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International Journal of Advanced Scientific


e-ISSN: 2395-6089
Research & Development
Vol. 03, Spl. Iss. 03, Ver. I, Sep 2016, pp. 01 08

p-ISSN: 2394-8906

Impact of High Involvement Work Practices on Employees


Attitude and Behaviour of Commercial Banks in Chennai
Dr. V. JAYANTHI
Senior Asst. Prof., Department of Bank Management (SS), Ethiraj College for Women, Chennai.

R. ANUPAMA
Asst. Prof., Department of Bank Management (SS), Ethiraj College for Women, Chennai.

ARTICLE INFO

ABSTRACT

Article History:

Commercial banks can create a competitive advantage


through the methods they adapt to design their human
resource systems. High involvement work practices were
considered to be a way to increase banks performance and
decrease employee turnover this may happen when the
employees are with a positive attitude and behaviour .The
"High Involvement Work Practices" (HIWP) highlights on
the active participation of employees in the work process
through teams and problem-solving groups, together with
sharing of information between management and labour,
and employee training and skill development which leads
to employee satisfaction. However, the factors involved are
difficult and complex to define, and the synergy amongst
the different factors hard to gauge. High involvement work
practices (HIWP) allow for additional input from employees
and allow commercial banks to optimize their essential
abilities more efficiently and effectively. The literature
suggested that there is no uniform approach in earlier
studies, and most research does not clearly define the
variables involved or agree on the expected results of such
systems. This paper highlights the contribution of high
involvement work systems in commercial banks in Chennai
and relating these systems to employees attitude and
behaviour. The results of the study suggest that high
involvement work practices have significant impact on
attitude and behaviour. This may contribute to increased
labour productivity in commercial banks.

Received: 22 Sep 2016;


Accepted: 22 Sep 2016;
Published online: 28 Sep 2016.

Key words:
High Involvement Work
Practices (HIWP),
Attitudes,
Behaviours,
Commercial Banks.

JEC Classification:

Copyright 2016 IJASRD. This is an open access article distributed under the Creative Common Attibution
License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original
work is properly cited.

How to cite this article: Jayanthi, V., & Anupama, R. (2016). Impact of High Involvement Work Practices on
Employees Attitude and Behaviour of Commercial Banks in Chennai. International Journal of Advanced Scientific
Research & Development (IJASRD), 03 (03/I), [Special Issue Sep 2016], pp. 01 08.

Emerging Innovative Strategies in Business Creating a Competitive Edge | Organized by PG


Department of Banking & Insurance Management and Department of Bank Management,
Ethiraj College for Women (Autonomous), Chennai 600 008.

INTRODUCTION
Human Resource Management is important for banks as it is a service industry.
The two key challenges faced by banks are managing people and managing of risk. The
banks need to manage the people effectively and efficiently and helps for achievement of
objectives in the banking business. Efficient risk management is possible only with
efficient and skilled manpower. Banking business continues to be Customer Oriented
Business emphasizing on customer satisfaction. Though pricing is important, there
may be other valid reasons for customers to select and stay with a particular bank.
Bank must make an effort to distinguish them by creating their specific jobs or images,
especially in transparent circumstances with extreme levels of competitiveness. In
future, the very existence of the banks would depend on customer satisfaction. The
banks need to meet the customer expectations for survival. Banks must articulate and
highlight the fundamental values to attract and preserve customers. Values such as
Soundness, Trustworthiness, Innovation, Global, Friendly, etc., require to be
highlighted by dependable actions on the ground and it would be the banks human
resource that would deliver this. For gaining competitive advantage through people
banks constantly need to search for innovative human resource management techniques
or practices. The success of such practices lies in the awareness and perception of
employees about it. It then leads to proper facilitation, which in turn results in better
individual and banks performance.
1.1 Review of Literature
Jeet and Sayeeduzzafar (2014) highlighted on the importance of human resource
as a source of competitive advantage for an organization. The practices such as training,
performance appraisal, teamwork and compensation had a positive impact on Job
Satisfaction. The study had a structured questionnaire with two sections, the first
section measured questions on Human Resource Management practices which comprise
of 25 statements related to Training, Teamwork, Performance Appraisal, Compensation,
and Participation and second section comprise of questions related to Job Satisfaction.
The findings of the study indicate that human resource management practices had
impact on job satisfaction of private bank employees
Mubashir Ahmad, et al. (2014) focused on the relationship between High
Involvement Management Practices and Employee job performance with the mediating
effect of job satisfaction in the banking sector. The conceptual framework has high
involvement management practices as independent variable, employee performance as
dependent variable and the job satisfaction as the mediating variable. The authors
adopted questionnaires from Takeuchi et al, Judge and Hochwarter, for measuring High
Involvement Management, Job Satisfaction and Individual Employee Job Performance.
The response rate was 71.3%. Correlation analysis, simple linear regression and step
wise regression analysis was adopted to test the hypotheses. The Outcomes obtained by
the authors were consistent with the previous research studies conducted. It was
concluded that there was significant relationship between high involvement
management and Job Satisfaction with employees performance. Likewise the findings
Volume 03, Special Issue 03, Version I | 28th September 2016

Impact of High Involvement Work Practices on Employees Attitude and Behaviour of


Commercial Banks in Chennai

from the regression analysis on the effect of high involvement work practices were found
significant on job satisfaction as well job performance. The authors concluded that the
research study can be used as a guide as it reveals the current performance in the
banking sector and its findings can be utilized to stress the problems of employees and
increase their productivity.
Selvam (2013) analysed the relationship of human resource management
practices with employees of State Bank of India, Chennai. The objective of his research
was to identify the influence of Human Resource Management Practices on Job
satisfaction and Performance of State Bank of India, Chennai. The human resource
Management practices measured in his study were employee participation, training, job
description, career planning system, compensation system, selection system and
performance appraisal system. The author identified the effective factors which
influenced the employees participation, training, job description, and career planning
system, compensation system, selection system and performance appraisal system. The
authors concluded that Job satisfaction plays an essential role in determining the
performance in State bank of India, Chennai. A model was developed that includes
Human Resource Management Practices and job satisfaction.
Jahanian et al., (2012) has surveyed the effect of HRM practices on the
productivity and found that productivity is affected by human resource management
practices. The study was conducted in two public sector banks- nationalized bank of
Pakistan and Bank of Punjab. The human resource management practices, which were
considered, include Recruitment and Selection, Pay, Incentive, Employment Security,
Teamwork, Flexible Job Assignment, Skills Training and Communication. The sample
size of the study was 100 and the author used proportionate random sampling
technique. The statistical technique that was used for analysing the data was Multiple
Regression Analysis. The variables identified by the author was recruitment & selection
followed by skills training & communication along with job security. It was concluded
that these variables are very much necessary for the productivity.
Khera (2010) strongly supports that there is significant relationship of employee
productivity with human resource practices such as transparent selection procedure,
employee welfare schemes, and damages for civil losses, training and staffing practice.
Hence, she had found that the more HR practices are in place, greater the bank
employee are competent and have sufficient role clarity in their job and have no
intention to leave the organization. Relationships between productivity and
management of human resource has been analysed from different perspectives. In her
study an attempt was made to investigate the extent to which Commercial Banks of
India differ on aspects of human resource management practices and the key human
resource management practices contributing to employee productivity. Convenience
sampling was used for data collection from 184 employees from three commercial banks
i.e. one private sector (Bank 1) one foreign sector (Bank 2) and one public sector bank
(Bank 3). The selected 17 HR practices have been given nomenclature as factors which
include manpower planning, recruitment and transparent selection procedure,
motivation of employees by rewards for exemplary performance, career planning,
training and development, creativity & innovation, team building, grievance redressal,
3

Volume 03, Special Issue 03, Version I | 28th September 2016

Emerging Innovative Strategies in Business Creating a Competitive Edge | Organized by PG


Department of Banking & Insurance Management and Department of Bank Management,
Ethiraj College for Women (Autonomous), Chennai 600 008.

employee participation, employee accountability, Quality of work life (QWL),


compensation management, benefits and services, discipline and incentives. This paper
concludes that if the commercial banks in developing countries are implementing HR
practices, they will be able to achieve the maximum contribution from their employees.
Respondents of three banks varied in their perception on four practices, which was
found significantly different in all the three banks as brought about by Duncans mean
test; these were grievance redressal, quality of work life, compensation management
and incentive. In commercial banks, the HR processes needs to be looked seriously to
make it an effective practice for enhancing employee productivity.
Bhatti and Qureshi (2007) identified relationship between job satisfactions,
employee productivity and employee participation. The authors selected 34
organizations form three main sector of Pakistan, namely Oil and Gas, Banking and
Telecommunication Sectors. The method adopted for collecting data was Questionnaire
method. Questionnaires were sent to various organizations of which 15 responded. The
data established that employee participation is the important determinant for job
satisfaction, and it has a positive significant effect on employees job satisfaction,
commitment and productivity. The participation from employee is long term and two
ways process; it needs attention from management and understandings from worker
side.
1.2 Objectives of the Study
To study the impact of high involvement work practices in association with
demographic factors on employees attitude and behaviour in Commercial Banks.
METHODOLOGY
A Structured questionnaire consisting of demographic factors, high involvement
work practices in commercial banks, attitude and behaviour of the respondents. The
responses were measured using 5-point likert scale ranging from Strongly Agree to
Strongly Disagree. The size of sample measured was 62. Secondary data were collected
from relevant journals, websites and official records. A total of 100 employees who were
managers, team leaders and employees were asked to participate. 62 completed
questionnaires were returned. Participation was voluntary, and the participants were
assured of confidentiality of results. The information provided in this questionnaire
formed the basis for further statistical scrutiny in the present study.
An effort has been made to determine the relationship between attitude and
behaviourand perception of employees on high involvement work practices, monthly
income, qualification, gender, experience and age of employees. Hence null hypothesis is
framed that there is no association between attitude and behaviour and perception of
employees on high involvement work practices, monthly income, qualification, gender,
experience and age of employees.
Volume 03, Special Issue 03, Version I | 28th September 2016

Impact of High Involvement Work Practices on Employees Attitude and Behaviour of


Commercial Banks in Chennai

DATA ANALYSIS
Respondents Distribution Based on the Gender, Age, Educational qualification,
Experience and Monthly Income in the banks
Table No: 1 Demographic Profile
Particulars
Gender

Age

Education
qualification

Experience

Monthly
Income

Frequency

Percentage

Male

30

48

Female

32

52

25-30

31

50

36-45

11

46-55

17

28

.> 55

11

Diploma

Under graduates

12

19

Post graduates

22

36

Professional

28

45

< 1years

11

18

1-3

14

22

4-8

15

9-15

10

>15

22

35

Less than 30,000

17

28

30,000-60,000

10

16

70,000-1,00,000

15

More than 1,00,000

26

41

Source: Primary Data


The above table shows that most of the respondents were Female (52%). The age
group of the respondents ranged between 25 and 30 years (50%). In Educational
Qualification most of the respondents were Professional (45%). Experience level ranged
from more than 15 years (35%). Monthly income ranged from more than 1, 00,000 (41%).
High involvement work practices, monthly income, qualification, gender, experience and
age of employees is taken as the independent variable and the employees attitude and
behaviour is considered the dependent variable.
The variables considered forAttitudewere Motivation, Job Satisfaction and
Commitment. The variables considered forBehaviour were Turnover Intentions and
Absenteeism.
The variables considered for high involvement and work practices were the
following variables viz., Job Security, Selection Process, Salary, Incentive, Employee
Ownership, Employee Participation,Employee Training and Skill Development, SelfManaged Team and Job Design. The respondents were asked to self-evaluate their level
of agreement with respect to the abovementioned variables on a five point Likert scale.
5

Volume 03, Special Issue 03, Version I | 28th September 2016

Emerging Innovative Strategies in Business Creating a Competitive Edge | Organized by PG


Department of Banking & Insurance Management and Department of Bank Management,
Ethiraj College for Women (Autonomous), Chennai 600 008.

3.1 Multiple Regression Analysis


Model Summary
Model

R Square

.844a

.712

Adjusted R Square Std. Error of the Estimate


.680

.18205

Predictors: (Constant), MONTHLYINCOME, HIWP, QUAL, GENDER, EXP, AGE

Model summary results show that about 71.2 %( R square=0.712) of the variance
in the dependent variable(Attitude and behaviour of employees) are explained by High
involvement work practices, Gender , Age, qualification , experience and monthly
income of the employees.
ANOVAa
Model

Sum of Squares

Df

Mean Square

Regression

4.504

.751

Residual

1.823

55

.033

Total

6.327

61

F
22.648

Sig.
.000b

a. Dependent Variable: Attitude_and_Behaviour


b. Predictors: (Constant), MONTHLYINCOME, HIWP, QUAL, GENDER, EXP, AGE

The F-ratio in the ANOVA table tests whether the independent variables namely
high involvement work practices, monthly income, qualification, gender , experience and
age of employees are statistically significantly predict the dependent variable attitude
and behaviour of employees.
The table show that the p value is less than 0.05 (p=0.000), Hence, independent
variables statistically significantly predict the dependent variable.
Coefficientsa
Model

Unstandardized
Coefficients
B

Std. Error

1.565

.251

HIWP

.258

.048

Gender

-.032

Age

Standardized
Coefficients

Sig.

Beta
6.247

.000

.466

5.365

.000

.060

-.049

-.529

.599

-.037

.054

-.125

-.678

.500

Qual

.288

.034

.670

8.554

.000

Exp

-.012

.037

-.058

-.327

.745

Monthly Income

-.072

.036

-.284

-1.986

.052

(Constant)

Dependent Variable: Attitude_and_Behaviour

Source: Primary data


The Sig column from the above table exhibits that high involvement work
practices (p=0.000) and qualification of the employees (p=0.000) are statistically
significantly predicts the dependent variable attitude and behaviour of the employees.
Volume 03, Special Issue 03, Version I | 28th September 2016

Impact of High Involvement Work Practices on Employees Attitude and Behaviour of


Commercial Banks in Chennai

Qualification of the employees with Beta value of 0.670 and High involvement
work practices with Beta value of 0.466 are good predictors of employees attitude and
behaviour.
It could be interpreted that High involvement work practices of the bank plays
an indispensable role for a constructive attitude and behaviour of employees.
CONCLUSION
Designing and implementing a high-involvement practice is not an insignificant
task. Converting to a high-involvement work system necessitates that managers and
employees work together to virtually remake the entire banking process by designing
projects that leads to satisfaction. This can start with small experimental projects
almost anywhere in the bank, and handing responsibility for a part of an
interdependent system over to employees can naturally result in employee involvement
during the work flow process. Hence, high involvement is a rigorous, long-term process,
but the outcome can be a uniquely structured organization with highly engaged
employees and a strategic advantage over competitors.
A good high involvement work practice is one that involves and engages an
employee in such a way that banks productivity level is reached. The communication
system and fair remuneration system should be felt and valued in the commercial bank.
The high involvement work practices in banks should be implemented right from
the beginning as it helps in creating a congenial atmosphere. This leads to change in the
attitude and more involvement would be there from the employee point of view. The
factors of high involvement would allow the commercial banks to be the part of integral
system, which supports in functioning of banks. The quantity of variables used in each
area would allow the banks to differ in their level as the degree of involvement will
move from lower level to higher level.
High involvement work practices would function properly only when the banks
follows the comprehensive recruitment and selection procedure and trust among
employees. Training plays a vital role in improving the managers, which would enable
them to make decisions.
Managers should seek benefits that focus on change in perspective of employees.
It is the investment in human capital in the short-term that will lead to much greater
results for the banks in the future. Feedback and the information given to the
employees appear to improve the overall productivity of a commercial bank. Employees
should feel that they are secured and it is the culture of the commercial bank that gives
freedom to the employees to express their opinions and put forward their suggestions in
order to improve work process.
The current study indicates that commercial banks can take advantage of
developing work practices, which increases their commitment, and foster stronger
professional self- esteem among employees, and indirectly increase job satisfaction.
High-involvement work practices that provide employees with the authority and skills
to make and implement decisions effectively, information about how their actions affect
7

Volume 03, Special Issue 03, Version I | 28th September 2016

Emerging Innovative Strategies in Business Creating a Competitive Edge | Organized by PG


Department of Banking & Insurance Management and Department of Bank Management,
Ethiraj College for Women (Autonomous), Chennai 600 008.

banks unit performance, and appreciation for their earnest labours to advanceefficiency,
can result in an improved situation for employees and managers.
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Volume 03, Special Issue 03, Version I | 28th September 2016