1.

0 Introduction
1

Enhanced employee satisfaction leads to higher level of improved employee relation.

A stable and committed workforce ensures successful knowledge transfer, sharing,
and creation --- a key to continuous improvement, innovation, and knowledge-based
work force. Employee satisfaction survey is the main tool to measure the satisfaction
level of the employees.

1.1. Origin
As per the requirement of the Masters of Business Administration Degree, the
following exploratory paper on Employee Satisfaction Survey at MGH Group
is submitted. The report was prepared under the kind supervision of Mr. Humayara
Latifa Ahmed, Assistant Professor, Institute of Business Administration.

1.2. Problem and Purpose

The broad objective of the report was to illustrate how employee satisfaction surveys
can provide fast, effective benchmarking of staff opinions and organizational culture.
To attain this objective, this author had set the following specific objectives:

To prepare a methodology for survey which will provide an unbiased opinion on

the satisfaction factors

Analyze the data from the survey to find out the satisfaction status on different
factors using various statistical tool

Find a possible relationship between satisfaction level and performance

Propose befitting recommendation to the company based on the interpretation

of the data.

1.3. Scope
This internship report encompasses the information gathered from the survey
conducted on the employees of a multinational Conglomerate, MGH Group. The
survey was conducted only the permanent employees working under different
subsidiaries of MGH. None of the contractual or temporary employees were
considered. Secondly, all employees working for less than three months in MGH
Group were also kept out of the survey. Finally, this survey will only be applicable to
2

the employees working for MGH in Bangladesh; its employees outside Bangladesh
were not included in the survey.

1.4. Limitation
The primary limitation for conducting the actual survey, which is the most critical
part of the report, was the unavailability of resources. The medium chosen to
conduct the survey made it mandatory for all the participants to use a computer and
access the company intranet. This was not always possible for the employees for the
lack of enough computers.
Secondly, as they had to finish the survey in the office hour, many were uninterested
to attend the survey keeping their work pending.
Finally, the doubt on the employees part, concerning the confidentiality as well as
effectiveness of the survey based on past experience, made some of the employees
apprehensive and apathetic towards the survey.

1.5. Background
An employee satisfaction survey is an invaluable tool that can measure and analyze
the satisfaction of employees.
Research shows1 that employee turnover costs companies big money every year - as
much as 25 - 200% of an employee's annual compensation. By understanding the
concerns of the employees through tools such as employee satisfaction surveys,
companies are better able to implement policies and procedures that can improve
retention. Long-term, employee surveys:

Increase the sense of commitment and loyalty of your employees

Save company money due to fewer turnovers

Increase employee morale

Gain employee trust

In addition to the above, research has shown that employee satisfaction has a direct
relationship to business revenue and customer loyalty. Satisfied employees perform
better at their jobs. Employees with poor attitudes can have a negative effect on
their co-workers and their customers.
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http://www.infosurv.com/employee-satisfaction-survey.htm

In Bangladesh, apart from a few multinational companies, none of the others have a
scientific method for conducting and interpreting the Employee satisfaction status.
Employee satisfaction surveys, especially if done online, require very little time and
almost no money; yet it generates results that are worth many times the investment.
Employee satisfaction surveys can assess just about anything that relates to the
work environment.

1.6. Methodology
The report is divided into two parts. For the first part, regarding the company analysis
and different HR practices, data was taken from most primary source; via direct
interaction with people working in various positions the group during the internship
period of the author. For some of the past data on the group literature taken from the
concerned people in the company was used.
For the second part, the satisfaction survey, secondary data on different methods of
conducting such survey was sought primarily from the internet as well as from similar
survey conducted in other local and foreign. The data from the survey itself came
completely from primary sources. The methodology of the survey is described in
detail in the second part of the report.

1.7. Chapter Summary

The first chapter is the introduction to the whole report.
In the second chapter the company specific information is given. It includes a
com[any profile on the MGH group as well as the different HR issues faced in that
organization.
The third chapter is the theoretical introduction to employee satisfaction survey. It
underlines the definition, role in improving the organization and need of employee
satisfaction survey. Finally different methods of ESS are described.
Next is the survey based research and methodology part. The fourth chapter is the
literature review which is added to give different views on the matter.
The fifth one is the methodology part, where the different data collection tools, the
questionnaire the steps taken before the survey took place etc were discussed.
The sixth chapter is the analysis part. Here the data from the survey is analyzed
using different statistical tool to find the desired objectives.
The final chapter is the recommendation and conclusion.

2.0 Organizational Breakdown

5

2.1. Company Profile

The MGH Group was established in 1992, in Dhaka (Bangladesh) with its core
competency being in the logistics domain. Today, they have made a benchmark in
every possible business field with annual revenue of US$ 300 million in 2009. Their
various business fields include logistics, aviation, FMCG Distribution, Food &
Hospitality, Information Technology, Radio Broadcasting and Investments in different
emerging sectors
With a global footprint across 7 countries and 700 associates, the MGH Group has
made a grand entry in the global market, today. They have over 750 employees and
offices in over 27 cities all across the globe. Over the years of experience and
momentous market presence they have always stood up to the clients expectations.
With over 180 clients in Bangladesh and over 230 clients overseas, they have scored
a grand position in the industrial sector for sure.

MGH Logistics
Headquartered out of Singapore and originated out of south East Asia, MGH remains
the undisputed leader in this area for some of the biggest brands logistics need. But
with the degree of service they provide, we are slowly but steadily establishing a
foothold in emerging markets, Europe and America. All major global Shipping lines in
South Asia are represented by them. The MGH Logistic business has an evident
presence across the entire value chain including air freight, ocean freight,
warehousing, trucking, import clearance, distribution and custom brokerage.
Acknowledging their contribution in this field they have been awarded the
Super Brand status under the logistics category. Some of their biggest
clients include Carrefour, MGB, Renault, Mahindra and Mahindra, Diesel, D&G etc.

MGH Aviation
Under aviation two types of services are provided, one of an NDC for online
reservation portal Galileo and the other as a GSA for some of the biggest airlines.
They are the GSA for Air Arabia, Egypt air, Air Mauritius, South African Airways and
Indigo and operate passenger service and cargo service. They act as the NDC for
Galileo all across Bangladesh, Nepal, Mauritius, Maldives & Madagascar. They offer
travel, transport, online reservation, etc. through our resourceful general sales
agents. With over 400 travel agents and 750 terminals, they own over 60% of the
6

market share in this relevant industry. Recently with the expertise in these markets
and a flair for luxury and customer comfort they have forayed into RAS travels, where
they provide luxury travels to South America, Maldives, India and Egypt taking care
of the end to end itinerary for the customer.

MGH FMCG Distribution

The MGH FMCG Distribution Group works under two entities IBL and ADL. IBL
manages over 73,000 outlets and in excess of 3 million consumers and ADL runs
over 5,000 outlets and in excess of 2 lakh consumers. They operate as Bangladesh
distributors for major global brands like P&G and SC Johnson. They offer complete
end-to-end value added services in the FMCG industry such as warehousing,
inventory management, delivery, etc. With a growing rate of 35% per annum, the
MGH Group certainly stands as a big FMCG industry.

MGH Food and Hospitality (MRPL)

The MGH Group works under the name of MRPL in the Food and Hospitality industry.
They own a brand of restaurants by the name Nandoos, wherein they represent the
Bangladesh and Nepal markets. At present, they operate and manage 2 restaurants,
growing to 24 by end of 2010 -11. They also act as a sole exclusive partner for
Lavazza for the Bangladesh markets and currently operate 2 outlets growing to 4 by
2010 end. Last but not the least; MGH has a joint collaboration with the Novotel
group. MGH is looking forward to join hands with more valuable associations and
planning to run more brands in the relevant industry.

MGH Media & Entertainment

Being one of the brands of the MGH Group, Radio Foorti is an apparent name in the
field of media & entertainment. It has been rated the number 1 radio broadcasting
network in Bangladesh. By reaching millions of listeners daily and a media study
conducted by A.C. Neilson, it stands as an undisputed leader in the SEC A+ category
across all brand and consumer parameters. At present, it leads the position in the top
3 markets in the field of Radio Broadcasting: Dhaka, Chittagong and Sylhet and is
venturing into new markets of Khulna, Rajshahi, Barisal, Mymensing, cox's Bazar,
covering nearly the entire Bangladesh

MGH Miscellaneous Investments

7

The MGH Group has taken initiative by stepping forward in few more diverse business
fields, such as: Banking and Finance, Real Estate Development and Tea and Rubber
Plantation. MGH holds a major share in Eastern Bank Limited (EBL) and Bangladesh
Commerce Bank Limited (BCBL). EBL has an A+ rating from CRISIL rating services.
MGHs real estate projects include: Standard Chartered Bank, Country Head Quarter,
13 storied Premium Mall and the 14 storied Novotel building. MGH Group also has
investments in Finlay Consolidated Tea Consortium Ltd.
The picture of MGH Group is quite large and evident in its respective business fields.
With such an outstanding and diverse market presence, MGH has grown as an
industry worldwide. With over 180 clients and 230 clients overseas, it has a global
existence in 14 cities in India, 4 cities in Bangladesh, 2 cities in Pakistan and 1 each
in Srilanka, Nepal, Mauritius and Madagascar.

2.2.

Human Resources Management Issues at MGH

People are our greatest asset is a mantra that companies have been chanting for
years. But only a few companies have started putting Human Resources
Management (HRM) systems in place that support this philosophy. At MGH, however,
the top management has realized this fact and is giving its full attention in finding
and resolving the HR issues that can lead to better management of the people.
Managing People
In view of the industry dynamics, in the current times, there is a greater demand for
knowledge workers at MGH. MGH fervently search for the people who can make a
difference to the business. Often talented professionals, in spite of their lack of initial
working experience, enjoy high bargaining power due to their knowledge and skills in
hand. The attitude is much more positive towards those who are taking up
responsibilities at a lesser age and experience.
Motivating the Workforce
Another dimension to the challenges faced by MGH is the growing pace of talent
acquisition. This aspect creates with it the challenge of a smoother assimilation and
the cultural binding of the new comers into the organization fold.
MGH relentlessly looks for people who are self motivated, rather than always finding
tool to motivate them. It is a concept quite unique to MGH. Some steps are taken to
make the employee feel at home from the first day; it involves having his/her desk all
ready with its own work station. Also the new joiner is given responsibility from the
first day, which it easier for him/her to feel a part of the team. Simple things like
getting a treat from the supervisor on the first day can really motivate an employee
to perform from day one.
8

Recruitment and Selection

Recruitment has become a major function from an imperative sub system in HR. At
MGH, both in house and out sourcing is done for the recruitment and selection. For
entry level positions, where they continuously look for people with leadership
qualities, they always go for the recruitment by themselves; where in case of any mid
level or toip level positions, the different head hunting and third party recruitment
agencies are employed. The talent pool for the entry level positions are generally
different university placement offices, individual resumes and employee referrals.
The recruitment process for both types is completely unbiased, as the author had
experienced himself.
Competency Development
Human capital is the real asset for any organization, and this makes the HR role
important in recruiting, managing, and retaining the best. Unfortunately, although
there is a severe need for training in many facets of the organization, there is very
little of it, apart from the ones made mandatory by the government. The HR
department, however, is now aware of the situation and is putting more emphasis in
developing competency of their employees through training and development.
Work life Balance Factor
An employee at MGH will rarely be seen gossiping with his/her peers, as the amount
of workload for most, if not all of them is substantial. Still the employees are always
at a very free spirit about their work and seldom complain about it. The veterans
here have learned to adjust their social life with their work life quite well, and the
new comers also learn very fast to do the same. The employee interaction here is
friendly to say the least. This congenial environment is primarily responsible, along
with a friendly supervisor, has made it possible for them to balance their work and
personal life.
Attrition/Retention of the Talent Pool
One of the toughest challenges for the HR managers in the industry is to deal with
the prevalent high attrition levels. Though there is an adequate supply of qualified
staff at entry level, MGH is always mindful of the possible gaps in the middle and
senior level management in the industry. Further, the salary growth plan for each
employee is not well defined. This situation in some cases has resulted in increased
levels employee turnover at MGH.

2.3. Swot Analysis

Strength:
a. Has a motivated work force that is dynamic with leadership quality to face the
changing external environment.

b. Has a management which is very supportive any new ideas from any one as
long as it brings potential growth
c. It has a much diversified portfolio, spanning in more than a dozen sectors of
business both at home and abroad. Having such a wide spread portfolio, it
minimizes the overall risk of a financial loss
Weakness
a. The organizational processes are too unstructured, making it vulnerable
for the maturity life cycle of the company.
Opportunity
a. Has ventured in some new sectors of business where it is quite free of
competition
b. Has a lot of room to grow in entertainment & food business
c. Will continue to be the leader in shipping & Logistics services in
Bangladesh
Threat
a. New competitors are emerging to take a slice of the food and
entertainment business
b. Government regulation is making it hard sometimes to
smooth flow of business

carry on the

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11

3.0 Employee Satisfaction: Its Role in Organization

Growth
What does the term Satisfaction imply to an employee? It implies nothing else
than the feeling of either being contended or non-contended on his/her current job.
When companies are committed with providing high quality products and services;
when companies set high work standards for their employees; and when employees
are empowered through training and development, provided with knowledge and
information, permitted to make mistakes without punishment, and trusted; they will
experience an increase in their level of satisfaction at work.
3.1. Employee Satisfaction: Definition2
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
2

www.wisegeek.com/what-is-employee-satisfaction.htm

12

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.
To measure employee satisfaction, many companies will have mandatory surveys or
face-to-face meetings with employees to gain information. Both of these tactics have
pros and cons, and should be chosen carefully. Surveys are often anonymous,
allowing workers more freedom to be honest without fear of repercussion. Interviews
with company management can feel intimidating, but if done correctly can let the
worker know that their voice has been heard and their concerns addressed by those
in charge. Surveys and meetings can truly get to the center of the data surrounding
employee satisfaction, and can be great tools to identify specific problems leading to
lowered morale.
3.2. When to do an Employee Satisfaction Survey (ESS)
The need to survey is greater when one or more of the following factors are present.
Rapidly growing organization: When an organization is growing quickly, it is
critical to find out how employees feel about their jobs, the organization, and their fit
and future within it.
High or growing turnover rate: While some industries have a naturally high
turnover, growing turnover is a problem for any organization. If your absolute level of
turnover exceeds the industry average, you have a problem that an employee
satisfaction survey is the first step to solving.
Excessive rumors: A strong rumor mill is symptomatic of other problems in the
organization. These can include communications, trust, and fear. Only a survey can
uncover the extent to which any of these issues exists.
Planned or recent organizational changes, including change of leadership. Change
can be difficult for many people. If not handled properly, productivity and profits can
decline.
Highly competitive industry: In a highly competitive industry, turnover
minimization and productivity and creativity maximization are keys to success.
Staying in touch with employees is necessary to facilitate continued competitiveness.
Contemplated changes in pay and benefits: One must know what needs to be
"fixed" and how much "fixing" it needs to maximize return on invested money and
people resources.
3.3. Importance of ESS
Enhanced employee satisfaction leads to higher level of employee retention.
13

A stable and committed workforce ensures successful knowledge transfer, sharing,

and creation --- a key to continuous improvement, innovation, and knowledge-based
total customer satisfaction.
Employee surveys are an important and popular tool that organizations use to solicit
employee feedback. Firstly, Employee opinion surveys can be morale-boosting for
those who may not have many other opportunities to confidentially express their
views.
Secondly, employee attitude surveys provide a way to improve levels of productivity
and commitment by identifying the root causes of workplace attitudes. The
information from these surveys will help boost organizational productivity and
positively affect the organization's top and bottom lines. They are very effective tools
for measuring and ultimately improving various relationships within organizations
Next, employee satisfaction surveys allow for increased productivity, job satisfaction,
and loyalty by identifying the root causes of employee satisfaction and targeting
these areas.
Fourthly, employee engagement surveys measure the extent to which employees are
passionate about their work and emotionally committed to their company and to
their coworkers. Listening to employees' insights and suggestions for improvement
provides the organization with valuable information that can be acted upon to
increase satisfaction in the workplace. Also, employees leaving the organization can
provide valuable feedback through employee exit interviews.
Employee Satisfaction, Opinion, Attitude, Engagement, and Organizational
Assessment Surveys along with Exit Interviews are all tools that may be used to
measure and improve loyalty and commitment.

3.4. Different Methods

Some different methods of Employee satisfaction survey are mentioned below.

3.4.1. Minnesota Satisfaction Questionnaires (MSQ)

The Minnesota Satisfaction Questionnaire (MSQ) is designed to measure an
employees satisfaction with their particular job.
Method includes 100 items measuring 20 facets of job satisfaction
History
Three versions are available: two long forms (1977 version and 1967 version)
and a short form.
14

a. Long form MSQ. Measures job satisfaction on 20 facets:

*
*
*
*
*
*
*
*
*
*

Ability Utilization
Achievement
Activity
Advancement
Authority
Company Policies
Compensation
Co-workers
Creativity
Independence

*
*
*
*
*
*
*
*
*
*

Security
Social Service
Social Status
Moral Values
Recognition
Responsibility
Supervision-Human Relations
Supervision-Technical
Variety
Working Conditions

Long form MSQ uses the following five response choices: Very Satisfied,
Satisfied, N (Neither Satisfied nor Dissatisfied), Dissatisfied, Very Dissatisfied.
b. Short form MSQ. This form consists of 20 items from the long-form MSQ
that best represent each of the 20 scales.

Advantages and disadvantages

a. Advantage of this method
*
*
*
*

Reliable, valid measure of job satisfaction,

Easy to use, easy to understand
Applicable to any organization
Applicable for managers, supervisors, and employees

b. Disadvantage of this method:

Very long
3.4.2. Job Descriptive Index (JDI)
Definition
Job Descriptive Index is a scale used to measure five major factors associated with
job satisfaction: the nature of the work itself, compensations and benefits, attitudes
towards supervisors, relations with co-workers, and opportunities for promotion.
History
The JDI was first introduced in 1969 and since then has been used by over 1,000
organizations in many sectors. Measurements of strengths and weaknesses within
each factor will tell practitioners where improvements can be made.
15

Advantages
Extremely easy to use with all types of respondents
Most commonly used measure of job satisfaction
Disadvantages
Shouldnt sum across factors
Is there more to job satisfaction than just the 5 factors.
Main contents
a.
b.
c.
d.
e.

Nature of the work itself

Compensations and benefits
Attitudes towards supervisors
Relations with co-workers
Promotion opportunities

After analyzing the data, one should consider the following questions with respect to
these data:
1. What can you conclude about level of job satisfaction of the employees?
2. What can you conclude about each of the five specific areas of job satisfaction?
3. What could you do to improve the quality of working life of the employees?
3.4.3. Job in General Scale (JIG)
Definition
Job In General Scale is a method of employee satisfaction and developed as a global
measure of job satisfaction.
JIG is similar to JDI. The JDI, introduced 1969 by Smith, Kendall, & Hulin, was
modified in 1985 by the JDI Research Group.
In 1996, the JDI Research Group improved this method. The criteria for selecting the
final 18 items were:
(a) High factor loadings on the first principal factor, and
(b) High item-total correlations.

Advantages and disadvantages

16

Advantage is quick and easy to use; disadvantage is not getting information

regarding specific factors.

3.4.4. Satisfied / dissatisfied method

In this method, one just sends a question form that includes:
What is good thing in our company?
What is not good one in our company?
This method is suitable for emergency events and when one needs result in a short
time.

3.4.5. Interview method

This method is used for:
Review all data collected from other method..
Review key person.

3.5.Steps taken for an Effective Survey

The following steps were taken to ensure the fairness and a high response rate of the
survey:
Advertise the Survey
To ensure a surveys success, it is extremely important to let employees know
about it well ahead of time. Response rates can be closely linked to the
number of times an upcoming survey is announced. A number of things were
done to alert employees of the upcoming survey, including announcements
via email, bulletin board and word to mouth.
Open Survey
In many survey, it is absolutely imperative that employers preserve anonymity
when conducting employee surveys. However, in this case them completely survey
was done in an open manner, with full knowledge of the employees. This is quite
unique and can only be possible in an organization where a deep level of trust
exists between employees and the top management.
Show a Clear Objective and Commitment
17

Employers should also establish a clear objective for a survey. Employees are more
likely to buy into the surveys purpose when it is clearly articulated. Moreover,
employers should make clear that they are committed to taking action based on
the surveys results. If employees can see that their opinions drive change, they are
more likely to participate enthusiastically in future surveys.
Share Results
Response rates increase when employers offer to share the results of a survey. Not
acting on survey results may negatively affect the response rates of future
surveys, as it happened previously in this organization. A summary covering the
most important findings was demonstrated to all the Head of the departments for
openness.
Give Employees Time to Respond
Nothing increases response rates more than allowing employees time to fill out a
survey. On the other hand, if employees are required to fill out surveys on their
own time, response rates will almost certainly suffer. A delicate balance was
ensured by giving them the survey file to fill up and giving them a timeline of only
two days.
Incentives
The effect of small incentives on response rates cannot be overstated. Any
company of the MGH group with a higher than average response rate was declared
to have received a more favorable performance appraisal. This increased the
response rate a lot.

18

4.0 Literature Research

A study of job satisfaction of employees in Cholamandalam MS General Insurance
Limited Chennai By R.Muthukumar -This study attempts to evaluate the job
satisfaction level of employees in Cholamandalam General Insurance in Chennai.
It focuses on the following key areas like:
1. Influence of supervision, co-worker, pay, age, marital status, education and
working condition on the overall job satisfaction of an employee.
2. To find out whether experience has any effect on job satisfaction.
3. To find a significant difference among age groups with respect to job factors.
4. To find the difference among male and female employees with respect to job
factors.
The result shows that the overall satisfaction level is on an agreeable side. There is
no significant difference among respondents of various age groups with respect to
19

job factors neither is there any significant difference among respondents of various
gender with relation to the job factors.
Research conducted under the rubric of organizational climate has had success in
aggregating individual employees perceptions and investigating their relationship to
both organizational-level and individual-level outcomes (see, e.g., Schneider, White,
& Paul, 1998; Zohar & Luria, 2005). In addition, there are a handful of studies that
have explored the relationship between aggregated employee job satisfaction
attitudes and organizational (or unit-level) performance.
Ostroff (1992), studying a sample of 364 schools, investigated the relationship
between employees attitudes and organizational performance. Ostroff found that
aggregated teacher attitudes such as job satisfaction and organizational commitment
were concurrently related to school performance, as measured by several
performance outcomes such as student academic achievement and teacher turnover
rates. Across 12 organizational performance indexes, the magnitudes of the
correlations between teacher satisfaction and performance ranged from .11 to .54,
with a mean of .28. When the unique characteristics of the schools were statistically
controlled for, teacher satisfaction and other job-related attitudes continued to
predict many of the organizational performance outcomes. Results were strongest for
teacher satisfaction; thus, organizations with more satisfied employees tended to be
more effective than organizations with dissatisfied employees.
Ryan, Schmitt, and Johnson (1996) investigated similar relationships between
aggregated employee attitudes, firm productivity, and customer satisfaction. The
authors measured these relationships at two points in time from 142 branches of an
auto finance company. Results indicated employee morale was related to subsequent
business performance indicators, customer satisfaction sentiments, and turnover
ratios.

In a unique study conducted by Harter et al. (2002), the authors conducted a

metaanalysis of studies previously conducted by The Gallup Organization. The study
examined aggregated employee job satisfaction sentiments and employee
engagement, with the latter variable referring to individuals involvement with as
well as enthusiasm for work. Based on 7,939 business units in 36 organizations, the
researchers found positive and substantive correlations between employee
satisfaction-engagement and the business unit outcomes of productivity, profit,
employee turnover, employee accidents, and customer satisfaction.
Schneider et al. (2003) report analyses of employee attitude survey data aggregated
to the organizational level of analysis. These authors explored the relationships
between several facets of employee satisfaction and organizational financial (return
on assets; ROA) and market performance (earnings per share; EPS) using data from
35 organizations over a period of eight years. Thus, in contrast to previous studies,
Schneider and his colleagues study was able to make some inferences about
directional causality (i.e., are employee attitudes a stronger cause of organizational
performance than the reverse).
20

The implicit assumption is apparent in the research studies that the attitude data
were typically collected at one time period and performance outcomes were
concurrently collected or at multiple time periods following the collection of the
employee attitude data. The study conducted by Schneider et al. (2003) suggests
that collecting data in this fashion may lead researchers to draw erroneous
conclusions because their data prevent them from discovering significantly stronger
relationships for performance causing satisfaction.
It could be argued, for example, that employees who are in higher performing
organizations are more likely to be satisfied than those in lower performing
organizations simply because their organizations are doing well. Indeed, this causal
pattern was found in the study conducted by Schneider and his colleagues (2003).
Specifically, their data supported causal relationships between financial and market
performance outcomes and employees overall job satisfaction and satisfaction for
security. Although more research is needed before concrete conclusions are drawn,
Schneider et al.s (2003) research demonstrates that employees can derive
satisfaction from the knowledge or feedback that their organization is performing
well and is accomplishing its goals a finding that is in stark contrast to the
presumption found in the academic literature (see, e.g., Likert, 1961).
When we consider the studies collectively, directional causality may work in both
directions; employee satisfaction causes organizational performance and vice versa.
Therefore, it seems most likely that reciprocal relationships exist and that, as noted
by Gross and Etzioni (1985), organizational reality and human happiness go hand
and hand (p. 4). Thus, although directions of causality remain unresolved, initial
evidence suggests that aggregate employee attitudes have connections with
organizational performance outcomes.

Given the fact that significant and practically important relationships exist between
aggregated employee attitudes and organizational performance, it is important to
question what factors contribute to satisfaction. The predominant view has focused
on the situational context (e.g., supervisory support) as a cause of satisfaction and
has argued that high-performance work practices and thus a positive working climate
foster employee satisfaction (see, e.g., Bowen, & Ostroff, 2004; Wright, Dunford, &
Snell, 2001;
Wright, Gardner, Moynihan, & Allen, 2005).

5.0 Survey Methodology

5.1.Rational
The research is primarily based on an employee satisfaction survey, which can be
used to find out different factors which effect the overall employee satisfaction.
21

Employee satisfaction has been defined as a function of perceived performance and

expectations. It is a persons feeling of pleasure or disappointment resulting from
comparing a products outcome to his/her expectations.
If the performance (Company Services) falls short of expectations, the employee is
dissatisfied and if it matches the expectations, the employee is
satisfied. A high
satisfaction implies more purchase/use of the product or service. The process is
however, more complicated then it appears. It is more important for any organization
to offer high satisfaction, as it reflects high loyalty and it will not lead to switching
over once a better offer comes in.
5.2.Data collection tools
The Research required knowing the views and opinions of the employees of the
organization chosen on various factors. A survey in QUIESTIONNAIRE form came out
to be the best possible means.
A Questionnaire was designed which covered the demographys and all the factors
responsible for satisfaction of employees in the group.

5.2.1.

Formation of Questionnaire

Many different factors went into the formatting of the questionnaire. The culture
of the organization as well as ease of analysis was taken into consideration.
a. Open Ended: All the questions asked to the employees were closed and given
in a multiple choice form. No open ended questions were asked, in spite the
fact that in some cases open ended questions were more appropriate. This
was done to minimize the time spent on answering as well as to reduce
deviation on specific answer.
b. Different Sets: All the questions were categorized in three distinct formats.
The first set consisted of the questions on satisfaction level- the employees
were asked to answer a series of multiple choice question based on their
satisfaction level on a certain issue.
The next set consisted of questions on agreement issue, where they expressed
how much they agree with a certain statement.
The final set, which lists a series of possible discriminations towards the
employees, asks them to give yes/no/left alone responses to them.
c. Rating Scale: A six bar rating scale was chose as possible options for the first
and second set of questions. The reason for choosing it was to eliminate any
central tendency the candidate may have in answering any question. This
22

rating scale gives it to the candidates discretion to assign intermediate values

on points 2 through 5, as only the points 1 and 6 were pre assigned with
values such as most satisfied / least satisfied(in case of set one) and strongly
agree / strongly disagree(set two).

5.2.2.

Medium of Survey

The electronic medium was chosen to conduct the survey. The reasons behind it were
manifold.
Firstly, it removed the clutter of to many paper works and made it easy for the author
to distribute, collect and analyze the data.
Secondly, it gives a certain posh ness to a survey when it is taken over the internet.
The employees become more interested to attend the survey. It has a stronger
appeal to them as it reduces their time spent on the survey.
An excel file was prepared with all the questions from set 1, 2 and 3. The excel files
were prepared as such that once the answers are chosen by an individual, they will
be recorded in the same file on a different worksheet, which is kept both locked and
invisible from the candidate.
The files were then send the excel file and asked to send back the files upon
completion. The Company wise data was then retrieved from each individual file and
used for further analysis.

5.2.3.

The Questionnaire

To uncover the important attributes or factors which determine the satisfaction level
of the employee with respect to the various services catered by the company, a
thorough understanding of the organization culture, the mentality of the employees
as well as other external aspects were necessary.

5.2.3.1.

The Questions

23

A total of 48 questions were chosen to be asked in set 1 and 2, with set 3 being a list
of possible discrimination fields to be answered. Each were unique in its required
response and would give the requisite information.

S
l.
1
2
3
4
5
6
7
8
9
1
0
1
1
1
2
1
3
1
4

Questions

Description

Designed
to
fathom
employees
Your companys commitment towards
impression about the companys level
employee's health and safety
of care towards him/her
Designed to understand companys
Encouragements in new and better
level of trust on the employee and
ways of doing things
openness to new ideas
Your involvement in the decisions Will help in determining the autonomy
employees enjoy at workplace
that affect your work
Will fathom out how the employees
Respect and dignity received from
view
their
supervisors
attitude
your supervisor
towards them
Designed to measure the satisfaction
Ease of availability of funds for
towards the companys commitment to
medical purpose from Welfare Funds
the employees well being
Designed to understand the companies
The recognition you receive for doing
fairness as well as promptness in
a good job
judging a good employee
Will help figure out how satisfied the
Your current compensation package
people are with their compensation
package
With
measure
the
level
of
Congenial
environment
for
interpersonal
relationship
in
the
interaction with other employees
workplace
Will measure the attitude of employees
Performance evaluation process
towards the feedback from the
company
Availability
of
resources
to Will explain the level of conduciveness
of working environment for employees
satisfactorily accomplish your job
Transparency of the reward process Will measure employee satisfaction
towards the level of fairness
in recognizing your achievement
The match between your reward and Will help measure the satisfaction on
compensation in terms of expectation
expectation
Availability of professional training Designed to fathom satisfaction on
career progression with better training
with respect to your needs
The skills and knowledge you had Designed to understand how career
gained in here compared to what you progression through learning gaining
would have in another organization
knowledge can increase satisfaction

24

1
5
1
6
1
7
1
8
1
9
2
0
2
1
2
2
2
3
2
4
2
5
2
6
2
7
2
8
2
9
3
0

Social
activities
(eg.
cultural
activities and sports etc) organized
by the group/your company
Opportunities available to you to
move to a better job within the group
or your company
Adequacy of bonuses and incentives
to motivate you for enhanced
performance
Guidance you get in your decision
making
Feedback you get about your job
Fairness in evaluating employees for
career progression
Your progression in this organization
compared to the career progression
you would have elsewhere
Leave Benefits
Co-worker's
/
Team
member's
assistance with your individual
responsibilities
Companys communication system to
keep all employees informed about
new policies, guidelines, issues etc
Opportunity to give feedback &
criticize
in
interdepartmental
meeting / group meeting
Flexibility and support of the
management
with
respect
to
employee family responsibility
Your organizations commitment in
keeping you informed about what is
expected from you in doing your job

Designed to understand how happy

employees are about interacting with
their colleagues in social gathering
Explains
satisfaction
on
career
progression through moving up the
hierarchy
Will measure the satisfaction on
receiving financial benefits as a drive
for better performance
Designed to get impression towards
the supervisor
Reflects on companys communication
and extent of giving feedback to
employees
Reflects on fairness in assessing an
employee
Designed to figure out employee
mentality of a comparison between a
present job to one elsewhere
Designed to understand employee
satisfaction on stress and distribution
of workload
Will show employee attitude towards
the peer group
Will transpire the attitude towards
companys
policy
of
informing
everyone about changes in the org.
The help figure out employee mindset
on over all job security
Will reflect on the overall company
The satisfaction towards the top
management in terms of overall trust

The satisfaction on job security will be

found out
Freedom to take important decisions Again, it will further explain the level of
without fear of problems in case of job security one has
mistakes
It reflects on the overall company and
Overall, your satisfaction level in
how satisfied one is to be associated
your job in this company
with this organization
Your overall job security

25

3
1
3
2
3
3
3
4
3
5
3
6
3
7
3
8
3
9
4
0
4
1
4
2
4
3
4
4
4
5

Satisfaction with your personal life

outside the office
I can report unethical practices
without fear of reprisal
My
work
group
has
regular
discussions
to
review
our
performance,
discuss
common
problems, or plan ways to improve

It reflects on the employees level of

satisfaction on ones own life
The extent of job security is further
analyzed through this questions
Reflects on the amount on cooperation
among the employees and thus the
satisfaction

The level of autonomy in the

I am given enough authority to carry
organization,
and
therefore
the
out my responsibilities
satisfaction level, can be understood
The mutual bond among colleagues
I enjoy spending time with my
and its effect on satisfaction is
colleagues even after office hours
understood
I have a clear career path, i.e. I know The level focus in career, giving people
a clear direction, is realized by this
where I will be 3-5 years from now
I feel that management is well aware The top managements role in
of my potentials and capabilities and assigning the people in suitable posts,
has put me in the best possible thereby incur job satisfaction among
position
employees is described here.
The company makes every effort to Quantifies
top
managements
fill vacancies from within before commitment towards the employees,
recruiting from outside.
there the satisfaction because of it
My immediate supervisor makes an The attitude towards the supervisor in
effort to talk with me about my terms on help in career progression is
career goals
quantified here
Although highly Stressful most of the Designed to get employee feedback on
time, my workload is distributed workload distribution
fairly
Unnecessary
bureaucratic Designed to get employee feedback on
procedures and delays are minimal in organizational culture
here
I am willing to work after office hours Designed to get input on workload and
stress
on my own to get the job done
I am well informed about all the Reflects
on
the
communication
changes
happening
in
the channels on the company and the level
organization according to my position of employee satisfaction
and scope of responsibility.
I always believe in the information The level of trust in top management
passed on to me by my top is found out in this question
management
How much the employee can relate
I can clearly relate my individual
his/her job in the organization to the
responsibilities with the overall Org.
overall function and vision of the
Vision
organization
26

4
6
4
7
4
8

Decisions Salary Raises, Transfer,

Promotion, Recruitment are based on
performance, instead of favoritism
My superior teaches me everything
he/she knows about the job to help
me perform better
Working with this organaization has
raised my personal standards and
overall, made me a better human
being
Table 1

5.3.

The level of fairness applied in key

decision
regarding
employees
is
described through this.
Gives input on the attitude towards the
superior as a mentor
How much the employees personal life
have been affected by their experience
in the company is realized here

The Questions for the survey along with intended input

Scale Construction

On the basis of attributes which have been identified, a questionnaire is

prepared which is analyzed for two parameters separately i.e. satisfaction and
importance.
An Importance Scale was added along with all the questions to figure out which
questions hold how much importance to the employee. This was done to give weight
to all the satisfaction ratings of the employees. This addition made sure that no
skewed data will enter into the analysis. Also, it will also give idea how important a
question, and ultimately a factor is to the employee, and consequently to the
company.

To each question, there are 6 possible answers out of which one is to be

selected. In case of component pertaining to satisfaction, the respondent has to give
a response on this six point scales, one being the least satisfied and 6 being the
most. The intermediate values(2 through 5) were left on individual perception.
In case of component pertaining to importance, the respondent has to give a
response on a six point scales, one being the least important and 6 being the most.
The middle points, as before, were left to personal judgment.
This was done to have symmetry with the satisfaction scale. The response for each
question in either component is two values ranging from 1 to 6, one value for the
satisfaction on the asked question, one for the importance of the question to the
employee.
5.4.

Sampling design
27

As all the employees had access to computer at some time or another the whole
population of employee was brought under the survey. However, after the survey was
done, as the full population could not attend the survey, statistical tests were used to
prove that the data received from the candidate, hereinafter called the sample, is
applicable to the entire population.

Sample Size
A total of 199 employees attended the survey, out of a population of 303. It means
that 65% (appox.) of the population had attended the survey.

5.5.

Pilot Study

A pilot or feasibility study was designed to test logistics and gather information prior
to the larger survey study, in order to improve the latters quality and efficiency. A
pilot study can reveal deficiencies in the design of a proposed experiment or
procedure and these can then be addressed before time and resources are
expended on large scale studies.
The reason to conduct the pilot study was to see if the instruction provided to the
employees was readily understandable. Also the time needed to understand and
answer the entire questionnaire was also vital, as too long a time meant many will
not be eager to give it their thorough attention, and too short a time meant the
questions are only scratching the surface and not yielding the desired answer
A sample of twenty people was asked to sit for the survey. This people were chosen
from different companies of the group, with different educational background,
experience in the company and designation.
The response from them was totally within the expectation range; as a result the
result of the pilot study was included in the main survey.

5.6.

Response Rate

The overall response rate was 66% (199 out of a population of 305 employees). The
sample is large enough to provide an accurate proxy for the full population. As it is
shown in table , the results interpreted from the sample can be applicable to the
population. The proportion of respondents by unit is close to the actual distribution
of MGH employees. The response from the Sample in terms of both importance scale
and satisfaction rating fall under a margin of error or less than 4% in all the asked
questions, with a confidence level of 95%; meaning if we were to pull 100 samples
28

from the population and ask each group the same questions, we can be certain that
95 percent of the time we will get answers that are within five percent (or less) of the
answers we got this time.

5.7.

The formula

The formula for computation of individual satisfaction index for each employee:

SIemp = Sum of (Satisfaction on an factor * Individual importance of that

factor)
Sum of Average Importance (i)

The formula for computation of satisfaction index for the company is:

SIcom= Sum of (Average Satisfaction(S) x Average importance (i))

Sum of Average Importance (i)
= SXi
i
The formula for computation of satisfaction index for the whole group is:

SIgroup=Sum of (Satisfaction Index of Company*Total respondents from there)

Total sample size
= SIcom * Ncom
Ntotal

29

30

6.0 ANALYSIS & INTERPRETATION

6.1.

Data Analysis Tools

6.1.1.

Z test

Z test is normally used, among other cases, to compare the mean of a sample to
some hypnotized mean for the population in case of large sample or when population
variance is known. It is valid whenever the following conditions are met:

The sampling method is simple random sampling.

The sampling distribution is approximately normally distributed.

As condition one is applicable to our population, Z test can be applicable in this case
on the cumulative response received from the respondents, both in case of
importance scale and satisfaction level on each question. Before conducting any
31

analysis, Z- test was used to find out if the data derived from the sample mean can
be applicable to the whole population.
After conducting z test on the sample means from the cumulative responses, with a
confidence level of 95%, its is shown that in all the cases, the variance between the
sample mean and the possible population mean is less than 4%. It means that, if we
were to pull 100 samples from the population and ask each group the same
questions, we can be certain that 95 percent of the time we will get answers that are
within five percent (or less) of the answers we got this time.

6.1.2.

The KMO & Bartlett's test

The Kaiser-Meyer-Olkin Measure of Sampling Adequacy is a statistic that

indicates the proportion of variance in the variables that might be caused by
underlying factors.
High values (close to 1.0) generally indicate that a factor analysis may be useful with
the data. If the value is less than 0.50, the results of the factor analysis probably
won't be very useful.
Bartlett's test of sphericity tests the hypothesis that your correlation matrix is an
identity matrix, which would indicate that your variables are unrelated and therefore
unsuitable for structure detection.
Small values (less than 0.05) of the significance level indicate that a factor analysis
may be useful with your data.

Kaiser-Meyer-Olkin Measure
of Sampling Adequacy.
Bartlett's Test Approx. Chiof Sphericity Square
Df
Sig.

As it can be seen in this case, the value

is very close to 1.0, making it
.870
subsequent analysis relevant.
7772.94
8
1128
Here the value is 0, meaning, again, that
the subsequent analysis will carry great
.000
weight.
Table 2

6.2.

KMO and Bartlett's Test

Data Analysis Steps

After Collection of data for individual employees, the results are then categorized on
the basis of
32

Total Respondents.
Industry Wise

For each category, the respondents are selected and then averages of
satisfaction and importance are computed for each question respectively. Then the
product of corresponding averages is computed to give the satisfaction index.
6.3.

Listing of Important factors

This table shows two tests that indicate the suitability of the data for structure
detection.

Using the factor analysis technique, numbers of attributes were determined which
affect the levels of satisfaction of employees with respect to the company.
Using the software SPSS, we find 10 factors altogether which explains 72 % of the
variance. In table 2 in the appendix (Rotated Component Matrix), we can see how
much each factor contributes to explaining the variance. The Rotated Component
Matrix from table 1 in the appendix is to be noted, along with
From the Rotated Component Matrix, we can identify the variables out of 48
questions, which fall in those 1 factors depending on the values from table 2.
We can see that Question no 45, 44, 34, 33, 36, 46, 43, 38, 32, 40, 41 and 37
together make one factor.
Similarly, question 6, 7, 9, 11, 12, 16, 17, 19, 20, 39 makes the second factor;
questions 14, 21, 23, 25, 26, 27, 28, 29, 30 make factor number three; question 2, 4,
18, 42, 47 and 48 make factor four,
Factor five consist of 13 th, 15th and 25th question, questions 3 and 8 make factor six,
question 24 and 31 makes factor seven, factor eight has question 10, factor nine has
question 1 and five and finally factor ten has question 22 and 35.
The factors are defined below:

Factor-1 Trust on the Management Decisions:

The top management at MGH wields a lot of power; it has the right to take
unilateral decisions against the advice and suggestion of the middle management.
The employees are very circumspect all the time about the decision taken by the
top management; which consequently affects their satisfaction level. In this factor
33

the response to the questions helped the author figure out their satisfaction level
on the top management.
The saying one does not choose ones boss rings true in every culture and
country. This set of question would find how satisfied the employee is with his/her
direct supervisor.

Factor 2- Compensation & feedback:

This factor reveals the level of employee trust, accuracy, and speed of the group
feedback mechanism. This is important as it regular and unbiased feedback
concerning performance, change in organization, reward system etc. is a very
important gauge to measure employee satisfaction.
Compensation is one of the most important factors measuring employee
satisfaction in any organization. It contains questions and statement designed to
find out if the employee is satisfied with his/her present compensation package.
As it was found for the employee interaction with the author, there is a certain
tension on compensation structure among the employees in the lower level.
Factor 3-security of career:
Job security or the lack of it can be a very strong factor behind job satisfaction.
The questions here were asked to find if the people are satisfies with their current
level of job security.
Factor 4-Passion for work
This factor indicates how much an employee loves doing what he/she does. It is a
measure of his/her passion for the job that may make her/him to ignore a few
unpleasant things like working late, still making him/her give a hundred percent to
the job.
Factor 5- Career Progression:
Another important parameter was teamwork and cooperation among the employees
as well as importance of career. The atmosphere at MGH is friendly to say the least. It
is quite clear for the culture that a sense of belongingness and personal relation
among themselves is one of the biggest positives they have. The author wanted to
find out how much this congenial atmosphere is contributing to there over
satisfaction level.
Factor 6-Autonomy & Social Interaction
MGH group is renowned to give employees autonomy and decision making authority
from very early in their career. Actually, it almost exclusively picks candidates, for
almost every job of every level, who are self motivated and can take decisions
34

themselves. The questions in this group were designed to measure how much is this
initiative to empower employee is adding to the overall satisfaction.
Factor 7-Self Worthiness
How much does someone value the satisfaction of his/her own life? This factor will
measure that.
Factor 8- Office Supplies
Employee satisfaction level with the supply of necessary \tools to conduct their jobs
will be measured here.
Factor 9- Health Benefits:
MGH provides health benefits to all its regular employees. This factor will help figure
out how satisfies employees are with the arrangements.

Factor 10- Office Environment:

The congeniality of working in the office will be measured by this factor.

6.4.
Industry Wise Analysis of Satisfaction Level
As a conglomerate, MGH has an array of different venture. The companies are divided
into different industries. MGH has its subsidiaries in mainly three sectors- Shipping,
Freight forwarding, Aviation and distribution. For the sake of analysis, the other
subsidiaries, such as Entertainment and Food business are put together with
Distribution. This makes good sense as in real life also, the food and entertainment
division is seen as a part of distribution.
So there are now four Industries one has to look at, Shipping, Freight forwarding,
Aviation and others. The objective is to find the satisfaction score on the ten
satisfaction factors previously deduced.
6.4.1.

Shipping Division

The companies that are part of the shipping division of MGH are- CSCL, MHL, PSSLNCL, ITSL, YML and TTL.
After extracting the data from the survey and applying the formula stated previously,
the following output is received:
35

S.No

Factors

Average
Satisfaction

Average
Importance

(S)

(i)

Sxi

Factor-1 Trust on the Management

Decisions

14.93

3.86

57.68

Factor 2-compensation & feedback

13.05

3.85

50.27

Factor 3-security of career

14.90

3.75

55.80

Factor 4-Passion for work

15.19

3.91

59.44

Factor 5- Career Progression

11.48

3.59

41.17

Factor 6-Autonomy & Social

Interaction

16.81

3.76

63.20

Factor 7-Self Worthiness

15.46

4.06

62.72

Factor 8- Office Supplies

15.40

3.78

58.19

Factor 9- Health Benefits

16.14

3.76

60.67

Factor 10- Office Environment

12.98

3.98

51.66

146.34

38.29

560.80

10
Sum

Table 3

SATISFACTION INDEX FOR THE EMPLOYEES IN MGH

(Shipping)

Satisfaction Index = Sum of Average Satisfaction(S) x Average importance

(i)
Sum of Average Importance
= SXi =
i

560.80

14.64

38.29

36

Figure 1

6.4.2.

Satisfaction Vs Importance (Shipping)

Freight Forwarding Division

The companies that are part of the Freight Forwarding division of MGH are- GFL, MLL,
PSSL-FF, OEL, TGL & TML.
After extracting the data from the survey and applying the formula stated previously,
the following output is received:

37

Table 4

S.No

SATISFACTION INDEX FOR THE EMPLOYEES IN MGH (Freight

Factors

Average
Satisfaction

Average
Importance

(S)

(i)

Sxi

Factor-1 Trust on the Management

Decisions

14.08

3.85

54.26

Factor 2-compensation & feedback

13.70

3.97

54.33

Factor 3-security of career

14.51

4.04

58.59

Factor 4-Passion for work

14.50

3.89

56.37

Factor 5- Career Progression

11.82

3.74

44.24

Factor 6-Autonomy & Social

Interaction

16.07

3.90

62.59

Factor 7-Self Worthiness

14.36

4.07

58.50

Factor 8- Office Supplies

12.95

3.52

45.60

Factor 9- Health Benefits

16.04

4.10

65.84

Factor 10- Office Environment

12.62

3.94

49.68

140.64

39.02

550.00

10
Sum

Forwarding)

Satisfaction Index = Sum of Average Satisfaction(S) x Average importance (i)

Sum of Average Importance (i)

= SXi =
i

560

14

39.94

38

Figure 2 Satisfaction Vs Importance (Freight Forwarding)

6.4.3.

Aviation Division

The companies that are part of the Aviation division of MGH are- GBL, RASL and Owal.
After extracting the data from the survey and applying the formula stated previously,
the following output is received:

39

S.No

Factors

Average
Satisfaction(S)

Average
Importance(i
)

Sxi

Factor-1 Trust on the Management

Decisions

15.31

3.73

57.09

Factor 2-compensation & feedback

13.18

3.79

49.88

Factor 3-security of career

15.40

3.86

59.49

Factor 4-Passion for work

15.28

3.94

60.17

Factor 5- Career Progression

13.26

3.83

50.71

Factor 6-Autonomy & Social

Interaction

16.51

3.79

62.51

Factor 7-Self Worthiness

18.10

4.31

77.99

Factor 8- Office Supplies

12.12

3.14

38.08

Factor 9- Health Benefits

16.69

3.96

66.15

Factor 10- Office Environment

12.77

3.99

50.93

148.60

38.33

573.00

10
Sum
Table 5

SATISFACTION INDEX FOR THE EMPLOYEES IN MGH (Aviation)

Satisfaction Index = Sum of Average Satisfaction(S) x Average importance (i)

Sum of Average Importance (i)
= SXi =
i

573

14.95

38.33

40

Figure 3

6.4.4.

Satisfaction Vs Importance (Aviation)

Other Divisions

The companies that are part of this are- MPL, CEL, IBL, ADL, MRPL and RFL.
After extracting the data from the survey and applying the formula stated previously,
the following output is received:
After extracting the data from the survey and applying the formula stated previously,
the following output is received:

41

S.No

Factors

Factor-1 Trust on the Management

Decisions

13.31

3.53

46.93

Factor 2-compensation & feedback

13.11

3.66

47.94

Factor 3-security of career

13.25

3.50

46.32

Factor 4-Passion for work

13.73

3.50

48.10

Factor 5- Career Progression

11.14

3.32

36.94

Factor 6-Autonomy & Social

Interaction

14.85

3.50

51.93

Factor 7-Self Worthiness

15.10

3.71

56.04

Factor 8- Office Supplies

12.29

3.33

40.88

Factor 9- Health Benefits

15.10

3.65

55.14

Factor 10- Office Environment

11.52

3.72

42.79

133.39

35.40

473.00

10

Average
Satisfaction(S)

Sum
Table 6

Average
Importance(I)

Sxi

SATISFACTION INDEX FOR THE EMPLOYEES IN MGH (Others)

Satisfaction Index = Sum of Average Satisfaction(S) x Average importance (i)

Sum of Average Importance (i)

473=

= SXi =

13.36

35.40

42

Figure 4 Satisfaction Vs Importance(Others)

6.5.

Correlation between Performance and Satisfaction

One of the objectives of this report was to establish a link between satisfaction level and
the performance of an employee. The satisfaction score for the previous year, 2009, was
used to find a correlation between satisfaction and performance.
As it can be seen from table 3 in the appendix, 0.917798, we can deduce that there is a
positive relationship between satisfaction and performance.

43

44

7.0 Conclusion & Recommendation

Research shows that satisfied, motivated employees will create higher customer
satisfaction and in turn positively influence organizational performance. Convenient work
location, working with young people, opportunities for promotion and career prospects,
fair salary, good policies, job security and dynamic working environment are few
attributes which are critically important from the view point of most of the employees.

Employees have an overall satisfaction index of over 13 which indicates that the
employees are relatively satisfied with the various services being catered by the
company as against their important.
45

It seems that employees of shipping division are the most dissatisfies with satisfaction
score less than 11. Some of the recommendations for improving the satisfaction level
are:
1. Review current annual leave entitlement policy to boost morale & increase
productivity
2. Increase communication / education why the need to have the difference if
there is no plan of standardization
3. Proper canteen or rest room to socialize during lunch or break time; organize
more departmental or interdepartmental outings
4. Explore the implementation of work-life balance programs e.g. flexible
hours, compressed hours, job sharing, etc.

Therefore a comprehensive Employee Satisfaction process can be a key to a

more motivated and loyal workforce leading to increased customer satisfaction
and overall profitability for the organization.

46

References

1. Argyris, C. (1964). Integrating the individual and the organization. New York: Wiley.
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Table of Contents
Executive
Summary
...IX
1.0

Introduction.......................................................................................................... 2

1.1.

Origin.................................................................................................................... 2

1.2.

Problem and Purpose............................................................................................ 2

48

1.3.

Scope.................................................................................................................... 2

1.4.

Limitation.............................................................................................................. 3

1.5.

Background........................................................................................................... 3

1.6.

Methodology......................................................................................................... 4

1.7.

Chapter Summary................................................................................................. 4

2.0

Organizational Breakdown.................................................................................... 6

2.1.

Company Profile.................................................................................................... 6

2.2.

Human Resources Management Issues at MGH....................................................8

2.3.

Swot Analysis........................................................................................................ 9

3.0

Employee Satisfaction: Its Role in Organization Growth......................................12

3.1.

Employee Satisfaction: Definition.......................................................................12

3.2.

When to do an Employee Satisfaction Survey (ESS)...........................................12

3.3.

Importance of ESS.............................................................................................. 13

3.4.

Different Methods............................................................................................... 13

3.4.1. Minnesota Satisfaction Questionnaires (MSQ).....................................................14

3.4.2. Job Descriptive Index (JDI)................................................................................... 15
3.4.3. Job in General Scale (JIG).................................................................................... 15
3.4.4. Satisfied / dissatisfied method............................................................................16
3.4.5. Interview method................................................................................................ 16
3.5.

Steps taken for an Effective Survey....................................................................16

4.0

Literature Research............................................................................................. 19

5.0

Survey Methodology........................................................................................... 21

5.1.

Rational............................................................................................................... 21

5.2.

Data collection tools........................................................................................... 21

5.2.1. Formation of Questionnaire................................................................................. 21

5.2.2. Medium of Survey............................................................................................... 22
5.2.3. The Questionnaire............................................................................................... 22
5.2.3.1.

The Questions............................................................................................... 23

5.3.

Scale Construction.............................................................................................. 26

5.4.

Sampling design................................................................................................. 26
49

5.5.

Pilot Study........................................................................................................... 27

5.6.

Response Rate.................................................................................................... 27

5.7.

The formula......................................................................................................... 27

6.0

ANALYSIS & INTERPRETATION.............................................................................. 30

6.1.

Data Analysis Tools............................................................................................. 30

6.1.1. Z test.................................................................................................................. 30
6.1.2. The KMO & Bartlett's test.................................................................................... 30
6.2.

Data Analysis Steps............................................................................................ 31

6.3.

Listing of Important factors................................................................................. 31

6.4.

Industry Wise Analysis of Satisfaction Level.......................................................33

6.4.1. Shipping Division................................................................................................ 33

6.4.2. Freight Forwarding Division.................................................................................35
6.4.3. Aviation Division................................................................................................. 37
6.4.4. Other Divisions................................................................................................... 38
6.5.

Correlation between Performance and Satisfaction............................................40

7.0

Conclusion & Recommendation..........................................................................42

References.
43

List of Tables

Table 1
The Questions for the survey along with intended
input.26
Table 2
KMO and Bartlett's
Test.31
Table 3
SATISFACTION INDEX FOR THE EMPLOYEES IN MGH (Shipping)
34
Table 4
SATISFACTION INDEX FOR THE EMPLOYEES IN MGH (Freight Forwarding)
.36
50

Table 5
SATISFACTION INDEX FOR THE EMPLOYEES IN MGH (Aviation)
37
Table 6
SATISFACTION INDEX FOR THE EMPLOYEES IN MGH (Others)
.39

List of Figures

Figure 1 Satisfaction Vs Importance (Shipping)

..35
Figure 2 Satisfaction Vs Importance (Freight Forwarding)
..36
Figure 3: Satisfaction Vs Importance (Aviation)
..38
Figure 4 Satisfaction Vs Importance(Others)
.39

Appendix
1. Full Meaning of the Acronyms
2. Tables
Table 1- Correlation
Table 2- Total Variance Explained
Table 3- Rotated Component Matrix
Table 4- Table 4: The factors with relevant questions

51