This study examines job satisfaction and attrition rates in the Indian IT industry. It surveys employees at major companies like Infosys, TCS, Adobe, and Mahindra Satyam. The study finds that work compensation, work quality, and work environment are the top factors influencing employees' intentions to quit. A positive work environment with fair compensation, opportunities for skills development, and meaningful work can increase job satisfaction and reduce attrition in the IT industry.

1. ORGANIZATIONAL
BEHAVIOUR
A STUDY ON JOB SATISFACTION IN
INFORMATION TECHNOLOGY
INDUSTRY IN INDIA
Submitted to –
Dr. Bindu Gupta
Submitted by –
Areeb Ahmad
Arif Ehsaan
Ashutosh
Bihani
Ankush Singhal
1

2. Dileep Bajaj
Himaja V.
Neha Agarwal
Executive Summary:
We are surveying the IT industry in India, in which we are trying to find out
the level of job satisfaction of the employees working in the industry and
their attrition rate. The IT industries which we are targeting are: Infosys
Technologies Ltd, Tata Consultancy Services, Adobe Systems, Mahindra
Satyam.
Job satisfaction shows how content the employee is with his job. It is a
person’s evaluation of his or her job and work context. Job satisfaction
depends upon various factors like Job Content, the supervisor, career
opportunities in the company, salary, promotion and other incentives and
benefits which a employee can draw from the industry, working condition the
environment of the company and the sub ordinates with which an employee
works. Salary is one of the factors which affect job satisfaction, the level of
satisfaction also depends upon the attitude of the person. People having
negative attitude are generally not satisfied with their job irrespective of
their promotion, working environment and salary which they are offered. The
most easiest way to express dissatisfaction is to leave the organization this
increases the turnover rate of the employees in an organization and
increases the attrition rate. Some other ways to express dissatisfaction is to
2

3. raise voice and attempts to improve the situation, passively wait for
conditions to improve and the other is to neglect the situation making it
worse. Job satisfaction goes hand in hand with productivity.
The responses to the survey have been quantified by assigning weights to answers. On
performing the regression analysis on the factors affecting intention to quit (and hence attrition)
it was found that work compensation work quality and work environment are the three factors –
work compensation, work quality and work environment that contribute the most to intention to
quit (and hence to attrition).
Contents
Executive Summary:..................................................................................................2
Acknowledgement......................................................................................................4
Introduction: Background of the study ..................................................................................5
Definition of Job Satisfaction...........................................................................................5
Objective of the Study................................................................................................6
Detailed Analysis for factors considered.................................................................6
Models of job satisfaction.....................................................................................7
Job Characteristics Model.....................................................................................8
Relationships and practical implications..............................................................9
Work Environment................................................................................................9
Compensation....................................................................................................10
Work Quality......................................................................................................11
Organizational Commitment..............................................................................12
Methodology................................................................................................................14
Brief profile of the Indian IT Industry.....................................................................14
Brief of various Companies used in the Survey...................................................................15
Tata Consultancy Services (TCS)........................................................................15
Infosys................................................................................................................16
Adobe Systems Incorporated.............................................................................16
Mahindra Satyam...............................................................................................17
3

4. Method of Research..............................................................................................17
Methodology of Survey.............................................................................................18
Survey Questions and Responses.............................................................................19
Results......................................................................................................................32
Recommendations....................................................................................................34
References...............................................................................................................34
Annexure..................................................................................................................35
Questionnaire........................................................................................................35
Questionnaire
Acknowledgement
No study can be completed without the support of the employees of the
organization where it is conducted, more so when the job satisfaction and
attrition rate of the employees is the primary focus. Unconditional assistance
and uninterrupted cooperation from our previous subordinates, co-workers
and friends in different organization in which we have experience, are vital
for our recent study. This study would not have taken its present shape in
the absence of openness and readiness to share their insights, judgement
and views of the employees of the organization.
Our special thanks to Dr. Bindu Gupta for her support and guidance at
various stages of the project starting from its inception and preparing of the
questionnaire.
This project has really been an experience which gave us the insight of the
work culture in IT industry and reasons for attrition rate prevailing in the
industry.
4

5. Research Team
Introduction: Background of the study (Introduction of the variables
measured and analysed in the study)
Definition of Job Satisfaction
Different authors give various definitions of job satisfaction. Some of them are taken from the
book of D.M. Pestonjee “Motivation and Job Satisfaction” which are given below:
“Job satisfaction is defined as a pleasurable, emotional, state resulting from appraisal of one’s
job. An effective reaction to one’s job.”
-Weiss
“Job satisfaction is general attitude, which is the result of many specific attitudes in three areas
namely:
Specific job factors
Individual characteristics
Group relationship outside the job.”
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6. -Blum and Naylor
“Job satisfaction is defined, as it is result of various attitudes the person hold towards the job,
towards the related factors and towards the life in general.”
-Glimmer
“Job satisfaction is defined as “any contribution, psychological, physical, and environmental
circumstances that cause a person truthfully say, ‘I am satisfied with my job.”
“Job satisfaction is defined, as employee’s judgment of how well his job on a whole is satisfying
his various needs.”
-Mr. Smith
“Job satisfaction is defined as a pleasurable or positive state of mind resulting from appraisal of
one’s job or job experiences.”
-Locke
Objective of the Study
The research has been undertaken with following objectives.
 To study the level of job satisfaction among the employees of Informational Technology
Industry in India if any.
 To study the factors effecting job satisfaction in the Indian IT industry.
Detailed Analysis for factors considered
Job Satisfaction
6

7. Job satisfaction describes how content an individual is with his or her job. The happier people
are within their job, the more satisfied they are said to be. Job satisfaction is not the same as
motivation, although it is clearly linked. Job design aims to enhance job satisfaction and
performance, methods include job rotation, job enlargement and job enrichment. Other
influences on satisfaction include the management style and culture, employee involvement,
empowerment and autonomous work position .
Definition : Job satisfaction has been defined as a pleasurable emotional state resulting from the
appraisal of one’s job; an affective reaction to one’s job; and an attitude towards one’s job.]Weiss
(2002) has argued that job satisfaction is an attitude but points out that researchers should clearly
distinguish the objects of cognitive evaluation which are affect (emotion), beliefs and
behaviors. This definition suggests that we form attitudes towards our jobs by taking into
account our feelings, our beliefs, and our behaviors.
Models of job satisfaction
Affect Theory
Edwin A. Locke’s Range of Affect Theory (1976) is arguably the most famous job satisfaction
model. The main premise of this theory is that satisfaction is determined by a discrepancy
between what one wants in a job and what one has in a job. Further, the theory states that how
much one values a given facet of work (e.g. the degree of autonomy in a position) moderates
how satisfied/dissatisfied one becomes when expectations are/aren’t met.
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8. Dispositional Theory
Another well-known job satisfaction theory is the Dispositional Theory. It is a very general
theory that suggests that people have innate dispositions that cause them to have tendencies
toward a certain level of satisfaction, regardless of one’s job. This approach became a notable
explanation of job satisfaction in light of evidence that job satisfaction tends to be stable over
time and across careers and jobs. Research also indicates that identical twins have similar levels
of job satisfaction.
Two-Factor Theory (Motivator-Hygiene Theory)
Frederick Herzberg’s Two factor theory (also known as Motivator Hygiene Theory) attempts to
explain satisfaction and motivation in the workplace. This theory states that satisfaction and
dissatisfaction are driven by different factors – motivation and hygiene factors, respectively. An
employee’s motivation to work is continually related to job satisfaction of a subordinate.
Motivation can be seen as an inner force that drives individuals to attain personal and
organizational goals (Hoskinson, Porter, & Wrench, p.133). Motivating factors are those aspects
of the job that make people want to perform, and provide people with satisfaction, for example
achievement in work, recognition, promotion opportunities. These motivating factors are
considered to be intrinsic to the job, or the work carried out. Hygiene factors include aspects of
the working environment such as pay, company policies, supervisory practices, and other
working conditions.
Job Characteristics Model
Hackman & Oldham proposed the Job Characteristics Model, which is widely used as a
framework to study how particular job characteristics impact on job outcomes, including job
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9. satisfaction. The model states that there are five core job characteristics (skill variety, task
identity, task significance, autonomy, and feedback) which impact three critical psychological
states (experienced meaningfulness, experienced responsibility for outcomes, and knowledge of
the actual results), in turn influencing work outcomes (job satisfaction, absenteeism, work
motivation, etc.). The five core job characteristics can be combined to form a motivating
potential score (MPS) for a job, which can be used as an index of how likely a job is to affect an
employee's attitudes and behaviours.
Relationships and practical implications
Job Satisfaction can be an important indicator of how employees feel about their jobs and a
predictor of work behaviours such as organizational citizenship, absenteeism, and
turnover. Further, job satisfaction can partially mediate the relationship of personality variables
and deviant work behaviors.
One common research finding is that job satisfaction is correlated with life satisfaction. This
correlation is reciprocal, meaning people who are satisfied with life tend to be satisfied with their
job and people who are satisfied with their job tend to be satisfied with life. However, some
research has found that job satisfaction is not significantly related to life satisfaction when other
variables such as non-work satisfaction and core self-evaluations are taken into account.
Work Environment
A work environment can be identified as the place that one works. i.e. -in an office building in a
cube, at home at the kitchen table, from a car or truck, at a construction site. All are work
9

10. environments. We tend, however, to hear about "healthy work environments." This can point to
other factors in the work environment, such as co-workers, air quality, ergonomic seating,
management (the boss!), child care, parking, noise, and even the size of one's cube. A work
environment doesn't require a job. It requires that work has to be done in some place. Say you
need to do homework. Where do you do it? At school in study hall? At your kitchen table? On
the floor at a friend's house? These can also be considered work environments.
Creating a Positive Work Environment
An effective work environment is vital to the success of small businesses and large corporations
alike. When problems remain unsolved and rules never get implemented, the result can be an
unproductive staff and a stale work environment.
People working together with a common denominator will accomplish tasks with greater ease
and have higher expectations of themselves and their work. (success and passion)A positive
work environment is critical no matter how many employees you have. It is management that
fosters the work atmosphere so they are responsible for conducting things in a way that helps
raise people's spirits. There are four basic beliefs:
• Hope
• Trust
• Pleasure
• Opportunity
Compensation
With the technological developments taking place at a higher rate, the salary packages are too
increasing at a much higher rate. Pay packages in India have witnessed an increase of more than
10

11. 14% in 2006 over last year’s salary packages. The compensation package comprises of monetary
and non-monetary benefits that includes salary, special allowances, house rent allowance, travel
allowance, mobile allowance, employee stock options, club memberships, accommodations,
retirement benefits and other benefits.
Globalization is being considered as the cause for such salary hikes. The establishment of multi-
national companies and privatization has led the Indian industry to witness higher salary
package.
With the immense competition of attracting and retaining talented human resource,
compensation package is the only motivation factor available with the organizations be it
Indian origin organizations or foreign-owned multinationals.
With the high attrition rate organizations are increasing their salary packages to attract and retain
talented human resource. In the race, India has begged first position followed by Lithuania and
China.
Work Quality
Work quality is basically how an employee perceives the quality of work that he does and how
fulfilling is it for the higher needs of the employee i.e. of self actualization.
Factors on which work quality depends.
Employee participation : How involved is he in the overall management of his work.
How of responsibility and freedom he is being given.
Employee participation as a workplace strategy
Information sharing : How much of the information about the projects, company etc is
shared with the employee.
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12. Receiving feedback on your work : does he get proper feedback for his effort, basic
recognition of his work for further motivation and enhancement.
Skill use : How much he is able to use his skill sets in his work. Or does his work gives
no scope for using his skills to him.
Opportunities for skills development: What opportunities does his work offers to him to
further enhance his knowledge and improve his skill sets.
Workplace training : whether he is being given proper training for the job he has to do.
Organizational Commitment
Organizational commitment is the psychological attachment of an employee to an
organization.
Model of commitment
According to Meyer and Allen's (1991) three-component model of commitment, prior research
indicated that there are three "mind sets" which can characterize an employee's commitment to
the organization:
 Affective Commitment: AC is defined as the employee's positive emotional attachment to the
organization. An employee who is affectively committed strongly identifies with the goals of
the organization and desires to remain a part of the organization. This employee commits to
the organization because he/she "wants to". In developing this concept, Meyer and Allen
drew largely on Mowday, Porter, and Steers's (1982) concept of commitment, which in turn
drew on earlier work by Kanter (1968).
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13.  Continuance Commitment: The individual commits to the organization because he/she
perceives high costs of losing organizational membership (cf. Becker's 1960 "side bet
theory"),including economic costs (such as pension accruals) and social costs (friendship ties
with co-workers) that would be incurred. The employee remains a member of the
organization because he/she "has to".
 Normative Commitment: The individual commits to and remains with an organization
because of feelings of obligation. These feelings may derive from many sources. For
example, the organization may have invested resources in training an employee who then
feels a 'moral' obligation to put forth effort on the job and stay with the organization to 'repay
the debt.' It may also reflect an internalized norm, developed before the person joins the
organization through family or other socialization processes, that one should be loyal to one's
organization. The employee stays with the organization because he/she "ought to".
TYPES
 Intellectual Commitment(full)
 Emotional Commitment (full)
 Financial Commitment (phased)
Guidlines to enhance organizational commitment.
There are five guidelines which help to enhance organizational commitment.
1) Commit to people-first values: Put it in writing, hire the right-kind managers, and walk the
talk.
2) Clarify and communicate your mission: Clarify the mission and ideology; make it charismatic;
use value-based hiring practices; stress values-based orientation and training; build the tradition.
13

14. 3) Guarantee organizational justice: Have a comprehensive grievance procedure; provide for
extensive two-way communications.
4) Community of practise: Build value-based homogeneitly; share and ahare alike; emphasize
barnraising, cross-utilization, and teamwork; getting people to work together.
5) Support employee development: Commit to actualizing; provide first-year job challenge;
enrich and empower; promote from within; provide developmental activities; provide employee
security without guarantees.
Methodology
Brief profile of the Indian IT Industry
The Indian Information Technology industry accounts for a 5.9% of the country's GDP and
export earnings as of 2009, while providing employment to a significant number of its sector
workforce. More than 2.3 million people are employed in the sector either directly or indirectly,
making it one of the biggest job creators in India and a mainstay of the national economy. In
March 2009, annual revenues from outsourcing operations in India amounted to US$50 billion
and this is expected to increase to US$225 billion by 2020. The most prominent IT hub is IT
capital Bangalore. The other emerging destinations
are Chennai, Hyderabad, Mumbai, Pune, NCR, Jaipur and Kolkata. Technically proficient
immigrants from India sought jobs in the western world from the 1950s onwards as India's
education system produced more engineers than its industry could absorb. India's growing stature
in the information age enabled it to form close ties with both the United States of America and
the European Union. However, the recent global financial crisis has deeply impacted the Indian
IT companies as well as global companies. As a result hiring has dropped sharply and employees
14

15. are looking at different sectors like financial service, telecom or manufacturing industries, Which
are growing phenomenally over the last few years. Due to meltdown the IT industry's pace of
growth has dropped significantly and amount of Job dissatisfaction is also on a high.
India's IT Services industry was born in Mumbai in 1967 with the establishment of Tata Group
in partnership with Burroughs. The first software export zone SEEPZ was set up here way back
in 1973, the old avatar of the modern day IT park. More than 80 percent of the country's software
exports happened out of SEEPZ, Mumbai in 80s.[3]
Each year India produces roughly 500,000 engineers in the country, out of them only 25% to
30% possessed both technical competency and English language skills, although 12% of India's
population can speak in English. India developed a number of outsourcing companies
specializing in customer support via Internet or telephone connections. By 2009, India also has a
total of 37,160,000 telephone lines in use, a total of 506,040,000 mobile phone connections, a
total of 81,000,000 Internet users—comprising 7.0% of the country's population, and 7,570,000
people in the country have access to broadband Internet— making it the 12th largest country in
the world in terms of broadband Internet users.
Brief of various Companies used in the Survey
Tata Consultancy Services (TCS)
Tata Consultancy Services (TCS) is a Software services consulting company headquartered
in Mumbai, India. TCS is the largest provider of information technology and business process
outsourcing services in Asia. TCS has offices in 42 countries with more than 142 branches across
the globe. The company is listed on the National Stock Exchange and Bombay Stock
Exchange of India.
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16. TCS is a flagship subsidiary of one of India's largest and oldest conglomerate company, the Tata
Group, which has interests in areas such as energy, telecommunications, financial services,
manufacturing, chemicals, engineering, materials, government and healthcare
TCS is one of the largest private sector employers in India with a core strength in excess of
165,000 individuals. TCS has one of the lowest attrition rates in the Indian IT industry.
Infosys
Infosys is an information technology services company headquartered in Bangalore, India.
Infosys is one of the largest IT companies in India with 114,822 employees (including
subsidiaries) as of 2010. It has offices in 30 countries and development centres in India, China,
Australia, UK, Canada and Japan. It was founded on 2 July 1981 by seven entrepreneurs
Adobe Systems Incorporated
Adobe Systems Incorporated is an American computer software company headquartered in San
Jose, California, USA. The company has historically focused upon the creation of multimedia
and creativity software products, with a more-recent foray towards rich Internet
application software development.
Adobe was founded in December 1982 by John Warnock and Charles Geschke, who established
the company after leaving Xerox PARC in order to develop and sell the PostScript page
description language. In 1985, Apple Computer licensed PostScript for use in
its LaserWriter printers, which helped spark the desktop publishing revolution. The company
name Adobe comes from Adobe Creek in Los Altos, California, which ran behind the house of
one of the company's founders. Adobe acquired its former competitor, Macromedia, in
December 2005, which added newer software products and platforms such
as Coldfusion, Dreamweaver, Flash and Flex to its product portfolio.
16

17. As of August 2009, Adobe Systems has 7,564 employees,[4] about 40% of whom work in San
Jose. Adobe also has major development operations inOrlando, FL; Seattle, WA; San Francisco,
CA; Orem, UT; Ottawa, Ontario; Minneapolis, MN; Newton, MA; San Luis Obispo,
CA; Hamburg, Germany;Noida, India; Bangalore, India; Bucharest, Romania; Beijing, China.
Mahindra Satyam
Mahindra Satyam (formerly known as Satyam Computer Services Ltd) was founded in 1987
by B Ramalinga Raju. The company offers consulting and information technology (IT) services
spanning various sectors, and is listed on the New York Stock Exchange, theNational Stock
Exchange (India) and Bombay Stock Exchange (India). In June 2009, the company unveiled its
new brand identity “Mahindra Satyam” subsequent to its takeover by the Mahindra Group’s IT
arm, Tech Mahindra. Mahindra Satyam offers the following ‘horizontal’ services - Extended
Enterprise Solutions, Web Commerce Solutions, Business Intelligence Services, Quality
Consulting, Strategic Outsourcing Services, Industry Native Solutions, BPO and Engineering
Services
Method of Research
For our research, we have formed series of questions to measure job satisfaction and reasons for
attrition rate in organizations selected. The questionnaire was mainly divided into three parts.
First part is to find out the factor which best represents the employee overall job satisfaction. The
factors used were employee recognition, pay and benefits, and job content.
Second part contained the questions regarding agreeableness of employees on different factors
like Work environment, Compensation, Work quality, Organizational commitment.
The above factors were considered because in general for any employee those are the main
factors which contribute to both personal and professional satisfaction.
17

18. From the employee’s rating on the agreeableness to different factors we can find out the level of
the job satisfaction of employees in different companies and also the main reason for the attrition
rate.
Third part is to find out the crucial reasons for the attrition rate i.e. the main reasons for
employees to make decision to quit the job. Some of the factors mentioned in questionnaire are
work quality, politics in the organization, work load, compensation, and work environment.
Methodology of Survey
The responses to the survey have been quantified by assigning weights to answers. For instance,
an “Strongly agree” in response to a question gets a weight of 4, an “Agree” gets a weight of 3, a
disagree gets a weight of 2 and so on. We have formulated some hypotheses pertaining to the
different factors that affect attrition in IT companies and then a regression analysis has been done
to find out as to which all factors contribute significantly to attrition. The dependent variable that
we have taken is Intention to quit (the question chosen is - As soon as possible I will leave this
organization) which may be taken as a good representation of attrition. The independent
variables (or the factors that affect intention to quit and hence attrition) are – Work
compensation, organizational commitment, work quality and work environment. The following
hypotheses have been formulated :
Variables Null Hypothesis – H0 Alternate Hypothesis – H1
Work compensation Work compensation does not contribute Work compensation does contribute
significantly to intention to quit significantly to intention to quit
Organizational Organizational commitment does not Organizational commitment does
commitment contribute significantly to intention to contribute significantly to intention
quit to quit
18

19. Work quality Work quality does not contribute Work quality does contribute
significantly to intention to quit significantly to intention to quit
Work environment Work environment does not contribute Work environment does contribute
significantly to intention to quit significantly to intention to quit
Survey Questions and Responses
Gender
Male 81 75%
Female 27 25%
DIRECTIONS: Please select the level that best represents your level of overall
job satisfaction for each item below. - That your views and participation are
valued?
19

20. Strongly 1 15
satisfied 6 %
Satisfied 6 61
6 %
Dissatisfied 1 12
3 %
Strongly 1 12
dissatisfied 3 %
DIRECTIONS: Please select the level that best represents your level of overall
job satisfaction for each item below. - That your work gives you a feeling of
personal accomplishment?
Strongly 8 7
satisfied %
Satisfied 7 71
7 %
Dissatisfied 1 16
20

21. 7 %
Strongly 6 6
dissatisfied %
DIRECTIONS: Please select the level that best represents your level of overall
job satisfaction for each item below. - That you receive appropriate recognition
for your contributions?
Strongly 2 21
satisfied 3 %
Satisfied 3 33
6 %
Dissatisfied 4 40
3 %
Strongly 6 6
dissatisfied %
21

22. DIRECTIONS: Please select the level that best represents your level of overall
job satisfaction for each item below. - That your compensation matches your
responsibilities?
Strongly 1 12
satisfied 3 %
Satisfied 5 54
8 %
Dissatisfied 3 29
1 %
Strongly 6 6
dissatisfied %
Please rate your agreeableness on the items listed below.
22

23. Work environment : - I have the resources I need to do my job well
Strongly 3 32
agree 5 %
Agree 6 61
6 %
Disagree 3 3
%
Strongly 4 4
disagree %
Work environment : - I have all the information I need to do my job effectively
Strongly 3 28
agree 0 %
Agree 6 58
3 %
Disagree 1 14
5 %
Strongly 0 0
disagree %
23

24. Work environment : - My workplace is safe
Strongly 6 56
agree 1 %
Agree 3 33
6 %
Disagree 1 9
0 %
Strongly 1 1
disagree %
Work environment : - My work climate encourages teamwork and support
Strongly 2 19
agree 0 %
Agree 5 49
24

25. 3 %
Disagree 2 27
9 %
Strongly 6 6
disagree %
Compensation : - I am paid fairly for the work I do
Strongly 7 6
agree %
Agree 6 59
4 %
Disagree 3 34
7 %
Strongly 0 0
disagree %
25

26. Compensation : - My salary is competitive with similar jobs I might find
elsewhere
Strongly 2 27
agree 9 %
Agree 5 54
8 %
Disagree 1 18
9 %
Strongly 2 2
disagree %
Compensation : - My benefits (over & above my pay) are comparable to those
offered by other organizations
26

27. Strongly 3 28
agree 0 %
Agree 5 51
5 %
Disagree 1 18
9 %
Strongly 4 4
disagree %
Work quality : - My responsibilities and quality of work match my skills and
qualifications
Strongly 8 7
agree %
Agree 6 64
9 %
Disagree 2 25
7 %
Strongly 4 4
disagree %
27

28. Intention to Quit : - I think a lot about quitting my job
Strongly 1 10
agree 1 %
Agree 5 52
6 %
Disagree 3 32
5 %
Strongly 6 6
disagree %
28

29. Intention to Quit : - I am actively searching for an alternative to my present job
Strongly 6 6
agree %
Agree 4 44
7 %
Disagree 4 44
8 %
Strongly 7 6
disagree %
Intention to Quit : - As soon as possible I will leave this organization
Strongly 2 21
agree 3 %
Agree 4 39
2 %
Disagree 3 31
4 %
Strongly 9 8
disagree %
29

30. Organizational Commitment : - If necessary, I am prepared to put myself out for
this organisation (e.g. by working long and/or unsocial hours)
Strongly 2 21
agree 3 %
Agree 4 45
9 %
Disagree 3 33
6 %
Strongly 0 0
disagree %
Organizational Commitment : - If asked, I am prepared top take on more
responsibility or tasks not in my job description
30

31. Strongly 2 20
agree 2 %
Agree 7 65
0 %
Disagree 1 14
5 %
Strongly 1 1
disagree %
Organizational Commitment : - I feel that it is worthwhile to work hard for this
organization
Strongly 1 15
agree 6 %
Agree 7 68
3 %
Disagree 1 14
5 %
Strongly 4 4
disagree %
31

32. Organizational Commitment : - I am committed to this organisation
Strongly 2 20
agree 2 %
Agree 6 57
2 %
Disagree 2 20
2 %
Strongly 2 2
disagree %
32

33. What are the most crucial reason(s) that will affect your decision if you choose to quit your
job
Compensation (whole pay 7 72
package) 8 %
Work environment 5 51
5 %
Quality of work 6 63
8 %
Want to start your own 1 9%
venture 0
Too much work load 5 52
6 %
Too little work 4 4%
Politics in the organization 5 52
6 %
None, I won't quit my job 1 1%
Number of daily responses
33

34. Results
On performing the regression analysis on the factors affecting intention to quit (and hence
attrition) it was found that work compensation work quality and work environment are the three
factors that contribute the most to intention to quit (and hence to attrition). Accordingly the null
hypotheses for these three factors were rejected and the final conclusion is depicted in the table
below.
Variables p value Null Hypothesis – Alternate Hypothesis – Conclusion
H0 H1
Work Work compensation Work compensation Reject the
compensation 0.005620 does not contribute does contribute null
677 significantly to significantly to intention hypothesis
intention to quit to quit
Organizational Organizational Organizational Do not reject
commitment commitment does commitment does the null
0.482567
not contribute contribute significantly hypothesis
595
significantly to to intention to quit
intention to quit
Work quality Work quality does Work quality does Reject the
0.030610 not contribute contribute significantly null
692 significantly to to intention to quit hypothesis
intention to quit
Work Work environment Work environment does Reject the
environment 1.4485E- does not contribute contribute significantly null
22 significantly to to intention to quit hypothesis
intention to quit
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35. Recommendations
Organizational turnover in the workplace has risen to epidemic proportions as have its associated
costs. These cost include the hard, tangible costs such as severance pay, recruitment costs,
orientation costs, time spent reviewing resumes and conducting interviews, as well as pre-
employment drug screening to name a few. Other major costs of employee turnover are more
difficult to quantify but still have an impact on an organization's bottom line. These costs include
reduced employee morale and productivity for starters.
The above regression analysis shows that work compensation work quality and work
environment are the three factors that contribute the most to intention to quit (and hence to
attrition). This means that IT companies need to focus on these aspects to retain employees. Also
out of the above mentioned factors the work environment is the most significant and hence it
needs to be emphasized more upon. In other words, retention of employees should be achieved
by focusing on providing better salary, perks and other benefits and creating a more dynamic
work environment that offers new growth opportunities more frequently on a variety of levels.
Besides that matching job profiles with the skill set of the employee is also very important. This
can be done by making improvements in the hiring process one among them being not hiring
over qualified people for a job that can be done easily by a less qualified person.
References
• Pearson Education – Organizational Behaviour 13e by Stephen P Robbins, Stephen P Robbins
and Timothy A Judge
• Sample Questionnaires by Dr. Bindu Gupta, Faculty, IMT Ghaziabad.
• www.wikipedia.org
35

36. Annexure
Questionnaire
Name
Current employer *
Gender *
• Male
• Female
DIRECTIONS: Please select the level that best represents your level of overall job satisfaction for each
item below. *
Strongly
Strongly Dissatisfie
Satisfied dissatisfie
satisfied d
d
That your views and
participation are
valued?
That your work gives
you a feeling of personal
accomplishment?
That you receive
appropriate recognition
for your contributions?
That your compensation
matches your
responsibilities?
Please rate your agreeableness on the items listed below.
Work environment : *
36

37. Strongly Strongly
Agree Disagree
agree disagree
I have the resources I
need to do my job well
I have all the
information I need to do
my job effectively
My workplace is safe
My work climate
encourages teamwork
and support
Compensation : *
Strongly Strongly
Agree Disagree
agree disagree
I am paid fairly for the
work I do
My salary is competitive
with similar jobs I might
find elsewhere
My benefits (over &
above my pay) are
comparable to those
offered by other
organizations
Work quality : *
Strongly Strongly
Agree Disagree
agree disagree
My responsibilities and
quality of work match
my skills and
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38. Strongly Strongly
Agree Disagree
agree disagree
qualifications
Intention to Quit : *
Strongly Strongly
Agree Disagree
agree disagree
I think a lot about
quitting my job
I am actively searching
for an alternative to my
present job
As soon as possible I will
leave this organization
Organizational Commitment : *
Strongly Strongly
Agree Disagree
agree disagree
If necessary, I am
prepared to put myself
out for this organisation
(e.g. by working long
and/or unsocial hours)
If asked, I am prepared
top take on more
responsibility or tasks
not in my job description
I feel that it is
worthwhile to work hard
for this organisation
I am committed to this
organisation
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39. What are the most crucial reason(s) that will affect your decision if you choose to quit your job *
• Compensation (whole pay package)
• Work environment
• Quality of work
• Want to start your own venture
• Too much work load
• Too little work
• Politics in the organization
• None, I won't quit my job
39