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Workshop on Business Research

Factors influencing employees’


performance in organized retail sector

Submitted to:-
Dr. Purva Kansal
Submitted By:-
Bhavya Setia
Prateek Gera
Factors influencing employees’ performance in organized retail sector

Contents
Introduction................................................................................................................................................2
Evolution of Indian modern retail............................................................................................................................... 3
Challenges faced by Indian organized retail sector.............................................................................................. 5
Research problem.......................................................................................................................................7
Organization culture....................................................................................................................................8
Employee engagement.............................................................................................................................10
Role...........................................................................................................................................................11
Review of literature..................................................................................................................................13
Research Methodology.............................................................................................................................21
Hypothesis.......................................................................................................................................................................... 23
Data Analysis tools....................................................................................................................................24
Reliability testing............................................................................................................................................................. 24
Normality test................................................................................................................................................................... 27
Non –Parametric Test.................................................................................................................................................... 30
Correlation......................................................................................................................................................................... 30
Conclusion.................................................................................................................................................35
Limitations of the study............................................................................................................................35

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Factors influencing employees’ performance in organized retail sector

Introduction
The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the
entry of several new players. Total consumption expenditure is expected to reach nearly US$ 3,600
billion by 2020 from US$ 1,824 billion in 2017. It accounts for over 10 per cent of the country’s Gross
Domestic Product (GDP) and around 8 per cent of the employment. India is the world’s fifth-largest
global destination in the retail space.

India’s retail market is expected to increase by 60 per cent to reach US$ 1.1 trillion by 2020, on the back
of factors like rising incomes and lifestyle changes by middle class and increased digital connectivity.
While the overall retail market is expected to grow at 12 per cent per annum, modern trade would expand
twice as fast at 20 per cent per annum and traditional trade at 10 per cent. In FY17, organized retail
market contributed 7 per cent of the total sector and unorganized retail market contributed the rest 93 per
cent of the sector.

Over the last two decades, the size, scope and complexity of retailing has undergone considerable change.
The retail industry can broadly be classified into two categories: Organized and Unorganized.

Organized Retail is characterized by high investment requirements, large premises, trained staff where
retailers are licensed and are registered to pay taxes to the government.

Unorganized: India is known as nation of shopkeepers where vast majority of the retail stores are small
“father and son” outlets. Traditionally it is a family’s livelihood, with their shop in the front and house at
the back, while they run the retail business.

The Indian retail industry is the fifth largest in the world (Cygnus Business Consulting and Research Pvt.
Ltd., 2010), and has been ranked fourth attractive nation for retail investment by The 2011 Global Retail

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Factors influencing employees’ performance in organized retail sector

Development Index (Ben-Shabat, Moriarty, & Neary, 2011). Also, Indian consumer is the most confident
consumer in the world (The Nielsen Company, 2011).

Evolution of Indian modern retail

The word 'Retail' has been derived from the French word 'retailer' which means 'to cut a piece off' or 'to
break bulk'. Retailing can be defined as procurement of varied products in large quantities from various
sources/manufacturers and their sale in small lots, for direct consumption to the purchaser. Retailing is
one of the biggest sectors in India and has witnessed multi fold growth post liberalization of the Indian
Economy. The evolution of retail trade in India can be traced to the times when majority of trade was
routed through formats such as Haats, Mandis and Melas. Mostly organized on a periodical basis and
limited to a particular locality/village, such formats gained prominence. Almost everything from
vegetables, household necessities to cattle’s were bought and sold, either through monetary means or the
barter system. The emergence of organized retail in India dates back to the prehouses, mostly textile
majors, ventured into the retail arena through company-owned or franchisee outlets. As such the on-going
journey of organized retail in India can be broadly classified into four main phases (Cushman &
Wakefield, 2010)

i. Initiation (Pre 1990s)


This involved migration of people from villages to urban areas and setting up of small stores that
had essential commodities.
ii. Conceptualization (1990-2005)
With liberalization and opening up of Indian economy during the early 1990s, many corporates
and first generation entrepreneurs entered retail business and investments by international retail
firms increased in India.
iii. Expansion (2005-2010)
This period was marked by the growing share of organized retail in the total Indian retail sales pie
with substantial investments by large Indian corporates.
iv. Consolidation (2010 onwards)
With intense competition in the urban market, retailer started to setup shops in the smaller cities
and rural areas. E-commerce emerged as one of the major segments

Indian organized retail market

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Factors influencing employees’ performance in organized retail sector

1. Demographic advantage - The growing Indian population has also led to increase in the ‘earning
population’ (age group 15-60) of the country. The proportion of Indian populace in the age group of
15-64 years increased from 55.4% in 1991 to 66.2% in 2016. Considering the huge size of the Indian
population, the lower median age implies a higher number of working people thereby clearly outlining
the immense earning as well as spending potential of the Indian populace
2. Rapid urbanization - A majority of India still lives in ‘villages’. This statement no doubt holds
true but the figures suggest that there has been a paradigm shift of the Indian populace in terms of
rural–urban divide. The aspirations of higher income, higher standard of living etc. has drawn
more and more people from villages to settle in towns and cities. - This transition from rural to
urban areas has led to an increase in the demand for goods (owing to higher income and ever-
expanding needs). The retailers, especially in the organised segment are therefore targeting the
‘middle class’ populace by ensuring the availability of varied products at various price ranges to
match the needs of a ‘common man’.
3. Rising income levels & growing per capita expenditure - In the last decade, Indian economy
has progressed rapidly. Correspondingly, India’s per capita GDP has gone up from Rs 71,607 in
FY12 to Rs. 117,406 in FY17 at a CAGR of 10.4% fueling a consumption boom in the country.
The growth in country’s per capita GDP in turn has increased the disposable income of the
populace ultimately driving the country’s consumption.
4. Growing spread of plastic money & easy availability of credit - The growing use of ‘plastic
money’ i.e. credit and debit cards has resulted in an increased spending amongst the consumers
thereby fueling the demand in the retail sector.

Indian retail formats


The Indian retail landscape today is still characterized by owner operated local shops (neighbourhood
kiranas) and by local street markets. According to the Investment Commission of India (ICI), there are
over 15 million such outlets exist all over the country (Knight Frank, 2010). The vast majority of these
shops have sales area of approximately 500 sq. ft. and below. This has led to the strange dichotomy that
Indian retail space per capita is the lowest in the world, while its retail density is the highest in the world.
While traditional formats and modern formats coexist in India, the former dominate the market even after
the presence of organized retail since two decades. The traditional formats have emerged largely due to
the absence of alternative employment and typically require employees with very low skills. These
formats can, and do, serve to absorb agricultural labour. There are four main traditional formats in India
(McKinsey Global Institute, 2003):

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Rural Counter Stores


Rural counter stores (kirana) are multi-purpose stores and sell items of essential needs, both food
and non-food. These stores are often located in rural homes and seve to supplement the family’s
income from agriculture.
Kiosks
These small, pavement stalls stock a limited range of food and beverage items. Kiosks are
convenient for impulse or emergency purchases, and are located in busy commercial and market
areas.
Street Markets
Held at fixed centres in urban and rural areas on a daily or weekly basis, street markets comprise
multiple stalls (often more than 200) selling a wide range of food and non-food products. These
markets compete on both variety and price, and also sell counterfeit goods and smuggled items.
Street Vendors
These are mobile retailers, providing perishable food items ( milk, vegetable,eggs and fruit} at
the customer’s doorsteps . While their prices are higher than alternative retail channels, they
compete on convenience

ORGANIZED SECTOR

Hyper marts/supermarkets: large self-servicing outlets offering products from a variety of


categories.
Departmental stores: are general retail merchandisers offering quality products and services.
Convenience stores: are located in residential areas with slightly higher prices goods due to the
convenience offered.
Shopping malls: the biggest form of retail in India, malls offers customers a mix of all types
of products and services including entertainment and food under a single roof.
E-trailers: are retailers providing online buying and selling of products and services.
Category killers: small specialty stores that offer a variety of categories. They are known as
category killers as they focus on specific categories, such as electronics and sporting goods. This
is also known as Multi Brand Outlets or MBO's.
Specialty stores: are retail chains dealing in specific categories and provide deep assortment.
Mumbai's Crossword Book Store and RPG's Music World are a couple of example

Challenges faced by Indian organized retail sector

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Though organized retail sector is emerging very fast but it still constitutes 8% to the retail industry. There
are various factors responsible for it. Following are few of them

 Lack of Technology
 Lack of Infrastructure and Logistics
 Scarcity of Skilled Workforce
 Frauds in Retail
 Inefficient Supply Chain Management
 Price War
 Cultural Diversity
 Complexity in Tax Structure
 Escalating land and rental prices
 Competition from Unorganized Retail
 Online selling companies.
 Power Supply Problem in India
 High Cost of Operation Retail outlets
 Government Opposition to FDI
 Understanding customer
 Ever-increasing customer demand

Considering the scope of our study we will focus on the HR challenges posed by the organized retail
sector in India. Following are the few HR challenges that an organized retail sector faces : -

 Lack of skilled manpower: The organized retailing is a massive man power oriented industry that
recruits a large pool of employees. However, there is a huge scarcity of skilled retail professionals. This
can be attributed to the fact that retail has never been considered as a prominent profession in India as
there were very few retail professional courses still few years back.

 Stress in Working Culture: The working pattern of retail industry requires employee to put
in long hours of work which generally cause fatigue and result in lower motivation among employees.
Besides this, in part-time and casual jobs there is less job security, flexible shifts, unlimited working
hours, lower salary and benefits & poor working conditions resulting into stress and working problems.

 Lack of Formal Education in Retail Management : There is requirement of qualified


and talented manpower to look after day to day operations and cater to the wide spectrum of customer
desires.

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As there is lack of formal vocational institutes where students can be trained, most of retailers in India
depend on inhouse training or fulfilling their training needs with small institutes.

 Threat of Poaching: Employee poaching is also very high both in organized as well as
unorganized retail industry. Skilled manpower is scarce in this industry and as such attracting the
employees of competitors by offering them better salaries is a rather easy option.

 High Turnover
 Complex Human Resource Environment
 Women in Retailing
 Requirement for HR Practices
 Recruitment Challenge & Employing Strategies
 Ethnic Diversity Management
 Healthy Management Practices
 Career Advancement

Research problem
The retail sector is one of the fastest growing sectors in India. It is further divided into to two parts:- 1)
Organized retail sector and 2) Unorganized Retail Sector. Indian economy is one of the fastest growing
economies in the world but the organized retail sector constitutes only 8% of the total retail market in
spite of its huge potential. There are many reasons which result in such circumstances but dwelling deeper
we found that supply, taxation, utilities and human resources are critical areas. Considering the scope of
study we tried to study the HR issues that were impacting employees performance in retail sector. We
have further the limited the study by considering organizational culture, employee engagement and role.

Objectives

1. To study the impact of organizational culture on task performance.


2. To study the impact of organizational culture on contextual work performance.
3. To study the impact of organizational culture on counter productive work behavior.
4. To study the impact of role on task performance of an employee.
5. To study the impact of role on contextual work performance.
6. To study the impact of role on counter productive work behavior.
7. To study the impact of employee engagement on task performance of an employee.
8. To study the impact of employee engagement on contextual work performance of an employee.

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9. To study the impact of employee engagement of counter productive work behavior of


an employee.

Organization culture
Organizational culture includes an organization’s expectations, experiences, philosophy, as well as the
values that guide member behavior, and is expressed in member self-image, inner workings, interactions
with the outside world, and future expectations. Culture is based on shared attitudes, beliefs, customs, and
written and unwritten rules that have been developed over time and are considered valid (The Business
Dictionary).

The various terms used in the context of organizational culture are - values, ethics, beliefs, ethos, climate,
culture and so on. Ethics refers to normative aspects to what is socially desirable. Values, beliefs,
attitudes and norms are interrelated. Ethos can be defined as the underline spirit of character of an entity
or group and is made up of its beliefs, customs or practices. At the base of Ethos are core values. Ethos is
primarily concerned with values and is the fundamental character or spirit of the organization. It is
characterized by openness, confrontation, trust, authenticity, pro action, autonomy, collaboration, and
experimentation. Culture is learned rather than inherited. Ed Schein suggests that there are two ways in
which this learning takes place. First, the trauma model, in which members of the organization learns to
cope with some threat by the erection of defense mechanisms. Second, the "positive reinforcement"
model, where things which seem to work become embedded and entrenched. Learning takes place as
people adapt to and cope with the external pressures, and as they develop successful approaches and
mechanisms to handle the technologies of their organization.

There are five secondary mechanisms by which organizational culture develops. They are:

1. The organization’s design and structure.


2. Organizational systems and procedures.
3. Design of physical space, facades and buildings.
4. Stories, legends, myths, and parables about important events and people.
5. Formal statements of organizational philosophy, creeds and charters

Types of organizational cultures

Handy (1985) has analyzed the different types of organizational culture and offers a four-fold typology:

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• The power culture

In this, the organization stresses the role of individuals rather than committees. Individuals are power-
oriented and politically aware. Control is exercised at the center and is characterized by informal webs of
influence rather than formal procedures. It is not characterized by bureaucracy.

• The role culture

Here the stress is upon formal rules and roles and authority is vested in these roles. It is characterized by
formal procedures and offers the individual security, stability and predictability. It is, therefore,
characteristic of bureaucracy.

• The task culture

This is job-oriented and is concerned with getting the job done. It is concerned with utilizing resources to
meet the organization’s objectives and is characterized by the requirement of efficiency. The culture
adapts itself to change and is driven by the need to provide goods and services for the customer.

• The person culture

The individual is at the heart of this organization and this culture, according to Handy, is not often found.
The organization serves the individual rather than the other way round. Control mechanisms or
hierarchies are virtually impossible and influence the shared.

One way of classifying organizational culture can be autocratic or feudal, bureaucratic, technocratic, and
entrepreneurial or democratic: Traditionally bureaucracy has been described as a role culture, but there is
no reason to suppose that the different cultures cannot exist within the same organization particularly if
the organization is as large and diverse as a government department or a local authority.. Each of the
different cultures may express the roles that organizations perform. Problems arise where there is a clash
of cultures. All organizations exist within some wider context and we would expect an organization’s
culture to reflect this. Thus it may be unrealistic to expect a democratically run workplace when the
prevailing political and social ethos is authoritarian. Organizations are social systems that have shared
understandings, norms and values and have a common language. The history of the organization, its past
values and beliefs also influence the present culture of the organization. Each of the different cultures
may express the roles that organizations perform.

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Employee engagement
Today, it is a rare to find articles in the popular HR or management press without some mention of
engagement and how to enable it. Yet, to date there is no one clear and agreed definition of engagement
and many researchers and practitioners describe the term in very different ways (Soldati, 2007).

Nevertheless, there is an increasing awareness that employee engagement is pivotal to successful


commercial and business performance, where engaged employees are the ‘backbone of good working
environments where people are industrious, ethical and accountable’ (Levinson, 2007a; Cleland et al,
2008).

Categories of Employee Engagement

According to the Gallup the Consulting organization there are there are different types of people:-

Engaged--"Engaged" employees are builders. They want to know the desired expectations for their role
so they can meet and exceed them. They're naturally curious about their company and their place in it.
They perform at consistently high levels. They want to use their talents and strengths at work every day.
They work with passion and they drive innovation and move their organization forward

Not Engaged---Not-engaged employees tend to concentrate on tasks rather than the goals and outcomes
they are expected to accomplish. They want to be told what to do just so they can do it and say they have
finished. They focus on accomplishing tasks vs. achieving an outcome. Employees who are not-engaged
tend to feel their contributions are being overlooked, and their potential is not being tapped. They often
feel this way because they don't have productive relationships with their managers or with their co
workers.

Actively Disengaged--The "actively disengaged" employees are the "cave dwellers." They're
"Consistently against Virtually Everything." They're not just unhappy at work; they're busy acting out
their unhappiness. They sow seeds of negativity at every opportunity. Every day, actively disengaged
workers undermine what their engaged co workers accomplish. As workers increasingly rely on each
other to generate products and services, the problems and tensions that are fostered by actively
disengaged workers can cause great damage to an organization's functioning.

Importance of Engagement

An organization’s capacity to manage employee engagement is closely related to its ability to achieve
high performance levels and superior business results. Some of the advantages of Engaged employees are

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• Engaged employees will stay with the company, be an advocate of the company and its products and
services, and contribute to bottom line business success.

• They will normally perform better and are more motivated.

• There is a significant link between employee engagement and profitability.

• They form an emotional connection with the company. This impacts their attitude towards the
company’s clients, and thereby improves customer satisfaction and service levels

• It builds passion, commitment and alignment with the organization’s strategies and goals

• Increases employees’ trust in the organization

• Creates a sense of loyalty in a competitive environment

• Provides a high-energy working environment

• Boosts business growth

• Makes the employees effective brand ambassadors for the company

Role
Role is a set of expected behavior patterns attributed to someone occupying a given position in the social
unit. Shakespeare said – “all the world is a stage and all the men and women merely players”. Using the
same metaphor, all group members are actors, each playing a role. Our understanding of the role behavior
would be dramatically simplified if the individual could choose one role and play it regularly and
consistently. As we’ll see, one of the tasks in understanding behavior is grasping the role a person is
currently playing.

Role perception

An individual’s view on how they are supposed to act in a given situation is role perception. The stimuli
for perception of the role are achieved from the environment. The primary reason for apprenticeship
programs, which exists in many trades and professions, is to allow a beginner to watch an expert so that
they can learn to act as they should.

Role expectation

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Role expectation is defined as how others believe a person should act in a given situation. In the work
place, role perception is looked through the perspective of psychological contract. Psychological contract
is an unwritten agreement that sets out what management expects from an employee and vice versa.
Management is expected to treat employees justly, provide acceptable working conditions, clearly
communicate what is a fair day’s work, and give feedback on how well an employee is doing. Employees
are expected to respond by demonstrating a good attitude, following directions, and showing loyalty to
the organization.

A study related to psychological contracts violations found that its violation were related to greater
intensions to quit the job, while another study related to another different industries found they were
associated with lower levels of productivity, higher level of thefts and greater level of withdrawal.
However, there is evidence that perception of psychological contract vary across cultures. Example – In
France, where people are individualist and power is more asymmetric, contracts are perceived as self –
interested yet favoring the more powerful party. In Canada, where people are individualist but power is
more symmetric, contracts are perceived as self – interested yet focused on balanced reciprocity. In
China, where people are collectivist and power is more asymmetric, contracts are perceived as going
beyond the work context into employee’s lives.

Role conflict

A situation in which an individual is confronted by divergent role expectations is known as role conflict.
At the extreme, two or more role expectations are mutually contradictory. ‘Most employees are
simultaneously in occupations, work groups, divisions and demographic groups, and these identities can
come into conflict when the expectations of one clash with the expectation of another. During mergers
and acquisitions, employees can be torn between their identities as members of their original organization
and of the new parent company. Organizations structured around multinational operations also have been
shown to lead to dual identification, with employees distinguishing between the local division and the
international organization.

Zimbardo Prison experiment

One of the most illuminating role and identity experiments was done a number of years ago by Stanford
University psychologist Philip Zimbardo and his associates. They created a “prison” in the basement of
the Stanford psychology building, hired at $15 a day two dozen emotionally stable, physically healthy,
law – abiding students who scored “normal average” on extensive personality tests, randomly assigned
them the role of either “guard” or “prisoner”, and established some basic rules.

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It was concluded that the participants had learned stereotyped conceptions of guard and prisoner roles
from the mass media and their own personal experiences in power nad powerlessness relationship gained.
This background allowed them to easily and rapidly assume roles very different from their inherent
personalities and, with no prior personality pathology or training in their parts they were playing, execute
extreme forms of behavior consistent with roles.

A follow – up reality television show conducted by the BBC that used a lower - fidelity simulated prison
setting provides some insights into these results. The results here differed to a huge extent. The results
suggested that abuse of roles can be limited when people are made conscious of their behavior.

Review of literature

Organization culture and its impact on employee performance and


job satisfaction

It is important to know about the organization culture so that managers can know about the stokes,
organization culture can be described as a thought or a scheme in a field of management and
organizational studies which depict and describe the psychology, behaviour, experiences, believes and
values of an organization. Organizational culture not only affects outcomes like productivity, self-
confidence, ethics, satisfaction, performance and commitment but also help management to device
certain policies and strategies that can drive the employee to contribute themselves and lead to
organizational performance. It is important to build the culture and it is done in 3 ways. Firstly, founders
hire the best fit for organization. Secondly, they socialize and indoctrinate these selected employees to
their way of thinking and feeling. Thirdly, the founders now act as role model to their employees so that
they can have a role perception and work accordingly and further impart these values to the upcoming
employees. Further the culture is transmitted in the many forms most important being languages, rituals,
symbols and stories. Organization culture is connected to organization practice and therefore employee
performance is conditional on organizational culture. A strong organization culture allows individual to
work to work effectively and efficiently and thus increasing employees’ performance thus making an
employee work toward that specific direction of organization goal. Use the "Insert Citation" button to add
citations to this document.

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Studying Organizational Commitment with the OCQ in the Korean Retail


Context: Its Dimensionality & The relationship between organization
identification and organization culture and Relationships with
Satisfaction and Work Outcomes
A two-stage approach was adopted to study organizational commitment among Korean retail employees. First, both
exploratory and confirmatory factor analyses were conducted to examine the dimensionality and psychometric
properties of organizational commitment as measured by the Organizational Commitment Questionnaire (OCQ). Two
dimensions—affective and continuance—were identified. On that basis, this study empirically tested a model on the
relationships among two facets of commitment, three facets of job satisfaction (pay, co-worker, and supervisor), and
two work outcomes (effort and propensity-to-leave). The model testing results showed that in the Korean retail
setting: (1) satisfaction with pay and satisfaction with supervisor significantly increase both affective commitment and
continuance commitment; (2) satisfaction with co-workers positively influences affective commitment but has no
significant effect on continuance commitment; and (3) affective commitment increases job effort but decreases th
employees’ propensity to leave the firm, while continuance commitment reduces propensity to leave but does not
increase job effort.

Another aspect or a relatively similar one is known as organization commitment. Organizational


commitment refers to the relative strength of employee’s organization with the values and goals of the
organization and loyalty to the organization. Organization identification occurs when an employee
chooses alternative that best promotes the interest of an organization. Individual organization relationship
is important in understanding the basis of identification in an organization. Individual who is inclined
toward the organization will show persuasive efforts in doing the betterment of an organization. The
process of identification starts from the organization itself. Organizations’ process of making individual
familiar with the values, goals and information determine the future inherent process of individual’s
decision making there by influencing its association with the organization. There are two dimensions of
organization commitment. Attitudinal commitment and Calculative commitment. Attitudinal commitment
refers to the commitment that how an individual associate to the organization. Idea of calculative
commitment refers to the fact that individual retains to the organization due to cost, rewards and
incentives interest.

The impact of employee engagement on performance


Three factors that determine the success of an organization includes high rate of customer service, high
level of customer service, effective communications, and increased rates of employee engagement. Also
strong executive leadership also has an influential impact on the performance rates. Three factors that
determine the level of engagement includes- clear understanding of the job attribute i.e., how job

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attributes to strategy, senior leaders communicating them the necessary details and thirdly business goals
communicated company wide and understood.

Work Place Motivators & Employees' Satisfaction: A Study of Retail Sector


in India
Success of retail firms is dependent on a motivated workforce; hence these firms are trying to use different job
motivators to keep employees motivated and satisfied. This empirical study examines the job motivators which Indian
retail firms are using for front line sales personnel and their effectiveness in terms of employees ' satisfaction. Data
were collected from 114 sales employees belonging to 10 retail stores in the National Capital Region. The most
important motivators used by retail stores were: working conditions, skill development, recognition, role clarity, career
growth and support from management. The results of regression analysis indicated compensation, working
conditions, and support from management as the most significant predictors of employees ' satisfaction.

Retail sector requires a lot of effort and with increasing workload it is becoming difficult to hold back
employees in order to prevent employee turnover and promote employee engagement other factors are
required. Two among them being motivation and leadership qualities. Though there are other factors that
would impact organization culture and thereby influences the performance but in our research we would
focus on employee engagement, motivation and leadership. Motivation is important because of its
significance as a determinant of performance and its intangible nature. Organizations might perceive
motivation as a strategic issue since it impacts directly on organizational cost, productivity and business
performance.

The role of ethical leadership on employee performance in Guilan


University of medical sciences
The aim of this research is to investigate the role of ethical leadership on employee's performance in Rasht University
of Medical Sciences. The research method in this study is descriptive - correlation and based on the objective, it is an
applied research. The statistical population of this research consisted of all employees of the University of Medical
Sciences in the city of Rasht, which the number of sample size was determined 337 employees by the available non
probability sampling method. In order to collect data standard questionnaire was used, and finally 349 questionnaires
were analyzed. In the inferential statistics, the Kolmogorov- Smirnov test was used to investigate the normality of data
distribution. With regard to the normality of data distribution, in order to investigate the hypotheses, the parametric
tests of Pearson correlation and hierarchical regression in SPSS software were used. In order to test the fitness of
research model and investigating all relationships, the structural equation modeling in LISREL software was used.
The research results showed that the role of ethical leadership in the performance of employees is indirectly
significant and all hypotheses were confirmed.

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Staff performance is one of the critical factors affecting the performance of an organization. The rate at
which the staff is performing is in direct relationship with the organization goals and can thus hamper the
growth of an organization. In line with this, if the staff performance is found to be faulty there is the
possibility for the organization to be challenged and endangered (Mousakhani, Hamidi, & Najafi, 2010).
Three general principles responsibility, accountability and performance directly influence both the
individual and organizational performance. The high organizational costs and securing such funding from
the public sources which are going narrower and more limited on a daily basis has made the managers to
focus on the organizational objectives actualization, to pay more attention to the constant improvement of
the service and products qualities offered by the organization. Leadership thus plays an important role in
job performance of an employee. When it comes to the output we know that we can either talk in terms of
employee performance or the organization performance. Output obtained when an organization hires an
employee and check the accomplishments or goals achieved is known as Job performance. Job
performance is further divided into two parts – Task performance and contextual performance.
Leadership has a strong and influential impact on the job performance but this is the element that has not
been worked upon in an organized and integrated manner. The first independent theory on leadership was
given y Brown et al (2005)(Dion, 2012).

To study the impact of employee engagement on employee productivity


and motivational level of employee in retail sector
With organization going global and tapping new markets, it has become essential to give the organization its
competitive edge by nurturing and retaining the top talent that is human resources. Retaining the highly skilled
workforce has become a key concern for many organizations in good as well as bad times provided the importance of
these human resources to company’s success and survival. Thus employee engagement determines the association
of person with the organization. This exploratory research, study impact of employee engagement on employee
productivity and motivational level of employee in Retail sector. This sector providing more opportunities for job
enhancement but retaining employee are one of the most challenging issues for the retail industry, because of high
turnover and low performance. Understanding what drives employee engagement illuminates the path leaders can
take to enhance employee retention in their organizations. The findings and recommendations of this study are for
retail sector in general. It would help them to perform better and ready to take more responsibility, energetic and
inspiring.

With the increase in competition in the markets there is a need for consistent efforts to innovate and
improve and for that human resources are a really important factor. Employee engagement means how
much an employee is passionate about his work and feels good about his company. A passionate
employee can help in the performance of the organization. The article shows study of employee

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Factors influencing employees’ performance in organized retail sector

engagement across retail sector and how it affects employee productivity and motivation level. It studies
2 factors motivation and performance & commitment. The results show that these drivers affect the
performance of employee. There are many factors but the article studies only these.

Impact of Organizational Culture on Employee Performance


Aim of the study: The relationship between organizational culture and performance has been study and a clear link
between them has been identified by certain researcher’s research. The main aim of research article is to identify and
measure strong relationship between performance and organizational culture. Methodology: Literature review is
adopted as methodology to assess the culture of an organization impacts upon process, employees and systems.
Findings: Certain dimensions of culture have been identified so far and research shows that value and norms of an
organization were based upon employee relationship. The goal of an organization is to increase level of performance
by designing strategies. The performance management system has been measured by balance scorecard and by
understanding nature and ability of system culture of an organization have been identified. Recommendation: The
strong culture of an organization based upon managers and leaders help in improving level of performance.
Managers relate organization performance and culture to each other as they help in providing competitive advantage
to firms.

There are different cultures in different organizations which lead to different kinds of results. In this
article a study was conducted on IBM employees from over 50 countries to analyze organizational culture
on the basis of various dimensions. The results found out that cultural factors and individual personality
impact the organizational performance. It also shows that there is relationship between different sets of
norms and values. It has often been said that organization culture impacts the organizational performance.
This article says that there is a strong association between management practices, performance and
culture management. Organizational culture can lead to increased productivity and improved
performance.

Employee performance in hospitality

The relevance of organizational culture on job satisfaction and performance particularly within the hospitality sector
cannot be over-emphasized. The culture of an organization goes a long way in distinguishing it from other
organizations because it shows its ability to either be successful or to fail. To however achieve excellence and high-
level performance, it is important to note that for effective and efficient operation, an organization would need a formal
approach of communication as well as for making decisions and completing the tasks to match the needs of the
organization. The managerial implications drawn from the study is that organizations should take advantage of their
culture and inculcate values that will enhance performance.

In this article, a study of relationship between organizational culture and job satisfaction in hospitality is
shown. Data was collected on the effect of organizational culture and job satisfaction on performance of
selected hotels in Nigeria. The study was conducted at selected 6 top performing hotels. A descriptive

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Factors influencing employees’ performance in organized retail sector

research design was adopted to obtain opinion of managers and supervisors. Survey method was
considered appropriate. The outcome of the study revealed that organizational culture has significant and
positive impact on job satisfaction and performance. It also shows hospitality industry has to develop
internal structure as complex as the environment in which they operate.

The understanding of employee engagement practices at big bazaar


in organised retail sector through employee engagement index (eei)
Employee engagement, also called work engagement or worker engagement, is a business management concept.
An "engaged employee" is one who is fully involved in, and enthusiastic about, his or her work, and thus will act in a
way that furthers their organizations interests. According to Scarlett Surveys, "Employee Engagement is a
measureable degree of an employee's positive or negative emotional attachment to their job, colleagues and
organization which profoundly influences their willingness to learn & perform at work". Thus engagement is

distinctively different from satisfaction, motivation, culture, climate and opinion and very difficult to measure.

Retail sector in India is fast growing with both the increase in economic development and the
consumption. With increasing demand this sector is also experiencing high demand of the skilled
employees in the sector. For such a growing demand, retaining talents becomes a challenge for the
industry. Employee engagement includes all the aspects of behavioural, attitudinal, cognitive and
emotional attributes and tries to create a bond between individual and the employee where organization
tries to retain and engage the employee.

The retail format of big bazaar includes rural, aadhar and home town retail chain, sportswear retailers,
Ezone home-improvement chain, depot and music chain. This retail store is a subsidiary of Future group,
Pantaloons Retail India Ltd. Big Bazaar
Group offers more than 136 stores all over the country. Every Big Bazaar outlet is owned by the
company, and not franchised out to anyone to ensure quick changes to its entire retail chain. Big bazaar
knows that basics of success lies in the fact that how to satisfy its human resources and works on it from
the very process of hiring an employee. Basic HRM activities are done with utmost regulation, like a 13
day induction and training program, compensation; performance appraisals regulated work- hour shift and
other process. This well organized shift is visible in its employee turnover percentage. Big bazaar has an
employment turnover of just 4%. And in order to improve employee retention they aim to take care of
their employees with respect. Also few other initiatives are in process that they claim aims to build a
friendly and a cohesive organization culture.
Basic conclusion that can be derived from the review of literature is that there are many factors affecting
the organizations’ performance. But in our research we aim to study the impact of organization culture on

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Factors influencing employees’ performance in organized retail sector

organization performance. And to determine this we study the various constituents of the organization
culture mainly involving employee engagement (main focus), leadership and motivation. Though variety
of other factors also affects the performance as shown in the conceptual model but they are beyond the
scope of our research.

Role conflict and ambiguity in complex organizations

Role conflict occurs when there are incompatible demands placed upon an employee . Role conflict can
be reason of discomfort , anxiety , dissatisfaction etc. It can adversely affect the performance of an
employee. Incompatible demands increase frustration as well as decrease confidence of employee as he is
not able to fulfill them . Conflict between work and family roles is generally observed. Employees whose
work provided the skills, behaviors and a positive mood which will positively influenced the family were
also more satisfied with their job and were more likely to stay in the job and were more likely to exhibit
job citizenship behavior and organizational commitment. Employees whose involvement in family
resulted in positive mood, support and sense of accomplishment that helped them to cope better , work
more efficiently , feel more confident and positive and be more energised for one’s role at work were also
more satisfied with their job and had higher affective commitment to the job.(1)

The evidence indicates that multiple lines of authority are accompanied by role conflict and
dissatisfaction for the members and loss of organizational efficiency and effectiveness. However, these
dysfunctions appear to be necessary concomitants and costs of providing professional control over the
technical aspects of the organization’s activities. Role conflict is defined in terms of the dimensions of
congruency-in congruency or compatibility-incompatibility in the requirements of the role, where
congruency or compatibility is judged relative to a set of standards or conditions which impinge upon role
performance. Definitions of these role conflict components, as used in the present scale are given below.
Incompatibility or in congruency may result in various kinds of conflict:
1. Conflict between the focal person's internal standards or values and the defined role behavior. This is a
person-role conflict or intra role conflict of the focal person as he fills a single position or role.
2. Conflict between the time, resources, or capabilities of the focal person and defined role behavior.
Where one other person in a related role generates the incompatibility, this may be viewed as intra sender
conflict. It may also be organizationally generated. From the point of view of the focal person, there is
intra role conflict or person-role conflict, e.g., insufficient capability.

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Factors influencing employees’ performance in organized retail sector

3. Conflict between several roles for the same person which require different or incompatible behaviors,
or changes in behavior as a function of the situation i.e. role overload. This is inter role conflict for the
focal person as he fills more than one position in the role system.

4. Conflicting expectations and organizational demands in the form of incompatible policies, conflicting
requests from others, and incompatible standards of evaluation . These role conflict items suggest
sanctions attached to role behavior and are therefore related to the role ambiguity components which
involve the prediction of the outcome of one's behavior. Also, the items may reflect more than the
category cited.

The demographic category and the organizational category explain job satisfaction and intention to leave
to a statistically significant degree. However, the workplace variables (role conflict, role ambiguity, social
support and opportunities for professional development) have much stronger relationships with the
criterion variables. These findings are consistent with other studies that demonstrate that the
organizational conditions play an important role in predicting job satisfaction and intention to leave.
These findings suggest the social workers are at great risk because of the unsatisfying working conditions
which characterize the mental health care environment. Among the significant correlates of reduced job
satisfaction were the following: Individuals with higher levels of education, longer work experience, large
caseload and scarce income and opportunities for professional development. The picture of the “happier
worker” is consistent with those that perform administrative and managerial tasks have better income and
greater opportunities for professional development. Findings highlight the significant role of social
support in the workplace. Supportive work environment provides workers with an appropriate atmosphere
to conduct high quality services, to derive gratification from their job and to be committed to their
profession, even when the total mental health care environment is problematic. Mental health providers in
this sample have fairly high social support (only few reported low levels of social support). This finding
provides hope that workers will be able to survive the challenges and difficulties that they need to face.

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Factors influencing employees’ performance in organized retail sector

Conceptual model

Independent variable Dependent variable


Organizational culture Employee performance
Employee engagement Dimensions of dependent variable
Role Task
contextual
Counter productive work behaviour

Research Methodology
Research design

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Factors influencing employees’ performance in organized retail sector

There has been extensive research conducted on our variables but there is no study conducted on the
impact of our independent variables on the dimensions of our dependent variables. Hence, our research is
a descriptive research.

Descriptive research is defined as a research method that describes the characteristics of the population or
phenomenon that is being studied. This methodology focuses more on the “what” of the research subject
rather than the “why” of the research subject. In other words, descriptive research primarily focuses on
describing the nature of a demographic segment, without focusing on “why” a certain phenomenon
occurs. In other words, it “describes” the subject of the research, without covering “why” it happens..

Sampling technique

There are many organized retail stores in and around Chandigarh, with the help of random sampling we
have narrowed down the number of retail stores and chosen big bazaar. Initially the data collection was
intended to follow systematic sampling but due to privacy norms followed by the big bazaar organization,
non-probability method of data collection was used. We used snow ball sampling to collect data.
Preferred

Sampling Scale

The responses will be obtained on a 5-point scale (1 for seldom and 5 for always), for measurement of
employee performance we will be relying on Koopmans 2014 scale. Employee performance has 3 sub
parts, which include task performance, contextual performance and counterproductive work behavior.

Individual work performance is a multidimensional construct. It consists of task performance, contextual


performance and counter productive work behavior. The individual performance questionnaire was based
on four-dimensional conceptual framework. Factor analysis showed that a three dimensional framework
was generalizable across occupational sectors. There was a argument for fourth dimension, namely,
adaptive performance as a separate dimension. Adaptive performance did not appear to be a separate
dimension, but rather an aspect of contextual performance. Whereas contextual behaviors can be thought
of as proactive, and adaptive behaviors as reactive, both can be considered supporting the organizational,
social and psychological environment in which the technical core functions. They are both extra-role
behaviors that do not directly contribute to the central job tasks, but do make it easier for employees to

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Factors influencing employees’ performance in organized retail sector

perform their central job tasks. In this view, it is not strange that the contextual and adaptive performance
dimensions are one and the same.

Task performance

It can be defined as the proficiency with which individuals perform the core substantive or technical tasks
central to his or her job. Behaviors used to describe task performance often include work quantity and
quality, job skills, and job knowledge.

Contextual

It can be defined as behaviors that support the organizational, social and psychological environment in
which the technical core must function. Behaviors used to describe contextual performance include for
example demonstrating effort, facilitating peer and team performance, cooperating, and communicating.

Counter productive work behavior

Counterproductive work behavior can be defined as behavior that harms the wellbeing of the
organization. It includes behaviors such as absenteeism, off-task behavior, theft, and substance abuse.

Hypothesis

H0 There is no impact of organizational culture on task performance

H1 There is significant impact of organizational culture on task performance of an employee

H0 There is no impact of organizational culture on contextual work performance of an employee.

H2 There is a significant impact of organizational culture on contextual work performance.

H0 There is no impact of organizational culture on counter productive work behavior.

H3 There is a significant impact of organizational culture on counter productive work behavior.

H0 There is no impact of role on task performance of an employee.

H4 There is a significant impact of role on task performance of an employee.

H0 There is no impact of role on contextual performance of an employee.

H5 There is a significant impact of role on contextual performance of an employee.

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Factors influencing employees’ performance in organized retail sector

H0 There is no impact of role on counter productive work behavior of an employee.

H6 There is a significant impact of role on counter productive work behavior of an employee.

H0 There is no impact of employee engagement on task performance of an employee.

H7 There is a significant impact of employee engagement on task performance of an employee.

H0 There is no impact of employee engagement on contextual performance of an employee.

H8 There is a significant impact of employee engagement on contextual performance of an employee.

H0 There is no impact of employee engagement on counter productive work behavior of an employee.

H9 There is a significant impact of employee engagement on counter productive work behavior of an


employee.

Data Analysis tools


Firstly, as the Data is collected from a standardized questionnaire which was developed a decade earlier,
so it is important to check its reliability with the help of following Reliability Test

 Cronbach’s Alpha

The data was collected on Non Probability Basis (snowball method), so in order to check the viability of
the Research for application of other tests, the following tests were applied:

 Shapiro-Wilk Test for Normality

And for the analysis of Data, following tests were utilized:

 Correlation, and
 Regression

Reliability testing

When we examine a construct in a study, we choose one of a number of possible ways to measure that
construct. These questionnaire items or interview questions are part of the measurement procedure. This
measurement procedure should provide an accurate representation of the construct it is measuring if it is
to be considered valid.

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Factors influencing employees’ performance in organized retail sector

Reliability Tests are usually conducted by calculating the Cronbach’s Alpha, as it’s the best measure to
evaluate the consistency of data. Though the scale used is standardized in nature, hence valid, but their
reliability should be checked as its applicability can be hindered because of time passage.

Reliability test for role

Reliability Statistics
Cronbach's
Alpha Based
on
Cronbach's Standardized
Alpha Items N of Items
.468 .576 4
Since the value of Cronbach’s alpha is below the standard value0.07, the scale here is not reliable.

Reliability test for culture

Reliability Statistics
Cronbach's
Alpha Based
on
Cronbach's Standardized
Alpha Items N of Items
.779 .785 11
Value is below the standard, so the scale is not reliable

Reliability test for employee engagement

Reliability Statistics
Cronbach's
Alpha Based
on
Cronbach's Standardized
Alpha Items N of Items
.587 .553 4

Value obtained of Cronbach’s alpha is below the standard, so this scale is also not reliable.

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Factors influencing employees’ performance in organized retail sector

Reliability test for employee performance


\
Task Performance

Reliability Statistics
Cronbach's
Alpha Based
on
Cronbach's Standardized
Alpha Items N of Items
.835 .833 7

Here the value obtained is above the standard, thus the scale is reliable.

Contextual Performance

Reliability Statistics
Cronbach's
Alpha Based
on
Cronbach's Standardized
Alpha Items N of Items
.800 .791 12

Value obtained is above the standard, hence the scale is reliable.

Counter productive work behavior

Reliability Statistics
Cronbach's
Alpha Based
on
Cronbach's Standardized
Alpha Items N of Items
.823 .825 8

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Factors influencing employees’ performance in organized retail sector

Value obtained is above the standard, hence the scale is reliable.

Normality test

The data normality testing is done on the data with the help of Shapiro-Wilk’s test for Normality and the
data is found to be not normal. The statistical test for Normality is shown as follows:

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Factors influencing employees’ performance in organized retail sector

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Factors influencing employees’ performance in organized retail sector

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Factors influencing employees’ performance in organized retail sector

Role = 0.001

Culture = 0.001

Employee engagement = .000

As all these values are below 0.05, the data obtained is not normal. Hence, we need to apply non
parametric tests.

Non –Parametric Test

Correlation

Correlation is a bivariate analysis that measures the strength of association between two
variables and the direction of the relationship. In terms of the strength of relationship, the value
of the correlation coefficient varies between +1 and -1. A value of ± 1 indicates a perfect degree
of association between the two variables. As the correlation coefficient value goes towards 0, the
relationship between the two variables will be weaker. The direction of the relationship is
indicated by the sign of the coefficient; a + sign indicates a positive relationship and a – sign
indicates a negative relationship. Usually, in statistics, we measure four types of correlations:
Pearson Correlation, Kendall rank correlation, Spearman correlation, and the Point-Biserial
correlation. The software below allows you to very easily conduct a correlation.

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Factors influencing employees’ performance in organized retail sector

Spearman’s Correlation – Non Parametric

Spearman rank correlation is a non-parametric test that is used to measure the degree of
association between two variables. The Spearman rank correlation test does not carry any
assumptions about the distribution of the data and is the appropriate correlation analysis when
the variables are measured on a scale that is at least ordinal.

Inter-Item Correlation Matrix


Employee Employee
Role Culture engagement Performance
Role 1.000 .364 .418 .313
Culture .364 1.000 .796 .811
Employee engagement .418 .796 1.000 .827
Employee Performance .313 .811 .827 1.000

Role and Employee Performance = 0.245 at Sig. Value of 0.025

Culture and Employee Performance = 0.830 at Sig. Value of 0.000

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Factors influencing employees’ performance in organized retail sector

Employee Engagement and Employee Performance = 0.836 at Sig. Value of 0.000

This shows that there is a significant relationship between role and employee performance

The results obtained from this correlation regression prove that our hypothesis, there is relation between
role, employee engagement and organizational culture on the performance of an employee in an
organization stands true. The relationship between role and employee performance is significant where as
for the remaining two variable, organizational culture and employee engagement, it is very significant.

Correlation with Sub Variables

Role with task performance = .381 at the significant value of .000

This proves our hypothesis that there is significant relationship between role and task performance stands
true.

Role with contextual performance = .277 at the significant value of 0.011

This proves our hypothesis that there is significant relationship between role and contextual performance
stands true.

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Factors influencing employees’ performance in organized retail sector

Role with counter productive work behavior = -.282 at the significant value of 0.009

This proves our hypothesis that there is significant relationship between role and counter productive work
behavior stands true. But here the significant relationship is in negative direction.

Culture with task performance = 0.863 at the significant value of .000

This proves our hypothesis that there is significant relationship between organizational culture and task
performance stands true. According to data, there is very significant relationship between the two.

Culture with contextual performance= .804 at the significant level of .000

This proves our hypothesis that there is significant relationship between organizational culture and
contextual performance stands true. 0.804 shows that there is significant relationship between the two.

Culture with counter productive work behavior = -.825 at the significant value of .000

This proves our hypothesis that there is significant relationship between organizational culture and
counter productive work behavior stands true. But the negative sign before .825 depicts that the data is
highly negatively related.

Employee engagement with task performance = .901 at the significant level of .000

This proves our hypothesis that there is significant relationship between employee engagement and task
performance stands true. .901 represents that both the variables are strongly correlated with each other.

Employee engagement with contextual performance = .689 at the significant value of .000

This proves our hypothesis that there is significant relationship between employee engagement and
contextual performance stands true.

Employee engagement with counter productive work behavior = -.737 at the significant level of .000

This proves our hypothesis that there is significant relationship between employee engagement and
counter productive work behavior stands true. But again negative sign represents that how both of them
are oppositely related.

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Factors influencing employees’ performance in organized retail sector

Regression

In short strengthens the correlational study, as it helps to understand the impact of one variable on the
other by analyzing how much Variance can be caused due to variation in Independent Variable

The R2 value (the "R Square" column) indicates how much of the total variation in the dependent
variable, can be explained by the independent variable.

In case of our study, we have found that all the independent variables of our study, i.e, employee
engagement, organizational culture and employee performance can nearly explain 75% variance in the
employee performance of the organization.

The regression equation thus formed becomes

Y = 1.740 + .181 Y – 0.017 X + 0.152 Z

X = Role

Y = Culture

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Factors influencing employees’ performance in organized retail sector

Z = Employee engagement

A= Employee Performance

Conclusion
The main of doing this study was to find out how the dimensions of employee performance were being
affected by the highly influential HR factors such as role, employee engagement and culture. Our results
depicts that there is strong affinity between each of the independent variables and the dimensions of
employee performance I.e., task, contextual and employee engagement. The relationship of employee
engagement and culture with the employee performance’s dimension is stronger as compared to the role.
The counterproductive dimension of the employee performance is also significantly influenced by the
independent variables of our study but its affiliation is the negative one and results have shown that
higher the other two dimensions of the organization, lower will be the counterproductive behavior. Thus,
an organization which can provide better role clarity to the employees working there, who ensures that the
culture they provide is best fit for the employees of their organization and where maximum measures are
taken to keep the employees engaged so that minimum attrition, job turnover or other such activities
exists will see a higher employee performance. And if the goals of the employee in the organization are
aligned with the goals of the organization, the latter can solve many major HR issue.

Limitations of the study


Though we tried to abide by all the possible techniques with full accuracy, but still many errors might
have occurred. There are certain limitations to the study.

 This research was conducted in a short period of time.


 The purview of study is limited by small size of sample.
 Though normality of data achieved, there still can be a certain level of bias associated with the
responses as the questionnaires were distributed. Since we couldn’t the formal approval to get
our questionnaire filled, there can be significant percentage of error involved.
 Socially Desirable responses can also be present.

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REFERENCES

 The understanding of employee engagement practices at Big bazaar in organized retail sector
through employee Engagement index (EEI)(Management, 1993)
 Impact of employee engagement on performance (Harvard Business Review Analytic
Services, 2013)

Profiles of big bazaar and total(Bazaar, n.d.)
 Work engagement: A quantitative review and test of its relations with task and contextual
performance(Christian, Garza, & Slaughter, 2011)
 To study the impact of employee engagement on employee productivity and motivational
level of employee in retail sector(Nidan, 2016)
 The Role of Motivation Mediation on Style Leadership and Organization Culture of
Teacher Performance in SMP Negeri Kuta Utara Badung(Ayu, Prameswari, Sujana, &
Sapta, 2018)
 The role of ethical leadership on employee performance in Guilan University of medical
sciences(Reza, Kelidbari, Fadaei, & Ebrahimi, 2016)

 The relationship between organizational identification and organizational culture:


Employee perceptions of culture and identification in a retail sales organization(Schrodt,
2009)
 Organizational Culture and Its Impact on Employee Performance and Job Satisfaction : A
Case Study of Niger Delta University , Amassoma (Nkereuwem & Alfred, 2016)
 Impact of Organizational Culture on Employee Performance(Saad, 2013)
 A study on organizational culture and it ’ s impact on employees ’ behavior in automobile
industry (Sirajudeen, Irshath, & Tamilenthi, 2012)

https://drive.google.com/file/d/1GLecfSWD0rV0DxtFdHom4P1Pwz5UYXqj/view

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