The Effect of Work Involvement and Work Stress on Employee Performance: A Case Study of Forged Wheel Plant, India

ABSTRACT Rashtriya Ispat Nigam Limited (RINL) is a “Navratna Company”, Public Sector Undertaking under the administrative control of Ministry of Steel, Govt. of India. RINL is setting up Forged Wheel Plant (FWP) at Modern Rail Coach Factory, Raebareli, Uttar Pradesh based on assured off take of 80% wheels by Railways on Cost Plus model. Envisaged production capacity is one lakh forged wheels per annum. Forged Wheel Plant is increasing commitment in its employees by providing compensation, allowance, salary, training, and other welfare amenities. Organizational support and high commitment in employees is aims to avoid turnover intentions, so that the companys vision can be achieved. This study aims to analyze the influence of work involvement and job stress on employees' performance. The sample used in this study amounted to 43 permanent employees of Forged Wheel Plant , a Unit of Rashtriya Ispat Nigam Limited. The analysis technique used in this research is multiple linear regression using SPSS version 18.0. The results of this study showed that individually the variable of work involvement had significantly positive effect on employee performance at FWP, however work stress individually have a significant negative effect on employee performance at FWP. Together job involvement and work stress have a significant positive effect on employee performance. KEY WORDS: Commitment, Organizational Support, Job Involvement.