Presented By
Group 6
Section F
Contents
Contents.......................................................................................................................................ii
1.Executive Summary..................................................................................................................1
Introduction: Background of the Study.........................................................................................2
Objective of the Study..............................................................................................................3
Scope of the Study...................................................................................................................3
Methodology.............................................................................................................................3
Existing Systems......................................................................................................................4
Brief Profile and History of the Industry under Observation..........................................................5
Overview..................................................................................................................................5
Structure...................................................................................................................................5
Opportunities............................................................................................................................6
Future.......................................................................................................................................6
Organization under Study.........................................................................................................6
Infosys Technologies Ltd......................................................................................................6
Data Analysis...............................................................................................................................7
Overall Regression Result........................................................................................................7
Overall Correlation Result........................................................................................................9
Regression Analysis for Employees (<2 Years of Experience)...............................................10
Correlation Analysis for Employees (<2 Years of Experience)...............................................11
Regression Analysis for Employees (>2 Years of Experience)...............................................12
Correlation Analysis for Employees (>2 Years of Experience)...............................................13
Interpretation..........................................................................................................................14
Block Diagram...........................................................................................................................17
Recommendations.....................................................................................................................18
Sources and References...........................................................................................................19
Appendix....................................................................................................................................20
8.1 Survey Questionnaire.......................................................................................................20
1. Executive Summary
Job stress is the harmful physical and emotional response that occurs when there is a poor
match between job demands and the capabilities, resources, or needs of the worker. Job stress
is also associated with various biological reactions that may lead ultimately to compromised
health, such as cardiovascular disease, or in extreme cases, death. The project studies the
impact of some of the factors which have an impact on job stress. The factors that have been
taken into consideration are as follows:
• Organizational politics
• (Un)ethical leadership
The project uses a survey questionnaire with questions pertaining to each of the variables i.e.
(Un)ethical Leadership, Politics in Organizational politics and Job Stress. Added to the above
factors, the project takes into consideration the age, gender and work-experience of the
employees who have undergone the survey. These questions were designed to know the level
of each of the variables given above on a scale of 1 to 5. The values, hence, were then used to
carry regression analysis.
The organization chosen for the study is “Infosys Technologies Ltd”. Infosys is one of the
leading companies of India in Information Technology (IT) and consulting with revenues of over
US$ 4.8 billion (FY 10). The IT sector is one of the leading sectors that report a high level of job
stress among its employees. The project aptly conducts its survey in this industry which has an
employee burnout more than any other industry.
Overall, the project examines linkages between above mentioned factors on individuals that
might lead to job stress, a serious concern that affects the productivity of employees and go on
to relate itself with job satisfaction.
Job Stress:
Job stress can be defined as a physical or psychological stimulus that can produce mental
tension or physiological reactions, when there is a poor match between job demands and the
capabilities, resources, or needs of the worker. Stress related disorders encompass a broad
array of conditions, including psychological disorders (e.g., depression, anxiety, post-traumatic
stress disorder) and other types of emotional strain (e.g., dissatisfaction, fatigue, tension, etc.),
maladaptive behaviors (e.g., aggression, substance abuse), and cognitive impairment (e.g.,
concentration and memory problems). In turn, these conditions may lead to poor work
performance or even injury.
Organizational politics:
Job Stress: Psychological stress arises when people face situations that they appraise as taxing
or exceeding their resources and endangering their wellbeing - (Lazarus and Folkman, 1984).
Job satisfaction: Job satisfaction is a positive emotional state that arises when people appraise
their job or job experiences (Locke, 1976, p. 1300).
Ferris et al. (1989) suggested that an increase in perceived organizational politics is associated
with a decrease in job satisfaction.
Turnover intention: Turnover intention refers to employees’ thoughts of quitting their present job.
Because people tend to view organizational politics as undesirable, they are unlikely to want to
remain permanently in a workplace they perceive to be politically charged. Employees may
choose to withdraw physically or psychologically. One physical form of withdrawal is to quit the
job. Not all employees, however, have the immediate luxury of such an option.
Ethical leadership:
Ethical leaders are characterized as honest, caring, and principled individuals who make fair and
balanced decisions. Ethical leaders also frequently communicate with their followers about
ethics, set clear ethical standards and use rewards and punishments to see that those
standards are followed. Finally, ethical leaders do not just talk a good game— they practice
what they preach and are proactive role models for ethical conduct.
The rewards to organizations supporting ethical cultures may include increased efficiency in
daily operations and decision making, employee commitment, product quality improvements,
customer loyalty, and improved financial performance.
The study also includes to what extent the independent variables affect the dependent
variable viz. Job Stress.
Methodology
The data has been collected through the use of a survey questionnaire which had certain
choices linked to numerical values. The survey questionnaire was sent to the employees
via email. The sample was taken from the company under study i.e. Infosys Technologies
Ltd. All the questions were clubbed under three heads to represent the variables under
the study. The sum of each of the numerical values is done for each question under each
independent variable and also for each question of the dependent variable (Job Stress).
The questionnaire consisted of two sections each consisting standard set of tested
questions. Please refer the appendix for the questions.
Existing Systems
To deal with job related stress, Infosys has the following system in place:
Overview
The Indian Information Technology industry accounts for a 5.9% of the country's GDP and
export earnings as of 2009, while providing employment to a significant number of
workforces. More than 2.3 million people are employed in the sector either directly or
indirectly, making it one of the biggest job creators in India and a mainstay of the national
economy. In March 2009, annual revenues from outsourcing operations in India amounted to
US$50 billion and this is expected to increase to US$225 billion by 2020. The most prominent
IT hub is IT capital Bangalore. India's growing stature in the information age enabled it to
form close ties with both the United States of America and the European Union. However, the
recent global financial crisis has deeply impacted the Indian IT companies as well as global
companies.
India's IT Services industry was born in Mumbai in 1967 with the establishment of Tata Group
in partnership with Burroughs. The first software export zone SEEPZ was set up here way
back in 1973, the old avatar of the modern day IT Park. The IT industry of India got a major
boost from the liberalization of the Indian economy. India's software exports have grown at an
annual average rate of more than 50% since 1991.
Structure
The structure of the IT industry is quite different from other industries in the Indian economy.
The IT industry of India is hugely dependent on skilled manpower. Primarily a knowledge
based industry. The industry structure in the IT sector has four major categories. These are:
• IT services
• IT enabled services
• Software products
• Hardware
Another categorization in the structure of India's IT industry is related to the market. There
are two major market classifications - the domestic market and the export market. The export
market, dominates the IT industry accounting for 75% of the revenue.
Opportunities
According to NASSCOM (National Association of Software and Services Companies),
'Strategic Review 2007’ report, direct employment is expected to exceed $1.6 million. These
opportunities are mainly due to following factors:
Global Market and Outsourcing: The market is large and rapidly changing-from a mix of
legacy client server to web / package-based services. Market openings are emerging across
I.T. services, software products, I.T. enabled services and E-businesses, and creating a
number of new opportunities for Indian companies.
Domestic Demand: The corporate, government and consumer sector of the Indian domestic
market offers a U.S. $18 billion opportunity by 2008 to software and services companies.
E-Commerce/E-Business: India not only has a huge opportunity to service this market but
also has a unique opportunity to address the needs of the NRI community around the world.
Future
There is a clear imbalance between the demand and supply of IT professionals with the result
that this sector offers one of the highest remuneration packages. It is expected that the India
Software Industry will generate a total employment of around four million people, which
accounts for 7 per cent of India's total GDP, in the year 2010. Global giants such as
Microsoft, SAP, Oracle, and Lenovo have already established their captive centers in India.
These companies recognize the advantage India offers, as compared to other competing
countries such as China or South Korea, and also the fact that it is among the fastest growing
IT markets in the Asia-Pacific region. The number of job opportunities in the sector is only
expected to grow further.
In 2009 and 2001, it was rated as the Best Employer in India by Business Today. Infosys was
rated best employer to work for in 2000, 2001, and 2002 by Hewitt Associates. Infosys won
the Global MAKE (Most Admired Knowledge Enterprises) award, for the years 2003, 2004
and 2005, being the only Indian company to win this award and is inducted into the Global
Hall of Fame for the same.
Data Analysis
The data has been collected for the independent and dependent variables. The individual mean
score is then calculated for each of the section. This yielded the aggregate level of Unethical
Leadership, Role of politics and job stress for an individual. While calculating the score, the
scale adhered to was:
This data along with some of the background variables like age, years of experience, etc. were
consolidated and regression analysis was run. The questions were jumbled and they could be
categorized under three types.
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.5505
R Square 0.3030
Adjusted R Square 0.1763
Standard Error 2.7154
Observations 27.0000
ANOVA
Significance
df SS MS F F
Regression 4.0000 70.5276 17.6319 2.3913 0.0817
Residual 22.0000 162.2131 7.3733
Total 26.0000 232.7407
• A value between 0.3 to 0.7 and -0.3 to -0.7 implies weak degree of correlation
• A value between 0.7 to 1.0 and -0.7 to-1.0 implies strong correlation
• Negative value indicates negative correlation whereas positive value indicates positive
correlation.
Thus the Stress equation obtained using multivariate regression analysis is given as below:
We have segregated the responses in terms of number of years of experience because we want
to analyze whether the number of years of experience has any impact on the relationship
between Job Stress and Organizational Politics.
Total
S score L score P score Age Experience
S score 1.000000
L score 0.307669 1.000000
P score 0.447973 0.390512 1.000000
Age -0.301873 -0.168707 -0.038770 1.000000
Total Experience -0.295641 -0.057832 -0.007846 0.877163 1.000000
Thus the Stress equation obtained for Employees (<2 years of experience) using multivariate
regression analysis is given as below:
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.5798
R Square 0.3362
Adjusted R Square 0.1964
Standard Error 2.8347
Observations 24.0000
ANOVA
Significance
df SS MS F F
Regression 4.0000 77.3208 19.3302 2.4055 0.0855
Residual 19.0000 152.6792 8.0357
Total 23.0000 230.0000
Total
S score L score P score Age Experience
S score 1.000000
L score 0.307669 1.000000
P score 0.447973 0.390512 1.000000
Age -0.301873 -0.168707 -0.038770 1.000000
Total Experience -0.295641 -0.057832 -0.007846 0.877163 1.000000
Thus the Stress equation obtained for males using multivariate regression analysis is given as
below:
Interpretation
• From the overall regression analysis, we infer that the job stress is directly related to the
Unethical leadership and Organization Politics. The correlation factor is 0.307 and 0.447
for Unethical leadership and Organization Politics respectively. This indicates that
although job stress increases with increase in Unethical leadership and Organization
Politics, the relationship between them is not so strong. So our inference is that there are
lots of other forces except Unethical leadership and Organization Politics in action which
leads to job stress.
• The correlation factor between Job Stress with Years of experience and age of the
individual is -0.301 and -0.295 respectively which shows that they are inversely related.
This is expected and the results reinforce this theory. As the employee gains experience
in the organization, there is a possibility that his stress level decreases and his
Organization Citizenship Behavior improves. He understands the work culture of the
organization in a better way and thus, his acceptance level increases and probably his
perception of politics becomes broader.
• We expected that the relationship between the job stress for employees having more
than two years of experience will be weaker than for employees having less than two
years of experience. However our result shows that the relationship is more or less the
same. Thus, the entry level employee and employee with work experience in a similar
way towards organizational politics.
• The correlation factor between the Unethical leadership and Organization Politics is
0.3905 which shows a moderately strong relation between them.
Figure 1: From the above we find that with reduction in Unethical Leadership there is corresponding
reduction in Organizational Politics and Vice Versa.
Figure 2: From the above we find that with reduction in Unethical Leadership there is corresponding
reduction in Job Stress and Vice Versa.
Figure 3: From the above we find that with reduction in Organizational Politics there is
corresponding reduction in Job Stress and Vice Versa.
Block Diagram
Figure 4: Figures explaining the relationship between (Un)ethical Leadership, Organizational Politics
and Job Stress
Recommendations
• To ensure procedural and interactional justice good performers should be recognized
and awarded fairly.
• To reduce job ambiguity, management should ensure that employees are clear about
their work objectives, roles and responsibilities.
• Management should also have clear and consistent policies and practices, including
human resource policies on promotion and compensation.
• There should be proper feedback mechanism to identify the stress levels of employees
and to identify the reasons for stress.
• www.en.wikipedia.org
• Ethical leadership: A review and future directions by Michael E. Browna and Linda K.
Treviñob
Appendix
Dear Sir/Madam,
With Regards,
Student of PGDM
IMT Ghaziabad
Section 1:
Reponse
Questions s
Name of Unit/Division/Department __________
Age __________
Sex __________
Marital Status (Married or Not Married) __________
Educational Qualification __________
Total experience (Years) __________
No. of years in current organization __________
Age of the firm __________
Your position in the firm __________
Your Responsibilities __________
No. of employees in the firm __________
You report to (Supervisor's designation) __________
Section 2
Instructions
Given below are some statements that indicate some organizational values. After reading a
statement, tick the number which indicates how much the spirit contained in the statement is
valued in your organization. Please be frank.
Reponse
Questions s
1 Employees are encouraged to speak out frankly even when they are
critical of well-established ideas __________
2 Individuals are stabbing each other in the back to look good in front
of others __________
4 Since I have worked at this organization, I have never seen the pay
and promotion policies applied poltitically __________
5 None of the raises I have received have been consistent with the
policies on how raises should be determined __________
11 People do what's best for them, not what's best for the organization __________
13 People are working behind the scenes to ensure that they get their
piece of the pie __________
Reponse
Questions s
14 My superior coaches and counsels the subordinate whenever
required __________
22 It is safer to think what you are told than to make up your own
mind __________
23 Promotions around here are not valued much because how they are
determined is so political __________
27 People spend too much time sucking up to those who can help
them __________
Reponse
Questions s
31 Individuals are stabbing each other in the back to look good in front
of others __________
33 I confide in my seniors without fear that they will misuse the trust __________
37 Many employees are trying to maneuver their way into the group __________