One, the technological push may compel organizations to downsize the obsolescent workforce to reduce redundancies so as to be cost effective. The second facet relates to the opportunity pull created by the boom in the employment market which attracts the employees to seek better packages of employment by leaving the existing position. In a large scale study of what he termed employee loyalty, Rao (2006) found that job satisfaction had a curious relationship to emotional and behavioral loyalty to a company (the extent to which employees act in the best interests of the company). Defining it as a factor of "hygiene", it was discovered that low scores of employee satisfaction substantially reduced loyalty levels but high scores only marginally improved loyalty. In summary, when it comes to job satisfaction affecting employee behaviour "the penalty always seems to be high, while the reward is relatively low" (ibid. p.113).
The human resource department in any organization performs different functions like job analysis, human resource planning, recruitment, training &development apart from other administrative matters relating to employees (Redman T. and Wilkinson A., 2006). Managing culture, integration of workers is the primary function of human resource management (HRM). (Armstrong, Donald Curie, 1997) Thus HRM deals with both internal and external stakeholders of an organization (Redman and Wilkinson, 2006). The human resource management (HRM) found to be the key to build capacities of employees to attain organizational goals (Mathis & Jackson, 2006). It empowers the employees to accomplish their day to day work with proper guidance and leadership. The overall performance of employee, their relationship, the organizational culture,