EXECUTIVE SUMMARY

Over the last year, the Indian economy has been slipping. Companies have been
shaken up and are now faced to wake up from the days of deep slumber. Now, as
the top echelons of the India Inc some to grip with the continuing recession in the
Indian economy and as the prolonged fall in demand across industries becomes
more evident, the mood is subdued. A total change of mildest has taken place, as the
chieftains of corporate India wake up and come to term with reality.

The insurance sector has also not been alienated from the effect from the effects of
widespread recession and is vying hard to cope with the ever changing environment
as well as competitive aura. As a result, the trio convergence, competitive and
consolidation, has been continuously dominating the insurance segment, and the
same phenomenon is envisaged in the forthcoming years as well.

This would however mean wider and better services for the customers. The term
insurance has now acquired a much larger meaning than just dealing with
protection. For the past few years, companies have been actively focusing on
increasing their distribution channels by introducing facilities, like Banca assurance
partners and corporate agency.

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 INDUSTRY PROFILE

Insurance sector in India:

Insurance sector in India is one of the booming sectors of the economy and is
growing at the rate of 15-20 per cent annum. Together with banking services, it
contributes to about 7 per cent to the country's GDP. Insurance is a federal subject in
India and Insurance industry in India is governed by Insurance Act, 1938, the Life
Insurance Corporation Act, 1956 and General Insurance Business (Nationalisation)
Act, 1972, Insurance Regulatory and Development Authority (IRDA) Act, 1999 and
other related Acts.

The origin of life insurance in India can be traced back to 1818 with the
establishment of the Oriental Life Insurance Company in Calcutta. It was conceived
as a means to provide for English Widows. In those days a higher premium was
charged for Indian lives than the non-Indian lives as Indian lives were considered
riskier for coverage. The Bombay Mutual Life Insurance Society that started its
business in 1870 was the first company to charge same premium for both Indian and
non-Indian lives. In 1912, insurance regulation formally began with the passing of
Life Insurance Companies Act and the Provident Fund Act.
Insurance sector in India grew at a faster pace after independence. In 1956,
Government of India brought together 245 Indian and foreign insurers and provident
societies under one nationalised monopoly corporation and formed Life Insurance
Corporation (LIC) by an Act of Parliament, viz. LIC Act, 1956, with a capital
contribution of Rs.5 caror

The (non-life) insurance business/general insurance remained with the private sector
till 1972. There were 107 private companies involved in the business of general
operations and their operations were restricted to organised trade and industry in
large cities. The General Insurance Business (Nationalisation) Act, 1972 nationalised
the general insurance business in India with effect from January 1, 1973. The 107
private insurance companies were amalgamated and grouped into four companies:
National Insurance Company, New India Assurance Company, Oriental Insurance

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Company and United India Insurance Company. These were subsidiaries of the
General Insurance Company (GIC

Types of Insurance:

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

designated beneficiary upon the death of the insured, or to the insured if he or
she lives beyond a certain age.

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

insured.

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

professional/business mishaps.

Challenges facing Insurance Industry:

Threat of New Entrants: The insurance industry has been budding with new
entrants every other day. Therefore the companies should carve out niche
areas such that the threat of new entrants might not be a hindrance. There is
also a chance that the big players might squeeze the small new entrants.

Power of Suppliers: Those who are supplying the capital are not that big a
threat. For instance, if someone as a very talented insurance underwriter is
presently working for a small insurance company, there exists a chance that
any big player willing to enter the insurance industry might entice that person
off.

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

big corporate houses have a lot more negotiating capability with the insurance
companies. Big corporate clients like airlines and pharmaceutical companies
pay millions of dollars every year in premiums.

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 Availability of Substitutes: There exist a lot of substitutes in the insurance
industry. Majorly, the large insurance companies provide similar kinds of
services be it auto, home, commercial, health or life insurance.

COMPANY PROFILE

HDFC standard life insurance company Ltd. Is one of the Indias leading private life
insurance companies, which offers a range of individual and group insurance
solution? It is a joint venture between housing development Finance Corporation
limited, Indias leading housing finance institution and one of the United Kingdom.
Incorporated on 14th august 2000, it was the first life company to be granted a
certificate of registration by the IRDA on the 23rd October 2000. Both the promoters
are well known for their ethical dealings and financial strength and are thus
committed to being a long term player in the life insurance industry all important
factors to consider when choosing your insurer. HDFC group, this is the maximum
investment allowed under current regulation.

HDFC and standard life have a long close relation built upon shared values and
trust. The ambition of standard life is to mirror the success of the parent companies
and be the yardstick by which all other insurance companies in India are measured.

VISION OF THE COMPANY

The most successful and the admired life insurance company, which mean that we
are the most trusted company, the easiest to deal with, offer values for money, and
set the standard in the industry

VALUES OF THE COMPANY

Values that are we observe while we work:

Integrity
Innovation

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 Customer centric
People care one for all and all for one
Team work
Joy and simplicity

MISSION OF THE COMPANY

To be the top new life insurance company in the market. This does not just mean
being the largest or the most productive company in the market, rather it is a
combination of several things like-

Customer services of the highest order

Values for money for customers
Professionalism in carrying out business
Innovation products to cater to different needs of different customers
Use of technology to improve service standards
Increasing market share

HDFC
HDFC is Indias premier housing finance company and the enjoys an impeccable
track record in India as well as in international market. Since its inception in 1977,
the corporation has in maintained a consistent and healthy growth in its operations to
remain the clear market leader in mortgage and banking services in India. Its
outstanding loan portfolio covers over a million dwelling units. HDFC has developed
significant expertise in retail mortgage loans to different market segments and also
has a large corporate client base for its housing related credit facilities. With its
experience in the financial markets, a strong market reputation, large shareholder
base and unique consumer franchise, HDFC was ideally positioned to promote a life
insurance company in the Indian environment.

HDFC is Indias leading housing finance institution and has helped build more
than 2300000 houses since its incorporation 1977.
HDFC is rated AAA by CRISCIL and for the 10th consecutive year.
Stable and experienced management
High services standard
Award the Economic Times corporate citizen of the year award for its long
standing commitment to community development.

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STANDARD LIFE

Standard Life UK, founded in 1825, has been at the forefront of the UK insurance
industry for 180 years by combining sound financial judgement with integrity and
reliability. The company was rated very strong by standard & poors (AA) and
excellent by Moodys (Aa2)

Standard life assurance company

Standard life investment
Standard life international
Standard life health care
Standard life bank

The standard life grouper has been looking after the

financial needs of customers for over 180 years.
It currently has a customer base of around 7 million
people who rely on the company for their insurance,
passion, investment, banking and health care needs.
Its investment manager currently administers 125 billion
in assets.
It is a leading pension provider in the UK, and is rated by
standard & poors as strong with a rating of A+ and as
good with a rating of A1 by Moods

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EMPLOYEE SATISFACTION:

Employee satisfaction is the terminology used to describe whether employees are

happy and contented and fulfilling their desires and needs at work. Many measures
meaning that employee satisfaction is a factor in employee motivation, employee
goal achievement, and positive employee morale in the workplace.

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

towards a work role which he is presently occupying

Employeesatisfaction is a measure of how happy workers are with their job and
working environment. Keeping morale high among workers can be of tremendous
benefit to any company, as happy workers will be more likely to produce more, take
fewer days off, and stay loyal to the company. There are many factors in improving
or maintaining high employeesatisfaction, which wise employers would do well to
implement.

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

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

Many experts believe that one of the best ways to maintain employeesatisfaction is
to make workers feel like part of a family or team. Holding office events, such as
parties or group outings, can help build close bonds among workers. Many
companies also participate in team-building retreats that are designed to strengthen
the working relationship of the employees in a non-work related setting. Camping
trips, paintball wars and guided backpacking trips are versions of this type of team-
building strategy, with which many employers have found success.

Of course, few workers will not experience a boost in morale after receiving more
money. Raises and bonuses can seriously affect employeesatisfaction, and should
be given when possible. Yet money cannot solve all morale issues, and if a company
with widespread problems for workers cannot improve their overall environment, a

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

If possible, provide amenities to your workers to improve morale. Make certain they
have a comfortable, clean break room with basic necessities such as running water.
Keep facilities such as bathrooms clean and stocked with supplies. While an air of
professionalism is necessary for most businesses, allowing workers to keep family
photos or small trinkets on their desk can make them feel more comfortable and
nested at their workstation. Basic considerations like these can improve
employeesatisfaction, as workers will feel well cared for by their employers.

The backbone of employeesatisfaction is respect for workers and the job they
perform. In every interaction with management, employees should be treated with
courtesy and interest. An easy avenue for employees to discuss problems with upper
management should be maintained and discuss problem ms with upper
management should be maintained and carefully monitored. Even if management
cannot meet all the demands of employees, showing workers that they are being
heard and putting honest dedication into compromising will often help to improve
morale.

Satisfaction = f(what employee expects, what she gets, time, back ground of
the employee- social, economic, cultural)

Satisfaction being a continuous process starts from the day 1 and gets reinforced
with time depending on the importance of the various factors considered to be
important for the individual employee. Loyalty towards the organization starts to
develop when the employee continues to get the positive reinforcements on various
important aspects for the duration of the employment.

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Core Values as a Foundation of Employee Satisfaction:

These are the values that have enabled employees to build the leading company in
industry; these are the values that will fuel employees worldwide growth in the
coming years; and these are the values that will drive employees career:

Professionalism Demonstrating professional methods, character and

standards. Treating prospects, clients and co-workers generously and
charitably at all times, but especially in the face of adversity.

Enthusiasm Showing excitement, optimism and passion for your work.

Resourcefulness Acting effectively and imaginatively to produce great

results from scarce resources.

Self-directedness Working independently and autonomously to achieve the

goals set by management.

Ethics Acting in accordance with the accepted principles of right and wrong
that govern the conduct of our profession.

Unselfishness Putting others before yourself, giving your time and effort for
prospects, clients and co-workers. Showing cooperative effort as the member
of a group to achieve a common goal.

Strategic-mindedness Suggesting and implementing long-term

improvements springing from a sequence of short-term tasks.

THEORIES OF EMPLOYEE SATISFACTION

The company's ability to fulfil the physical, emotional, and psychological needs of its
employees. Satisfying the employee's all needs, so that he can give 100% to the

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company. Satisfaction refers to the level of fulfilment on one's needs, desires, and
wants. It can be experienced in various levels or degrees.

Vital ingredients for any employees satisfaction are physical, security, social and
egoistic needs which satisfy individuals psycho social.

1. Physical and Security need: This relates to satisfaction of bodily function like
hunger, thirst, shelter as well as to be secure in the employment.

2. Social Need: Since human beings are dependent on each other. There are
some needs which can be satisfied only when individual is recognized by
other people.

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

do things of his own end to sense of accomplishment

To a considerable extent however physical needs are satisfied off the job. Social
needs are satisfied through personal contacts around the job where egoistic needs
are chiefly satisfied through the job.

EQUITY THEORY:

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

fair/unfair distributions of resources within interpersonal relationships. Equity theory
is considered as one of the justice theories. It was first developed in 1962 by John
Stacey Adams, a workplace and behavioural psychologist, who asserted that
employees seek to maintain equity between the inputs that they bring to a job and
the outcomes that they receive from it against the perceived inputs and outcomes of
others (Adams, 1965). The belief is that people value fair treatment which causes
them to be motivated to keep the fairness maintained within the relationships of their
co-workers and the organization. The structure of equity in the workplace is based
on the ratio of inputs to outcomes. Inputs are the contributions made by the
employee for the organization; this includes the work done by the employees and the
behaviour brought by the employee as well as their skills and other useful
experiences the employee may contribute for the good of the company.

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The idea is to have the rewards (outcomes) be directly related with the quality and
quantity of the employees contributions (inputs). If both employees were perhaps
rewarded the same, it would help the workforce realize that the organization is fair,
observant, and appreciative. This can be illustrated by the following equation:

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

Tolerance, Determination, Enthusiasm, Personal sacrifice, Trust in superiors,
Support from co-workers and colleagues, and Skill

Outcomes: Outputs are defined as the positive and negative consequences that an
individual perceives a participant has incurred as a consequence of his/her
relationship with another. When the ratio of inputs to outcomes is close, than the
employee should have much satisfaction with their job. Outputs can be both tangible
and intangible (Walster, Traupmann & Walster, 1978). Typical outcomes include any
of the following: Job security, Esteem, Salary, Employee benefit, Expenses,
Recognition, Reputation, Responsibility, Sense of achievement, Praise, Thanks, and
Stimuli.

EXPECTANCY THEORY (VROOMS THEORY):

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

explains the processes that an individual undergoes to make choices. In
organizational behaviour study, expectancy theory is a motivation theory first
proposed by Victor Vroom of the Yale School of Management.

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

they believe that:

putting in more effort will yield better job performance

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

increase in salary or benefits

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 These predicted organizational rewards are valued by the employee in
question.

"This theory emphasizes the needs for organizations to relate rewards directly to
performance and to ensure that the rewards provided are those rewards deserved
and wanted by the recipients."

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

Emphasizes the connections among expected behaviours, rewards and
organizational goals

Vroom's theory assumes that behaviour results from conscious choices among
alternatives whose purpose it is to maximize pleasure and to minimize pain. Together
with Edward Lawler and Lyman Porter, Vroom suggested that the relationship
between people's behaviour at work and their goals was not as simple as was first
imagined by other scientists. Vroom realized that an employee's performance is
based on individual factors such as personality, skills, knowledge, experience and
abilities.

Victor H. Vroom introduces three variables within the expectancy theory which are
valence (V), expectancy (E) and instrumentality (I). The three elements are important
behind choosing one element over another because they are clearly defined: effort-
performance expectancy (E>P expectancy), performance-outcome expectancy (P>O
expectancy).

E>P expectancy: Our assessment of the probability our efforts will lead to the
required performance level.

P>O expectancy: Our assessment of the probability our successful performance will
lead to certain outcomes.

Vrooms model is based on three concepts:

1. Valence - Strength of an individuals preference for a particular outcome. For

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

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 2. Instrumentality Means of the first level outcome in obtaining the desired
second level outcome; the degree to which a first level outcome will lead to
the second level outcome.

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

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

to a particular first level outcome.

Vroom says the product of these variables is the motivation.

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

that tie rewards very closely to performance. Managers also need to ensure that the
rewards provided are deserved and wanted by the recipients. In order to improve the
effort-performance tie, managers should engage in training to improve their
capabilities and improve their belief that added effort will in fact lead to better
performance.

MASLOW'S HIERARCHY OF NEEDS:

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

Maslow in his 1943 paper A Theory of Human Motivation. Maslow subsequently
extended the idea to include his observations of humans' innate curiosity.

Maslows hierarchy of needs is most often displayed as a pyramid. The lowest levels
of the pyramid are made up of the most basic needs, while the more complex needs
are located at the top of the pyramid. Needs at the bottom of the pyramid are basic
physical requirements including the need for food, water, sleep and warmth. Once
these lower-level needs have been met, people can move on to the next level of
needs, which are for safety and security.

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

social. Soon, the need for love, friendship and intimacy become important. Further
up the pyramid, the need for personal esteem and feelings of accomplishment take
priority. Like Carl Rogers, Maslow emphasized the importance of self-actualization,

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

Maslow believed that these needs are similar to instincts and play a major role in
motivating behavior. Physiological, security, social, and esteem needs are deficiency
needs (also known as D-needs), meaning that these needs arise due to deprivation.
Satisfying these lower-level needs is important in order to avoid unpleasant feelings
or consequences.

Maslow termed the highest-level of the pyramid as growth need (also known as
being needs or B-needs). Growth needs do not stem from a lack of something, but
rather from a desire to grow as a person

There are five different levels in Maslows hierarchy of needs:

1. Physiological Needs: These include the most basic needs that are vital to
survival, such as the need for water, air, food and sleep. Maslow believed that
these needs are the most basic and instinctive needs in the hierarchy
because all needs become secondary until these physiological needs are met.

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 2. Security Needs: These include needs for safety and security. Security needs
are important for survival, but they are not as demanding as the physiological
needs. Examples of security needs include a desire for steady employment,
health insurance, safe neighbourhoods and shelter from the environment.

Social Needs: These include needs for belonging, love and affection. Maslow
considered these needs to be less basic than physiological and security needs.
Relationships such as friendships, romantic attachments and families help fulfil this
need for companionship and acceptance, as does involvement in social, community
or religious groups.

1. Esteem Needs: After the first three needs have been satisfied, esteem needs
becomes increasingly important. These include the need for things that reflect
on self-esteem, personal worth, social recognition and accomplishment.

2. Self-actualizing Needs: This is the highest level of Maslows hierarchy of

needs. Self-actualizingpeople are self-aware, concerned with personal
growth, less concerned with the opinions of others and interested fulfilling
their potential.

3. TWO-FACTOR THEORY:
4. The two-factor theory (also known as Herzberg's motivation-hygiene theory)
was developed by Frederick Herzberg, a psychologist who found that job
satisfaction and job dissatisfaction acted independently of each other. The
theory states that there are certain factors in the workplace that cause job
satisfaction, while a separate set of factors cause dissatisfaction.
5. The two-factor, or motivation-hygiene theory, developed from data collected
by Herzberg from interviews with a large number of engineers and
accountants in the Pittsburgh area. From analyzing these interviews, he found
that job characteristics related to what an individual does that is, to the
nature of the work he performs apparently have the capacity to gratify such
needs as achievement, competency, status, personal worth, and self-

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realization, thus making him happy and satisfied. However, the absence of
such gratifying job characteristics does not appear to lead to unhappiness a
dissatisfaction results from unfavourable assessments of such job-related
factors as company policies, supervision, technical problems, salary,
interpersonal relations on the job, and working conditions. Thus, if
management wishes to increase satisfaction on the job, it should be
concerned with the nature of the work itself the opportunities it presents for
gaining status, assuming responsibility, and for achieving self-realization. If,
on the other hand, management wishes to reduce dissatisfaction, then it must
focus on the job environment policies, procedures, supervision, and
working conditions. If management is equally concerned with both then
managers must give attention to both sets of job factors. Thus, satisfaction
and dissatisfaction are not on a continuum with one increasing as the other
diminishes, but are independent phenomena. This theory suggests that to
improve job attitudes and productivity, administrators must recognize and
attend to both sets of characteristics and not assume that an increase in
satisfaction leads to decrease in un-pleasurable dissatisfaction. Instead,
dissatisfaction results from unfavourable assessments of such job-related
factors as company policies, supervision, technical problems, salary,
interpersonal relations on the job, and working conditions. Thus, if
management wishes to increase satisfaction on the job, it should be
concerned with the nature of the work itself the opportunities it presents for
gaining status, assuming responsibility, and for achieving self-realization. If,
on the other hand, management wishes to reduce dissatisfaction, then it must
focus on the job environment policies, procedures, supervision, and
working conditions. If management is equally concerned with both then
managers must give attention to both sets of job factors. Thus, satisfaction
and dissatisfaction are not on a continuum with one increasing as the other
diminishes, but are independent phenomena. This theory suggests that to
improve job attitudes and productivity, administrators must recognize and
attend to both sets of characteristics and not assume that an increase in
satisfaction leads to decrease in un-pleasurable dissatisfaction.

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Two-factor theory distinguishes between:

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

positive satisfaction, arising from intrinsic conditions of the job itself, such as
recognition, achievement, or personal growth, and

Hygiene factors (e.g. status, job security, salary and fringe benefits) which
do not give positive satisfaction, although dissatisfaction results from their
absence. These are extrinsic to the work itself, and include aspects such as
company policies, supervisory practices, or wages/salary.

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

Motivation factors are needed in order to motivate an employee to higher
performance, Herzberg also further classified our actions and howand why we do
them, for example, if you perform a work related action because you have to then
that is classed as movement, but if you perform a work related action because you
want to then that is classed as motivation.

The following table presents the top six factors causing dissatisfaction and the top
six factors causing satisfaction, listed in the order of higher to lower importance.

Leading to satisfaction Leading to dissatisfaction

Achievement Company policy

Recognition Supervision

Work itself Relationship with boss

Responsibility Work conditions

Advancement Salary

Growth Relationship with peers

Security

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Herzberg reasoned that because the factors causing satisfaction are different from
those causing dissatisfaction, the two feelings cannot simply be treated as opposites
of one another. The opposite of satisfaction is not dissatisfaction, but rather, no
satisfaction. Similarly, the opposite of dissatisfaction is no dissatisfaction.

DETERMINANTS OF EMPLOYEE SATISFACTION

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

number of factors that influence employee satisfaction. These factors can be
classified into two categories.

A) Organizational Variables:

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

The employees spend major part of their time in organization so there are number of
organizational factors that determine employee satisfaction of the employees. The
employee satisfaction in the organizations can be increased by organizing and
managing the organizational factors.

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

organization as a great place to work.

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

satisfaction. Compensation can be described as the amount of reward that a worker expects
from the job. Employees should be provided with competitive salary packages and
they should be satisfied with it when comparing their pay packets with those of the
outsiders who are working in the same industry. A feeling of employee satisfaction is
felt by attaining fair and equitable rewards.

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

satisfaction. Employee satisfaction is highly influenced by the nature of work.
Employees are satisfied with job that involves intelligence, skills, abilities, challenges
and scope for greater freedom. Job dissatisfaction arises with a feeling of boredom,
poor variety of tasks, frustrations and failures.

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4) Work Environment and Conditions: Employees are highly motivated with good
working conditions as they provide a feeling of safety, comfort and motivation. On
contrary, poor working conditions brings out a fear of bad health in
employees.Employees spend 6 to 8 hours at their workplace every day which makes
a workplace their second home. It is up to the employers to see and make sure that
the office is fully facilitated and is in good working order. It must be well lit and well
ventilated with the right amount of lights, fans, air-conditioning. Cleanliness is of
utmost importance as there are a huge number of workers working at a job place.
The offices, cubicles, rest area, washrooms, kitchen & serving area must be neat
and clean. The more comfortable the working environment is more productive will be
the employees.

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

etc can be referred to as job content. A job that involves variety of tasks and less
monotonous results delivers greater employee satisfaction. A job that involves poor
content produces job dissatisfaction.

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

with which employees view their work. As with motivation, it is affected by the
environment. Job satisfaction is impacted by job design. Jobs that are rich in positive
behavioural elements such as autonomy, task identity, task significance and
feedback contribute to employees satisfaction. Likewise, orientation is important
because the employees acceptance by the work group contributes to satisfaction.
Each element of the environmental system, can attract or detract from job
satisfaction.

7) Organizational Level: The jobs that are at higher levels are viewed as
prestigious, esteemed and opportunity for self-control. The employees that are
working at higher level jobs express greater employee satisfaction than the ones
working at lower level jobs.

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

achievement in the life. It promises and delivers more pay, responsibility, authority,
independence and status. So, the opportunities for promotion determine the degree
of satisfaction to the employees.

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9) Work Group: There is a natural desire of human beings to interact with others
and so existence of groups in organizations is a common observable fact. This
characteristic results in formation of work groups at the work place. Isolated workers
dislike their jobs. The work groups make use of a remarkable influence on the
satisfaction of employees. The satisfaction of an individual is dependent on largely
on the relationship with the group members, group dynamics, group cohesiveness
and his own need for affiliation.

10)Leadership Styles: The satisfaction level on the job can be determined bythe
leadership styles. Employee satisfaction is greatly enhanced by democratic style of
leadership. It is because democratic leaders promote friendship, respect and warmth
relationships among the employees. On contrary, employees working under
authoritarian and dictatorial leaders express low level of employee satisfaction.

11)Communication Methods:When administrative policies and all important

announcements are communicated to the employees, it boosts their morale. The
methods chosen for communication also play an integral role. Some of the methods
that could be used are intranet, monthly newsletters, weekly meetings etc...

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

environment to his/her employee. The security measures outside office include
security guards and parking facility. While inside the office, there must be introduced
a safe environment for male and female employees to work so that if an employee
has to work late hours she/he should feel safe and comfortable working in his/her
office. There must be no discrimination or harassment practiced and the employee
should be given equal opportunity to grow as an individual despite being male or
female.

B) Personal Variables:

The personal determinants also help a lot in maintaining the motivation and personal
factors of the employees to work effectively and efficiently. Employee satisfaction can
be related to psychological factors and so numbers of personal factors determine the
employee satisfaction of the employees

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1) Personality: The personality of an individual can be determined by observing his
individual psychological conditions. The factors that determine the satisfaction of
individuals and his psychological conditions is perception, attitudes and learning.

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

It is because younger age employees possessing higher energy levels are likely to
be having more employee satisfaction. In older age, the aspiration levels in
employees increase. They feel completely dissatisfied in a state where they are
unable to find their aspiration fulfilled.

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

it provides an opportunity for developing ones personality. Education develops and
improvises individual wisdom and evaluation process. The highly educated
employees can understand the situation and asses it positively as they possess
persistence, rationality and thinking power.

4) Gender Differences: The gender and race of the employees plays important
determinants of Employee satisfaction. Women, the fairer sex, are more likely to be
satisfied than their male counterpart even if they are employed in small jobs. The
employee satisfaction can also be determined by other factors like learning, skill
autonomy, job characteristics, unbiased attitude of management, social status etc. It
is important for managers to consider all these factors in assessing the satisfaction
of the employees and increasing their level of employee satisfaction.

HOW EMPLOYEES CAN EXPRESS THEIR DISSATISFACTION?

Top Triggers of Employee Dissatisfaction:

Ambiguity in role and responsibilities

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 Responsibility without accountability. If one has responsibility but no power to
take decisions or accountability one gets de-motivated as one cannot show
results or move things forward.

Sometimes employees set too high unrealistic standards/ expectations for

themselves and that too sometimes lead to against within them. In this case if
they do not have a good mentor, it may lead to a lot of stress and pressure as
inability to achieve unrealistic goals may be due to circumstances beyond
their control.

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

employee angst.

Biased approach/favouritisms/discrimination at work

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

ladder

The employees sent out some signals to express their discontent and the
organization should not take it lightly.

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

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

2) Lack of interest: When an employee who stays at work until his job is done, now
begins to leave at sharp 5 pm no matter his job is done or not.
3) Lack of quality and quantity in work: When an employee is dissatisfied in his
job then automatically his mental state is reflected in his quality of his work.

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

regarding salary, benefits, working hours, working conditions etc.
5) Off the job work: Misusing the company facility for his personal use during
working hours.

22
6) Misbehaviour: An employee may express anger, frequent argument with
association and team member, which come out due to frustration.

Effects of Dissatisfaction:

Recognizing the dissatisfaction is only half the battle. The company should consider
the reason for the burnout and should try to solve those problems because it will
affect other employees also. Otherwise it will affect the company in many ways like

* Low productivity

* High employee turnover cost

* Poor employee morale

WHY IS EMPLOYEE SATISFACTION IMPORTANT?

Purpose / benefits of employee satisfaction include as follows:

1. Importance of employee satisfaction for organization

Enhance employee retention.

Increase productivity.
Increase customer satisfaction
Reduce turnover, recruiting, and training costs.
Enhance customer satisfaction and loyalty.
More energetic employees.
Improve teamwork.
Higher quality products and/or services due to more competent, energized
employees.

23
2. Importance of employee satisfaction for employee

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

They will care about the quality of their work.

They will create and deliver superior value to the customer.
They are more committed to the organization.
Their works are more productive.

Outcome of Employee Satisfaction:

a. Satisfaction and Productivity: Satisfied employees are not

necessarily more productive. Employee productivity is higher in
organization with more satisfied employees.

b. Satisfaction and Absenteeism: Satisfied employees have few

avoidable absenteeism.

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

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

d. Satisfaction and Organization Behaviour: Satisfied employees who

feel fairly treated by and are trusting of the organization are more
willing to engage in behaviours that go beyond the normal
expectation of their job.

e. Satisfied employee increase Customer Satisfaction:

Because they are more friendly, upbeat and
responsive. They are less likely to turnover which
helps build long-term customer relationship. They
are experienced.

24
THE BEST HR PRACTICES THAT SUCCESSFUL COMPANIES
PRACTICE

Why are employees in some companies happy to stick with the company while
others look for a change? The reason is that some companies know how to take
good care of their employees and provide a working environment that helps them
retain their identity, while proving themselves and growing along with the company.

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

Without satisfying an employee's basic needs first, a manager can never expect the
employee to give stellar performance. The basic needs are knowing what is
expected of the employee at work, giving him the equipment and support to do his
work right, and answering him basic questions of self-worth and self-esteem by
giving praise for good work and caring about his development as a person.

The great manager mantra is don't try to put in what was left out; instead draw out
what was left in. You must hire for talent, and hone that talent into outstanding
performance.

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

2. Set the right outcomes, not steps. Standardize the end but not the means. As
long as the means are within the company's legal boundaries and industry
standards, let the employee use his own style to deliver the result or outcome
you want.

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

weaknesses.

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

he is not cast in the right role.

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

25
 6. A manager must excel in the art of the interview. See if the candidate's
recurring patterns of behaviour match the role he is to fulfil. Ask open-ended
questions and let him talk. Listen for specifics.

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

8. Spend time with your best people. Give constant feedback. If you can't spend
an hour every quarter talking to an employee, then you shouldn't be a
manager.

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

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

10. Do not promote someone until he reaches his level of incompetence; simply
offer bigger rewards within the same range of his work.

11. Some homework to do: Study the best managers in the company and revise
training to incorporate what they know. Send your talented people to learn
new skills or knowledge. Change recruiting practices to hire for talent, revise
employee job descriptions and qualifications.

Here are some of the best HR practices that help in the creation of a highly satisfied
and motivated work for.

Work Environment

A safe and happy workplace makes the employees feel good about being there.
Each one is given importance and provided the security that gives them the

26
motivation and incentive to stay. This is usually achieved through internal surveys to
find out whether they are satisfied and if not what they think needs to be changed.

Open Management

Employees dont like the feeling of being kept in the dark about what is happening in
the company. They feel motivated and develop enthusiasm only when the
management opens up to them and discusses the company policies, sales, clients,
contracts, goals and objectives. This encourages participative management. Asking
them for ideas on how to improve will get their creative juices flowing. Being open
about everything related to the company will help in building trust and motivating the
employees. This open management policy can be practiced using several
tools.Performance Incentives

Every good performance is appreciated in the form of a pat on the back, bonuses
or giving some other compensation for a job well done. Organizations that struggle to
keep up with the attrition rate are mostly those that think employees are just doing
their job. Even if it is the employees job, completion in an appreciable manner calls
for an incentive, and this goes a long way in boosting the staff morale. These
incentives can be implemented at the individual as well as the team level and it has
been seen that this works wonders in getting the best out of the employees. But it is
important to keep in mind that these bonuses should not be given without a reason,
unless it is a commitment for annual bonuses or some such thing. Doing so will only
reduce the perceived value of the bonuses

Performance Feedback

27
This is one the methods that is being followed by many organizations. Feedback is
not only taken from the boss, but also from other seniors and subordinates.
Previously, appreciation was only sought from the immediate boss or the
management, but now organizations understand the importance of collecting
performance feedback from several quarters. The opinion of everyone matters,
especially for someone who is in a leadership role at any level. Each person in the
team is responsible for giving constructive feedback. This kind of system helps in
identifying people who can perform well as leaders at higher levels in the
organization. Even the senior level managers can use this system to their
advantage, as a tool to improve themselves.

Employee Evaluation

Every company has an employee evaluation system in place but a good system links
individual performance to the goals and priorities of the organization. This works well
when achievements are tracked over a year. For a fair review of each employee, the
evaluation, apart from being done by the boss, should be done by another person at
a higher level, for whom the employees contribution is important. Ratings can also
be obtained by other employees. This ensures a fair and accurate rating of each and
every employee.

Sharing of Knowledge

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

employees and their work. Keep all the knowledgeable information in central
databases that can be accessed by each and every employee. For example, if an
employee is sent on some training, the knowledge that is acquired by that employee
can be stored in these databases for others to learn from it. Even innovative ideas
that the management deems fit for employees to see, can be stored here for all to
see.

Publicize Good Performances

28
Every company has some employees who outperform others. Such performances
should be highlighted and displayed where other employees can look at them; such
as on the display boards and intranet etc. This will encourage others to give their
best. A proper system should be set up to make a list of high performances at
specific times in a year.

Discussions

Successful organizations nurture ideas and they understand that employees who are
actually working and know the business can provide the best ideas. The
management should have discussions with employees to get these ideas out of
them. There can also be suggestion boxes to capture these ideas. Through this
system, managers can find talented employees and develop them.

Rewards

While recognition of talent is highly important, this recognition has to be made public
and what better way than holding ceremonies and announcing to the whole world
(the employees), the achievemen fellow employee. There can be nothing better for
an employee than the heady feeling from a resounding applause.

The Surprise Factor

Who doesnt like a surprise? Surprise deserving employees when they are least
expecting it. It could be a gift certificate or a small reward of some sort. This surprise
doesnt have to be limited to the best performers, but it can be randomly given to
others as a motivating factor too. Anyone can be given this surprise reward.

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

after all play a major role in the well-being of a company. Making an employee feel
like a million dollars pays in the form of the success of an organization.

OBJECTIVES OF THE STUDY

29
 i. To Measure the satisfaction levels of employees on various factors and give
suggestions for improving the same.
ii. To study the relationship between the personal factors of the employee
(Gender, Designation, Qualification, Age, and Years of Service in a company)
with satisfaction level.

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

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

SCOPES AND PURPOSE OF THE STUDY:

The study of "employee satisfaction" helps the company to maintain standards &
increase productivity by motivating the employees. This study tells us how much the
employees are capable & their interest at work place? What are the things still to be
satisfy to the employees. Although "human resources" are the most important
resources for any organization, so to study on employees satisfaction helps to know
the working conditions & what are the things that affect them not to work properly?
Always majority of done by the machines/equipments but without any manual
moments nothing can be done. So to study on employee satisfaction is necessary

The How and Why of Employee Satisfaction Mapping:

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

focus all their energy on their service or customer experience

However, many companies do this at the cost of employee experience. What does
this mean? Is customer satisfaction not the priority?

It is! But it is important not to lose sight of people who deliver the end product or
service to the customers the employees. These are the people that need a proper

30
support system. Employee satisfaction is paramount as this is what will determine
the success or failure of a company. When employees are satisfied and happy about
working in an organization, the customer is the first person to notice that.

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

employer to ensure they do not have their top talent drained away by the new
competitor on the block. In the current scenario, the decision of hopping by the
employee is triggered by the minutes of issues, such as being ticked off in a not too
friendly tone or even an uneasy office environment.

It becomes important to be aware and understand the signals that are given out by
the employees. The management will do well to catch them before it is too late and
the employee makes the decision to quit. This understanding gives the employers an
edge and gives them the time to take corrective measures if necessary, in order to
prevent talent loss. It could be that the employee is not happy with the environment
or is suffering from a relationship issue with a colleague or a superior. These issues
need to be handled before they get out of hand.

How do employers understand their employees? How do they know what employees
want? How do they map their satisfaction levels? There are several ways of mapping
employee satisfaction.

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

Employers create surveys that have questions on the different parameters related to
the organization. They put forth questions in such a way that every aspect of an
organization is touched and the feedback is returned in the form of an opinion given
by each employee. This helps employers understand how employees think and their
satisfaction levels, and paves the path for problem solving. These surveys can
actually identify problem areas and help come up with solutions to solve the
problems. They reveal the employee attitude on the whole.

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

every employee on a one-to-one basis every few months. Their thoughts are
recorded and trouble parameters identified and taken care of.

31
Exit Interviews: This comes into action after an employee submits his resignation
papers. The problem with exit interviews is that most employees, once they decide to
leave, are not forthright. In an attempt to keep good relations with the employer, they
usually do not tell-all as they ought to. Many of them in fact give personal reasons for
leaving and make the employer feel that all is well on the work front.

Employers who fail at HR and see high attrition rate are those that consider
monetary compensation as highly important. In spite of the fact that employees work
for money, emotional rewards go a long way at keeping the employer-employee
relation strong and have a larger impact on employee satisfaction. Tracing and
improving this satisfaction level has to be top priority for the HR department of an
organization

Employee satisfaction mapping can be the key to a better motivated and loyal
workforce that leads to better organizational output in the form of better products and
services and results in overall improvement of an organization.

If a person is not satisfied by the job he is doing, he may switch over to some other
more suitable job. In todays environment it becomes very important for
organizations to retain their employees. The reason may be personal or professional.
These reasons should be understood by the employer and should be taken care of.
The organizations are becoming aware of these reasons and adopting many
strategies for employee retention.

The basic needs other than routine tasks are to be taken care of on priority before
it becomes late by HR department.

32
 RESEARCH METHODOLOGY:

The methodology followed for conducting the study includes the specification of
research design, sample design, questionnaire design, data collection and statistical
tools used for analyzing the collected data.

a RESEARCH DESIGN: The research design used for this study is of the descriptive
type. Descriptive research studies are those studies which are concerned with
describing the characteristics of a particular individual or a group.

b POPULATION: The total element of the universe from which sample is selected
for the purpose of study is known as population. The population of my research is
the employees of company.

c SAMPLE SIZE: All the items consideration in any field of inquiry constitutes a
universe of population. In this research only a few items can be selected form the
population for our study purpose. The items selected constitute what is technically
called a sample. Here out sample size is 50 employees from the total population to
conduct the study.

33
 DATA & ANALYSIS:

ANALYSIS AND INTERPRETATION:

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

percentage analysis, two-way table, chi-squire test and mean and combined mean
does the analysis of employee satisfaction, which is directly extracted from the
questionnaire. The variations in the extent of the employee satisfaction can be
measured with the variables such as job satisfaction, promotional opportunity,
manager/supervisor co-operation, performance appraisal, compensation etc.

CALCULATION OF SATISFACTORY SCORES:

The Respondents were asked to state their level of satisfaction relating to fifty
factors. Based on their responses the satisfaction score obtained by each
respondent was found out. Points or scores were allocated based on the
response. For each of the factor three levels of satisfaction were assigned
namely high, medium and low. The scores were allocated as Strongly agree =
5
Agree= 4
Neutral = 3
Disagree =2
Strongly disagree = 1

The total scores secured by each respondent were thus arrived at. All the
respondents were classified based on their level of satisfaction. Those who have
obtained up to 13 points were classified under low satisfaction category, respondents
with 14 20 points were classified under medium satisfaction category and those
with more than 21 points were classified under high satisfaction category.

34
NUMBER OF RESPONDENTS AND LEVEL OF SATISFACTION
LEVEL OF SATISFACTION NO. OF RESPONDENTS
High satisfaction 22
Medium satisfaction 18
Low satisfaction 10
TOTAL 50

DATA PRESENTATION WITH SIMPLE PERCENTAGE TABLE:

35
SIMPLE PERCENTAGE TABLE 1:

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

satisfied with their job than men, holding such factors as job and occupational level
constant. In order to know the ratio of gender among employees of company and the
difference in their level of satisfaction, the respondents were asked about their
gender.

GENDER
Gender Frequency Percentage
MALE 41 82

FEMALE 9 18

Total 50 100

INTERPRETATION:

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

SIMPLE PERCENTAGE TABLE 2:

36
DESIGNATION: Designation of the respondents may affect the perception of
employee satisfaction. Top and middle level employees may expect much better
work life and compensation then others. According to designation the respondents
are classified into three categories as under.

DESIGNATION
Designation Frequency Percentage
TOP MANAGEMENT 04 08

MIDDLE 21 42
MANAGEMENT

LOWER 25 50
MANAGEMENT

Total 50 100

INTERPRETATION:

The above table indicates that Majority of the respondents are 50% in lower
management (i.e. Executive and Sr. Exe.), 42% is in middle management (i.e. Asst.
Manager and Manager), and 8% is in top management group.

SIMPLE PERCENTAGE TABLE 3:

37
QUALIFICATION: Qualification of the respondents may affect the perception of
employee satisfaction. Highly educated may expect much better work life then
others. According to educational qualification the respondents are classified into two
categories as under.

QUALIFICATION
Qualification Frequency Percentage
POST GRADUATE 18 36

GRADUATE 32 64

Total 50 100

INTERPRETATION:

The above table indicates that Majority of the respondents are Graduates i.e. 64%
and 36% respondents are post graduates.

SIMPLE PERCENTAGE TABLE 4:

38
AGE: Age is an important factor that has an influence of employee satisfaction.
Hence according to age levels the respondents are classified into three categories.

EMPLOYEE AGE
Employee Age Frequency Percentage
20 30 Yr 19 38

31 40 23 46

Above 40 Yrs 08 16

Total 50 100

INTERPRETATION:

The above table indicates that Majority of the respondents i.e. 46% are in 31-40
years age group, 38% in 20-30 years age group, and 16% are in above 40 years age
group.

SIMPLE PERCENTAGE TABLE 5:

39
YEARS OF EXPERIENCE: The experience of the employees in their job is another
factor affecting the perception on employee satisfaction. Highly experienced may
expect better working conditions and having less experienced satisfy with the
existing one. The respondents are classified into three categories according to their
level of experience as under:

NO. OF YEARS OF SERVICE

Yrs of Service Frequency Percentage
Below 5 Years 11 22

5 10 Years 18 36

Above 10 Years 21 42

Total 50 100

INTERPRETATION:

The above table indicates that Majority of the respondents i.e. 42% are in above 10
years of experience, 36% are in 5-10 years of experience, and 22% are in below 5
years of experience.

DATA ANALYSIS WITH TWO WAY TABLE

40
The score secured by the respondents who falls between the score as up to 13
indicates less satisfaction of the respondents, from 14 20 are got average
satisfaction and above 21 respondents got highly satisfaction leve l

TWO WAY TABLE 1:

Relationship Between Gender And Level Of Satisfaction:

GENDER LEVEL OF SATISFACTION

HIGHLY MEDIUM LOW TOTAL
SATISFIED SATISFIED SATISFIED
MALE 22 (54%) 15 (37%) 4(9%) 41
FEMALE 3 (33%) 3 (33%) 3 (33%) 9
TOTAL 25 20 5 50

INFERENCE:

From the above table the percentage of highly satisfied are in male group followed
by the female group. The percentage of low satisfied is highest in female group.

TWO WAY TABLE 2:

Relationship Between Designation And Level Of Satisfaction:

AGE LEVEL OF SATISFACTION

41
 HIGHLY MEDIUM LOW TOTAL
SATISFIED SATISFIED SATISFIED
TOP 2 (50%) 1 (25%) 1 (25%) 04
MANAGEMENT
MIDDLE 10 (48%) 9 (43%) 2 (9%) 21
MANAGEMENT
LOWER 10 (40%) 10 (40%) 5 (20%) 25
MANAGEMENT
TOTAL 22 20 8 50

INFERENCE:

From the above table the percentage of highly satisfied respondents is more in top
management group i.e. 50%. In medium satisfaction the highest percentage is in
middle management group i.e. 43%. In low satisfaction again top management group
respondents are more.

TWO WAY TABLE 3:

Relationship between Qualification And Level Of Satisfaction:

QUALIFICATION LEVEL OF SATISFACTION

HIGHLY MEDIUM LOW TOTAL
SATISFIED SATISFIED SATISFIED
GRADUATE 17 (53%) 12 (38%) 3 (9%) 32

42
POST 12 (66%) 5 (28%) 1 (6%) 18
GRADUATE
TOTAL 29 17 4 50

INFERENCE:

From the above table the percentage of highly satisfied is more among the
respondents of post graduate group. The percentage of medium satisfied is highest
among the respondents of graduate level group. And the percentage of low
satisfaction is highest among the graduate level group i.e. 9%.

TWO WAY TABLE 4:

Relationship Between Employee Age And Level Of Satisfaction:

EMPLOYEE LEVEL OF SATISFACTION

AGE
HIGHLY MEDIUM LOW TOTAL
SATISFIED SATISFIED SATISFIED
20 30 Yrs 9 (47%) 6 (32%) 4 (21%) 19
31 - 40 Yrs 10 (43%) 12 (52%) 1 (5%) 23

43
Above 40 Yr 4 (50%) 3 (38%) 1 (12%) 08
TOTAL 23 21 6 50

INFERENCE:

The above table reveals that the percentage of highly satisfied is in the above 40
Years age group (50%) and 43 % of highly satisfied in the 31-40 Years age group.
And in medium satisfaction 52% is the highest percentage in 31-40 Years age group
and followed by Above 40 Years age group with 38% of satisfaction. The highest
percentage of 21% in low satisfaction is in 20-30 Years age group.

TWO WAY TABLE 5:

Relationship Between Experience And Level Of Satisfaction:

EXPERIENCE LEVEL OF SATISFACTION

HIGHLY MEDIUM LOW TOTAL
SATISFIED SATISFIED SATISFIED
Below 5 Yrs 4 (36%) 4 (36%) 3 (28%) 11

5 10 Yrs 11 (61%) 6 (33%) 1 (6%) 18

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

44
TOTAL 24 20 6 50

INFERENCE:

The above table reveals that the respondents having 5-10 Years of experience have
derived highest satisfaction level with 61%. The percentage of medium satisfaction is
high in the category of Above 10 Years group i.e. 48%. And in low satisfaction level
the percentage of Below 5 Years of experience is high i.e. 28%.

DESCRIPTIVE STATISTICS TABLE (COMBINED MEAN)

The tables below show the combined mean of the perceived value of employee
satisfaction in relation with factors described. Higher the score, better the
satisfaction of the particular factor.

Sr. Factors Combined Remarks

No. Mean

A1 COMPANY CULTURE 3.96 Excellent

A2 COMPANY POLICY AND ACTIVITIES 4.03 Excellent

45
A3 WORK PLACE AND ENVIRONMENT 4.21 Excellent

A4 COMMUNICATION 4.07 Excellent

A5 TRAINING AND DEVELOPMENT 3.80 Good

A6 PERFORMANCE APPRAISAL 3.84 Good

A7 COMPENSATION 3.62 Good

A8 MANAGER/SUPERVISOR CO-OPERATION 3.85 Good

A9 JOB SATISFACTION 4.05 Excellent

OPPORTUNITY FOR PROMOTION/

A10 CAREER PROSPECTUS 3.84 Good

INTERPRETATION:

The average Employee Satisfaction for the total respondents is 3.93 which indicate
that the employees are relatively satisfied with the various services being catered by
the company. It can be attributed to the fact that the company caters to the various
needs of the employees. It also shows that employees are not satisfied in
Compensation Area (Mean-3.62) compare to all areas. Similarly other areas must be
taken care by company are Training and Development (Mean3.80), Performance
Appraisal and Opportunity for Career Prospectus (Mean-3.84), Manager/ Supervisor
Co-operation (Mean-3.85). Total respondent shows that employees are more
satisfied in Work Placement and Environment (Mean-4.21) followed by

46
Communication Area (Mean4.07), Job Satisfaction (Mean4.05), Company Policy
(Mean4.03) and Company Culture (Mean3.96).

CONCLUSION:

Research shows that satisfied employees are more efficient and productive so they
positively influence organizational performance and work towards fulfilment of
companys objectives and goals. Good Company Culture, Company Policies,
Convenient Work location, Communication , job satisfaction, opportunities for
promotion and career prospects, fair salary are few area which are critically
important from the view point of most of the employees.

47
In conclusion, several themes emerged from the overall result of the survey. The
cause of concern here is that employees have indicated that they need more for their
compensation and from their superiors. Based on the results as a whole, without
significant and meaningful improvement in Compensation, Manager/Supervisor Co-
operation, Training and Development, Performance Appraisal and Opportunity for
career and promotion, the companys current climate could eventually erode the
employees outlook and eventually their commitment to doing their job.

The good news is that employees seem ready and willing to offer their insight and
constructive ideas on how to improve their area within company. They are highly
satisfied with Company Culture, Company Polices, Work Place and Environment
where they are work, Interpersonal Communication in a company and more
important is satisfied by job they are doing.

Employees have an average mean of 3.93 which indicates that the employees are
relatively satisfied with the various services being catered by the company. Major
concern areas are Compensation, Training and Development, Performance
Appraisal, Manager/Supervisor Co-operation and Opportunity for career and
promotion.

The study on employees satisfaction at Panasonic Energy India Co. Ltd. is cased
out with full co-operation of the employees and management. As far as possible with
in the given limits the study is completed with the satisfaction of many peoples. The
data collected are analyzed scientifically. It is assured that the company may get
high boosted moral in the organization provided some of the recommendations made
in the report are carried out.

Further from this survey I hope the organization will be benefited and with the
help of the recommendations given the organization can improve its functioning and
the overall employee satisfaction level in the organization and its performance will
increase.

48
 RECOMMENDATIONS

To improve employee satisfaction, company should do

followings in areas needs improvement:

COMPENSATION (PAY AND BENEFITS):

- Benchmark rates of pay with other companies who compete in the same labor
market. Make adjustments, if you are behind the market i.e. analyze industry trend
and according to trend change in pay structure.

49
- Increase communication/education why the need to have the difference if there is
no plan of standardization.

- Ensure that your employees recognize the value of their total package (bonus
opportunities, health cover, sick pay etc) not just basic pay.

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

designed to raise the salaries of technologists who become credentialed in additional
specialty areas, obtain additional education or take on more responsibility. Sign-on
bonuses encourage technologists to skip from job to job, while retention packages
offer incentives for staying.

Training sessions for supervisors and managers, regular communication session

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

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

systems for annual increment and bonus distribution.

-Conduct effective exit interviews.

TRAINING AND DEVELOPMENT:

- Review approach to induction.

- Review approach to training and development.

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

- Improve infrastructure of training department.

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

trainer with practical exposure.

- Use Training Need Analysis and ask each of the head of the department to act
according to the guidelines given by HRD and send only employees who need desire
skills to improve competency for job.

50
- Managers should utilize one-to-one employee meeting to develop and coach their
staff.

- Implement smart training that is not only relevant but helps broaden employee
experiences and provides development opportunities.

- Accurately defined the employees job description, the skills most important to the
job, discuss the job skill the employees perform well and identify areas that meet
improvement, set mutual and worthwhile goals and coach to improve employee
performance.

MANAGER/SUPERVISOR CO-OPERATION:

-Demonstrate to employees that the company cares about them, wants them to
advance in their careers and will help them satisfy their need for personal growth.

-Walk the talk by not only communicating the corporate strategy but also ensuring
that it is applied consistently throughout the company, including making the reward
system consistent with strategic goals.

-Watch for and eliminate all inconsistencies between promoting a belief in employees
and managerial behaviour or policies that undermines the commitment.

51
-Top management to clearly explain responsibilities and expectations regularly stress
the importance of hard and soft skills and hold supervisors accountable for
developing in these areas.

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

sure your managers are not driving technologists away. Give them the training they
need to develop good supervisory and people-management skills.

- Weed out poor managers because many employees leave their jobs because they
are unhappy with their bosses remember people dont leave their jobs, they leave
their managers.

PERFORMANCE APPRAISAL:

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

- Implement 360 degree appraisal system so that from top to bottom everyone
included giving feedback for an employee

- Encourage your employees to contribute to the success of the business. Ask for
their opinions and suggestions.

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

improved. Reward the good ones.

- Encourage your line managers to 'catch people doing things right' and give positive
feedback when people do things well.

- Conduct regular performance reviews to identify employees' strengths and

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

OPPORTUNITY FOR PROMOTION AND CAREER:

- Provide employee well defined career paths (including succession plan), mentors
and tuition remuneration for job-related education.

52
- Provide employee a clear professional development plan gives employees an
incentive to stick around.

- Train supervisors in coaching and performance management skills.

- Implement a good promotion process, soft skills training development before and
after promotion.

- Implement job rotation method so that every employee can get an opportunity to
access other department and understand responsibilities and problems face by other
departments.

- Top management identifies employees and prepares them for next higher position
by providing necessary training and education.

- Identify your employees' talents and then encourage them to stretch their abilities
into new areas.

OTHER RECOMMENDATIONS:

- Give employees the best equipment and supplies possible. Ensure that your
equipment is properly maintained, and regularly upgrade machinery, computers and
software. In addition, provide employees with the highest quality supplies you can
afford.

- Show your employees that you value them. Recognize outstanding achievements
promptly and publicly, but also take time to comment on the many small contributions

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your staffs makes every day to the organization's mission. Don't forget these are
the people who make you look good.

- Be flexible. Today's employees have many commitments outside their job, often
including responsibility for children, aging parents, chronic health conditions and
other issues. They will be loyal to workplaces that make their lives more convenient
by offering on-site childcare centres, on-site hair styling and dry cleaning, flexible
work hours, part-time positions, job-sharing or similar practices.

- Make room for fun. Celebrate successes and recognize when milestones are
reached. Potluck lunches, birthday parties, employee picnics and creative contests
will help remind people why your company is a great place to work.

- Reduce the paperwork burden. If your technologists spend nearly as much time
filling out paperwork, it's time for a change. Paperwork pressures can add to the
stress and burnout that employees feel. Eliminate unnecessary paperwork; convert
more paperwork to an electronic format; and hire non-tech administrative staff to
take over as much of the paperwork burden as is allowed under legal or regulatory
restrictions.

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

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

LIMITATIONS

Each and every task has certain limitations and hurdles in the course of its
performance. But this does not mean that the task should stick up whenever certain
limitations come up. The need is to try ones level best to solve incoming limitations.
Few limitations of the project are enumerated below:

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 This study is only limited to this company.

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

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

Some respondents hesitated to give the actual situation; they feared that
management would take any action against them.

It does not ensure proportionate representation to all constituent group of

population.

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

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 QUESTIONNAIRE

Employee Satisfaction Survey

Company Name: HDFC Standard life insurance

Department: Qualification:

Designation: Sex (M / F):

No. Of Years of Service: Age:

Please take a few minutes to complete this survey. You are the person who can give
us fair guidance without any bias. Based on your personal experience in this
organisation, please fill this form to help us building our organization much better &
professional. Share your views by putting a " mark in the boxes against each
question

S.N. Statement Ratings

5 4 3 2 1

A1 COMPANY CULTURE

The top management of this organization

makes effort to identify and utilize the potential
1 of the employee.

Top Management shows genuine interest in the

well being of all employees and even support
2 them during personal emergencies.

Employees are encouraged to suggest new

3 ideas about their work.

4 Weaknesses of employees are

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 communicated to them in a non-
threatening way.

In this organization, difference of opinion with

5 seniors is taken positively.

A2 COMPANY POLICY AND ACTIVITIES

Employees are encouraged to participate in

6 making decision which affects their work.

The company provides excellent benefits and

welfare facilities for the employees and their
7 families.

Delegation of authority to encourage juniors to

develop handling higher responsibilities is quite
8 common here.

People lacking competence in doing their jobs

are helped to acquire competence rather than
9 being left unattended.

Management takes sincere efforts to identify

10 and utilize employees full potential.

A3 WORK PLACE AND ENVIRONMENT

The psychological climate in this organisation is

very conducive to any employee interested in
developing himself by acquiring new knowledge
11 & skills.

12 I believe that the work atmosphere is friendly.

13 I feel I can trust what company tells me.

I am encouraged to experiment and try out

14 new / creative ideas.

15 My working environment is satisfactory.

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A4 COMMUNICATION

Management communicates its goals &

16 strategies effectively to its employees.

I get all information about the events and affairs

of the company which have an effect on my
17 work.

I am kept informed about the activities that go

18 on in my organization.

I have a good understanding about the

19 companys various benefit plans/schemes.

20 I am satisfied with communications generally.

A5 TRAINING AND DEVELOPMENT

We have good Training & Development

21 infrastructure and facilities.

I have received all the training I need to

22 effectively carry out my job.

Every employee is given a fair chance, by the

head of the concerned department to attend the
23 workshops and training programs.

Company provides as much initial training as

24 needed.

25 Employees take training seriously and learned.

A6 PERFORMANCE APPRAISAL

Performance appraisal reports in our

organisation are based on objective
26 assessment and adequate information.

My performance for every year is reviewed and

27 discussed with me.

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

29 I feel my services are well recognized.

My appraisal helps me in planning for the

30 future.

A7 COMPENSATION

I agree that the Companys compensation

package matches similar organizations in the
31 industry.

I feel, I am paid fairly considering my

32 qualification, experience, and responsibilities.

I am rewarded fairly considering my dedications

33 and performance on the job given to me.

All the allowances and advances are provided

34 on time.

Individual initiative is encouraged in the

35 Company.

A8 MANAGER/SUPERVISOR CO-OPERATION

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

My Manager/Supervisor gives appreciation to

37 good work done by me promptly.

My Manager/Supervisor encourages my
38 development...

My Manager guides me and prepares me for

39 future responsibilities.

40 My manager always treats me with respect.

A9 JOB SATISFACTION

59
 41 I am trusted to do my job.

42 I am provided adequate facilities to do my job.

I am clearly informed about what exactly is

43 expected of me regarding my work.

44 I feel totally secure in this job.

My job is a good use and application of my

45 skills, experience and qualifications.

A10 OPPORTUNITY FOR PROMOTION / CAREER PROSPECTUS

I have opportunities for advancement in my

46 current organization.

I have access to opportunities in different areas

47 within my organization.

I am happy with the formal career planning that

48 happens in my workplace.

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

If I do good work, I can count on career growth

50 in the Company.

Date: ___________

Thanks for your valuable time and response

60
 BIBLIOGRAPHY

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

Companies, New Delhi.

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

Chand & Sons, New Delhi.

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

New Age International Publishers

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

Stephen Robbins : Essentials of Organizational Behaviour, Prentice Hall

International Edition

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 First, Break All The Rules (What The World's Greatest Managers Do
Differently by Marcus Buckingham & Curt Coffman )
- Reviewed by Regine P. Azurin and Yvette Pantilla

Internet Sites

o www.humanresource.hrvinet.com

o www.hrblogs.com

o hrmba.blogspot.com

o www.citehr.com

o www.wikipedia.org

o www.search.ebscohost.coms

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