big bazaar-organisational commitment report
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EXECUTIVE SUMMARY
An attempt is made to study the level of organisation commitment among the
employees at pantaloon retail India limited –Big bazaar, KSRTC
The research was carried for period of eight weeks from 3May to June 29,
2010.A descriptive research was carried by taking convenience sampling for the
employees of the each group. A well structured questionnaire was prepared and
administered to employee sample of 100.
The opinions are collected and tabulated, and it is analyzed through tables and
percentage analysis. The results of the analysis are used for drawing the conclusions.
A remedial measure / recommendation were suggested based on the findings.
[MHRM 2008-2010] Page 1
SECTION I
PROFILE STUDY OF THE
ORGANISATION
[MHRM 2008-2010] Page 2
1. INDUSTRY PROFILE
1.1 INDIAN RETAIL INDUSTRY
The Indian retail market, which is the fifth largest retail destination globally, has been
ranked the second most attractive emerging market for investment after Vietnam in
the retail sector by AT Kearney's seventh annual Global Retail Development Index
(GRDI), in 2008. The share of retail trade in the country's gross domestic product
(GDP) was between 8–10 per cent in 2007. It is currently around 15 per cent, and is
likely to reach 22 per cent by 2010.
A McKinsey report 'The rise of Indian Consumer Market', estimates that the Indian
consumer market is likely to grow four times by 2025. Commercial real estate
services company, CB Richard Ellis' findings state that India's retail market is
currently valued at US$ 511 billion.
Banks, capital goods, engineering, fast moving consumer goods (FMCG), software
services, oil marketing, power, two-wheelers and telecom companies are leading the
sales and profit growth of India Inc in the fourth quarter of 2008-09. India continues
to be among the most attractive countries for global retailers. At US$ 511 billion in
2008, its retail market is larger than ever and drawing both global and local retailers.
Foreign direct investment (FDI) inflows as on January 2009, in single-brand retail
trading, stood at approx. US$ 25.18 million, according to the Department of Industrial
Policy and Promotion (DIPP).
India's overall retail sector is expected to rise to US$ 833 billion by 2013 and to US$
1.3 trillion by 2018, at a compound annual growth rate (CAGR) of 10 per cent. As a
[MHRM 2008-2010] Page 3
democratic country with high growth rates, consumer spending has risen sharply as
the youth population (more than 33 percent of the country is below the age of 15) has
seen a significant increase in its disposable income. Consumer spending rose an
impressive 75 per cent in the past four years alone. Also, organized retail, which
accounts for almost 5 per cent of the market, is expected to grow at a CAGR of 40 per
cent from US$ 20 billion in 2007 to US$ 107 billion by 2013.
India has emerged the third most attractive market destination for apparel retailers,
according to a new study by global management consulting firm AT Kearney. It
further says that in India, apparel is the second largest retail category, representing 10
per cent of the US$ 37 billion retail market. It is expected to grow 12-15 per cent per
year. Apparel, along with food and grocery, will lead the organized retailing in India.
India has one of the largest numbers of retail outlets in the world. A report by Images
Retail estimates the number of operational malls to grow more than two-fold, to cross
412, with 205 million square feet by 2010, and a further 715 malls to be added by
2015, with major retail developments even in tier-II and tier-III cities in India
1.2 INDIAN ORGANISED RETAIL SECTOR
The overall retail market in India is likely to grow at a CAGR of 5.5% (at constant
prices) to 1,677,000 Cr in 2015. The organized retail market is expected to grow
much faster at a CAGR of 21.8% (at constant prices) to Rs. 246,000 Cr by 2015
thereby constituting ~15% of the overall retail sales. Based on our projections, the top
5 organized retail categories by 2015 would be food, grocery & general merchandise,
apparel, durables, food service and home improvement.
Retailers inspired by the Wal-Mart story of growth in small town America are
tempted to focus on smaller towns and villages in India. However, a careful analysis
[MHRM 2008-2010] Page 4
of the town strata-wise population, population growth, migration trends and consumer
spend analysis reveals a very different picture for India.
As per our estimates, the share of the 35 towns with current population greater than
1mn in the overall population of India would grow much faster from 10.2% today to
reach 14.4% by 2025. Simultaneously, the share of these towns in the overall retail
market would grow from 21% today to 40% by 2025. Within these top 35 towns, an
estimated 70-80% of trade could be in the organized Sector.
Retail market in the Indian organized sector is expected to cross Rs 1000
billion by 2010.Traditionally the retail industry in India was largely unorganized,
comprising of drug stores, medium, and small grocery stores. Most of the organized
retailing in India have started recently and is concentrating mainly in metropolitan
cities.
The growth in the Indian organized retail market is mainly due to the change
in the Consumer’s behavior. This change has come in the consumer due to increased
income, changing lifestyles, and patterns of demography which are favorable. Now
the consumer wants to shop at a place where he can get food, entertainment, and
shopping all less than one roof. This has given Indian organized retail market a major
boost.
Retail market in the organized sector in India is growing can be seen from the
fact that 1500 supermarkets, 325 departmental stores, and 300 new malls are being
built. Many Indian companies have entered the Indian retail market which is giving
Indian organized retail market a boost.
Indian organized retail market is growing at a fast pace due to the boom in the
India retail industry. In 2005, the retail industry in India amounted to Rs 10,000
billion accounting for about 10% to the country's GDP. The organized retail market in
India out of this total market accounted for Rs 350 billion which is about 3.5% of the
total revenues. Retail market in the Indian organized sector is expected to cross Rs
[MHRM 2008-2010] Page 5
1000 billion by 2010.Traditionally the retail industry in India was largely
unorganized, comprising of drug stores, medium, and small grocery stores. Most of
the organized retailing in India have started recently and is concentrating mainly in
metropolitan cities.
The growth in the Indian organized retail market is mainly due to the change
in the Consumer’s behavior. This change has come in the consumer due to increased
income, changing lifestyles, and patterns of demography which are favorable. Now
the consumer wants to shop at a place where he can get food, entertainment, and
shopping all less than one roof. This has given Indian organized retail market a major
boost.
Retail market in the organized sector in India is growing can be seen from the
fact that 1500 supermarkets, 325 departmental stores, and 300 new malls are being
built. Many Indian companies have entered the Indian retail market which is giving
Indian organized retail market a boost.
1.3 GROWTH PHASE OF INDIAN RETAIL SECTOR TO CONTINUE
The phase of high growth of Indian retail sector is expected to Continue due to
huge amounts of investments and breaking up of traditional concepts in this sector.
These are leading to various changes and are providing further boost to the growth of
the Indian Retail Sector. The Indian Retail Sector that includes the traditional retail
and the modern retail is estimated to grow at a very fast pace from US$ 336 billion, in
2006 to US$ 590 billion, by 2011.The traditional retail sector is expected to increase
from US$ 324 billion, in 2006 to US$ 493 billion, by 2011. The share of the modern
retail in the Indian Retail Sector is also estimated to increase from 4% in 2008, to
16% in the next five years. This exceptional growth is expected to take place in the
retail sector due to large amounts of investment which is estimated to be about US$
[MHRM 2008-2010] Page 6
35 billion in the next five years. The "cash- and- carry" activities are expected to
receive the majority of investments.
The maximum amount of growth in the Indian Retail Sector will be registered
in the topmost 50 to 60 markets that are located in the urban areas. These markets
would be mostly supermarkets and hypermarkets. However, these supermarkets and
hypermarkets will also witness fast erosions in their margins. Further, it is estimated
that in the longer run, the convenient stores that are located in the local neighborhood
will continue to survive.
A major focus area in the Indian retail sector is the supply chain management.
In the western countries, the retail sector has a highly developed system of supply
chain. However developments in supply chain in Indian retail sector has been quite
slow.Other areas that need attention for the growth of the Indian retail sector to
continue includes duty and tax structures, infrastructure, rising land prices and
effective trend forecasting.
Trend forecasting needs to be done in the country especially in the segments
of cosmetics, apparel and footwear for this will help the retail companies to curtail
their expenses substantially. Also another area that requires attention is manpower for
it is estimated that the sector of Indian Retail will suffer from shortage of manpower
by about a million people, by 2012.
The chains in the Indian retail sector need to frequently change their stocks
and also adopt concepts like home delivery. If all these areas are given immediate
attention then the growth phase of Indian retail sector would continue at a very fast
pace. The Indian retail sector would then witness the setting up of retail parks that
are flourishing in Europe. Further, the growth Of the Indian retail sector would help
in making the country ready for big retailers by 2015-2016.
1.4 GROWTH FACTORS IN INDIAN ORGANISED RETAIL SECTOR
The Indian Retail growth can be attributed to the several factors including:
[MHRM 2008-2010] Page 7
Demography Dynamics: Approximately 60 per cent of Indian population below 30
years of age.
Double Incomes: Increasing instances of Double Incomes in most families coupled
with the rise in spending power.
Plastic Revolution: Increasing use of credit cards for categories relating to Apparel,
Consumer Durable Goods, Food and Grocery etc.
Urbanization: increased urbanization has led to higher customer density areas thus
enabling retailers to use lesser number of stores to target the same number of
customers. Aggregation of demand that occurs due to urbanization helps a retailer in
reaping the economies of scale. Covering distances has become easier: with increased
automobile penetration and an overall improvement in the transportation
infrastructure, covering distances has become easier than before. Now a customer can
travel miles to reach a particular shop, if he or she sees value in shopping from a
particular location.
1.5 SCOPE OF INDIAN RETAIL MARKET
The scope of the Indian retail market is immense for this sector is poised for
the highest growth in the next 5 years. The India retail industry contributes 10% of
the countries GDP and its current growth rate is 8.5%. In the Indian retail market the
scope for growth can be seen from the fact that it is expected to rise to US$ 608.9
billion in 2009 from US$ 394 billion in 2005.
The organized retailing sector in India is only 3% and is expected to rise to
25- 30% by the year 2010. There are under construction at present around 325
departmental stores, 300 new malls, and 1500 supermarkets. This proves that there is
a tremendous scope for growth in the Indian retail market.
The growth of scope in the Indian retail market is mainly due to the change in
the consumer’s behavior. For the new generation have preference towards luxury
[MHRM 2008-2010] Page 8
commodities which have been due to the strong increase in income, changing
lifestyle, and demographic patterns which are favorable.
The scope of the Indian retail market has been seen by many retail giants and that’s
the reason that many new players are entering the India retail industry.
The major Indian retailers are:
Pantaloons Retail India Ltd
Shoppers Stop
Bata India Ltd
Music World Entertainment Ltd.
1.6 OPPURTUNITIES IN INDIAN ORGANISED RETAIL SECTOR
The opportunities in Indian organized retail sector are many for this sector is
witnessing a boom. The retail industry in India amounted to US$ 200 billion in 2006,
and out of this amount the Indian organized retail sector amounted to US$ 6.4 billion.
The opportunities in India organized retail sector can be judged from the fact that by
2010 it is expected to rise to US$23 billion.
The various opportunities in the organized retail sector in India are mainly
there for the Indian consumers behavior pattern has changed. Now the Indian
consumer gets more hefty pay- packages, is younger, a large number of women are
working, western influences, and more disposable income have opened a lot of
opportunities in Indian organized retail sector.
The Indian consumer wants to shop, eat and get entertainment in one place
which has also given Indian organized retail sector an opportunity to grow. The
Indian government in 2005 allowed foreign direct investment (FDI) in single brand
retail to 51%. This has opened up a lot of opportunities in India organized retail
sector. In fact 325 departmental stores, 300 new malls, and 1500 supermarkets are
[MHRM 2008-2010] Page 9
being built which shows the tremendous opportunities in the organized retail sector in
India.
1.7 CHALLENGES FACING IN THE INDIAN ORGANIZED RETAIL
SECTOR
The challenges facing the Indian organized retail sector are various and these
are stopping the Indian retail industry from reaching its full potential. The behavior
pattern of the Indian consumer has undergone a major change. This has happened as
the Indian consumer is earning more now, western influences, women working force
is increasing, desire for luxury items and better quality. He now wants to eat, shop,
and get entertained under the same roof.All these have lead the Indian organized retail
sector to give more in order to satisfy the Indian customer.
The biggest challenge facing the Indian organized retail sector is the lack of
retail space. With real estate prices escalating due to increase in demand from the
Indian organized retail sector, it is posing a challenge to its growth. With Indian
retailers having to shell out more for retail space it is effecting there overall
profitability in retail. Trained manpower shortage is a challenge facing the organized
retail sector in
India. The Indian retailers have difficultly in finding trained person and also
have to pay more in order to retain them. This again brings down the Indian retailers
profit levels.
The Indian government has allowed 51% foreign direct investment (FDI) in
the India retail sector to one brand shops only. This has made the entry of global retail
giants to organized retail sector in India difficult. This is a challenge being faced by
the Indian organized retail sector.
[MHRM 2008-2010] Page 10
2. INCORPORATION AND HISTORY OF THE
ORGANISATION
FUTURE GROUP
Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one
of India’s leading business houses with multiple businesses spanning across the
consumption space.
While retail forms the core business activity of Future Group, group
subsidiaries are present in consumer finance, capital, insurance, leisure and
entertainment, brand development, retail real estate development, retail media and
logistics.
Led by its flagship enterprise, Pantaloon Retail, the group operates over 12
million square feet of retail space in over 63 cities and towns and 65 rural locations
across India.Headquartered in Mumbai (Bombay), Pantaloon Retail employs around
30,000 people and is listed on the Indian stock exchanges. The company follows a
multi-format retail strategy that captures almost the entire consumption basket of
Indian customers. In the lifestyle segment, the group operates Pantaloons, a fashion
retail chain and Central, a chain of seamless malls.
In the value segment, its marquee brand, Big Bazaar is a hypermarket format
that combines the look, touch and feel of Indian bazaars with the choice and
convenience of modern retail.
[MHRM 2008-2010] Page 11
In 2008, Big Bazaar opened its 100th store, marking the fastest ever organic
expansion of a hypermarket. The first set of Big Bazaar stores opened in 2001 in
Kolkata, Hyderabad and Bangalore.
The group’s specialty retail formats include, books and music chain, Depot,
sportswear retailer, Planet Sports, electronics retailer, Ezone, home improvement
chain, Home Town and rural retail chain, Aadhar, among others. It also operates
popular shopping portal, futurebazaar.com. Future Capital Holdings, the group’s
financial arm provides investment advisory to assets worth over $1 billion that are
being invested in consumer brands and companies, real estate, hotels and logistics. It
also operates a consumer finance arm with branches in 150 locations.
Other group companies include, Future Generali, the group’s insurance
venture in partnership with Italy’s Generali Group, Future Brands, a brand
development and IPR company, Future Logistics, providing logistics and distribution
solutions to group companies and business partners and Future Media, a retail media
initiative.
The group’s presence in Leisure & Entertainment segment is led through,
Mumbai-based listed company Galaxy Entertainment Limited. Galaxy leading leisure
chains, Sports Bar and Bowling Co. and family entertainment centres, F123. Through
its partner company, Blue Foods the group operates around 100 restaurants and food
courts through brands like Bombay Blues, Spaghetti Kitchen, Noodle Bar, The
Spoon, Copper Chimney and Gelato.
Future Group’s joint venture partners include, US-based stationery products
retailers, Staples, French women’s wear retailer, Etam, Middle East-based Axiom
Communications and India-based Blue Foods, Liberty Shoes, Talwalkars’ and Asian
Electronics.
The group’s flagship company, Pantaloon Retail was awarded the
International Retailer of the Year 2007, by the US-based National Retail Federation,
[MHRM 2008-2010] Page 12
the largest retail trade association and the Emerging Market Retailer of the Year 2007
at the World Retail Congress in Barcelona.
Future Group believes in developing strong insights on Indian consumers and
building businesses based on Indian ideas, as espoused in the group’s core value of
‘Indianness.’The group’s corporate credo is, ‘Rewrite rules, Retain values.’
The company’s leading formats include Pantaloons, a chain of fashion outlets,
Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain,
blends the look, touch and feel of Indian bazaars with aspects of modern retail like
choice, convenience and quality and Central, a chain of seamless destination malls.
Some of its other formats include, Depot, Shoe Factory, Brand Factory, Blue Sky,
Fashion Station, aLL, Top 10, m Bazaar and Star and Sitara. The company also
operates an online portal, futurebazaar.com.
A subsidiary company, Home Solutions Retail (India) Limited, operates
Home Town, a large-format home solutions store, Collection i, selling home furniture
products and E-Zone focused on catering to the consumer electronics segment.
Pantaloon Retail was recently awarded the International Retailer of the Year
2007 by the US based National Retail Federation (NRF) and the Emerging Market
Retailer of the Year 2007 at the World Retail Congress held in Barcelona.Pantaloon
Retail is the flagship company of Future Group, a business group catering to the
entire Indian consumption space
SIX VERTICALS OF FUTURE GROUP
[MHRM 2008-2010] Page 13
FUTURE RETAIL IS FURTHER DIVIDED INTO:
PANTALOON RETAIL
[MHRM 2008-2010] Page 14
FUTURE GROUP
FUTURE RETAIL
FUTURE MEDIA
FUTURE LOGISTIC
S
FUTURE SPACE
FUTURE BRANDS
FUTURE CAPITAL
FUTURE RETAIL
PANTALOONS RETAIL INDIA
LIMITED
HOME SOLUTIONS
RETAIL INDIA LIMITED
CONVERGE M
MAJOR MILESTONES
1987 - Company incorporated as Menz Wear Private Limited. Launch of Pantaloon
trouser brand, India’s first formal trouser brand
1991 - Launch of BARE, the Indian jeans brand
1992 - Initial public offer (IPO) was made in the month of May
1994 - The Pantaloon Shoppe – exclusive menswear store in franchisee format
launched across the nation. The company starts the distribution of branded garments
through multi-brand retail outlets across the nation
1995 - John Miller – Formal shirt brand launched
1997 – Company enters modern retail with the launch of the first 8000 square store,
Pantaloons in Kolkata
[MHRM 2008-2010] Page 15
2001 – Three Big Bazaar stores launched within a span of 22 days in Kolkata,
Bangalore and Hyderabad
2002 - Food Bazaar, the supermarket chain is launched
2004 - Central - India’s first seamless mall is launched in Bangalore
2005 - Group moves beyond retail, acquires stakes in Galaxy Entertainment, Indus
League Clothing and Planet Retail. Sets up India’s first real estate investment fund
Kshitij to build a chain of shopping malls
2006 - Future Capital Holdings, the company’s financial is formed to manage over
$1.5 billion in real estate, private equity and retail infrastructure funds. Plans forays
into retailing of consumer finance products.
Home Town, a home building and improvement products retail chain is
launched along with consumer durables format, Ezone and furniture chain, Furniture
Bazaar.
Future Group enters into joint venture agreements to launch insurance
products with Italian insurance major, Generali. Forms joint ventures with French
retailer, ETAM Group and US office stationery retailer, Staples
2007 - Future Group crosses $1 billion turnover mark.
Specialized companies in retail media, logistics, IPR and brand development and
retail-led technology services become operational.
Pantaloon Retail wins the International Retailer of the Year at US-based
NationalRetail Federation convention in New York and Emerging Retailer of the
Year award at the World Retail Congress held in Barcelona.
Futurebazaar.com becomes India’s most popular shopping portal
[MHRM 2008-2010] Page 16
2008 - Future Capital Holdings becomes the second group company to make a
successful Initial Public Offering in the Indian capital markets.
Big Bazaar crosses the 100-store mark, marking one of the fastest ever expansion of a
hypermarket format anywhere in the world.
Total operational retail space crosses 10 million square feet mark.
Future Group acquires rural retail chain, Aadhar present in 65 rural locations
3 . MISSION \ VISION STATEMENTS.
GROUP VISION
Future Group shall deliver Everything, Everywhere, Every time for Every Indian Consumer in the most profitable manner.
GROUP MISSIONWe share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space leading to economic development.
FUTURE GROUP MANIFESTOWe, in Future Group, will not wait for the Future to unfold itself but create
future scenarios in the consumer space and facilitate consumption because consumption is development. Thereby, we will effect socio-economic development for our customers, employees, shareholders, associates and partners.Our customers will not just get what they need, but also get them where, how and when they need.
[MHRM 2008-2010] Page 17
We will not just post satisfactory results, “Future” – the word which signifies optimism, growth, achievement, strength, beauty, rewards and perfection. Future encourages us to explore areas yet unexplored, write rules yet unwritten; create new opportunities and new successes. To strive for a glorious future brings to us our strength, our ability to learn, unlearn and re-learn our ability to evolve.
We will write success stories. We will not just operate efficiently in the Indian economy, we will evolve it. We will not just spot trends; we will set trends by marrying our understanding
of the Indian consumer to their needs of tomorrow.It is this understanding that has helped us succeed. And it is this that will help us succeed in the Future. We shall keep relearning. And in this process, do just one thing. Rewrite Rules. Retain Values.
4. CORPORATE OFFICE AND NUMBER OF UNITS
The company is head quarters in Mumbai and has got 850 retail stores. The group
operates over 12 million square feet of retail space in over 63 cities and towns and 65
rural locations across India.
Corporate office address:
Knowledge House Off
Jogeshwari - Vikhroli Link Road
Shyam Nagar
Mumbai
Maharashtra – 400060
[MHRM 2008-2010] Page 18
5. EMPLOYEE STRENGTH OF BIG BAZAAR, KSRTC
Total number of employees (excluding promoters& part timers) - 105
Promoters- 20
Part timers - 20
6. VARIOUS DEPARTMENTS AT BIG BAZAAR
Food bazaar
GM Home- Electronics bazaar, Furniture bazaar
GM fashion- Toys and sports
Star and sitara,
F123
Cashiering
Home delivery
PUC- Plastics, Utensils, Crockery
Depot
Apparels-Men’s, ladies, kids
Footwear
NBD
SUPPORT TEAMS- HR, logistics, Maintenance , CSD
7. SWOT ANALYSIS
[MHRM 2008-2010] Page 19
STRENGTH
High volume
State of the art infrastructure
Variety of stuff under single roof
High Brand – equity
Multi locations nation wide
WEAKNESS
Unavailable at all major cities and towns
Unreachable to each & every customer
Low perception among weak sections of the society.
OPPORTUNITIES
Organized retail
Evolving consumer preference
New revolution of social status
Rural –urban exodus
THREATS
Competitors
New entrants ( such as Cash & Carry)
Govt. policies ( FDI )
Political & legal factors
Operation in risk by increasing the size
[MHRM 2008-2010] Page 20
8. HR POLICIES AND PROCEDURE
The store works in two shifts or staggered timings decided by the store
manager /assistant store manager
Each shift will be 10 hours including one lunch break and tea breaks each for a full
work day
• Normally the store opens at 10 am
• SHIFT TIMINGS weekend : 3 shifts (9:00 a.m, 11:30 a.m, 1:30 p.m)
• Week days: two shifts (9:00 a.m, 1:30 p.m)
• Every employee should get one day off in a week, mutually agreed by the
SM/ASM/DM on any day between Monday & Friday
• It is compulsory to sign in an attendance register / use the swipe card as per
the shop and establishment act
COMPENSATORY OFF
• All employees authorized to work on their weekly off/declared holidays
• Any compensatory off needs to be availed within 90 days from the eligible
date. Encashment of compensatory off is not permissible
LEAVE YEAR
• The year for calculation of leave would be the financial year i.e., 1st July –
30th June.
TYPES OF LEAVES
[MHRM 2008-2010] Page 21
• SL – 7 days
• CL – 7 days
• EL – 30 days
• 7 days during the probation period is allowed
• All trainees Management / Executive) can avail of an advance all-purpose
leave of 15 days during the training period,
• The above will be adjusted against their leave balance.
ALL PURPOSE LEAVE (APL)
• Leave accumulation will be permissible up to a period of 90 days.
• Only 15 days of leave can be carried forward to the next year.
• Encashment of leave is not permissible during the tenure of service.
• Leave can be encashed only at the time of severance / separation from the
company.
• Leave will be encashed at the time of last drawn monthly gross salary.
MATERNITY LEAVE
• Only applicable to Female Employees for pregnancy, delivery, post delivery,
and others as provided by Law.
• A maximum of 84 days leave will be granted. 42 days prior expected date of
delivery and 42 days after
Eligibility: Minimum 160 days of service with the organization
[MHRM 2008-2010] Page 22
• The concerned employee should have been in employment for a minimum
period of 160 days.
• In case of miscarriage or abortion, Maternity Leave will be admissible up to
six weeks immediately following the day of her miscarriage or abortion.
• Maternity leave is only applicable for first two children in the family
PROCESS OF AVAILING LEAVE
• All applications for leave must be made in advance through the printed form
of Leave Application.
The application form has to be approved by the employee’s HOD /
Immediate Manager and passed to HR.
It is an employee’s responsibility to ensure that the duly approved leave is
received by the HR including details on type of leave and reason for leave.
COMPENSATION
• Bonus
• Salary disbursement
• Deductions
• Provident Fund (P.F.) :
• Employees State Insurance Corporation (E.S.I.C.).
• Professional Tax (PT)
• Income tax (IT)
BENEFITS
• Locker Facility
[MHRM 2008-2010] Page 23
• Uniforms
• Gift Vouchers
• Loans
• Salary advance
• Special Privilege scheme
• Late sitting Allowance
• Celebration
• Pantaloon Shishya
• Pantaloon Foundation
[MHRM 2008-2010] Page 24
SECTION II
PROBLEM CENTERED STUDY OF THE ORGANISATION
LITERATURE REVIEW
INTRODUCTION
Organisation Commitment
Organizational commitment in recent years has become an important concept
in organizational research and in the understanding of employees' behaviour in the
workplace. It reflects the extent to which employees identify with an organization and
are committed to its goals. A meta-analysis of 68 studies and 35,282 individuals
revealed a strong relationship between organizational commitment and job
[MHRM 2008-2010] Page 25
satisfaction (Tett and Meyer, 1993). However, another study showed that only 38 per
cent of employees feel any long-term commitment to their organization (Today,
1995). Yet greater organizational commitment can aid higher productivity (Mathieu
and Zajac, 1990)
Since the 1960s employee commitment continues to be one of the most
exciting issues for both managers and researchers. The term commitment enjoys an
increasing vogue in sociological discussion. It is used in analyses of both individual
and organizational behaviour. It is used in a descriptive concept to mark out forms of
action characteristic of particular kinds of behaviour of individuals and groups
(Becker,1960). Organizational commitment in the fields of Organizational Behaviour
and Industrial/Organizational Psychology is, in a general sense, the employee's
psychological attachment to the organization. It can be 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.
Because the term has been used to express a varied assortment of ideas, it is
fruitless to speculate on its real meaning. The sociologists argue that commitment and
the authority that organizations have over members is rooted in the nature of
employee involvement in the organization. In this case involvement can take one of
the three forms ie, moral involvement, calculative involvement or alienative
involvement. Organizational researchers and social psychologists view commitment
quite differently. Organizational researchers study attitudinal commitment, focusing
on how employees identify with the goals and values of the organization. This is
commitment viewed primarily from the standpoint of the organization. Social
psychologists study behavioral commitment, focusing on how a person's behaviour
[MHRM 2008-2010] Page 26
serves to bind him to the organization. Once behaviour shows commitment, people
must adjust their attitudes accordingly, which then influence their subsequent
behaviour. Thus a cycle begins: behaviour shapes attitudes and the shaped attitudes in
turn shape behaviour. The major driving force behind this continuous recognition of
commitment in the management literature over more than three decades is that it is
often seen as the key to ‘business success’ (Benkhoff, 1997). More recently, some
researchers (e.g. Baruch, 1998), have started doubting the viability and suitability of
organizational commitment (OC) to today’s fast changing environment in the West.
On the contrary, other researchers argue that one of the key year 2000 issues is
organizational commitment. The recent perspective of multidimensional
organizational commitment is taking over from the one-dimensional approach that
has dominated management research for more than three decades. Studies involving a
variety of professions, including research scientists and engineers (Steers, 1977),
employees in nursing departments (Curry et al., 1986), clergy (Baack et al., 1993),
and police officers (Dunham et al., 1994), have shown that a range of variables are
related to organizational commitment. These variables include organizational
characteristics, job characteristics, and demographic characteristics.
One commonly used definition of organizational commitment was developed
by Porter et al. (1974). Organizational commitment is defined as the relative strength
of an individual’s identification with and involvement in a particular organization.
Mowday, Porter, and Steers(1982), affective organizational commitment can be
characterized by three related factors (1)a strong belief in and acceptance of the
organization’s goals and values; (2)a willingness to exert considerable effort on
behalf of the organization and (3)a strong desire to maintain membership in the
organization.
Murray, Gregoire, & Downey, 1991: The counterpart to affective
organizational commitment is continuance organizational commitment, which
[MHRM 2008-2010] Page 27
considers the idea that individuals do not leave a company for fear of losing their
benefits, taking a pay cut, and not being able to find another job.
Hunt, Chonko and Wood,1985: organizational commitment was defined as a
strong desire to remain a member of a particular organization, given opportunities to
change jobs.
O'Reilly and Chatman,1986: attempted to clarify the construct of
organizational commitment, focusing on the bases of the employee's psychological
attachment to the organization. They distinguished three bases of commitment--
compliance, identification and internalization--and suggested that these three bases of
commitment `may represent separate dimensions of commitment.
Maume,2006: Organizational Commitment is typically measured by items
tapping respondents’ willingness to work hard to improve their companies, the fit
between the firm’s and the worker’s values, reluctance to leave, and loyalty toward or
pride taken in working for their employers.
Organizational commitment, as an attitude, has been defined as the relative
strength of an individual’s identification with, and involvement in, a particular
organization (Mowday et al., 1979; Allan and Meyer, 1990). This definition,
reflecting an individual’s affective commitment, represents a major approach to
the study of organizational commitment (Meyer et al., 2002), and appears to be the
most desired form of commitment. Employees with strong organizational
commitment continue employment with the organization because they want to do so
(Ghani et al., 2004). In order to achieve organizational commitment, employers need
to help their employees’ value involvement in the organization. The more the
employees’ value being part of the organization, the more likely they are to stay with
[MHRM 2008-2010] Page 28
the organization. Early research considered organizational commitment to be a
construct with a single dimension; however, it is now widely accepted as being multi-
dimensional (Meyer & Allen, 1997). In other words, more than one form of
attachment exists to describe the nature of this psychological tie or mind-set.Many
factors influence employee commitment. These include commitment to the manager,
occupation, profession, or career (Meyer & Allen, 1997). Organizational
commitment focuses on employees’ commitment to the organization.
In 1984, Meyer and Allen proposed a bi-dimensional conceptualization of
organizational commitment that drew on these early works, labelling the former view
as affective and the latter as continuance commitment. In 1990, they added a third
component, namely, normative commitment (Allen and Meyer, 1990). Originally
introduced by Weiner and Vardi (1980), normative commitment refers to feelings of
obligation to stay with an organization because of the belief that it is the right thing to
do. Meyer and Allen (1991) argued that common to these approaches is the view that
commitment is a psychological state that (a)characterizes the employee’s relationship
with the organization and (b) has implications for the decision to continue or
discontinue membership in the organization. Meyer and Allen (1991) further argued
that affective, continuance and normative commitment are components, rather than
types, of commitment as an employee’s relationship with an organization might
reflect varying degrees of all three. Beyond this, however, the nature of these
psychological states differs and the three components of commitment are argued to
develop from different antecedents and to have different implications for job-related
outcomes other than turnover (for a review, see Allen and Meyer, 1996; Meyer and
Allen, 1997).
Affective commitment develops mainly from positive work experiences, such
as job satisfaction and organizational fairness, and is associated with desirable
outcomes, such as higher levels of organizational citizenship behaviours and lower
levels of withdrawal behaviours like absenteeism and tardiness. Continuance
[MHRM 2008-2010] Page 29
commitment, on the other hand, has been shown to have two primary antecedents:
lack of job alternatives and ‘side-bets’, that is, anything that increases the cost of
quitting, such as investments in the organization in terms of time, money and effort.
Continuance commitment as such represents a need to stay with the organization and
is not related to positive organizational or individual outcomes. Finally, normative
commitment is argued to develop from organizational commitment norms that
develop pre-entry (through familial and cultural socialization) or post-entry (through
organizational socialization) and appears to be predictive of positive outcomes, not as
strongly as affective commitment (Wasti, 2002).
Theoretical Background
Interest in organizational commitment has led to the development of
several instruments to measure the construct. Morrow (1983) noted that there were
some 25 concepts and measures related to commitment, and Sutton and Harrison
(1993) called for a moratorium on developing additional measures until existing ones
could be further analyzed and tested. One of the major models of organizational
commitment is that Developed by Meyer and Allen (1991), which conceptualizes
organizational commitment in terms of three distinct dimensions: affective,
continuance, and normative.
Affective commitment
For several authors, the term commitment is used to describe an affective
orientation toward the organization. Kanter (1968), for example, defined what she
called "cohesion commitment" as the attachment of an individual's fund of affectivity
and emotion to the group. Likewise, Buchanan (1974) described commitment as a
partisan, affective attachment to the goals and values, and to the organization for its
own sake, apart from its purely instrumental worth. Porter and his associates
(Mowday, Steers and Porter, 1979; Porter, Crampon and Smith, 1976; Porter, Steers,
[MHRM 2008-2010] Page 30
Mowday and Boulian, 1974) described commitment as the relative strength of an
individual's identification with and involvement in a particular organization. It is a
"partisan affective attachment to the goals and values of an organization apart from its
instrumental worth" (Popper and Lipshitz, 1992). Employees who are affectively
committed to an organization remain with it because they want to do so (Meyer,
Allen and Gellatly, 1990).
Continuance Commitment
For Stebbins (1970), continuance commitment was the awareness of the
impossibility of choosing a different social identity because of the immense penalties
involved in making the switch. Still others have used the term "calculative" to
describe commitment based on a consideration of the costs and benefits associated
with organizational membership that is unrelated to affect (Etzioni, 1975; Hrebiniak
and Alutto, 1972; Stevens, Beyer and Trice, 1978). Finally, Farrell and Rusbult
(1981) suggested that commitment is related to the probability that an employee will
leave his job and involves feelings of psychological attachment which is independent
of affect. Meyer and Allen (1991) suggested that recognition of the costs ssociated
with leaving the organization is a conscious psychological state that is shaped by
environmental conditions (e.g. the existence of side bets) and has implications for
behaviour (e.g. continued employment with the organization). Employees wise
primary link to the organization is based on continuance commitment remain because
they need to do so (Meyer and Allen,1991).
Normative Commitment
Finally, a less common, but equally viable, approach has been to view
commitment as an obligation to remain with the organization. Marsh and Mannari
(1977), for example, described the employee with "lifetime commitment" as one who
considers it morally right to stay in the company, regardless of how much status
enhancement or satisfaction the firm gives over the years. In a similar vein, Wiener
(1982) defined commitment as the totality of internalized normative pressures to act
[MHRM 2008-2010] Page 31
in a way which meets organizational goals and interests and suggested that
individuals exhibit these behaviours solely because they believe it is the right and
moral thing to do. Normative commitment is characterized by feelings of loyalty to a
particular organization resulting from the internalization of normative pressures on
the individual (Popper and Lipshitz,1992). Employees with a high level of normative
commitment feel they ought to remain with the organization (Meyer and Allen,
1991).
In arguing for their framework, Meyer & Allen (1991) contended that affective, continuance, and normative commitment were components rather than types because employees could have varying degrees of all three. “For example, one employee might feel both a strong attachment to an organization and a sense of obligation to remain. A second employee might enjoy working for the organization but also recognize that leaving would be very difficult from an economic standpoint. Finally, a third employee might experience a considerable degree of desire, need, and obligation to remain with the current employer” (Meyer & Allen, 1997, p. 13) Even though the authors present this argument, they do not imply that there is a rationale for summing all the scales to obtain an overall score for organizational commitment. Consequently, for this research, the different scales will be referred to as types rather than components
[MHRM 2008-2010] Page 32
CHAPTER 1
PROBLEM FORMULATION
i) TITLE OF THE STUDY :
To study the level of organisational commitment among Big Bazaar
employees
ii) BACKGROUND OF THE STUDY
Organizational commitment in recent years has become an important concept
in organizational research and in the understanding of employees' behaviour in the
workplace. It reflects the extent to which employees identify with an organization
and are committed to its goals. A meta-analysis of 68 studies and 35,282 individuals
[MHRM 2008-2010] Page 33
revealed a strong relationship between organizational commitment and job
satisfaction (Tett and Meyer, 1993). However, another study showed that only 38 per
cent of employees feel any long-term commitment to their organization (Today,
1995). Yet greater organizational commitment can aid higher productivity (Mathieu
and Zajac, 1990).
Interest in organizational commitment has led to the development of several
instruments to measure the construct. Morrow (1983) noted that there were some 25
concepts and measures related to commitment, and Sutton and Harrison (1993)
called for a moratorium on developing additional measures until existing ones could
be further analyzed and tested. One of the major models of organizational
commitment is that Developed by Meyer and Allen (1991), which conceptualizes
organizational commitment in terms of three distinct dimensions: affective,
continuance, and normative.
iii) STATEMENT OF THE PROBLEM
Employees are one of the most important determinants and leading factors
that determine the success of an organization in a competitive environment. This is
especially true for service organizations that rely heavily on their good behavioural
employees to provide friendly and courteous services to their customers in this
competitive environment. For keeping their customers happy and satisfied, the
organization should have highly committed employees. With the increasing levels of
development, the working environment has also become more competitive. In order
to survive in this competitive environment, an organization should have highly
committed employees.
IV) RELEVANCE OF THE STUDY
The research helps the organization in understanding the importance of
organizational commitment of the employees in achieving its goals. Organizational
[MHRM 2008-2010] Page 34
Commitment is highly valuable. This is because a highly committed employee will
identify with the goals and values of the organization, has a stronger desire to belong
to the organization and is willing to display greater organizational citizenship
behaviour. Highly committed employees wish to remain associated with the
organisation and advance organisational goals, and are therefore less likely to leave.
A committed employee will be more eager about his job and more motivated to
dedicate a lot of time and effort to accomplish the tasks required.
[MHRM 2008-2010] Page 35
CHAPTER II
RESEARCH PROCESS
Objective of the Study
To study the level of Organizational Commitment among big Bazaar employees,KSRTC
Specific Objective of the Study
1) To measure organizational commitment.
2) To study the relationship between the personal factors of the employee (Age, Experience, Gender etc.)
Research Design
[MHRM 2008-2010] Page 36
Type of research: Descriptive Research
Data Collection:
Primary data- Questionnaire
Secondary data- daily interaction,websites, reference books
Sampling:
Sampling Design- convenient sampling
Population- Employees of Big Bazaar,KSRTC
Sample Unit- shop floor employees & Managers
Sample size- 100 employees
Tools for data collection:
Organizational commitment: Organizational Commitment Questionnaire developed by Meyer, Allen, and Smith (1993) is used to assess organizational commitment.
Tools for Data Analysis: Percentage Method
Limitations of the study
o Errors due to the bias of respondents cannot be ruled out in this study.
o Reluctance of the employees to disclose the facts.
o Reluctance of employees to co-operate.
o The validity of the study depends upon the information gathered through
primary data collection techniques.
o Human nature is very dynamic and thus the level of organizational
commitment may vary from time to time.
[MHRM 2008-2010] Page 37
o Findings of the study cannot be generalized as it is specific to Big Bazaar
KSRTC
CHAPTER III[MHRM 2008-2010] Page 38
PRESENTATION AND
ANALYSIS OF DATA
The data analysis is done by considering the different dimensions of commitment coined by Allen and Mayer. They are
Affective Normative & continuous
The population includes
1. Band 1 employee (team member & team leader)
2. Band 2 employees (DM, ADM &SM)
3. Support function (HR, Maintenance and CSD)
[MHRM 2008-2010] Page 39
(Includes both males and females)
Sample Size
CATEGORY NUMBER OF RESPONDENTS
Band 1 75
Band 2 15
Support function 10
TOTAL 100
AFFECTIVE COMMITMENT:
Q1. I would be happy to spend the rest of my career with this organisation
FACTOR NUMBER OF RESPONDENTS
PERCENTAGE (%)
Strongly Disagree 50 50%
Disagree 0 0
Agree 15 15%
Strongly Agree 35 35%
[MHRM 2008-2010] Page 40
ANALYSIS
86% of the employees strongly agree with the statement,7% agrees with the statement
only 7% strongly disagree with the statement
Q2: I enjoy discussing my organisation with people outside it
FACTOR NUMBER OF RESPONDENTS
PERCENTAGE (%)
Strongly Disagree 15 15%
Disagree 0 0
Agree 35 35%
Strongly Agree 50 50%
[MHRM 2008-2010] Page 41
ANALYSIS
50% of the population strongly agrees with the statement & only 15% strongly
disagree with the given statement
Q3. I feel as if this organisation’s problems are my own
FACTOR NUMBER OF RESPONDENTS
PERCENTAGE (%)
Strongly Disagree 25 25%
Disagree 33 33%
Agree 30 30%
Strongly Agree 10 10%
[MHRM 2008-2010] Page 42
ANALYSIS
25% of the respondents strongly disagreed with the statement & 33% disagreed with
it .while 10% strongly agreed with the given statement.
Q4: I do not think I could become as attached to another organisation as I am to
this one
FACTOR NUMBER OF RESPONDENTS
PERCENTAGE (%)
Strongly Disagree 10 10%
Disagree 5 5%
Agree 20 20%
Strongly Agree 65 65%
[MHRM 2008-2010] Page 43
ANALYSIS
65% of the employees have strongly agreed with the statement while only 10 % of the
employee strongly disagreed with the statement.
Q5. I feel as a” part of the family” at my organisation
FACTOR NUMBER OF RESPONDENTS
PERCENTAGE (%)
Strongly Disagree 10 10%
Disagree 0 0%
Agree 5 5%
Strongly Agree 85 85%
[MHRM 2008-2010] Page 44
ANALYSIS
85% of the population strongly agreed with the statement and only 10% of the
population disagreed with the given statement.
Q6: I feel emotionally attached to this organisation
FACTOR NUMBER OF RESPONDENTS
PERCENTAGE (%)
Strongly Disagree 40 40%
Disagree 5 5%
Agree 20 20%
Strongly Agree 35 35%
[MHRM 2008-2010] Page 45
ANALYSIS
35% of the population is emotionally attached to the organisation while 40% have
strongly disagreed with it.
Q7: This organisation has a personal meaning for me
FACTOR NUMBER OF RESPONDENTS
PERCENTAGE (%)
Strongly Disagree 10 10%
Disagree 4 4%
Agree 20 20%
Strongly Agree 60 60%
[MHRM 2008-2010] Page 46
ANALYSIS
60% of the respondents strongly agrees that they have a personal meaning to this
organisation but only 10% strongly disagrees that they don’t have a personel meaning
to this organisation.
Q8: I feel a strong sense of belonging to my organisation
FACTOR NUMBER OF RESPONDENTS
PERCENTAGE (%)
Strongly Disagree 10 10%
Disagree 5 5%
Agree 10 10%
Strongly Agree 75 75%
[MHRM 2008-2010] Page 47
ANALYSIS
75% of the population feels a strong sense of belongingness and only 10% disagree
with the statement.
CONTINUANCE COMMITMENT
Q9: It would be hard for me to leave my organisation right now, even if I
want to
FACTOR NUMBER OF RESPONDENTS
PERCENTAGE (%)
Strongly Disagree 35 35%
Disagree 15 15%
[MHRM 2008-2010] Page 48
Agree 20 20%
Strongly Agree 25 25%
ANALYSIS
37% of the employees strongly disagree with the statement and only 26% agrees with
the given statement
Q10: My life would be disrupted if I decided I want to leave my organisation now
FACTOR NUMBER OF RESPONDENTS
PERCENTAGE (%)
Strongly Disagree 20 20%
Disagree 5 5%
Agree 20 20%
Strongly Agree 55 55%
[MHRM 2008-2010] Page 49
ANALYSIS
55% of the population strongly agreed with the mentioned statement, 20% strongly
disagreed with it
Q11: I am afraid of what might happen if I quit my job without having another one line up
FACTOR NUMBER OF RESPONDENTS
PERCENTAGE (%)
Strongly Disagree 10 10%
[MHRM 2008-2010] Page 50
Disagree 5 5%
Agree 20 20%
Strongly Agree 65 65%
ANALYSIS
65% strongly agreed with the statement and Only 10% disagreed with it
Q12: It would be costly for me to leave my organisation right now
FACTOR NUMBER OF RESPONDENTS
PERCENTAGE (%)
[MHRM 2008-2010] Page 51
Strongly Disagree 14 14%
Disagree 12 12%
Agree 24 24%
Strongly Agree 60 60%
ANALYSIS
54% of the employees strongly agrees with the statement and only 13% strongly
disagrees with it.
Q 13: Right now staying with my organisation is a matter of necessity than desire
FACTOR NUMBER OF RESPONDENTS
PERCENTAGE (%)
Strongly Disagree 10 10%
[MHRM 2008-2010] Page 52
Disagree 2 2%
Agree 18 18%
Strongly Agree 70 70%
ANALYSIS
Majority of the population accepted that it is a matter of necessity than desire and
only 10% disagreed with it
Q14: I feel I have little option to consider leaving this organisation
FACTOR NUMBER OF RESPONDENTS
PERCENTAGE (%)
Strongly Disagree 50 50%
[MHRM 2008-2010] Page 53
Disagree 25 25%
Agree 5 5%
Strongly Agree 20 20%
ANALYSIS
50% of them strongly disagreed with the statement,20% of them strongly agreed with
it
Q15: One of the serious consequences of leaving this organisation would be scarcity of available alternatives
FACTOR NUMBER OF RESPONDENTS
PERCENTAGE (%)
[MHRM 2008-2010] Page 54
Strongly Disagree 70 70%
Disagree 12 12%
Agree 18 18%
Strongly Agree 0 0%
ANALYSIS
70 % of the population strongly disagreed with the fact
Q16: One of the major reasons I continue to work for this organisation is that leaving would require personnel sacrifice; another organisation may not match the overall benefits I have here
FACTOR NUMBER OF PERCENTAGE
[MHRM 2008-2010] Page 55
RESPONDENTS (%)
Strongly Disagree 34 34%
Disagree 5 5%
Agree 17 17%
Strongly Agree 44 44%
ANALYSIS:
44% strongly agrees with the statement and 34% strongly disagrees
NORMATIVE COMMITMENT:
Q17: I think people these days move from organisation to organisation too often
[MHRM 2008-2010] Page 56
FACTOR NUMBER OF RESPONDENTS
PERCENTAGE (%)
Strongly Disagree 10 10%
Disagree 2 2%
Agree 28 28%
Strongly Agree 60 60%
ANALYSIS:
Majority of the population strongly agreed with the statement
Q18: I believe that a person must always be loyal to his/her organisation
[MHRM 2008-2010] Page 57
FACTOR NUMBER OF RESPONDENTS
PERCENTAGE (%)
Strongly Disagree 53 53%
Disagree 4 4%
Agree 0 0%
Strongly Agree 43 43%
ANALYSIS:
53% strongly disagree with the specified statement
Q19: Jumping from organisation to organisation seems to be unethical to me
[MHRM 2008-2010] Page 58
FACTOR NUMBER OF RESPONDENTS
PERCENTAGE (%)
Strongly Disagree 10 10%
Disagree 5 5%
Agree 20 20%
Strongly Agree 65 65%
ANALYSIS:
65% strongly agree with the statement, 10% strongly disagreed with it
[MHRM 2008-2010] Page 59
Q20: I believe that loyalty is important and therefore I feel strong sense of moral
obligation to remain
FACTOR NUMBER OF RESPONDENTS
PERCENTAGE (%)
Strongly Disagree 20 20%
Disagree 5 5%
Agree 30 30%
Strongly Agree 45 45%
ANALYSIS:
45% strongly agreed with the statement and only 20% sttrongly disagreed with it
[MHRM 2008-2010] Page 60
Q21: If I got another offer for a better job elsewhere, I would not feel it was right to leave my organisation
FACTOR NUMBER OF RESPONDENTS
PERCENTAGE (%)
Strongly Disagree 38 38%
Disagree 21 21%
Agree 20 20%
Strongly Agree 21 21%
ANALYSIS:
38% of the population strongly disagreed with the statement
[MHRM 2008-2010] Page 61
Q22: I was taught to believe in the value of remaining loyal to the organisation
FACTOR NUMBER OF RESPONDENTS
PERCENTAGE (%)
Strongly Disagree 30 30%
Disagree 15 15%
Agree 25 25%
Strongly Agree 30 30%
ANALYSIS:
30% of the population strongly agreed with the statement, while 30% strongly
disagreed
[MHRM 2008-2010] Page 62
Q23: Things were better in the days when people stayed in one organisation for
most of their careers
FACTOR NUMBER OF RESPONDENTS
PERCENTAGE (%)
Strongly Disagree 52 52%
Disagree 2 2%
Agree 36 36%
Strongly Agree 10 10%
ANALYSIS:
52% of the population strongly disagree with the above statement , 36% of trhe
population agrees with it
[MHRM 2008-2010] Page 63
Q24. I think wanting to be a company man or company woman is sensible
FACTOR NUMBER OF RESPONDENTS
PERCENTAGE (%)
Strongly Disagree 10 10%
Disagree 5 5%
Agree 20 20%
Strongly Agree 65 65%
ANALYSIS:
65%strongly agreed with the statement ,10% disagreed with it
[MHRM 2008-2010] Page 64
ANALYSIS OF DEMOGRAPHIC DETAILSTABLE 1
Table showing the age of the respondents
Age Number of Respondents
Percentage (%)
21-30 68 68%
31-40 32 32%
CHART 1
Chart showing the age of the respondents
Inference:
68% of the respondents were in the age group of 21-30, 32% of them were of the agegroup 31-40
[MHRM 2008-2010] Page 65
TABLE 2
Table showing the experience of the respondents
Experience Number of Respondents
Percentage (%)
Below 1yr 23 23%
1-2yrs 57 57%
Above 3yrs 20 20%
Chart showing the experience of the respondents
Inference:
57% of the employees have 1-2years experience and 23% of them have more than 3 years experience. Only 20% of them have less than 1 year of experience
[MHRM 2008-2010] Page 66
CHAPTER IV
FINDINGS AND SUGGESTIONS
[MHRM 2008-2010] Page 67
FINDINGS
There is a low level of affective commitment among the shop floor employees
There is low level of normative commitment among the total population
Employees with more than 3years of experience shows high level of effective
commitment
The continuance commitment is seen highly among the employees of
experience between 2-3 years
It has been found out that there are two factors that majorly influence
continuance commitment they are the cost of leaving and the availability of
alternative
[MHRM 2008-2010] Page 68
SUGGESTION
The awareness of performance based promotion should be created
Salary mismatch between the experienced and the new member should be
avoided
Fun at work culture helps to increase the commitment level among
employees
Information sharing and employee participation in decision making helps
to increase the commitment level
Providing nonfinancial benefit can also help in increasing the commitment
level
Providing the necessary freedom in their work can help to increase the
commitment towards work and organisation
.
[MHRM 2008-2010] Page 69
CHAPTER V
CONCLUSIONS
[MHRM 2008-2010] Page 70
CONCLUSIONS
The study is conducted to analyse the level of the employees commitment in
Big Bazaar,KSRTC Bangalore. It has been found out that the Band 2 employees that
is the officers shows a high level of affective commitment while compared with the
Band1 employees. It also been found out that there is a high level of continuance
commitment among the Band 2 employees and it is found out that generally there is
low level of normative commitment among the population.
Employees with strong organizational commitment continue employment with
the organization because they want to do so. In order to achieve organizational
commitment, employers need to help their employees’ value involvement in the
organization. The more the employees’ value being part of the organization, the more
likely they are to stay with the organization.
Organizational Commitment is highly valuable. This is because a highly
committed employee will identify with the goals and values of the organization, has a
stronger desire to belong to the organization and is willing to display greater
organizational citizenship behaviour. Highly committed employees wish to remain
associated with the organisation and advance organisational goals, and are therefore
less likely to leave. A committed employee will be more eager about his job and more
motivated to dedicate a lot of time and effort to accomplish the tasks required.
With the increasing levels of development, the working environment has also
become more competitive. In order to survive in this competitive environment, an
organization should have highly committed employees.
[MHRM 2008-2010] Page 71
BIBLIOGRAPHY
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, 1-18.
2) Iles, P., Mabey, C., & Robertson, I. (1990). HRM practices and employee commitment: possibilities, pitfalls and paradoxes. British Journal of Management, 1, 147-157.
3) Jaros, S. T., Jermier, J. M., Koehler, J. W., & Sincich, T. (1993). Effects of continuance, affective, and moral commitment on the withdrawal process: An evaluation of eight structural equation models.
4) Kalliath, T. J., O’Driscoll, M. P., & Gillespie, D. F. (1998). The relationship between burnout and organizational commitment in two samples of health professionals. Work & Stress 12(2), 179-185.
5) Meyer, J. P., & Herscovitch, L. (2001). Commitment in the workplace: Toward a general model. Human Resource
6) Meyer, J. P., & Smith, C. A. (2000). HRM practices and organizational commitment: Test of a mediation model. Canadian Journal of Administrative Sciences, 17(4), 319-331.
7) Meyer, J. P., Stanley, D. J., Herscovitch, L., & Topolnytsky, L. (2002). Affective, continuance, and normative commitment in the organization: a meta-analysis of antecedents, correlates, and consequences. Journal of Vocational Behavior, 61, 20-52.
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8) Mowday, R. T., Steers, R. M. & Porter, L. W. (1979), “The measurement of organizational commitment”, Journal of Vocational Behavior, Vol. 14, pp. 224-247.
9) Mowday, R. T., Steers, R. M. & Porter, L. W. (1982), Employee-organization linkages: The psychology of commitment, absenteeism, and turnover, Academic Press, New York.
10) Nyhan, R. C. (1999). Increasing affective organizational commitment in public organizations: The key role of interpersonal trust. Review of Public Personnel Administration, 19, 58-70.
11) Bowen, D.E., Ledford, G.E., & Nathan, B.R (1991). Hiring for the organization, not the job. Academy of Management Executive, 4, 35-51.
12) Robert D. Bretz Jr. and Timothy A. Judge (1992). The Relationship Between Person-Organization Fit and Career Success, p.2-15
13) Meyer, J.P. and Allen, N.J(1991).A three component conceptualization of organizational commitment. Human Resource Management Review, 1, 61-89
WEBSITES
www.futuregroup.in
www.wikipedia.org
www.pantaloon.com
http://business. mapsofindia.com/Indian retail-industry/
[MHRM 2008-2010] Page 73
ANNEXURE
[MHRM 2008-2010] Page 74
QUESTIONNAIR
NAME: AGE:
SEX: MARITAL STATUS:
QUALIFICATION: DEPARTMENT:
DESIGNATION: EXPIRIENCE:
Please indicate your level of agreement with the following statements. Mark a number for each statement.
4-strongly agree, 3- agree, 2- disagree, 1-strongly disagree
Sl.no statements4 3 2 1
1 I would be happy to spend the rest of my career with this organisation
2 I enjoy discussing my organisation with people outside it
3 I feel as if this organisation’s problems are my own
4 I do not think I could become as attached to another organisation as I am to this one
5 I feel as a” part of the family” at my organisation
6 I feel emotionally attached to this organisation
7 This organisation has a personal meaning for me
8 I feel a strong sense of belonging to my organisation
9 It would be hard for me to leave my organisation right now, even if I want to
[MHRM 2008-2010] Page 75
10 My life would be disrupted if I decided I want to leave my organisation now
11 I am afraid of what might happen if I quit my job without having another one line up
12 It would be costly for me to leave my organisation right now
13 Right now staying with my organisation is a matter of necessity than desire
14 I feel I have few option to consider leaving this organisation
15 One of the serious consequence of leaving this organisation would be scarcity of available alternatives
16 One of the major reason I continue to work for this organisation is that leaving would require personnel sacrifice, another organisation may not match the overall benefits I have here
17 I think people these days move from organisation to organisation too often
18 I believe that a person must always be loyal to his/her organisation
19 Jumping from organisation to organisation seems to be unethical to me
20 I believe that loyalty is important and therefore I feel strong sense of moral obligation to remain
21 If I got another offer for a better job elsewhere, I would not feel it was right to leave my organisation
22 I was taught to believe in the value of remaining loyal to the organisation
23 Things were better in the days when people stayed in one organisation for most of their careers
24 I think wanting to be a company man or company woman is
[MHRM 2008-2010] Page 76
sensible
[MHRM 2008-2010] Page 77
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