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References Akthar, Ding, D.Z and Gloria L.G. 2008. Strategic Human Resource Management Practices and perfonnance in Chinese Enterprises Human Resource Management. Vol. 47. 1:15-32. http://www.informaworld.com/index/3X183LCJRKKQU90W.pdf [Accessed: Feb.03, 2009]. Andersen, T.. Eriksen, B., Lemmergaard, J. and Povlsen. L. (2005): Is strategic human resource management strategic'?: The fit between strategy and strategic human resource management. Workshop on Organizational Design. Arthur, J.B. 1994. Effects of Human Resource Systems on Manufacturing Performance and Turnover. 1/ze Academy of Management Journal, Vol. 37, No.3: 670-687 http:i/www.jstor.org/stable/256705 [Accessed: Feb.03, 2009]. Bailey, T. 1993. Discretionary effort and the organization of work: Employee participation and work ref()rn1 since Hawthorne. Working paper, Columbia University, 1\ew York. Baron. J. N. and D. M. Kreps, I 999, Strategic human resource management: Frameworks fpr general managers, New York: John Wiley and Sons, Inc. Bartel, A. P. I 994. Productivity gains from the implementation of employee training programs. Industrial Relations, 33: 411-425. Barton, Dorothy Leonard. ( 1995). Wellsprings of knowledge: Building and sustaining the source of innovation. Boston: Harvard Business School Press. Becker, B. E., and Gerhart, B. I 996. The impact of human resource management on organizational performance: Progress and Prospects. Academy o{Management Journal, 779-801. Becker, B. E., Huselid, M.A., Pickus, P. S., and Spratt, M. F. 1997. HR as a source of 'd1archolder value: Research and recommendations. Human Resource Management, I), 39-47. 98
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References

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98

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104

Appendix A- Participation Request Letter

K. L J anani Rasanjali

MBA in Infmmation Technology

University ofMoratuwa

Sri Lanka

Dear Professionals

Request to Participate in Research - Survey/Interview

I am a MBA student of University of Moratuwa. My research is Impact of Systems of

~tratcgic Human Resource Management Practices on Perceptual Measures of Financial

Pcrfonnances. This study is based on the medium and large scale software development

companies in Sri Lanka. Many researches show that sustainable competitive advantage

\\ill come in future via management of human resources aligning with finn's business

:-;trategy. Therefore I am highly interest to research on what kind of strategic HR

Management practices are adopted by the software finns and the impact it has on

financial performances.

Please be assured that your responses will be kept strictly confidential. Individual

participants and the company will not be identified in the analysis as only aggregated

results will be analyzed. Your honest and valuable responds will be highly appreciated

'md which will indeed result in the success of this research.

• IF you are a General Manager/Financial Analyst I Financial Manager I Auditor/

Accountant etc- (any employee aware about financial perfonnances of the

organization) please fill FinanciaiPerformacesSurvey.doc

• IF you are a HR Manager/ Project Manager or any employee who is engaged in

managing IT workers please fill Survey-ForManagers.doc

• If you arc a Non managerial professional Please fill

EmployeeSa tisfactionS urvey .doc

\~

105

These surveys can also be downloaded from following link

h!lp: \\\\\\.box. net :-,harcQ_ \lj~J]~J_0_2y_r

Please do email your replies/feedbacks to rasanjah.livanae_cl{/ ll,Jlwil.com or contact me

on mobile 0773 79663 7. This research has been approved by university of Moratuwa. My

academic advisors for the research are Mrs. Vishaka Nanayakkara (Head Computer

Science and Engineering Department University of Moratuwa and Mr. Ishan

Danthanarayana, Senior Director HR, Global Head - TandD and the Global HR

Processing Centre Virtusa Corp. I have attatched the letter of pennission recieved by the

university to distribute this survey.

Thank you for your participation!

Best Regards

Janani Rasanjali

106

1 .'i

~ ~

~

LOI

;,\

; ;·

I

{p'· · ,,,~,fu~ t

Appendix B- Survey 1 -Role of HR Manager

This survey to be mainly filled by CEOs, HR professionals or Project managers (Professional who are aware about organizational Business strategy and and engage in People Management Practices)

Section 1 - General Information

1 . Your designation (optional) I Number of Employees in the company --- Please Select ---3. Do you have a separate HR Department --- Please Select ---

Section 2 -Strategic Role of HR/Project Managers Strategic Roles of HR involves

1. business partner - working alongside business colleagues to align HR and

business strategy and manage human resource strategically

' Innovator- Developing integrated HR strategies

3. Change agent -The management and transfonnation of change

4. Implementer- getting strategies into action

Please specify the nature of your role in tenns of Human Resource Management based on above description on strategic role on HR manager. ---Please Select-----

Please answer below questions regarding the strategic role of HRM Section 3 (a)

Are you involved organizational decision actively

! Strongly disagree

111 the D making

Does the company consider " 0 HR/Project mangers input of HR !

issues are very essential in such ! i

meetings where decisions are taken , for the whole organization?

Do you opportunity and freedom to 0 formulate, implement HR practices to align the business strategy(s) of your company

Neutra Some 1 what

agree e

0 D D

0 ,0 D

D o···· o

Strongly agree

D

D

D

108

HR managers' uses such HR matrixes which measure the value creation for the business outcomes e.g. balance score card extensively rather than traditional HR measures which measure HR operational dticiency.

D

Considering all the answers above, t D In addition to the administrative work, H R plays a strategic role (one ; \vho create value for business outcomes) in HRM functions

j

D

D

D '0 D

D D D

Section 3 (b)- HR manager believes on Strategic Human Resource Management Please answer the following question even if the HR management does not play a

strategic role at current context.

Do you believe HR Practices can : D impacting the client delight (e.g. better client relationships)

1

Do you believe HR Practices can I 0 impacting the employee delight

HR practices are can add values for D business outcomes ( e.g. creating next level of talent required by organization)

Can the results be seen in short and [ 0 medium term in cmTent context? i

I

Do you beii~~~ HRM ~h(;~lclplaya ro strategic role (even if it's not played • significantly at the moment) to add value for business outcomes?

D

0

D ---

D

o·-

What prevents HR play a strategic role? ---Please Select-----

0 10··· D

0 0 D

D D ·o

D 0

D 0

7. Ditticulties in convincing senior management that HR need to play strategic role 8. HR is still not ready to expand from its traditional role 9. Lack of resources - e.g. human resources, budget restrictions to implement HR

strategic plans I 0. Lack of proper HR, Business, Financial and Technological competencies to shift

for a strategic role 11. Lack of proper tools and measures to evaluate HR effectiveness towards business

outcomes 12. The attitude HR functions are towards cost savings, rather

109

than HR functions towards achieves business return on investment. Other Please specify

Section 4: Company Business strategy

(I) The business strategy used in your company- Please underline. --- Please Select ---Other Please specify

Section 5: Strategic HR management practices

Please rank the first seven HR Management practice according to its significance and

criticalness on how much it contribute for business outcomes, financial perfonnances of

your company

E.g. (a) Recruitment and Selection- 1 (most critical HR Practice to impact in business outcomes)

(b) Teamwork - 2

-

H R Management practice

(a) Recruitment and Selection (b) Training and development

'-- ----- - ~

(c) Team working -- ------------- -- - ---

(d) Perfonnance Management and appraisal (e) Reward and pay satisfaction (f) Job design

(g) Job security

---

(h)Communication

(i) Employee involvement --- ----- --- --w Work life balance

---- -- ---- __ '" ___ _ (k) Career development and opportunity

--

Rank

End of the Survey - Please save your changes Thank you for you participation

II 0

Appendix C -Reliability and Factor Analysis of Survey 1

Reliability Statistics

Cronbach's Alpha N of Items

.896 10

Factor analysis- Section 3 (a)

Communalities

Initial Extraction Question 1 1.000 .769

Question 2 1.000 .698

Question 3 1.000 .717

Question 4 1.000 .718

Question 5 1.000 .855

Extraction Method: Principal Component Analysis.

Component Matrix (a)

Componen t

1 Question 1 .877 Question 2 .835 Question 3 .847 Question 4 .847 Question 5 .925

Extraction Method: Principal Component Analysis. a 1 components extracted.

Factor analysis - Section 3 (b)

Communalities

Initial Extraction Question 1 1.000 .485

Question 2 1.000 .686

Question 3 1.000 .844

Question 4 1.000 .688

Question 5 1.000 .844

Extraction Method: Principal Component Analysis.

I I I

Component Matri>C

Com pone nt

1 Question 1 .696

Question 2 .828

Question 3 .918

Question 4 .830

Question 5 .918

Extraction Method: Principal Component Analysis.

a. 1 components extracted.

112

Appendix D - Descriptive Statistics of Survey 1

Frequency Tables- Section 5: Strategic HR management practices

Recruitment & selection

Cumulative Frequency Percent Valid Percent Percent

Valid importance level1 19 59.4 59.4 59.4

importance level 2 10 31.3 31.3 90.6

importance level 3 3 9.4 9.4 100.0

Total 32 100.0 100.0

Training & Development

Cumulative Frequency Percent Valid Percent Percent

Valid importance level 2 14 43.8 43.8 43.8

importance level1 12 37.5 37.5 81.3

importance level 3 6 18.8 18.8 100.0

Total 32 100.0 100.0

Team Work

Cumulative Frequency Percent Valid Percent Percent

Valid importance level 5 14 43.8 43.8 43.8

importance level 6 14 43.8 43.8 87.5

Not withing the rankings 4 12.5 12.5 100.0

Total 32 100.0 100.0

Performance Management and appraisal

Cumulative Frequency Percent Valid Percent Percent

Valid importance level 4 16 50.0 50.0 50.0

importance level 2 5 15.6 15.6 65.6

importance level 3 4 12.5 12.5 78.1

Not withing the rankings 4 12.5 12.5 90.6

importance level 5 3 9.4 9.4 100.0

Total 32 100.0 100.0

Reward and pay satisfaction

Cumulative : Frequency Percent Valid Percent Percent

Valid importance level 3 16 50.0 50.0 50.0

importance level 4 8 25.0 25.0 75.0

Not withing the rankings 4 12.5 12.5 87.5

importance level 2 3 9.4 9.4 96.9

importance level1 1 3.1 3.1 100.0

Total 32 100.0 100.0

I 13

Job design

Cumulative Frequency Percent Valid Percent Percent

Valid Not withing the rankings 29 90.6 90.6 90.6

importance level 3 3 9.4 9.4 100.0

Total 32 100.0 100.0

Job security

Cumulative Frequency Percent Valid Percent Percent

Valid Not withing the rankings 24 75.0 75.0 75.0

importance level 7 6 18.8 18.8 93.8

importance level 4 1 3.1 3.1 96.9

importance level 5 1 3.1 3.1 100.0

Total 32 100.0 100.0

Communication

Cumulative Frequency Percent Valid Percent Percent

Valid Not withing the rankings 13 40.6 40.6 40.6

importance level 6 8 25.0 25.0 65.6

importance level 5 7 21.9 21.9 87.5

importance level 7 4 12.5 12.5 100.0

Total 32 100.0 100.0

Career Development

Cumulative Frequency Percent Valid Percent Percent

Valid Not withing the rankings 26 81.3 81.3 81.3

importance level 7 4 12.5 12.5 93.8

importance level 4 2 6.3 6.3 100.0

Total 32 100.0 100.0

Work life balance

Cumulative Frequency Percent Valid Percent Percent

Valid Not withing the rankings 19 59.4 59.4 59.4

importance level 7 6 18.8 18.8 78.1

importance level 4 5 15.6 15.6 93.8

importance level 5 1 3.1 3.1 96.9

importance level 6 1 3.1 3.1 100.0

Total 32 100.0 100.0

114

...

Knowledge Management

Cumulative Frequency Percent Valid Percent Percent

Valid importance level 7 12 37.5 37.5 37.5

importance level 6 9 28.1 28.1 65.6

importance level 5 6 18.8 18.8 84.4

Not withing the rankings 5 15.6 15.6 100.0

Total 32 100.0 100.0 - -

Mean Values for Critical HR Practices

N I Sum Mean I

Recruitment and selection 32 . 48 11.50 I

Training and Development 32 58 1.81

Reward and pay satisfaction 32 119 . 3.72

Performance Management 32 . 133 i

I 4.16 and appraisal I

I

Team Work 32 I 186 5.81

Knowledge Management 32 • 208 6.50

Communication 32 215 6.72

Work life balance 32 225 I 7,03 I I

Job design 32 241 1 7.53

Job security 32 243 7.59

Career Development 32 244 7.63

Valid N (listwise) 32

115

Appendix E - Survey 2 - HR value Proposition for Business Outcomes

This survey to be mainly filled by HR professionals or Project managers (Professional who are engaged in People Management Practices)

a) Your Designation (optional)

h) Number of Employees in the company --- Please Select ---

c) Do you have a separate HR Department --- Please Select ---

HR Manager Competencies

d) Do the HR managers or project managers ( in the absence of HR department) have the right HR qualifications and competencies in terms of

• Personal credibility ---Please Select-----• Change Management ---Please Select-----• Knowledge in Business ---Please Select-----• Delivery in HR Basics ---Please Select-----

Section 1: HR Value Proposition from Talent Enhancing HR practices

Section 1.1: Recruitment and Selection Practices

I) Managers plan and implement strategies extensively to match talent requirements with business strategy ---Please Select-----

2) The budget variance (difference between a budgeted figure and an actual figure considering the advertising, agency fees, employee relocation, recruiter pay and benefits costs and the number of hires) is acceptable ---Please Select-----

'l Your satisfaction on the extent the Recruitment and Selection HR practices **complement (support) with other HR practices ---Please Select-----

4) Average perfonnance appraisal score of new hires (compared to last year for the same job) was good ---Please Select-----

5) Number of exceptional candidates recruited for each strategic (key) job opening ---Please Select-----

6) The turnover rate of new hires within first year is at an acceptable ---Please Select-----

7) I am satisfied about the value proposition of this HR function to the business as a whole ---Please Select-----

116

Section 1.2: Training and Development Practices

I) Current and future talent and skill requirements are strongly considered to match with business strategy when designing training programs ---Please Select-----

2) Training and development practices have impacted in increased employee effectiveness in work. E.g. noticeable customer satisfaction (reduced number of customer reported bugs in software applications etc. ---Please Select-----

3) It can be satisfied about the capacity of promotable staff created which in turn the level of skills gaps bridged in terms of business requirements. ---Please Select-----

4) Considerably higher Percentage of statf promoted on fast track after completion of required training modules ---Please Select-----

S) The budget variances for these practices are at acceptable. ---Please Select-----

6) Your satisfaction on the extent the Recruitment and Selection HR practices **complement (support) other HR practices ---Please Select-----

7) I am satisfied about the value proposition of this HR function to the business as a whole. ---Please Select-----

Section 1.3: Performance Management and Appraisals

I . Higher Proportion of the workforce receives fonnal perfonnance feedback from multiple sources (360 feedback) ---Please Select-----

2. Do you/your managers use perforn1ance bell curve? ---Please Select-----

3. Finn adopt a professionally developed and validated competency model to match business strategy for performance management of employees ---Please Select-----

4. Perfonnance management practices have impacted positively on retaining the required talent ---Please Select-----

5. Performance management practices have impacted on reduction in absenteeism , increased motivation ---Please Select-----

6. Your satisfaction on the extent the perfonnance management practices **complement (support) other HR practices such as Rewarding, training and development practices ---Please Select-----

7. I am satisfied about the value proposition of this HR function to the business as a whole ---Please Select-----

117

Section 1.4: Knowledge Management Practices

1. Collecting and sharing infonnation about best practices ---Please Select-----

2. Setting up networks for transferring infonnation between employees who interact with customers and company managers ---Please Select-----

3. Setting up networks for transferring infonnation between employees who interact with customers and engineers who create the product. ---Please Select-----

4. Creating fonnal procedures to ensure that lessons learned in the course of a project are passed along to others doing similar tasks. ---Please Select-----

5. Knowledge management systems create employee productivity by creating "learning"* mindset. ---Please Select-----

6. Knowledge Management Practices have impacted in higher competitive advantage by creating talented professionals with unique skills which are difficult to imitate by others ---Please Select-----

7. I am satisfied about the value proposition of this HR function to the business as a whole ---Please Select-----

Section 2: HR Value Proposition from Motivation and Empowerment Enhancing HR practices

Section 2.1: Reward and pay satisfaction

1. The reward system is externally competitive to attract and retain required talent pool ---Please Select-----

)

' '

The reward system is convergent with business strategy and contributing to gain required values, skills and behaviours of employees ---Please Select-----You are satisfied about average merit increases granted by job classification and pertonnance ---Please Select-----

-+. The reward system changes in response to changing needs of employees ---Please Select-----

5. The reward system is planed in such a way to be consistent with other HR practices such performance management, training and development For example reward system need to be complied with perfonnance management practices in terms of merit based payments and training and development practices in tenns of skill based payments ---Please Select-----

h. Do you believe this practices has an great impact on achieving employee productivity by up I i fting the feeling of "empowem1ent"

---Please Select-----

118

Li~Ft ;-::;~·:' ;r .. ·~~t;{ ~~~:·

: I am satisfied about the value proposition of this HR function to the business as a \\hole

---Please Select-----

Section 2.2: Teamwork Practices

I. My department encourages teamwork. ---Please Select-----

I Team members are held accountable* for the decisions they make. ---Please Select-----

3. Team work practices encourage leadership* and encouraged to come up with their ideas for better implementation of work (innovation*)

---Please Select-----4. Teamwork practices are consistent with other HR practices such as communication, knowledge sharing and management practices

---Please Select-----5. There is a good collaboration and quality in cross-functional teams

---Please Select-----6. Team work practices impacted on creating shared mindset* and strategic unity*

---Please Select-----7. There is a good value proposition of this HR function to the business as a whole

---Please Select-----

Section 2.3: Communication Practices

I. Employees are being well informed about company business goal, strategies and progress corporate social rcsponsihility*.

---Please Select-----2. There are opportunities for employees to express their ideas to upper

management and percentage of employee suggestions have been implanted are at high rate ---Please Select-----

3. There is supportive environment and resources which enable employees to communicate effectively. ---Please Select-----

4. Higher percentage of employees are aware how their job going to contribute the success of the business ( Employee Strategic Focus). ---Please Select-----

5. Communication practices have positively impacted in better customer connccti\ity*

and relationships. ---Please Select-----

6. Do you believe the communication practices has an great impact on employee productivity by increasing collahoration*

---Please Select-----7. I am satisfied about the value proposition of this HR function to the business as a

whole ---Please Select-----

95684 119

Definitions

** Complementarities and Synergies between HR practices

Complementarities and Synergies means HR practices support each other to

implement their plans. For example if HR is planning to recruit innovative and highly

committed workers recruitment and selection practices have to be supported by

providing rigorous training and knowledge management practices and incentive

compensation.

*HR deliverables

HR deliverables are the capabilities that will make their organization unique and drive

the creation of intangible value. The capabilities define intangibles that investors pay

attention to, the finn brand to which customers can relate, and the culture that shapes

employee behaviour. These capabilities become the identity of the finn, the deliverablcs

of HR practices, and the keys to implementing business strategy.

HR Deliverable Leadership -Being good at building leaders that generate confidence in the future.

Strategic Unity -Being good at creating a shared agenda around our strategy

Customer Connectivity -Being good at fostering enduring relationships of trust with target customers

Corporate Social Responsibility -Being good at establishing a strong reputation for sustainability, philanthropy, and employability in our industry and community

Shared Mindset -Being good at ensuring customers and employees have a consistent and positive experience of our tim1 identity

Collaboration -Being good at working together across boundaries to ensure leverage and efticiency

Learning -Being good at generating, generalizing, and implementing ideas with impact

Innovation -Being good at doing something new in both content and process

Talent -Being good at attracting, motivating, developing, and retaining talented and committed people

Speed -Being good at making important changes rapidly

Efficiency -Being good at reducing the costs of our business practices

120

Definitions

** Complementarities and Synergies between HR practices

Complementarities and Synergies means HR practices support each other to

impkment their plans. For example if HR is planning to recruit innovative and highly

wmmitted workers recruitment and selection practices have to be supported by

pnn iding rigorous training and knowledge management practices and incentive

L"(lmpcnsation.

*HR deliverables

H R deliverables are the capabilities that will make their organization unique and drive

the creation of intangible value. The capabilities define intangibles that investors pay

attention to, the firm brand to which customers can relate, and the culture that shapes

employee behaviour. These capabilities become the identity of the finn, the deliverables

of H R practices, and the keys to implementing business strategy.

IIR Deliverable Leadership -Being good at building leaders that generate contidence in the future.

Strategic Unity -Being good at creating a shared agenda around our strategy

Customer Connectivity -Being good at fostering enduring relationships of trust with targ.et customers

Corporate Social Responsibility -Being good at establishing a strong reputation for sustainability, philanthropy, and employability in our industry and community

Shared Mindset -Being good at ensuring customers and employees have a consistent and positive experience of our fim1 identity

Collaboration -Being good at working together across boundaries to ensure leverage and efficiency

Learning -Being good at generating, generalizing, and implementing ideas with impact

Innovation -Being good at doing something new in both content and process

Talent -Being good at attracting, motivating, developing, and retaining talented and committed people

Speed -Being good at making important changes rapidly

Efficiency -Being good at reducing the costs of our business practices

120

Accountability -Being good at creating and enforcing standards that lead to high pcrtonnance and execution

Please Save Your Changes

End of the survey

Thank you for your participation

121

Appendix F- Reliability and Factor Analysis of Survey 2

Section 1.1: Recruitment and Selection Practices

Reliability Statistics

Cronbach's Alpha N of Items

.946 7

Factor Analysis

Communalities

Initial Extraction item 1 1.000 .780

item 2 1.000 .887

item 3 1.000 .798

item 4 1.000 .799

item 5 1.000 .773

item 6 1.000 .521

item 7 1.000 .887

Extraction Method: Principal Component Analysis.

Component Matri>(l

Com pone nt

1 item 1 .883

item 2 .942

item 3 .893

item 4 .894

item 5 .879 I

item 6 .722

item 7 .942

Extraction Method: Principal Component Analysis.

a. 1 components extracted.

Section 1.2: Training and Development

Reliability Statistics

Cronbach's Alpha • N of Items

.943 7

122

Factor Analysis

Communalities

Initial Extraction item 1 1.000 .797 item 2 1.000 .873 item 3 1.000 .832 item 4 1.000 .790 item 5 1.000 .751 item 6 1.000 .503 item 7 1.000 .832

Extraction Method: Principal Component Analysis.

Component Matri>(l

Com pone nt

1 item 1 .893 item 2 .935 item 3 .912 item 4 .889

item 5 .867 item 6 .710

item 7 .912 L__ _____

Extraction Method: Principal Component Analysis.

a. 1 components extracted.

Section 1.3: Performance Management and Appraisals

Reliability Statistics

Cronbach's Alpha N of Items

.965 7

Factor Analysis

Communalities

Initial Extraction item 1 1.000 .808 item 2 1.000 .901 item 3 1.000 .865

item 4 1.000 .741 item 5 1.000 .870 item 6 1.000 .808 item 7 1.000 .901

Extraction Method: Principal Component Analysis.

123

Component Matri:l(l

Com pone nt

1 item 1 .899 item 2 .949 item 3 .930 item 4 .861 item 5 .933 item 6 .899 item 7 .949

Extraction Method: Principal Component Analysis.

a. 1 components extracted.

Section 1.3: Performance Management and Appraisals

Reliability Statistics

Cronbach's Alpha N of Items

.965 7

Factor Analysis

Communalities

Initial Extraction item 1 1.000 .808 I item 2 1.000 .808 item 3 1.000 .901 item 4 1.000 .901 item 5 1.000 .865 item 6 1.000 .741 item 7 1.000 .870

Extraction Method: Principal Component Analysis.

124

Component Matri)(l

Com pone nt

1 item 1 .899 item 2 .899 item 3 .949 item 4 .949

item 5 .930

item 6 .861

item 7 .933

Extraction Method: Principal Component Analysis.

a. 1 components extracted.

Reliability Statistics

Cronbach's Alpha N of Items

.832. 7

Factor Analysis

Communalities

Section 1.4: Knowledge Management

Initial Extraction item 1 1.000 .808 item 2 1.000 .808

item 3 1.000 .901

item 4 1.000 .901

item 5 1.000 .865

item 6 1.000 .741 item 7 1.000 .870

Extraction Method: Principal Component Analysis.

125

Component Matri>f

Com pone nt

1 I

item 1 .899

item 2 .899

item 3 .949 item 4 .949

item 5 .930

item 6 .861

item 7 .933

Extraction Method: Principal Component Analysis.

a. 1 components extracted.

Section 1.5: Team Work

Reliability Statistics

Cronbach's Alpha : N of Items

.952; 7

Factor Analysis

Communalities

Initial Extraction item 1 1.000 .900

item 2 1.000 .642

item 3 1.000 .722

item 4 1.000 .713

item 5 1.000 .793

item 6 1.000 .772

item 7 1.000 .900 L___

Extraction Method: Principal Component Analysis.

126

Component Matri>(l

Com pone nt

1 item 1 .948 item 2 .801

item 3 .849

item 4 .844 item 5 .890

item 6 .879 item 7 .948

Extraction Method: Principal Component Analysis.

a. 1 components extracted.

Section 1.6: Communication

Reliability Statistics

Cronbach's Aloha N of Items

.911 7

Factor Analysis

Communalities

Initial Extraction item 1 1.000 .780 item 2 1.000 .887 item 3 1.000 .798 item 4 1.000 .799 item 5 1.000 .773 item 6 1.000 .521 item 7 1.000 .887

Extraction Method: Principal Component Analysis.

127

Olllllllllllli.

Component Matri>C

Com pone nt

1 item 1 .883

item 2 .942

item 3 .893

item 4 .894

item 5 .879

item 6 .722

item 7 .942

Extraction Method: Principal Component Analysis.

a. 1 components extracted.

Section 1. 7: Reward and Pay

Section 1.4: Knowledge Management

Reliability Statistics

Cronbach's Alpha N of Items

.852 7

Factor Analysis

Communalities

Initial Extraction item 1 1.000 .808

item 2 1.000 .808

item 3 1.000 .901

item 4 1.000 .901 '

item 5 1.000 .865

item 6 1.000 .741

item 7 1.000 .870

Extraction Method: Principal Component Analysis.

128

J.

Component Matri>(l

Com pone nt

1 item 1 .899

item 2 .899

item 3 .949 item 4 .949 item 5 .930

item 6 .861 item 7 .933

Extraction Method: Principal Component Analysis.

a. 1 components extracted.

129

-~

..J

Appendix G- Survey 3- Collective Organizational Commitment and Satisfaction

To be filled by IT Professionals who are not in managerial positions

b) Your Designation (optional)

e) Number of Employees in the company

t) Ownership of your company

--- Please Select --­

___ Please Select ---

Considering the past 3 - 4 years please answer the following questions

Employee vie,vs on Role of line managers

I. Do the Line managers have right HR qualifications and competencies in addition

to technical knowledge in tenns of Change Management, Knowledge in Business

and Delivery in HR Basics

---Please Select-----

2. Line Managers understands the respect the subordinates suggestions and

problems from subordinate's point of view.

---Please Select-----

3. Line Managers takes leadership in transfonning, and stimulating company

cultural values.

---Please Select-----

4. Line managers/ supervisor give me clear perfonnance expectations that enable

me to do quality work.

---Please Select-----

5. Line a manager understands subordinate's unique skills and provides them

oppmiunity to apply them and develop when ever possible.

---Please Select-----

6. Line manager/Immediate supervisor is credible and accountable.

130

~

_............

---Please Select-----

7. Subordinates feel their job perfonnance is fairly evaluated and receive credit for a

job well done.

---Please Select-----

8. Line Managers take leadership in enhancing the strategy awareness of employees

(the understanding how the employee's job result in success of the company).

---Please Select-----

9. Overall, how satisfied are you with the job being done by line managers

---Please Select-----

Employee Ability

I. I was given an initial training before I work on my actual work assignment

---Please Select-----

2. Initially When I start on my work my supervisor explained me my tasks, and

provided me with learning materials which helped me to gain required skills

to start with my work easily.

---Please Select-----

3. I have opportunity to develop existing skills and develop new skills through

trainings, knowledge sharing and job rotations.

---Please Select-----

4. My immediate supervisor recognize my weaknesses and provide me

constructive feedback and help me to overcome them via ( mentoringi

training/ encourage for selflearning)

---Please Select-----

5. I am satist1ed about the abilities and skills I have developed so far.

---Please Select-----

131

l

6. I am aware that my skills and competencies lead to the success of

company business goals.

---Please Select-----

Employee motivation

I. I am optimistic about the future of the company.

---Please Select-----

} I am proud to work for the company.

---Please Select-----

3. I feel that the company cares about its people.

---Please Select-----

4. I feel that working for the company will lead to the kind of future I want.

---Please Select-----

5. Working at my company brings me happiness and satisfaction

---Please Select-----

6. My collogues in the office are collaborative and united.

---Please Select-----

7. I feel that people get ahead primarily on the merits of their work.

---Please Select-----

8. Men and women are provided with equal career opportunities in the company.

---Please Select-----

9. I am satisfied with my understanding of how my goals are linked to company

goals.

---Please Select-----

10. I am motivated to work in my company

---Please Select-----

132

l

Employee Opportunity to Develop - Managing of talent by providing

opportunity to develop in career and value appropriation

1. I find my work challenging and diverse with the opportunities I receive to work

in different projects.

---Please Select-----

' I receive rigorous training to update my knowledge with the changing

technological requirements of the company.

---Please Select-----

3. There are opportunities available for me to go up in the career ladder with duly

promotions.

---Please Select-----

4. I am encouraged to take the initiative in detennining my own career development

and professional growth.

---Please Select-----

5. I was able to build a better career profile (which will benefit me in future career

opportunities) compared to the day I begin this job few years back.

---Please Select-----

6. I receive a moderate work load which gives me room to work effectively within

my capacity without a high level job stress.

---Please Select-----

7. I am satisfied with the overall learning, career opportunities I received for my

present job?

---Please Select-----

133

Employee Aspect of organizational Commitment and satisfaction

Organizational Satisfaction - How do you feel about the following statements about the

company? Select one of the following

Strongly

disagree

Company leadership has

made changes which areD

positive for me.

With the leaders in your

company as positive roleD

models?

Your direct supervisor as

a positive role model? D

\Vith your own morale? D

\Vith the morale of your D

co-\vorkers?

'A'ith the team spirit in . D

vour work environment.

With the professionalism . k D ot your co-wor ers?

That your work gives

you a feeling of personal D

accomplishment?

That you receiVe

appropriate recognitionD

for your contributions'?

With the empowerment

you have to influence theD

quality of your work?

Disagree Neutral Agree

D D D

D D D

D D D

D D D

D D D

D D D

D D D

D D D

D D D

D D D

Strongly

Agree

D

D

D

D

D

D

D

D

D

D

134

With your ability to

maintain a reasonable

balance between yourO D D tamily life and your

work life.

That your compensation

matches yourO D D responsibilities?

With. your overall jobD

secunty? D D

With the company as aD

place to work? D D

Organizational Commitment

I. I feel a strong sense of belonging to this organization

---Please Select-----

D D

D D

D D

D D

l I am willing to work harder than I have to in order to help this company succeeds.

---Please Select-----

3. I am proud to be working for this company

---Please Select-----

-+. I frequently gather infonnation on competitors and share it with other members of

this company.

---Please Select-----

.:; I find that my values and this company's values are similar

---Please Select-----

h. I would turn down a job with more pay in order to stay with this company.

---Please Select-----

135

1111111&.

Interview Questions

Employee Aspect of motivation and satisfaction

How do you want your customers/clients to feel when they have used your product or

service?

E.g. stress,

\vork load, work life balance, competition, changes, job security etc. Please give two . . .

maJOr lSSUeS 10 m1mmum

p

\1 :,_' \lt i \

t ll i l \ li1 ~··

;~ !',: 1\ \\ 1 ;_•;_; 11 • { \( h I:L <:, l \ ll' ;\',_·; ·; i it 'I~ \)!:·.._',

End of the survey

Thank you for your participation

136

' J

j

.......

Frequency Tables - Employee Responses for Opportunity to Develop

1. I find my work challenging and diverse with the opportunities I receive to work in different projects.

item 1

Cumulative Freauencv Percent Valid Percent Percent

Valid Some What Agree 36 45.0 45.0 45.0 Some What Disagree 26 32.5 32.5 77.5 Strongly Agree 12 15.0 15.0 92.5 Neutral 6 7.5 7.5 100.0 Total 80 100.0 100.0

2. I receive rigorous training to update my knowledge with the changing technological requirements of the company.

item 2

' ' Cumulative

Frequency ! Percent Valid Percent Percent Valid Some What Agree 42 52.5 i 52.5 52.5

Some What Disagree 21 26.3' 26.3: 78.8 Strongly Agree 9 11.3 i 11.3 90.0 Neutral 8' 10.0 10.0 100.0 Total 80 100.0 100.0

3. There are opportunities available for me to go up in the career ladder with duly promotions.

item3

Cumulative I Frequency Percent Valid Percent Percent

Valid Some What Disagree 31 38.8 38.8 38.8

Neutral 25 31.3 31.3 70.0

Some What Agree 19 23.8 23.8 93.8

Strongly Agree 5 6.3 6.3 100.0

Total 80 100.0 100.0

4. I am encouraged to take the initiative in determining my own career development and professional growth.

137

i ...

....

item 4

Cumulative Frequency Percent Valid Percent Percent

Valid Some What Agree 36 45.0 45.0 45.0

Some What Disagree 24 30.0 30.0 75.0 Neutral 20 25.0 25.0 100.0

Total 80 100.0 100.0

5. I was able to build a better career profile (which will benefit me in future career opportunities) compared to the day I begin this job few years back.

item 5

Cumulative Frequency Percent Valid Percent Percent

Valid Some What Agree 40 50.0 50.0 50.0

Some What Disagree 22 27.5 27.5 77.5 Neutral 18 22.5 22.5 100.0

Total 80 100.0 100.0

6. I receive a moderate work load which gives me room to work effectively within my capacity without a high-level job stress.

item 6

' Cumulative

Frequency Percent Valid Percent Percent Valid Some What Disagree 33 41.3 41.3 ' 41.3

Strongly Disagree 22 27.5 27.5 I 68.8 Some What Agree 18 22.5 22.5' 91.3 Neutral 5 6.3 6.3' 97.5 Strongly Agree 2 2.5 2.5 100.0 Total 80 100.0 100.0

7. I am satisfied with the overall learning, career oppmiunities I received for my present job?

item 7

Cumulative Frequency Percent Valid Percent Percent

Valid Some What Agree 27 33.8 33.8 33.8

Neutral 20 25.0 25.0 58.8

Some What Disagree 18 22.5 22.5 81.3

Strongly Agree 15 18.8 18.8 100.0 Total 80 100.0 100.0

138 ~ 1

J

........

Frequency Tables- Employee Responses for Line manager's role

I. Do the Line managers have right HR qualifications and competencies in addition to technical knowledge in terms of Change Management, Knowledge in Business, Delivery in HR Basics

item 1

Cumulative Frequency Percent Valid Percent Percent

Valid Some What Disagree 39 45.9 45.9 45.9 Some What Agree 27 31.8 31.8 77.6

Neutral 19 22.4 22.4 100.0

Total 85 100.0 100.0

2. Line Managers understands the respect the subordinates suggestions and problems from subordinate's point of view.

item 2

Cumulative Frequency Percent Valid Percent Percent

Valid Some What Agree 34 40.0 40.0 40.0

Neutral 26 30.6 30.6 70.6

Some What Disagree 22 25.9 25.9 96.5

Strongly Agree 3 3.5 3.5 100.0

Total 85 100.0 100.0

3. Line Managers take leadership in transfonning, and stimulating company cultural values.

item3

Cumulative Frequency Percent Valid Percent Percent

Valid Strogly Disagree 4 4.7 4.7 4.7

Some What Disagree 37 43.5 43.5 48.2

Neutral 6 7.1 7.1 55.3

Some What Agree 28 32.9 32.9 88.2 Strongly Agree 10 11.8 11.8 100.0

Total 85 100.0 100.0

139

·-"

......-.

4. Line managers/ supervisor give me clear performance expectations that enable me to do quality work.

item 4

Cumulative Frequency Percent Valid Percent Percent

Valid Some What Disagree 38. 44.7 I 44.7 44.7 Neutral 9 10.6 10.6 55.3 Some What Agree ' 91.8 31 36.5. 36.5. Strongly Agree 7 i 8.2 8.2 : 100.0 Total 85 100.0 100.0 '

--L-

5. Line a manager understands subordinate's unique skills and provides them opportunity to apply them and develop when ever possible

item 5

Cumulative Frequency Percent Valid Percent Percent

Valid Neutral 36 42.4 42.4 42.4

Some What Agree 25 29.4 29.4 71.8

Some What Disagree 24 28.2 28.2 100.0

Total 85 100.0 100.0

6. Line manager/Immediate supervisor is credible and accountable.

item 6

Cumulative Frequency Percent Valid Percent Percent

Valid Some What Agree 26 30.6 30.6 30.6

Strongly Agree 25 29.4 29.4 60.0

Neutral 24 28.2 28.2 88.2

Some What Disagree 10 11.8 11.8 100.0

Total 85 100.0 100.0

7. Subordinates feel their job performance is fairly evaluated and receive credit for a job well done.

item 7

Cumulative Frequency Percent Valid Percent Percent

Valid Some What Agree 27 31.8 31.8 31.8

Strongly Agree 26 30.6 30.6 62.4

Some What Disagree 16 18.8 18.8 81.2

Neutral 16 18.8 18.8 100.0

Total 85 100.0 100.0 ------------- ··- -----

140

......

8. Line Managers take leadership in enhancing the strategy awareness of employees (the understanding how the employee's job result in success of the company).

item 8

i Cumulative I

Frequency Percent Valid Percent Percent Valid Some What Disagree 42 49.4 49.4 49.4

Neutral 8 9.4 9.4 ' 58.8

Some What Agree 21 i 24.7 24.7 83.5

Strongly Agree 14 I

16.5 16.5 100.0

Total 85 100.0 100.0

9. Overall, I am satisfied with the job being done by line managers

item 9

Cumulative Frequency Percent Valid Percent Percent

Valid Strogly Disagree 2 2.4 2.4 2.4

Some What Disagree 38 44.7 44.7 47.1

Neutral 7 8.2 8.2 55.3

Some What Agree 23 27.1 27.1 82.4

Strongly Agree 15 17.6 17.6 100.0

Total 85 100.0 100.0

141

. ..-

Appendix H- Reliability and Factor Analysis of Survey 3

Line manager's Role

Reliability Statistics

Cronbach's Alpha N of Items

.no· 9

Factor Analysis

Communalities

Initial Extraction item 1 1.000 .827 item 2 1.000 .899 item 3 1.000 .808 item 4 1.000 .891 item 5 1.000 .927 item 6 1.000 .854 item 7 1.000 .796 item 8 1.000 .808 item 9 1.000 .891

Extraction Method: Principal Component Analysis.

Component Matriil

Com pone nt

1 item 1 .909 item 2 .948 item 3 .899 item 4 .944

item 5 .963 item 6 .924 item 7 .892 item 8 .899 item 9 .944

L____

Extraction Method: Principal Component Analysis.

a. 1 components extracted.

142

..;

......

Collective Employee Ability

Reliability Statistics

Cronhach's Alpha N of Items

.90i\ : 6

Factor Analysis

Communalities

Initial Extraction item 1 1.000 .696 item 2 1.000 .829 item 3 1.000 .836

item 4 1.000 .790 item 5 1.000 .904 item 6 1.000 .849

Extraction Method: Principal Component Analysis.

Component Matri)(l

Com pone nt

1 item 1 .834 item 2 .910

item 3 .914 item 4 .889 item 5 .951 item 6 .921

Extraction Method: Principal Component Analysis.

a. 1 components extracted.

143

,..J

--

Collective Employee Motivation

Reliability Statistics

Cronbach's Alpha N of Items

.9RI I 0

Factor Analysis

Communalities

Initial Extraction item 1 1.000 .849 item 2 1.000 .748 item3 1.000 .865 item 4 1.000 .916 item 5 1.000 .911 item 6 1.000 .953 item 7 1.000 .929 item 8 1.000 .866 item 9 1.000 .815

item 10 1.000 .953

Extraction Method: Principal Component Analysis.

Component Matri>(l

Com pone nt

1 item 1 .921 item 2 .865

item3 .930

item 4 .957

item 5 .954 item 6 .976

item 7 .964

item 8 .931

item 9 .903

item 10 .976

Extraction Method: Principal Component Analysis.

a. 1 components extracted.

144

. ...i

-

Collective Employee Opportunity

Reliability Statistics

Cronbach's Alpha , N of Items

.976 ' 10

Factor Analysis

Communalities

Initial Extraction item 1 1.000 .842 item 2 1.000 .761 item 3 1.000 .920 item 4 1.000 .753 item 5 1.000 .899 item 6 1.000 .892 item 7 1.000 .926 item 8 1.000 .862 item 9 1.000 .808 item 10 1.000 .892

Extraction Method: Principal Component Analysis.

Component Matri>f

Com pone nt

1 item 1 .918

item 2 .872

item 3 .959 item 4 .868 item 5 .948

item 6 .944

item 7 .962 item 8 .929 item 9 .899 item 10 .944

Extraction Method: Principal Component Analysis.

a. 1 components extracted.

145

..;,

Collective Organizational Satisfaction

Reliability Statistics

Cronhach's Alpha N of Items

.882 14

Factor Analysis

Communalities

Initial Extraction item 1 1.000 .843 item 2 1.000 .925 item 3 1.000 .843 item 4 1.000 .925 item 5 1.000 .754 item 6 1.000 .870 item 7 1.000 .939 item 8 1.000 .877 item 9 1.000 .819 item 10 1.000 .754 item 11 1.000 .870 item 12 1.000 .939 item 13 1.000 .877 item 14 1.000 .440

Extraction Method: Principal Component Analysis.

146

..

--

Component MatriJf

Com pone nt

1 item 1 .918 I

item 2 .962 !

item 3 .918 item 4 .962

item 5 .868

item 6 .933

item 7 .969

item 8 .936

item 9 .905

item 10 .868

item 11 .933

item 12 .969 item 13 .936

item 14 .663

Extraction Method: Principal Component Analysis.

a. 1 components extracted.

Collective Organizational Commitment

Reliability Statistics

Cronhach's Alpha N of Items

.~57 ' 6

Factor Analysis

Communalities

Initial Extraction item 1 1.000 .810

item 2 1.000 .810

item 3 1.000 .909

item 4 1.000 .909

item 5 1.000 .877

item 6 1.000 .733

Extraction Method: Principal Component Analysis.

147

""

Component Matri)(i

Com pone nt

1 item 1 .900

item 2 .900 item 3 .953 item 4 .953

item 5 .937

item 6 .856

Extraction Method: Principal Component Analysis.

a. 1 components extracted.

148

j

Intraclass Correlation Coefficient for employee ability

95% Confidence Interval F Test with True Value 0 r---- ---- --T

Intraclass Lower Upper Correlation Bound Bound Value dfl df2 Sig

Single Measures .303 .209 .415 3.609 74 375 .001 Average

.723 .613 .810 3.609 74 375 .021 Measures

One-way random effects model where people effects are random.

Intraclass Correlation Coefficients for employee motivation

95% Confidence Interval F Test with True Value 0 --- ------------ -

Intraclass Lower Upper Correlation Bound Bound Value dfl dt2 Sig

Single Measures .213 .109 .315 . 3.129 73 370 .045 Average

.698 .513 i .750 3.129 73 370 .006 Measures

One-way random effects model where people effects are random.

149

Intraclass Correlation Coefficients for employee opportunity

95% Confidence Interval F Test with True Value 0 - -- - -

' ---

Intraclass Lower Upper I '

Correlation Bound Bound Value dfl df2 Sig Single Measures .103 .:249 .315 3.609' 74 375 .043 Average

.80:2. .743 .850 3.609 i 74 375 .051 Measures

One-way random etJects model where people effects are random.

Intraclass Correlation Coefficient for organizational satisfaction

95% Confidence Interval F Test with True Value 0 - ---- -- ---- --- --- --- - -- - - -- --

Intraclass Lower Upper Correlation Bound Bound Value dfl df2 Sig

Single Measures .299 .179 .388 3.609 74 375 .000 Average

. 711 .6:23 .790 3.609 74 I 375 .001 Measures

One-way random effects model where people effects are random.

150

Intraclass Correlation Coefficient for organizational commitment

95% Confidence Interval F Test with True Value 0 --- -

Intraclass Lower Upper Correlation Bound Bound Value dfl df2 Sig

Single Measures .303 .219 i .405 3.144 72 370 .02 Average

.723 .609. .812 3.144 72 370 .02 Measures

.. ---·-- ---One-way random effects model where people effects are random.

151

~-

Appendix I - Survey 4- Financial Performances

To be filled by CEO/Financial Managers /Accountants/General Managers- (who are aware about company financial Performances)

Designation (optional)

Does your company operate globally? Yes

Considering the past 3 years from 2006 up to 2009 please answer the questions below

Please omit the year 2009 as most company financial performances were affected by global economic crisis

1. The average rate of turnover of the organization has been decreased over the past years Some what agree

2. Employee productivity (here assume as average sales per employee) has been increased over the past years Some what agree

3. During past 3 years a positive sales growth could be observed. Strongly agree

4. During past 3 years profitability of organization increased to considerable amount. Some what agree

5. During past 3 years market share of organization increased to considerable amount. Strongly agree

6. During past 3 years rate of return on assets increased in the organizations. Some what agree

7. During past 3 years rate of return on equity increased in the organizations. Neutral

8. During past 3 years operating profit margin has increased in the organizations. Some what agree

9. During past 3 years the net income increased in the organizations. Some what agree

I 0. During past 3 years the overall financial perfonnances increased in the organizations. Strongly agree

End of the survey

152

Appendix J- Reliability and Factor Analysis of Survey 4

Reliability Statistics

Cronbach's Alpha N of Items

.938 10

Factor Analysis

Communalities

Initial Extraction item 1 1.000 .868 item 2 1.000 .359 item3 1.000 .819 item 4 1.000 .934 item 5 1.000 .759 item 6 1.000 .927 item 7 1.000 .898 item 8 1.000 .857 item 9 1.000 .812 item 10 1.000 .927

Extraction Method: Principal Component Analysis.

Component Matri>C

Com pone nt

1 item 1 .931 item 2 -.599 item3 .905 item 4 .966 item 5 .871 item 6 .963 item 7 .947 item 8 .926 item 9 .901 item 10 .963

Extraction Method: Principal Component Analysis.

a. 1 components extracted.

/<,;:_I;~-~--- . --~·-""-L . '?""'·· ··- .. ~ ''- ,/ ~

~\ .. ), ·· Js;-· ~" .it. -./:~

to....; _I ~ ·._. ,. !" " ") '. I _.,"·

,/'.

".) '· '_) \

--~ or- I ~ 2 (: ," J (/\I f )10 1 (J.-' : ....- .,, ·z: ~L) 1 ·JJ ,-·-' ___..l ~ ~ .'? J c:? • l'''""'• O't ... , -r--.,.......... .... ' ~,.:-.. ,.... ,..__,.,,.~ .• \y vr.; '·--·

c--,. ;... c.,~ •C> 01'11~ ., · \/;: 'VI"r>f ilt\J'"' ..•

\"~-- ,· .. ,......___ ,- '.: · ...... ~.:/ ~; ' \ 'j" \ / t2.~ :_.-~/

153


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