SIGNIFICANCE OF ORGANISATIONAL

COMMITMENT TOWARDS EMPLOYEE

RETENTION WITH REFERENCE TO IT
INDUSTRY IN CHENNAI
Presented By
Sukesh R
15MBAP054
MBA I Year
Sub: Human Resource Management

Article Details
Authors: V Subha
Journal: Prerana Journal of Management Thought and Practice
Vol No: 7
Year : March 2015
Page Number: 67-78

INTRODUCTION
Human resources are the life-blood of any organization
The future of work suggests flexibility, boundary less communities
and change in work as we know it today
As the world of work changes from a worker-intensive, industrial
society to an automated information society, the workforce
increasingly becomes more educated with higher professionalism and
a decrease in organisational loyalty

CONT.
High technology employees are educated, have a strong preference
for independence and hold a large portion of the organisations
intellectual capital
Employers struggle to retain their valuable high technology
employees due to a general shortage of experienced candidates
In the current business world, most of the activities of any
organization are based on Information Technology

CONT.
The IT professionals have specialized skills and hence their attrition
adversely impact the competitive position of the organization
Talented IT professionals always have high demand and hence have
more chances to land on new jobs
Besides, continuously satisfying the employees is another challenge
that the employers are facing today

ORGANISATIONAL COMMITMENT
Organizational
commitment is
the
psychological attachment to the organization

individual's

Some of the factors such as role stress, empowerment, job insecurity

and employability, and distribution of leadership have been shown
to be connected to a worker's sense of organizational commitment.

EMPLOYER BRANDING
Employer brand is the term commonly used to describe an
organization's reputation as an employer, as opposed to its more
general corporate brand reputation
Employer brand management addresses the reality of the
employment experience and not simply its presentation
Employer brand supports both external recruitment of the right
kind of talent, and the subsequent desire for effective employee
engagement and employee retention

OBJECTIVE
The objective of the study is to reveal the importance of
Employer branding in organisational commitment towards
employee retention.

HYPOTHESES
H1: Level of organisational commitment has no significant difference on
Employee Brand (EB) Score reference to number of years of working in
the same organisation.
H2: Level of organisational commitment has no significant difference on
Employee Brand (EB) Score reference to present salary drawn from the
organization.

METHODOLOGY
This study is descriptive in nature
The datas were collected using questionnaire
The questionnaire is distributed to 750 IT employees from 15 different
companies in Chennai
50 employees taken as a sample from each company
The collected data analysed by using percentage analysis and ANOVA

Factor
Gender

Age

Marital Status

Educational Qualification

Total Experience (years)

Experience in present organisation (years)

Salary (Rs)

Description
Male
Female
Up to 25
26-30
31-35
36-40
Above 40
Single
Married
Separated
Graduate
Post Graduate
Professional
Others
Less than 2
2-4
4-6
6-8
8-10
Above 10
Less than 2
2-4
4-6
6-8
8-10
Above 10
Below 40000
40001-60000
60001-80000
80001-100000
Above 100000

No. of Respondents
455
295
208
231
193
73
45
315
335
100
189
304
187
70
115
210
94
119
123
89
221
175
93
142
70
49
243
198
110
115
84

Percentage
60.67
39.33
27.73
30.80
25.73
9.73
6.00
42.00
44.67
13.33
25.20
40.53
24.93
9.33
15.33
28.00
12.53
15.87
16.40
11.87
29.47
23.33
12.40
18.93
9.33
6.53
32.40
26.40
14.67
15.33
11.20

Commitment score

Experience

Mean

Std. Deviation

No. of Respondents

6-8 Years
8-10 Years
Above 10 Years
Total
< 2years
2-4 years
4-6 Years
6-8 Years
8-10 Years
Above 10 Years
Total
< 2years
2-4 years
4-6 Years
6-8 Years
8-10 Years
Above 10 Years
Total
< 2years
2-4 years
4-6 Years
6-8 Years
8-10 Years
Above 10 Years
Total

40.8276
38.0000
29.0000
42.9167
47.2900
54.5581
60.2593
58.4578
50.4000
54.9487
54.0827
52.0317
55.9459
61.5000
56.1667
59.1250
65.0000
56.1692
45.6697
54.7657
56.6344
54.3732
54.5000
53.3265
55.1240

7.1568
0.0000
0.0000
13.5188
12.3003
17.2228
9.1325
12.7416
11.8778
10.1513
13.8344
15.3958
11.7022
9.19096
13.5750
10.5421
0.00000
13.1010
13.8988
15.4769
12.3453
13.8105
12.2518
12.6316
14.4601

29
5
5
168
100
86
54
83
25
39
387
63
37
20
30
40
5
195
221
175
93
142
70
49
750

< 2years
35.9655
8.9344Demographic
58 Factors And
H2: Chi-square
Test - Relation
Between
2-4 years
54.2692
14.9956
52
Frequency
Of Purchase
4-6 Years
41.2105
11.2870
19

Low

Moderate

High

Total

Organisational Commitment Wise Distribution 0f

Respondents
Organisational
commitment
Low
Moderate
High
Total

Number of
respondent
168
387
195
750

%
22.4
51.6
26.0
100

The univariate ANOVA analysis among the subject effect shows that F
value is 5.626 and the p value is less than 0.05, hence the hypothesis
H1 is rejected.

Commitment Score

Low

Moderate

High

Total

Salary(Rs)
Below 40000
40000-60000
60000-80000
80000-100000
Above 100000
Total
Below 40000
40000-60000
60000-80000
80000-100000
Above 100000
Total
Below 40000
40000-60000
60000-80000
80000-100000
Above 100000
Total
Below 40000
40000-60000
60000-80000
80000-100000

Mean
37.0735
53.2115
40.0000
46.2500
30.5385
42.9167
54.6019
52.2000
56.0571
56.4717
51.6667
54.0827
55.0149
54.9512
58.4000
57.3571
57.2500
56.1692
49.8107
53.0354
54.4000
55.0174

Standard
Deviation
13.7442
11.4743
3.68394
6.34014
1.33012
13.5188
16.0209
12.2665
12.3310
10.4892
16.2956
13.8344
13.0366
15.0498
15.0360
8.40099
15.1201
13.1010
16.5972
12.6749
13.4813
9.93751

Number of
respondents
68
52
15
20
13
168
108
105
70
53
51
387
67
41
25
42
20
195
243
198
110
115

H2 ANALYSES
Univariate analysis is performed to evaluate the significant difference of
EB score mean, organisational commitment and present salary. The
predicted F value is 6.659 and its p value is less than 0.05, which is
lesser than level of significance. Hence H2 is rejected
That means employee branding score has found significant difference
on organisational commitment and monthly salary drawing by the
respondents.

CONCLUSION
The results observed from the study is that the employee who found low
level commitment is found that their expectation regarding employer
branding is also low
Those who are having high level commitment found that their
expectation regarding employer branding is also high
It is concluded that organisational commitment is a key factor to retain
the employees.