EXECUTIVE SUMMARY

Over the last year, the Indian economy has been slipping. Companies have been

shaken up and are now faced to wake up from the days of deep slumber. Now, as

the top echelons of the India Inc some to grip with the continuing recession in the

Indian economy and as the prolonged fall in demand across industries becomes

more evident, the mood is subdued. A total change of mildest has taken place, as

the chieftains of corporate India wake up and come to term with reality.

The insurance sector has also not been alienated from the effect from the effects of

widespread recession and is vying hard to cope with the ever changing environment

as well as competitive aura. As a result, the trio convergence, competitive and

consolidation, has been continuously dominating the insurance segment, and the

same phenomenon is envisaged in the forthcoming years as well.

This would however mean wider and better services for the customers. The term

‘insurance’ has now acquired a much larger meaning than just dealing with

protection. For the past few years, companies have been actively focusing on

increasing their distribution channels by introducing facilities, like Banca assurance

partners and corporate agency.

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INDUSTRY PROFILE

Insurance sector in India:

Insurance sector in India is one of the booming sectors of the economy and is

growing at the rate of 15-20 per cent annum. Together with banking services, it

contributes to about 7 per cent to the country's GDP. Insurance is a federal subject in

India and Insurance industry in India is governed by Insurance Act, 1938, the Life

Insurance Corporation Act, 1956 and General Insurance Business (Nationalisation)

Act, 1972, Insurance Regulatory and Development Authority (IRDA) Act, 1999 and

other related Acts.

The origin of life insurance in India can be traced back to 1818 with the

establishment of the Oriental Life Insurance Company in Calcutta. It was conceived

as a means to provide for English Widows. In those days a higher premium was

charged for Indian lives than the non-Indian lives as Indian lives were considered

riskier for coverage. The Bombay Mutual Life Insurance Society that started its

business in 1870 was the first company to charge same premium for both Indian and

non-Indian lives. In 1912, insurance regulation formally began with the passing of

Life Insurance Companies Act and the Provident Fund Act.

Insurance sector in India grew at a faster pace after independence. In 1956,

Government of India brought together 245 Indian and foreign insurers and provident

societies under one nationalised monopoly corporation and formed Life Insurance

Corporation (LIC) by an Act of Parliament, viz. LIC Act, 1956, with a capital

contribution of Rs.5 caror

The (non-life) insurance business/general insurance remained with the private sector

till 1972. There were 107 private companies involved in the business of general

operations and their operations were restricted to organised trade and industry in

large cities. The General Insurance Business (Nationalisation) Act, 1972 nationalised

the general insurance business in India with effect from January 1, 1973. The 107

private insurance companies were amalgamated and grouped into four companies:

National Insurance Company, New India Assurance Company, Oriental Insurance

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Company and United India Insurance Company. These were subsidiaries of the

General Insurance Company (GIC

Types of Insurance:

1. Life Insurance - Insurance guaranteeing a specific sum of money to a

designated beneficiary upon the death of the insured, or to the insured if he or

she lives beyond a certain age.

2. Health Insurance - Insurance against expenses incurred through illness of the

insured.

3. Liability Insurance - This insures property such as automobiles, property and

professional/business mishaps.

Challenges facing Insurance Industry:

Threat of New Entrants: The insurance industry has been budding with new

entrants every other day. Therefore the companies should carve out niche

areas such that the threat of new entrants might not be a hindrance. There is

also a chance that the big players might squeeze the small new entrants.

Power of Suppliers: Those who are supplying the capital are not that big a

threat. For instance, if someone as a very talented insurance underwriter is

presently working for a small insurance company, there exists a chance that

any big player willing to enter the insurance industry might entice that person

off.

Power of Buyers: No individual is a big threat to the insurance industry and

big corporate houses have a lot more negotiating capability with the insurance

companies. Big corporate clients like airlines and pharmaceutical companies

pay millions of dollars every year in premiums.

Availability of Substitutes: There exist a lot of substitutes in the insurance

industry. Majorly, the large insurance companies provide similar kinds of

services – be it auto, home, commercial, health or life insurance.

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COMPANY PROFILE

HDFC standard life insurance company Ltd. Is one of the India’s leading private life

insurance companies, which offers a range of individual and group insurance

solution? It is a joint venture between housing development Finance Corporation

limited, India’s leading housing finance institution and one of the United Kingdom.

Incorporated on 14th august 2000, it was the first life company to be granted a

certificate of registration by the IRDA on the 23rd October 2000. Both the promoters

are well known for their ethical dealings and financial strength and are thus

committed to being a long term player in the life insurance industry – all important

factors to consider when choosing your insurer. HDFC group, this is the maximum

investment allowed under current regulation.

HDFC and standard life have a long close relation built upon shared values and

trust. The ambition of standard life is to mirror the success of the parent companies

and be the yardstick by which all other insurance companies in India are measured.

VISION OF THE COMPANY

“The most successful and the admired life insurance company, which mean that we

are the most trusted company, the easiest to deal with, offer values for money, and

set the standard in the industry”

VALUES OF THE COMPANY

Values that are we observe while we work:

Integrity

Innovation

Customer centric

People care “one for all and all for one”

Team work

Joy and simplicity

MISSION OF THE COMPANY

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To be the top new life insurance company in the market. This does not just mean

being the largest or the most productive company in the market, rather it is a

combination of several things like-

Customer services of the highest order

Values for money for customers

Professionalism in carrying out business

Innovation products to cater to different needs of different customers

Use of technology to improve service standards

Increasing market share

HDFC

HDFC is India’s premier housing finance company and the enjoys an impeccable

track record in India as well as in international market. Since its inception in 1977,

the corporation has in maintained a consistent and healthy growth in its operations to

remain the clear market leader in mortgage and banking services in India. Its

outstanding loan portfolio covers over a million dwelling units. HDFC has developed

significant expertise in retail mortgage loans to different market segments and also

has a large corporate client base for its housing related credit facilities. With its

experience in the financial markets, a strong market reputation, large shareholder

base and unique consumer franchise, HDFC was ideally positioned to promote a life

insurance company in the Indian environment.

HDFC is India’s leading housing finance institution and has helped build more

than 2300000 houses since its incorporation 1977.

HDFC is rated ‘AAA’ by CRISCIL and for the 10th consecutive year.

Stable and experienced management

High services standard

Award the Economic Times corporate citizen of the year award for its long

standing commitment to community development.

STANDARD LIFE

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Standard Life UK, founded in 1825, has been at the forefront of the UK insurance

industry for 180 years by combining sound financial judgement with integrity and

reliability. The company was rated “very strong” by standard & poor’s (AA) and

“excellent” by Moody’s (Aa2)

Standard life assurance company

Standard life investment

Standard life international

Standard life health care

Standard life bank

The standard life grouper has been looking after the financial needs of customers for over 180 years.

It currently has a customer base of around 7 million people who rely on the company for their insurance, passion, investment, banking and health care needs.

Its investment manager currently administers 125 billion in assets. It is a leading pension provider in the UK, and is rated by standard &

poor’s as ‘strong’ with a rating of A+ and as ‘good’ with a rating of A1 by Mood’s

EMPLOYEE SATISFACTION:

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Employee satisfaction is the terminology used to describe whether employees are

happy and contented and fulfilling their desires and needs at work. Many measures

meaning that employee satisfaction is a factor in employee motivation, employee

goal achievement, and positive employee morale in the workplace.

As per Vroom “Employee Satisfaction is a positive orientation of an individual

towards a work role which he is presently occupying”

Employee satisfaction is a measure of how happy workers are with their job and

working environment. Keeping morale high among workers can be of tremendous

benefit to any company, as happy workers will be more likely to produce more, take

fewer days off, and stay loyal to the company. There are many factors in improving

or maintaining high employee satisfaction, which wise employers would do well to

implement.

Employee satisfaction, while generally a positive in organization, can also be a bad

luck if mediocre employees stay because they are satisfied with your work

environment.

Many experts believe that one of the best ways to maintain employee satisfaction is

to make workers feel like part of a family or team. Holding office events, such as

parties or group outings, can help build close bonds among workers. Many

companies also participate in team-building retreats that are designed to strengthen

the working relationship of the employees in a non-work related setting. Camping

trips, paintball wars and guided backpacking trips are versions of this type of team-

building strategy, with which many employers have found success.

Of course, few workers will not experience a boost in morale after receiving more

money. Raises and bonuses can seriously affect employee satisfaction, and should

be given when possible. Yet money cannot solve all morale issues, and if a company

with widespread problems for workers cannot improve their overall environment, a

bonus may be quickly forgotten as the daily stress of an unpleasant job continues to

mount.

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If possible, provide amenities to your workers to improve morale. Make certain they

have a comfortable, clean break room with basic necessities such as running water.

Keep facilities such as bathrooms clean and stocked with supplies. While an air of

professionalism is necessary for most businesses, allowing workers to keep family

photos or small trinkets on their desk can make them feel more comfortable and

nested at their workstation. Basic considerations like these can improve employee

satisfaction, as workers will feel well cared for by their employers.

The backbone of employee satisfaction is respect for workers and the job they

perform. In every interaction with management, employees should be treated with

courtesy and interest. An easy avenue for employees to discuss problems with upper

management should be maintained and discuss problem ms with upper

management should be maintained and carefully monitored. Even if management

cannot meet all the demands of employees, showing workers that they are being

heard and putting honest dedication into compromising will often help to improve

morale.

 Satisfaction = f(what employee expects, what she gets, time, back ground of

the employee- social, economic, cultural)

Satisfaction being a continuous process starts from the day 1 and gets reinforced

with time depending on the importance of the various factors considered to be

important for the individual employee. Loyalty towards the organization starts to

develop when the employee continues to get the positive reinforcements on various

important aspects for the duration of the employment.

Core Values as a Foundation of Employee Satisfaction:

These are the values that have enabled employees to build the leading company in

industry; these are the values that will fuel employees’ worldwide growth in the

coming years; and these are the values that will drive employees’ career:

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Professionalism – Demonstrating professional methods, character and

standards.  Treating prospects, clients and co-workers generously and

charitably at all times, but especially in the face of adversity.

Enthusiasm – Showing excitement, optimism and passion for your work.

Resourcefulness – Acting effectively and imaginatively to produce great

results from scarce resources.

Self-directedness – Working independently and autonomously to achieve the

goals set by management.

Ethics – Acting in accordance with the accepted principles of right and wrong

that govern the conduct of our profession.

Unselfishness – Putting others before yourself, giving your time and effort for

prospects, clients and co-workers.  Showing cooperative effort as the member

of a group to achieve a common goal.

Strategic-mindedness – Suggesting and implementing long-term

improvements springing from a sequence of short-term tasks.

THEORIE’S OF EMPLOYEE SATISFACTION

The company's ability to fulfil the physical, emotional, and psychological needs of its

employees. Satisfying the employee's all needs, so that he can give 100% to the

company. Satisfaction refers to the level of fulfilment on one's needs, desires, and

wants. It can be experienced in various levels or degrees.

Vital ingredients for any employee’s satisfaction are physical, security, social and

egoistic needs which satisfy individual’s psycho social.

1. Physical and Security need: This relates to satisfaction of bodily function like

hunger, thirst, shelter as well as to be secure in the employment.

2. Social Need: Since human beings are dependent on each other. There are

some needs which can be satisfied only when individual is recognized by

other people.

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3. Egoistic Need: This relates to man desire to mans desire to be dependant to

do things of his own end to sense of accomplishment

To a considerable extent however physical needs are satisfied off the job. Social

needs are satisfied through personal contacts around the job where egoistic needs

are chiefly satisfied through the job.

EQUITY THEORY:

Equity Theory attempts to explain relational satisfaction in terms of perceptions of

fair/unfair distributions of resources within interpersonal relationships. Equity theory

is considered as one of the justice theories. It was first developed in 1962 by John

Stacey Adams, a workplace and behavioural psychologist, who asserted that

employees seek to maintain equity between the inputs that they bring to a job and

the outcomes that they receive from it against the perceived inputs and outcomes of

others (Adams, 1965). The belief is that people value fair treatment which causes

them to be motivated to keep the fairness maintained within the relationships of their

co-workers and the organization. The structure of equity in the workplace is based

on the ratio of inputs to outcomes. Inputs are the contributions made by the

employee for the organization; this includes the work done by the employees and the

behaviour brought by the employee as well as their skills and other useful

experiences the employee may contribute for the good of the company.

The idea is to have the rewards (outcomes) be directly related with the quality and

quantity of the employees contributions (inputs). If both employees were perhaps

rewarded the same, it would help the workforce realize that the organization is fair,

observant, and appreciative. This can be illustrated by the following equation:

Inputs: Time, Effort, Loyalty, Hard Work, Commitment, Ability, Adaptability,

Flexibility, Tolerance, Determination, Enthusiasm, Personal sacrifice, Trust in

superiors, Support from co-workers and colleagues, and Skill

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Outcomes: Outputs are defined as the positive and negative consequences that an

individual perceives a participant has incurred as a consequence of his/her

relationship with another. When the ratio of inputs to outcomes is close, than the

employee should have much satisfaction with their job. Outputs can be both tangible

and intangible (Walster, Traupmann & Walster, 1978). Typical outcomes include any

of the following: Job security, Esteem, Salary, Employee benefit, Expenses,

Recognition, Reputation, Responsibility, Sense of achievement, Praise, Thanks, and

Stimuli.

EXPECTANCY THEORY (VROOM’S THEORY):

Expectancy theory is about the mental processes regarding choice, or choosing. It

explains the processes that an individual undergoes to make choices. In

organizational behaviour study, expectancy theory is a motivation theory first

proposed by Victor Vroom of the Yale School of Management.

Expectancy theory predicts that employees in an organization will be motivated when

they believe that:

putting in more effort will yield better job performance

better job performance will lead to organizational rewards, such as an

increase in salary or benefits

These predicted organizational rewards are valued by the employee in

question.

"This theory emphasizes the needs for organizations to relate rewards directly to

performance and to ensure that the rewards provided are those rewards deserved

and wanted by the recipients."

Emphasizes self interest in the alignment of rewards with employee's wants.

Emphasizes the connections among expected behaviours, rewards and

organizational goals

Vroom's theory assumes that behaviour results from conscious choices among

alternatives whose purpose it is to maximize pleasure and to minimize pain.

Together with Edward Lawler and Lyman Porter, Vroom suggested that the

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relationship between people's behaviour at work and their goals was not as simple

as was first imagined by other scientists. Vroom realized that an employee's

performance is based on individual factors such as personality, skills, knowledge,

experience and abilities.

Victor H. Vroom introduces three variables within the expectancy theory which are

valence (V), expectancy (E) and instrumentality (I). The three elements are important

behind choosing one element over another because they are clearly defined: effort-

performance expectancy (E>P expectancy), performance-outcome expectancy (P>O

expectancy).

E>P expectancy: Our assessment of the probability our efforts will lead to the

required performance level.

P>O expectancy: Our assessment of the probability our successful performance will

lead to certain outcomes.

Vroom’s model is based on three concepts:

1. Valence - Strength of an individual’s preference for a particular outcome. For

the valence to be positive, the person must prefer attaining the outcome to not

attaining it.

2. Instrumentality – Means of the first level outcome in obtaining the desired

second level outcome; the degree to which a first level outcome will lead to

the second level outcome.

Expectancy: Our assessment of the probability our efforts will lead to the required

performance level.

3. Expectancy - Probability or strength of belief that a particular action will lead to

a particular first level outcome.

Vroom says the product of these variables is the motivation.

In order to enhance the performance-outcome tie, managers should use systems

that tie rewards very closely to performance. Managers also need to ensure that the

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rewards provided are deserved and wanted by the recipients. In order to improve the

effort-performance tie, managers should engage in training to improve their

capabilities and improve their belief that added effort will in fact lead to better

performance.

MASLOW'S HIERARCHY OF NEEDS :

Maslow's hierarchy of needs is a theory in psychology, proposed by Abraham

Maslow in his 1943 paper A Theory of Human Motivation. Maslow subsequently

extended the idea to include his observations of humans' innate curiosity.

Maslow’s hierarchy of needs is most often displayed as a pyramid. The lowest levels

of the pyramid are made up of the most basic needs, while the more complex needs

are located at the top of the pyramid. Needs at the bottom of the pyramid are basic

physical requirements including the need for food, water, sleep and warmth. Once

these lower-level needs have been met, people can move on to the next level of

needs, which are for safety and security.

As people progress up the pyramid, needs become increasingly psychological and

social. Soon, the need for love, friendship and intimacy become important. Further

up the pyramid, the need for personal esteem and feelings of accomplishment take

priority. Like Carl Rogers, Maslow emphasized the importance of self-actualization,

which is a process of growing and developing as a person to achieve individual

potential.

Maslow believed that these needs are similar to instincts and play a major role in

motivating behavior. Physiological, security, social, and esteem needs are deficiency

needs (also known as D-needs), meaning that these needs arise due to deprivation.

Satisfying these lower-level needs is important in order to avoid unpleasant feelings

or consequences.

Maslow termed the highest-level of the pyramid as growth need (also known as

being needs or B-needs). Growth needs do not stem from a lack of something, but

rather from a desire to grow as a person

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There are five different levels in Maslow’s hierarchy of needs:

1. Physiological Needs: These include the most basic needs that are vital to

survival, such as the need for water, air, food and sleep. Maslow believed that

these needs are the most basic and instinctive needs in the hierarchy

because all needs become secondary until these physiological needs are met.

2. Security Needs: These include needs for safety and security. Security needs

are important for survival, but they are not as demanding as the physiological

needs. Examples of security needs include a desire for steady employment,

health insurance, safe neighbourhoods and shelter from the environment.

Social Needs: These include needs for belonging, love and affection. Maslow

considered these needs to be less basic than physiological and security needs.

Relationships such as friendships, romantic attachments and families help fulfil this

need for companionship and acceptance, as does involvement in social, community

or religious groups.

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1. Esteem Needs: After the first three needs have been satisfied, esteem needs

becomes increasingly important. These include the need for things that reflect

on self-esteem, personal worth, social recognition and accomplishment.

2. Self-actualizing Needs: This is the highest level of Maslow’s hierarchy of

needs. Self-actualizing people are self-aware, concerned with personal

growth, less concerned with the opinions of others and interested fulfilling

their potential.

3. TWO-FACTOR THEORY:

4. The two-factor theory (also known as Herzberg's motivation-hygiene theory)

was developed by Frederick Herzberg, a psychologist who found that job

satisfaction and job dissatisfaction acted independently of each other. The

theory states that there are certain factors in the workplace that cause job

satisfaction, while a separate set of factors cause dissatisfaction.

5. The two-factor, or motivation-hygiene theory, developed from data collected

by Herzberg from interviews with a large number of engineers and

accountants in the Pittsburgh area. From analyzing these interviews, he found

that job characteristics related to what an individual does — that is, to the

nature of the work he performs — apparently have the capacity to gratify such

needs as achievement, competency, status, personal worth, and self-

realization, thus making him happy and satisfied. However, the absence of

such gratifying job characteristics does not appear to lead to unhappiness a

dissatisfaction results from unfavourable assessments of such job-related

factors as company policies, supervision, technical problems, salary,

interpersonal relations on the job, and working conditions. Thus, if

management wishes to increase satisfaction on the job, it should be

concerned with the nature of the work itself — the opportunities it presents for

gaining status, assuming responsibility, and for achieving self-realization. If,

on the other hand, management wishes to reduce dissatisfaction, then it must

focus on the job environment — policies, procedures, supervision, and

working conditions. If management is equally concerned with both then

managers must give attention to both sets of job factors. Thus, satisfaction

and dissatisfaction are not on a continuum with one increasing as the other

diminishes, but are independent phenomena. This theory suggests that to

improve job attitudes and productivity, administrators must recognize and

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attend to both sets of characteristics and not assume that an increase in

satisfaction leads to decrease in un-pleasurable dissatisfaction. Instead,

dissatisfaction results from unfavourable assessments of such job-related

factors as company policies, supervision, technical problems, salary,

interpersonal relations on the job, and working conditions. Thus, if

management wishes to increase satisfaction on the job, it should be

concerned with the nature of the work itself — the opportunities it presents for

gaining status, assuming responsibility, and for achieving self-realization. If,

on the other hand, management wishes to reduce dissatisfaction, then it must

focus on the job environment — policies, procedures, supervision, and

working conditions. If management is equally concerned with both then

managers must give attention to both sets of job factors. Thus, satisfaction

and dissatisfaction are not on a continuum with one increasing as the other

diminishes, but are independent phenomena. This theory suggests that to

improve job attitudes and productivity, administrators must recognize and

attend to both sets of characteristics and not assume that an increase in

satisfaction leads to decrease in un-pleasurable dissatisfaction.

Two-factor theory distinguishes between:

Motivators (e.g. challenging work, recognition, responsibility) which give

positive satisfaction, arising from intrinsic conditions of the job itself, such as

recognition, achievement, or personal growth, and

Hygiene factors (e.g. status, job security, salary and fringe benefits) which

do not give positive satisfaction, although dissatisfaction results from their

absence. These are extrinsic to the work itself, and include aspects such as

company policies, supervisory practices, or wages/salary.

Essentially, hygiene factors are needed to ensure an employee is not dissatisfied.

Motivation factors are needed in order to motivate an employee to higher

performance, Herzberg also further classified our actions and how and why we do

them, for example, if you perform a work related action because you have to then

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that is classed as movement, but if you perform a work related action because you

want to then that is classed as motivation.

The following table presents the top six factors causing dissatisfaction and the top

six factors causing satisfaction, listed in the order of higher to lower importance.

Leading to satisfaction

Achievement Recognition Work itself Responsibility Advancement Growth

Leading to dissatisfaction

Company policy Supervision Relationship with boss Work conditions Salary Relationship with peers Security

Herzberg reasoned that because the factors causing satisfaction are different from

those causing dissatisfaction, the two feelings cannot simply be treated as opposites

of one another. The opposite of satisfaction is not dissatisfaction, but rather, no

satisfaction. Similarly, the opposite of dissatisfaction is no dissatisfaction.

DETERMINANTS OF EMPLOYEE SATISFACTION

Employee satisfaction is a multi-variable and indescribable concept. There are

number of factors that influence employee satisfaction. These factors can be

classified into two categories.

A) Organizational Variables:

The organizational determinants of employee satisfaction play a very important role.

The employees spend major part of their time in organization so there are number of

organizational factors that determine employee satisfaction of the employees. The

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employee satisfaction in the organizations can be increased by organizing and

managing the organizational factors.

1) Overall Individual satisfaction: Employees be should satisfy with the

organization as a great place to work.

2) Compensation and Benefits: This is the most important variable for employee

satisfaction. Compensation can be described as the amount of reward that a worker expects

from the job. Employees should be provided with competitive salary packages and

they should be satisfied with it when comparing their pay packets with those of the

outsiders who are working in the same industry. A feeling of employee satisfaction is

felt by attaining fair and equitable rewards.

3) Nature of Work: The nature of work has significant impact on the employee

satisfaction. Employee satisfaction is highly influenced by the nature of work.

Employees are satisfied with job that involves intelligence, skills, abilities, challenges

and scope for greater freedom. Job dissatisfaction arises with a feeling of boredom,

poor variety of tasks, frustrations and failures.

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4) Work Environment and Conditions: Employees are highly motivated with good

working conditions as they provide a feeling of safety, comfort and motivation. On

contrary, poor working conditions brings out a fear of bad health in employees.

Employees spend 6 to 8 hours at their workplace every day which makes a

workplace their second home. It is up to the employers to see and make sure that

the office is fully facilitated and is in good working order. It must be well lit and well

ventilated with the right amount of lights, fans, air-conditioning. Cleanliness is of

utmost importance as there are a huge number of workers working at a job place.

The offices, cubicles, rest area, washrooms, kitchen & serving area must be neat

and clean. The more comfortable the working environment is more productive will be

the employees.

5) Job Content: Factors like recognition, responsibility, advancement, achievement

etc can be referred to as job content. A job that involves variety of tasks and less

monotonous results delivers greater employee satisfaction. A job that involves poor

content produces job dissatisfaction.

6) Job Satisfaction: Job satisfaction is the favourableness or un-favourableness

with which employees view their work. As with motivation, it is affected by the

environment. Job satisfaction is impacted by job design. Jobs that are rich in positive

behavioural elements – such as autonomy, task identity, task significance and

feedback contribute to employee’s satisfaction. Likewise, orientation is important

because the employee’s acceptance by the work group contributes to satisfaction.

Each element of the environmental system, can attract or detract from job

satisfaction.

7) Organizational Level: The jobs that are at higher levels are viewed as

prestigious, esteemed and opportunity for self-control. The employees that are

working at higher level jobs express greater employee satisfaction than the ones

working at lower level jobs.

8) Opportunities for Promotion: Promotion can be reciprocated as a significant

achievement in the life. It promises and delivers more pay, responsibility, authority,

independence and status. So, the opportunities for promotion determine the degree

of satisfaction to the employees.

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9) Work Group: There is a natural desire of human beings to interact with others

and so existence of groups in organizations is a common observable fact. This

characteristic results in formation of work groups at the work place. Isolated workers

dislike their jobs. The work groups make use of a remarkable influence on the

satisfaction of employees. The satisfaction of an individual is dependent on largely

on the relationship with the group members, group dynamics, group cohesiveness

and his own need for affiliation.

10) Leadership Styles: The satisfaction level on the job can be determined by the

leadership styles. Employee satisfaction is greatly enhanced by democratic style of

leadership. It is because democratic leaders promote friendship, respect and warmth

relationships among the employees. On contrary, employees working under

authoritarian and dictatorial leaders express low level of employee satisfaction.

11) Communication Methods: When administrative policies and all important

announcements are communicated to the employees, it boosts their morale. The

methods chosen for communication also play an integral role. Some of the methods

that could be used are intranet, monthly newsletters, weekly meetings etc...

12) Safety measures: An employer must make sure that he provides a safe

environment to his/her employee. The security measures outside office include

security guards and parking facility. While inside the office, there must be introduced

a safe environment for male and female employees to work so that if an employee

has to work late hours she/he should feel safe and comfortable working in his/her

office. There must be no discrimination or harassment practiced and the employee

should be given equal opportunity to grow as an individual despite being male or

female.

B) Personal Variables:

The personal determinants also help a lot in maintaining the motivation and personal

factors of the employees to work effectively and efficiently. Employee satisfaction

can be related to psychological factors and so numbers of personal factors

determine the employee satisfaction of the employees

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1) Personality: The personality of an individual can be determined by observing his

individual psychological conditions. The factors that determine the satisfaction of

individuals and his psychological conditions is perception, attitudes and learning.

2) Age: Age can be described as a noteworthy determinant of employee satisfaction.

It is because younger age employees possessing higher energy levels are likely to

be having more employee satisfaction. In older age, the aspiration levels in

employees increase. They feel completely dissatisfied in a state where they are

unable to find their aspiration fulfilled.

3) Education: Education plays a significant determinant of employee satisfaction as

it provides an opportunity for developing one’s personality. Education develops and

improvises individual wisdom and evaluation process. The highly educated

employees can understand the situation and asses it positively as they possess

persistence, rationality and thinking power.

4) Gender Differences: The gender and race of the employees plays important

determinants of Employee satisfaction. Women, the fairer sex, are more likely to be

satisfied than their male counterpart even if they are employed in small jobs. The

employee satisfaction can also be determined by other factors like learning, skill

autonomy, job characteristics, unbiased attitude of management, social status etc. It

is important for managers to consider all these factors in assessing the satisfaction

of the employees and increasing their level of employee satisfaction.

HOW EMPLOYEES CAN EXPRESS THEIR DISSATISFACTION?

Top Triggers of Employee Dissatisfaction:

Ambiguity in role and responsibilities

Responsibility without accountability. If one has responsibility but no power to

take decisions or accountability one gets de-motivated as one cannot show

results or move things forward.

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Sometimes employees set too high unrealistic standards/ expectations for

themselves and that too sometimes lead to against within them. In this case if

they do not have a good mentor, it may lead to a lot of stress and pressure as

inability to achieve unrealistic goals may be due to circumstances beyond

their control.

Lack of professionalism, lack of systems and processes also leads to

employee angst.

Biased approach/favouritisms/discrimination at work

Lack of challenge in the work/lack of opportunities to move up the career

ladder

The employees sent out some signals to express their discontent and the

organization should not take it lightly.

1) Excessive absenteeism: When a regular employee suddenly begins to take

leave or is late to work, it could indicate either his personal problems or job

dissatisfaction.

2) Lack of interest: When an employee who stays at work until his job is done, now

begins to leave at sharp 5 pm no matter his job is done or not.

3) Lack of quality and quantity in work: When an employee is dissatisfied in his

job then automatically his mental state is reflected in his quality of his work.

4) Complaints by employee: Many complaints are put forward by the employee

regarding salary, benefits, working hours, working conditions etc.

5) Off the job work: Misusing the company facility for his personal use during

working hours.

6) Misbehaviour: An employee may express anger, frequent argument with

association and team member, which come out due to frustration.

Effects of Dissatisfaction:

22

Recognizing the dissatisfaction is only half the battle. The company should consider

the reason for the burnout and should try to solve those problems because it will

affect other employees also. Otherwise it will affect the company in many ways like

* Low productivity

* High employee turnover cost

* Poor employee morale

WHY IS EMPLOYEE SATISFACTION IMPORTANT?

Purpose / benefits of employee satisfaction include as follows:

1. Importance of employee satisfaction for organization

• Enhance employee retention.

• Increase productivity.

• Increase customer satisfaction

• Reduce turnover, recruiting, and training costs.

• Enhance customer satisfaction and loyalty.

• More energetic employees.

• Improve teamwork.

• Higher quality products and/or services due to more competent, energized

employees.

2. Importance of employee satisfaction for employee

• Employee will believe that the organization will be satisfying in the long run.

• They will care about the quality of their work.

• They will create and deliver superior value to the customer.

23

• They are more committed to the organization.

• Their works are more productive.

Outcome of Employee Satisfaction:

a. Satisfaction and Productivity: Satisfied employees are not necessarily more

productive. Employee productivity is higher in organization with more satisfied

employees.

b. Satisfaction and Absenteeism: Satisfied employees have few avoidable

absenteeism.

c. Satisfaction and Turnover: Satisfied employees are less likely to quit.

Organization takes actions to retain high performers and to weed out lower

performers.

d. Satisfaction and Organization Behaviour: Satisfied employees who feel fairly

treated by and are trusting of the organization are more willing to engage in

behaviours that go beyond the normal expectation of their job.

e. Satisfied employee increase Customer Satisfaction: Because they are more

friendly, upbeat and responsive. They are less likely to turnover which

helps build long-term customer relationship. They are experienced.

THE BEST HR PRACTICES THAT SUCCESSFUL COMPANIES

PRACTICE

Why are employees in some companies happy to stick with the company while

others look for a change? The reason is that some companies know how to take

good care of their employees and provide a working environment that helps them

retain their identity, while proving themselves and growing along with the company.

How Managers Attract, Hire, Focus, And Keep Their Most Talented

Employees?

24

Without satisfying an employee's basic needs first, a manager can never expect the

employee to give stellar performance. The basic needs are knowing what is

expected of the employee at work, giving him the equipment and support to do his

work right, and answering him basic questions of self-worth and self-esteem by

giving praise for good work and caring about his development as a person.

The great manager mantra is don't try to put in what was left out; instead draw out

what was left in. You must hire for talent, and hone that talent into outstanding

performance.

1. Know what can be taught, and what requires a natural talent.

2. Set the right outcomes, not steps. Standardize the end but not the means. As

long as the means are within the company's legal boundaries and industry

standards, let the employee use his own style to deliver the result or outcome

you want.

3. Motivate by focusing on strengths Motivate by focusing on strengths, not

weaknesses.

4. Casting is important, if an employee is not performing at excellence, maybe

he is not cast in the right role.

5. Every role is noble, respect it enough to hire for talent to match.

6. A manager must excel in the art of the interview. See if the candidate's

recurring patterns of behaviour match the role he is to fulfil. Ask open-ended

questions and let him talk. Listen for specifics.

7. Find ways to measure, count, and reward outcomes.

8. Spend time with your best people. Give constant feedback. If you can't spend

an hour every quarter talking to an employee, then you shouldn't be a

manager.

9. There are many ways of alleviating a problem or non-talent. Devise a support

system; find a complementary partner for him, or an alternative role.

10.Do not promote someone until he reaches his level of incompetence; simply

offer bigger rewards within the same range of his work.

11.Some homework to do: Study the best managers in the company and revise

training to incorporate what they know. Send your talented people to learn

25

new skills or knowledge. Change recruiting practices to hire for talent, revise

employee job descriptions and qualifications.

Here are some of the best HR practices that help in the creation of a highly satisfied

and motivated work for.

Work Environment

A safe and happy workplace makes the employees feel good about being there.

Each one is given importance and provided the security that gives them the

motivation and incentive to stay. This is usually achieved through internal surveys to

find out whether they are satisfied and if not what they think needs to be changed.

Open Management

Employees don’t like the feeling of being kept in the dark about what is happening in

the company. They feel motivated and develop enthusiasm only when the

management opens up to them and discusses the company policies, sales, clients,

contracts, goals and objectives. This encourages participative management. Asking

them for ideas on how to improve will get their creative juices flowing. Being open

about everything related to the company will help in building trust and motivating the

employees. This open management policy can be practiced using several tools.

Performance Incentives

Every good performance is appreciated in the form of a pat on the back, bonuses or

giving some other compensation for a job well done. Organizations that struggle to

keep up with the attrition rate are mostly those that think employees are “just” doing

26

their job. Even if it is the employee’s job, completion in an appreciable manner calls

for an incentive, and this goes a long way in boosting the staff morale. These

incentives can be implemented at the individual as well as the team level and it has

been seen that this works wonders in getting the best out of the employees. But it is

important to keep in mind that these bonuses should not be given without a reason,

unless it is a commitment for annual bonuses or some such thing. Doing so will only

reduce the perceived value of the bonuses

Performance Feedback

This is one the methods that is being followed by many organizations. Feedback is

not only taken from the boss, but also from other seniors and subordinates.

Previously, appreciation was only sought from the immediate boss or the

management, but now organizations understand the importance of collecting

performance feedback from several quarters. The opinion of everyone matters,

especially for someone who is in a leadership role at any level. Each person in the

team is responsible for giving constructive feedback. This kind of system helps in

identifying people who can perform well as leaders at higher levels in the

organization. Even the senior level managers can use this system to their

advantage, as a tool to improve themselves.

Employee Evaluation

Every company has an employee evaluation system in place but a good system links

individual performance to the goals and priorities of the organization. This works well

when achievements are tracked over a year. For a fair review of each employee, the

evaluation, apart from being done by the boss, should be done by another person at

a higher level, for whom the employee’s contribution is important. Ratings can also

27

be obtained by other employees. This ensures a fair and accurate rating of each and

every employee.

Sharing of Knowledge

Knowledge sharing is a wonderful strategy that helps in the betterment of the

employees and their work. Keep all the knowledgeable information in central

databases that can be accessed by each and every employee. For example, if an

employee is sent on some training, the knowledge that is acquired by that employee

can be stored in these databases for others to learn from it. Even innovative ideas

that the management deems fit for employees to see, can be stored here for all to

see.

Publicize Good Performances

Every company has some employees who outperform others. Such performances

should be highlighted and displayed where other employees can look at them; such

as on the display boards and intranet etc. This will encourage others to give their

best. A proper system should be set up to make a list of high performances at

specific times in a year.

Discussions

Successful organizations nurture ideas and they understand that employees who are

actually working and know the business can provide the best ideas. The

management should have discussions with employees to get these ideas out of

them. There can also be suggestion boxes to capture these ideas. Through this

system, managers can find talented employees and develop them.

Rewards

While recognition of talent is highly important, this recognition has to be made public

and what better way than holding ceremonies and announcing to the whole world

28

(the employees), the achievemen fellow employee. There can be nothing better for

an employee than the heady feeling from a resounding applause.

The Surprise Factor

Who doesn’t like a surprise? Surprise deserving employees – when they are least

expecting it. It could be a gift certificate or a small reward of some sort. This surprise

doesn’t have to be limited to the best performers, but it can be randomly given to

others as a motivating factor too. Anyone can be given this surprise reward.

Such healthy HR practices encourage the growth of the organization as employees

after all play a major role in the well-being of a company. Making an employee feel

like a million dollars pays in the form of the success of an organization.

OBJECTIVES OF THE STUDY

i. To Measure the satisfaction levels of employees on various factors and give

suggestions for improving the same.

ii. To study the relationship between the personal factors of the employee

(Gender, Designation, Qualification, Age, and Years of Service in a company)

with satisfaction level.

iii. To derive and analyze the current satisfaction level of the employees in the

company

iv. To study the various factors which influencing employee satisfaction.

SCOPES AND PURPOSE OF THE STUDY:

The study of "employee satisfaction" helps the company to maintain standards &

increase productivity by motivating the employees. This study tells us how much the

29

employees are capable & their interest at work place? What are the things still to be

satisfy to the employees. Although "human resources" are the most important

resources for any organization, so to study on employee’s satisfaction helps to know

the working conditions & what are the things that affect them not to work properly?

Always majority of done by the machines/equipments but without any manual

moments nothing can be done. So to study on employee satisfaction is necessary

The How and Why of Employee Satisfaction Mapping:

An organization is all about customer satisfaction. Companies understand this and

focus all their energy on their service or customer experience

However, many companies do this at the cost of employee experience. What does

this mean? Is customer satisfaction not the priority?

It is! But it is important not to lose sight of people who deliver the end product or

service to the customers – the employees. These are the people that need a proper

support system. Employee satisfaction is paramount as this is what will determine

the success or failure of a company. When employees are satisfied and happy about

working in an organization, the customer is the first person to notice that.

With employees getting thin-skinned every day, it depends completely on the

employer to ensure they do not have their top talent drained away by the new

competitor on the block. In the current scenario, the decision of hopping by the

employee is triggered by the minutes of issues, such as being ticked off in a not too

friendly tone or even an uneasy office environment.

It becomes important to be aware and understand the signals that are given out by

the employees. The management will do well to catch them before it is too late and

the employee makes the decision to quit. This understanding gives the employers an

edge and gives them the time to take corrective measures if necessary, in order to

prevent talent loss. It could be that the employee is not happy with the environment

or is suffering from a relationship issue with a colleague or a superior. These issues

need to be handled before they get out of hand.

30

How do employers understand their employees? How do they know what employees

want? How do they map their satisfaction levels? There are several ways of mapping

employee satisfaction.

Surveys: This is a traditional method that involves employees’ participation.

Employers create surveys that have questions on the different parameters related to

the organization. They put forth questions in such a way that every aspect of an

organization is touched and the feedback is returned in the form of an opinion given

by each employee. This helps employers understand how employees think and their

satisfaction levels, and paves the path for problem solving. These surveys can

actually identify problem areas and help come up with solutions to solve the

problems. They reveal the employee attitude on the whole.

One-on-One Interviews: A non-conventional tool, this involves discussions with

every employee on a one-to-one basis every few months. Their thoughts are

recorded and trouble parameters identified and taken care of.

Exit Interviews: This comes into action after an employee submits his resignation

papers. The problem with exit interviews is that most employees, once they decide to

leave, are not forthright. In an attempt to keep good relations with the employer, they

usually do not tell-all as they ought to. Many of them in fact give personal reasons for

leaving and make the employer feel that all is well on the work front.

Employers who fail at HR and see high attrition rate are those that consider

monetary compensation as highly important. In spite of the fact that employees work

for money, emotional rewards go a long way at keeping the employer-employee

relation strong and have a larger impact on employee satisfaction. Tracing and

improving this satisfaction level has to be top priority for the HR department of an

organization

Employee satisfaction mapping can be the key to a better motivated and loyal

workforce that leads to better organizational output in the form of better products and

services and results in overall improvement of an organization.

31

If a person is not satisfied by the job he is doing, he may switch over to some other

more suitable job. In today’s environment it becomes very important for

organizations to retain their employees. The reason may be personal or professional.

These reasons should be understood by the employer and should be taken care of.

The organizations are becoming aware of these reasons and adopting many

strategies for employee retention.

The basic needs other than routine tasks are to be taken care of on priority before

it becomes late by HR department.

RESEARCH METHODOLOGY:

The methodology followed for conducting the study includes the specification of

research design, sample design, questionnaire design, data collection and statistical

tools used for analyzing the collected data.

a RESEARCH DESIGN: The research design used for this study is of the descriptive

type. Descriptive research studies are those studies which are concerned with

describing the characteristics of a particular individual or a group.

b POPULATION: The total element of the universe from which sample is selected

for the purpose of study is known as population. The population of my research is

the employees of company.

32

c SAMPLE SIZE: All the items consideration in any field of inquiry constitutes a

universe of population. In this research only a few items can be selected form the

population for our study purpose. The items selected constitute what is technically

called a sample. Here out sample size is 50 employees from the total population to

conduct the study.

DATA & ANALYSIS:

ANALYSIS AND INTERPRETATION:

This chapter is allocated for analysis and interpretation of data. Preparing

percentage analysis, two-way table, chi-squire test and mean and combined mean

does the analysis of employee satisfaction, which is directly extracted from the

questionnaire. The variations in the extent of the employee satisfaction can be

measured with the variables such as job satisfaction, promotional opportunity,

manager/supervisor co-operation, performance appraisal, compensation etc.

CALCULATION OF SATISFACTORY SCORES:

33

The Respondents were asked to state their level of satisfaction relating to fifty

factors. Based on their responses the satisfaction score obtained by each

respondent was found out. Points or scores were allocated based on the

response. For each of the factor three levels of satisfaction were assigned

namely high, medium and low. The scores were allocated as Strongly agree =

5

Agree= 4

Neutral = 3

Disagree =2

Strongly disagree = 1

The total scores secured by each respondent were thus arrived at. All the

respondents were classified based on their level of satisfaction. Those who have

obtained up to 13 points were classified under low satisfaction category, respondents

with 14 – 20 points were classified under medium satisfaction category and those

with more than 21 points were classified under high satisfaction category.

NUMBER OF RESPONDENTS AND LEVEL OF SATISFACTION

LEVEL OF SATISFACTION NO. OF RESPONDENTS

High satisfaction 22

Medium satisfaction 18

Low satisfaction 10

TOTAL 50

34

DATA PRESENTATION WITH SIMPLE PERCENTAGE TABLE:

SIMPLE PERCENTAGE TABLE – 1:

GENDER: There is as yet no consistent evidence as to whether women are more

satisfied with their job than men, holding such factors as job and occupational level

constant. In order to know the ratio of gender among employees of company and the

difference in their level of satisfaction, the respondents were asked about their

gender.

GENDER

Gender Frequency Percentage

MALE 41 82

35

FEMALE 9 18

Total 50 100

GENDER

0102030405060708090

MALE

FEMALE

Per

cen

tag

e

INTERPRETATION:

Majority of the respondent are male (82%) and 18% respondents are female

SIMPLE PERCENTAGE TABLE – 2:

DESIGNATION: Designation of the respondents may affect the perception of

employee satisfaction. Top and middle level employees may expect much better

work life and compensation then others. According to designation the respondents

are classified into three categories as under.

DESIGNATION

Designation Frequency Percentage

TOP MANAGEMENT 04 08

MIDDLE MANAGEMENT

21 42

LOWER MANAGEMENT

25 50

36

Total 50 100

DESIGNATION

0

10

20

30

40

50

60

TOP MANAGEMENT MIDDLEMANAGEMENT

LOWERMANAGEMENT

Per

cen

tag

e

INTERPRETATION:

The above table indicates that Majority of the respondents are 50% in lower

management (i.e. Executive and Sr. Exe.), 42% is in middle management (i.e. Asst.

Manager and Manager), and 8% is in top management group.

SIMPLE PERCENTAGE TABLE – 3:

QUALIFICATION: Qualification of the respondents may affect the perception of

employee satisfaction. Highly educated may expect much better work life then

others. According to educational qualification the respondents are classified into two

categories as under.

QUALIFICATION

Qualification Frequency Percentage

POST GRADUATE 18 36

GRADUATE 32 64

Total 50 100

37

QUALIFICATION

0

10

20

30

40

50

60

70

POST GRADUATE GRADUATE

Pec

enta

ge

INTERPRETATION:

The above table indicates that Majority of the respondents are Graduates i.e. 64%

and 36% respondents are post graduates.

SIMPLE PERCENTAGE TABLE – 4:

AGE: Age is an important factor that has an influence of employee satisfaction.

Hence according to age levels the respondents are classified into three categories.

EMPLOYEE AGE

Employee Age Frequency Percentage

20 – 30 Yr 19 38

31 – 40 23 46

Above 40 Yrs 08 16

Total 50 100

38

EMPOYEE AGE

05

101520253035404550

20 – 30 Yr 31 – 40 Above 40 Yrs

Per

cen

tag

e

INTERPRETATION:

The above table indicates that Majority of the respondents i.e. 46% are in 31-40

years age group, 38% in 20-30 years age group, and 16% are in above 40 years age

group.

SIMPLE PERCENTAGE TABLE – 5:

YEARS OF EXPERIENCE: The experience of the employees in their job is another

factor affecting the perception on employee satisfaction. Highly experienced may

expect better working conditions and having less experienced satisfy with the

existing one. The respondents are classified into three categories according to their

level of experience as under:

NO. OF YEARS OF SERVICE

Yrs of Service Frequency Percentage

Below 5 Years 11 22

5 – 10 Years 18 36

39

Above 10 Years 21 42

Total 50 100

NO. OF YEARS IN SERVICE

05

101520

253035

4045

Below 5 Yr 5 – 10 Yr Above 10 Yr

Per

cen

tag

e

INTERPRETATION:

The above table indicates that Majority of the respondents i.e. 42% are in above 10

years of experience, 36% are in 5-10 years of experience, and 22% are in below 5

years of experience.

DATA ANALYSIS WITH TWO WAY TABLE

The score secured by the respondents who falls between the score as up to 13

indicates less satisfaction of the respondents, from 14 –20 are got average

satisfaction and above 21 respondents got highly satisfaction level

TWO WAY TABLE – 1:

Relationship Between Gender And Level Of Satisfaction:

GENDER LEVEL OF SATISFACTION

40

HIGHLY

SATISFIED

MEDIUM

SATISFIED

LOW

SATISFIED

TOTAL

MALE 22 (54%) 15 (37%) 4(9%) 41

FEMALE 3 (33%) 3 (33%) 3 (33%) 9

TOTAL 25 20 5 50

INFERENCE:

From the above table the percentage of highly satisfied are in male group followed

by the female group. The percentage of low satisfied is highest in female group.

TWO WAY TABLE – 2:

Relationship Between Designation And Level Of Satisfaction:

AGE LEVEL OF SATISFACTION

HIGHLY

SATISFIED

MEDIUM

SATISFIED

LOW

SATISFIED

TOTAL

TOP

MANAGEMENT

2 (50%) 1 (25%) 1 (25%) 04

MIDDLE

MANAGEMENT

10 (48%) 9 (43%) 2 (9%) 21

LOWER

MANAGEMENT

10 (40%) 10 (40%) 5 (20%) 25

41

TOTAL 22 20 8 50

INFERENCE:

From the above table the percentage of highly satisfied respondents is more in top

management group i.e. 50%. In medium satisfaction the highest percentage is in

middle management group i.e. 43%. In low satisfaction again top management group

respondents are more.

TWO WAY TABLE – 3:

Relationship between Qualification And Level Of Satisfaction:

QUALIFICATION LEVEL OF SATISFACTION

HIGHLY

SATISFIED

MEDIUM

SATISFIED

LOW

SATISFIED

TOTAL

GRADUATE 17 (53%) 12 (38%) 3 (9%) 32

POST

GRADUATE

12 (66%) 5 (28%) 1 (6%) 18

TOTAL 29 17 4 50

INFERENCE:

42

From the above table the percentage of highly satisfied is more among the

respondents of post graduate group. The percentage of medium satisfied is highest

among the respondents of graduate level group. And the percentage of low

satisfaction is highest among the graduate level group i.e. 9%.

TWO WAY TABLE – 4:

Relationship Between Employee Age And Level Of Satisfaction:

EMPLOYEE

AGE

LEVEL OF SATISFACTION

HIGHLY

SATISFIED

MEDIUM

SATISFIED

LOW

SATISFIED

TOTAL

20 – 30 Yrs 9 (47%) 6 (32%) 4 (21%) 19

31 - 40 Yrs 10 (43%) 12 (52%) 1 (5%) 23

Above 40 Yr 4 (50%) 3 (38%) 1 (12%) 08

TOTAL 23 21 6 50

INFERENCE:

43

The above table reveals that the percentage of highly satisfied is in the above 40

Years age group (50%) and 43 % of highly satisfied in the 31-40 Years age group.

And in medium satisfaction 52% is the highest percentage in 31-40 Years age group

and followed by Above 40 Years age group with 38% of satisfaction. The highest

percentage of 21% in low satisfaction is in 20-30 Years age group.

TWO WAY TABLE – 5:

Relationship Between Experience And Level Of Satisfaction:

EXPERIENCE LEVEL OF SATISFACTION

HIGHLY

SATISFIED

MEDIUM

SATISFIED

LOW

SATISFIED

TOTAL

Below 5 Yrs 4 (36%) 4 (36%) 3 (28%) 11

5 – 10 Yrs 11 (61%) 6 (33%) 1 (6%) 18

Above 10 Yrs 9 (43%) 10 (48%) 2 (9%) 21

TOTAL 24 20 6 50

44

INFERENCE:

The above table reveals that the respondents having 5-10 Years of experience have

derived highest satisfaction level with 61%. The percentage of medium satisfaction is

high in the category of Above 10 Years group i.e. 48%. And in low satisfaction level

the percentage of Below 5 Years of experience is high i.e. 28%.

DESCRIPTIVE STATISTICS TABLE (COMBINED MEAN)

The tables below show the combined mean of the perceived value of employee

satisfaction in relation with factors described. Higher the score, better the

satisfaction of the particular factor.

Sr. No.

Factors Combined Mean

Remarks

A1 COMPANY CULTURE 3.96 Excellent

A2 COMPANY POLICY AND ACTIVITIES 4.03 Excellent

A3 WORK PLACE AND ENVIRONMENT 4.21 Excellent

A4 COMMUNICATION 4.07 Excellent

45

A5 TRAINING AND DEVELOPMENT 3.80 Good

A6 PERFORMANCE APPRAISAL 3.84 Good

A7 COMPENSATION 3.62 Good

A8 MANAGER/SUPERVISOR CO-OPERATION 3.85 Good

A9 JOB SATISFACTION 4.05 Excellent

A10OPPORTUNITY FOR PROMOTION/ CAREER PROSPECTUS 3.84 Good

INTERPRETATION:

The average Employee Satisfaction for the total respondents is 3.93 which indicate

that the employees are relatively satisfied with the various services being catered by

the company. It can be attributed to the fact that the company caters to the various

needs of the employees. It also shows that employees are not satisfied in

Compensation Area (Mean-3.62) compare to all areas. Similarly other areas must be

taken care by company are Training and Development (Mean–3.80), Performance

Appraisal and Opportunity for Career Prospectus (Mean-3.84), Manager/ Supervisor

Co-operation (Mean-3.85). Total respondent shows that employees are more

satisfied in Work Placement and Environment (Mean-4.21) followed by

46

COMBINED MEAN VALUE OF FACTORS

3.964.03

4.21

4.07

3.803.84

3.62

3.85

4.05

3.84

3.30

3.40

3.50

3.60

3.70

3.80

3.90

4.00

4.10

4.20

4.30

FACTORS

ME

AN

A1 A2 A3 A4 A5 A6 A7 A8 A9 A10

Communication Area (Mean–4.07), Job Satisfaction (Mean–4.05), Company Policy

(Mean–4.03) and Company Culture (Mean–3.96).

CONCLUSION:

Research shows that satisfied employees are more efficient and productive so they

positively influence organizational performance and work towards fulfilment of

company’s objectives and goals. Good Company Culture, Company Policies,

Convenient Work location, Communication , job satisfaction, opportunities for

promotion and career prospects, fair salary are few area which are critically

important from the view point of most of the employees.

47

In conclusion, several themes emerged from the overall result of the survey. The

cause of concern here is that employees have indicated that they need more for their

compensation and from their superiors. Based on the results as a whole, without

significant and meaningful improvement in Compensation, Manager/Supervisor Co-

operation, Training and Development, Performance Appraisal and Opportunity for

career and promotion, the company’s current climate could eventually erode the

employee’s outlook and eventually their commitment to doing their job.

The good news is that employees seem ready and willing to offer their insight and

constructive ideas on how to improve their area within company. They are highly

satisfied with Company Culture, Company Polices, Work Place and Environment

where they are work, Interpersonal Communication in a company and more

important is satisfied by job they are doing.

Employees have an average mean of 3.93 which indicates that the employees are

relatively satisfied with the various services being catered by the company. Major

concern areas are Compensation, Training and Development, Performance

Appraisal, Manager/Supervisor Co-operation and Opportunity for career and

promotion.

The study on employee’s satisfaction at Panasonic Energy India Co. Ltd. is cased

out with full co-operation of the employees and management. As far as possible with

in the given limits the study is completed with the satisfaction of many peoples. The

data collected are analyzed scientifically. It is assured that the company may get

high boosted moral in the organization provided some of the recommendations made

in the report are carried out.

Further from this survey I hope the organization will be benefited and with the

help of the recommendations given the organization can improve its functioning and

the overall employee satisfaction level in the organization and its performance will

increase.

48

RECOMMENDATIONS

To improve employee satisfaction, company should do followings in areas

needs improvement:

COMPENSATION (PAY AND BENEFITS):

- Benchmark rates of pay with other companies who compete in the same labor

market. Make adjustments, if you are behind the market i.e. analyze industry trend

and according to trend change in pay structure.

49

- Increase communication/education why the need to have the difference if there is

no plan of standardization.

- Ensure that your employees recognize the value of their total package (bonus

opportunities, health cover, sick pay etc) not just basic pay.

- Offer retention bonuses instead of sign-on bonuses. Retention packages could be

designed to raise the salaries of technologists who become credentialed in additional

specialty areas, obtain additional education or take on more responsibility. Sign-on

bonuses encourage technologists to skip from job to job, while retention packages

offer incentives for staying.

Training sessions for supervisors and managers, regular communication session

during recruiting, hiring, and follow-up during supervisory-staff meeting

-Implement grade and base pay structure, pay-for-performance management

systems for annual increment and bonus distribution.

-Conduct effective exit interviews.

TRAINING AND DEVELOPMENT:

- Review approach to induction.

- Review approach to training and development.

- Train managers to more effectively train, coach and develop their teams.

- Improve infrastructure of training department.

- Outsource some of the training specially related to IT which need experience IT

trainer with practical exposure.

- Use Training Need Analysis and ask each of the head of the department to act

according to the guidelines given by HRD and send only employees who need desire

skills to improve competency for job.

50

- Managers should utilize one-to-one employee meeting to develop and coach their

staff.

- Implement smart training that is not only relevant but helps broaden employee

experiences and provides development opportunities.

- Accurately defined the employee’s job description, the skills most important to the

job, discuss the job skill the employees perform well and identify areas that meet

improvement, set mutual and worthwhile goals and coach to improve employee

performance.

MANAGER/SUPERVISOR CO-OPERATION:

-Demonstrate to employees that the company cares about them, wants them to

advance in their careers and will help them satisfy their need for personal growth.

-‘Walk the talk’ by not only communicating the corporate strategy but also ensuring

that it is applied consistently throughout the company, including making the reward

system consistent with strategic goals.

-Watch for and eliminate all inconsistencies between promoting a belief in

employees and managerial behaviour or policies that undermines the commitment.

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-Top management to clearly explain responsibilities and expectations regularly

stress the importance of “hard and soft skills” and hold supervisors accountable for

developing in these areas.

- A good employee/manager relationship is critical to employee satisfaction. Make

sure your managers are not driving technologists away. Give them the training they

need to develop good supervisory and people-management skills.

- Weed out poor managers because many employees leave their jobs because they

are unhappy with their bosses – remember “people don’t leave their jobs, they leave

their managers”.

PERFORMANCE APPRAISAL:

- Ensure that your appraisal system is in place and working well.

- Implement 360 degree appraisal system so that from top to bottom everyone

included giving feedback for an employee

- Encourage your employees to contribute to the success of the business. Ask for

their opinions and suggestions.

- Introduce a suggestion scheme to get ideas on how the business could be

improved. Reward the good ones.

- Encourage your line managers to 'catch people doing things right' and give positive

feedback when people do things well.

- Conduct regular performance reviews to identify employees' strengths and

weaknesses, and help them improve in areas that will lead to job advancement.

OPPORTUNITY FOR PROMOTION AND CAREER:

- Provide employee well defined career paths (including succession plan), mentors

and tuition remuneration for job-related education.

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- Provide employee a clear professional development plan gives employees an

incentive to stick around.

- Train supervisors in coaching and performance management skills.

- Implement a good promotion process, “soft skills” training development before and

after promotion.

- Implement job rotation method so that every employee can get an opportunity to

access other department and understand responsibilities and problems face by other

departments.

- Top management identifies employees and prepares them for next higher position

by providing necessary training and education.

- Identify your employees' talents and then encourage them to stretch their abilities

into new areas.

OTHER RECOMMENDATIONS:

- Give employees the best equipment and supplies possible. Ensure that your

equipment is properly maintained, and regularly upgrade machinery, computers and

software. In addition, provide employees with the highest quality supplies you can

afford.

- Show your employees that you value them. Recognize outstanding achievements

promptly and publicly, but also take time to comment on the many small

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contributions your staffs makes every day to the organization's mission. Don't forget

— these are the people who make you look good.

- Be flexible. Today's employees have many commitments outside their job, often

including responsibility for children, aging parents, chronic health conditions and

other issues. They will be loyal to workplaces that make their lives more convenient

by offering on-site childcare centres, on-site hair styling and dry cleaning, flexible

work hours, part-time positions, job-sharing or similar practices.

- Make room for fun. Celebrate successes and recognize when milestones are

reached. Potluck lunches, birthday parties, employee picnics and creative contests

will help remind people why your company is a great place to work.

- Reduce the paperwork burden. If your technologists spend nearly as much time

filling out paperwork, it's time for a change. Paperwork pressures can add to the

stress and burnout that employees feel. Eliminate unnecessary paperwork; convert

more paperwork to an electronic format; and hire non-tech administrative staff to

take over as much of the paperwork burden as is allowed under legal or regulatory

restrictions.

- Foster an environment of teamwork. It takes effort to build an effective team, but

the result is greater productivity, better use of resources, improved customer service

and increased morale

LIMITATIONS

Each and every task has certain limitations and hurdles in the course of its

performance. But this does not mean that the task should stick up whenever certain

limitations come up. The need is to try one’s level best to solve incoming limitations.

Few limitations of the project are enumerated below:

This study is only limited to this company.

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The method of random sampling is suitable for small populations only.

To create good image, respondents may give responses vary from the facts.

Some respondents hesitated to give the actual situation; they feared that

management would take any action against them.

It does not ensure proportionate representation to all constituent group of

population.

I was able to cover only those employees who were currently working in the

company.

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QUESTIONNAIRE

Employee Satisfaction Survey

Company Name: HDFC Standard life insurance

Department: Qualification:

Designation: Sex (M / F):

No. Of Years of Service: Age:

Please take a few minutes to complete this survey. You are the person who can give

us fair guidance without any bias. Based on your personal experience in this

organisation, please fill this form to help us building our organization much better &

professional. Share your views by putting a “√ " mark in the boxes against each

question

S.N. Statement Ratings

5 4 3 2 1

A1 COMPANY CULTURE

1

The top management of this organization makes effort to identify and utilize the potential of the employee.

2

Top Management shows genuine interest in the well being of all employees and even support them during personal emergencies.

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3Employees are encouraged to suggest new ideas about their work.

4

Weaknesses of employees are communicated to them in a non-threatening way.

5In this organization, difference of opinion with seniors is taken positively.

A2 COMPANY POLICY AND ACTIVITIES

6Employees are encouraged to participate in making decision which affects their work.

7

The company provides excellent benefits and welfare facilities for the employees and their families.

8

Delegation of authority to encourage juniors to develop handling higher responsibilities is quite common here.

9

People lacking competence in doing their jobs are helped to acquire competence rather than being left unattended.

10Management takes sincere efforts to identify and utilize employee’s full potential.

A3 WORK PLACE AND ENVIRONMENT

11

The psychological climate in this organisation is very conducive to any employee interested in developing himself by acquiring new knowledge & skills.

12 I believe that the work atmosphere is friendly.

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13 I feel I can trust what company tells me.

14I am encouraged to experiment and try out new / creative ideas.

15 My working environment is satisfactory.

A4 COMMUNICATION

16Management communicates its goals & strategies effectively to its employees.

17

I get all information about the events and affairs of the company which have an effect on my work.

18I am kept informed about the activities that go on in my organization.

19I have a good understanding about the company’s various benefit plans/schemes.

20 I am satisfied with communications generally.

A5 TRAINING AND DEVELOPMENT

21We have good Training & Development infrastructure and facilities.

22I have received all the training I need to effectively carry out my job.

23

Every employee is given a fair chance, by the head of the concerned department to attend the workshops and training programs.

24Company provides as much initial training as needed.

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25 Employees take training seriously and learned.

A6 PERFORMANCE APPRAISAL

26

Performance appraisal reports in our organisation are based on objective assessment and adequate information.

27My performance for every year is reviewed and discussed with me.

28

The management periodically provides feedback on the good and the bad aspects of an employees work and where he/she must improve, by way of performance appraisal.

29 I feel my services are well recognized.

30 My appraisal helps me in planning for the future.

   

A7 COMPENSATION

31

I agree that the Company’s compensation package matches similar organizations in the industry.

32I feel, I am paid fairly considering my qualification, experience, and responsibilities.

33I am rewarded fairly considering my dedications and performance on the job given to me.

34All the allowances and advances are provided on time.

35Individual initiative is encouraged in the Company.

   

A8 MANAGER/SUPERVISOR CO-OPERATION

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36My Manager/Supervisor communicates my weaknesses and helps me in overcoming them.

37My Manager/Supervisor gives appreciation to good work done by me promptly.

38My Manager/Supervisor encourages my development...

39My Manager guides me and prepares me for future responsibilities.

40 My manager always treats me with respect.

   

A9 JOB SATISFACTION

41 I am trusted to do my job.

42 I am provided adequate facilities to do my job.

43I am clearly informed about what exactly is expected of me regarding my work.

44 I feel totally secure in this job.

45My job is a good use and application of my skills, experience and qualifications.

   

A10 OPPORTUNITY FOR PROMOTION / CAREER PROSPECTUS

46I have opportunities for advancement in my current organization.

47I have access to opportunities in different areas within my organization.

48I am happy with the formal career planning that happens in my workplace.

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49 My present work will help me grow in my career.

50If I do good work, I can count on career growth in the Company.

   

Date: ___________

Thanks for your valuable time and response

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BIBLIOGRAPHY

K. Aswathappa: Human Resource Management, 5th edition, Tata McGraw-Hill

Companies, New Delhi.

L.M. Prasad: Principles and Practice of Management, 6th edition, Sultan

Chand & Sons, New Delhi.

C R Kothari : Research Methodology – Methods and Techniques, 2nd Edition ,

New Age International Publishers

S.P. Gupta : Statistical Methods, 36th edition, Sultan Chand & Sons, New

Delhi

Stephen Robbins : Essentials of Organizational Behaviour, Prentice Hall

International Edition

First, Break All The Rules (What The World's Greatest Managers Do

Differently by Marcus Buckingham & Curt Coffman )

- Reviewed by Regine P. Azurin and Yvette Pantilla

Internet Sites

o www.humanresource.hrvinet.com

o www.hrblogs.com

o hrmba.blogspot.com

o www.citehr.com

o www.wikipedia.org

o www.search.ebscohost.coms

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