JOB SATISFACTION LEVEL OF EMPLOYEES AT SUBWAY FRANCHISES IN LAHORE, Pakistan

BUSINESS RESEARCH METHODS
JOB SATISFACTION
LEVEL
OF
EMPLOYEES
AT SUBWAY
FRANCHISES IN
LAHORE
10
CHAPTER 1
INTRODUCTIO
N
11
EXECUTIVE SUMMARY
The purpose of this project is to know about the effect of different factors on
the job satisfaction level of employees. For this purpose we selected fast food
restaurants in Lahore to obtain necessary data and its analysis.
With the completion of this project we have learned that how job satisfaction
level varies and its impacts on the organization.
A job is a role, and work is the means to fulfill that role. One of the important
factors behind every successful organization is its employees. Every organization
understands the importance of experienced and good employees. Therefore, it is very
important to retain such employees and ensure they are happy in their current jobs.
The Job satisfaction of such employees plays very important role in achieving an
Organizational effectiveness.
Job satisfaction is considered to one’s feeling or state of mind regarding the

nature of their work. It can only come if the role is clear, and the person is guided and
developed to fulfill that role. It benefits the organization including reduction in
complaints and criticism, absenteeism and turnover as well as it improve punctuality
and worker confidence. Therefore, job satisfaction should be determined after a careful
organization analysis, environment and culture of an organization.
Job satisfaction levels in fast food restaurants are being judged at all the levels
of the organization. The higher level of satisfaction in employees helps the company to
achieve the goals effectively and efficiently.
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INTRODUCTION AND
BACKGROUND OF THE
TOPIC
The purpose of this study is to understand the job satisfaction level in fast food
restaurants and the factors that affect the employee’s level of job satisfaction in fast
food restaurants of Lahore.
Food is essential for human beings. Fast food is food that can be prepared and
served very quickly as well as sold ready to eat from the outlets. The fast food
restaurants are the specific type of restaurant characterized both by its fast food
cooking and by minimum table service. Today’s fast food restaurants are growing
rapidly throughout the world to serve the consumers. In Pakistan, fast good industries
are growing rapidly despite the immeasurable regulatory challenges. The fast food
restaurants in Pakistan relying heavily on the changing target age group and related
increase in employment of women.
Some of the fast food industries in Pakistan are:
 McDonalds
 KFC
 Pizza Express
 Pizza Hut
 Subway
 AFC
 Yasir brost
Due to the growing competition these fast food restaurants have to focus on
each and every process specially the satisfaction of their employees because job
satisfaction is a concept which emphasizes that employees are the asset of the
company and therefore their satisfaction is very important. The job satisfaction is:
“A positive emotional state resulting from

Evaluating one’s job experience
So, by understanding the job satisfaction level of employees in fast food

restaurants, we are able to understand the favorableness or un-favorableness of
employees about his/her works in fast food restaurants.
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• PROBLEM STATEMENT
We want to know about the satisfaction level of the employees working at fast
food restaurants specially Subway so that we can better asses their level of
involvement in their jobs.
The Problem statement is:
“Job satisfaction level”
• RESEARCH QUESTION:
The research questions are:
What are the factors that affect the job satisfaction level of employees at Subway
franchises in Lahore?
• RESEARCH OBJECTIVES AND RESEARCH VARIABLES:
The following are the research objectives and its variables:
1. We want to know about the demographics of the employees.

Age, Gender, Income, Education, Family Size, Occupation, City, Years in
Current Job
2. We want to know about the general working conditions.

Hours Worked, Flexibility in Scheduling, Location of Work, Sick Leave
Offered, level of Autonomy
3. We want to know about the compensation policies of an organization.

Salary, Promotion Opportunities, Benefits, Rewards, Bonuses, Recognition for
Work Accomplished, Overtime benefits, Medicinal Facilities, Leaves Policy
4. We want to know about the work relationships of employees.

Co-Workers, Supervisors, Subordinates, Recognition, Employees Value
5. We want to know about the opportunities regarding personal proficiency.

Opportunity to Utilize Skills, Opportunity to Utilize Talents, Opportunity to
Learn New Skills, Additional Training and Education, Autonomy,
Management Support
6. We want to know about job activities of McDonald employees.
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Task Variations, Work Independence, Periodic Changes in Duties,

Responsibility
7. We want to know about the recreational facilities for the employees.

Outdoor Sports, Indoor Competitions, Trips
8. We want to know about employee’s future expectation regarding their job.

Rewards, Incentives, Promotion, Job Security, Personal Growth
9. We want to know about the employee perception about his job.

Job Prestige, Job Security, Resources sufficiency, job timings content
10. We want to know about the working environment.

No. of Employees, Rules and Regulations, Space, Hygiene, Parking Space
• RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem.

So, to identify and classify the factors which are of importance for the satisfaction and
dissatisfaction of employees in fast food restaurants of Lahore, the following research
methodology was employed in the study.
 DATA AND DATA COLLECTION METHODS:
We will collect both secondary data and primary data for our research information.
 Secondary Data:
We used secondary data to support our research and understand the major
factors of the problem. We have collected it from different sources to study the other
researcher’s point of views so that we have the clear understanding of the topic.
 Primary Data:
We also collected the primary data in an efficient manner. We surveyed the

employees in fast food restaurants of Lahore to support our study in a manner that it
provides practical and current findings for our research.
There are two stages for primary data collection method. The first stage was a
pilot research to examine reliability and validity instrument. The second stage was the
actual research. The data for this research was obtained through self-administered
questionnaire from the students of University of Management and Technology. The
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main concern for the researcher in this research is that the respondents must be
employees in fast food restaurant of lahore.
This method applied two-step process to obtain a good response rate. First, we
brought questionnaires to all selected franchises. In each franchise, we will meet
respondents (i.e., employees) and will inform them about the survey and try to give
questionnaires to employees directly. The Second method is we contacted those
respondents in 3 to 4 days in order to obtain questionnaires.
The non-response or response errors from the respondents were considered in

this data collection method. The questionnaires were assuring the errors from the
respondents. In order to obtain good response rate, questionnaires were also provided
from respondents.
 MEASUREMENT METHODS:
The methods we use to measure the factors affecting the job satisfaction level
are “Self Administered” questionnaire. The instrument for this research is taken from
multiple items especially through internet and from previous job satisfaction studies.
We use the five point Likert scale, dichotomous and unforced choice questions. We
employed and modified the questionnaires based on the results of the pilot study so the
reliability and validity of the survey questionnaire would increase and the
questionnaire look more manageable. Also, our instrument is relatively short
questionnaire so that it can be easily understandable to the respondents. Overall
questions are fully structured.
 SAMPLING PLAN:
The sampling plan of our research is:
 Population:
The population of Subway restaurants in Lahore is approx. 1000 employees
consisting of males and females.
 Sampling Unit:
The sampling unit in this report is any current employee of Subway franchises
who is available for selection at some stage of sampling process
 Sample Size:
Sample size refers to the total number of respondents targeted for collecting the
data for the researcher. The sampling size of our study is 40 respondents. The
respondent should be the employee of Subway in Lahore.
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 Sampling Methods:
Since it is difficult to contact the entire population therefore sampling
technique was adopted. The general goal of this sampling method is to obtain a sample
that is representative of the target population. For our analysis, we engaged in “Non
probability sampling method” under which we employed the technique of
“Convenience Sampling”.
• LIMITATIONS OF RESEARCH
There are some of the limitations which affect the research. These limitations are:
 Time and money was major limitation, which may affect the study.
 Some of the respondents are reluctant to share information.
 The study conducted is limited to an organization only.
• SCOPE OF THE STUDY
This study emphasis in the following scope:
 This study is helpful to Subway for conducting further researches.

 It is helpful to identify the employer’s level of satisfaction towards Subway
 This study is helpful to the organization for identifying the area of
dissatisfaction of job of the employees.
 This study helps the manager to make managerial decisions for the company
and for the welfare of employees.
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• TIME SCHEDULE:
In order to manage our business research management project on “the job
satisfaction level of employees at Subway in Lahore”, we divided our project into
activities that are further broken down into tasks (e-g task 1, task 2 etc) and these tasks
are then assigned time durations. Similarly, we made up a Gantt chart to get a better
idea of our time schedule so that we manage our activities in a better way.
The following activities are represented by their respective task numbers.
Task 1= Discussions (this involves the complete plan of how we will proceed in
what direction and what job will be assigned to whom)
Task 2 = Preparing questionnaires (in order to use it as our research instrument)
Task 3= Travelling to different branches of McDonalds (to take sample and
discussion)
Task 4 = Collecting responses (through the filling of questionnaires)
Task 5 = Organizing the data collected
Task 6 = Analyzing the responses
Task 7 = Preparing the final report
Task 8 = Submitting the project
Duration
Tasks Start date End Time
(days)
task 1 12/20/2009 4 12/24/2009
task 2 12/26/2009 2 12/28/2009
task 3 12/27/2009 2 12/29/2009
task 4 12/28/2009 3 12/31/2009
task 5 12/29/2009 1 12/30/2009
task 6 1/1/2010 2 1/3/2010
task 7 1/2/2010 3 1/5/2010
task 8 1/4/2010 1 1/5/2010
The Gantt chart is:
• COST SCHEDULE:
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In order to see whether the project is cost effective or not, the following costs
should be taken into consideration.
Paper, print, binding and photocopy cost (for questionnaires) = 1000

Fuel cost (the transportation expense) = 700
Refreshment cost (e-g tea, coffee, snacks) = 1000
Cellular phone expenses (in order to have communication regarding project matters) =
500
Electricity Cost (like preparing report on computer and sending emails) = 500
Thus the total approximated cost is Rs 3700.
Cost schedule:
Paper, print and photocopy cost: 600

Fuel cost : 700
Refreshment cost: 1000
Cellular phone expenses: 500
Electricity cost: 500
Total Cost 3300
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CHAPTER 2
INTRODUCTIO
N
OF THE
INDUSTRY
20
INTRODUCTION OF THE
INDUSTRY
Fast food refers to a food which can be prepared and served quickly. It is one
of the world’s largest growing food types. Fast food may include chips,
pasties, sandwiches, burgers, kebabs, pizzas, chicken, soups, and salads. It also
includes drinks, for instance, milkshakes, and soft drinks.
In today’s world, fast food is become a fashion because people not only eat but
also enjoy the environment over there. It now accounts for roughly half of all
restaurant revenues in the developed countries. In 2006; the global fast food market
grew by 4.8% and reached a value of 102.4 billion and a volume of 80.3 billion
transactions. The fast food restaurants were first appeared in America in 1921 and
started with the selling of hamburger within 5 scents. After that a lot of fast food
restaurants were open to offer a wide variety of meals and in a short period of time for
customers. Some of the fast food restaurants with their market share in the world are:
fastfoodrestuarants
Pizzarestaurants Burger restaurants
Sandwich restaurants Other
10%
33%
26%
31%
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In Pakistan, most fast food franchises have been established in just the past 12
or 13 years and have proven to be very popular. McDonald is the first fast food
restaurant in Pakistan. Some of the other major fast food restaurants in Pakistan are
KFC Restaurant, Mac Donald, Pizza hut, Subway, One potato two potato, Hardees and
domino’s pizza and many more. These fast food restaurants have a very significant
effect on the Pakistani economy as shown:
Name of 2001 Food Number of Type of Food Purchasing

Restaurant Sales($million) Outlets
KFC 0.84 30 American Direct, Dealers

Pizza Hut 0.78 9 American Direct, Dealers
Bundu Khan 0.56 5 Pakistan Direct
McDonald’s 0.42 20 American Direct, Dealers
These sales is increasing continuously as they are now making “value” meals for
children that are increased in portion sizes.
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CHAPTER 3
INTRODUCTION
OF THE
ORGANIZATION
UNDER
STUDY
23
INTRODUCTION OF THE
ORGANIZATION UNDER
STUDY
There are many organizations in fast food industry. The organization we chose
to study among them is Subway. Subway started off back in 1965, by Fred DeLuca, in
North America. [1]. It is owned and operated by Doctor's Associates, Inc. (DAI). It is a
restaurant franchise that primarily sells submarine sandwiches and salads back in
1984, Subway took its enterprise outside the boundaries of North America, when it
opened its very first franchise in Bahrain. Since then, Subway extended itself around
the world. [2]
At present, Subway has 32,271 franchises, spread across 91 countries, as of

January 01, 2010. Subway, with its wide-spread network, is termed as, “largest single-
brand chain restaurant” worldwide [1]. Furthermore Subway has been ranked no.1 by
Entrepreneur Magazine twice and is the second largest restaurant operator globally
after Yum! Brands. [3]
Currently, with its 28 franchises, Subway is operating across four cities of

Pakistan, those are, “Karachi, Lahore, Islamabad, and Sialkot”. Some of the franchises
are under construction and are not operating yet [4]. The detail of Subway franchises
in Pakistan is demonstrated through following table:
Cities Operating franchises Currently not opened

Karachi 10 1
Lahore 16 4
Islamabad 1 1
Sialkot 1 0
Jhelum 0 1
Multan 0 2
Gujranwala 0 1
Total 28 10
Subway has always been positioned as healthy food provider, targeting health
conscious clique. But yet it is classified as “fast food restaurant”, so it has a direct
competition with all fast food restaurants.
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CHAPTER 4
INTRODUCTION
OF THE MAJOR
COMPETITORS IN
THE INDUSTRY
25
INTRODUCTION OF THE
MAJOR COMPETITORS
The success of fast food industry in advanced countries has greatly

influenced the food industry in the developing world and Pakistan is no exception.
Though there are many foreign and local brands operating in the Pakistani market but
the following few are the major players of the industry.
 Pizza hut
 KFC
 McDonald
 AFC
 Hardees
 Fri Chicks
• McDonald:
McDonald's Corporation is the world's largest chain of fast food restaurants. In

USA, McDonald’s Corporation is the ninth most valuable brand in the world. In
McDonald franchises, only 15% of the total is owned by the McDonald and the
remaining 85% is operated by franchises. In Pakistan, it entered in September 1998
with its first restaurant in the city of Lahore. McDonald is currently operating in seven
major cities with a network of 20 restaurants and has investment of over Rs. 30 billion
in the country. All McDonald's restaurants in Pakistan offer a standard menu, which
comprises of food items such as hamburgers, cheeseburgers, chicken sandwiches,
French fries, salads, milk shakes, desserts and ice cream sundaes. And because of its
fast food products, it is one of the major competitors of Subway.
• KFC:
KFC (Kentucky Fried Chicken) is a chain of fast food restaurants based in

Louisville, Kentucky .KFC fast-food chains are currently under the restaurant division
of PepsiCo Incorporated. It is located in 25 countries with more than 36,000 locations
around the world and is one of the most renowned world gastronomic brand names
KFC is the first fast food restaurant in Pakistan. It opened its first outlet on Gulshen-e-
Iqbal Karachi in 1997. Presently KFC is branched out in nine major cities of Pakistan
(Karachi, Hyderabad, Lahore Islamabad, Rawalpindi, Sialkot, Multan, Peshawar,
Faisalabad, Gujranwala, Jehlum, Sukkur, Murree) with more than 60 outlets nation-
wide. Its Annual turn over in Pakistan is about 2.5 billion. At the beginning it targets
upper class but now they are also providing meals for lower class. All KFC franchises
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provides the ultimate chicken meals for the Chicken Loving Nation and it has been
constantly introducing new products and opening new restaurants for its customers.
• AFC (Al-Najam Fried Chicken):
AFC started in Pakistan when no middle class family could think of buying
such big food chains. It opened its first market in Samanabad, Lahore. Now, AFC has
more than twenty branches nationwide. Some of them include Mall Road, Railway
Station, Allama Iqbal Town, Twonship, Mughalpura, Defence, Thokar Niaz Baig,
G.T. Road and Wapda Town. With in local competitors, it is now considered as the
fastest growing fast food chain in Pakistan and the best alternate to KFC. AFC always
try to make the quality good for people who are unable to afford other fast foods.
• HARDEES:
Hardees are the fast food restaurants who were established in America in 1960.
It is considered as forth largest fast food chain and is operating in 14 countries around
the world included Pakistan. In Pakistan, The first branch of Hardees is located on
M.M Alam road the major competitive edge of Hardees is its thick juicy patties of
meat in burgers that are bigger than fast food burgers.
• PIZZA HUT:
Pizza Hut is a global fast food chain, a subsidiary of Yum! Brands, Inc. It is
probably the world's largest restaurant company with approximately 34,000
restaurants, delivery-carry out units, and kiosk in over 100 countries. Yum! Brand
introduced Pizza Hut delivery service in 1986. Their market share was 46.6% in 1996,
when they launched their campaign “The Best Pizzas under One Roof” which battered
slowly over the years due to tough market competitors.
This first national pizza chain of America started its operations in Pakistan in
1993 with a single outlet at Boat Basin, Clifton, Karachi. Now it is operating in 10
cities of Pakistan at present i-e .Karachi, Hyderabad, Lahore, Islamabad, Rawalpindi,
Murree, Sialkot, Peshawar, Faisalabad, Multan. It somewhat caters to the high income
segment therefore developing a niche as an upscale fast food restaurant. In Pakistan
the chain is considerably more expensive as compared to the local fast food outlets.
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• FRI CHICKS:
It is basically a foreign fast food restaurant and started in Kentish town,
London. In Pakistan, they have been working here since 2003 and have many outlets
in Lahore which includes Iqbal Town, Hohar Town, Sabzazar, Akbar chowk, Sadr and
in Fortress. In Fri chick they have dine in, take away and home delivery services. They
have several deals with the normal price rate. Chicken finger also known as chicken
tenders or chicken strips, this is one of the most common forms of fried chicken,
Chicken nuggets , Hot chicken - a pan-fried variant of fried chicken coated with lard
and cayenne pepper paste, Popcorn chicken — occasionally known as chicken balls .
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CHAPTER 5
LITERATURE
REVIEW OF
RELEVENT
ISSUE
29
LITERATURE REVIEW
The study of job satisfaction is a relatively recent phenomenon. It represents

the collection of person’s attitude towards or about the job. According to Goodman et
al Job satisfaction is degree to which an individual feels positively or negatively about
his or her job. [1] Locke (1976) defined job satisfaction as “A pleasurable or positive
emotional state resulting from the appraisal of one’s job or job experience.”[2] That is,
it is the inconsistency between what an employee values and what the situation
provides. Smith et al. (1969, p.6) suggested that “Job satisfaction are feelings or
affective responses to facets of the situation.”[2]. Dawis and Lofquist (1984) defined
job satisfaction as the result of the worker’s assessment of the degree to which the
work environment fulfills the individual’s needs. [3]
Equity Theory, Need-Fulfillment Theory, Social Comparison Theory, Facet-

Satisfaction Model, and Job Characteristics Model suggest that job satisfaction is
influenced by the variety of factors. According to Maslow, job satisfaction can be
achieved by fulfilling Physiological needs, Safety needs, Social needs, Esteem needs
and Self-Actualization.[4] According to Philip Apple job satisfaction is achieved
through attitude towards work group, company and supervisors, general workings
conditions and monetary benefits[5]. It is also observed through Bernal et. al. (2005)
research that the level of job satisfaction is determined by four factors: economic
aspects, interpersonal relations, working conditions, and personal fulfillment [6]. The
individual’s health, age, level of aspiration, social status and political and social
activities can all contribute to job satisfaction. Research also indicates that a high level
of job satisfaction does have a positive impact is reducing turnover, absenteeism,
tardiness accidents, grievances and strikes.
The industrial and business sectors of various countries specially developing

countries including Pakistan are facing the problem of job dissatisfaction among the
employees and high rate of turnover. According to Judge, Thoresen, Bono, & Patton
one of the most researched areas in the field of Industrial / Organizational psychology
is job satisfaction. Employers have a need to keep employee from leaving and going to
work for other organizations. Recent research evidences generally rejects the more
popular view that job satisfaction is influenced by salary rather the evidences suggest
it is influenced by variety of factors such as kind of supervision, organization policies
& administration, & quality of life etc
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CHAPTER 6
DATA
ANALYSIS
31
DATA ANALYSIS
INTRODUCTION:
Data analysis is the process of inspecting data with the goal

of highlighting useful information
The data available in the self administered survey questionnaire regarding the
job satisfaction level includes its level of satisfaction regarding its job, co-workers,
and supervision, pay and promotional opportunities. The data includes some personal
information as Age, Income, Education, Experience, Gender and Marital Status of the
respondent. The data also includes the designation of the employee and the branch and
department in which the employee is working.
To analyze the data we apply different tools and SPSS on the variables.
AVERAGE SATISFACTION LEVEL:
For analyzing the average satisfaction level we have sum up the satisfaction
level regarding the job, co-workers, supervision, pay and promotional opportunities of
individual respondents and than found the average satisfaction level. The graphical
and tabular representation of “average satisfaction level” of subway employees is as
follow:
Satisfaction
Valid 28
N
Missing 0
Mean 19.0357
25 16
Percentiles 50 18.50
75 22
INTERPRETATION:
32
From the table we can see that the mean is 19.0357 which means that the
average satisfaction level of employees in Subway Franchises is 19.0357
The quartiles depicts that satisfaction level below “16” will be considered as
lower satisfaction level with respect to subway employees. The satisfaction level
above “22” will represent the higher satisfaction level. Similarly, the range between
these two ends (16-22) is the average satisfaction level of subway employees. The
graph also shows that in subway most of employee’s satisfaction level is 16 out of 25,
as the length of the bar at 16 being the highest. Our analysis on graphical and tabular
representation infers that the mean satisfaction level (of subway employees) lies
between the lower and upper quartile which means that overall the employees have
moderate level of satisfaction.
HYPOTHESIS TESTING FOR MEAN:
As our analysis shows that Subway employees average satisfaction level falls
between 6-22 . So, to prove significance of our analysis we apply the hypothesis test.
QUESTION TO BE ADDRESSED:
Whether average satisfaction level falls between upper and lower quartile or not?
STEPS FOR HYPOTHESIS TESTING:
To make our data presentable, we give the ranges to our data. The range
between16 – 22 is recoded as 1 and all the other values are recoded as 2.
Now, the Null hypothesis, alternative hypothesis and decision rule are given as follow:
µ =2
µ≠2
P values < α, reject Ho. Otherwise, do not reject Ho
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SOLUTION
One-Sample Test
Test Value = 2
Recoded Satisfaction
t df Sig. (2-tailed)
Level
-3.576 27 .001
INTERPRETATION:
The level of significance or P value (.001) < alpha (0.05) so we reject null
hypothesis, which shows that average satisfaction level of employees is not outside the
range of 16 – 22 or we can say that we are 95 % sure that the average satisfaction level
of Subway employees falls between 16 - 22 . So consequently, the hypothesis testing
goes in the favor of our claim.
EMPLOYEE SATISFACTION LEVEL AND AGE:
Age has been found to have a direct relationship with employee’s satisfaction
level. In some groups job satisfaction is higher with increasing age, in other groups job
satisfaction is lower and in other there is no difference at all.
CALSSIFICATION OF AGE:
The survey questionnaires filled by different respondents includes different age

groups. For our data analysis, we have classified age into five ranges:
 Up to 20 years
 21 – 25 years
 26 – 30 years
 31 – 35 years
 Above 35 years
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FREQUENCY OF AGE GROUPS:
The frequency of these age groups is given as:
From the above chart, it is clear that in our survey questionnaire out of 28
approx. 3 respondents are up to 20 years, 13 respondent’s lies between 21 – 25 years,
11 respondent’s lies between 26 – 30 years and 1 respondents lies between 31 – 35
years.
HYPOTHESIS TESTING WITH RESPECT TO AGE:
Now, we analyze the age groups and satisfaction level of employees to see the level of
significance between them. For this we apply the hypothesis testing.
STATEMENT:
To see the level of significance between the age groups and average job satisfaction.
To make our data presentable, we give the ranges to our satisfaction level data. The
range between16 – 22 is recoded as 1 and all the other values are recoded as 2.
35
µ =2
µ≠2
SOLUTION
One-Sample Test
Test Value = 2
Age of the Respondent Sig. (2-tailed)

upto 20 years Recoded Satisfaction
.423
Level
21-25 years Recoded Satisfaction
.082
Level
26-30 years Recoded Satisfaction
.038
Level
INTERPRETATION:
For the age group up to 20 years the level of significance or P value (0.423) >
alpha (0.05) so we do not reject null hypothesis, which means that the level is
insignificant between the age group up to 20 years or the level of satisfaction may be
above 22 or below 16 but it does not between 16-22.
For the age group 21 - 25 years P value (0.082) > alpha (0.05) so we do not
reject null hypothesis, which means that the level is insignificant between 21 – 25
years age group or the level of satisfaction may be above 22 or below 16 but it does
not between 16-22.
For the age group 26 - 30 years P value (0.038) < alpha (0.05) so we reject
null hypothesis, which means that the level of satisfaction is significant and we are 95
% sure that the Subway employees (26 – 30 years) satisfaction level falls between16–
22 also this age group employees are more satisfied as its significance value is more
closer to 1.
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EMPLOYEE SATISFACTION LEVEL AND INCOME:
Most of the workers felt satisfied when their income is well. The relative
importance of income would probably changing factor in job satisfaction or
dissatisfaction.
To measure the job satisfaction level of employees regarding their income we classify
the income (Rupees) as:
 Below 10,000
 11,000 – 15,000
 16,000 – 20,000
 21,000 – 25,000
 Above 30,000
GRAPHICAL REPRESENTATION:
This chart determines the From the above chart it is shown that out of 28
approx. 17 respondents fall below Rs. 10,000, 5 respondents fall between Rs. 11,000 -
Rs. 15,000 and 3 respondents fall between Rs. 21,000 - Rs. 25,000
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HYPOTHESIS TESTING WITH RESPECT TO INCOME:
Now, we analyze the income and satisfaction level of employees to see the
level of significance between them. For this we apply the hypothesis testing.
STATEMENT:
To see the level of significance between the income of the respondent and average job
satisfaction
To make our data presentable, we give the ranges to our satisfaction level data.
The range between16 – 22 is recoded as 1 and all the other values are recoded as 2.
µ =2
µ≠2
SOLUTION
One-Sample Test
Test Value = 2
Income of the Respondent
Sig. (2-tailed)
Below Rs. 10,000 Recoded Satisfaction Level .041

Rs. 11,000 - Rs. 15,000 Recoded Satisfaction Level .178
38
INTERPRETATION:
Since the P value (0.041) is less than α (0.05) therefore, we reject null
hypothesis in case income level below Rs. 10,000 which means that the level of
satisfaction is significant and we are 95 % sure that the Subway employees (Below
10,000 income) satisfaction level falls between16–22.
For the income level between Rs. 11,000 - Rs. 15,000 , the P value(0.178)>
alpha(0.05) so we do not reject null hypothesis , which means that the level of
satisfaction is insignificant for the employees whose income is between income level
of Rs 11,000 - Rs. 15,000 . Their level of satisfaction may be above 22 or below 16
but it will not between16-22.
For the income level between Rs. 16,000 - Rs. 20,000, the P value(0.184)>
satisfaction is insignificant for the employees whose income is between income level
of Rs 16,000 - Rs. 20,000. Their level of satisfaction may be above 22 or below 16 but
it does not between 16-22.
For the income level between Rs. 21,000 - Rs. 25,000, the P value(0.432)>
satisfaction is highly insignificant for the employees whioes income is between
income level of Rs 21,000 - Rs. 25,000. Their level of satisfaction may be above 22 or
below 16 but it does not between 16-22.
EMPLOYEE SATISFACTION LEVEL AND EDUCATION:
Education and job satisfaction has a direct relationship. Most of the employees fell
satisfied when their education and nature of job is well. For our analysis, to measure
the job satisfaction level of employees regarding their education we classify the
education as:
 Less then intermediate

 Intermediate
 Graduate
 Masters
 Others______________
39
From the above chart it is shown that out of 27 approx. 10 respondents fall
below intermediate level, 11 respondents’ falls in intermediate level, similarly 3
respondents fall in graduate level and 3 falls in Masters Level.
HYPOTHESIS TESTING WITH RESPECT TO EDUCATION:
Now, we analyze the education and satisfaction level of employees to see the
level of significance between them. For this we apply the hypothesis testing.
STATEMENT:
To see the level of significance between the education of the respondent and average
job satisfaction
µ =2
µ≠2
SOLUTION
40
One-Sample Test
Test Value = 2
Education of the Respondent
Sig. (2-tailed)
Less then Intermediate Recoded Satisfaction Level .168

Intermediate Recoded Satisfaction Level .082
Graduate Recoded Satisfaction Level .184
Masters Recoded Satisfaction Level .423
INTERPRETATION:
For the employees whose education less than intermediate, the P value
(0.168)> alpha (0.05) so we do not reject null hypothesis, which means that the level
of satisfaction is insignificant for the employees whose education is less than
intermediate. Their level of satisfaction may be above 22 or below 16 but it does not
between 16-22.
For the employees whose education falls in intermediate level , the level of
significance or P value (0.082)> alpha(0.05) so we do not reject null hypothesis ,
which means that the level of satisfaction is insignificant for the employees whose
education falls in intermediate level. Their level of satisfaction may be above 22 or
below 16 but it is not between 16-22.
Similarly we can see that the employees whose education falls in graduate
level, P value (0.184)> alpha (0.05) so we do not reject null hypothesis and lastly for
the employees whose education falls in Master level, the level of significance or P
value (0.432)> alpha (0.05) so we do not reject null hypothesis, which means that the
level of satisfaction is insignificant for the employees whose education falls in Master
level. Their level of satisfaction may be above 22 or below 16 but it does not between
16-22.
41
42
EMPLOYEES SATISFACTION LEVEL AND EXPERIENCE:
Education also effects the job satisfaction. Researches shows that mostly
employees show higher satisfaction at the middle of their job experience but to
measure the job satisfaction level of employees regarding their experience we classify
the experience level as:
 Less than 1 year

 1-5 years
 5-10 years
 Above 10 years
From the above chart it is shown that out of 28 approx. 8 respondents fall in
the category of less than 1 year experience, 16 falls between 1-5 years experience and
only 4 respondents’ falls between the categories of 5-10 year experience.
43
HYPOTHESIS TESTING WITH RESPECT TO EXPERIENCE:
Now, we analyze the experience and satisfaction level of employees to see the level of
STATEMENT:
To see the level of significance between the experience of the respondent and average
job satisfaction
To make our data presentable, we give the ranges to our satisfaction level data.
The range between16 – 22 is recoded as 1 and all the other values are recoded as 2.
µ =2
µ≠2
SOLUTION
One-Sample Test
Test Value = 2
Experience of the Respondent
Sig. (2-tailed)
Less than 1 year Recoded Satisfaction Level .351

1 - 5 years Recoded Satisfaction Level .004
5 - 10 years Recoded Satisfaction Level .391
INTERPRETATION:
44
For the respondents whose experience is less than 1 year , the P value(0.351)>
satisfaction is insignificant for the employees whales experience is less than 1 year.
Their level of satisfaction may be above 22 or below 16 but it does not between 16-22.
For the employees whose experience falls between 1-5 years, the level of
significance or P value (0.004) < alpha (0.05) so we reject null hypothesis, which
means that the level of satisfaction is significant for the employees experience falls
between 1-5 years or we are 95% % sure that the Subway employees (between 1 – 5
years experience) job satisfaction level falls between16–22
The employees whose experience is between 5-10 years shows P –value

(.0391)> alpha (0.05) so we do not reject null hypothesis , which means that the level
of satisfaction is highly insignificant for the employees whose experience is between
5-10 years. Their level of satisfaction may be above 22 or below 16 but it does not
between 16-22.
EMPLOYEE SATISFACTION LEVEL AND GENDER:
Males and females employees have different level of satisfaction regarding their jobs.
To measure the job satisfaction level of employees we took 28 respondents.
45
This chart shows in our survey questionnaire out of 28 approx. 3 respondents are
female and 25 respondents are male.
HYPOTHESIS TESTING WITH RESPECT TO GENDER:
Now, we analyze the gender and satisfaction level of employees to see the level of
STATEMENT:
To see the level of significance between the gender and average job satisfaction
µ =2
µ≠2
SOLUTION
One-Sample Testa
Test Value = 2
Gender of the Respondent
Sig. (2-tailed)
Male .001
Level
INTERPRETATION:
For males, the level of significance or P value (0.001) < alpha (0.05) so we
reject Ho which shows that the level of satisfaction is significant or we can say that we
are 95% sure that the male satisfaction level falls between 16 – 22.
46
EMPLOYEE SATISFACTION LEVEL AND MARITAL STATUS:
Marital status also has an important role in deciding the job satisfaction. To
measure the job satisfaction level of employees according to their martial status in our
survey questionnaire we took 28 respondents.
This chart shows in our survey questionnaire out of 28 approx. there are 17
respondents whose marital status is single and there are 11 respondents whose marital
status is married. There is no respondent with divorced marital status.
HYPOTHESIS TESTING WITH RESPECT TO MARITAL STATUS:
Now, we analyze the gender and satisfaction level of employees to see the level of
STATEMENT:
To see the level of significance between the gender and average job satisfaction
47
µ =2
µ≠2
SOLUTION
One-Sample Test
Test Value = 2
Marital Status of the Respondent
Sig. (2-tailed)
Single .041
Level
Married .016
Level
INTERPRETATION:
The data analysis shows, the respondents who are single their P value (0.041) <
alpha (0.05) so we reject Ho which shows that the level of satisfaction is significant or
we can say that we are 95% sure that the respondents whose marital status is single
falls in the satisfaction level between 16 – 22.
Similarly the respondent whose marital status is married shows that their P
value (0.016) < alpha (0.05) and their level of satisfaction is also significant. Over all
the results of married respondents are more significant then respondents whose marital
status is single.
48
EMPLOYEE SATISFACTION LEVEL AND DEPERTMENT:
For our data analysis, we take different departments of subway to measure the job
satisfaction level of employees we classify the departments into three different
categories. As:
 Operation
 Management
 Accounts
From the above chart it is shown that out of 28 approx. 6 respondents belongs to
management department, 20 belongs to operation department and only 2 respondents
belongs to accounts department.
49
HYPOTHESIS TESTING WITH RESPECT TO DEPARTMENT:
Now, we analyze the employees in different departments and their satisfaction level, to
see the level of significance between them. For this we apply the hypothesis testing.
STATEMENT:
To see the level of significance between the departments of subway in which the
employees are working and job satisfaction level
µ =2
µ≠2
SOLUTION
One-Sample Test
Test Value = 2
Department of Subway
Sig. (2-tailed)
Management .076
Level
Operations .021
Level
Accounts .500
Level
50
EMPLOYEE SATISFACTION LEVEL AND BRANCHES:
For our data analysis, we take different branches of subway to measure the job
satisfaction level of employees we categorize the branches as
 Faisal Town
 Gulberg
 Garden town
 Main Boulevard
 Pico road
 DHA (H- Block)
 DHA (Y- Block)
 DHA (T- Block)
From the above chart it is shown that out of 28 approx. 5 respondents belongs to
Faisal Town branch, 3 belongs to Gulberg, 3 belongs to garden town, 5 belongs to
main boulevard, 5 belongs to Pico road, 5 belongs to DHA (H- Block), 1 belong to
DHA (Y- Block) and 1 respondent belongs to DHA (T- Block)
HYPOTHESIS TESTING WITH RESPECT TO DEPARTMENT:
51
Now, we analyze the employees in different branches and their satisfaction level, to
see the level of significance between them. For this we apply the hypothesis testing.
STATEMENT:
To see the level of significance between the branches of subway in which the
employees are working and average job satisfaction
µ =2
µ≠2
SOLUTION
One-Sample Testa
Test Value = 2
Branch of Subway Sig. (2-tailed)

Main boulevard Recoded Satisfaction
.070
Level
Pico Road Recoded Satisfaction
.178
Level
DHA (H-Block) Recoded Satisfaction
.070
Level
52
INTERPRETATION:
In survey Questionnaire data, branch of Main Boulevard and DHA (H-Block)

shows that the P-Value (0.70) < alpha (0.05) so we reject Ho which shows that in
Main Boulevard and DHA(H-Block) Branch, the employees satisfaction level is
significant or we can say that we are 95% sure that these respondents falls in the
satisfaction level between 16 – 22.
The branch of Pico Road shows that the P-Value (0.178) > alpha (0.05) so we
do not reject null hypothesis , which shows that in Pico road Branch, the employees
satisfaction level is insignificant and their level of satisfaction may be above 22 or
below 16 but it does not between 16-22.
The department of Accounts shows that the P-Value (0.500) > alpha (0.05) so
we do not reject null hypothesis, which means that the level of satisfaction is highly
insignificant for the employees who are in accounts department. Their level of
satisfaction may be above 22 or below 16 but it does not between 16-22.
EMPLOYEE SATISFACTION LEVEL AND DESIGNATION:
The designation of employees matters a lot when measuring job satisfaction level. So
for data analysis we notice different designation of subway employees to measure the
job satisfaction level of them. We categorize the designations as
 Manager
 Sandwich artist
 Shift in charge
 Accountant
 Supervisor
From the above chart it is shown that out of 28 approx. 5 respondents are
managers, 19 respondents are shift in charge, 1 respondent is shift in charge, 2 are
accountant and only 1 respondent is supervisor.
53
HYPOTHESIS TESTING WITH RESPECT TO DESIGNATIONS:
Now, we analyze the employees in different designations and their satisfaction level,
to see the level of significance between them. For this we apply the hypothesis testing.
STATEMENT:
To see the level of significance between the designations of employees in and job
satisfaction level
µ =2
µ≠2
SOLUTION
One-Sample Testa
Test Value = 2
Designation in Subway
Sig. (2-tailed)
Manager .070
Level
Sandwich Artist .010
Level
54
INTERPRETATION:
In survey Questionnaire data, manager designation shows that the P-Value

(0.70) > alpha (0.05) so we do not reject null hypothesis , which shows that at
managers designation, the employees satisfaction level is insignificant and their level
of satisfaction may be above 22 or below 16 but it does not between 16-22.
Similarly, sandwich artist designation shows that the P-Value (0.10) > alpha
(0.05) so we do not reject null hypothesis , which shows that at sandwich artist
designation, the employees satisfaction level is insignificant and their level of
satisfaction may be above 22 or below 16 but it does not between 16-22.
CROSS TABULATION OF SATISFACTION LEVEL, BRANCH,

DEPARTMENT AND DSSIGNATION:
For data analysis, we use cross tabulation to measure the satisfaction level of
employee in a specific branch, department and designation. Our analysis shows:
 An employee working in the operations department of Subway has the

satisfaction level of 12 and is in Main Boulevard branch.
 Employee working in the branch of Main Boulevard in the department of

Management and Accounts has the job satisfaction level of 15.
 One of the employees working in the management department in Garden

Town, 2 employees working in operations department of Main boulevard
Subway branch and 2 employees at Faisal Town and 1 at Pico Road working in
the department of operations has the satisfaction level of 16.
 From the branch of Faisal Town and Gulberg 1 employee respond respectively
to this questionnaire working in the operations department have job satisfaction
level of 17.
 1 employee at Faisal Town branch working in operations department and 1

from the Accounts department of Gulberg has level of satisfaction of 18.
 1 employee of Pico branch working in the operation department has the

satisfaction level of 19.
 From Fiasal Town and Gulberg 1 employee responds working in operation

department has Job satisfaction level of 20. 1 employee of Garden town and
55
DHA (H-Block) respectively working in the accounts department also have the
satisfaction level of 20.
 1 respondent of DHA (H-Block) working in operation department has

satisfaction level 21.
 1 employee From DHA(Y-Block) and 1 from Pico Road respond working in

operation department has Job satisfaction level of 22.
 1 employee of Pico Road working in management department has the

satisfaction level of 23 and 1 from DHA (H-Block) working in the department
of operations has the job satisfaction level of 23.
 An employee in operation department working in the DHA (T-Block) branch

has satisfaction level of 24.
 An employee of operation department working in Pico Branch has the level of

satisfaction 25.1 employee from management department and 1 from the
operation department also has the satisfaction level of 25.
FACTOR ANALYSIS:
Factor analysis is used for the prioritizing the factors which leads toward the higher
job Satisfaction level of the employees of Subway
Component Matrix
Component
1
All in all, I am satisfied with the work of my job. .882
All in all, I am satisfied with my co-workers. .935
All in all, I am satisfied with the supervision. .804
All in all, I am satisfied with my pay (total wages and tips). .851
All in all, I am satisfied with the promotional opportunities. .510
After running the factor analysis we come to know that the satisfaction level of the
employees at Subway become high if the Management of Subway focuses on hiring
friendly people and have friendly environment at subway.
The table of component matrix shows that the value of the factor All in all I am
satisfied with the co-workers is 0.935 which is higher among other values which
represents that the employees job satisfaction will enhance with their co-workers.
56
RELIABILITY AND VALIDITY:
According to the sample size, there were 28 respondents Reliability Statistics

who filled the questionnaire and in return we got the 100% response
Cronbach's
from them. The validity or strength of the data is 100% and there
Alpha N of Items
was no barred data measured during our analysis. If we measure the
reliability of the data, we can see that alpha is 0.809 and shows .809 5
approximately 81% of the reliability in its internal consistency.
57
CHAPTER 7
FINDINGS
58
FINDINGS
Through running SPSS and analyzing that result we find that:
The number of respondents:
Strongly Neither agree Strongly

Disagree Agree Total
Statements Disagree nor agree
(N) (N) (N)
(N) Disagree(N) (N)
All in all, I am
satisfied with the 1 2 18 7 28
work of my job
All in all, I am
satisfied with my co- 1 18 9 28
worker
All in all, I am
satisfied with the 2 1 17 18 28
supervision
All in all I am
3 9 2 9 5 28
satisfied with my pay
All in all I am
satisfied with the
8 4 12 4 28
promotional
opportunities
 The average satisfaction level of Subway employees range 16-22.
 The Subway employees (26 – 30 years) satisfaction level falls between16–22
 The Subway employees (Below 10,000 income) satisfaction level falls

between16–22
 The level of satisfaction is significant for the employees experience falls

between 1-5 years.
 The male satisfaction level falls 16 – 22.
 The respondent whose marital status is single or married falls in the

satisfaction level 16 – 22.
59
 The level of satisfaction of employees in operation and management

department is significant which means that these respondents’ falls in the
satisfaction level 16 – 22.
From "most" to "least", we have found out the factors, which are meant to be the
reason of satisfaction for employees at subway.
Employee satisfaction graph with respect to variables
Component 1
Satisfaction factor jo b
c o w o rk e r s
1 0.9 su p e r - pa y
v isi o n
All in all, I am satisfied with the 0.8
.882
work of my job. 0.7
p r o m tio n a l
All in all, I am satisfied with my 0.6
a c tiv itie s
.935
co-workers. 0.5
0.4
All in all, I am satisfied with the
.804
supervision. 0.3
0.2
All in all, I am satisfied with my
.851 0.1
pay (total wages and tips).
0
All in all, I am satisfied with the
.510 1
promotional opportunities.
 The top reason for the satisfaction of employees at subway is their "satisfactory
terms" with co-workers.
 The second, third, and the fourth factor nourishing the satisfaction in
employees at subway are; "job, pay, and supervision respectively".
 The least supporting factor for satisfaction, as per employees feed back is, "the
promotional opportunities.
60
CHAPTER 8
RECOMMANDA
TION
61
RECOMMANDATION
The recommendations are:
 Growth and advancement is one of the major concerns of the employees. An

employee at subway doesn’t seem to be much satisfied with promotional
opportunities. The management should provide the employees with sufficient
promotional opportunities. This will make them feel that they are being
recognized by the company and this will be a motivating factor for them.
 Some of the respondents are not satisfied with their supervision. Their seems to
be a need of more friendly supervision at work which will enable employees to
participate in the tasks with greater interest and thus the objectives of the
organization will be met in a better way.
 Another factor that needs to be worked on by the organization is the pay

structure because employees don’t seem to be entirely satisfied with that even.
So another structure could be devised that offer employees more than what
they are currently receiving.
 From among all other, though the employees seem to be having a good
relationship with their fellow employees, but there is always room for a better
environment and a better rapport among employees so this should not be
ignored too. Good relationships create positive synergy and this affects the
output too.
62
CONCLUSION:
It was a great learning experience, in terms of “research conduct and data

analysis”. The over all picture of employee satisfaction (at subway) seemed to be
satisfactory. Out of our observation, through this experience, we can consequently
state that employees at subway were reluctant to give their feedback. All, except some
of the areas, need improvement in order to enhance the satisfaction level of employees.
First and foremost area of consideration is “promotional opportunities”. Some people
also disagreed being satisfied with their salary package.
63
Reference :
1. http://en.wikipedia.org/wiki/Subway_(restaurant)#cite_note-20
2. http://world.subway.com/Countries/frmMainPage.aspx?CC=AFG
3. http://www.subway.com/subwayroot/index.aspx
4. http://world.subway.com/Countries/frmLocatorResult.aspx?
CC=PAK&LC=ENG&Mode
5. http://www.scribd.com/doc/22108379/A-Study-About-Gender-Education-
Level-Salary-And-Job-Satisfaction
6. http://www.scribd.com/doc/24839933/Literature-Review-Final
7. http://www.emeraldinsight.com/Insight/ViewContentServlet?
Filename=Published/EmeraldFullTextArticle/Articles/0500190701.html
8. http://en.wikipedia.org/wiki/Maslow's_hierarchy_of_needs
9. http://www.scribd.com/doc/13489923/Job-Satisfaction-Study-State-Bank-of-
India-in-Coimbatore-City
10. http://www.emeraldinsight.com/Insight/ViewContentServlet;jsessionid=895A2
3580F6316DE28A8C114C969EA10?
Filename=Published/EmeraldFullTextArticle/Pdf/0530200405.pdf
64

JOB SATISFACTION LEVEL OF EMPLOYEES AT SUBWAY FRANCHISES IN LAHORE, Pakistan

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JOB SATISFACTION LEVEL OF EMPLOYEES AT SUBWAY FRANCHISES IN LAHORE, Pakistan

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BUSINESS RESEARCH METHODS

Job satisfaction is considered to one’s feeling or state of mind regarding the

Some of the fast food industries in Pakistan are:

“A positive emotional state resulting from

So, by understanding the job satisfaction level of employees in fast food

“Job satisfaction level”

The research questions are:

• RESEARCH OBJECTIVES AND RESEARCH VARIABLES:

The following are the research objectives and its variables:

1. We want to know about the demographics of the employees.

2. We want to know about the general working conditions.

3. We want to know about the compensation policies of an organization.

4. We want to know about the work relationships of employees.

5. We want to know about the opportunities regarding personal proficiency.

6. We want to know about job activities of McDonald employees.

Task Variations, Work Independence, Periodic Changes in Duties,

7. We want to know about the recreational facilities for the employees.

8. We want to know about employee’s future expectation regarding their job.

9. We want to know about the employee perception about his job.

10. We want to know about the working environment.

Research methodology is a way to systematically solve the research problem.

 DATA AND DATA COLLECTION METHODS:

We also collected the primary data in an efficient manner. We surveyed the

The non-response or response errors from the respondents were considered in

The sampling plan of our research is:

• SCOPE OF THE STUDY

This study emphasis in the following scope:

 This study is helpful to Subway for conducting further researches.

The Gantt chart is:

Paper, print, binding and photocopy cost (for questionnaires) = 1000

Thus the total approximated cost is Rs 3700.

Paper, print and photocopy cost: 600

Total Cost 3300

Name of 2001 Food Number of Type of Food Purchasing

KFC 0.84 30 American Direct, Dealers

At present, Subway has 32,271 franchises, spread across 91 countries, as of

Currently, with its 28 franchises, Subway is operating across four cities of

Cities Operating franchises Currently not opened

The success of fast food industry in advanced countries has greatly

McDonald's Corporation is the world's largest chain of fast food restaurants. In

KFC (Kentucky Fried Chicken) is a chain of fast food restaurants based in

• AFC (Al-Najam Fried Chicken):

The study of job satisfaction is a relatively recent phenomenon. It represents

Equity Theory, Need-Fulfillment Theory, Social Comparison Theory, Facet-

The industrial and business sectors of various countries specially developing

Data analysis is the process of inspecting data with the goal

AVERAGE SATISFACTION LEVEL:

HYPOTHESIS TESTING FOR MEAN:

STEPS FOR HYPOTHESIS TESTING:

P values < α, reject Ho. Otherwise, do not reject Ho

EMPLOYEE SATISFACTION LEVEL AND AGE:

The survey questionnaires filled by different respondents includes different age

FREQUENCY OF AGE GROUPS:

The frequency of these age groups is given as:

HYPOTHESIS TESTING WITH RESPECT TO AGE:

STEPS FOR HYPOTHESIS TESTING:

Age of the Respondent Sig. (2-tailed)

EMPLOYEE SATISFACTION LEVEL AND INCOME:

HYPOTHESIS TESTING WITH RESPECT TO INCOME:

STEPS FOR HYPOTHESIS TESTING:

Below Rs. 10,000 Recoded Satisfaction Level .041

EMPLOYEE SATISFACTION LEVEL AND EDUCATION:

 Less then intermediate

HYPOTHESIS TESTING WITH RESPECT TO EDUCATION: