1.0 INTRODUCTION:

Human resources are the important contributors for competitive advantages and firm needs to ensure these inimitable resources do not leave the firm to join competitors (Newbert, 2008). Several studies have been made on various aspects of human resources management practices. However, the complex system of relationships between the leadership and organizational vision, and how these inspirational values induce psychological attachment among the employees are empirically less explored. Employees want a leader who can understands them, care for them, treat them fairly, and above all whom the employees can trust. Vision is professed as directing the organization and its employees to integrated values and standards, as well as encouraging commitment among the employees of the organization (Bennis and Nanus, 1985). While the organizational vision is a process in which other members of the organization participate but the organization vision is mostly framed by the leaders rather than the followers (Bennis and Nanus, 1985).

A circumstance in which an organizational vision exists without a visionary leader (Foster and Akdere, 2007) is an exception rather than the statute. Organizational vision begins at an individual level (Crossan and Mazutis, 2008), therefore it depends on the leader's personal ethos that represents his personal aspiration regarding the organization’s future (Chance, 1992). As a starting point, leader’s personal vision has an important role and is the foundation for developing a shared vision with other organizational members (Manasse,1986). It is utmost important for organization to measure the employee’s level of satisfaction on the organization leadership and organization vision. Employee satisfaction level with organization attributes are expressed by employee’s positive word of mouth (Sullivan, 2004). Understanding employees' perceptions on the organizations leadership team, vision is vital as these perceptions influence the business benefit of the organization as well as the employee retention. The current study endeavors to provide a systematic work explaining the impact of leadership, organization vision on employees’ psychological attachment towards the organization. The study focused on the Information Technology (IT) sector, the knowledge based organizations that play a major role in Indian economic.

2.0 REVIEW OF LITERATURE:

Leadership:

The leadership theory focuses on characteristics theory, behavior theory and contingency theory (Tsai, 2002). Transformational leadership has become the mainstream of leadership models (Faranda, 1999). To sustain in the competitive business environment organizational reformation at the due course of time is a strategic must rather than an option. Leaders offer an inspiring vision and value to evoke members' awareness of the change as well as switch the original value, culture of the organization, behavior models, and human relationship to achieve the reformation the organization is looking for (Burns, 1978; Chu andLai 2011). The leaders who can activate innovation, groom employees as leaders, and drive reformation forward are called transformation leaders (Bennis, and Nanus, 1985; Bass, 1990). The transformation leaderships are divided into four parts as Idealized influence, Individualized consideration, Inspirational motivation, Intellectual stimulation (Chu and Lai, 2011).

· Idealized influence: Employees trust and respect leaders with visionary idea and excellent fortitude and are willing to accept missions to achieve the organizational desired goals (Chu and Lai, 2011).

· Individualized consideration: Respect the uniqueness of employees' nature, care the employees and meet their needs, and make them to be valued and happy to stay engaged and contribute to organization (Chu and Lai, 2011).

· Inspirational motivation: Inspire employees' working motivation, encourage them to face challenge and complete work through sincere interaction and mutual respect for the accomplishment of organizational missions (Chu and Lai, 2011).

· Intellectual stimulation: Encourage staffs to learn and gain knowledge, develop the platform of diverse thinking, encourage employees creativity as well as train ability of problem solving (Chu and Lai, 2011).

As pointed out by Chu and Lai (2011), leaders play a vital role in the employees’ psychological attachment with the organization. The most important element in an organization for retention is the leader (Taylor, 2002). Leader is the face of any company and makes the difference. Accountability for retention has traditionally fall under the domain of HR, so transferring part of that responsibility to operations and leaders is a cultural shift (Taylor, 2002) and highly applicable for the modern human resource management. Leadership can change and sustain the culture of the organization by creating new or reinforcing established sets of practices, beliefs, shared values, and norms within organizations (Trice and Beyer, 1993; Schein, 1985). Trust in the workplace among employees is another outcome that is developed through the organization’s leaders (Creed and Miles, 1996; Shaw, 1997).

Organization Vision:

In the literature, vision has a number of definitions but all of these definitions include an orientation to future, a mental image or picture, and aspects of direction or goal. Vision articulates what the organization wishes to achieve. It serves as "a signpost pointing the way for all who need to understand what the organization is and where it intends to go" (Nanus, 1992). Vision not only restricts just by describing an organization's direction or goal, but also directs the ways of achieving it. It guides the work of the organization and for its employees. To assist leaders in developing an appropriate vision, Nanus (1992) maintains that the "right vision" will attracts commitment and energizes people and creates meaning in workers' lives.

According to Seeley (1992) vision is a "goal-oriented mental construct that guides people's behavior." Vision is a portrait of the future for which employees are willing to work for (Seeley, 1992). However, vision is more than an image of the future. It has a convincing characteristic that serves to motivate, inspire and engage employees. Vision has been described by Manasse (1986) as "the force which molds meaning for the people of an organization."

Corporate Social Responsibilities (CSR):

Global Workforce Study (2007-2008) found that CSR is one of the top three attribute that leads for both engagement and retention among all age groups except 18-24 years of age. The study also found that when employees view their organization’s commitment to socially responsible behaviour more favourably, they also tend to have more positive attitudes towards the organization. There is growing evidence that a company’s CSR activities comprise an increasingly important way to attract and retain good employees from all generations (MBR, 2009). Contrary to early research that suggested CSR was more important to young professionals, researchers have now shown that CSR is valued by employees of all experience levels and generations (MBR, 2009).

3.0 RESEARCH DESIGN AND METHODOLOGY:

The present study intended to investigate the effect of leadership and organizational vision on employee’s psychological attachment to the organization. First of all exploratory research was conducted for the basic understanding of the fact followed by a focus group discussion (Pattnaik, 2011). The focus groups culminated in the generation of 4 potential scale items pertaining to leadership and organizational vision. These items were then edited to ensure wording was as precise as possible (Churchill, 1979) and subsequent procedure for data collection and scale purification. In this study psychological attachment was considered as the consequences of the organizations leadership and vision attributes and not a component of leadership and organizational vision scale. The level of psychological attachment of employees was measured with a single question (Q2.1 Given the opportunity, I tell others great things about working here) as Sullivan (2004) noted that eemployee’s satisfaction level with organization aare expressed by employee’s positive word of mouth. Based on the literature review and focus group interview the following hypotheses were developed for statistical analysis.

H1: Strong leadership and clear organization vision has significant impact on employee’s psychological attachment towards the organization.

The research adopted conclusive research. Among two types of conclusive research, descriptive research was chosen by which the degree to which the variables are associated were determined and from descriptive research quantitative research design was chosen to carry out the study (Pattnaik, 2011). From the methods of descriptive research the present study was administered through survey methods (Pattnaik, 2011).

3.1 Sampling Size and Design

Sampling is the selection of a fraction of the total number of unites of interest to decision makers for the ultimate purpose of being able to draw general conclusions about the entire body of units (Parasuraman et al. 2004). Indian IT organizations were selected for the study. Questionnaires were sent to 500 employees of these organizations and 268 responded with a response rate of 53.6 percent. Distribution of sample demographics is presented in table-1 through table-4. Due to the confidentiality of the organization and respondents, the identities of these organizations are not disclosed in the current paper.

Table 1: Gender

Gender	Frequency	Percent
Male	169	63.1
Female	99	36.9
Total	268	100.0

Table 2: Age

Age	Frequency	Percent
< 25 Years	37	13.8
25 -30 years	86	32.1
31- 35 Years	71	26.5
36- 40 Years	42	15.7
41- 45 Years	29	10.8
46- 50 Years	3	1.1
Total	268	100.0

Table 3: Designation

Designation	Frequency	Percent
Team Member	115	42.9
Team Leader/ Project Leader	52	19.4
Project Manager/ Account Manager/ Delivery Manager	82	30.6
Delivery Head/ Head Of Department/ Senior Management	17	6.3
Other	2	.7
Total	268	100.0

Table 4: Education

Education	Frequency	Percent
BE/ B.Tech or equivalent	164	61.2
ME/M.Tech/ MCA or equivalent	86	32.1
MBA or equivalent	15	5.6
Other	3	1.1
Total	268	100.0

3.2 Scaling Method

Based on the focus group discussion questionnaire was developed. The questionnaire consists of a series of statements, where the respondents were requested to provide answers in the form of agreement or disagreement to express their level satisfaction to the questions. Likert scaling was used with a range from 1 to 5 point scaling because the research was based on five dimensions which are strongly disagree, disagree, neutral, agree and strongly agree. Demographic details were also part of the questionnaire. In case of gender we used nominal scaling.

3.3 Reliability and Validity

Before proceeding for the Exploratory factor analysis, Item-total correlation was made and found that the corrected item-total correlation of four items of the scale appeared to have a corrected item-total correlation greater than .70 and hence none of the items were dropped for further analysis (Everitt, 2002). Reliability of the questionnaire was validated with computation of Cronbach alpha (Cronbach, 1951). For all 4 items, Cronbach alpha was 0.88. According to Hair et al. (2007), this coefficient (0.88) indicates good reliability as it exceeds minimum acceptance level of 0.7 (Pattnaik. 2011).

Exploratory factor analysis was done on the 4 variables scale. Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy has proven good (0.778) which proves the construct validity. Bartlett’s Test of Sphericity tested whether the correlations between questions are sufficiently large for factor analysis to be appropriate and it is found to be significant, c²(6) = 309.528, p < .001, indicating that the correlations within the R-matrix are sufficiently different from zero to warrant factor analysis. As the study was explorative in nature the statements with Eigen values less than 1.0 were ignored for the subsequent analysis (Bagozzi and Phillips, 1991, Pattnaik, 2011).Percentage of variance appeared 74.07 (Table-6). The factor analysis confirmed that all the items Q1.1 (My organization has a strong leadership team), Q1.2 (My organization is having a clear vision for future), Q1.4 (My leadership team treats employee well being as a priority) and Q1.3 (My organization has adequate Corporate Social Responsibilities (CSR) initiatives) are loaded into a single factor as expected (Table 5).

Table 7: Model Summary

Model	R	R Square	Adjusted R Square		Std. Error of the Estimate		Change Statistics
							R Square Change		F Change		df1	df2		Sig. F Change
3	.633^c	.400	.393		.60175		.012		5.392		1	264		.021

Table 8: ANOVA
Model				Sum of Squares		Df		Mean Square		F			Sig.
3		Regression		63.761		3		21.254		58.696			.000^c
		Residual		95.594		264		.362
		Total		159.354		267

Table 9: Regression Coefficients

Model		Unstandardized Coefficients		Standardized Coefficients	t	Sig.	Collinearity Statistics
Model		B	Std. Error	Beta	t	Sig.	Tolerance	VIF
3	(Constant)	1.551	0.187		8.294	0.000
	Q1.4 My leadership team treats employee well being as a priority	0.294	0.053	0.352	5.560	0.000	0.566	1.768
	Q1.1 My organization has a strong leadership team	0.166	0.067	0.186	2.482	0.014	0.403	2.484
	Q1.2 My organization is having a clear vision for future	0.176	0.076	0.179	2.322	0.021	0.383	2.613
a. Dependent Variable: Q2.1 Given the opportunity, I tell others great things about working here

5.0 DISCUSSION AND CONCLUSION:

The results of this study showed a strong positive relationship between employees Psychological Attachment and strong leadership along with clear organization vision has significant impact on employee’s psychological attachment towards the organization in the Indian origin software companies. Contrary to the Towers Perrin Global Workforce Study (2009) the present study points that CSR is not a predictor of employee’s psychological attachment with the organization in Indian IT employees’ context.

The samples collected for the present study was small. A more accuracy can be attained with large sample size by extending the research to more Indian IT organization. Applicability of the current research results needs further analysis and consideration. Further research is needed across various domains / sectors such as banking, manufacturing and retail.

6.0 REFERENCES:

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Chu, Li-Chuan., and Lai, Chun-Che. (2011). A Research on the Influence of Leadership Style and Job Characteristics on Job Performance among Accountants of County and City Government in Taiwan. Public Personnel Management, 40(2), pp- 101- 1118.

Creed, W. E. D., and Miles, R. E. (1996). Trust in organizations: A conceptual framework linking organizational forms, managerial philosophies, and the opportunity costs of controls. In R. M. Kramer and T. R. Tyler (Eds.), Trust in organizations: Frontiers of theory and research (pp. 16-38). Thousand Oaks, CA: Sage.

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Hair, J. F., Anderson, R.E., Tatham, R.L. and Black, W.C. (1995). Multivariate Data Analysis (4th ed.). Upper Saddle River, NY: Prentice-Hall International.

Manasse, A.L. (1986). Vision and leadership: Paying attention to intention. Peabody Journal of Education, 63 (1). 1, pp. 150-173.

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Received on 17.08.2014 Modified on 23.08.2014

Asian J. Management 5(4): Oct.- Dec., 2014 page 401-405

Items	Component
	1
Q1.1 My organization has a strong leadership team	0.868
Q1.2 My organization is having a clear vision for future	0.864
Q1.4 My leadership team treats employee well being as a priority	0.858
Q1.3 My organization has adequate Corporate Social Responsibilities (CSR) initiatives	0.852

Component	Initial Eigen values			Extraction Sums of Squared Loadings
Component	Total	% of Variance	Cumulative %	Total	% of Variance	Cumulative %
1	2.963	74.069	74.069	2.963	74.069	74.069
2	.517	12.916	86.985
3	.295	7.387	94.372
4	.225	5.628	100.000

Role of Leadership and Organizational Vision in Inducing Employee Psychological Attachment towards the Organization

5.0 DISCUSSION AND CONCLUSION: