project work.

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Objectives

The main objective of this project is to analysis the

type of employee commitment, factor affectingemployee commitment, its benefit toorganization and ways of enhancing employeecommitment.

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CHAPTER-1

Introduction

The effective functioning of an organization highly depends on the

commitment of its employees. In fact, the commitment of employees may be

a key factor that determines the success of a company in the modern world

since, in the situation of the growing competition and the constant

implementation of new technologies a company needs to have well-qualified

and reliable personnel to maintain its position in the market. At the same

time, the effectiveness and productivity of work of employees still remain the

major factors that can contribute to the progress of the company. On the

other hand, nowadays it is obvious that financial stimuli solely can hardly

motivate employees to work more effectively and productively. In such a

situation, employees commitment turns to be of a paramount importance

since it is due to the high commitment of employees they can perform

positive results of their work, increase its effectiveness and productivity,

while low commitment leads, as a rule, to poor results of the functioning of

the entire organization.

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Employee commitment

Employee commitment in the fields ofOrganizational

Behavior and Industrial/Organizational Psychology is, in a general

sense, the employee's psychological attachment to the

organization. It can be contrasted with other work-related

attitudes, such as job satisfaction, defined as an employee's

feelings about their job, and organizational identification, defined

as the degree to which an employee experiences a 'sense of

oneness' with their organization.

Beyond this general sense, organizational scientists have

developed many nuanced definitions of organizational

commitment, and numerous scales to measure them. Exemplary

of this work is Meyer & Allen's model of commitment, which was

developed to integrate numerous definitions of commitment that

had proliferated in the literature.

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DEFINATION OF TERMS

EMPLOYEE COMMITMENT

It is the psychological bond of an employee to an organization, the strength of

which depends on the degree of employee involvement, employee loyalty andbelief in the values of the organization.

As defined by Poter (1974) Employee commitment is the relative strength of the

individual's identification with and involvement in a particular organization. It

consists of three factors:

A strong desire to remain a member of the organization

A strong belief in, and acceptance of, the values and goals of the

organization.

A readiness to exert considerable effort on behalf of the organization.

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MODELS OF COMMITMENT

A THREE MODEL CONCEPTUALIZATION OF ORGANIZATION

COMMITMENT.

This model of organizational commitment model was developed by Meyer and

Allen.

According to the model, organizational commitment reflects at least three general

themes.

1. Affective commitment to the organization

2. Continuance Commitment The perceived cost associated with leaving it

3. Normative Commitment- The obligation to remain with it.

Affective Commitment

Its the employees emotional attachment to, identification with and involvement in

the organization.

Employees with a strong affective commitment continue employment with the

organization because they want to.

Continuance Commitment

I t refers to an awareness of the costs associated with leaving the organization. The

potential cost of leaving an organization include the threat of The individual

commits to the organization because he/she perceives high costs of losing

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organizational membership including economic costs (such as pension accruals)

and social costs (friendship ties with co-workers) that could be incurred. The

employee remains with the organization because he/she has to.

NORTMATIVE COMMITMENTS

Refers to a feeling of obligation to continue employment . Employees in this

category remain in the organization because they feel they ought to.

Organization can develop normative commitment by providing reward in advance

e.g. paying college tuition. Normative pressures may also make an individual feel

that they ought to remain within the organization.

Acknowledging these investments makes employees feel a sense of obligation to

reciprocate by committing themselves to the organization until the debt has been

paid. One important point is that not all forms of employee commitment are

positively associated with superior performance (Meyer & Allen, 1997). For

example, an employee who has low affective and normative commitment, but who

has high continuance commitment is unlikely to yield performance benefits. The

main reason such an employee remains with an organisation is for the negative

reason that the costs associated with leaving are too great.

THE HIGH COMMITMENT MODEL. ( IN STRATEGIC HRM.)

This model embraces workforce commitment and identification with the

organizations values and goals. The main features of high commitment model are:

1. Development of career ladders and emphasis on trainability and commitment as

highly characteristic of employees at all levels in the organization.

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2.GENDER

3.MARITAL STATUS

DEVELOPING AN EMPLOYER BRAND.

As Troy points out, increasingly organizations are attempting to communicate with

prospective employees in a coherent manner by developing an employer brand.

The brand should condense the basic nature of the organization, what its values

are and what it would be like to work there. The principal purpose of the brand is to

efficiently bring employers and employees together in order to establish a

relationship. Thus, a good brand should convey both the unique benefits of the

organizational environment and the type of person who is likely to do well in that

setting. The organization must then ensure that it delivers these promises to its

employees, or its efforts will have been wasted. Employers should, therefore,

devote a portion of the selection process to assessing cultural fit.

Met Expectations

Employees will be more committed if there is a good match between what the

person is looking for in a job, and what the job provides . Commitment will be

greater when employees experiences on the job match their expectations. Unmet

expectations are a source of low morale and dissatisfaction. Such expectations

usually relate to the type of work employees are given to do and the opportunities

they receive for Training and Development.

Factors affecting commitment.

1. Strategic level

-supportive business strategies

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-Top management value of commitment

-Effective voice of HR in strategy making

2. HR policy level

-staffing based on employment stabilization

- investing on training and development

-continent compensation that reinforces cooperation

3. Workplace level

- Selection based on high standards

-Job design and team work

-employee involvement in problem solving

Benefits of employee commitment

High level of employee commitments means that employees are really enthusiastic

about their job and, their performance will be better as well as the effectiveness and

productivity of their work higher.Employee commitment also evokes a profound

interest of an employee to his/her work. This means that he/she enjoys the job

he/she does. Consequently, the level of employees satisfaction will be high if they

are really committed to their work.

Employee commitment may be also cost saving since committed employees are

highly motivated that means that they do not need increasing financial rewards for

their work, though it does not necessarily mean that employees should not receive

financial rewards at all, but the expenses of the organization at this point may

decrease.The performance benefits accrued from increased employee commitment

have been widely demonstrated in the literature. To list but a few, these include:

i. increased job satisfaction

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MEASURING EMPLOYEE COMMITMENT

This can be done through an attitude survey, employee satisfaction survey,

employee commitment survey and performance appraisals. Questioners are usually

administered to collect relevant data that management later uses when deciding

ways of increasing employee commitment.

WAYS OF ENHANCING EMPLOYEE COMMITMENT

Organizations can use various strategies to increase employee commitment. This

strategies include:

Induction and Training

The induction programme should be the final step of the recruitment and selection

process. A good induction programme will make new employees more familiar with

and more at ease within the organization. Employees enter the organization with an

assumption of compatibility and should be welcomed.

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Relationships with Managers

This refers to how the quality of the relationship between managers and their

employees relates to the development of commitment. Employees commitment

reflects their day to day contacts with their line managers about their job, and the

way in which objective targets are set. Effective communication on job-related

issues is a key ingredient in securing individual performance.

Relationships with Colleagues

Emotional attachment to colleagues in the workplace is an important element of

commitment, though It is not enough on its own. Organizations that want to build

high levels of commitment should look for ways to build this through group activities

both in and out of work

Group Membership

To build commitment, being a member of a particular organization must not only

satisfy employees social need to affiliate and belong, but must also create a sense

of collective identity that differentiates the group from other organizations.. The

more exposure that employees have to these features, the more likely they will be

to feel like a part of the group and to incorporate that membership into their concept

of who they are.

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can work in an organization even after reaching the retirement age sends the

message that the organization is committed to its employees and so the employees

in turn will seek to be committed to the organization.

Another way of enhancing employee commitment is by conducting exit interviews,

since the interviewee will be leaving the organization it is believed that they will

reveal loopholes in the management or job design that contribute to low morale

among employees. The management can then use the information to put

necessary measures in place to enable employees develop commitment in their

work.

Management should also ensure that confidentially is practiced especially where

there is sensitive information concerning employees. Such information may include

health status, marital issues,financial position of employees among many others.

The following values should also be practiced.

1. Fairness

2. Trust

3. Concern for employees.

CHAPTER-2

REVIEW OF LITERATURE

EMPLOYEE ENGAGEMENT

Different definitions by different people:

1. Almost 20 years ago, ethnographic researcher W. A. Kahn (1990) in hisbook first conceptualized EMPLOYEE ENGAGEMENT as the harnessing oforganizational members selves to their work roles. In engagement, people employ and express themselves physically, cognitively, and emotionallyduring role performances.

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also use the term commitment when referring to employee engagement. Forexample: Flemming, Coffman & Harter (2005) as cited in (Little & Little, 2006) usedthe term committed employees as a synonym for engaged employees.

CHAPTER-3

RESEARCH DESIGN AND

METHODOLOGY

THE RESEARCH PROBLEM

The problem formulation is the first step to a successful research process. The

project undertakes the problem of analyzing the factor affecting the employee

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commitment in TGK INDIA and to identify the different ways and strategies toenhance the commitment of employees.

THE RESEARCH OBJECTIVE

To identify the effect of Vikram 750D on various automotive range.

Customers preferences, buying attitude and the product image of Vikram

750 D in loader segment.

To identify the competitors in the loader segment of three wheelers in CNG

and the loader segment where a company need to change or add

something.

To study customers post purchase behavior for the product ,brand and the

company.

To study the customer perception about Vikram 750 D in loader segment.

THE RESEARCH DESIGN

The research design used in the project is Descriptive Design.The investigation is carried upon the employees of the TGK INDIA. The reason forchoosing this design is to identify and analysis the factor affecting the employeecommitment.

THE DATA SOURCEAvailable with me was the employees database which was a reliable and authenticsource and from those documents maintained by HR department I used to distributethe questionnaire to the employees. It consisted of the first hand source of data

collected through the questionnaires from the respondents..

DATA COLLECTION METHOD

The data collection method used is primary data source. It was done by collection

of information from the respondents by me.The method of gathering information is

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TABLE-2

Gender

Male Female

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Male

Female

3. How far you satisfied with the working hours?

a. Highly satisfied

b. Satisfied

c. Dissatisfied

d. Highly Dissatisfied

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a. Agree

b. Disagree

TABLE-5

Agree Disagree

20 5

Agree

Disagree

6. Does the company provide attractive opportunities for your career?

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a. Strongly agree

b. Agree

c. Strongly Disagree

d. Disagree

TABLE-6

Strongly agree Agree Disagree Strongly

disagree

5 4 10 6

Strongly Agree

Agree

Disagree

Strongly Disagree

7. Does your superior clearly explains about your tasks and responsibilities assign to you?

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a. Strongly agree

b. Agree


d. Disagree

TABLE-7

Strongly agree

AgreeDisagree

Strongly Disagree

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disagree

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8. Does workload have been distributed equally throughout unit?

a. Yes

b. No

TABLE-8

YES No

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Yes

No

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9. Have you been satisfied with the level of pay do you receive?

a. Highly satisfied

b. Satisfied

c. Dissatisfied


TABLE-9

Highly Satisfied Satisfied Dissatisfied Highly

Dissatisfied

2 6 12 5

highly satisfied

satisfied

Highly satisfied

dissatisfied

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10. Your job is made to have participative decision making?

a. Strongly Agreeb. Agree

c. Disagree

d. Strongly Disagree

TABLE-10

Strongly agree

Agree

Disagree

Strongly disagree

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disagree

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Strongly agree

Agree

Disagree

Strongly disagree

12. Your idea is considered by your superior

a. Always

b. Rarely

c. Sometimes

d. Never

TABLE-12

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Always Rarely Sometimes Never

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Strongly agree

Agree

Disagree

Strongly disagree

13. Do the company have enough career development opportunities?

a. Yes

b. No

TABLE-13

YES No

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Yes

No

14. Does your work has been monitored by your supervisor ?

a. Regular basis

b. Very Often

c. Sometimes

d. Rarely

e. Never

TABLE-14

40

Regular

Basis

Very

Often

Sometimes Rarely Never

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Regular Basis

Very Often

Sometimes

Rarely

Never

15. My superior has a friendly working relationship with all the team members

a. Strongly Agree

b. Agree

c. Disagree


TABLE-15

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Strongly agree

Agree

Disagree

Strongly disagree

Summary

This project has presented a review of the current thinking about defining and

creating employee commitment, which is an evolving topic currently receiving

considerable attention. It has been identified as a multi-dimensional concept which

has important impacts on an organization through its effects on employee

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performance, turnover and absence, and via its influence on customer attitudes to

the bottom line.

Commitment can be divided into five components, each of which are created by

different factors. These are defined as follows:

Affiliative: The compatibility of the employees and the organizations interests

and values.

Associative: The employees perception of belonging to the organization.

Moral: The sense of mutual obligation between the employee and the

organization.

Affective: The feeling of job satisfaction experienced by the employee.

Structural: The belief that the employee is engaged in a fair economic exchange.

Job satisfaction is an important component of commitment, but should not be

perceived as equivalent to it. Commitment has more positive outcomes for the

organization in terms of employee performance. Job satisfaction can be promoted

by making work as enjoyable as possible, providing growth and development

opportunities and making provisions for staff to assist them in balancing their work

and personal lives.Once established, commitment has to be maintained by

ensuring staff have clear roles and responsibilities, and an understanding of what is

required of them in their jobs. Good communication and openness throughout the

organization is vital, especially in times of change.

Conclusion

It is possible to conclude that employee commitment is a very significant factor

contributing to the positive organizational outcomes. It may increase productivity,

effectiveness of work and motivation of employees, while low commitment leads to

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the opposite outcomes. At the same time it is necessary to maintain high level of

employee commitment through leadership, development, empowerment, and

supervision.

.

Radical organizational changes often lead to reduced commitment caused by

increased job insecurity, increased stress, decreased trust and job redesign. Since

organizational commitment has strong correlation with job performances it is very

important to reinforce it by applying the right human resources polices. An

employee commitment doesnt comes from P.S.U or Private sector organization .It

matters how the company takes care of its employee, attract and retain them in an

organization. It matters how the company provides them an opportunity to grow and

develop to give better results.

Bibliography

1.Allen, N.J., & Meyer, J.P. 1990.

(The measurement and antecedents of affective, continuance, and

normative commitment to the organization).

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2.Caldwell, D.F. & OReilly, C.A. 1990.

(Measuring person-job fit within a profile comparison process.)

3.Cohen A 1993( Age and tenure in relation to organizational commitment: A

meta-analysis)

4.Dunham, R.B., Grube, J.A. & Castenada, M.B. 1994.

( Organizational commitment: The utility of an integrative definition.)

5.Gary,d (2005) Human resource management

1. www.hrzone.com

2. www.aon.com

3. www.expressitpeople.com

4. www.watsonwyatt.com

5. www.merceric.com

6. www.emgcorp.com

QUESTIONNAIRE

1. Age of the respondent

a. Below 25

b. 25-35

c. 35-45d. Above 45

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http://www.hrzone.com/http://www.aon.com/http://www.expressitpeople.com/http://www.watsonwyatt.com/http://www.merceric.com/http://www.hrzone.com/http://www.aon.com/http://www.expressitpeople.com/http://www.watsonwyatt.com/http://www.merceric.com/


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2.Gender of the Respondent Male Female

3. How far you satisfied with the working hours?

a. Highly satisfied

b. Satisfiedc. Dissatisfied.


4. Does the organization polices are clearly communicated?

a. Yes

b. No

5. Have you been provided with proper skill and training

a. Agree

b. Disagree

6. Does the company provide attractive opportunities for your career?

a. Strongly agree

b. Agree


d. Disagree

7. Does your superior clearly explains about your tasks and responsibilities assign to you?

a. Strongly agree

b. Agree

c. Strongly Disagreed. Disagree

8. Does workload have been distributed equally throughout unit?

a. Yes

b. No

9. Have you been satisfied with the level of pay do you receive?

a. Highly satisfied

b. Satisfiedc. Dissatisfied


10. Your job is made to have participative decision making?

a. Strongly Agree

b. Agree

c. Disagree


11. Your good performance is reinforced by a reward system.

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a. Strongly Agree

b. Agree

c. Disagree


12. Your idea is considered by your superiora. Always

b. Rarely

c. Sometimes

d. Never

13. Do the company have enough career development opportunities?

a. Yes

b. No

14. Does your work has been monitored by your supervisor ?

a. Regular basis

b. Very Often

c. Sometimes

d. Rarely

e. Never

15. My superior has a friendly working relationship with all the team members

a. Strongly Agree

b. Agree

c. Disagree


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