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Editorial Board A Refereed Monthly International Journal of Management
Prof. B. P. Sharma
(Editor in Chief)
Prof. Mahima Birla
(Additional Editor in Chief)
Dr. Khushbu Agarwal
(Editor)
Ms. Asha Galundia
(Circulation Manager)

 Editorial Team

Dr. Devendra Shrimali
Dr. Dharmesh Motwani
 

Human Resource Practices and Satisfaction of Managerial Employees in Indian Textile Industry

Shruti

Research Scholar, Department of Management, IKG Punjab Technical University, Kapurthala, India

N.S. Bhalla,

Department of Management, Global Institute of Management, Amritsar, India

T.S. Sidhu,

SBS Technical Campus, Ferozepur, India

Sanjeev

Research Scholar, Department of Management, IKG Punjab Technical University, Kapurthala, India

 

 

ABSTRACT

In the ever changing environment with a highly competitive market economy, the human resources provide an edge to an organization. This paper studies job satisfaction of managerial employees working in Indian textile industry. For the purpose of the research 227 participants were randomly selected. Job satisfaction was measured by likert scale. Results revealed that all the levels of employees perceive human resource (HR) practices and job satisfaction at the same level.  Results show that job satisfaction had great impact of four HR practices training & development, compensation, reward & recognition and welfare activities. The results showed that for the development of any strategy it is necessary to find out its impact on the job satisfaction of the employees.

Keywords: HR Practices, Job Satisfaction, Textile Industry, Level of Management, Training & Development

 

  1. INTRODUCTION

Indian organizations are changing from the basic economic system to the market oriented system. Generally, developing and changing economies like India is in an unpredictable and pitiable situation. Yet such developing countries are bound to be increasingly important because of their potential market, raw material and for the strategic centers for the growth in other areas. Now days, foreign companies are entering into the Indian market and giving challenges to the Indian organizations. Among the developing countries the Indian organizations are working better and have gone through a number of structural changes, like market liberalization, growing usage of communication technologies. Teece (1998) noted that in the domestic market the organizations have to face challenges from multinational companies in the globalised and liberalized economy. Due to this competitive environment there is high pressure on the managers. The competition is due to cost reduction and quality improvement of products with excellent service.

Pfeffer (1994, 1998) argued that in the competitive markets success is mainly related with innovation, speed and adaptability rather than economies of scale of production and improved technology. He further argued that all this is only possible through human resources working in the organization. Along with Pfeffer (1994, 1998), Lawler (1992), Kochan and Osterman (1994) and Levine (1995) have strongly recommended there is need of high involvement of human resources, rather than huge capital investment. For this purpose there is the need to have better HR practices which result in increasing the commitment of the employees, skill and productivity. The idea that human resources and their involvement in the organization for its growth is very much important. This thought can be converted into regular practice through the variety of programs. All these help in the individual development their adjustment to the working environment. The human resources of any organization are necessary for its growth and success. The top management involvement in organization is necessary to attract and retain people. The managers are encouraged to follow the instructions given by the seniors and be the role model for their juniors. For this there is the need of effective HR practices.

Schein (1990) indicates that individuals are identified with their vision how they behave and what they expect.  Organization’s vision and mission will not be reality unless and until the employees are involved and integrated with the goal of the organization. But question here arises that how to the employees be committed and show sense of responsibility towards their organizations particularly in changing and competitive working environment where poaching of job and attrition rate is so high and regular feature.  The HR practices help in developing better work culture in the organization by generating effective managerial values. Thus the present study is an attempt to show the impact of the HR practices on job satisfaction with relation to the management level of employees. An attempt has been made in the textile units to check whether the HR practices and job satisfaction level of employees differ across the different management level and finally to find out the relationship between HR practices and job satisfaction. For the purpose of research the data was collected from selected textile units in Punjab covering all the three management level.

 

  1. LITERATURE REVIEW

Human resource Management (HRM) involves all management decision and practices that directly affects and influence the people or human resources. Human resources are significant strategic levers which help in competitive advantage.HRM practices should be central to the organizational strategy Barney (1991, 1995). Lado and Wilson (1994) revealed that HRM practices contribute to sustained competitive advantage through the development of competencies of the human resources that are firm specific, help in producing complex social relationships and organizational knowledge. Keenoy (1999) made the comparison of HRM with hologram.

Pfeffer (1998), Ulrich (1997) and Geringer et al. (2002) argued that the competitive advantage can be obtained with the help of human resources rather than technology. They revealed that it is not necessary to make investment in the technology as the technology will soon get by competitors. 

Due to globalization, technology advancement and changes in demographic conditions, a lot of variations have been taken place in organizational environment which gives rise to new opportunities for managers. The new business models and changing technology reduces the entry barriers and encourage competition McKinsey Quarterly (2006). Especially in a highly dynamic environment the organizations’ changing ability is critically considered for their continuous existence. In developing countries Cost savings and quality assurance are the two key reasons for off shoring particular business processes Dossani & Kenney (2003); Taylor & Bain(2005). Budhwar, Verma, Malhotra, & Mukherjee (2009) suggested work monotony, stressful working environment, unpleasant conditions of work, lack of  developmental career opportunities and better opportunities of job elsewhere are the main reasons for the lack of employees  commitment. Boyar, Valk, Maertz, & Sinha (2012) found that employees having low financial obligation were more easily leave the organization as compare to the others.

On the base of literature studied on the textile sector, most of the studies are based on the organizational performance rather than the employees concerned about employees satisfaction and commitment. It is important to highlight the HR practices to be followed by the textile units and its impact on satisfaction of employees due to one of the major industry of India and having a significant impact on the global economy. To overcome this gap in research, the relationship of HR practices with the job satisfaction of the employees in the textile units.

Objectives of present study:

  • To check that HR practices and job satisfaction of employees is different among the three management level in the textile units.
  • To develop a link between HR practices and job satisfaction of employees in the textile units.
  • To give the recommendation for increasing the job satisfaction of employees in the textile units.

2.1 Indian Textile Industry

The Indian textile industry is one of the big industries in the world. India produces large varieties of synthetic and manmade fibers’ which are used to manufacture fabric and garments. The textile sector plays a significant role in Indian economy by contributing to the Gross Domestic product (GDP), generating employment and earning foreign exchange.

Textile Sectors has a number of contributions to the Indian economy:

  • Contributing 2% to GDP at factor cost
  • Giving 14% of total industrial production
  • Contribution to excise and custom revenue is 8%
  • Contributing 12% of total exports
  • Provide employment to about 35 lakh people

 

Globally Indian textile industry is:

  • Textile industry is the third largest producer of cotton
  • Textile industry is the second largest producer of cotton yarn
  • Textile industry is the fifth largest producer of synthetic fibre/yarn
  • Textile industry is the largest producer of jute and second largest producer of silk

Present Status of the Indian Textile Industry

As per value terms

Among the world, Indian textile industry is the largest textile industry. The economy of India largely depends upon the manufacturing of textile and its exports. With the export of textile India earns about 27% of foreign exchange.

As per unit terms

After china, Indian Textile Industry has the second largest capacity of spindles in the world. India represents 20% of spindle capacity of the world. In case of power looms Indian Textile Industry has 2.2 lakhs power looms, 3.5 lakhs handlooms, and an estimated 92,000 lakhs looms in the organized mill sector. The weaving capacity of India is highest in the world i.e. 61.6% of global weaving capacity.

Total processing units in India are 2300. Almost all of them are independent, only with 22 integrated with spinning, weaving and knitting units. Total number of manufacturers are approximately 27000, 48000 contractors and above 1000 exporters of garments India. Cotton is one of the main crops of India and it is the main fibre for the textile industry. All the cotton used in India grown locally.

Performance of Competitors

Due to their better competitiveness competitors of India, could achieve higher export growth rate than India. One of the major determinants is the standard cost of production in global textile and garment industries which determine international competitiveness. Pakistan, Bangladesh and China are strong competitors of India with respect to textile and garment manufacturing industry. To improve the performance of Indian textile industry and to increase textile exports, it is necessary  to focus on reducing labor costs, increasing productivity of labor, reducing power cost, improving the hours of work , reducing transport costs and reducing the VAT rates for apparels (Ministry of Textiles, 2011).

 

  1. CONCEPTUAL FRAMEWORK OF HR PRACTICES

The study could help the human resource (HR) managers of manufacturing industries in India regarding formulation of HRM practices that are helpful in achieving commitment of the managerial employees result in high achievement level and learning among them. Better HR practices are always helpful in increasing staff performances. The present research studies especially most important four HR practices that have impact on the managerial employees’ commitment leads to their career development. These HR practices are training and development, compensation, reward & recognition and welfare activities. It has been found that by using these practices of HR, organization would be able to motivate, attract and retain employees which would help the organization in achieving its objective and organizational strategy which is further helpful in enhancing organizational performance.

3.1 Training & -Development

Training results in less stress in the workplace, improved personal performance, increased knowledge, improved team working, working relationships with peers, increased job satisfaction and retention Sudhaker                       (2005).It is defined as the continuous effort done to improve competency of the employee and performance of the organization  Mondy (2010).  Trained employees exchange their knowledge and skills while performing duties in the organization by using their creativity. The training and development benefits include morale improvement, satisfaction of the employees, junior turnover rate and high retention level. All these benefits help in satisfying the employees, increasing commitment and motivation of the employees which results in improved competence and performance of the employee. Due to lack of training, support from senior faculty members the performance of the lecturers in higher education is low. Therefore training has an impact on the staff’s performance in the education industry Aslam and Rasheed (2010).

3.2 Compensation

Compensation refers to both financial and non-financial rewards which the company is giving to its employees in exchange of work done by them Williams (2008). In broad terms, Compensation can be explained other than wage or salary as it includes Vlachos, (2009). The basic element which affects the organizational performance as well as employee’s performance is compensation. It is just extra pay or reward which encourages the individual to join in the new organization, retain and perform well in the existing organization. Performance of the teachers towards their work is affected by some issues such as salaries and promotion. That is the reason why teachers are concerned about late payment of salaries Mbanefoh (1982).Compensation act as an independent variables which  influence the performance of academic staff  as individual always consider monetary and non-monetary rewards like motivating agents which help in improving their  performance. So it is necessary for the employer to take decision regarding how employees are being paid as this is helpful in attracting the best employees and motivating the existing employees Eton (1984). Recruiting and retention is affected a lot by compensation given by the firm, because the firm cannot have the critically knowledgeable employees if they cannot pay them enough Cardon and Stevens (2004).

3.3 Reward and recognition

Reward and incentive programs should be designed to recognize and encourage good performance Burke

(2005). “Good managers recognize people by doing things that acknowledge their accomplishments and they reward people by giving them something tangible.” Deeprose(1994). Researcher found that when the management recognize and acknowledge employees in relation to their identification, their capacity of work and performance increase Baron (1983).The motivational level of employees’ increases when they unexpectedly got increment in pay and recognition La Motta (1995).Giving reward to the employees as per  individual’s ability and skills make employee  loyal towards one’s work and when they got recognition for using their skills and abilities in mentally challenging job than they feel greater job satisfaction level Bull (2005).

3.4 Welfare activities

Employee welfare helps in maintaining commitment among the employees as well as creating a climate of confidence on the workforce of company. When the organization is taking care of the physical as well as mental health of the employee along with his/her family then he/she can work freely. Safe and healthy workplace promotes wellness among its employees as it helps the employees in retaining confidence in the organization Schoch, (2005). Researcher studied the effect of working conditions on job satisfaction. It was observed that the informants get very low wages and they are not satisfied with physical atmosphere. Sometimes they even have to work without any break. Service firms should take care of their employees in a proper manner in dealing with their emotions and behavior in terms of employees’ job satisfaction that leads to feel empathetically on delivering service to customers in an excellent manner Gonzalez & Garazo (2006).

 

  1. CONCEPTUAL FRAMEWORK OF JOB SATISFACTION

A study on Job satisfaction and working conditions revealed that few aspects of working conditions were- wages, benefits, job security, physical atmosphere at work place and promotional prospects. By improving all the above-mentioned conditions, satisfaction level can be achieved (Sharan, 1980). High wages are responsible for higher Job satisfaction. Fringe benefits and grown dimensions also have positive correlation with Job satisfaction (Bhushan, 1968).  Researchers undertook an empirical study on the relationship between organizational support, employee development, and job satisfaction. This study conducted in a major Midwestern hospital. It was found that job satisfaction and perceived organizational support were significantly correlated with satisfaction and with career development (Tansky & Cohen, 2001). Workers working for longer hours in larger establishments had lower level of Job satisfaction which is due to non-compensating differentials in the industry (Clark, 1996).

To deliver service to customers in an excellent manner the service firms should take care of their employees in a proper manner with their emotions and behavior which results in employees’ Job satisfaction (Gonzalez & Garazo, 2006). Employee satisfaction is key to success for any organization which can be achieved by providing them with better compensation packages, better working environment, training & development as compared to the market (Christina & Gursoy, 2009).

 

  1. RELATIONSHIP BETWEEN hr practices AND Job satisfaction

HR practices like orientation, career development, non financial compensation, and feedback provide competitive advantage to IT organizations which further help in the retention of the employees. Training, motivational strategies, and financial compensation are necessary HR practices to avoid dissatisfaction among the employees, but not help in encouraging the retention of the employees is observed Naggiar (2001).Physical therapists were studied in hospitals by the researcher. In the study, it is revealed that the stress had a negative influence on job satisfaction and commitment to the organization Lopopolo (2002). The ability of profit sharing increases the organizational performance due to the positive change in the attitude of the engineering employees. Favorable thinking of the employees regarding profit sharing help in increasing job satisfaction as discussed by Jacqueline et al. (2002).

The researcher in his study of Pakistan telecom sector explored contribution of HR practices and employee participation on perceived employee performance. Results show that all the tested variables are positively correlated Marwat et al. (2007). Employee satisfaction is key to success for any organization which can be achieved by providing them with better working environment, training & development, better compensation packages as compared to the market Christina et al. (2009).

 

  1. HYPOTHESIS

H1: Employees perception about the HR practices in three levels of management of textile units under study differ significantly.

H2: Job satisfaction of the employees in three levels of management of the textile units under study differs significantly.

H3: All the four HR practices have a significant influence on job satisfaction.

H3a: Training and development has significant influence on the job satisfaction.

H3b: Compensation has significant influence on the job satisfaction.

H3c: Reward and recognition has significant influence on the job satisfaction.

H3d: Welfare activities have significant influence on the job satisfaction.

 

  1. RESEARCH METHODOLOGY

7.1 Scope of the study

The present study was done to check the HR practices and job satisfaction of the employees of the textile units in Punjab. The study had been conducted at three levels of management to show the complete picture of HR practices and job satisfaction of the employees in the textile units in Punjab. Primary data was collected from the major textile players in Punjab. Major four textile players were chosen to collect the data. The total number of respondents was about 313 out of them 227 respondents respond to our queries. They were further classified into three categories on the basis of level of management.

  • Employees from senior level(A1)
  • Employees from middle level(A2)
  • Employees from senior level(A3)

The detailed sample profile of the textile units’ understudy from each group is shown in the figure 1.                       

                         

Figure 1: Detailed sample profile of the textile units’ understudy from each group

7.2 Collection of data

The information was collected from 227 employees in 6 textile units of Punjab of all three levels of management discussed above including senior, middle and junior level of employees.

 7.3 Source of data

In present research both the primary and secondary data were used. Primary data was collected with the help of questionnaire which was filled from the employees of the textile units and secondary data was collected from reports, journals, research articles, magazines and websites of the respective textile units.

7.4 Techniques

The questionnaire was developed by after having brainstorming session with senior, middle and junior level employees for HR practices and job satisfaction of the employees of textile units. The questionnaire use the information relating to the demographic profile of the employees covering various aspects like their age, qualification, gender, marital status, experience in the present organization, total experience and level of management. It was further followed by two sections first one was related to 16 questions of  HR practices consisting 6 questions relating to training & development,4 questions relating to compensation, 3 questions relating to reward & recognition, 3 questions relating to welfare practices. In order to measure the dependent variable Job satisfaction, we have used the standardized questionnaire of Job satisfaction developed by B.L.Dubey, C.K.Maini and K.K.Uppal. The questionnaire contains 20 statements. These statements are further structured on three parts: team working and supportive culture, working condition and quality of work life, and supervisory style and skill enhancement. The team working and supportive culture groups the items 1,2,3,7,8,15,18,19,20. The working conditions and quality of work life groups the items 4, 5,6,10,11,16,17. The supervisory style and skill enhancement groups the items 9,12,13,14.

A five-point Likert scale was used in the questionnaire. The 5-point scale ranged from: 1 =strongly disagree, 2 = disagree, 3 = undecided, 4 = agree and 5= strongly agree.

Cronbach’s alpha coefficient was calculated to ascertain scale reliability. An internal reliability ≥ 0.7 is acceptable, 0.5 is generally unacceptable for most of the scales.  0.7 or above composite reliability and Cronbach’s alpha represents an appropriate indication of internal consistency and reliability. The Cronbach alpha here comes to be .846 which satisfies the reliability test.

To achieve the results, the researcher used the statistical analysis technique i.e. SPSS (22.0) package and the data was analyzed through it. The tools used to get result of the hypothesis are: analysis of variance (ANOVA), f test, and correlation, multiple comparison and regression analysis.

  1. RESULTS AND DISCUSSIONS

The research is done to know the significance between the sample means through analysis of variance. This is done by using f test for testing the significance of HR practices and its dimensions in all the three levels of management. The result of the analysis through SPSS is shown below:

H1: Perception of employees about HR practices in three levels of management of textile units under study differs significantly.

Hypothesis:

H0:A1=A2=A3

H0 is accepted, when p value is > 0.05

H1:A1≠A2≠A3

H1 accepted, when p value is < 0.05

 A1, A2, A3 are the mean of HR practices of senior level, middle level, junior level. From table 1 it is clear that probability .197 is greater than 0.05; at 5 percent level of significance thus null hypothesis is accepted. The result is that the thinking of employees about HR practices does not differ significantly in all the three levels of management in the selected textile units. So H1 is rejected, it means that perception of employees about HR practices in all three levels of management is same.

 

 

 

Table 1: Analysis of variance of HR practices in three management levels of textile units

Variable

Strata

N

Mean

Std. Deviation

Std. Error of Mean

% of Total N

 

 

Hr practices

Senior level

9

4.19

.160

.053

4.0%

Middle level

100

4.09

.187

.019

44.1%

Junior level

118

4.08

.179

.017

52.0%

Total

227

4.09

.182

.012

100.0%

ANOVA: F-Value: 1.635 (p=.197)

Tukey’s method was used to find out the variance. As per table 2 for post hoc multiple comparisons, it can be concluded that employees in textile units of senior level perceive their HR practices more positively than the middle and junior level employees of textile units.

Table 2: Multiple comparisons between three management levels of textile units for HR practices

Dependent Variable:   HR Practices 

Tukey HSD 

(I) Managerial Level

(J) Managerial Level

Mean Difference (I-J)

Std. Error

Sig.

95% Confidence Interval

Lower Bound

Upper Bound

Senior level

Middle level

.095

.063

.289

-.05

.24

Junior level

.112

.063

.180

-.04

.26

Middle level

Senior level

-.095

.063

.289

-.24

.05

Junior level

.016

.025

.789

-.04

.07

Junior level

Senior level

-.112

.063

.180

-.26

.04

Middle level

-.016

.025

.789

-.07

.04

 

So far the dimensions of HR practices are concerned as given in table 3 it is evident that there is no significant difference in the perception of employees at different levels of management about training & development (p=0.918), compensation (p=0.782), reward & recognition (p=0.977), and welfare activities dimension (p=0.774) of HR practices in three levels of management of textile units, as the probability > 0.05. From the mean and standard deviation it is proved that all these dimensions are high in senior level, middle level and junior level. The study thus reveals that irrespective of the level of management there is no significant difference in training& development, compensation, reward & recognition and welfare activities.

 

 

 

 

 

 

Table 3: Analysis of Variance of dimensions of HR practices in three management levels of textile units

Strata

N

Training&      development

        Compensation     

 

 

 Reward & recognition

 

     Welfare activities

 

 

    Mean

       Std.      deviation

     Mean

        Std.          deviation

    Mean

           Std.

    deviation

    Mean

         Std.

 deviation

 

Senior level

9

4.00

.264

3.28

.712

4.22

.408

4.33

.408

 

Middle level

100

4.00

.265

3.14

.578

4.19

.440

4.25

.368

 

Junior level

118

3.98

.292

3.17

.605

4.19

.426

4.27

.341

 

TOTAL

227

3.99

.278

3.16

.595

4.19

.441

4.26

.355

 

ANOVA F-Value

 

.085(p=.918)

 

.246(P=.782)

 

.023(P=.977)

 

.256(P=

.774)

 

 

                         

 

 H2: Job satisfaction of the employees in three levels of management of the textile units under study differs significantly.

As shown in table4, it is clear that probability 0.664is more than 0.05 therefore at 5% level of significance the null hypothesis is accepted. The result is that job satisfaction level of employees does not differ significantly in three levels of management of textile units. So H1 is rejected, it means that job satisfaction level of employees and its dimensions to all three levels of management of textile units is same.

Table 4: Analysis of Variance of Job satisfaction in three management levels in textile units

Variable

Strata

N

Mean

Std. Deviation

Std. Error of Mean

% of Total N

 

 

Job satisfaction

Senior level

9

3.97

.151

.050

4.0%

Middle level

100

3.94

.154

.015

44.1%

Junior level

118

3.94

.171

.016

52.0%

Total

227

3.94

.162

.011

100.0%

ANOVA: F-Value: .197 (p=.821)

Tukey’s method is used to find out the variance. According to table 5 for post hoc multiple comparisons, it can be concluded that employees in textile units of senior level think their job satisfaction positively than the middle and junior level employees of textile units.

Table 5: Multiple Comparisons between three management levels of textile Units for Job satisfaction

Dependent Variable:   Job Satisfaction 

Tukey HSD 

(I) Managerial Level

(J) Managerial Level

Mean Difference (I-J)

Std. Error

Sig.

95% Confidence Interval

Lower Bound

Upper Bound

senior level

middle level

.035

.057

.806

-.10

.17

junior level

.033

.056

.823

-.10

.17

middle level

senior level

-.035

.057

.806

-.17

.10

junior level

-.002

.022

.995

-.05

.05

junior level

senior level

-.033

.056

.823

-.17

.10

middle level

.002

.022

.995

-.05

.05

 

So far the dimensions of HR practices are given in table 6 it is evident of no significant difference in the thinking of employees at all three levels of management about affective commitment (p=0.846), normative commitment (p=0.248) and continuance commitment dimension (p=0.125) of organization commitment in three levels of management of textile units, as the probability > 0.05.  From the mean and standard deviation it is clear that all are high in all three management level: junior level, middle level and senior level.  Irrespective of the management level there is no significant difference in all the dimensions of job satisfaction.

Table 6: Analysis of Variance of three dimensions of Job satisfaction in three management levels textile sector

Strata

N

Team working & supportive culture     

               Working condition &

                    quality of work

             Supervisory style & skill

                    enhancement 

 

 

   Mean

Std.

Deviation

    Mean

Std. deviation

  Mean

Std. deviation

Senior level

9

   4.04

 

.167

     3.90

.277

  3.97

.292

Middle level

100

   3.90

.246

     3.92

.252

  3.98

.308

Junior level

118

   3.93

.215

     3.93

.262

  3.96

.362

TOTAL

227

   3.92

.228

     3.93

.257

  3.97

.336

ANOVA F-Value

 

 1.570(p=.210)

 

  .050(p=.951)

 

.174(p=.)840

 

                     

 

As perception of employees regarding HR practices is better in junior level and job satisfaction level is better in senior level. Now from this we found out that HR practices has a direct impact the commitment of the employees.HR practices and job satisfaction was checked with the help of Pearson correlation before regression analysis. Analysis the Preliminary stage revealed that all relations were found to be significant. There was no violations of the assumptions of linearity and there was a strong association between job satisfaction and training & development (r=0.792; p<0.05) and lowest with welfare activities (r=0.238; p<0.05) as shown in Table 7.

 

Table 7: Correlation-HR practices and Job satisfaction

 

Job Satisfaction

Training & Development

Compensation

Reward & recognition

Welfare

Job Satisfaction

Pearson Correlation

1

.792**

.625**

.259**

.238**

Sig. (2-tailed)

 

.000

.000

.000

.000

N

227

227

227

227

227

Training & Development

Pearson Correlation

.792**

1

.443**

.168*

.168*

Sig. (2-tailed)

.000

 

.000

.011

.011

N

227

227

227

227

227

Compensation

Pearson Correlation

.625**

.443**

1

.121

.035

Sig. (2-tailed)

.000

.000

 

.069

.603

N

227

227

227

227

227

Reward & recognition

Pearson Correlation

.259**

.168*

.121

1

.086

Sig. (2-tailed)

.000

.011

.069

 

.196

N

227

227

227

227

227

Welfare

Pearson Correlation

.238**

.168*

.035

.086

1

Sig. (2-tailed)

.000

.011

.603

.196

 

N

227

227

227

227

227

**. Correlation is significant at the 0.01 level (2-tailed).

*. Correlation is significant at the 0.05 level (2-tailed).

H3: All four HR practices have a significant influence on job satisfaction.

H3a: training and development has significant influence on the job satisfaction.

H3b: Compensation has significant influence on the job satisfaction.

 H3c: Reward and recognition has significant influence on the job satisfaction.

 H3d: Welfare activities have significant influence on the job satisfaction.

 To derive the entire above hypothesis we used multiple stepwise regression analysis. The best predictor of job satisfaction and to check the best fit of the regression model, stepwise regression was used with HR practices as predictors. In the model, four dimensions of HR practices, which consisted of 16 items, act as independent variables and job satisfaction as dependent variable. The summary of regression model shows the relationship between independent and the dependent variable shown in table 9. The Table shows test of independence of errors and adjusted R2. Table 8 shows analysis of variance results. The result of f test is < 0.05, which prove that the variation is not due to chance. The results significantly proved that job satisfaction is influenced by HR practices in textile sector. After having a close look at the results in Table 8 and table 9 proves that the most important variable in HR practices is training & development and welfare activities is the weakest. Thus, we can conclude that HR practices are a significant predictor of satisfaction.

The above results support Hypotheses H3a, H3b, H3c and H3d. Further, Table 8 suggests that the practices related with HR are very much significant for overall job satisfaction. So we can say this that employees in the textile sector are attached to all HR practice i.e. training & development, compensation, reward & recognition and welfare activities. Thus, more effective these HR practices more will be the employees satisfied towards their organizations.

Table 8: Stepwise regression analysis of Job satisfaction

Model

Unstandardized Coefficients

Standardized Coefficients

t

Sig.

B

Std. Error

Beta

1

(Constant)

2.099

.095

 

22.111

.000

Training & Development

.461

.024

.792

19.432

.000

2

(Constant)

2.156

.083

 

26.108

.000

Training & Development

.373

.023

.640

16.249

.000

Compensation

.093

.011

.342

8.667

.000

3

(Constant)

2.019

.091

 

22.132

.000

Training & Development

.364

.023

.624

16.033

.000

Compensation

.091

.011

.335

8.667

.000

Reward & recognition

.043

.013

.114

3.236

.001

4

(Constant)

1.848

.103

 

18.006

.000

Training & Development

.352

.022

.603

15.642

.000

Compensation

.093

.010

.341

9.018

.000

Reward & recognition

.040

.013

.107

3.094

.002

Welfare

.053

.016

.116

3.367

.001

a. Dependent Variable: Job Satisfaction

 

Table 9: Excluded Variables

Model

Beta In

t

Sig.

Partial Correlation

Collinearity Statistics

Tolerance

1

Compensation

.342b

8.667

.000

.501

.804

Reward & recognition

.130b

3.202

.002

.209

.972

Welfare

.108b

2.656

.008

.175

.972

2

Reward & recognition

.114c

3.236

.001

.212

.969

Welfare

.122c

3.499

.001

.228

.970

3

Welfare

.116d

3.367

.001

.220

.966

a. Dependent Variable: Job Satisfaction

b. Predictors in the Model: (Constant), Training & Development

c. Predictors in the Model: (Constant), Training & Development, Compensation

d. Predictors in the Model: (Constant), Training & Development, Compensation, Reward & recognition

 

  1. CONCLUSIONS AND IMPLICATIONS

The present study proved the hypotheses correct that better HR practices help in job satisfaction. The study shows that there is a clear positive relationship between HR practices and job satisfaction, particularly in the Indian textile sector. No doubt that there is the limitation of sample and research design moreover the respondents are also of Punjab region only but still, being the major textile units, it is relevant.  Another limitation might be on the basis of measures used, which were based upon the thinking of the respondents.

ANOVA and post hoc tests, help in checking H1 and H2 show no significant difference in HR practices and job satisfaction among three levels of management.  All HR practices have significant influence on job satisfaction it irrespective of the level of the management.

Step-wise multiple regressions reveal that all four HR practices predicted the satisfaction of employees in the textile sector. While interpreting the independent variable i.e. job satisfaction and the four HR practices provide contributions and act as the key predictors of the result. All these HR practices should be keep in mind as they have the direct impact on the satisfaction of textile sector employees towards their organizations as it result in employee retention.  Evans et al. (2000) revealed that the organizations now days are not only concerned with employee retention but also with the welfare of the employees which help in maintaining cordial relation between the management and employees. It means the organizations want to retain their employees. Therefore, the focus of the management should be on implementing best HR practices to increase the satisfaction. Particularly, organizations generally look into the ways which would help in increasing the satisfaction level of the employees by giving them growth opportunities, best remuneration, reward which ultimately increase their potential. The type of job person is doing, the benefits related to it and the career growth opportunities affect the job satisfaction level of the employees. The findings of the present study are significant for the Human Resource managers. No doubt the results can’t be specified but even then they are giving certain direction. Human resource management practices are important tool for the growth of the organization they are strong predictors of job satisfaction of managerial employees.

 

  1. Recommendation

Thus the present study states that to compete in this competitive market, the textile unit selected needs to work constantly upon the areas that can create a difference from the Human resource perspective, an effective human resource practices in all the departments can make all the difference. Enhanced satisfaction of the employees increases the productive results of the selected textile unit. So it is necessary to not to take employees satisfaction level for granted. Therefore appropriate employee engagement strategy should be followed by the organization to help to convert employees’ satisfaction into a speedy action.

 

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