JOB SATISFACTION AND ORGNISATIONAL COMMITMENT AS PREDICTORS OF HUMAN CAPITAL CREATION

Abstract

The present study is an attempt to identifying the functions of job satisfaction (JS) and organisational commitment (OC) on human capital creation (HCC). Present study examines least explored the relationship of factors of job satisfaction (i.e. pay, promotion, supervision, rewards, benefits, operating procedure, work itself, communication and coworker satisfaction), and organisational commitment (which includes affective, normative and continuance commitment) with human capital creation. Further, the conditional effect of demographic features (which are widely acknowledged as the potential source of variations in behavioral outcomes) on job satisfaction, organisational commitment and human capital creation was examined. Lastly, present study examined the occurrence of perceptual differences in study variables (job satisfaction, organisational commitment and human capital creation was examined) due to group differences (age, gender, educational level and experience). For the purpose of this study, primary data using cross sectional research design was adopted to collect responses from 366 executives (Junior, Middle and Senior) of fifty two Indian organisations (both public and private sector). Standardized instruments were used to collect the responses from varied nature of industries which include Electrical, Manufacturing, Service, ITITES (Information Technology and IT Enabled Services) and PME (Power, Mining and Exploration). The data has been analysed using SPSS v20.0 software. Since the data is multivariate, therefore it was subjected for missing values, normality, reliability, validity and non- multicollinearity. Further, Exploratory Factor Analysis using Principal Component Method was carried on to obtain the factor structure. Afterwards, Descriptive Statistics, Correlation Analysis, Independent Sample t- tests, one way ANOVA and Regression Analysis were employed for testing the research hypotheses. Structural Equation Modeling (SEM) was performed using IBM AMOS v 21. The study finding shows that job satisfaction and organisational commitment significantly predicts the human capital creation. The dimension of job satisfaction and organsational commitment represents the significant contribution in the human capital creation. Demographic (age, gender, experience and educational level) analysis of the study do not represents any vi significant difference in the perception with respect to study variables: job satisfaction, organisational commitment and human capital creation. The validation of the scales provided the base for the further investigation. Finally based on discussion, the conclusion and implications have been derived. Future scope has been explained. Here, in this study only two predictor variables (JS and OC) have been taken into consideration which was not studied together in previous researches and hence an addition in the existing literature. This study provides empirical evidence that JS and OC together as well as independently predict human capital creation.