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Dr Radha Yadav Assistant Professor USB, Chandigarh University Email Yadavradhika121@gmail.com |
Ashu Khanna Assistant Professor DOMS, IIT Roorkee Email Drashu.khanna@gmail.com |
Ms. Priyanka Panday Research scholar USB Chandigarh University Email Priyanka.usb@cumail.in |
This Paper deals with a systematic review of the quality of work life (QWL) with organizational commitment (OC) and organizational performance (OP) of the Multinational firms in relation to sustainability. The objective of the paper is to present a theoretical model using the factors identified related to work life balance, commitment, and performance. Various databases such as Emerald, Scopus, Springer, and WOS are used to review the literature; 100 research papers out of 150 are thoroughly discussed in the paper to assess the contemporary connotation and relation of QWL, commitment and performance in multinational firms in order to become a sustainable organization. Inclusion criteria of literature are the papers showing the relationship of at least two variables; rest all were excluded from the literature. The finding of the paper clearly identifies the strong positive relationship between these variables in relation to QWL and direct relation to sustainability. This paper shall be helpful in finding out the future scope of quality of work life from the perspective of today’s employee for the betterment of the performance of Multinational firm in order to create a sustainable environment for development of Human resource. The results of this research provide a meaningful insight the information in the area of improving Quality of work life at the workplace that increases the commitment in the employees and improves the organizational performance.
Keywords: QWL, Organizational Commitment and Organizational Performance
Quality of work life is not a new-fangled in research; in fact, it has been evolving since 1970 till present, becoming an obligation to having better and effective QWL in every organization, whether it is related to telecom sector, IT sector, education sector, banking sector, etc. QWL has become an emerging topic in current scenario, due to concern of employees towards family and individual’s need. An employee feels happy, motivated and satisfied in positive working environment, effective peer & superior relationship career development opportunities, rewards & recognitions and other benefits. QWL plays a significant role in sustaining and beating the competition. (Yadav & Khanna, 2014). QWL can be either monetary and non-monetary services provided by the organization, it varies as per the need of the individual (Mohamad & Mohamed, 2012). It also refers to the favorableness or un- favorableness of work environment for individuals (Jerome, 2013, p.47). A better and effective QWL helps in attracting and retaining the employees. The continuously revised policies and programs like performance appraisal, career growth, work life balance, participative management, etc. creates a affirmative impression on the morale of the personnels (Baruch, 2004, p.62).
The concept of “Quality of work life (QWL)” spotted firstly at press in USA in 1970’s. After this Louis Davis (1972) came up with the concept of QWL, he represented this concept of QWL at the International Conference in Toronto. After that, the global committee for QWL was set up in 1972. From 1980 onwards QWL was progressively set on representative focused efficiency programs. Second International Conference on QWL was held in Toronto (Canada) in 1981 pulled 1,500 interests in which, there were 200 unionists and 750 administrators joined with academicians, advisors and government authorities in conference. Quality of work life was no more a particular word, it has turned into a need of the human source. In this period, it has been noticed that worth of human (employees’) inputs is the beneficiary thing for any association/organization. Concept of focus on the employees’ needs and demands came in limelight after the results of Hawthorne experiments conducted by (Mayo & Roethlisberger, 1924-1933). But, after this experiment, it took many years to explain needs and demands of the employees belongs to Quality of work life. Since 1970, the various dimensions of QWL revolves around its relation with employees’ satisfaction and happiness, but continuously researches have been proving that quality of work life plays a vital role for the life of the organization, in which organization gives all the indispensable things to employee. Walton (1973) was the first researcher who described the detailed concept of QWL in a research, with eight dimensions: fair payment, legal positivism, permanent growth and security, opportunity, social dependency, development of individual capabilities, security of environment, and social integration. According to the need of the employees in globalization, the dimensions have been perpetually changing from 1970 till present (Walton, 1973). Employees are that seed which grow under the take care of organization, and becomes the tree and give fruits in terms of revenue to the organization. Organizational growth is directly related to individual growth. (Lau, 2000, p.434). Organization performance and growth in terms of revenue depends on the employees’ continues efforts and customers loyalty. Customer loyalty depends upon the customer satisfaction, Customer satisfaction depends upon the employee’s performance in terms of providing services/benefits by the employees to customers. An employee give satisfaction to customers only when they feel enough motivated and satisfied with the organization. (Yadav & Khanna, 2014; Hamann, Schiemann, Bellora, & Guenther, 2013). Commitment means to serve yourself for someone whether it is related to a materialistic thing or a non-materialistic thing. Organizational commitment plays a vital role in the organization, through it organization achieves growth, profit and develops market share. Because a satisfied employees can perform better at work place but committed employee perform effectively and efficiently at job. Commitment is an attitude and behavior of oneself towards the organization. OC affects the environment at the work place as well as in individual’s life ( Parvar, Allameh, & Ansari, 2013). Organizational commitment is directly linked with psychological attachment of employee to the organization. Committed employees will stay in the organization and put positive efforts enthusiastically towards reaching organizational objectives. Commitment varies with the intensity, work opportunities accessible, monetary advantages and so on (Stanton & Matthews, 1995). The concept of OC is derived from industrial and organizational psychology (Cohen, Kinnevy, & Dichter, 2007). Researchers gave the theory based on organizational commitment i.e. theory of “side-bet” explains OC is the behavior involving people to the process in which they lock themselves in a certain organization (Mowday, Steers, & Porter, 1979). Three terms that include in OC i.e. faithfulness, long term membership, and extra role behavior. OC has a noteworthy impact on retention, work execution, and employee’s prosperity. High state of affective, continuance, and normative commitment are firmly identified with high turnover rates of the organization. (Hrebiniak & Alutto, 2016).
Past researches have demonstrated that OC is based on employees’ attitude, embracing identification, participation and loyalty. A state of attitudinal perception leads to psychological attachment of employees. (Porter et al, 1974). Commonly discussed the models of OC are affective, continuance and normative commitment (Mowday et al., 1979). Firstly, two dimensions of commitment were introduced i.e. affective and continuance by Allen and Meyer (1984). First affective commitment that is the first dimension is described as “positive feelings of identification with, attachment to and involvement in the work organization” (Meyer & Allen, 1984). It builds the low turnover rates and enhances the profitability and productivity of the company. After that, Allen and Meyer (1990) characterized the second dimension, to be specific; it is named as continuance commitment and described as "the degree which representatives’ feel focused on their association by temperance of the costs that they feel is connected with taking off”. Furthermore, Allen and Meyer (1990) introduced a third dimension, to be specific known as normative commitment. Normative commitment states that "the representative's sentiments of commitment to stay with the association”. Thusly, the idea of OC is portrayed as a tridimensional model of measurement including affective, continuance and normative dimensions (Meyer & Allen, 1991).
In the study, researcher discussed the meaning of the QWL in the organization. Now, the question is, why do organization offer better quality of work to their employees? Why does organization spend so much on their employees? This world is full of givers and receivers. Management works on all these theories to ensure the sustainability of the organization in the market with appropriate growth rate. It is only possible when organization have skillful and fully loyal employees. Organization wants commitment from the employees in return of giving better QWL. It has been said “people and technology enhance the competitiveness of software industry of India”, (Shee & Pathak, 2006). If organization gives better facilities to the employees in terms of better QWL, the employees may be more loyal and committed towards organization (Lau, 2000, p. 430). Selection of the articles Scholarly and Peer reviewed articles were chosen to analyses the undeviating relationship between the QWL with the OC. Springer, Emerald and Sage database, used for the content analysis. Researcher focused on the studies that was based on the QWL, OC and OP thoroughly analyzed in this paper to get the appropriate findings
QWL is becoming an imperious issue to attract quality employee, increased productivity and employee commitment in almost every sector. When an organization offer a better and effective QWL to employees, it directly develops vigorous and positive working environment with fully satisfied employees. QWL also contributes towards betterment of living of employees. Quality of work can be enhanced by engaging some practical approaches that enhances the contribution of the employees under task consideration, and employees show their interest changing work culture in an innovative way during the task (Peer, Sharma, Ravindranath, & Naidu, 2004). QWL affects the employees work life as well as family life. Various researcher s and authors proposed the proportions of the QWL like Job-Satisfaction, Rewards and Recognitions, work environment, work life Balance, Superior and Peer relationship, Working Hours, Well-Being and Pay (Hackman & Oldham,1976; Taylor 1979; Warr & colleagues, 1979; Mirvis & Lawler, 1984; Baba & Jamal, 1991; Sirgy et al., 2001). The subsequent section discusses and analyses the literature review on the QWL and its dimensions:
Rewards and recognitions are used in an organization to enhance the motivation of the employees, and it also builds a competitive atmosphere among the employees. It is an indirect path to achieve both organizational and individual goal. A study is done in the past to understand factors influencing QWL by taking empirical evidence consisted 100 employees from Indian organizations (Nanjundeswaraswamy & Swamy, 2012). Findings of the study was that culture at work place, career development, and relation with supervisor, flexibility in working hours, rewards, motivation, fringe benefits are the important variables of QWL that affects the job satisfaction. This study also revealed that most of the variables of the QWL increase the cost of the organization. There are some activities which do not increase the cost, but still give motivation and satisfaction to enhance the performance of the employee and organization such as team building activities, motivational activities etc. (Nanjundeswaraswamy & Swamy, 2012),(Shah, 2004,p. 76),(McCall, 1975,p.236). Another study is done to measure the job satisfaction of employees’ related to their job aspects. This study proved that rewarding the talented and hardworking employees increase the level of satisfaction at job (Shah, 2004, p.76 ), (Pawar, 2013 p. 2710). A study is also done to measure the level of job satisfaction of 246 employees of VTPS in Andhra Pradesh. The findings of the study revealed that the rewards and recognitions are significantly related with the QWL. Another study on nurses described the methods of recognition, and results of this study shows that there is significance relationship of financial constraints and non- monetary practices with the recognition. (Cronin & Becherer, 2013). So, it can be said through the literature that recognition is being used as the tool to enhance the morale of the employees in every sector.
Job satisfaction defines the level of satisfaction of employees towards the duties, responsibilities and goals of a job. Job satisfaction also depicts the attitude and emotion of a person towards organization. Positive disposition towards the job demonstrates the expression "job satisfaction”. When employee feel unfavorable circumstances at work place, it generates negative feeling that indicates job dissatisfaction (Armstrong, 2006, p.264). Worker fulfillment is required to execute high‐performance or high‐commitment towards organization, which leads to high business performance (Osterman, 1995, p. 138). Numerous measurements of QWL i.e. pay, advancements, administration, fringe benefits, one's colleague’s support, and working hours are positively associated with positive attitude of the employees towards the organization (Watson, 2003, p.16) Employees’ perception towards their job also depends on the dimensions of QWL perceived by the employees (Sadri & Goveas, 2013). Other researchers have added more variables in determining job satisfaction, namely; (i) good salary (ii) incentives and recognitions (iii) good working conditions; (iv) fair working opportunities (v) peer subordinate relationship (vi) supportive colleague. The outcome of the research also demonstrated that interpersonal relationship and grievance among the employees gravely affects the job satisfaction. (Pawar, 2013, p.2717). Some studies have shown that different working components are significantly correlated with the job satisfaction (Emadzadeh, Khorasani, & Nematizadeh, 2012),(Asgari & Dadashi, 2011). A study has proved that job satisfaction is the requirement of the employees; it is not based on gender specification. Satisfaction is necessary for the all employees whether they are male or a female (Singh, 2010,p. 70).
Salary/wages is output of the input of labor for their works. Technically, it covers all the physical and mental work done by the workers or employees, but the income of self-employed is not included in the salary and wages. Salaries and wages basically are known as remuneration, and it covers the amenities offered by the organization like paid vacations, holidays, and sick leave as well as fringe benefits. QWL is associated with job satisfaction, which is linked to wages, working hours and working conditions. The basic elements of a good QWL are described as safe workplace, impartial wages, and equal opportunities for advancement (Mirvis & Lawler, 1984). Many authors have explained the importance of remuneration and stated in the dimensions of QWL. Salary affects employee’s work satisfaction and work performance (Oshagbemi, 2000, p. 337). Employees desire to achieve secured jobs and justified salary, which makes them relaxed at the work place and its affects their quality of life (Drobni, Beham, & Prag, 2010). Satisfying needs established by social status and getting justified remuneration builds the bond between the employees and develops an appropriate work environment. Survey on nurse’s working life satisfaction proved that the pay/salary plays an important role in developing a better QWL (Saraji & Dargahi, 2006). In addition past researches on QWL stated that pay/salary plays a tremendous role in the life of employees (Shah, 2004,p. 76 ). A study was conducted on QWL on workers in textile industry at Tripura district. Findings of the study revealed that work experience is positively related with the job satisfaction and salary. Salary is associated with the qualification of the individual, it means that education and job experience are the main variables which describe the individual’s salary (Indumurthy, 2012, p. 85). Even for the employees of organizations like ‘healthcare’; salary and benefits are important variable of QWL. Salary and fringe benefits policies were positively related to the QWL (Khodadadi, Darzian, & Pasand, 2014). A study has been done on the employees of VTPS having 246 respondents. Finding of the study said that fair wages and remuneration play significant role with the QWL and job satisfaction. (Shah, 2004, p.78).
Past researchers discussed frameworks on the QWL and career improvement, which can help managers to assess the employees' subjective reaction to job attributes, and receive fitting measures to expand the noteworthiness of their job and prospects for career progression (Reddy & Reddy, 2010). Organisation culture of openness and trust gives workers the ease with which they create identity for themselves through job enlargement and job enrichment. The emphasis is on perceiving adaptability and innovativeness that develops motivation for expanding employees’ competence and capacity. Past studies proves that satisfaction in career, achievements in career and career balance are the important variables for better QWL (Che, Beh, Uli, & Idri, 2006). Communication, team work, job identity, performance, training and development are used as a catalyst in achieving career growth. Need of the training can be visible through the not enough output and weak colleague’s interaction in the organization. Hence, training is required to make employees better for the job which helps to boost the career growth (Verma & Khan, 2010). Moses, (1999) explained the individual’s performance plays an important role in career growth. While job security is no longer a thing that can be promised, employers can ensure that employees maintain the skills for viability in the job market. Gallie (2013) suggested that by comparing perceptions of employees towards the quality of their tasks, the extent of their involvement in decision making, opportunities available for their career growth and job security may reveal that there is any difference in QWL of Scandinavian countries and European Union neighborss. Career planning incorporates succession plans, potential appraisals and self-evaluations that are intended to execute career management policies which generally enhance motivation, commitment and performance (Li & Yeo, 2011). Career growth and development affects the working life and make modifications in the life of employees towards the commitment. It changes the perception of the employees towards organization (Shah, 2004, p. 76). A study proved that there is critical relationship between the career growth and QWL (McCall, 1975, p. 245). Self- esteem of the employees affects the career growth and development (Robbins, 1989). It can be seen in the individuals that conflict between career expectations and actual working life disturbs the present life of the employees as well as the students. It generates the stress that leads the individual towards the depression (Yadav, Khanna, & Singh, 2016). An experimental study was done to anticipate the dimensions of QWL on comprised of 475 directors as a respondents from the organized commerce zones in Malaysia both multinational companies (MNCs) and small medium commercial ventures (SMIs).The results indicated that satisfaction of the individual and career growth are necessary for the organization performance (Noor & Abdullah, 2012). If an employee is getting growth in his career, he/she enjoys at the work place (Talebi, PakdelBonab, Zemestani, & Aghdami, 2012). Another study was conducted on the dimensions of QWL on 334 middle level managers. Findings of this study was that working conditions, opportunities and organization culture affects the job involvement’ and affective commitment (Permarupan, Mamun, & Saufi, 2017). Past researches described career growth in a different aspect related with QWL; Few researchers says that feeling of employees towards their work and co-workers are related to QWL (Heskett, Jones, Loveman, Sasser, & Schlesinger, 2008). While, other research states that career growth and commitment are significantly related to QWL and turnover intentions (Serey, 2006, p.8). A study on QWL in Indonesian public service organization was done to find out the career development’s role in the personal life. Some research proved that there is a significant and positive relationship of career growth that lead profitability and satisfaction (Sadri & Goveas, 2013). One study gave the three aspects of career such as career satisfaction, career achievement and career balance which has 67% variance with the QWL(Baruch, 2004, p.69),(Che, Beh, Uli & Idri, 2006).
Job security is also affected by a worker’s performance, success of the business and the current economic environment. Job security not only relates to an individual’s performance but also relates to the policies and plans of the organization. Drobnic (2010) suggested that employees have a greater comfort level at their workplace if their jobs and pays are secured, while affecting the QWL. Feldman (2000) quoted that, “where once large corporations were seen as bastions of job security, they are now seen as minefields of job insecurity”. Large corporations, while simultaneously undergoing flattening, also had to experience severe downsizing and restructuring, to account for their loss in revenue. Employee development Programs undergone changes due to the above drastic factors (Jayakumar & Kalaiselvi, 2012). Another study uncovered that poor job security and wellbeing, work pressure and procurement of deficient working devices are natural viewpoints that achieve poor QWL (Kiriago & Bwisa, 2013).The time has changed. Now a days, job security has decreased the passion and hard work towards the job as supported by some researches, who stated there is no significant relationship of job security with QWL (Robbins, 1989, p.236).
The most ideal method for measurement of QWL is to gauge the degree in which individuals' happiness prerequisites are met, for example, necessities which are a fundamental in nature to make human being cheerful (McCall, 1975,p. 233). According to the research, Quality of life is different in subjective and objective manners. A study on quality of life in research center of Denmark stated subjective and objective form of QWL. When employees feel good and fully satisfied with the things around them QWL considered as subjective, while employees’ satisfaction obtained through fulfillment of societal and cultural demands i.e. material wealth, social status and physical well-being is considered as objective quality of life. (Argentero, Miglioretti, & Angilletta, 2007). Most of the past research categorized QWL into three aspects: being, belonging and becoming. ‘Being’ defines the physical, psychological and spiritual aspect of human being whereas ‘belonging’ defines the attachments like physical belonging, social, community and ‘becoming’ covers practical, leisure and growth(Martel & Dupuis, 2006). The domain of quality of life includes family, associates, work, locality (shelter), wellbeing, education, and spirituality. Union national development program published the annual Human Development Index (HDI) for many countries around the world. According to the report from human development program in 1997, it scrutinizes the wellbeing of every country's citizen is by measured by following parameters: • life expectancy • educational achievement • Standard of living QWL (QWL) and quality of life (QOL) are the most significant and essential subjects for organizations, while manpower is the most important subsystem, and organizations consider it as an important priority (Asgari & Dadashi, 2011). QOL could be defined as an individual’s satisfaction with his/her life, compared to his/her ideal life where evaluation of the quality of life depends on individual’s value system and their cultural environment (Horská & Krasnodȩbski, 2009),(Gilgeous, 1998,p.179). Various terms are given by the various studies related to QOL which included the following parameters: stratification and inequality, social inequality, wealth and income, poverty, socioeconomic status, and others (Johnson & Solon, 2016), (Rice, Mcfarlin, Hunt, & Near, 1985).
Participative management is the feeling of employees that involves them in decision making and makes them feel a part of the organization. A study done on participative management and quality of work life, showed the results that employee’s idea, learning strategy and economic output are positively correlated with the QWL(Hosseini & Jorjatki, 2010),(Ingelgård & Norrgren, 2001). A study conducted in Catalonia, which aimed to find out the predictors of QWL observed that the lack of supervision or top management involvement are indicative of low QWL (Dolan, Peas good, & White, 2008). One study examined that the significance level of QWL and OC amongst employees on sample size of 360 workers including supervisors and administrators' levels in different firms of Malaysia. The variables used for the exploration were career development, work interest, physical environment, supervision, pay, work place integration. This research paper demonstrated that involvement in decision making has positive association with QWL and OC (Daud & Normala, 2010), (Poorgharib, Abzari, & Azarbayejani, 2013).
Communication has become an important factor at workplace, with transparency being highly valued. Past researches conducted on“ child protective investigators” including following variables to measure QWL i.e. staff development, concern for health and safety, participation in decisions, good communications, and opportunity for advancement (Hosseini & Mehdizadeh, 2010),(Chitra & Mahalakshmi, 2012). It was found that communication among employees, and communication between employeeand management play a precious role in developing better QWL(Cohen, Kinnevy & Ditcher, 2007). One major study has been done on the extrinsic, intrinsic and prior determinants of QWL (Lewis, Brazil, Krueger, Lohfeld, & Tjam, 2001). Extrinsic traits defined with salary or other tangible benefits where intrinsic traits introduced with skills, level, autonomy and challenge; prior traits discussed with the gender; and employment traits discussed with co-workers’ support, supervisor treatment and communication. Survey of this study was conducted in 7 different healthcare sector with respondents of 1,819 staff. The findings showed that pay, style of supervision, communication and discretion, all defines the role in determining QWL (Lewis, 2001, p. 13). The finding related to the past researches also says that the relationship between QWL and communication suggests that a competitive compensation package needs to be complemented by transparent promotion policies, better communication and supervision (Hosseini & Mehdizadeh, 2010); at the same time, communication is an effective tool to drive the QWL. On the other hand, some studies proved says that communication is not a driver of QWL (Nanjundeswaraswamy & Swamy, 2012),( Hosseini & Mehdizadeh Jorjatki, 2010),(Tao, Takagi, Ishida, & Masuda, 1998)
Safe environment includes the safety and security as well as health of the employees, it is truth that an individual earns for health and wealth (Ismail, Asumeng, & Nyarko, 2014). So, it should be main aspect of QWL. Safety and security of the employees are two different aspects and important dimensions of QWL. There are various study who focused on the working conditions and working hours of the employees. It is proved by different studies that physical conditions at the work place should be free from hazard (Agrawal, Thomas, & Satapathy, 2013). Legislation, union action, and employer concern have resulted in continually rising standards of satisfactory working conditions (Madankar & Nazem, 2013). From the previous studies, it has been found that safety and security are an effective driver of QWL (Saraji & Dargahi, 2006),(Golmohammadzadeh, Ghanbari, Valiki, & Hasannia, 2015),(Hosseini & Mehdizadeh Jorjatki, 2010). A study on nurses’ work environment proves that the safety of the patient rely on the quality of working life of the nurses that offers by the organisation related to the policy involvement and staffing levels(Laschinger & Leiter, 2006). Safety and healthy environment calls for employee engagement and status in working environment at work place. The term psychological safety was introduced in the dimensions of QWL for retaining the happy employees by (Nembhard & Edmondson, 2006) (Baruch, 2004, p.62). It is accepted from the literature that safe environment in terms of safety of the employees also important dimension of QWL (Bolhari, Rezaeean, Bolhari, Bairamzadeh, & Soltan, 2011),(Jayakumar & Kalaiselvi, 2012).
Social and emotional interactions play a vital role in an individual’s life at work. Sometimes interaction with team members, seniors and juniors make a healthy environment at work which is a source of reduced stress and enhance the work capabilities. Past studies have been done on employees’ perception towards QWL and job satisfaction in manufacturing organization on sample of 251 employees. Result showed that peers and superiors relationship is not job related aspects(Chitra & Mahalakshmi, 2012) . Past researches are not stated clearly for this dimension of QWL, where some studies says that there is no significant association between peer – superior relationship with QWL(Robbins, 1989, p. 89). On the other side, researcher says dimensions of QWL i.e. fringe benefits, peer and superior relations, training and development, grievance handling procedures etc., improves the satisfaction level of employees at the 5 % level of significance. (Riley, 2006. p. 136).
Quality of work life, as an aspect, has evolved and affected a multitude of segments i.e. economical, technological and social era worldwide. To develop OC in employees, QWL should be better in companies. Past researches prove that QWL plays a vital role in generating the willingness to stay in an organization and cultivating a positive attitude towards the job and organization. The organization also work on the theory of give and take by providing employees job security, promotion opportunities, and better training and development (Feldman, 2000, p. 613),(Sajjad & Abbasi, 2014). Dimensions of QWL i.e. fringe benefits, peer and superior relations, training and development, grievance handling procedures etc., improve the satisfaction level of employees and generate commitment in the employees (Riley, 2006). Studies prove that QWL plays a significant relationship role in enhancing the job satisfaction and organizational performance (Lewis et al., 2001),(Talebi et al., 2012). One of the dimensions of QWL, namely participation defines relationship with commitment in the past researches. Here, participation includes supervision, peer and superior relationship, and positive encouragement (Verma & Manishrestha, 2010). Results from the past research stated that supervision, remuneration and welfare schemes are positively correlated with affective, nominative and continuance (alternative) commitment (Daud, Normala, 2010),(Farjad & Varnous, 2013),(Sajjad & Abbasi, 2014). There is significant association between salary and allowances with commitment. Health security and work condition in the factories and industries go parallel with other dimensions of QWL, and also has proven that positive correlation with commitment. Some studies has given the rank of the dependent and independent variables of the QWL i.e. peer and superior relation, health, job security and working condition and work life balance plays a vital role that improves job performance rather than salary and allowances (Sajjad & Abbasi, 2014),(Nikam, 2013),(Farjad & Varnous, 2013),(Hamann et al., 2013). Study related to academic faculty members at Islamic Azad University in Iran covered 341 faculty members. The study proved that QWL is positively and significantly related with OC; it means that OC is an outcome of better QWL (Radel, 2016), (Golmohammadzadeh et al., 2015),(Tabassum, Rahman, & Jahan, 2012). Past studies prove that a dimension of QWL improves commitment. The various dimensions are supervision, pay and benefits, peer and superior relationship, health security, job security and work life balance which develop OC. Level of Employees’ satisfaction and commitment rely on the quality of work what they are receiving from the organization (Kara, Uysal, Sirgy, & Lee, 2013),(Arif & Ilyas, 2013),(Talebi et al., 2012). The previous studies says that fair and sufficient payment in the form of salary and allowances are positively correlated with the OC. (Farjad & Varnous, 2013), (Jayakumar & Kalaiselvi, 2012). Researcher also found the important variables for OC, which directly affects the OC are fair pay, health and safety and work condition. (Tabassum et al., 2012),(Shah, 2004, p. 78),(Sajjad & Abbasi, 2014). Based on the literature, researcher says that dimensions of QWL help and develop the attachment in employees towards the organization that enhance the growth of an organization.
Different meanings have been given to organization performance making it difficult to analyze the performance in a standardized manner. Still, we can measure the overall performance of organization by the degree of fulfilled social requirements, accomplished their objectives and targets (Hamann et al., 2013), (Islam & Siengthai, 2009),(Pradhan & Pradhan, 2015),(Johnson & Solon, 2016). Work, employees, and organizational structure were the primary focus for performance evaluation. Exploration of different avenues to evaluate organizational performance in the 1960s and 1970s led to defining it as the ability to exploit and access the limited resources present in an environment by the organization (Martel & Dupuis, 2006),(Seashore & Yuchtman, 2016). In the 1980s and 1990s, the complexity of identifying organizational objectives was realized in a better way by managers as they identified that success is contingent to the accomplishment of goals (effectiveness) with minimum utilization of resources (efficiency) (Khodadadi et al., 2014),(Golmohammadzadeh et al., 2015),(Arif & Ilyas, 2013). Hence, the concept of an organization achieving the set performance objectives, while operating in the constraints set by limited resources, was supported in the theories that followed by (Lusthaus & Adrien, 1998). Thus, profit was only one of the many indicators of performance (Moses, 1999), (Hamann et al., 2013),(Reddy & Reddy, 2010). It can be said that organizational performance depends on how effectively people work on the given target and accomplished fruitful results. Lebans & Euske, 2006 has given an arrangement of definitions to outline the idea of organizational performance. Performance is an arrangement of money related and nonfinancial indicators which offer data on the level of accomplishment of objectives and results (Lebas & Euske, 2006), (Kaplan & Norton, 1992). To characterize the concept of performance, it is important to know its fundamental attribute of every range of obligation. To report an organization's performance level, it is important to have the capacity to measure the outcomes. A review and update of the recent financial analysis research covering human resource development explains a positive relationship between human resources practices adopted by organization and the performance of the organization (Horska & Glova, 2014). QWL is further enhanced by the reinvestment of financial resources obtained by the increased growth and profitability by the management on employees. Result of the study also showed that organizational performance is positively correlated with work and performance of employees stated by (Moses, 1999). One researcher analyzed the relation of organization growth and QWL. Organizational performance was evaluated based on growth and profitability of S&P 500 companies. This study focused on 29 companies having all dimensions of QWL while 208 service companies were selected from the S&P list of 500 which were treated as control group. A study was based on growth of sales and assets of 5 years trend. Author conclusively pointed a higher growth rate in companies having better QWL than the other companies that are listed in S&P 500 companies. The differences observed among the two categories are statistically significant. On an average service companies having all the QWL dimensions had growth higher than average sales growth rate, while the control group companies had growth rate below average sales growth (R S M. Lau, 2000). One study is done to find the relation of QWL with performance in Dhaka processing zone. Finding of the research showed QWL does not have a significant relation with organizational performance (Islam & Siengthai, 2009) Psychological capital and its role on QWL, along with the performance of an organization were studied by (Mortazavi, 2012, p. 212). In the study, two public hospitals and two private hospitals were selected with the sample size of 207 nurses. The results were that psychological capital of human resource of an organization considered as the most pertinent factor that plays a positive role in organizational performance. The relation of QWL and organizational performance is positively significantly correlated with personality traits of the employees (Mortazavi, 2012, p. 212).Besides external factors, internal factors as the financial and material sources availability, company policies towards employee that develop the potential for growth and the ability to manage the business play an important role in enhancing organizational performance (Horska, Urgeova, & Prokeinova, 2011).
This study depicts the important variables of the QWL which creates OC among employees and affects the organizational performance. Those variables are drawn after doing the rigorous literature review of the conceptual papers and theoretical papers. The finding shows that there are some drivers/variables that have been using from so many years frequently i.e. Peer subordinate relationship, cohesiveness that generates a positive relationship with QWL and OC. The study found that peer-superior relationship and cohesiveness among employees directly affect the organizational commitment. On the other hand supervision, pay and benefits increase improves QWL. This study also reveals that participation management gives different approach, it creates positive as well as negative relationship with QWL. Literatures also stated that there is no relationship between gender and QWL, it means QWL plays a vital role for the employees whether employee is male or female. But, age affects the QWL. Quality of Work life varies person’s age. The other important factor which affects the QWL is work experience. Work experience has a significantly positive relationship with QWL, implying that if work experience increases, then level of QWL will be increased. Monetary rewards system also play an important role in the life of the employees. Every employees feel appreciated, motivated and committed after the acknowledgment. Effective reward and compensation system give direct impact on the performance of the employees. Findings from the literature also stated that salary should be calculated according to the skills and competency of the employees, it diverts employees towards more learning. Interaction between the management and employees create the better work environment and make easy and happy place to work for the employees. Dimensions of Quality of work life affects the commitment of the employees at various labels and committed employees help to increase the performance of the organization. On the other hand some studies proved that there is no significant relationship between the performance and quality of work life. After the analysis, paper states that there is a strong connection between the quality of work life with commitment and performance of the organization.
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