Study of Predictors of Organizational Effectiveness Among Private and Public Sector IT Companies

Study of Predictors of Organizational Effectiveness Among Private and Public Sector IT Companies

Reetu, Anshu Yadav, Kulbir Singh
DOI: 10.4018/IJHCITP.300315
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Abstract

Human relations experts have shown tremendous interest in determining the variables that enhance workers' satisfaction and their loyalty to organisation because only committed and qualified personnel can facilitate the organization to attain statures of effectiveness. The present research is performed to study job satisfaction, organisational commitment, and climate as predictors of organisational effectiveness wherein job commitment is studied as mediator in this relationship. Using structured questionnaires on seven-point Likert scale, data were obtained from 581 respondents using convenient sampling method from IT sector. Results indicated that both job satisfaction as well as organisational climate is positively associated with effectiveness. The association between job satisfaction and effectiveness is completely mediated by commitment and organizational climate and effectiveness. This research has implications for decision makers in the IT sector for attaining higher effectiveness and issues related to employee job satisfaction and favourable climate may also be addressed.
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1. Introduction

The study of organizational effectiveness in the field of management has not only been of paramount importance, but complex as well. Traditionally it had been mainly viewed in terms of productivity but organizational effectiveness simply means how well an organization is in achieving its goals. Effectiveness is related to organizational capability to access and utilize assets in a well-organized manner and to achieve organizational goals. Like many others, McCann (2004) related organizational effectiveness with its strategies and core capabilities, but a few researchers such as Barney (1991) and Chuang et al., (2015) related it with human resources which is the most important resource. All the organizational resources contribute significantly towards attainment of its goals and human resource is one of the most noteworthy of those resources (Gupta & Raman 2021). That is why to enhance organizational effectiveness human resource plays a significant role (Eyupoglu & Tashtoush, 2020). So, human resources skills need to be developed, along with providing job security, favourable climate and empowerment (DiBella et al., 2019; Kim & Lu, 2019).

Organizational effectiveness has been previously studied in context of various sectors such as banking (Das, 2020), hospitality (Yang, 2015), sports (Wolfe et al., 2002), tourism (Tomassini & Baggio, 2021) but IT sector is considerably different from others (Toskin & McCarthy, 2021) so the research aims to study organizational effectiveness about IT sector professionals. As per the report of Invest India this is most emerging sector and more than 4 million personnel are directly employed in this sector. Amid the lockdown, this sector adopted work from home at the earliest and also attracted investment of over $396 mn in 2020. This industry is the largest employer within the private sector in India that means public companies are lesser than private. Both public and private sector IT companies are different in terms of skills required, work pressure, working environment, flexibility, nature and extent of work (Khurana & Misra 2021).

Effectiveness of organization can be predicted with the level of employee’s commitment. Committed employee submits towards organizational goals and takes extra care for assets of the organization. Thus, organization and management want to find out the ways and measures to boost the commitment of the employees to enhance organizational effectiveness (Arnett et al., 2009). Employees exert more efforts when they are committed towards the organization and at the same time wish to maintain membership for the long term. Commitment not only binds employees for continuing their membership with the company (Mowday et al., 2013), but also gets a fulfilling sense to be a member of the organization, as well as obey guidelines, rules principles, standards, and code of the organization. So, another related variable is job satisfaction which implies the overall feeling of an individual towards his job. It is a sentiment; belief, outlook, of the employees towards the job, and several related factors. It is the fulfilling feeling a person has for his or her job. It is the outcome of an employee's experiences towards job-related factors (Kalleberg & Moody, 1994). Employee satisfaction depends on the fulfilment of desires, needs, and expectations (Mottaz, 1986). Various studies suggest that job satisfaction is positively connected with performance and success of the organization (Bakotić, 2016; Eliyana & Ma’arif, 2019)

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