2.1 Conceptual Framework
Modern organizations face increasing demands to improve quality and business outcomes to remain competitive one key element of competitiveness and retention of outstanding staff. Large diversified organizations such as utilities companies, always seek to improve satisfaction of its employees through understanding of employees expectations and factor that influence their satisfaction (e.g. work environment and performance). In order to meet the challenge of posed by competitive global economy, management of human resources, efficiently and effectively, is more important than ever. It has become most important not only to compete but also to survive. Organization aim at optimizing the use of their resources to enhance productivity and competitiveness. It hardly matters how sophisticated organizations strategy and technology., the human factor inevitably is the key to success unleashing the power of human potential in the work place through creation of involving and innovating organizational environment has been acclaimed as a key source of competitive advantage for business organization. Public and private sector organizations in India differ with regard to their functioning and ownership, legal environment and criteria for accountability and control. The viability of performance of public sector units has been a matter of concern for the government, managers, workers, consumers, economists and behavioral scientists all over the world. There is a general agreement among scholars that in some areas private sector is more efficient than public sector. Keeping this view in mind the government has given emphasis on privatization to increase effectiveness and profitability to boost economic development. In recent years public sector employment has attracted a lot of attention from the economists. This interest largely stem for the important size of the public sector and its difference from the private sector. Indeed, in most the cases employment condition of public employees has not regulated by market forces, but rather determined by politicians. As the result, the pattern of unionization, of law governing collective bargaining and wage determination often differ between the two sectors. In many countries, public sector unions are more powerful than their counterpart in private sectors. Devices which relate wager individual productivity are often missing in the public sector. So alternate models should be developed in order to analyse wage structure and working conditions in this particular sector.
The extent to which an employee is satisfied with work, including opportunities for creativity and task variety, allowing an individual to increase his/her knowledge, change in responsibility, amount of work, security, and job enrichment. What are the qualities that help generate satisfaction with work? If job satisfaction is understood as the difference between value priorities regard as important by employees and those rewards actually experienced. The largest gaps for the public and private sectors were in job security, income, interest, and promotion prospects: in all these areas experience fell well behind how for these were valued. But the gap were fairly similar both for people working in government and for business. On the other qualities of work, there was a closer match between expectations and experience, but the public sector prove especially satisfied in experiencing work that contributed towards society or helped other people, far more than the private sector. These differences remained as significant in multivariate models with controls. What this suggests is that all employees desired better financial rewards and conditions of work, such as great stimulus, and yet there is no reason from these results to believe that public sector workers were less satisfied with their position.
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