1. INTRODUCTION:
In today highly competitive and rapidly changing business environment occasioned by global competition, information technology, new knowledge, the growth of the knowledge worker and a host of other social and environmental forces, organizations are re-evaluating how they do business. Many organizations are introducing new technologies, changing their structures, and improving work process in response to local and global customer demands. India is considered the global leader in the information technology (IT) outsourcing market NASSCOM 2015; Krishnan and Singh 2015) wherein many Western firms engage with offshore IT service providers located in India to help develop and maintain their IT applications (Apteand Mason 1995; Carmel and Agarwal 2002; Oshriet al. 2007; King and Torkzadeh 2008).
High turnover rates among information technology professionals have a negative influence on firms ‘ability to serve overseas clients effectively. When an employee leaves, an offshore IT firm must incur several kinds of costs to make up for his/her move. To begin with, the firm must incur a cost of hiring to find a suitable replacement. Once the new employee is hired, he/she cannot be expected to be as productive as his/her predecessor since he/she has not yet learnt the nuances of the job, nor is he/she informed about the offshore client specific relationships. Thus, there is an opportunity cost of losing an employee.
After 2000, India has undergone a major upward economic trend with the progress of the modern Information and Communication Technology (ICT). In India, employee turnover especially in the ICT sector is a worrying figure. Turnover rates globally are averaging 15 to 20 percent but are as high as 30 to 35 percent in IT sectors.
Organizational commitment is defined either as an employee attitude or as a force that binds an employee to an organization. Most of the behavioral science researchers differ over the common definition of organizational commitment (Benkh off, 1997; Mowday, 1998). Organizational commitment is defined depends on the approach to commitment that one is adhering to. According to Suliman and Isles (2000), there are currently four main approaches to conceptualizing and exploring organizational commitment, attitudinal approach, the behavioral approach, the normative approach and the multidimensional approach.
STATEMENT OF THE PROBLEM:
High employee turnover is a critical problem especially for knowledge intensive industries (Flood, Turner, Ramamoorthy and Pearson, 2001) where work is primarily of an intellectual nature, performed by well-educated and qualified personnel (Alvesson, 2000).
Organizational commitment is one factor that has been shown to be negatively correlated with employee intention to leave the organization and actual turnover (Mathieu and Zajac, 1990; Meyer and Allen, 1997). Research has also shown that success of knowledge management systems depends to a large extent on employees organizational commitment (Cabrera, Collins and Salado, 2006; Van den Hoff and Ridder, 2004). Consequently, knowledge intensive firms are seeking commitment producing human resource management strategies to retain and motivate their employees.
OBJECTIVE:
To study the Human resource practices and its relevance to the continuance organizational commitment of the employees in IT sector in Chennai
REVIEW OF LITERATURE:
DECISION MAKING:
Decision making offers employees assemble abilities in recognizing, some assistance with assessing, and assessing choices, and might support employees' drive in adjusting work forms, creating needs, and apportioning assets as these aptitudes and capacities are among those distinguished as adding to improve profession strength. Participating in decision making (PDM) additionally furnishes employees with chances to take part in profession advancement exercises, for example, selecting assignments that fit a vocation plan and building individual networks through communications with individuals in different units (London, 1993).
Investment in decision making (PDM) offers workers some assistance with developing and matches their knowledge, skills, and attitudes with organizational esteemed exercises (Karasek, 1979). Practicing impact through participation in decision making (PDM) might energize dynamic profession advancement and assemble career strength (Arthur, 1988).
Few workers may not be occupied with taking part in decision making. For instance, Kahnweilerand Thompson (2000) found that workers with advanced educations tended to need to be more included in decision making more than those with no professional educations, and that those matured 25-48 needed more partici pation in decision making than more youthful or more established employees and research by Aluttoand Belasco (1972) studied the impacts of contrasts between coveted levels of participation in decision making and the level really experienced.
Their study portrayed three conditions: ''decisional hardship'' where real cooperation is lower than wanted; ''decisional harmony'' where genuine interest is roughly equivalent to the level coveted; and ''decisional immersion'' where real investment is more prominent than sought. Study on American worker commitment, decisional hardship and immersion were contrarily related with organizational responsibility, while decisional balance was decidedly related with commitment (Alutto and Belasco, 1972).
BRAND VALUE:
Brand administration requires due thought be given to employees (de Chernatony and Cottam, 2006) on the grounds that it is the workers' aptitudes and information (i.e. operant asset), which give the upper hand to an organization. It is viewed as vital that all workers have a chance to comprehend the brand as it identifies with their parts so that they, thusly, can convey the brand guarantee. This is on account of it is turning out to be progressively basic for workers to have the capacity to reliably show positive authoritative practices for organization to perform successfully (Parker, 2007). It is through viable inner brand administration hone that workers understand the scope of eminent aptitudes and information vital for the aggregate objectives of the association to be met.
Effective brands are considered to have high brand value. Papasolomou and Vrontis (2006) advocate high brand value as being obvious to the degree that organization show attributes, like, higher brand steadfastness, name awareness, gained quality, solid brand affiliations and credibility all these non-financial measures or purchaser based points of view of brand value are regularly joined with money related measures, for future profit keeping in mind the end goal to gage the achievement, or something else, of organization image management exercises (de Chernatony and Cottam, 2006) as the effect of brand administration, as showed in brand value (e.g. Srinivasan et al., 2005), de Chernatony and Cottam (2006) propose that as opposed to one thorough technique to assess brand accomplishment, there are a scope of money related and non-monetary measures that, all in all, give the vital understanding.
Such a various point of view is accepted to be gainful given that it mirrors various diverse stakeholders' viewpoints (i.e. clients and shareholders) but fundamental to organization brand management is the employees, the brand value writing misses the mark regarding representing another partner's' point of view, that being the worker. As organization are progressively reassuring employees to hold onto their part as brand representatives (de Chernatony et al., 2006), brand value research from a worker point of view is justified.
CAREER DEVELOPMENT:
The purpose of human resource development is to improve the employee's capability and increase organization performance through handling career development, organization development and training and development combine as it empowers employees to achieve personal and organizational goals together (Hezlett and Gibson 2005).
Traditional approach of career development involves combination of viewpoints from both employee and employers (Welch, 2003). An effective career development program will be designed based on the organizational strategies and goals. Thus career objective will be set that provides tangible and intangible benefits to both employees and organization (Ferratt, Agarwal, Brown and Moore 2005).
The more suitable way to characterize career development in more subjective terms — as psychological achievement, or the satisfaction of one's very own qualities, yearnings, reason, and objectives. Mental achievement mirrors the individual's sentiments of progress and profession fulfillment, rather than outside measures of accomplishment (Defillippiand Arthur, 1996; Friedman and Greenhaus, 2000; Hall, 1976; Murvis and Hall, 1996a; Schein, 1996). Late research on career development has perceived the additional estimation of incorporating the two points of view and has used both meanings of career achievement (e.g., Siebert et al, 2001). Career development encourages versatility and adjustment and, along these lines, is a fundamental piece of building up a boundary less vocation design (Arthur et al., 1995; DeFillippi and Arthur, 1994). Formal and casual preparing and improvement programs, cross-practical and parallel developments, and makeshift assignments will widen learning, aptitudes, and capacities (KSAs) (Arthur et al., 2007; DeFillippi and Arthur, 1994).
Albeit a few exercises upgrade general and authoritatively particular expert and specialized learning, others construct more unobtrusive assets, for example, one of a kind individual skills and the capacity to combine complex data (Weickand Berlinger, 1989). According to Giannantonio and Hurley-Hanson (2006), Career development process involves five stages covering the lifespan. Consisting of growth, exploration, establishment, maintenance, and disengagement are the five stages in a career development process. Among the five stages of career development process, establishment and maintenance are considered important for an employee career development.
As establishment stage, every employee who involved in the career development process would have identified their desire and will be eager to achieve advancement in their professional career. In maintenance stage employees aim to maintain what they have achieved so far i.e. employee efforts will be focused on to maintain the current position and rank.
Employee can create demeanors and practices on the premise of career commitment, where individuals make a noteworthy interest in their career (Kaiser, 1974; Carson et al., 1999; Poon, 2004). A career is a developing succession of a man's work experience as it identifies with the individual's apparent arrangement of livelihood, occupation or calling that individual involves after some time (Hall, 1976; Salomon, 1993). An individual's mentality towards his or her profession is depicted as career commitment.
It is perceived as a type of work responsibility (Morrow, 1993) that can be described by the improvement of individual profession objectives and the individual's connection to, distinguishing proof with and inclusion in those objectives (Colarelli and Bishop 1990). Career includes exchange offs of security and hazard and between individual achievement and family. The writing demonstrates that worker connection, ID and contribution rely on outward and inborn results, for example, pay advancement, evaluation, and fulfillment that can allude to one's motivation to work in a picked occupation (Hall, 1970).
PERFORMANCE APPRAISAL:
Performance management is the process through which the organization ensures that employee activities are congruent with organizational goals. The performance evaluation process implies that the organization is willing to reward high performance and is interested in improving the employee's fixture performance. Studies in manufacturing found results-oriented appraisal systems were positively related to return on assets (Suliman and Iles, 2000).
Performance appraisal is a system with theoretical and practical construction used by organization to evaluate how well employees do their tasks as compared set of principles or organizational expectation (Dessler, 2011). Performance appraisal is evaluation of employee performance for elaborating employees¢ competency and development, supporting decision regarding promotion and salary increases and career planning Mathis and Jackson (2003), Bohlander and Snell (2009) Dutra (2001).
The promotion and progression of workers have an impact on their commitment to their organization. This promotion is a necessity for proceeded with employment as some Extension specialists. Gaertner and Nollen (1989) found that commitment was higher among representatives who had been promoted based on the promotion policy.
MOTIVATION:
The most understood human motivation theory is Maslow's hierarchy of needs. Maslow stressed the significance of self-realization and put it as the most abnormal amount of individual inspiration (Zemke, 1998). Maslow (1968) proposed five needs that inspire human conduct: physiological necessities; wellbeing and security needs; social and belongingness needs; personality, status, and self-regard needs; and self-completion.
Abraham Maslow presented the hierarchy of needs theory in 1943. He proposed a successive progression of five essential needs. His hypothesis was based upon the reason that more elevated amount needs are not vital and is not shown until lower-level needs are fulfilled. The most fundamental needs of people are named as physiological needs and included such things as nourishment, water, sex, rest, and other real needs. (Cherrington, 1989). The following most critical level of requirements is wellbeing. This included things, for example, security and insurance from physical and passionate damage (Robbins and Judge, 2007). The third level of necessities is social needs. This level of need included friendship, love, and belongingness (Cherrington, 1989). The fourth level of needs is esteem needs. This level included self-respect, prestige, and recognition (Cherrington, 1989). The highest level of need is self- actualization. Self-actualization is the drive to become what one is capable of becoming and achieving their potential (Robbins and Judge, 2007).
The needs represented by Maslows hierarchy can be applied to the work environment as a way to motivate employees through salary pay compensation and work hours can contribute to satisfying physiological needs. Other benefits such as safe working conditions, company benefits and job security help fulfill safety needs and friendly supervision, and professional associations relate to social needs. Whereas the Job title and social recognition help fulfill esteem needs. Finally, a challenging job, opportunities for creativity and advancement in the organization can fulfill self-actualization needs (Cherrington, 1989).
The challenge for organizations is to consider these employee needs as they implement organizational practices. In 1960, Douglas McGregor proposed Theory x and theory y that employees are detached or even impervious to organizational necessities unless there is some sort of intercession by administration. The theory says that individuals who hate work should be constrained into accomplishing objectives and these employees will maintain a strategic distance from obligations, and show little desire (Robbins and Judge, 2007).
COMMITMENT:
Gagne ́and Deci (2005) A positive outcome on the HRM practices can be achieved if the organization looks into satisfying basic needs of employees by creating a favorable work environment as it inflates autonomous motivation among the employees. As they get attached to the organization, will subsequently results in higher affective commitment towards organization to stay long and loyal. As leaving the organization means employees has to lose all the benefits acquired through the favorable work environment.
Commitment is widely seen as a psychological state that links employees to an organization by indicating that strongly committed employees are less likely to leave the organization. (Meyer, Allen and Gellatly, 1990). In 1984, Meyer and Allen developed a model to measure commitment that accord to previous researcher’s conceptualization of commitment. Affective commitment, continuance commitment, and normative commitment are the three measures of commitment. Affective commitment points the employee's emotional attachment and involvement in the organization. Continuance commitment refers to the loss an employee would have to face if chose to leave.
Losses such as beneficial work environment cost of leaving the organization and also problems in alternative employment. Normative commitment reflects values and beliefs taught to employees through socialization that to remain loyal and committed to the organization.
Affective commitment is found to be directly proportional to organizational commitment with positive impact on behavior of employees. (Allen and Rush, 1998; Cappelli and Rogovsky, 1998; and Tremblay et al., 1998). It’s found that the HRM practices adopted by the organization with motive to develop skill and knowledge of the employees and provide a career path through training and development, internal promotion, employment security, makes employees committed to the organization. The researchers Ogillvie (1986) and Gaertner and Nollen (1989). When and employees feels stressed and dissatisfied due to his job will eventually end up with low organizational commitment and will increase employee turnover (Firth 2007). However, some situations even if not stressed and feel happy, few employees would still want to leave the organization with aim to get better career advantage from various other sources. Stress factor that affect employee commitment is inversely proportional to level of commitment of an employee.
CONTINUANCE COMMITMENT:
Continuance commitment is defined as“the extents to which employees feel commitment to their organization when they consider the cost of leaving the organization” (Berg, Kalleberg, Appelbaum, 2003), in other words employees decide to stay with the organization because cost of leaving is high. Karasek, (1979) states that continuance commitment do not exist if the employees leave the organization and incurs the cost of leaving because he/she was not aware of it. The factors that influence continuance commitment among employee is when an employee's made huge tangible and intangible investment by employees and limited employment opportunities outside the organization (Sam Gnanakkan, 2010).
THE INDIAN IT INDUSTRY:
India is the world's largest sourcing destination for the information technology (IT) industry, accounting for approximately 67 per cent of the US$ 124-130 billion market. The industry employs about 10 million workforces. More importantly, the industry has led the economic transformation of the country and altered the perception of India in the global economy. India's cost competitiveness in providing IT services, which is approximately 3-4 times cheaper than the US, continues to be the mainstay of its Unique Selling Proposition (USP) in the global sourcing market.
However, India is also gaining prominence in terms of intellectual capital with several global IT firms setting up their innovation centers in India. The IT industry has also created significant demand in the Indian education sector, especially for engineering and computer science. The Indian IT and Its industry is divided into four major segments – IT services, Business Process Management (BPM), software products and engineering services, and hardware.
The IT-BPM sector which is currently valued at US$ 143 billion is expected to grow at a Compound Annual Growth Rate (CAGR) of 8.3 per cent year-on-year to US$ 143 billion for 2015-16. The sector is expected to contribute 9.5 per cent of India's Gross Domestic Product (GDP) and more than 45 per cent in total services export in 2015-16.
INDIA'S ITS MARKET SIZE GROWING:
· India’s technology and BPM sector (including hardware) is likely to generate revenues of US$ 160 billion during FY16 compared to US$ 146.5 billion in FY15, implying a growth rate of 9.2 per cent
· The contribution of the IT sector to India's GDP rose to approximately 9.5 per cent in FY15 from 1.2 per cent in FY98
· TCS is the market leader, accounting for about 10.4 per cent of India's total IT and ITeS sector revenue in FY16
· The top five IT firms contribute over 25 per cent to the total industry revenue, indicating the market is fairly competitive.
Figure 1. IT Industries in India
According to the industry body NASSCOM, the revenue from the software product segment currently stands at 2.2 billion USD and is expected to reach 10 billion USD by 2020. Assuring that the growth of Indian IT sector is well on track; industry lobby NASSCOM today said that the sector would nearly triple its revenues of $350 billion by 2025.
RESEARCH METHODOLOGY:
The purpose of the study is to examine the relationship between HR practices the independent variable and the employee expression of commitment to the organization which is the dependent variable.
SAMPLING:
As the population size is very large, sampling technique has been applied to conduct this study. In this study, population refers to IT professionals in IT and ITES firms located in Chennai city.
Sample unit of this study consists of employees in IT industry in Chennai city. Therefore, convenience sample technique is adopted for selecting the sample units. Thousand questionnaires have been distributed among respondents but only 735 have been received after continuous follow-up.
Among the collected questionnaires, only 598 filled questionnaires are taken into account for the research. of which 500 were in a useable condition.
DATA ANALYSIS:
FACTOR ANALYSIS:
CAREER DEVELOPMENT:
TABLE 1. CAREER DEVELOPMENT:
|
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. |
.683 |
|
Approx. Chi-Square |
874.419 |
|
Bartlett's Test of Sphericitydf |
45 |
|
Sig. |
.000 |
Table. 2. Rotated Component Matrix for career development
|
Statements |
Component |
Eigen Value |
Percentage of Variance |
|
|
|
1 |
2 |
1.516 |
30.322 |
|
CD3 |
.806 |
|
||
|
CD4 |
.739 |
|
||
|
CD2 |
.573 |
|
2.390 |
47.79 |
|
CD1 |
|
.783 |
||
|
CD5 |
|
.743 |
||
The independent factor career development consists of five statements which is further sub categorized as Organizational outcomes and individual outcomes. The Eigen value for the organizational pouts come is 1.516 and explains 30.322 percent of variance. The loading factor for these statements ranges from 0.806 to 0.573.
The second factor namely individual outcomes consist of only two statements with the loading value from 0.783 to 0.743. The Eigen value is 2.390 and explains 47.79 percent of variance. All these statements have a meaning related to the growth and development of the employee in the organization. Hence it is named as Career Development Prospects with organizational and individual outcomes.
Table. 3. Brand value
|
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. |
.840 |
|
Approx. Chi-Square |
4098.246 |
|
Bartlett's Test of Sphericitydf |
120 |
|
Sig. |
000 |
Table. 4. Rotated Component Matrix forBrand value
|
|
Component |
Eigen Value |
Percentage of Variance |
||
|
|
1 |
2 |
3 |
4.458 |
27.865 |
|
BV4 |
.923 |
|
|
||
|
BV3 |
.919 |
|
|
||
|
BV10 |
.903 |
|
|
||
|
BV13 |
.855 |
|
|
||
|
BV14 |
.511 |
|
|
||
|
BV7 |
|
.486 |
|
2.751 |
17.1920.00 |
|
BV8 |
|
.803 |
|
||
|
BV5 |
|
.788 |
|
||
|
BV15 |
|
.777 |
|
||
|
BV11 |
|
.719 |
|
||
|
BV1 |
|
.697 |
|
||
|
BV6 |
|
|
.848 |
1.677 |
10.479 |
|
BV2 |
|
|
.819 |
||
|
BV16 |
|
|
.754 |
||
|
BV12 |
|
|
.732 |
||
A set of statements pertaining to brand value of the organization brand value when subjected to factor analysis the outcome was the three sets of different categories. Based on the similarity of the statements the groups were identified as rational brand identity, emotional brand identity and no identity. The factor of rational identity ranges from 0.923 to 0.511. The Eigen value is 4.458 and explains 27.865 percent of the variance. The second category emotional brand identity ranges from 0.486 to 0.693 with the Eigen value 2.751 and explains 17.192 percent of the variance and no identity with factor loading from 0.848 to 0.732 with Eigen value 1.677 with 10.479 percent of variance.
Table 5: Decision making
|
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. |
.732 |
|
Approx. Chi-Square |
2159.881 |
|
Bartlett's Test of Sphericitydf |
45 |
|
Sig. |
.000 |
Table 6:Rotated Component Matrix forDecision Making
|
|
Component |
Eigen Value |
Percentage of Variance |
||
|
|
1 |
2 |
3 |
3.321 |
33.209 |
|
M2 |
.841 |
|
|
||
|
DM5 |
.765 |
|
|
||
|
DM3 |
.658 |
|
|
||
|
DM4 |
.649 |
|
|
||
|
DM1 |
.553 |
|
|
||
|
DM9 |
|
.903 |
|
2.395 |
23.950 |
|
DM10 |
|
.854 |
|
||
|
DM8 |
|
.788 |
|
||
|
DM6 |
|
|
.899 |
1.080 |
10.803 |
|
DM7 |
|
|
.897 |
||
The decision making function of the HR has an impact on the commitment of the employee. The statements were separated into three categories on the similarity of the statements meaning. The first set was named as participatory decision making with the loading factor ranging from 0.841 to 0.553 and the Eigen value 3.321 and explains 33.209 percent of variance.
The second set of statements is autocratic form of decision making consisting of three statements with the loading score ranging from 0.903 to 0.788 Eigen value of 2.395 and 23.950 percent of variance.
The third set of statements has only two statements which depict the mixed feeling of decision making by the employees, hence named as mixed with the Eigen value of 1.080 and explaining 10.803 percent of the variance.
Table 7. Commitment
|
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. |
.841 |
|
Approx. Chi-Square |
4527.082 |
|
Bartlett's Test of Sphericity df |
153 |
|
Sig. |
.000 |
Table 8:Rotated Component Matrix for Commitment
|
|
Component |
Eigen Value |
Percentage of Variance |
||
|
|
1 |
2 |
3 |
5.224 |
29.020 |
|
COMT1 |
.937 |
|
|
||
|
COMT4 |
.916 |
|
|
||
|
COMT7 |
.866 |
|
|
||
|
COMT10 |
.764 |
|
|
||
|
COMT14 |
.650 |
|
|
||
|
COMT16 |
.599 |
|
|
3.166 |
17.588 |
|
COMT3 |
|
.794 |
|
||
|
COMT6 |
|
.782 |
|
||
|
COMT9 |
|
.766 |
|
||
|
COMT13 |
|
.721 |
|
||
|
COMT15 |
|
.697 |
|
||
|
COMT18 |
|
.645 |
|
||
|
COMT2 |
|
|
.699 |
1.913 |
10.630 |
|
COMT5 |
|
|
.682 |
||
|
COMT11 |
|
|
.645 |
||
|
COMT8 |
|
|
.634 |
||
|
COMT12 |
|
|
.621 |
||
|
COMT17 |
|
|
.602 |
||
The table consists of six statements which represents the affective commitment. The Eigen value for this factor is 5.224 and its account for 29.020 percent of variance. The six statements in the table have very strong relationship among them and are grouped under the single factor.
Based on the meaning of the statements, this factor is named is named as the affective commitment. Factors loading for the affective commitment vary from 0.937 to 0.599.
The second factor contains six statements that have significant correlation between them. Factor loadings for these statements are high which has scored between 0.794 and 0.645. Meaning of all the six statements reveal that commitment that arises is normative in nature. Eigen value for this factor is 3.166 and explains 17.588 percent of the variance.
The third factor consists of six statements which represents continuance commitment of the employees. These statements are highly correlated and grouped together are called as Continuance Commitment. The loading factor for these statements ranges from 0.699 to 0.602 and the Eigen value is 1.913 nods it accounts for the 10.630 percent of the variance.
PERFORMANCE APPRAISAL:
Table.9. Performance Analysis
|
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. |
.877 |
|
Approx. Chi-Square |
7625.728 |
|
Bartlett's Test of Sphericity df |
45 |
|
Sig. |
.000 |
Table 10. Rotated Component Matrix for Performance Appraisal
|
Statements |
Component |
Eigen Value |
Percentage of Variance |
|
|
|
1 |
2 |
4.647 |
46.466 |
|
PA10 |
.988 |
|
||
|
PA6 |
.959 |
|
||
|
PA7 |
.959 |
|
||
|
PA8 |
.955 |
|
||
|
PA9 |
.926 |
|
||
|
PA1 |
|
.982 |
3.876 |
38.764 |
|
PA5 |
|
.967 |
||
|
PA4 |
|
.960 |
||
|
PA3 |
|
.936 |
||
|
PA2 |
|
.473 |
||
The results in the table show that the sample size of this study is adequate to conduct factor analysis. Moreover, the correlation between the variables under each factor is significantly strong and that is justified with the chi-square value in the table.
For extraction purpose principle component analysis is applied. Varimax rotation method is needed for rotating the matrix. Factors, which score Eigen value of more than one, are only taken for analysis purpose and statements with loading factor less than 0.5 are suppressed.
The first factor comprises five statements with Eigen value of 4.647. The core of statements loading factor varies from 0. 988 to 0.926. This factor accounts for the variance of 46.466 per cent. These statements can be named as performance appraisal for promotional purpose. Similarly, another set of statements show a single category with the Eigen value of 3.876 and accounts for 38.764 percent of the variance, can be called as performance appraisal for training purposes.