Employee Loyalty– A Comparison between Private Sector and Public Sector in India

This paper aims to study the subject of employee loyalty and organizational commitment with focus on the differences between the Private Sector and Public Sector organizations in India. Taking reference of TAMS (Turnover Attachment Motive Survey) the following forces were identified Affective Forces, Alternative Forces, Behavioral Forces, Calculative Forces, Normative Forces, Moral Forces, Contracted Forces, Constituent Forces. A questionnaire where in each of these forces were considered by way of number of questions on likert scale was sent to private sector and public sector organizations. The data was analyzed using factor analysis and cluster analysis. It was found that in the areas of Affective Forces, Alternative Forces, Behavioral Forces – Tangible Cost of Living, Behavioral Forces – Behavioral Inertia, Psychological Costs, Normative Forces (Family) and Constituent Coworker - Normative there were differences between private sector and public sector employees while in other areas there were similarities in both the sectors. More comprehensive study with larger sample size (in both public sector and private sector) is needed be carried out to validate our conclusions. We have done survey this study in one public sector undertaking organization only and hence the cross section of the public sector undertakings could not be studied. The paper gives us a direction towards the identification of the forces which improve loyalty and hence strengthening these forces would enable companies to reduce attrition.