International Conference on Advances in Business Management- ICABM ,14th and 15th Dec 2018,

Symbiosis Institute of Business Management, Pune, India-412115 http://icabm.sibmpune.edu.in/

Authors : Dr. Anil Barilk, SAIL,Rourkela Steel Plant, <dr.anilbarik@gmail.com>

Dr. Bandan Nayak*, SIBM-Bengaluru, <bandana.nayak@sibm.edu.in>

Title: Impact of Employee Satisfaction on Employee Commitment and Organizational

Effectiveness: The Study of a National Public Sector Undertaking Unit

Abstract

The study was undertaken in Rourkela Steel Plant, a unit of Steel Authority of India Ltd.(SAIL).
The rapid change and rigorous competition has compelled the steel sector to adopt a proactive
HR approach towards employee satisfaction, employee commitment and organizational

effectiveness. It is essential to keep a track of the soft part of HR, which is intangible. The

intrinsic value of human resource is to be tapped time and again. It is essential to satisfy the

employees, who are the internal customers of the organization. The organization may achieve its

goal through the satisfied and committed employees. This study has tried to investigate the

impact of employee satisfaction on organizational commitment and organizational effectiveness

in Rourkela Steel Plant (RSP), a public sector undertaking unit, branch of Steel Authority of India

Key Words: Employee Commitment, Employee Satisfaction, Organizational Effectiveness

, Purpose

The purpose of the study was to investigate the impact of employee satisfaction on

organizational commitment and organizational effectiveness in Rourkela Steel Plant, a unit of

SAIL, one of the ‘Maharatna’s in India.

Steel Sector in India

India Limited (SAIL) in India. A sample of 552 was taken from 22 departments of RSP. The

sample was covering 336 executives and 206 non-executives including front-line employees and

supervisors. The study was supported by the alternative hypothesis. The Regression analysis

entails that employee satisfaction affects employee commitment and organizational

effectiveness. The managerial implications are emphasized.

Tata was dominating the Indian steel industry until the 1950s. By 1939, the Tata works were

producing 75 percent of the steel consumed in the then Indian Empire, consisting of the present-

day India, Pakistan, Bangladesh, and Burma. The Indian Iron & Steel Company was set up in

West Bengal in 1918 by the British Firm Burn & Co., with plans to become a rival steelmaker.

As for new projects, in 1953, the government of India signed an agreement with the German

steelmakers Krupp and Demag, on creating a publicly owned integrated steel plant, which was

sited at Rourkela, in the state of Orissa, India, to make use of iron ore mined at Barsua and Kalta.

In order to carry out its side of the agreement the government set up Hindustan Steel Ltd. in

1954, as a wholly state-owned company responsible for the operation of the Rourkela Steel plant.

Later on it became a Unit of SAIL. India is the third largest producer of crude steel in the world.

National Steel Policy 2005 had envisaged steel production to reach 110 million tonnes (Mt) by

2019-20. But due to internal mines scam and market declination, India had suffered in

production for a noticeable period, but while government restriction was overruled, production

again started with full phased, marketing became a problem for most of the steel industry as

China started providing its finished product at the door step with cheaper price in the Indian

market. World crude steel production reached 1,622.8 million tonnes (Mt) for the year 2015,

down by -2.8% compared to 2014. India’s crude steel production for 2015 was 89.6 Mt, up by

2.6% on 2014. Iron and steel are freely exportable and importable which accounts for 9.32mt and

5.59mt respectively in India in 2014-15. So, recently government has taken up certain

programmes to improve the export over import. (Source: Joint plant committee).

Literature Review

Evidence from the field suggests that employee satisfaction is a measure of happy workers at job

and in working environment. There may be many factors affecting the organizational

effectiveness and one of them is the employee satisfaction. Judge, et.al, (2005) viewed that

employee satisfaction is positively correlated with motivation, job involvement, organizational

commitment, life satisfaction, mental health, and job performance and negatively related to

absenteeism, turnover, and perceived stress and identify it as the degree to which a person feels

satisfied by his/her job.

Employee Satisfaction

According to Trombetta and Rogers (1988) when employees were happy, they wanted

participation in decision-making. Happy employees want to be a part of their company inside

and outside of work. They want to provide input, share concerns, and give advice. Unhappy

employees simply want to do their job and then go home and forget about work. Bhatti &

Qureshi (2007) found employee satisfaction as a measure to know how happy workers are

sensing about their job and working environment. They opined that there may be many factors

affecting the organizational effectiveness and one among them is the employee satisfaction;

effective organizations should have a culture that encourages the employee satisfaction.

According to Vipul Chalotra (2013) employees’ satisfaction is now days considered as a brand.

Here brand means a promise, that is, a promise to provide more employee satisfaction than the

competitors. Price (2001) defines employee satisfaction as the effective orientation that an

employee has towards his or her work. It may also be recognized as the individual’s perception

and evaluation of the overall work environment (Sempane, Rieger & Roodt, 2002). Williams

(1995) found a positive relationship between benefit standard comparisons and benefit level

satisfaction. Hughes (2009) recommends to makes it sense that, people those are comfortable

within their working environment will work far more effectively and will enjoy the working

process more than those who are uncomfortable.

Employee Commitment

The empirical results of study made by Osa and Amos (2014) found that employee commitment

to their organization is significant to organization’s performance, which manifest in employees’

skills, performance and devotion to duty so as to fulfill the set organizational goals and
objectives. Peace Irefin, Mohammed Ali (2014) indicated that there is a fairly high relationship

between employee commitment and organizational performance in Coca Cola Company; Plc

implying that employee commitment improves the company’s performance. It is supported by

Biljana Dordevic (2004) that commitment of employees can predict employee’s performance,

absenteeism and other behaviors. Rajendran et.al. (2005) opined that the organizational

commitment is the subset of employee commitment, which comprised to work commitment,

career commitment and organizational commitment which adds a greater organizational

commitment that aid higher productivity. Hye Kyoung Kim (2014) observed that employees’

affective commitment is increased by their experience of work-life balance, a factor of employee

satisfaction, which has a positive impact on performance improvement in terms of in-role

performance. Further, researcher explored that employees can make or break an organization.

Good employees can produce extraordinary results while marginal employees can drag and

keep the organization down; still many employers underestimate the significance of employees

(Deal, 2005). Taylor & Cosenza (1997) viewed that besides affecting productivity, employee

satisfaction also affects the corporate culture of a company. Abdullah et.al (2012) indicated that

job satisfaction can influence an employee’s commitment towards his/her organization. This is

further strengthened by Bateman & Strasser (1984), which discovered that both variants have a

positive relationship. Employee commitment is the link between work commitment and attitude

and behaviours in the workplace, Maxwell & Steele (2008). Employee commitment is multi-

dimensional in nature, encompassing workers’ loyalty, their willingness to exert more effort on

behalf of the organization, adherence to organizational values, and desire to remain in the

organization (Meyer, Allen & Smith, 1993). Zafar Gul (2015) has explored the link between

employee commitment and organizational development. He found that organizations can change

the attitude and behavior of their employees through the application of the employee

commitment factors i.e. performance management, training and development, and fair reward
systems. The results of the study bring out the fact that employee commitment is predictor of

organizational development. Employee commitment found positively and significantly correlated

to organizational outcome, specifically with job satisfaction (Bateman & Strasser, 1984; Gunlu,

Aksarayli, & Perçin, 2010; Kuruuzum, Cetin and Irmak, 2008; Mowday, Porter and Steers,

1982).

Organizational Effectiveness

Organizational effectiveness is the concept of how effective an organization is in achieving the

outcomes the organization intends to produce. Venkatraman and Ramanujam (1986) brought a

conceptual frame work for evaluating organizational effectiveness which is in three levels:

financial performance: rate of income on investment, increase of proceeds of sale etc, per share

earnings: which are mostly utilized conceptions in traditional strategy and business performance:

only includes non-financial indexes, such as market share, new product promotion, product

quality, marketing effectiveness etc. According to Richard et. al (2009) organizational

effectiveness captures organizational performance plus the numerous internal performance

outcomes normally allied with more efficient or effective operations and other external measures

that relate to reflection that are broader than those simply associated with economic valuation

(either by shareholders, mangers or customers), such as corporate social responsibility. Rangriz

Hassan and Soltanieh Farzad (2015) emphasized two things to develop organizational

effectiveness: organisational capabilities and managerial competencies. They viewed that both

contribute significantly to enhancing organisational effectiveness, although the effect of

organisational capabilities on organisational effectiveness is more than that of managerial

competencies. Ajay Ahuja and Vinayshil Gautam (2012) did a survey in data centers and found

out that regular trainings and updates, conducive work environment, promotions based on

achievements, challenging assignments, easy approachability to superiors and higher salaries are

the satisfying factors of employees in data centers and these lead to overall organizational
effectiveness. Sayeed and Vishwanathan (1983), in a study explored relationship between

organizational health and organizational effectiveness and found that organizational health

dimensions, such as addictiveness and organizational excellence, contributed significantly to

organizational effectiveness., while problem solving adequacy and innovation related negatively

with some facet of productivity and adoptability dimensions.

Employee Satisfaction, Employee Commitment and Organizational Effectiveness

There is no such study conducted on establishing all the above relations in a single study by the

researchers so far. Many of them have tried to examine any two constructs or sub constructs of

the above variables at a time. A study by Koh and Boo (2004) in Singapore found a significant

and positive link between job satisfaction and organizational commitment. Mafini and Pooe

(2013) also found the same result. Baxter W. Graham (1996) viewed that unhappy employees are

less productive and more likely to have higher absence rates. Employees are more loyal and

productive when they are satisfied, Hunter & Tietyen (1997). Employee satisfaction to

Organizational Commitment, found that both the factors are closely related, Taylor & Cosenza,

(1997). Employee satisfaction makes good business sense and increases productivity and career

enhancement, Abdulwahab and Shmailan (2016). According to Vipul Chalotra (2013)

employees’ satisfaction is now days considered as a brand. Here brand means a promise i.e. a

promise to provide more employee satisfaction than the competitors. Mosadeghrad and Ferdosi

(2013) found that leadership, job satisfaction and commitment are closely interrelated. Jermier &

Berkes (1979) investigated the relationship between job satisfaction and employee commitment

and found that employees who were more satisfied with their job had higher levels of

organizational commitment.

Design/ Methodology

The study is exploratory in nature. The samples for this study include 552 employees covering

336 executives and 206 non-executives including front-line employees and supervisors from 22
departments of RSP, a public sector undertaking unit of India, adopting convenient sampling

technique. Primary data were collected through administering questionnaire with the consultation

of HR manager along with adopting a web based survey (Google form). Secondary data were

collected from company manuals, annual business reports, departmental documents, house

journals & magazines and company web site.

Hypotheses
H1. Employee Satisfaction significantly affects Employee Commitment.

H2. Employee commitment significantly affects organizational effectiveness.

H3. Employee Satisfaction significantly affects Organizational Effectiveness

Employee
Commitment
H1
Employee
H2
Satisfaction
H3
Organizational
Effectiveness

Figure 1. Hypothesized Research Model

Source: Authors’ own

Measures

The study has used three instruments, Part A: Employee Satisfaction Questionnaire (ESQ), Part

B: Employee Commitment Questionnaire (ECQ) and Part C: Organizational Effectiveness

Questionnaire (OEQ). ESQ is a modified version of Minnesota Satisfaction Questionnaire

(MSQ) developed Weiss et al.’s (1967). We have chosen 7 sub scales out of the original MSQ

instrument and added 3 new-sub scales comprising 46 items, based on literature reviews. Those

are: Health & Safety, Company Leadership and Company ethics & values (Blair, E., 1999,

Greenwood, J., and H. Wolf, 1987, J.W.1984, Koh, H. C., and Boo, H. Y., 2001). Some
dichotomous questions were modified to simple form keeping the view unchanged. ECQ is a

three component model questionnaire, affective commitment, continuance commitment and

normative commitment, which was developed by Meyer and Allen, 1990 and OEQ instrument, is

based on the organizational effectiveness scale (Daftuar (1983). These subscales were

constructed through an empirical approach that relied on Cronbach's Alpha and validated

initially by subject experts and then fine tuned by confirmatory factor analysis, considering the

average variance extracted (AVE) value >0.5.

Table 1: Reliability Statistics (Item Wise)

Item-Total Statistics
Cronbach's
Items Alpha if Item
Deleted
Scale A : Employee Satisfaction Questionnaire
JS Job Satisfaction .839
QL Quality of Life .835
MF Motivational Factor .837
HS Health & Safety Factor .836
WC Working Condition .836
CD Career Development .838
TD Training and Development .837
WL Work Life Balance .848
CL Company Leadership .835
EV Ethics and Values .833
Overall ES Combined Employee Satisfaction .837
Scale B : Employee Commitment Questionnaire
AC Affective Commitment .848
CC Continuance Commitment .858
NC Normative Commitment .854
Overall EC Combined Employee Commitment .853
Scale C : Organizational Effectiveness Questionnaire
CO Consensus .842
LG Legitimization .842
NI Need for Independence .858
SC Self-Control .857
JI Job Involvement .854
 IV Innovativeness .853
OA Organizational Attachment .845
Overall OE Combined Organizational Effectiveness .850

The Table 1 represents the reliability statistics of all the twenty scales used in the present study.

The combined Cronbach’s alpha value of all the twenty items are coming above 0.8, which

reveals that the items used in the questionnaire are internally homogenous and consistent.

Therefore, all the factors and variables in the questionnaire are significantly contributing the

study of Employee satisfaction, Employee commitment and Organizational effectiveness of

Rourkela Steel Plant.

Table 2: Goodness of fit indices obtained in the confirmatory factor analysis for developed
Employee Satisfaction Scale (ESQ)
Model Fit Summary (Scale A: Employee Satisfaction Scale)
Goodness–of-fit Statistics Absolute Fit Indices
Chi- Degree of Probability GFI RMSEA RMR SRMR CMIN/DF AGFI
square
Freedom P
401.069 35 0.000 .856 .08 .054 11.459 .773
Incremental fit indices Parsimony fit index
NFI TLI CFI RFI PNFI
.837 .805 .849 .791 0.651

The above Table-2 shows the factors having a model fit indices (CFI= 0.849 eqv.to 9), AGFI=

0.773. It clearly indicates that the outcome of model fitness test validates the new scale of

employee satisfaction (ESQ).

The second instrument was Employee Commitment Questionnaire (ECQ), developed by Allen

and Mayor (1990); eight items were selected for inclusion in each of the Affective Commitment

(AC), Continuance Commitment (CC) and Normative Commitment (NC).

The third instrument, Organizational Effectiveness Questionnaire (OEQ) Scale, used in this

study has been developed by Dr. C.N. Daftuar (1983). The original scale measures nine (9)
dimensions of organizational effectiveness. The instrument was modified and comprised of (7)

sub scales, those are, Consensus (CO), Legitimization (LG), Need for Independence (NI), Self

Control (SC), Job involvement (JI), Innovativeness (IV) and Organizational Attachment (OA).

Reliability and validity were tested by Cronbach’s Alpha and Expert opinion followed by CFA

respectively, as stated earlier.

Findings

Table 3: Demographic variables

Cumulative
Particulars Frequency Percent
Percent
AGE
18 - 28 yrs 56 10.1 10.1
29 - 38 yrs 177 32.1 42.2
39 - 48 yrs 195 35.3 77.5
48 yrs & above 124 22.5 100
GRADE
worker 76 13.8 13.8
Supervisor 130 23.6 37.3
Lower Mgmt 88 15.9 53.3
Middle Mgmt 150 27.2 80.4
Senior Mgmt 108 19.6 100
EDUCATION
ITI/ Trainee 88 15.9 15.9
Diploma 80 14.5 30.4
BE/ B.Tech/ M.Tech 245 44.4 74.8
Graduate & Above 61 11.1 85.9
Professional 78 14.1 100
LENGTH OF SERVICE
Below 5 yrs 130 23.6 23.6
6 - 10 yrs 89 16.1 39.7
10 - 15 yrs 109 19.7 59.4
15 yrs & Above 224 40.6 100
GENDER
Male 482 87.3 87.3
Female 70 12.7 100
INCOME P.A
3 - 5 lakhs 136 24.6 24.6
5 - 8 lakhs 190 34.4 59.1
8 - 12 lakhs 101 18.3 77.4
12 - 15 lakhs 48 8.7 86.1
15 lakhs & Above 77 13.9 100
Total 552 100
The classification of respondents in Table -3 depicts the demographic variations. The samples by

gender, out of 552 respondents’ majority are male, 87.30% and few are females, 12.7%. Among

the total respondents, majorities are from the age group of 39- 48 yrs (35.3%), and the young

generation of age, 18-28years are very less, that is, 10.1%. Response of this group is low, may be

due to unaware of sought information about the company or hesitance due to fear of expressing

their views. Grade wise distribution shows that most of respondents belong to middle

management category. On the other hand, only 13.8% respondents are of front line workers. In

education variation, 44.40% are technical degree holders, 14.5% are of diploma, 15.9% are ITI/

trainee and 14.1% are professionals. Most of the respondents (40.6%) have more than 15 years of

experience in the present company, 19.70 % have 10 to 15 years, 16.1% have 6 to 10 years of

experience and 23.6 % have less than 5 years of experience. 24.6% respondents are earning 3 to

5 lakhs rupees p.a, 34.4% earn 5 to 8 lakhs, 18.3% earn within 8-12 lakhs, 8.7% earn 12-15 lakhs

and 13.9% respondents earn 15 lakhs and above per year.

Testing of Hypotheses

A regression analysis in SPSS Statistics was used to reject or accept the suggested hypotheses of
the study, (H1): Employee Satisfaction significantly affects Employee Commitment.

Table-4 Model Summary

R Adjusted Std. Error of the
Model R
Square R Square Estimate
1 .348a .332 .341 .476

a. Predictors: (Constant), Employee Commitment

The above Table-4, shows the testing of the mediating Variable (EC –Employee Commitment)
relates to Dependent Variable (ES – Employee Satisfaction), we have applied regression
analysis. The R square value 0.332 reveals that the mediating variable “Employee Commitment”
influence the dependent variable “Employee Satisfaction” by 33.20 per cent.
 Table-5 Model ANOVAa
Sum of Mean
Model df F Sig.
Squares Square
Regression 2.968 1 2.968 6.491 .011b
1 Residual 251.489 550 .457
Total 254.457 551
a. Dependent Variable: Employee Satisfaction
b. Predictors: (Constant), Employee Commitment

Further, the above Table-5 shows the significance value of ANOVA in regression model, which
is reflecting 0.011. This indicates the model is significant i.e. there is a relationship between
mediating Variable/Independent variable (EC –Employee Commitment) to Dependent Variable
(ES – Employee Satisfaction).

ANOVA is a subsequent outcome of regression analysis used to test the validity model. Here we
used ANOVA to give a clear picture of both the independent and dependent variable.

Table-6 Regression Coefficientsa

Unstandardized Standardized
Coefficients Coefficients
Model t Sig.
Std.
B Beta
Error
(Constant) 2.646 .222 11.918 .000
1 Employee
.176 .069 .108 2.548 .011**
Commitement
a. Dependent Variable: Employee Satisfaction
*Significant at 5 per cent level

The above Table-6 depicts significant value of t-test of the independent variable “Employee
Commitment” is 0.011. This reveals that the Employee Commitment (independent variable) is
significant towards employee satisfaction (dependent variable). Hence, the hypothesis is hereby
Supported.

Hypothesis 2. (H2)- Employee Commitment significantly affects Organizational Effectiveness.

Table-7 Model Summary

R Adjusted Std. Error of the
Model R
Square R Square Estimate
 1 .316a .314 .312 .435
a. Predictors: (Constant), Employee Commitment

In the above Table-7 shows the model of testing the Independent Variable, Employee
Commitment (EC) relates to the Dependent Variable, Organizational Effectiveness (OE). We
have applied regression analysis. The R square value 0.314 reveals that the independent variable
‘Employee Commitment’ influence the dependent variable “Organizational Effectiveness” by
31.4 per cent.

Table-8 Model ANOVAa

Model Sum of Squares df Mean Square F Sig.

Regression 2.156 1 2.156 7.534 .006b

1 Residual 157.436 550 .286
Total 159.592 551
a. Dependent Variable: Organizational Effectiveness
b. Predictors: (Constant), Employee Commitment
*Significant at 1%t level

Further, the significance value of ANOVA as shown in Table-8, in the above regression model is
coming 0.006. This indicates the model is significant; i.e. there is a relationship between
independent Variable (EC – Employee Commitment) to Dependent Variable (OE –
Organizational Effectiveness), which is significant at 1% level.

Table-9 Regression Coefficientsa

Unstandardized Standardized
Model Coefficients Coefficients t Sig.
B Std. Error Beta
(Constant) 2.995 .176 17.050 .000
1 Employee
.150 .055 .116 2.745 .006*
Commitment
a. Dependent Variable: Organisational Effectiveness
*Significant at 1 per cent level

Table-9 represents the significant value of t-test of the independent variable “Employee
Commitment” is 0.000. This reveals that the independent variable is significant towards
Organizational Effectiveness. Hence, it is accepted that proposed hypothesis - Employee
Commitment significantly affects Organizational Effectiveness is hereby Supported.

Hypothesis 3 (H3) - Employee Satisfaction significantly affects Organizational Effectiveness.

 Table-10 Model Summary
Adjusted
R Std. Error of
Model R R
Square the Estimate
Square
1 .338a .354 .313 .240
a. Predictors: (Constant), Organisational Effectiveness

Table-10 shows the model of testing the Independent Variable (ES – Employee Satisfaction)
relates to Dependent Variable (OE – Organizational Effectiveness). The regression analysis
depicts the R square value 0.354, which entails that the independent variable “Organizational
Effectiveness” influences the dependent variable “Employee Satisfaction” by 35.4 per cent.

Table-11 Model ANOVAa

Sum of Mean
Model Df F Sig.
Squares Square
1 Regression 29.057 1 29.057 70.903 .000b
Residual 225.399 550 .410
Total 254.457 551
a. Dependent Variable: Employee Satisfaction
b. Predictors: (Constant), Organisational Effectiveness

Further, the significance value of ANOVA in the above Table-11 represents the regression
model, which shows 0.000. This indicates that the model is significant; i.e. there is a highly
significant relationship between independent Variable (ES – Employee Satisfaction) to
Dependent Variable (OE – Organizational Effectiveness).

Table-12 Regression Coefficientsa

Regression Coefficientsa

Unstandardized Standardized
Model Coefficients Coefficients t Sig.

B Std. Error Beta

(Constant) 1.725 .178 9.685 .000
1 Organizational
.427 .051 .338 8.420 .000*
Effectiveness
a. Dependent Variable: Employee Satisfaction
*Significant at 1 per cent level

Table-12 represents the significant value of t-test of the independent variable ‘employee
satisfaction’ and dependent variable “Organizational Effectiveness”, which is 0.000. This reveals
that the independent variable is significant towards dependent variable. Hence Hypothesis (H3)
Employee Satisfaction significantly affects Organizational Effectiveness is Accepted.

Result demonstrated that employees are satisfied irrespective of age, grade, educational

qualification, length of service and annual income but it differs gender wise. Female employees

are not satisfied. It may be the reason that as the selected universe (Rourkela steel plant) is an

industrial unit, women employees are not satisfied with their job.

Findings also reveals that, commitment level of employees is not related with age, grade,

educational qualification, gender but it is associated with length of service and annual income.

Employees earning higher salary and employee with long time experience/association with

company are committed

Further result exhibits that organizational effectiveness is related with employee’s age, grade,

educational qualification, service tenure, gender and annual income. This implies that employees

are having contribution towards profitability of organization.

Research Limitation

The research was limited to a unit of a public sector steel industry in India. There was also

money and time constraint. Employees were sometimes not able to devote time whole heartedly

to fill up the questionnaire as they fill that they are not going to get any direct compensation for

that. A lot of research done on individual case of Employee Satisfaction and their Commitment.

Also several literatures are available on evaluation of Organizational effectiveness on employee

satisfaction in Indian context, still the gaps in research are found both in terms of areas & size or

scope of studies.

Practical Implication

The study of employee satisfaction followed by employee commitment may give the business

world an input ok knowledge that the satisfied employees may or may not be always committed

fully. The study has tried to explore the extent employee satisfaction has a linkage with
employee commitment and organizational effectiveness. The management. Board of directors,

departmental heads and the HR professionals will internalize this matter and can reframe their

HR policies accordingly and try to convert the employees committed by adding some other tips

along with employee satisfaction to achieve organizational effectiveness. At present, the Indian

steel industry has reported that it has found difficult to attract talents and retain them due to the

fact that, there are alternative jobs available with high salary, like in IT and other private

companies. Hence, this study may be helpful to achieve employee satisfaction, talent

management and employee retention.

Conclusion

The problem with Indian steel industry is that, it is continuously facing losses as China is

increasing its export to Indian market at low price. To balance and support the indigenous steel

market, Government as well as steel manufacturer is adopting different strategy to achieve a

turnaround. But, lowering the cost of production is also an important aspect/contribution to make

up the losses. For that organization should be effective. How to achieve organizational

effectiveness was the problem. Result demonstrated the answer that organizational effectiveness

can be improved through committed employees. And finally it portrayed that employee

commitment and employee satisfactions were positively and significantly correlated with

organizational effectiveness. Further, the study was able to do the internal analysis based on the

quantitative and qualitative data that employees of RSP are taking their job very challengingly

and are satisfied with the job safety. They are leading a peaceful life. As such RSP is a public

sector unit, thereby observing the statutory norms for safety in accordance. There is good

synergy at departmental level. Co-workers are co-operative and helpful. But proper medical

treatments on the spot/working areas are not available. Though employees are getting time based

promotion, but they are not satisfied, they also want more training to keep them up to date with

the new technology. Employees are satisfied with overall company ethics and are emotionally
attached to the company. They like to continue with their present organization as they feel hard

to find an equal opportunity employer. They are self competent to carry out their job

independently.

No study was available, finding the link between the factors of organizational effectiveness like

employee satisfaction and employee commitment with respect to steel sector. The study

identified the gap in research which is, absence of a holistic model linking employee

commitment and satisfaction level with the effectiveness of organization has been fulfilled. This

study has this uniqueness and furthering similar research in this sector will be a mile stone.

In conclusion, generalization of the research was presented, highlighting the fact that the result of

the empirical study provided, it is evidenced that there is impact of employee satisfaction on

employee commitment and organizational effectiveness in Rourkela Steel Plant, a public sector

unit in India.

Future Scope

The current study involves only employees of SAIL- Rourkela Steel Plant located in Odisha,

India. Further, this study can be extended by taking all units of SAIL across the nation, then

across the globe. The future researcher can conduct a comparative study between public and

private steel manufacturing organizations. The study can also be explored across sectors. Other

HR dimensions can be added with employee engagement, cordial employee relations with

employee satisfaction and commitment. It can also be linked to leadership, Organizational

citizenship behavior, employee retention etc.

References:

1. Abdullah, Rahman Bin, Razlan Adli Zain, Mushaireen Musa (2012), The Effects of
Teamwork towards Jobs Satisfaction in Hotel Industry in Klang Valley, Malaysia,
International Journal of Business and Behavioral Sciences, Vol. 2, No.3
2. Abdulwahab S. Bin Shmailan (2016), The relationship between job satisfaction, job
performance and employee engagement: An explorative study, Issues in Business
 Management and Economics Vol.4 (1), pp. 1-8, Available online at
http://www.journalissues.org/IBME/ http://dx.doi.org/10.15739/IBME.16.001
3. Ahuja, Ajay and Gautam, Vinayshil (2012) Journal of Services Research, Volume 12,
Number 1 (April - September 2012), Pp.7-24, ©2012 by Institute for International
Management and Technology
4. Bateman, T., & Strasser, S. (1984). A longitudinal analysis of the antecedents of
organizational commitment. Academy of Management Journal, 21, 95-112
5. Baxter W. Graham (1996), “The Business Argument for Flexibility,” HRMagazine (May
1996)
6. Bhatti, K., & Qureshi, T. (2007). Impact of employee participation on job satisfaction,
employee commitment and employee productivity. International Review of Business
Research Papers, 3(2), Pp.54 – 68
7. Biljana Dordevic,(2004).Employee Commitment in Times of Radical Organizational
Changes.Economics and Organisation, 2, 2, 111-117
8. Blair, E. (1999), “Behavioral Safety: Myths, Magic & Reality.” Professional Safety,
Aug.1999
9. Browne, M. W., and Cudeck, R. (1993), "Alternative Ways of Assessing Model Fit." In
Testing Structural Equation Models, ed. K. A. and J. S. Long. Newbury Park, CA: Sage,
pp. 136-162
10. Deal, Jack. (2005), Employees: Greatest asset or greatest expense. Retrieved on March 15,
2005 from http://www.dealconsulting.com/personnel/employee.htm
11. Greenwood, J., and H. Wolf (1987), “Job Satisfaction Affects Rates of Occupational
Accidents.” West Virginia News Digest, Nov,1987.
12. Gunlu, E., Aksarayli, M., & Perçin, N. S. (2010). Job satisfaction and organizational
commitment of hotel managers in Turkey. International Journal of Contemporary
Hospitality Management, 22, 693-717
13. Hub, L. and Benter, P. (1999), "Cut-Off Criteria for Fit Indexes in Covariance Structure
Analysis: Conventional Criteria Versus New alternatives", Structural Equation Modeling,
6: 1-55
14. Hughes Phil, Ferrett Eds (2009). Introduction to Health and Safety at Work. Elvister
Limited, Slovenia
15. Hunter, W., & Tietyen, D. (1997). Business to business marketing: Creating a community
of customers.Lincolnwood-Illinois, McGraw-Hill Professional
16. Hye Kyoung Kim (2014), Work-Life Balance and Employees’ Performance: The
Mediating Role of Affective Commitment, Global Business and Management Research:
An International Journal Vol. 6, No. 1 , Pp 37-51
17. Jermier, J. & Berkes, L. (1979). Leader behavior in a police command bureaucracy: A
closer look at the quasi-military model. Administrative Science Quarterly, 24, 1-23
18. Judge, T.A., Erez, A., Bono, J., and Locke, E.A., (2005), “Core self evaluations and job
and life satisfaction: the role of self concordance and goal attainment”, Journal of Applied
Psychology, Vol. 90, No. 2, 257-268.
19. Koh, H. C., Boo, E. H. Y. (2001), "The Link Between Organizational Ethics and Job
Satisfaction: A Study of Managers in Singapore", Journal of Business Ethics, 29 (4), 309-
324
20. Koh, Hian Chye and Boo, El’fred H.Y. (2004) Organizational ethics and employee
satisfaction and commitment, Management Decision, Vol.42, Issue 2, ISSN:0025-1747
21. Kuruuzum, A., Cetin, E. I., & Irmak, S. (2008). Path analysis of organizational
commitment, job involvement and job satisfaction in Turkish hospitality industry. Tourism
Review, 64(1), 4-16
22. Mafini, Chengedzai and Pooe, David R.I. (2013) The relationship between employee
satisfaction and organizational performance: Evidence from a South African Government,
SA Journal of Industrial Psychology, Vol.39, No.1
23. Maxwell G. and G. Steele (2008), “Organizational Commitment: A Study of Managers in
Hotels,” International Journal of Contemporary Hospitality Management, Vol. 15, No. 7,
2008, 362-369. doi:10.1108/09596110310496006
24. Mayer, J.P., Allen, N.J., & Smith, C.A. (1993). Commitment to organizations and
occupations: Extension and test of three-component conceptualization, Journal of Applied
Psychology, 78,538-551
25. Mosadeghrad, Ali Mohammad and Ferdosi Mosoud (2013) Leadership, Job satisfaction
and Organizational Commitment in Health Care Sector: Proposing and Testing a Model,
Journal of Academy of Medical Sciences of Bosina and Herzegovina, Vol.25, Issue 2,
Pp.121-126
26. Mowday, R., Porter, L., & Steers, R. (1982). Organizational linkages: The psychology of
commitment, absenteeism, and turnover. New York: Academic Press
27. Osa and Amos, The impact of organizational commitment on employee productivity: A
case study from Nigerian Brewery company, IMPACT: International Journal of Research
 in Business Management (IMPACT: IJRBM), ISSN(E): 2321-886X; ISSN(P): 2347-4572,
Vol. 2, Issue 9, Sep 2014, 107-122
28. Peace Irefin, Mohammed Ali (2014), Effect of Employee Commitment on Organizational
Performance in Coca Cola Nigeria Limited Maiduguri, Borno State, IOSR Journal of
Humanities and Social Science (IOSR)
29. Price, J.I. (2001). Reflections on the determinants of voluntary turnover. International
Journal of Manpower,22(7), 660–624. http://dx.doi.org/10.1108/EUM0000000006233
30. Rajendran Muthuveloo and Raduan Che Rose (2005). Typology of Organizational
Commitment.American Journal of Applied Science, 2,6,1071078-1081
31. Rangriz, Hassan and Soltanieh, Farzad (2015) Exploring the Effects of Organisational
Capabilities and Managerial Competencies on the Organisational Effectiveness, Journal of
Strategic Human Resource Management, Volume 4 Issue 2, Pp.1-14
32. Richard, Pierre J. and Timothy M. Devinney (2009), Measuring Organizational
Performance: Towards Methodological Best Practice, Journal of Management, Sage,
Publication, 35:718
33. SAIL, annual Report, (2014-15), Steel authority of India limited
34. Sayeed O.B. and Vishwanathan R (1983), “Job satisfaction in relation to Organization
effectiveness in two organizations”, Indian journal of Industrial Relation, Vol.19, No. 1,
Jul, 57-68
35. Sempane, M.E. Rieger, H.S., & Roodt, G. (2002). Job satisfaction in relation to
organisational culture. Journal of Industrial Psychology, 28(2), 23–30.
36. Taylor, S, L. & Cosenza, R.M. (1997), Internal Marketing Can Reduce Employee
Turnover. Supervision, 58(1), 3-5
37. Taylor, S, L. & Cosenza, R.M. (1997), internal marketing can reduce employee
turnover.Supervision, 58(1), 3-5
38. Trombetta, J J. & Rogers, D.P (1988). Communication climate, job satisfaction, and
organizational commitment: The effects of infonnation adequacy, communication
openness, and decision participation. Management Communication Quarteriy, U4), Pp.494-
514
39. Venkatraman N, and Vn Ramanujam (1985), Measurement of Business Performance in
strategy research: a comparison of approaches, The academy of management review, vol.
11, Issue 4(oct,1986) , 801-814
40. Vipul Chalotra (2013), [Employee satisfaction: the modern brand of business, Journal of
Exclusive Management Science –January 2013-Vol 2 Issue 1-ISSN 2277–5684
41. Vipul Chalotra (2013), [Employee satisfaction: the modern brand of business, Journal of
Exclusive Management Science –January 2013-Vol 2 Issue 1-ISSN 2277–5684
42. Williams M.C. (1995), “Antecedents of Employee Benefit Level Satisfaction: A Test of a
Model», Journal of Management, 1995, 21 (6), 1097-1128
43. www.jpcindiansteel.nic.in/ www.sail.co.in
44. Zafar Gul (2015) Impact of Employee Commitment on Organizational Development, FWU
Journal of Social Sciences, Winter 2015, Vol.9, No.2, 117-124