The term Quality of Work Life (QWL) was initially ...ijeronline.com/documents/volumes/Vol 2 issue 6/ijer20110206ND(5).pdf · The term Quality of Work Life (QWL) was initially introduced

A STUDY ON QUALITY OF WORK LIFE AND ORGANIZATIONAL PERFORMANCE AMONG THE EMPLOYEES OF PUBLIC AND PRIVATE

BANKS IN DINDIGUL A.Sabarirajan, Assistant professor, N.Geethanjali, Assistant professor, PSNA College of

Engineering and Technology, Dindigul E-mail: [email protected]

Abstract The term Quality of Work Life (QWL) was initially introduced in the late 1960’s as a way of focusing on the effects of employment on worker health and general well being, and a way to enhance the quality of a person’s on-the-job experience. However, there are generally identified issues related to QWL like pay and stability of employment, occupational stress, alternative work schedule, recognition, participative management, grievance procedure etc. These measures will affect organizational performance in terms of human resource management. Organizations are expected to maintain high QWL in order to maintain high level organizational performance. This study is an attempt to investigate the extent to which the QWL among the employees of Public and Private Banks in Dindigul influences the performance of Banks. Keywords: Quality of Work Life, Organizational performance, Public and Private Banks, QWL Introduction Human capital is proposed as one of the key resources on which companies build their competitive advantage (Becker and Gerhart, 1996; Boxall, 1996; Tyson, 1995). Since the beginning of the 1980s, a vast literature has been developed calling for a more strategic role for human resources (Guest, 1987). The increasing interest in human resources is due to the assumption that employees and the way they are managed is critical to the success of organization and can be a source of sustainable competitive advantage. In many ways, quality of work life represents a blending of the very real concern for human values in today’s society with an awareness that all individual devote the greater part of their mature lives to work, expending time, energy , physical and mental resources to this endeavor (Subba rao, Neelima Alfred,2003). Employee satisfaction and the quality of work life directly affects the company’s ability to properly save its customers, and if it is not measured, it cannot be effective. The QWL Measurement will help to inflict an organizational change, which is most appropriate for the service organizations such as a bank. The need to initiate and change will place increasing emphasis on

management leadership skills ( Rajesh Bagga, Garima Arora, Sanjeev Arora,2008). Quality of work life Quality of work life (QWL) and employee job satisfaction are increasingly being identified as progressive indicators related to the function and sustainability of business organizations. The rising complexity of the competitive business world and the cumbersome process of implementing effective social laws make ethics a suggested strategic factor in protecting companies from unwanted disasters (Beauchamp & Bowie, 2004; Carroll & Buchholtz, 2006; Ferrell, Fraedrich, & Ferrell, 2008). In parallel to the importance of ethics; QWL and job-related outcomes such as job satisfaction or organizational commitment have been issues associated with human resource (HR) and organizational development (OD) since the beginning of 1960s (Cummings & Worley, 2005; Leopold, 2005). Writings and research works in management, HR, and OD often link QWL and job-related outcomes to ethics, productivity, corporate social responsibility, or organizational performance (Cascio, 1998; Cummings & Worley, 2005; Dess, Lumpkin, & Eisner,

A.Sabarirajan, et.al., Int. J. Eco. Res., 2011 2(6), 38 - 45 ISSN: 2229-6158

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2007; Lau & May, 1998; Leopold, 2005; Walker, 1992; Wheelan & Hunger, 2006; Yorks, 2005). Brenner (1992) suggested the explicit parts to be a code of ethics, policy manuals, employee training programs/materials, ethics seminars, management speeches, internal control systems, and ethics staff. (Walton, R.E.,1975.) proposed eight major conceptual categories relating to QWL as (1) adequate and fair compensation, (2) safe and healthy working conditions, (3) immediate opportunity to use and develop human capacities, (4) opportunity for continued growth and security, (5) social integration in the work organization, (6) constitutionalism in the work organization, (7) work and total life space and (8) social relevance of work life. Several published works have addressed the constructs that make up the QWL domain and key elements of QWL programs, Others such as (Pelsma et al.) and (Hart, P.M., 1994.) found that psychological distress and morale contributed equally to teachers’ QWL. They determined that in the work climate of an occupation, QWL can be assessed by combining the amount and the degree of stress and the degree of satisfaction experienced by the individual within his/her occupational role. (Winter, R., 2000.) Viewed QWL for academicians as an attitudinal response to the prevailing work environment and posited five work environment domains that include role stress, job characteristics, and supervisory, structural and sectoral characteristics to directly and indirectly shape academicians’ experiences, attitudes and behavior. Quality of work life (QWL) is a philosophy, a set of principles, which holds that people are the most important resource in the organization as they are trustworthy, responsible and capable of making valuable contribution and they should be treated with dignity and respect (Straw & Heckscher 1984). QWL encompasses mode of wages

payment, working conditions, working time, health hazards issue, financial and non-financial benefits and management behavior towards employees (Islam & Siengthai 2009). According to Gadon (1984), QWL programs have two objectives: (a) to enhance productivity and (b) to increase the satisfaction of employees. Thus QWL provides healthier, satisfied and productive employees, which in turn provides efficient and profitable organization (Sadique 2003). Quality of work life in Banks The rapid movement of the banking industry toward increased automation in the 1970s may be an example of this race to see which institutions could handle activities quickest. Later, banks turned to quality of work life programs, and employee involvement teams eventually came into their own in the 1980s. During a changing and intensely competitive era, remembering this ancient contest can be instructive as we look for new ways to solve old problems in the 1990s. Due to bank’s wide spectrum of exposure across industries, their performance is considered as a proxy for the economy as a whole. Unfortunately for India, the banking sector has historically remained under the impact of non-competitiveness, poor technology integration, high NPAs and grossly underproductive manpower. Banking sector in India has a wide mix, comprising of joint sector, nationalized sector, specialized corporate financial institutions, co-operative sector and foreign sector (Rajesh Bagga, Garima Arora, Sanjeev Arora 2008). Banks want both bottom–line and longer–term improvements that more clearly link productivity to enhanced competitive posture through better service quality. Experienced observations, dating back to the early experiments at the Hawthorne Western Electric plant, have shown that most quality and some quality of output gains are linked



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closely with changes in the quality of work life for employees, as determined by how people feel about their role in the organization (Herff L. Moore, William T. Bounds,1993). Quality of work life and Employee performance Quality of work life and Employee performance often go hand-in-hand. For one thing, most conditions that contribute to performance like equitable salaries, financial incentives and effective employee selection will also contribute to the QWL. In fact, every personal related action affects the QWL in some way (Subba Rao, Neelima Alfred,2003). A fast changing and more competitive work environment means that organizations will have to develop people and instill commitment and not merely obedience. This will be achieved through such approaches as: personal development programs, increased teamwork and cooperation across all levels of the organization including labor/management partnership councils, and the commitment to doing a good job and quality performance. Skilled based pay and a shared ownership of responsibilities might be two kinds of strategy that will assist in improving performance on the job. There are rising literature that tries to seek the association between quality of work life and work performance. Among the main focus included in this literature is the remuneration aspect. Remuneration aspects such as salary, salary increment, bonuses, allowances, pension and medical benefits are among the best examples that can motivate employee to give their best for their employer. A research entitled “Quality Of Work Life: Implications Of Career Dimensions” (2006) by Raduan Che Rose, LooSee Beh, Jegak Uli and Khairuddin Idris, supports the proposition that the degree of satisfaction in

QWL is related to the degree to which the individual believes his or her success criteria have been met. The studies by Okpara (2004); Oshagbemi (2000) and Sloane and Williams (1996) who highlighted differences in remuneration aspects received by the employee will suddenly affect their work satisfaction and work performance. Besides the remuneration aspect, it can be noted in the literature, interpersonal communication aspects frequently are raised as one of the main factors contributing to work performance. Porter and Lawler (1968) identified three types of performance. First is concerning to productivity. Second, concerning ratings of individuals by someone other than the person whose performance is being considered. Self-appraisal and self-ratings become the third type of performance. (Mohan and Ashok,2011) Thus, job performance measures the level of achievement of business and social objectives and responsibilities from the perspective of the judging party (Hersey and Blanchard, 1993). The efforts of improving the QWL and humanizing the work force do not show a consistent relationship to productivity. Empirical evidence about the Bolivar experiment suggests that QWL programmes can lead to improved productivity. The majority of the evidence, points towards increased morale and satisfaction for employees whose work has been “humanized”(Sharma.S.D, 1984). QWL programmes result in highly self motivated and commited employees. Most approaches to improve the quality of work life have ramifications throughout the organization and possibly outside the organization as well. Excellent prticipative management, team-work and time management are the most apparent outcomes. Evidence indicates that if QWL programmes are conducted properly, they can yield a substantial return on investment by increasing productivity,



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decreasing costs and preventing accidents and wastage. As indicated earlier, positive aspects of QWL results in organization’s excellence in human resource activities.(Subba Rao, Neelima Alfred, 2003). Research objectives • To examine the relationship between

quality of work life and satisfaction level of employees in banks of Dindigul.

• To examine the relationship between QWL and organizational performance.

Research Methodology The study mainly based on primary data. In that a detailed review of literature is being done. From the review of literature the initial research started by clarifying and defining the nature of problem related to quality of work life. Further the descriptive

research is designed to describe the characteristics of organizations with regard to QWL. Although the population for the study consists of all the employees of public and private sector banks in Dindigul City only yet the results could be generalized to the banking sector as a whole. The sample chosen is based on convenience sampling method. Respondents were selected based on their willingness to provide relevant information. The responses of the respondents to the structured questionnaire were collected in a lickert scale are numbered from 1 to 5. The data collected through questionnaire from the employees of various banks are being analyzed and the results of the data analysis are shown through the following tables

Table: 1 - Relationship between perception of QWL among the employees of Private Banks (QWL1) and Public Banks (QWL2) in Dindigul city

QWL Components Correlation coefficient

‘r’ with QWL1

Correlation coefficient

‘r’ with QWL2

R1 R2 Difference of Rank D (R1-R2)

D2

Acknowledgment 0.62 0.73 19 17 2 4 Challenge 0.73 0.83 14 8 6 36

Dialogue 0.23 0.21 21 21 0 0

Direction 0.75 0.80 11 10 1 1

Equality 0.85 0.90 6 4 2 4

Fit 0.25 0.27 20 20 0 0

Flexibility 0.75 0.85 11 6 5 25

Informality 0.70 0.74 17 15 2 4

Invention 0.73 0.86 14 5 9 81

Oneness 0.71 0.75 16 13 3 9

Ownership 0.78 0.73 9 17 -8 64

Personal development 0.95 0.92 1 2 -1 1



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Purpose 0.85 0.80 6 10 -4 16

Relationship building 0.90 0.83 3 7 -4 16

Relevance 0.85 0.80 6 10 -4 16

Respect 0.90 0.95 3 1 2 4

Self identity 0.90 0.91 3 3 0 0

Service 0.75 0.70 11 19 -8 64

Support 0.69 0.75 18 13 5 25

Validation 0.73 0.73 14 17 -3 9

Worth 0.80 0.75 8 13 -5 25

Spearman’s rank correlation coefficient ρ = 1 – 6 ∑ D2 __________ N (N 2 – 1) ∑ D2 = 404, and N = 21, By substituting the values in the above equation, the value of ρ = 0.7377

df = N-2 that is 19 The critical ratio of ρ at 0.5 level, df 19 is 0.388 The calculated value of ρ ( 0.7377 ) > critical ratio of ρ (0.388), Hence there is some significant relationship between the perceived QWL of the employees of private sector banks and perceived QWL of the employees of public sector banks.

Table: II – Correlation between the perceived QWL and perceived performance among the employees of public sector banks in Dindigul city

Perceived QWL among Public Sector Bank employees

Perceived performance in Public Sector

Banks Perceived QWL among Public Sector Bank employees

Pearson Correlation 1 .938(**) Sig. (2-tailed) .000 N 15 15

Perceived performance in Public Sector Banks

Pearson Correlation .938(**) 1 Sig. (2-tailed) .000 N 15 15

** Correlation is significant at the 0.01 level (2-tailed). The correlation coefficient ‘r’ value is 0.938, perfect positive correlation, hence there is a significant relationship between the perceived QWL and perceived performance

among the employees of public sector banks in Dindigul city.



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Table: III – Correlation between the perceived QWL and perceived performance among the employees of private sector banks in Dindigul city

Perceived QWL among Private Sector Bank employees

Perceived performance in Private Sector

Banks Perceived QWL among Private Sector Bank employees

Pearson Correlation 1 .909(**) Sig. (2-tailed) .000 N 15 15

Perceived performance in Private Sector Banks

Pearson Correlation .909(**) 1 Sig. (2-tailed) .000 N 15 15

** Correlation is significant at the 0.01 level (2-tailed). The correlation coefficient ‘r’ value is 0.909, perfect positive correlation, hence there is a significant relationship between the perceived QWL and perceived performance among the employees of private sector banks in Dindigul city. Discussion The objective of the analysis was to examine the existence, feature and extent of the linear relationship exists between perceived QWL and the components of QWL. From the literature review 21 components of QWL were identified. The components were correlated with the perceived QWL of both public and private sector banks. The comparisons of correlation co efficient of both category shows that the existence of significant relationship between the QWL among the employees of both sectors. Table-I shows the Relationship between perception of QWL among the employees of Private Banks (QWL1) and Public Banks (QWL2) in Dindigul city. Table-II and Table- III shows the Correlation between the perceived QWL and perceived performance among the employees of public sector banks and Correlation between the perceived QWL

and perceived performance among the employees of private sector banks in Dindigul city, it shows perfect positive relationship between QWL and performance of employees in both the sectors. Conclusion Human behavior is unpredictable and complex in nature, and it is needed to be studied in any organization for effective utilization and functioning of human resources. Organizational Excellence has higher impact on the level of QWL in an organization. The Antecedents of QWL like job stability, climate, performance and development, promotion, welfare measures and various other factors directly affects the organizational excellence. The performance of organization can be improved only when the human resources are satisfied with the higher quality of working life. The simple method of enhancing QWL may be by improving the existing job environment. References Becker, B. and Gerhart, B. (1996), .The

Impact of Human Resource Management on Organizational Performance:Progress



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The term Quality of Work Life (QWL) was initially ...ijeronline.com/documents/volumes/Vol 2 issue 6/ijer20110206ND(5).pdf · The term Quality of Work Life (QWL) was initially introduced