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Abstract
This quantitative study explored the intra-organizational factors that affect employee's loyalty in advertising agencies situated in Karachi city. Two hundred employees from four local advertising agencies located in city Karachi were selected through random sampling to get their response by filling a structured questionnaire based on five point Likert scale. The results analyzed by SPSS showed that in advertising agencies, professional respect and employer-employee relation affect employee's loyalty. However when both coefficients were compared it was observed that employer-employee relation had a greater effect than professional respect. The study will be helpful to illustrate how owners/managers of multi-national and local agencies tend to exhibit highly personalized and mostly informal management styles, which affect employee's loyalty.
Key words: Employee Appraisal, Advertising Agencies, Quantitative Research
Introduction
Human resources are considered as a crucial part for any organization and in this era of highly competitive market, there is a need to have highly qualified human resources to achieve the goals of organization (Arthur, Bennett, & Stanush, 1998). At the same time, loyalty and commitment of human resources are also important as the (Brown, 1999) productivity is based on these factors (Eskildsen & Dahlgaard, 2000). Research studies (Cook & Wall, 1980) concluded various characteristics included in the job satisfaction of employees like; the working conditions, wages, relationship with colleagues and superiors, and the work of the organization (Shute & Gawlick , 1995). Research has shown that, employees' job performance is dependent upon their loyalty therefore all employers should take interest to improve their employees' loyalty in the interest of organization. The behavior of employers also effect employees' loyalty. This study explored the internal factors of an organization including professional respect, employer-employee relations, management style, and independence affecting employees' loyalty.
Definitions of key terms
Professional respect: The state of being honored or esteemed in a professional respect setting or work place (Andersson & Forsgren, 2002).
Loyalty: It is the ability of people to look at what is best for the organization and sometimes put the company ahead of personal, family and other considerations.
Employer-employee relation: It is the employee's relation with their management or supervisors in a working environment.
Management style: Management styles are characteristic ways of making decisions and relating to subordinates (Bilimoria & Wheeler, 1995).
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