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Chapter III 47 CHAPTER III CONCEPTUAL FRAMEWORK OF QUALITY OF WORK LIFE, ORGANIZATIONAL COMMITMENT EMPOWERMENT AND INDUSTRIAL PROFILE. This chapter details the basic concepts of Quality of work life, organizational commitment and employee empowerment. It also discusses aboutwomen executives and their Quality of work life, organizational commitment and empowerment in work place that underpin the conceptual framework for this thesis. Over view of Quality of Work Life, Organizational Commitment and Employee Empowerment: A conceptual framework is a set of ideas, used to structure any planned research work. It is a guide to the researcher in framing the research questions, reviewing the related literature and analysing the data. Such a framework should be intended as the starting point of any research work. It also helps the researcher to make a logical sense of the factors and variables that have been deemed relevant to the research study. In this chapter various concepts and models of organizational factors of QWL are stated.Individuals selectively perceive and make attributions about their jobs in accordance with the expectations they bring to the workplace. Therefore an individual’s Quality of Work Life is influenced by his or her work expectations and experience at work. When the employees perceive that the work life in the Individuals selectively perceives and makes attributions about their jobs in accordance with the expectations they bring to the workplace. Therefore an individual’s Quality of Work Life is influenced by his or her work expectations and experience at work.

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Chapter III

47

CHAPTER III

CONCEPTUAL FRAMEWORK OF QUALITY OF WORK

LIFE, ORGANIZATIONAL COMMITMENT

EMPOWERMENT AND INDUSTRIAL PROFILE.

This chapter details the basic concepts of Quality of work life, organizational

commitment and employee empowerment. It also discusses aboutwomen executives

and their Quality of work life, organizational commitment and empowerment in work

place that underpin the conceptual framework for this thesis.

Over view of Quality of Work Life, Organizational Commitment and Employee

Empowerment:

A conceptual framework is a set of ideas, used to structure any planned research work.

It is a guide to the researcher in framing the research questions, reviewing the related

literature and analysing the data. Such a framework should be intended as the starting

point of any research work. It also helps the researcher to make a logical sense of the

factors and variables that have been deemed relevant to the research study. In this

chapter various concepts and models of organizational factors of QWL are

stated.Individuals selectively perceive and make attributions about their jobs in

accordance with the expectations they bring to the workplace.

Therefore an individual’s Quality of Work Life is influenced by his or her work

expectations and experience at work. When the employees perceive that the work life

in the Individuals selectively perceives and makes attributions about their jobs in

accordance with the expectations they bring to the workplace. Therefore an

individual’s Quality of Work Life is influenced by his or her work expectations and

experience at work.

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Individuals selectively perceive and make attributions about their jobs in accordance

with the expectations they bring to the workplace. Therefore an individual’s Quality

of Work Life is influenced by his or her work expectations and experience at work.

When the employees perceive that the work life in the

Organization is up to their expectations it is said that, QWL is provided by the

employer. (Hodson 1985, Chatman 1989)1.

"Workers are more likely than planners to know what dissatisfies them, what causes

these dissatisfactions, and what to do about them"(William Grimes 1994)2.

“Dissatisfaction with work life is a problem which affects almost all workers at

one time or another, regardless of position or status. The frustration, boredom, and

anger common to employees disenchanted with their work life, can be costly to both

the individual and the organization. Many organizational experiments carried out seek

to improve both productivity for the organization and the quality of working life for its

members” (Walton 1973)3.

The organizations have realized that the employees are said to be satisfied

when due attention is paid to a high Quality Work Environment (Mumford 2006)4.

The resourcefulness of the employees in an organization depends largely on the

environment at the workplace (Geers, Weiland, Kosbab, Landry &Helfer 2005)5.

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Often employees start jobs with expectations based on their life experiences, career

aspirations, and personal characteristics (Woods 1993)6.

Variation between relevant work expectations and the actual experience at

work is said to be an important factor influencing employee turnover. (Pearson, C. A.

L. 1995)7It is confirmed that satisfied employees are more likely to be highly

motivated, have a good morale at work, and given the opportunity can work more

effectively and efficiently(Eskildsen&Dahlgaard 2000)8. Employers are challenged to

provide benefits and services to their employees, so as to better satisfy them in the

quest to provide an effective and efficient service to its customers (Gronroos 1990)9.

QWL not only contributes to a company's ability to recruit quality people, but also it

enhances a company's competitiveness. Common beliefs support the contention that

QWL will positively nurture a more flexible, loyal, and motivated workforce, which

are essential in determining the company’s competitiveness.

The concept of quality of work life goes beyond the legislative acts of

protecting the worker, and attends to the necessities and aspirations of the human

beings focused on the idea of humanizing the work and in the social responsibility of

the company. The reconciliation of the interests of the individuals and the

organizations is something that seems common to all authors in the QWL

conceptualization (Fernandez 1996)11.

Quality of Work Life will be varying from place to place, industry to industry

and culture to culture (KlottMundick and Schuster 2009)12. The concept of QWL with

special reference to services sector is discussed below.

Services Sector Employees and Quality of Work Life

(Heskett et al.1994)13 suggested that quality of work life of employees will

improve external service quality to its customers and one may suggest that employees

with quality of work life will be more willing to provide services quickly

(responsiveness) with better courtesy (assurance) and to better understand the needs of

customers (empathy). Hence, more satisfied employees will provide better service.

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In service operations, employees are the most important assets with respect to service

quality because they are the ones who provide services to customers. Those who have

better job environment are more experienced, more skilful, and more willing to

provide services. Consequently, better external service quality will be achieved as

employees’ quality of work life is enhanced (WenShin Chen 2001)14.

(Schneider & Bowen 1985)15 A climate for employee well-being serves as a

foundation for a climate for service. Therefore, if employees perceive an organization

as offering a good work environment in return for their contribution to an organization,

then it is likely that employees will report higher levels of performance and job

involvement. Employee satisfaction facilitates superior performance and also greater

attraction and retention of the best employees, thereby enhancing the ability of the

organization to deliver higher quality services. Realization has dawned among

researchers and practitioners that customers are not just external, but that the

organization has internal customers as well, that is, their employees (Berry 1981)16.

“To analyse the quality of work life of employees various interrelated factors

needs careful consideration”. Quality of work life was thought to be based solely on

“extrinsic” traits of the job such as salaries and other benefits, safety, job security and

physical work environment. But human relations approach stresses that, while

extrinsic rewards are important, “intrinsic rewards” are key predictors of quality of

work life and employee efficiency. The “intrinsic” rewards includes traits specific to

the work done, the task content, skill levels, autonomy, and challenge (Crompton and

Harris 1998, Krahn and Lowe 1998, Rose 1994, Gallie 1990,Goldthorpe et al

1966)17.

According to the American Society of Training and Development QWL is a process

of work organization which enables its members at all levels to actively participate in

shaping the organization’s environment, methods and outcomes. This value based

process is aimed towards creating the twin goals of enhanced effectiveness of

organization and improved QWL of employees (Skirovan D 1980)18.

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The theoretical concepts of various authors stated in the above paragraphs

highlighted the importance of the quality of work life of employees in general and

services sector in particular. With a view to gain an in-depth knowledge on the

“factors” influencing QWL of employees in services sector the conceptual

framework and models of such factors developed by various authors are highlighted

below.

For the purpose of this study the organizational factors of QWL are identified

as pay and incentives, fringe benefits, job security, physical environment, work stress

stress, communication, opportunities for career growth, attitude of superior and job

autonomy. Further, the impact of these organizational factors on the organizational

development and the models developed by various authors on Organisational

commitment is also depicted in the following paragraphs.

Organisational Commitment

The concept of organisational commitment has attracted considerable attention

over recent years and has become a central objective of human resource management.

As Guest, 1987 indicated, HRM policies are designed to “maximise organisational

integration, employee commitment, flexibility and quality of work”. Interest refers to

“Commitment” which can be described as attachment and loyalty. Individuals can

display this attachment and loyalty at a variety of levels: their job, profession,

department, boss or organisation. Realistically then, commitment may therefore be

diverse and divided between any of these.

More specifically, Organisational Commitment has been defined by Mowdray,

1992 as consisting of three components: “identification with the goal’s and values of

the organisation, a desire to belong to the organisation and a willingness to display

effort on behalf of the organisation.”

Organizational commitment in the organizations has been extensively researched. It

was defined as the strength of involvement one has with the organization (Hall and

Schneider,Mowday et al.). Definitions had three main aspects; (a) a belief in and

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acceptance of organizational goals and values, (b) a willingness to exert effort towards

organizational goal accomplishment, (c) a strong desire to maintain organizational

membership (Mowday et al., Morrow). It was also accepted that commitment is a

process of identification with the goals of an organization’s multiple constituencies.

These constituencies may include top management, customers, unions or the

public at large (Reichers, 2005). According to the researchers, positive consequences

of organizational commitment is a long list that includes higher rate of attendance,

reduced burnout, employee retention, improved job performance, work quantity, work

quality, limited tardiness, low labour turnover and personal sacrifice on behalf of the

organization. (Tan and Akhtar, 1998; Somers and Birnbaum, 1998). The evidence on

the prediction of these numerous antecedents was tested in different settings. But tests

in wide spread organizations are scarce.

Normative Commitment

Affective Commitment

Continuance Commitment

Organizational commitment had three distinct domains (Allen and Meyer, 1990;

Dunham, Grube and Castaneda, 1994): affective, continuance and normative.

These three domains make up a construct and a member may have varying degrees of

all three components as a result of his or her relationship with the organization.

Affective commitment is defined as member’s emotional attachment to, identification

with and involvement in the organization and its goals. Continuance commitment is

Organisational Commitment

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defined as willingness to remain in an organization because of personal investment in

the form of non-transferable investments such as close working relationships with co-

workers, retirement investments and career investments, acquired job skills which are

unique to a particular organization. Normativecommitment is induced by a feeling of

obligation to remain with an organization. Such a feeling of obligation often results

from what Wiener (1982) characterized as “generalized value of loyalty and duty”.

When committed members tend to satisfy their social needs with other committed

members the relationship between members and management improves (Hansen et al.,

2002: 44).

Employee Empowerment

Many individuals think of employee empowerment only in behavioural terms.

Indeed, many think of it in terms of allowing a free-flowing, non-structured

environment for employees. Employee involvement and participative management are

often used to mean empowerment. They are not really interchangeable. Employee

involvement or empowerment is a complex concept; it tends to mean different things

to different people. According to Nielsen and Pedersen, (2001), “employee

empowerment” as defined by (McClelland, 2005; Conger and Kanungo, 2008) may be

seen as part of the broader concept of “employee involvement” which also includes

“participative management” The term “empowerment” is elastic and so it is not

always clear what it means in different organizations (Wilkinson1998; Dainty, et al,

2002). Notions of empowerment are derived from theories of participative

management and employee involvement (Spreitzer, KizilosandNason, 1997). The

theories of employee empowerment advocate that managers share decision- making

power with employees to enhance performance and work satisfaction (Wagner111,

1994). Lawler 111, (1991) on the other hand argues that employee involvement

emphasizes cascading power, information, rewards, and training to the lowest level

possible in the organizational hierarchy to increase worker discretion. As it turns out

employee involvement is a multidimensional concept.

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According to Olshfski and Cunningham (1998),” empowerment is about

delegation or sharing of power, authority or responsibility by those in the

organizational structure to those lower levels of the organization”.

Hickey and Casner-Lotto (2008) defines “Employee empowerment is about

delegating directly to non-management employees a significant amount of decision-

making authority commonly reserved for managers”. They further argue that a truly

participative organization is characterized by work systems that are structured to make

employee involvement on-going.

Employee empowerment is about decision-making, information sharing and

power sharing. Some researchers have also equated it to decision-making. For

example Nykodym et al., (2004) posit that employee empowerment or participative

decision-making is neither a new or simple management concept; while Bowen and

Lawler, (2002) point out that empowerment enables employees to make decisions and

Pastor (2006) emphasizes the taking of responsibility for decisions made. From a

mechanist or top-down approach, employee involvement is about delegation and

Decision-making

Planning daily activities

Setting targets

Setting policies and procedures

Using personal judgment

Information sharing

Team work

Suggestion boxes

Feedback

Consultation with supervisor

Power sharing

Ownership programs

Labour-management

Partnerships

Profit sharing

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accountability (Quinn and Spreitzer, 1999). Collins (1996) argues that that is a narrow

definition of empowerment since it hinges more on accountability than any wider

change in the process of work and decision-making which might be implied by a more

active modelling of empowerment. Collins (1995) sees that as a limiting type of

empowerment as at the end of it, the workers are empowered only in the sense that

they have a greater responsibility to act within a narrow sphere and then held

accountable for their limited action.

Employee empowerment refers to as the involvement of everyone, including

both management and employees that results into the disappearance of boundaries

between formal and informal leader to that of an inclusive organization where there

are “leaders of leaders”. At that level everyone in the organization feels empowered.

That kind of participatory management practice in a way balances the involvement of

managers and their subordinates in information sharing, decision-making or problem –

solving endeavours .However, (Hammuda and Dulaimi, 2007) posit that

empowerment is not meant to be a delegation revisited, but rather a wider meaning of

employees controlling their own destinies.

Women Executives and their Quality of Work Life, Organizational Commitment

and Empowerment in Work Place

Quality of work life among women executives: For a working individual, Quality of

Life cannot be separated from the quality of work. It provide an enabling environment

for women, and gender policy must take into account the opportunities that companies

can bring to women is Flexible working hours, especially during childbearing and

rearing years may be allowed to meet the family needs, whenever it is possible to do

so, without compromising the organisation’s goals.

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Control at work

General well being Job and Career Satisfaction Job appeal Work Life Balance Work Environment

At present scenario the women executives are concentrating on General Well-

Being assesses the extent to which an individual feels good or content within

themselves. General well-being both influences, and is influenced by work.

General Well Being incorporates both broader psychological well-beings as

well as general aspects of physical health. Psychological well-being can affect a

women employee performance at work for better or for worse. When people

feel good, they work well and enjoy being at work more. It can be useful to

review relevant policies and services, foster or maintain awareness and clarify

responsibilities, and ensure that monitoring is effective. A heightened awareness

of this aspect and its role in the overall Quality of work life a women employee

experiences can serve to help people consider more carefully what they can do

to look after their own and others’ well-being, so helping people work well at

work and feel well when working.

Women executive started concentrating more on Job and Career Satisfaction

.It represents the level to which the workplace provides a person with the best

things at work. The things that make the women employees feel good, such as:

sense of achievement, high self-esteem, fulfilment of potential, etc. The most

important determinants of job satisfaction are women employees’ interest in

QUALITY OF WORK LIFE AMONG

WOMEN EMPLOYEES.

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their work, good colleague relationships, high incomes, independent working

and clearly defined career opportunities. Most of the Women executives feel

that job satisfaction depends, on one hand, on the individual characteristics of

the person such as the ability to use initiative, relations with supervisors, or the

work that the person actually perform and on the other hand, environment

factors such as pay, promotion and job security. The rapidly changing nature of

the workplace is becoming more demanding on the women employee, where

upon longer working hours, job insecurity, and demanding deadlines are trends

that have tended to challenge maintenance of women executive satisfaction.

More positively, the women executives feel that when there is some changes in

workplace policies can lead to increases in work performance and job

satisfaction

Work-Life Balance is about people having a measure of control over when,

where and how they work. Within the current Quality of work the Home-Work

Interface factor reflects the extent to which the employer is perceived to support

women executive’ family and home life. Both the individual and the employer

need to actively and continually monitor work-life balance, and make

adjustments as required. Traditionally, there was a misconception about a

woman’s ability to balance her work and personal life. There are women, who

committed themselves to success and growth of organizations. They include,

Anne Mulcahy at Xerox, Carly Fiorina of Hewlett-Packard, Sara Mathew of

Dun & Bradstreet Inc., SulajjaFirodiaMotwani of Kinetic Engineering Ltd.,

Ranjana Kumar of NABARD, VidyaChhabria of Jumbo Group,

NainaLalKidwaj at HSBC, IndraNooyi at PepsiCo, KiranMazumdar Shah at

Biocon, LalitaGupte and ChandaKochar of ICICI. These are a few notable

examples of women, who not only balanced their home life with their work, but

also reached top positions in their respective organizations with their own styles

of leadership; a woman’s journey to such positions is not easy. Many research

studies strongly support that woman’s are born with the power of handling

situations as they are tough warriors. Many experts strongly believe that women

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are associated with more participative an interactive management skills. With

this they not only encourage their employees, but also make them feel more as

part of one family. This, in turn, helps them to achieve their goals and

objectives successfully.

The women executives in the corporate world feel that Control at Work plays

a very vital role in Quality of work life. It reflects the level to which a women

employee feels they can exercise what they consider to be an appropriate level

of control within their work environment. That perception of control might be

linked to various aspects of work, including the opportunity to contribute to the

process of decision making that affect women executives Most women

executives as who are in the top management suggest that perception of

personal control can strongly affect both an individuals’ experience of stress

and their health. They also suggested that there can be a positive significant

association also between personal control and job satisfaction and that poor

health is more prevalent in jobs characterised by high job demand and low job

control. However, organisations can reduce job strain by increasing worker

control without reducing actual workload. Some organisations have found that

they were able to change their administrative structure to reduce women

employee stress and protect women executives’ mental health without adversely

affecting productivity.

At present era the Women Employees wanted the management to make the job

more appealing. Job appealing can be done by attractive salary, better

communication and improved benefit packages.

To improve the Quality of work life the women executive believes they should

have favourable work environments. Working Conditions assesses the extent

to which the women executive is satisfied with various aspects affecting their

ability to work effectively, such as the fundamental resources provided at work,

the physical working environment, and security. Dissatisfaction with physical

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working conditions such as health and safety, or work hygiene can have a

significant adverse effect on women employees Quality of work life.

Organizational Commitment among Women Employees: To be successful in

today’s business environment, companies need the knowledge, ideas, energy, and

creativity of every employee, from front line workers to the top-level managers in the

executive suite. Commitment practices are implemented with the hopes of building

employee commitment, overcoming worker dissatisfaction, and reducing absenteeism,

turnover, poor quality work, and sabotage. Reservations are given more priorities in

case of public sector. Whereas the policies of the private and MNC the main concern

is on improvement of women in the organisation. Accordingly, management policy in

all the sectors prominence is on the women’s role in the organization.

Career Opportunities-Career is the interaction of work roles and other life

roles over a person’s lifespan including both paid and unpaid work in an

individual’s life. The company policies play an important role in providing

career opportunities. It seems that the organization may benefit from increasing

Organizational Commitment among

Women employees:

Career Opportunities

Work Life Policies

Job Characteristics

Positive relationship

Organizational structure and Management Policies

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commitment across all career stages. Career advancement, autonomy and

measurability of output related to commitment indicate that the creation of job

ladders and job flexibility will maximize commitment of women employees

and minimize absenteeism and turnover.

Work Life Policies-Friendly work life policies are required to reduce negative

impacts of work life conflict among women employees. Organizations can use

different time based strategies like flex time to reduce the work life conflicts of

women employees. Researchers also support the idea of flexible timing and

working conditions. Organizations need to accommodate these individuals with

remote access for telecommuting, childcare centres, referral programs and

employee assistance programs. Hence friendly work life polices can induce

organizational commitment among women employees.

Job Characteristics-The job must have five core characteristics and they are

skill variety, task significance, task identity, autonomy and feedback. Women

employees who follow organizationally designed job patterns should be

appreciated and rewarded with good pay and incentives. Their innovation and

creativity has to be encouraged.

Positive relationship- The organization as a work place environment is built

up of working relationship. When the women employees find the supervisory

relationship to be fair in its practices and they tend to be more committed to the

organization

.

Organizational structure and Management Policies-Organizational

structure plays an important role in organizational commitment. The

management can increase the level of women employees’ commitment with

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greater direction and influence. The management policies that encourage

employee involvement can help to satisfy women employee’s desire for

empowerment and demand for a commitment in organizational goals.

Management support plays a vital role in women employees’ commitment. If

the management provides them work life benefits and other employee

supports, the women employees will be more committed to organization.

Women Empowerment in the Workplace:Empowerment of women in the

workforce means allowing women to have more control over their lives. It means

giving them the freedom to make their own schedules, learn new skills and gain self-

reliance. Empowerment is created when the strengths that women already bring to the

company are recognized and utilized. Research provided by various researchers has

shown that businesses that promote women empowerment and gender equality are

more profitable. As more businesses take part in gender equality measures and see

their revenue increase as a result, the case for empowering women in the workplace is

likely to become a more recognized goal.

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Gender Equality-The importance of gender equality is documented in "The

Business of Empowering Women," a survey of 2,300 women executives. The

survey found that the companies who focused their efforts on empowering

women reported significant business benefits. A third of the businesses

surveyed reported that their investments in women resulted in increased

profits; another third reported their investments were expected to grow in the

short-term. In order to help companies incorporate gender equality into the

workplace, the United Nations organization has established "Women's

Empowerment Principles," which recommends that businesses establish

gender equality goals that should be incorporated into manager performance

evaluations.

Equal Opportunity and Non-discrimination-Researchers suggests that

allowing women more power and control in the workplace allows businesses to

diversify decision-making, resulting in higher revenue. In order to provide

equal opportunity for women in the workplace, Women employees

recommends that employers ensure each employee receives equal

compensation to that of other employees of similar rank, experience and tenure.

The organization suggests implementing gender-sensitive recruiting practices

and appointing women to management and board of director’s positions.

Health and Safety Environment-Investment in safe working conditions and

health policies is good for business. Research by the Massachusetts Institute of

Technology found that violence and harassment are disruptive in terms of

lower productivity; they often result in litigation and bad company publicity.

Women employees suggest employers adopt and emphasize a zero-tolerance

violence and sexual harassment policy at work. Businesses should invest in

health insurance policies that include counselling; they need to respect all

workers' rights to medical leave and counselling for themselves and their

dependents.

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Education and Training-Employers should encourage women to pursue non-

traditional jobs and ensure that all employees have equal opportunities to get

involved with mentoring programs.

Leadership- The distinctive and persuasive leadership style of women

employees enables them to build long-lasting relationships as opposed to mere

social networks. Women corporate leaders tend to be intuitive and calculated in

their decision making qualities that enable fair and sound judgment. Employers

should partner with other businesses to advocate for gender equality and more

opportunities for women. It is also important to recognize women who

contribute and work in leadership roles within the community.

Employee Empowerment among Women Executives improves their Quality of

work life and commitment towards organization:

Quality of work life, organizational commitment and employee empowerment are

the three most important and fundamental subjects in today's organizational

behaviour. Organizations, as systems, need coordination and efficiency among their

subsystems. One of the most important of these subsystems is manpower and

considering it is one of the most important priorities of the organization. Sufficient

attention to manpower leads to flourishing of the talents and prevents further problems

for the organization and management. Therefore many organizations focus more on

Quality of work life, Commitment and employee empowerment. Nowadays, there are

many organizations which provide integrated systems of beneficial services, which

include family benefits, to their staff. When employees are committed to the

organization, they get their identity inside it and remain loyal to it (Rout, 2000, p. 51).

Quality of work life program includes all kinds of improvements in organizational

culture which support growth and excellence in the organization (Philpot, 1987, p.

412). QWL in organization is essential for attracting and retaining employees.

Separating and determining which characteristics affect QWL is difficult. Oftentimes

quality of work life includes many concepts, one of which is employees'

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understanding of work and non-work lives (G. Nasal Seraji, 2006, p.

35).Organizations can make their staff committed to the organization by improving

quality of work life satisfying their essential needs, establishing mutual trust, and

creating an appropriate organizational culture. Commitment can have many positive

outcomes; those who have commitment are more orderly in their work, spend more

time in the organization and work more.

When women employees experience more empowerment, they report less job

strain and more job satisfaction and organizational commitment. They are also less

likely to leave the company. Empowerment does not only affect employee attitudes, it

also affects their performance (i.e., managerial effectiveness and employee

productivity/performance) and work behaviours (i.e., innovation, upward influence,

and being inspirational to others).

Managers should keep employees committed to the organization, and to do so,

they should be able to make them more committed by using employees' participation

in decision-making and providing an acceptable level of job security (Moorhead,

translated by Alvani and Memarzadeh, 1995, p.75).The increase in Quality of work

life and organizational commitment of manpower (in all three aspects of affective,

continuance, and normative) can have a great impact on the level of interest, job

satisfaction, willingness to stay, and organization performance. The importance of

manpower in advancement of a society affairs is so much that it can be considered as

the most effective pillar of scientific, cultural and economical developments in a

countries.

Empowered teams are also more proactive, less resistant to change, satisfied with their

jobs, high quality of work life and committed to the team and the organization. More

empowered teams have better process improvement, higher quality products/services,

and more customer satisfaction than less empowered teams. Programmatic research

on high involvement work practices has been conducted by researchers at the Centre

for Effective Organizations at the University of Southern California. Their research

has shown that high involvement practices which involve sharing power, information,

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knowledge, and rewards with employees at all levels has positive outcomes for

organizations, particularly in terms of improvements to employee quality of work life,

better commitment in organization the quality of products and services, customer

service, and productivity.

Conceptual Framework: The Empowerment in Organisation by women and women

employee empowerments significantly contributes towards improvement in quality of

work life of women employees, better commitment towards organization and along

with achievement of prime objective of the organisations. Based on above discussion

the frame work is shown in figure below.

Many experts believe that organizations can improve Quality of work life and

organizational commitment of women employees through employee empowerment.

This occurs in one of two main ways. First, empowerment can strengthen quality of

work life by providing women employees with the opportunity to attain intrinsic

rewards from their work, such as a greater sense of accomplishment and a feeling of

importance. In some cases, intrinsic rewards such as job satisfaction and a sense of

purposeful work can be more powerful than extrinsic rewards such as higher wages or

bonuses. Motivated employees clearly tend to put forth more effort than those who are

less motivated. The second means by which women employee empowerment can

increase Quality of work life and organizational commitment through better

Women Employee

Empowerment

Improved Quality

Of Work Life

High Progress in organizational commitment among women

employees.

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autonomy, training, work environment, leadership, control at work, openness and trust

and management policies. Employees who are allowed to participate in decision-

making and empowered to carry out their work are more committed to take initiative

and contribute new ideas. Empowerment thus inspires change and increases the level

of quality of work life and workplace commitment which increases the degree of

individual commitment and helping for achievement of organizational goal. The key

inputs for positive results are training, education and counselling in order to create a

new work ethos.

The benefits that can be derived from employee empowerment include women

employee commitment, improved quality of work life, efficiency, responsiveness,

synergy and management leverage. (Lin, 1998). To be a bit more specific,

empowerment is beneficial because everyone can see and manage their work as part

of the interconnected system. People are trusted and responsible adults, which is how

they behave. A collection of small, self-contained teams or business units are many

times more flexible and responsive at meeting threats and capitalizing on

opportunities. Quality of work life, commitment, energy, and passion levels are high.

Everyone focuses on meeting customer and stakeholder needs. Women Employees

have more control over the work, the vicious cycle of learned helplessness in replaced

with a virtuous recycle of hopefulness and leadership. The feedback loops are much

clearer and closer to the customer. (Clemmer, 2002). Results from companies using

the empowered team concept show that: “dynamic results occur with committed and

creative teamwork, high quality of work life among employees, employees become

more confident and motivated to the team process, and the better and stronger

company in the end result.” (Hellinghausen& Myers, 2006). In addition, individual

team members offer a broad set of skills and ideas, cross functional teams can greatly

facilitate project implementation as many systems project require cross functional

cooperation, innovativeness and customer satisfaction can be improved as teams are

empowered to make customer decisions in without having to wait for managerial

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approval, and finally, the quality of work life is improved as employees are more in

control of their own destiny. (Johnson, 2008).

The Empowerment in Organisation by women and women employee

empowerments significantly contributes towards improvement in quality of work life

of women employees and committed towards organization along with achievement of

prime objective of the organisations. However, its success depends upon the

commitment and attitudes of the management, union, and the employees of the

organisation. For a working individual, Quality of Life cannot be separated from the

quality of work. It provide an enabling environment for women, and gender policy

must take into account the opportunities that companies can bring to women is

Flexible working hours, especially during childbearing and rearing years may be

allowed to meet the family needs, whenever it is possible to do so, without

compromising the organisation’s goals.

The present study adopted a different approach and examined their roles in

terms of their independence as well as joint contributions to the Quality of Life and

Organizational Commitment of working women. It focused on women’s

empowerment in the corporate world. When the women employees experience good

quality of work life they tend to be more committed to their organization. Both

Quality of work life and Organizational Commitment play a significant role in

empowering Women employees in their work place. When there is women employee

empowerment in work place, it improves the quality of work life among women

employees and they will be more committed towards organization in achieving the

organizational goals.

Industry Profile

An industry profile is a brief or a comprehensive summary of a particular

industry which discusses the history, employment, revenue, characteristics,

technology, and the overall outlook of an industry. Since, this study is cornered on

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service industry the profile of services industry in general and the profile of banks,

insurance and telecom in particular is discussed below.

Profile of Indian Services sector and its importance

India’s Services Sector contribution to its GDP has been higher than that of

agriculture and manufacturing sectors over a past two decades as shown in Table 3. It

is indeed very interesting to know that India’s Services Sector was continuing to grow

even at the time of global recession when the Worlds’ Services sector was badly

affected both in terms of GDP growth as well as Employment (shown in graph 3.1 and

graph 3.2).Services Sector is also a large and most dynamic part of the Indian

economy both in terms of employment potential and contribution to national income.

India ranks twelfthin services output after US, Japan, UK, Germany, China, France,

Italy, Spain, Canada, Brazil and Russia. It provides employment to around 23% of the

total workforce in the country. The following table shows a comparison between the

three industries in India in terms of contribution to India’s GDP.

TABLE 3.1

Growth of Services Sector in India

Sectors

% share in GDP

1990

-91

2001

-02

2004

-05

2005

-06

2006

-07

2007

-08

2008

-09

Agriculture, forestry and fishing

32% 25% 21% 19.5% 18.5% 17.8% 17.5%

Manufacturing and mining 27% 26% 26% 26.4% 26.7% 26.5% 24.1%

Services Sector 41% 49% 53% 54.1% 54.8% 55.7% 58.4%

Total 100 100 100 100 100 100 100

Source: Central Statistical Organization, Ministry of Statistics and Program Implementation India 2012

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Table 3.1 clearly shows that

1. Services sector has been showing a higher growth rate than that of agriculture and

manufacturing for the past two decades.

2. India’s services sector contribution to the country’s GDP has been increasing even

during global recession (2008) and went up nearly to 58.4% in 2009 (which

accounts for more than half of India’s GDP). This shows the strength of services

sector in India.

TABLE 3.2

Employments in India- Sector Wise

Sector Employment %

Banking 17.5%

Insurance 20%

Telecom 62.5%

Source: India Labour Force statistics 2012

Tableshows that the majority of workforce is employed in Services Sector in

India. The concentration of the world population in countries like China and India

with more than one billion each was a matter of concern before liberalization. On

account of liberalization both the nations have become more service oriented because

of it’s highly skilled labour, and have shown their respective potentialities of its

peoples they hold. India has over 380 universities and about 1500 research institutes

which churn out approximately 2,00,000 engineers, 3,00,000 post graduates, 2,10,000

other graduates and around 9000 PhDs every year. This large base of skilled

manpower offers unparalled advantage to the companies operating in India. As a

result many multinational companies have either established operation hubs in India to

leverage sizeable talent pool or they have outsourced their work to a third party in

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India. This has made sure that the services that are available in the country are of best

quality. This has given a major boost to the Indian Services Sector in terms of GDP.

The working age population in India is expected to rise by 83% by 2030.

The following table shows the change in working population from 2010-30

among BRIC countries in the world.

TABLE 3.3

Change in working population

Country Change in working population 2010-30 (in million)

Brazil +18.40

China +9.90

India +241.10

Russia -17.00

Japan -13.00

Source: United Nations, World Population Prospects,2008

CHART

18.4 9.9

241.1

-17 -13

-50

0

50

100

150

200

250

300

Brazil China India Russia Japan

Change in working population 2010-30 (in million)

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Between 2010-2030 India will add 241 million people in working-age population;

Brazil will add around 18 million, while China will add 10 million people. The

increase of Indian working population is a good sign for the growth of Indian services

sector in future.

Future of services sector in India

Being the fastest growing segment, the Indian economy is likely to be

overwhelmingly dependent on the growth of services sector in future. More than 70%

of India’s incremental GDP and 60% of new jobs over the next five years are expected

to be generated by Services Sector. (Source: A survey on country’s services sector

2012, Boston consulting group-India)

The future of Indian economy is proving to be brighter not only because of its

huge human resources and their competency but also because of increasing

consumerism, absence of controls and licenses, interest of foreign entrepreneurs in

India and existence of four hundred million middle class people (Chand Khandela

2007)19.

The International Labour Organization (ILO) has predicted that the services

sector will surpass all other sectors in job creation by 2015 in the Asia-Pacific region,

which includes India and China. (Source: Times of India , Services sector to create

most jobs by 2015: ILO Published on 08/14/2007)

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The various sectors under the Service Industry in India are communication, insurance,

banks, construction, trade, hotels, transport, restaurant, storage and real estate. The

profile of sub service sectors in India is shown in table.

TABLE3.4

Sub Service Sectors share to GDP (India)

Sub-Services Sector 2005-06 2006-07 2007-08 2008-09

Communication, Transport, Hotels 26.4 27.1 28 30.2

Insurance, Banks, Financial and Business Services 13.8 14.3 14.6 14.8

Community, social and Personal services 13.9 13.4 13.1 13.4

Total contribution by services sector as shown in table 3.3 54.1 54.8 55.7 58.4

Source: National accounts statistics 2012

The above table shows the profile of three sectors taken for study such as

banks, insurance and telecom in terms of growth rate of employment for the year

2012. It is clear from the table that Banking, Insurance and Telecom has created more

than 50% growth rate in employment. Whereas IT sectors the giant sector under

service industry showed a negative growth rate of employment because of global

recession

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TABLE 3.5

Growth rate of employment in 2011-12

Sector Growth in %

IT/enabled -7.84

Banking 20.51

Insurance 2.92

Telecom 27.61

Source: Business Maps of India 2012

CHART

Source: ASSOCHAM Placement Pattern Study Employment Scenario in India (April-October 2012)

-10

0

10

20

30

IT / Enabled Banking Insurance Telecom

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Profile of Banking Sector in India

When banks across the world were falling like a pyramid of playing cards; we were

safe, steady and strong, with our banks, which have acted like a strong backbone of

our economy20.

At present India have 87 scheduled commercial banks (SCBs) – 27 public

sector banks, 29 private banks and 31 foreign banks. They have a combined network

of over 64,608 branches, 8, 93,356 employees and 43,651 ATMs. Public sector banks

account for 87.7 per cent of the offices, 82 per cent of staff and 60.3 per cent of

ATMs. The following table shows the total bank employees population in Tamil

Nadu.

Number of Bank Employees in Tamil Nadu

(MARCH 2012)

Officers 28,972

Clerks 30,456

Sub- ordinates 12,512

Total 71,940 Source: Basic Statistical Returns of Scheduled Commercial Banks in

India, Vol. 37 March 2012

A healthy banking system is essential for any economy striving to achieve good

growth and remain stable in an increasingly global business environment.The pace of

development for the Indian banking industry has been tremendous over the past

decade. As the world reels from the global financial meltdown, India’s banking sector

is continuing to provide growth opportunities (FICCI 2012).

FICCI conducted a survey on the Indian Banking Industry in 2009 to assess the

competitive advantage offered by the banking sector, as well as the policies and

structures required to further stimulate the pace of growth. A majority of the

respondents, almost 69% of them, felt that the Indian banking Industry was in a very

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good to excellent shape, with a further 25% feeling it was ingood shape and only

6.25% of the respondents feeling that the performance of theindustry was just

average.This optimism is reflected in the fact that 53.33% of respondents were

confident ina growth rate of 15-23% for the banking industry in 2010-11 and a greater

than25% growth rate for 2014-15.

TABLE 3.6

FICCI Survey on Banks 2009

Opinion of respondents % of respondents

Excellent 69%

Good 25%

Average 6%

Aggregate deposits of Scheduled Commercial Banks (SCBs) increased by

22.4% per cent (Rs.6, 33,383 crore) during 2011-12 as compared with 16.8 per cent

(Rs.5, 85,006 crore) in the previous year. During FY08, the total asset base of the

SCBs was equivalent to 91.8% of India’s GDP, as compared to 62.7% of GDP in

FY04. This ratio increased to 98.5 per cent at the end of March 2012 from 91.8 per

cent at end-March 2011. The share of banking sector to country’s GDP increases to

over 4.7 per cent in 201021.

A report "Opportunities in Indian Banking Sector", by market research

company, RNCOS, forecasts that the Indian banking sector will grow at a healthy

compound annual growth rate (CAGR) of around 23.3 per cent till 2012.

Projections of Banking Industry:It is being predicted that India could become the

third largest banking hub in the world by 2040. The banking industry is slated for

growth in future with a more qualitative rather than quantitative approach. The total

assets of all scheduled commercial banks by end of March 2012 are projected to touch

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Rs 40, 90,000cores which is nearly 65% of GDP at current market prices.

(Department of Statistics and Information Management, RBI 2011)

Employment Opportunities in Banking Sector

The banking sector is to provide over 1.5 million jobs by next ten years. The

financial year 2011-12 has already shown the banking sector to be among the largest

job providers in the country with over 50,000 vacancies being notified and to be filled

up in the public sector banks. (McKinsey report ‘India Banking 2012’)

TABLE 3.7

List of top five banks based on number of branches in India

(Figures in Rs. billions, as on 31st March, 2012)

Total Deposits

Total Advances

Net profit

Total Assets Branches

State Bank of India 4,355.21 3,373.36 45.41 5,665.65 10,186

ICICI Bank 2,305.10 1,958.66 31.10 3,453.12 1,400

Punjab National Bank 1, 398.60 1,990.48 20.48 1,990.48 4,500

HDFC Bank 1,007.69 634.27 15.90 1,332.51 1,412

Bank of Baroda 1,520.34 1,067.01 14.35 1,795.99 2,800

(Sources: Dun & Bradstreet 2009)

Profile of Insurance Sectorin India

Insurance business has a positive correlation with economic development in an

economy. As an economy develops over the years, insurance sector starts making

inroads into the interiors of the system. The insurance sector in India has come full

circle from being an open competitive market to nationalization and back to a

liberalized market again. By tracing the developments in the Indian insurance sector,

360-degree turn has been witnessed over a period of almost two centuries.

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India is the fifth largest market in Asia by premium following Japan, Korea,

China and Taiwan. Since the end of the year 2000 the insurance sector in India has

gone through several phases and changes, especially after 1999 when the Government

of India opened the insurance sector for private companies to apply for insurance,

allowing FDI up to 26%. Since then, the insurance sector in India is seen as a growing

market among the global insurers. However, the largest lifeinsurance company in

India is still government owned. In India, insuranceis a national issue, in which life

and general insurance is still a booming sector with great potential for various global

companies. Life insurance premium accounts to 2.5% and General insurance premium

accounts to 0.65% of GDP in India. In the second quarter of fiscal year 2011-12 1480

branches were added including 1293 branches set up by private life insurers increasing

the number of branches to a total of 10,037 out of which 7000 branches are in urban

areas. During this period the life insurance industry alone added 53,332 employees to

their pay rolls bringing up the total to 3 lakhs. The Indian Insurance Industry at

present consists of 34 players out of which public insurance companies are seven and

private insurance companies 27. This includes both life insurance and non-life

insurance companies. Insurance Market in India continues to be dominated by public

sector, though share has declined from 100% in FY-01 to 59% in 2012(Source: IRDA

2012)

Growth of Insurance Sector

The insurance sector in India has shown tremendous growth potential. Indian

insurance sector has registered an unprecedented growth of 200% and has attained a

size of Rs. 2000 billion by 20010-11. An unprecedented growth is likely to be seen in

Indian insurance business by 2011-12 in which private insurance business would grow

@ 140% in view of aggressive marketing technique adopted by them as against 35-

40% of state owned insurance companies growth rate (ASSOCHAM 2009).

Indian insurance is a flourishing industry, with several national and

international players competing and the period from 2010 - 2015 projected to be the

'Golden Age' for the Indian insurance industry. Indian insurance sector is likely to

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register unprecedented growth of 200% and attain a size of Rs. 2000 billion by 2011-

12. (The Journal of Applied Economic Research, Vol.2, No.1, 43-86, 2008).

The Banking, Financial Services and Insurance (BFSI) sector has been a pillar

of strength during the slowdown. With healthy capital adequacy ratios and prudent

oversight by the RBI, our capital market holds promise in providing the adequate

support to investment and development of institutions that will complement the high

growth rates in the future.

TABLE3.8

List of top 5 insurance players in India

Life Insurance corporation of India 2155

Bajaj Allianz General Insurance Co. 1200

New India Assurance Co. 1068

Birla Sun life Insurance Co. 600

ICICI Insurance Co. 450 Source: CRISIL and ICRA 2012

Profile of Telecom Sector

“Telecommunication is no longer a basic need. Besides providing access to

information and entertainment, it’s about personal identity and, above all,

empowerment. (Source: Times of India, May 17th 2012, World Telecom Day speech)

Telecom Sector in India has undergone a revolution in the recent years. Indian

Telecom Sector is the third largest and fastest growing in the world after China and

US up to the year 2007. Even at the time of economic slowdown in 2008 telecom

sector in India has undergone a revolution and moved from third largest to second

largest in the world which is depicted the following table.

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TABLE 3.9

Total telecom subscribers (in million) – A comparative study

Year China India Japan USA

2008 698 126 155 380

2009 781 206 157 400

2010 867 297 157 411

2011 931 417 158 407

2012 1010 582 159 401

Source: (TRAI 2012)

Table 13 shows that up to the year 2012, the sector has attracted subscribers of

over 582 million which was 3.5% greater than 2008. In addition to this 20 million

subscribers are adding up every month. The Indian telecom industry registered annual

revenues of over US$ 8.57 billion in 2011 triggered by the revival in incomes from

landline and mobile services. With more than 11 operators in the country, the telecom

industry directly contributes to more than 1.5 per cent of country’s GDP growth rate

of the country. The growth rate of India’s GDP is 6.7% in 2011. (Times of India May

17th 2012).

The Government of India has recognized that the provision of world class

telecommunications infrastructure and information is the key to rapid economic and

social development of the country. This will not only help in the development of

telecommunication industry, but also provide for widespread spillover benefits to

other sectors of the economy. Since the removal of restrictions on foreign capital

investment and industrial de-licensing, India’s Telecom industry has shown large

growth. Presently, the country’s growth rate of telecom sector is 14

percent.(Handbook of Statistics, Indian Economy, Reserve Bank of India 2012).

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Projections

It is estimated that by mid-2012, around half the country’s population will own

a mobile phone. It is projected that India will have 800 million subscribers by 2013

and I billion in 2014 (Times of India May 17th 2012). Tele communication sector is

estimated to surface as the biggest driving component in India's GDP with a

contribution of about 15.4% by the FY2014(National Accounts Statistics

2012).Communication sector is predicted to emerge as the single largest sector of

India’s economy, with a 15.4% share of GDP by 2014-15. In India’s transformation

from an agrarian to a services economy, communication is recognized as the fastest

growing sector, growing by 25.7% during 2005-12. The communication sector will

thus be one of the major drivers of the Indian economy in the next five years. Its

ranking in terms of contribution to total GDP has moved up from 17th in 1980-81 to

8th in 2007-08 and is further expected to surpass all other sectors by 2014-15,

assuming that all other sectors grow at the average growth rates observed during

2001-08. Telecommunication sector’s share of total GDP has increased from just

0.7% in the 1980s and 1.0% in the 1990s to 3.6% during 2001-08. In 2011-12, the

sector accounted for 5.7% of GDP. By 2012 Fixed Line Revenues are expected to

touch US Dollar 12.2 billion while mobile revenues will reach US dollars 39.8 billion

in India.(Source Frost and Sullivan industry analyst, Times of India 2012, May 17th

World Telecom Day Issue)

TABLE3.10

Number of subscribers (in million) - A Projection

Year Number of subscribers

2010 600

2012 612

2013 800

2014 1 billion Source: Ministry of Communication and Information Technology 2012

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Leading Telecom players both global and Indian are keen to make India as

their hub for manufacturing as well as Research and Development activities. This

helps to boost innovations in the sector as well as providing new employment and

growth opportunities, making India an upcoming hub for telecom services. (Times of

India May 17th 2012)

Telecom tops in Employment growth: The communication sector is said to have a

significant impact on the employment in the country. The study predicts that the sector

will generate an additional 8.5 million jobs by 2014-15, taking the total number of

jobs in the sector to 10.3 million (NCAER 2009). Hence, human resource functions is

said to be a challenging task for the telecom industry. Employment in Telecom Sector

has grown by 33% since 1994 which is the highest growth rate among service sectors.

With more and more players entering the industry, the competition in the industry in

terms of attracting and retaining the best talent is also increasing. The sector is

creating employment opportunities and adding around 1 lakh people in its work force.

Total employment in the sector is expected to reach 10.3 million in 5 years.

Communication will be amongst the Top 3 growth drivers of the economy by 2015.

TABLE3.11

Market share of Telecom players in India

Telecom Players % of market share

BharathiAirtel 22%

Vodafone Essar 18%

Reliance GSM 18%

BSNL 11%

Tata Teleservices 11%

IDEA Cellular 10%

Aircel 6%

Others 4%

Total 100% Source: Business Line 21st August 2012

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The industry profile of the three sectors under service industry such as banks,

insurance and telecom explains the importance of these sectors in terms of present and

future employment opportunities, contribution to the country’s GDP and economic

growth.

IT – ITES Industry in India

During 2008–09, India has entered into many multi – vendor contracts and long

term off-shoring contracts. To name a few, Subexwon a US$ 50 million deal with

British Telecom, Mind tree Consulting won a US$ 50 million deal with Arcelor

Mittal, Tech Mahindra won a US$ 700 million deal with BT to provide systems and

process transformation, Infosys won a five year contract with US insurer Conseco and

Wipro won a nine year IT infrastructure management deal with Aircel, estimated at

US$ 500 million. (IBEF, 2009)

The combined India domestic IT-ITES market is expected to grow at 15 per

cent in 2012 to achieve revenues of Rs.1,20,666crore compared to Rs 1,04,906 crore

in 2009. The domestic IT market is expected to grow at 13 per cent in 20 12 to touch

Rs.1,07,655crore, while the domestic ITES market is expected to post revenues of

Rs.13,011 crore, a growth of 35 per cent. The release said the combined India

domestic IT and IT-enabled Services grew by 5.4 per cent in 2009 have reached

Rs.1,04,906 crore compared to Rs.99,654 crore in 2008. (ICT, 2010)

The Industry has improved to provide a soaring share of voice-based services

and a variety of back-office processing activities. Range of services provided by IT

and ITES sector have extended in the last three to four years to include progressively

more intricate processes relating rule-based decision making and investigating

services requiring knowledgeable individual conclusions.

The total revenue for the Indian IT industry was US$ 71.7 billion in 2008-09.

The Indian IT industry has been growing at a compound annual growth rate (CAGR)

of 27 per cent for the last five years. Contribution of IT industry to India’s gross

domestic product (GDP) has grown from 1.2 per cent in 1997-08 to an estimated 5.8

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per cent in 2008-09.The total revenues from export have reached US$ 47.3 billion in

2008-09.The total exports have been growing at a CAGR of 28.7 per cent over the last

five years. During this period 2008-2009, direct and indirect employment has reached

approximately 2.23 million and eight million, respectively. Domestic market revenues

have touched approximately US$ 24.3 billion in 2008-09.Domestic market revenues

have been growing at a CAGR of 24 per cent for the last five years. (NASSCOM,

2009)

Indian IT/ITES sector (IBEF, 2009)has developed significantly with its,

Growth into varied verticals

Well distinguished service offerings.

Ever-increasing geographic diffusion

India’s importance among emerging markets, both as a supply and demand

Centre, is stimulating further IT/ITES growth

Continue to be one of the best emerging industries in India; while India

maintains its leading position as a strategic off shoring target for multinationals

globally.

The Indian ITES-BPO (domestic and exports) revenue was US$ 14.7 billion

and the sector grew at a rate of 18.9 per cent in 2008-09.

The Indian IT services market grew by 23 per cent between 2005-06 and 2008-09 and

the revenues are around at US$ 8.3 billion in 2008-09. The banking, financial services

and insurance (BFSI) vertical continues to account for the largest share of IT/ITES

services at 41 per cent. Hi-Tech/ telecom vertical, account for the second-largest

share at 20 per cent. Other verticals such as manufacturing, retail, media and

healthcare are rapidly gaining pace.Domestic IT-ITES market revenues have been

growing at a CAGR of 23 per cent between 2005-2006 and 2008-09 and about US$

24.3 billion in 2008-09. Domestic IT-BPO revenues grew by 24 per cent in and about

US$ 2 billion in 2008-09. Hardware accounted for about 49 per cent of the total

domestic IT-BPO spends in 2008-09.

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TABLE3.12

IT services export revenue

IT services export revenues:(2008-2009 ) US$ bn

Project oriented 12.9

IT consulting 0.65

Systems integration 0.75

Custom application development 11.12

Network consulting and integration 0.32

IT Outsourcing 11.02

Application management 7.21

Infrastructure management 3.80

Support and training 1.96

Total 25.88

(Source: IT: Industry profile, July 2009, CRIS INFAC)

Exports accounted for 87 per cent of the revenues and grew at a rate of 18 per

cent in 2008-09 to reach US$ 12.84 billion. Services exports account for nearly 67.7

per cent of total IT/ITES sector exports in 2008-09. The concept of outsourcing is

increasingly gaining acceptance even in the more conservative markets around the

world. India was crowned by the A.T. Kearney Global Services Location Index 2009,

surpassing 49 other countries of the world, promising to be the destination of

preference as an off shoring site of global IT/ITES powerhouses.

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TABLE3.12

Global services location

India is expected to continue drawing substantial investments in the sector for another

10-15 years. India is emerging as a back end services location to the global innovation

hub.

Source: A T Kearney Global Service Location Index 2009", AT Kearney website,

www.atkearney.com

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The Reasons for India’s success in IT – ITES Industry

“The Indian IT-ITES industry is India’s largest employment generator in the

organized sector of today creating jobs for over 7.5 million people both directly and

indirectly, and is expected to cross 10 million by 2012. A varied combination of

factors have led to this - healthy growth environment, attractive remuneration and

different kinds of employment opportunities in the new economy based on varying

skill sets, and above all the availability of talent in India which meets the employment

projections. What we do need to work on is the quality factor to ensure we remain the

highest employment generator and maintain our share of the global offshore IT and

ITES industry.” (KiranKarnik, 2008)

TheReasons for India’s success in IT – ITES Industry are,

Improving telecom and other infrastructure which is at par with global

standards.

Strong quality orientation among players and their focus on measuring and

monitoring quality targets.

Fast turnaround times and the ability to offer 24x7 services based on the

country's unique geographic location that allows for leveraging time zone

differences.

Proactive and positive policy environment which encourages ITES/BPO

investments and simplifies rules and procedures.

A friendly tax structure, which places the ITES/BPO industry on par with IT

services companies. (NASSCOM)