Employee perception and commitment impact on IT sector performance

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International Journal of Management (IJM)
Volume 11, Issue 12, December 2020, pp. 4229-4239, Article ID: IJM_11_12_403
Available online at https://iaeme.com/Home/issue/IJM?Volume=11&Issue=12
ISSN Print: 0976-6502 and ISSN Online: 0976-6510
DOI: https://doi.org/10.34218/IJM.11.12.2020.403
© IAEME Publication Scopus Indexed
A STUDY ON EMPLOYEE PERCEPTION
TOWARDS ORGANISATIONAL COMMITMENT
AND ITS IMPACT ON EMPLOYEE’S
PERFORMANCE WITH SPECIAL REFERENCE
TO INFORMATION TECHNOLOGY SECTOR
EMPLOYEES WITH CHENNAI REGION
K. Domnic Thavagnana Nachathiram
Research Scholar, Department of Management,
Marudupandiyar College, (Affiliated to Bharathidasan University),
Vallam, Thanjavur, Tamil Nadu, India
Dr. P. Murali
Assistant Professor, Department of Management,
Marudupandiyar College, (Affiliated to Bharathidasan University),
Vallam, Thanjavur, Tamil Nadu, India
ABSTRACT
The organizations in both public and private sectors have been putting their efforts
toward creating performance culture, which is characterized by a search for strategies
to improve the contribution of both individuals and organizations to enhance the
performance. The Organizational Commitment is found to be one of the factors
associated with enhancing Job Performance. Higher affective Commitment towards an
organisation is considered an important determinant of dedication and loyalty.
Affectively committed employees considered to be having a sense of belonging and
identification exhibit their increased involvement in organisation’s activities and their
desire to perform well in the organisation. The perception that organisation values their
wellbeing evidently led employees’ to identify the organization’s wellbeing with their
own. This study portrait the behavioral aspects of the employees of the firm, exhibiting
their commitment to the organization.
Key words: Performance, Behaviour, Perception, Commitment
Cite this Article: K. Domnic Thavagnana Nachathiram and P. Murali, A Study on Employee
Perception Towards Organisational Commitment and its Impact on Employee’s Performance
with Special Reference to Information Technology Sector Employees with Chennai Region,
International Journal of Management (IJM), 11(12), 2020, pp. 4229-4239.
https://iaeme.com/Home/issue/IJM?Volume=11&Issue=12

A Study on Employee Perception Towards Organisational Commitment and its Impact on Employee’s
Performance with Special Reference to Information Technology Sector Employees with Chennai
Region
1. INTRODUCTION
The drastically changing global scenario have geared the corporate industrial houses themselves
to meet the challenges and organizational commitments in accordance with the changing
situation. There are some prevailing grey areas such as change in job attitudes, organizational
climate, work values held by an employee along with employee’s attitude toward different types
of work, which need to be taken into account and addressed in specific. All these factors are
interdependent and they together influence productivity. An intense analysis of job satisfaction,
organizational commitment and job performance needs to be undertaken with particular
significance on the various industrial and service sectors of the countries with developing
economies, where it is most necessary to maximize employee contribution inspite of prevailing
lack of resources. Keeping in view the work load of the production units, the responsibilities of
the managerial personnel can hardly be over emphasized. They play a significant role in
decision-making and resource allocative roles in an organization. They are responsible to
implement the decisions of higher management and carryout effective coordination of inter-
departmental activities.
The outcomes of job satisfaction and organizational commitment that directly affect the
productivity include turnover, turnover intentions, absenteeism, job performance,
organizational behavior, employee health and well-being. It is increasingly realized that people
working in organizations have their own needs, motivations and expectations and that their
contribution to the organization is more than that of any other resource being used. No
organization can be run successfully unless the human resource is managed well. The
proficiency of the human factor in accomplishing things can be improved and there by
organizational effectiveness can be achieved. This study thus tries to identify the impact of
organizational commitment and employee performance over job satisfaction in connection with
the employees behavioural factors in the organization. The commitment to the organization is
an important behavioural dimension which can be utilized to evaluate employee’s strength of
attachment.
The Organizational Commitment is on the extent to which employees identify with
organizational goals, values, organizational membership and intend to work hard to attain the
overall organizational mission. The organizations in both public and private sectors have been
putting their efforts toward productivity, which is characterized by a search for strategies to
improve the contribution of the individuals and organizations to enhance their performance.
Despite deep and extensive changes that exist in the economic and social system of the world
and the new definitions that have been presented in regard to the relations between the
individual and the organization, the thought of commitment is still the subject of many
managements survey and studies.
2. REVIEW OF LITERATURE
Liou (2008) attributes the success of an organization to the employees’ commitment and
participation. She said that a high-commitment environment improves employee retention rate,
reduces operating costs and promotes employee performance and efficiency.
Allen and Meyer (2004) believe that strong organizational commitment causes employees
to work harder in order to achieve the objectives of the organization. An employee with high
level of organizational commitment sees himself as a true member of the organization and is
more likely to embrace company values and beliefs and will be more tolerant of minor sources
of dissatisfaction.

K. Domnic Thavagnana Nachathiram and P. Murali
Organizational commitment is measured in a variety of ways. Utapao (2003) measured
commitment in terms of two dimensions: acceptance of division goals and values, and desire to
stay with the organization.
Quevedo (2006) measured it along three domains, namely, sense of identification with the
organization’s goals, feeling of involvement in organizational duties and feeling of loyalty for
the organization.
Lai (2001), Cabautan (2002) and Daylo (2008) measured it in terms of affective,
continuance and normative commitment. Akintayo (2010) and Tumwesigye (2010) noted that
one of the reasons why commitment has attracted research attention is that organization depends
on committed employees to create and maintain competitive advantage and achieve superior
performance.
Commitment employees who are highly motivated to contribute their time and energy to
the pursuit of organizational goals are increasingly acknowledged to be the primary asset
available to an organization (Hunjra, 2010). They provide the intellectual capital that, for many
organizations, has become their most critical asset (Hunjra, 2010). Furthermore, employees
who share a commitment to the organization and their collective well-being are more suitable
to generate the social capital that facilitates organizational learning.
According to Loscocco (1989), as people play a variety of roles in life, they make choices
about the relative importance of work. The concept of work commitment has received growing
attention from researchers (Cohen, 2000). According to Rousseau (1989), new age employees
demonstrate high levels of work commitment, which is commitment not to the organization or
career, but to the Work itself. However the conditions of the new organizational paradigm once
again seem to challenge this conventional wisdom by creating work arrangements that ensure
work commitment while paying little attention to developing organizational commitment.
Organizational commitment is the notion which has attracted the various practitioners and
scholars of human resource management because it influences the organizational and
employee’s performance, Robbins (2005). Previous studies that employee’s show commitment
due to various reasons such as sense of obligation, costs associated with leaving organization,
and attachment with organizational values, Meyer & Allen (1997). Organizational commitment
is a multinational construct in which an employee exerts effort, show congruency with value
and goals of organization and have a desire to organizational membership, Brown (2003).
Commitment is the kind of bond among organization and employee in which he/she is working.
(Buchanan (1974)).
Organizational commitment is conceptualized in three ways: affective commitment,
normative commitment, and continuance commitment. Affective commitment is a sense of
attachment and a feeling of belonging to the organization. Normative commitment is a feeling
of obligation on the part of employees to maintain employment. Continuance commitment is
an awareness of costs associated with leaving the organization or awareness of lack of
alternatives (Hartmann & Bambacas, 2000; Tan & Akhtar, 1998).
According to an enormous number of studies on organizational commitment, it was found
that there was a relationship between organizational commitment and attitudes and behaviors
of employees in the workplace (Porter et al., 1974, 1976; Koch and Steers, 1978; Angle and
Perry, 1981). Therefore, organizational commitment has an important role and place in the
study of organizational behavior.
In addition, Batemen and Strasser (1984) state that “the reasons for studying organizational
commitment are related to cognitive constructs such as job satisfaction, characteristics of the
employee’s job, and role, such as responsibility”.

Region
Organizational commitment is conceptualized in three ways: affective commitment,
normative commitment, and continuance commitment. Affective commitment is a sense of
attachment and a feeling of belonging to the organization. Normative commitment is a feeling
of obligation on the part of employees to maintain employment. Continuance commitment is
an awareness of costs associated with leaving the organization or awareness of lack of
alternatives (Hartmann & Bambacas, 2000; Tan & Akhtar, 1998)
The practice of the organizations with regards to their employees’ commitment has been
different if we compare the past to the present. In the past, organizations secured the loyalty of
their employees by guaranteeing job security. However, many organizations have practiced
downsizing, restructuring and transformation as a response to competitive pressures. Hence,
they created a less secure organization climate. Therefore, a growing number of employees feel
that they are victims of broken promise. One of the challenges facing organizations involves
maintaining employee commitment (Bergmann, Lester, De Meuse & Grahn, 2000).
Solinger, Van Olffen and Roe (2008) offer a conceptual critique of the three-component
model and especially on the instruments. They argue that the three component model is
inconsistent. Solinger et al. (2008) and others, found that affective and normative commitment
are strongly correlated with the note that affective commitment is the most reliable and strongly
validated base of organizational commitment. Affective commitment has also been found to
correlate with the widest range of behavioral criterion variables (Meyer and Herscovitch, 2001).
In contrast with affective and normative commitment, continuance commitment seems to have
a negative or no relationship with desired employee behavior.
Randall and Cote (1990) view normative commitment in terms of the moral obligation
the employee develops as a consequence of organizational investment in him/her. For
instance, an employee whose organization granted him extended leave when a family
member was unwell might believe that he/she can repay the organization by continuing to
work for it. This is related to the concept of reciprocity (Gouldner, 1960) In general,
normative commitment is most likely when individuals find it difficult to reciprocate the
organization’s investment in them.
Jaros et al. (1993) view normative commitment as moral commitment. According to them,
normative commitment reflects a sense of duty, or obligation or calling to work in the
organization and not emotional attachment. They bring out a clear difference between affective
and normative commitment. Further, normative commitment implies commitment to an
employing organization through internalization of its goals, values and missions and not
through personal calculations of sunk costs or perceived lack of alternatives. Therefore,
normative commitment is also clearly distinguishable from continuance commitment.
3. STATEMENT OF THE PROBLEM
The efficiency of an organization depends to a greater extent on the proper utilization of its
human resources. Efficient and effective HRM have become the key to the excellent
performance of an organization. Today, Cooperative movement faces a number of challenges
like lack of internal resources and poor mobilization of external resources, inadequate
infrastructure, apathy of members towards management, lack of accountability, increasing
sickness, dormancy, low level professionalism, excessive government control, political
interference, dominance of vested interests over the management, lack of human resources
development, education and training. Organizational Commitment is the strength of an
employee’s involvement in the organization. Employers are sometimes baffled when their
highly-rated employees under-perform and others resign and leave the organization.

Management fail to understand why some employees are not committed to the organization
even though they have proactively implemented fair compensation policies and human resource
(HR) practices to motivate and retain them. It can be costly if employees are not committed in
their jobs, and if they lack the motivation to exercise their full potentials.
Lack of organization commitment gave negative effects on employee productivity which to
a large extent contribute immensely to failure of organization not achieving their goals.
Employee commitment seems to be a crucial factor in achieving organizational success.
Individuals with low levels of commitment will do only enough to work by. They do not put
their hearts into the work and mission of the organization. They seem to be more concerned
with personal success than with the success of the organization as a whole. People who are less
committed are also more likely to look at themselves as outsiders and not as long – term
members of the organization. An attractive job offer elsewhere is very likely to result in their
departure. By contrast, employees with high commitment to an organization see themselves as
an integral part of the organization. Anything that threatens the organization is an imminent
danger to them as well. Such employees become creatively involved in the organizations
mission and values, and constantly think about ways to do their jobs better. In essence,
committed employees work for the organization as if the organization belongs to them. The
relationship between employee commitment and performance has been studied under various
aspects. In this study, we investigate if the employees are perceived to be high and average
performers exhibiting different degrees of commitment and job performance in addition to their
in-role behavior.
4. RESEARCH DESIGN
The role of research has greatly increased in the field of business and economy. The study of
research methods provides us with the knowledge and skills you need to solve the problems
and meet the challenges of today’s modern pace of development. The usefulness and
contribution of research in assisting management decisions is so crucial that it has given rise to
the opening of a new field altogether called ‘research methodology’. Research in common
context refers to a search for knowledge. It can also be defined as a scientific and systematic
search for gaining information and knowledge on a specific topic or phenomena. It requires a
strong base to research, and it leads to a reliable as well as valid interpretations. In this sense,
the research methodology acts as a basement of any type of research. A qualitative research
study is undergone in the natural settings, by making sense of or interpreting phenomena in
terms of the meanings people bring to them. On this issue of sense-making, it is understood that
the qualitative research has an interpretive characteristic which aims at discovering the
meanings of the events for the individuals who experience them, and the interpretations of those
meanings by the researcher will be the outcomes or product of the research.
5. OBJECTIVE OF THE STUDY
To study the Performance of the employees on employee perception towards organisational
commitment with special reference to information technology sector employees with Chennai
region
5.1. Sources of Data used
The secondary and primary data are used in the present study. The secondary data have been
collected preliminarily form the text books, web sites, journals, magazines and other secondary
sources. The primary data are collected from the sample respondents who are the teachers
working in Arts and Science colleges in Thanjavur district considered as target audience

Region
exposed to Knowledge Management Practices under the considered study area, Thanjavur
district of Tamil Nadu.
5.2. Sampling Technique
Quota sampling is a non-probabilistic sampling method where we divide the survey population
into mutually exclusive subgroups. These subgroups are selected with respect to certain known
and thus non-random features, traits, or interests. People in each subgroup are selected by the
researcher or interviewer who is conducting the survey. After choosing these subgroups, the
interviewer has the liberty to rely on his convenience or judgment factors to find people for
each subset. 150 samples are selected for this study.
5. ANALYSIS OF OVERALL PERFORMANCE OF THE EMPLOYEES
ON EMPLOYEE PERCEPTION TOWARDS ORGANISATIONAL
COMMITMENT BY USING THE NEURAL NETWORK (NN) METHOD
The Neural Network architecture, used in this study, is a multilayer feed forward network using
SPSS 20. The architecture which provides the best fit for the data is the network with three
hidden layers and an output layer. The learning and momentum parameters are 0.6 and 0.9
respectively and error convergence falls below 0.01 Percent. Tan sigmoid is the activation
function chosen for the hidden layers, and the pure linear function is used to get the output layer
which is the real time values. The architecture which provides the best fit for the data is the
network with eight input layers, ten covariate variables and one hidden layers and one output
layer, as shown in figure 4.2.
The neural network model stems from the studies on the working of human brain systems,
and serves as an associative memory between the input and output patterns. These models
contain many densely interconnected elements called Neurons or Nodes. The neuron has a set
of “n” inputs “x”j, where the subscript “j” takes a value from 1 to “n” and indicates the source
of the input signal. Each input “x”j is weighted before reaching the main body of the processing
elements, by the connection strength or weight factor “wj”. (Multiplied by“wj”). In addition, it
has a bias term “w”0, a threshold value that has to be reached or exceeded for the neuron to
produce a signal, a non-linearity function F that acts on the produced signal (or activation) R,
and an output O. The non-linearity function used in this network is the sigmoid. The sigmoid is
very popular because it is monotonic, is bounded, and has a derivative: f”’(s) = kf (s) [1-f(s)].
Figure 1 Basic Neuron Model for overall Performance of the employees on employee’s perception on
commitment

The model used in this work is the Feed Forward Multilayer perception, using the Back
Propagation Algorithm. Where (4-3-1)
• 8-Input layers
• 10-Covariates layers
• 1-Hidden layers
• 1-Output layer
All inputs are analyzed in the experimental validation part, with appropriate output results
by the illustration of graphs so that the influences of the parameters of tensile strength are taken
into consideration. The network information is presented in the table. The validation of the
estimated NN and Experimental value illustrations is shown in Figure.
Table 1 Model Summary for Neural Network Model for employee perception on commitment
Training
Sum of Squares Error 14.593
Relative Error .087
Stopping Rule Used 1 consecutive step(s) with no decrease in errora
Training Time 0:00:00.44
Testing
Sum of Squares Error 19.020
Relative Error .317
Dependent Variable: Overall Performance of the employee
a. Error computations are based on the testing sample.
Source: Output generated from SPSS 20
Table 2 Neural Network Model for overall Performance of the employees on employee’s perception
on commitment
Input Layer
Factors
1 Gender
2 Age
3 Marital Status
4 Educational Qualification
5 Experience
6 Annual Income
7 Area of Residence
8 Position
Covariates
1 Mode of ascertaining Vacancies
2 Selection procedure
3 Selecting the right person for the right job
4 Training is important
5 Employees are adequately rewarded
6 Promotions are denied
7 Employees are given the right Designation
8
Making A meaningful contribution to this
organization
9 Do not get importance
10 Subordinates are not cooperative
Number of Unitsa
38
Rescaling Method for Covariates Standardized
Hidden
Layer(s)
Number of Hidden Layers 1
Number of Units in Hidden Layer 1a
7
Activation Function Hyperbolic tangent
Output
Layer
Dependent Variables 1 Overall Performance of the employee
Number of Units 1

Region
Rescaling Method for Scale
Dependents
Standardized
Activation Function Identity
Error Function Sum of Squares
a. Excluding the bias unit
Source: Output generated form SPSS 20.
The factors of the employees’ perception on commitment model parameters are modelled
by using the Neural Network Method. The parameters are optimized so as to determine the set
of parameters, which will influence the increase in the Overall Performance of employees on
employee’s perception on commitment by using Neural Networks Architecture and network
information.
Table 3 Independent Variable importance for Neural Network Model for the overall Performance of
the employees on employee perception on commitment
Independent Variable importance Importance Normalized
Importance
Gender .011 3.0%
Age .022 5.9%
Marital Status .008 2.3%
Educational Qualification .033 8.9%
Experience .032 8.4%
Annual Income .029 7.8%
Area of Residence .032 8.6%
Position .034 9.1%
Mode of ascertaining Vacancies .032 8.4%
Selection procedure .034 9.2%
Selecting the right person for the right job .043 11.4%
Training is important .031 8.3%
Employees are adequately rewarded .043 11.5%
Promotions are denied .022 5.9%
Employees are given the right Designation .115 30.6%
Making A meaningful contribution to this organization .375 100.0%
Do not get importance .039 10.3%
Subordinates are not cooperative .064 17.0%
Source: Output generated from SPSS 20
The table and diagram show the employee perception on commitment with respect to
“Making A meaningful contribution to this organization” is contribute more towards the output
of overall Performance of the employees. The result determines the fact that almost all the
attributes under employee’s opinion towards perception on commitment in the selected
organization are important and the most influencing factor is identified as ‘Making A
meaningful contribution to this organization,’ of the respondents. The employee’s opinion
towards perception on commitment is considered obligatory. This factor is interpreted more
indicative to evaluate employee commitment to the organization among all other statements of
opinion. Hence among all other attributes under employee’s opinion towards perception on
commitment in the selected organization, the above said statement is statistically significant
and thus identified as the most influencing variable.

Figure 2 Normalized importance for the overall Performance of the employees on employee
perception on commitment
6. CONCLUSION
Organizational commitment is an important phenomenon in industrial relations and human
resource management of an organization. Therefore it deserves different dimensions of research
to be performed. Future studies may use multiple sources for clarifying the corporate practices
of human resource and industrial relations. The present study is confined to only the executive
employees of Information Technology Sector selected for this research study in Chennai.
Therefore, involving employees categories of employees might lead to more insights to
examine the efforts made by the corporation to project the importance of organizational
commitment and job performance. This can provide direction for efforts to identify an
appropriate approach for the enhancement of productivity in the organization.
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