International Journal of Human Resource Management and Research (IJHRMR) ISSN 2249-6874 Vol.

2, Issue 2 June 2012 120-131

ORGANIZATIONAL PERFORMANCE WITH EMPLOYEE ATTITUDE AND BEHAVIOR RESPECT TO IT INDUSTRY, BANGALORE-AN EMPIRICAL STUDY
VIMALA BIRESWARI.R.1 & LEENA JAMES2
1

TJPRC Pvt. Ltd.,

M.Phil in Management , Christ University , Bangalore , India

2

Department of Management Studies , Bangalore , India

ABSTRACT
The purpose of this paper is to study the organizational performance related to employee attitude and behavior in the IT industry. The Indian information technology (IT) industry has played a key role in putting India on the global map. Attitude is a mental position consisting of a feeling, emotion, or opinion evolved in response to an external situation. Employee attitude is the behavior pattern, manners, body language of an employee towards his/her co-workers, colleagues, sub-ordinates, boss etc. It is very much important to keep a good relation between an employee and his/her boss as well as his/her sub-ordinates and co-workers. Organizational performance provides a framework to plan, assess, and manage performance. The review on the related literature in the area of organizational performance and employee attitude and behavior of IT employees studied has provided many insights for the study. The sample consisted of 310 IT employees from various IT companies in Bangalore respectively. The sample was given representation to both male and female IT employees. Judgment Sampling has been adopted in this study. The implications of the study will help the organizations to understand the impact of organizational performance related to employee attitude and behavior and its outcome. The results suggested that the employee attitude survey is a handy tool for the goal the organization wants to use it for its performance.

KEYWORDS: Organizational performance, Employee attitude and behavior, Information Technology

Industry, Bangalore.

INTRODUCTION
The Indian information technology (IT) industry has played a key role in putting India on the global map. The IT industry, alone, has played a pivotal role in placing India on the world map as a major knowledge-based economy and outsourcing hub. The IT segment has been the second largest segment in the Indian IT sector and in growth, the second fastest. The growth of the segment for the next five years is expected to be driven by a shift in the service mix towards higher value services like business analytics, knowledge process outsourcing (KPO) including legal services, etc. India is a preferred destination for companies looking to offshore their IT and back-office functions. It also retains its low-cost advantage and is a financially attractive location when viewed in combination with the business environment it offers and the availability of skilled people. Today, Bangalore is known as the Silicon Valley of India and contributes 33% of Indian IT Exports. India's second and third largest

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software companies are head-quartered in Bangalore, as are many of the global SEI-CMM Level 5 Companies. Organizational Performance is a process which measures the implementation of the organizations strategy. It is also a management tool to plan, monitor, and measure and review performance of indicators to ensure efficiency, effectiveness and impact of service delivery by the organization. The performance of an organization is integrally linked to that of staff. It is therefore important to link organizational performance to individual performance and to manage both at the same time, but separately. Organizational performance measures can vary by industry or organization but generally include financial performance, product market performance, customer service, and societal responsibility. Organizational performance is probably the most widely used dependent variable in organizational research today yet at the same time it remains one of the most vague and loosely defined constructs. According to Katz and Kahn (1966) dryly commented that, The existence of the problem of developing satisfactory criteria of organizational performance is clear enough; its solution is much less obvious. Performance as an innate drive of an organization is so prominent, that the analysis of performance has been christened an enduring theme (March & Sutton, 1997). Nearly every study of organization makes at least some reference to the phenomenon (Yuchtman & Seashore, 1967). The attention to organizational performance may be partially explained by the findings of Ouchi and McGuires (1975) study. Their research suggested that managers feel a need to provide superiors with legitimate evidence of their management skill and that performance measures can provide the evidence they seek. There are also ongoing debates about how to measure corporate performance among corporations. Davenport and Harris, authors of Competing on Analytics (2007), suggest that organizations will increasingly use data as a competitive advantage. They argue that the frontier for using data is not just in measurement but also in identifying the most profitable customers, determining the right price, accelerating product innovation, optimizing supply chains, and identifying the true drivers of financial performance. More high-performance studies are likely to emerge in the future, partly because the business environment continues to shift and partly because the science of analysis continues to improve. Attitude is one of the most distinctive factors that make people differ from one another and allows people to be unique in their own way. Each person may possess many opposing attitudes which may tell a different story of the persons behavior at a certain time. There is lot of theory, history and interesting facts concerning attitude not only as a single concept but in relation to behavior as well. Attitudes tend to persist unless something is done to change them. They can fall anywhere along a continuum from very favorable to unfavorable. Attitudes are directed towards some object about which a person has feelings (affect) and beliefs. The attitude and behavior of the employees play a significant role in the process of development. Employees job related attitudes create an effective impact on

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organizations behavior. The competitive scenario is in need of employees who can positively react to the healthy performance for the organization. Attitude is a powerful tool which affects the behavior of an individual. The knowledge of employee attitudes can be helpful to managers in attempting to predict the employee behavior. Employee attitudes and behaviors are usually related either one way or another, so when an employee has a negative perspective of their job, or a supervisor, or the organization as a wholethen they are less likely to care about their job performance, disregard their supervisor or try to cause problems with them, or not consider anything that would benefit the company as a whole-just worry about doing just enough in their job and get paid. Employee behavior and attitude are of particular relevance with respect to customer satisfaction. In the literature is in other words often stated that a happy worker is a productive worker. Although Paauwe and Richardson (1997) recognized that employee attitude and behavior play a significant role in explaining the function of employee perceptions as a key construct in explaining the link between organizational performance and employee attitude and behavior. However, if an individual likes their job-they will take pride in doing it correctly, if they like their supervisor-they are more likely to communicate and participate with them, and if they value the organization as a whole-they tend to look for ways to improve the company as a whole, even when they don't have too. A person can have thousands of attitudes, but organizational behavior focuses on a very limited number of work-related attitudes. These work-related attitudes tap positive or negative evaluations that employees hold about aspects of their work environment. Most of the research in organization behavior has been concerned with three attitudes: job satisfaction, job involvement, and organizational commitment. In an organization, manager of todays knowledge workers often rely on job satisfaction to keep motivation and enthusiasm for the organization high performance. Organizations dont want to lose talented highly skilled workers. In addition most managers care about their employees and simply want them to feel good about their work and almost everyone prefers being around people who have positive attitudes. Attitude alone do not influence behavior but these acts with other factors in the individual influencing behavior, such as personality, perception, motivation, etc. Further, attitudes are also affected by the individual dimension as well as the objects, persons, and ideas. Attitudes have been through as serving four functions and there by influencing the behavior. These are instrumental, ego defensive, value orientation and knowledge. 1. Instrumental: Attitudes serve as a means to reach a desired goal or to avoid an undesired one. Instrumental attitude are aroused by the activation of a need or cues that are associated with the attitude object and arouse favorable or unfavorable feelings. 2. Ego-Defensive: The ego-defensive functions of attitude acknowledge the importance of psychological thought. Attitude may be acquired by facing threats in the external world or becoming aware of his own unacceptable impulses.

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3.

Value Orientation: The value-orientation function takes in to account attitudes that are held because they express a persons self-image, or by cues that engage the persons values and make them salient to him.

4.

Knowledge: The knowledge function of attitude is based on a persons need to maintain a stable, organized and meaningful structure of the world. Several studies examine the relationship between employee attitudes and performance outcomes

across the multiple worksites of a large firm. Presumably, the shared experiences that would create a common group attitude would more likely occur within individual establishments where the employees work at the same location with the same manager or supervisor. In the first of these studies, Katz, Kochan and Goreville (1983) study General Motors plants during the 1970s and find that managers and supervisors assessments of the state of labor- management relations in the plants were positively correlated with the plants product quality and labor efficiency. Bartel (2004) studies 160 branches of a Canadian bank and finds that branch performance is higher when employees are satisfied with performance evaluation procedures, feedback, and recognition at the branch; further, improvements in these attitudes within a branch predict improvements in performance. The research strategy is to study the effects of a group attitude at individual workplaces within a firm that operates multiple work sites to produce similar services and products under the same company-wide human resource policies. In spite of the arguments for expecting a stronger relationship between attitudes and performance on a group level than on an individual level (especially in service organizations), there has been relatively little empirical work that systematically measures the satisfaction performance relationship at the level of the work unit.

LITERATURE REVIEW
Organizational Performance Hai Li, Baiyin Yang, Mian Zhang (2011) investigated 362 firms on the two functions of organizational culture link to organizational performance, centering on human resource capability as a mediator and environmental uncertainty as a moderator. McKenzie, K. (2010) examined the relationship between HRM, organizational culture and firm performance. It has primarily explored the relationship and different views between HRM and culture. Liao and Rupp (2005) studied the impact of justice climate and justice orientation on work outcomes (citizenship, satisfaction, and commitment) on a sample of 231 employees from 44 work groups representing nine organizations spanning seven different industries. Fulmer B, Gerhard B, Scott K. (2003) has done a study on the relationship between being a Great Place to Work and firm performance. Furthermore, Boselie, Dietz and Boon (2005), by analysing the literature over the last years on the HRM-performance relationship, reported wide disparities in the treatment of the components emphasizing the black box stage between HRM and performance. They indicated that the theoretical frameworks which dominated the field were the contingent framework (i.e., HRM influences performance in relation to contingent factors such as business strategies) (Schuler & Jackson, 1987), the resource-based view (i.e., HRM influences

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performance according to the human and social capital held by the organisation) (Barney, 1991) and the AMO theory (i.e., HRM influences performance in relation to employees Ability, Motivation and Opportunity to participate) (Appelbaum, Bailey, Berg, & Kalleberg, 2000). Delaney and Huselid (1996) found that some of the more progressive human resource management strategies, 5 including careful selection at appointment, training and incentive compensation, have a positive effect on the organizational performance.

EMPLOYEE ATTITUDE AND BEHAVIOR

Harjeet Kaur (2011) analyzed an empirical research addressing employee attitude and behavior as it relates to the implementation of an EMS/ISO14001 is currently lack. The research extends a previous research by proposing and testing an integrative research model which links several HR factors to employee attitudes. Shah.N and Irani.Z (2010) analyzed on employee workplace and demographic predictors to know the employee attitudes and behaviors regarding organizational change. 556 surveys out of 1000 were returned from full time academics working in public sector universities of Pakistan. Rosenthal (1997) found a positive effect between an attitude-related construct, called affective customer orientation of salespeople, and salespeoples customer-oriented behavior. However, they did not provide evidence for discriminant validity between these dimensions. Tornow and Wiley (1991) investigated the relationship between employee and customer satisfaction and organizational performance for a computer services organization having 30 districts. Surveys of 667 employees and 633 customers of these districts were obtained and compared with district performance indices. Tornow and Wiley found significant relationships between key performance indices ("doing things right the first time" and contract retention) and both customer and employee satisfaction (r's = 0.32 to .46). Wiley (1991), in a study of 200 retail stores found strong relationships between employee attitudes about working conditions, work obstacles, and he evaluated the relationship between customer and employee satisfaction and two measures of financial performance (net sales and net income), he found only weak and negative correlations. Fishbein and Ajzen (1977) reported that attitudes typically predicted multiple act criteria better than single act criteria. They generalized that attitudes and behaviors must be compatible to ensure a strong relationship. Many studies have provided cross sectional evidence reporting positive associations between different aspects of employee attitudes and organizational performance, for example, between employees' perceptions of climate and customer satisfaction and loyalty ( Schneider and Bowen, 1985; Schneider, White and Paul, 1998); employees' perceptions of the strength of company culture and financial performance (Kotter and Heskett, 1992); employee satisfaction and customer satisfaction (Heskett, Sasserand and Schlesinger, 1997); and between employee satisfaction-engagement and business unit outcomes such as productivity, profit and customer satisfaction (Harter, K. Schmidt, F. L. and Hayes, T. L. 2002). A recent study, conducted by Schneider, B., Hanges, P. J., Smith, D. B., & Salvaggio, A. N. (2003), based on employee attitude data collected from 35 companies using multiple time periods over eight years, showed that two of their attitude measuresoverall job satisfaction and satisfaction with security were caused by financial performance (i.e. return on assets and earnings per share) rather than

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the reverse. The ability of attitudes and behavior to predict organizational performance and employee satisfaction increased over time. The associations between attitude and performance have been examined by researchers in fields such as organizational psychology, strategic human resources management and organizational theory. Historically, numerous studies in the organizational psychology-performance literature have examined the link between employee attitudes (job satisfaction, commitment, and employee engagement) and individual-level performance (Iaffaldano & Muchinsky, 1985; Cook, J. D., Hepworth, S. J., Wall, T. D., & Warr, P. B. (1981) Judge, T. A., Thoresen, C. J., Bono, J. E., & Patton, G. K. (2001)).

OBJECTIVES OF THE STUDY

The aim of this research is to explore the relationship between employee attitude and behavior towards organizational performance in the information technology industry. The present study attempts, 1. To study the relation between employee attitude and behavior towards organizational performance. 2. 3. To study the relation between employee attitude and behavior with outcome measures. To find out the difference between gender with employee attitude and behavior

HYPOTHESES
Ho1: There is no significant relationship between organizational performance with employee attitudes and behavior Ho2: The employee attitudes and behavior is not related with discretion effort and loyalty Ho3: There is no significant difference between gender with employee attitudes and behavior

DATA COLLECTION
Out of 150 companies 60 companies were approached and 38 companies responses for the analysis. The responds rate is more than 15% from the population. The questionnaire was administered by 400 respondents. 310 responds were found valuable for the analysis. Judgment Sampling has been adopted in this study.

STATISTICAL ANALYSIS
The data collected from different sources were computed, classified, tabulated, analyzed and interpreted. The following statistical techniques were used to analyze and interpret the tabulated data like mean percentage, frequency, standard deviation, Pearson correlation analysis, and one-way ANOVA. Findings

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Table 1.1 Indicating the Pearsons Correlation for Organizational Performance With Employee Attitude Score Items Profitability Growth in sales Reputation 1% sig level, 5% sig, ns=non sig. To prove the above hypothesis, correlation is employed; the purpose of correlation is to establish the relation between organizational performance and employee attitude and behavior regards profitability over past 3 years, growth in sales over past three years and reputation.The relation between employee attitude and profitability is 0.298, sales related with employee attitude and behavior is 0.160, and reputation with employee attitude and behavior is 0.254. Since all the sig values is less than 0.05. Hence reject null hypothesis and accept alternate hypothesis. It is clearly indicating that there is statistically relation between organizational performance and employee attitude and behavior. Table 1.2. Indicating the Overall Pearsons Correlation for Employee Attitude and Behavior With Behavioral Outcome Items Behavioral outcome Discretionary Effort & Loyalty Intention to quit & job stress 1% sig level, 5% sig, ns=non sig. In this study, the hypothesis posits that employee attitudes is positively associated with discretion effort and loyalty 0.141, and negatively associated with intention to quit job and job stress, 0.51. The overall behavior outcome to employee attitude and behavior is 0.148. The data used for the measures of employee attitudes and outcomes were both drawn from employee opinion survey, employee attitudes therefore generally positively associated with Discretion effort and Loyalty, and negatively associated with Intention to quit and Job stress. Employee Attitude Score 0.148** 0.141** 0.051 (NS) Employee Attitude Score 0.298** 0.160** 0.254**

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Table 1.3 Indicating ANOVA for the overall employee attitude and gender Sum squares Employee and behavior attitude Between groups Within groups Total 0.627 32.214 32.840 1.00 308.00 309.00 of df Mean square 0.63 0.10 5.99 0.01 F Sig

Gender is one kind of variable which reciprocals the employee attitude and behavior of the employees the IT industry. There is a significant difference between Gender and the Employee attitudes and behavior.

IMPLICATIONS OF THE STUDY

The concept of organizational performance, employee attitude and behavior, outcome measures have been of interests to IT industry to discover the relationships. The study provides further evidence that organizational performance is related to employee attitude and behavior, which is related to employee satisfaction and sequentially to the intent to remain in the company. Organizations should require well-designed, consistent and suitable policies for building its employees with the necessary ability, adequate motivation, training and development, and opportunity to engage in discretionary behavior. the results from March and Sutton (1997) predict, the relationship between employee attitudes and organizational performance is complex, and it is too simplistic to assume that satisfaction attitudes lead to organizational performancesome do and some do not, and some employee attitudes apparently are the result of performance. Obviously, the strength of the research reported here is the longitudinal nature of both the employee attitude data and the organizational performance data.

CONCLUSIONS
A happy worker is a productive worker. Although the overwhelming majority of the prior research on this relationship has explored it at the individual level of analysis, the present study is consistent with a small but growing literature that examines this relationship at the organizational level of analysis. The hypothesis that proposes a positive relation between organizational performance and employee attitudes and behavior is partially supported. The organizational performance measure is positively and significantly related to employees attitude and behavior. A possible explanation for the positive associations found in this study in relation between employee attitude and profitability is 0.298, sales related with employee attitude and behavior is 0.160, and reputation with employee attitude and behavior is 0.254. Second, there was a significant relation were found in the analyses of the employee attitudes and behavior with outcome measures. Employee attitudes and behavior is positively related with discretion effort and loyalty 0.141. The overall outcome measure to employee attitude and behavior is 0.148. Third there is a significant difference between Gender and the Employee attitudes and behavior.

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Within this context, it evidence here that the organizational performance may influence employee attitude and employee attitudes may determine how employees behave. The small business context may provide a unique setting for addressing the causality issue because employer- employee relationships in small firms have been characterized as being informal, using direct communication, and having close management-employee working relationships. This implies that employees in small firms may have better knowledge about firms actual performances than employees in larger organizations.

SUGGESTIONS FOR FURTHER RESEARCH

The study has made a contribution to examining these associations in the small scale business context. Within the context, the evidence reported here suggests that both organizational performance and employee attitude and behavior may determine how employees behave. The small business context may provide a unique setting for addressing the causality issue because employment relationships in Small firms have been characterized as being informal, using direct communication, and having close management-employee working relationships (Bacon et al., 1996; Kotey and Slade, 2005). This implies that employees in small scale firms may have better knowledge about firms actual performances than employees in large organizations. Future research should, where possible, incorporate both self-reported data and objective financial data in order to make the measure of organizational performance more comprehensive and reliable. And also it is suggested to conceptualize and test likely causal as well as reciprocal relationships by including more potential variables and mediators that may play a role in the associations, and by using longitudinal research in different organizational context.

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