EXECUTIVE SUMMARY

In any effective organization, the success story of it depends on the way it handles its human aspects of management. This resource of the organization is very dynamic and has an ever changing face attached to it. With the innate quality of uniqueness and very much sensitive to an environment, managing the human resource is a biggest challenge.

Without much saying, any person with fair knowledge would understand that they are various processes involved in handling the human resources. This would start from recruitment to various aspects in retaining the selected ones.

M/s. K.N.K. SWAMY and COMPANY a leading construction company situated in Bangalore was experiencing a problem regarding employee satisfaction from past one year. In spite of giving importance to employees personal values, good pay package and growth opportunities, the company found that the attrition rate did not recede. It was observed that employees were dissatisfied with the compensation were this prompted me to undertake my study on the same problem. This study aims at analyzing the reasons for the employee satisfaction level in the organization. The necessary data was collected by meeting the employees and with the help of questionnaire which is followed by personal interviews helped in gathering the information.

The report opens with the theoretical background of employee satisfaction, need for this study and follows analysis and interpretation of the results, findings of the study, conclusions derived thereof and some suggestions for increasing satisfaction level of the employees in the organization.

The information so collected has been analyzed and updated. The entire report has been written in a lucid manner and with the support of relevant illustrations. The questionnaire analysis done in this report is been presented in form of charts and tables. The qualitative analysis is based on my interaction with employees and other officers in the organization. For studying about employees satisfaction in various departments, facilities were provided at M/s K.N.K SWAMY & Co., by providing needed information. Depending on this I have

made my own suggestion and give my own ideas to make the practice of employee satisfaction and effective in the company.

Chapter-1 INTRODUCTION

Employee Satisfaction: An Overview

Employee retention and turnover are the most objective measures of employee satisfaction/dissatisfaction in organizations. Common estimates of turnover costs range from $10,000 to $40,000 per person, depending on the position; while retention actually increases revenues.

Many companies and organizations feel that employee compensation is the dominate factor in employee satisfaction. Consequently, employers attempt to buy employee satisfaction with increased pay and benefits. In todays competitive business environment this approach can only be taken so far. Fortunately, there is a must less expensive way to create greater employee satisfaction. It is virtually cost free and it increases productivity which significantly improves the bottom line.

William M. Mercer, Inc. found in surveying 206 medium to large companies in 1998 that in organizations with high turnover, compensation was the most common reason given for dissatisfaction. However, in companies with very low turnover 40% of the respondents perceived emotional factors (work satisfaction, good relationships with managers and other employees) as completely motivating their retention as compared to 21% attributing financial factors (satisfaction with compensation and benefits) as completely motivating their retention. [Note: compensation and benefits satisfy the two lowest needs of Maslows Hierarchy, while the emotional factors satisfy the three upper needs of the Hierarchy] One psychologist has identified that euphoric feeling a person has when falling in love with someone as feeling much better about yourself when you are with that person than when you are not. How a person feels about themselves is their self-esteem. So when people fall in love their self-esteem is higher when they are around the person of their affection Creating an environment in the workplace that results in employees feeling better about them when they are in it, than when they are not, results in similar love of their work. A work environment that constantly raises an employees self-esteem, above that she/he experiences anywhere else in their life, will be where she/he most desires to spend their time and yields very high employee satisfaction with their job and costs next to nothing. 3

Principle: People do more of what they enjoy and less of what they dont enjoy! Consequence: People who enjoy working are more productive!

Creating such a work environment is the responsibility of all corporate or organizational leadership, but most critically it is the primary job of the person the employee reports to directly. There are no business schools that teach how to create such an environment and very, very few training programs that result in the behaviors necessary to do so. While a very small number of managers of people have found and refined the skills that produce such a high satisfaction environment, these are skills that anyone can learn and master through conscientious and consistent practice.

Employees Satisfaction can statistically be proved that it is directly correlated to customer satisfaction. Research studies reveal that in todays, Competitive world retaining employees is a challenge to the organizations. Further, if the employees are happy and satisfied, they can better serve the customers and organization too.

One of the crucial and important aspects to be considered in every organization is that what are their employees attitudes or perception towards their jobs. Therefore, employees satisfaction enthralls or tracts the return on organizations investments in keeping employees happy in many ways like; salaries, quality of culture, a healthy work environment, quality of supervision, communication, relationships, recognition, teamwork, co-operation, motivation, training, employment security etc., The center for organization development had conducted a study on getting the most out of employee satisfaction: Indian experiences and concluded: Improve constantly the system of production and service Eliminate work standards that prescribe numerical quotas Create a sense of pride in the work the employees do Institute vigorous program of education and retraining Adopt and institute modern methods of supervision and leadership Drive out fear Breakdown the barriers between the departments and individuals Eliminate the use of slogans, posters and exhortations. 4

Definition and Scope of Employees Satisfaction:

It refers to an individuals general attitude towards his or her job. The employees satisfaction helps to assess employees satisfied or dissatisfied level towards his or her job. It is closely linked to the psychological approach to motivation. Employees satisfaction and customer satisfaction are linked. Hence employees satisfaction plays a crucial role in all aspects of the organization and helps to retain the employees in the changing competitive world. Therefore, measuring employees satisfaction towards his or her job is very important. Hence, employees satisfaction means, it is aimed at gauging employees attitudes towards their jobs. It can be defined as taking preservative actions as it is a proactive tool, which keeps the CEO, informed about the state of his organizations employee management system.

The State Of Employee Satisfaction: "People don't leave their jobs, they leave their managers."
Although committed and loyal employees are the most influential factor to becoming an employer of choice, it's no surprise that companies and organizations face significant challenges in developing energized and engaged workforces. However, there is plenty of research to show that increased employee commitment and trust in leadership can positively impact the company's bottom line. In fact, the true potential of an organization can only be realized when the productivity level of all individuals and teams are fully aligned, committed and energized to successfully accomplish the goals of the organization. As a result, the goal of every company should be to improve the desire of employees to stay in the relationship they have with the company when companies understand and manage employee loyalty - rather than retention specifically - they can reap benefits on both sides of the balance sheet i.e., revenues and costs.

On the revenue side of the balance sheet, loyal and committed employees are more likely to go "above and beyond" to meet customer needs and are highly motivated to work to the best of their ability. Both of these traits are crucial for continued customer commitment and ongoing revenue and growth for the company. On the cost side, loyal employees stay longer, resist competitive job offers, do not actively look for other employment and recommend the company to others as a good place to work. These four behaviors positively influence the cost side of the balance sheet because they are leading indicators of employee retention. The longer companies keep their employees, the longer they can avoid having to pay to replace them. In other words, rather than focusing only on retention (that is, trying to retain employees who have already decided to leave), organizations should proactively recognize the benefits of understanding, managing and improving employee loyalty. The most successful organizations are those that can adapt their organizational behavior to the realities of the current work environment where success is dependent upon innovation, creativity and flexibility. Additionally, the dynamics of the work environment have to reflect a very diverse population comprised of individuals whose motivations, beliefs and value structures differ vastly from the past and from each another. Arguably, the most valuable, but also volatile, corporate asset is a stable workforce of competent, dedicated employees, since such an employee base gives companies a powerful advantage; depth of knowledge and organizational strength. One of the key steps to understanding and improving employee loyalty is by acknowledging the importance of the following factors in building loyalty and satisfaction:

Broadly-defined responsibilities rather than narrowly-defined job functions Effective and regular performance evaluations, both formally and informally A corporate emphasis on employee learning, development and growth Wide-ranging employee participation in the organization as a whole

Typically, a combination of factors influences employees' decisions to stay at their current job. Contributing factors include satisfying work, a sense of job security, clear opportunities for advancement, a compelling corporate mission combined with the ability to contribute to the organization's success, and a feeling that their skills are being effectively used and 6

challenged. Specifically, employees who enjoy their work identify themselves with their employer and perceive that the company is flexible regarding work and family issues also intend to stay with the organization. Today, employee loyalty needs to be earned, rather than assumed, and must be specific, rather than general - employees are looking at their employment as a means of achieving personal goals rather than simply being the "good corporate soldier" of the past. This means that companies need to express and act on a commitment to develop employees' career objectives by introducing initiatives that make employees believe that their current job is the best path to achieving their career goals. In particular, consider the following elements of effective strategies designed to build loyalty and retain key employees:

Include opportunities for personal growth and invest heavily in the professional development of the best people in the organization.

Provide employees with well-defined career paths (including a succession plan), mentors and tuition reimbursement for job-related education.

Train employees, even if it makes them more attractive to the competition. Without seeing an opportunity on the horizon, few high potential employees will stay with a company and allow themselves to grow stagnant.

Acknowledge non-work priorities by recognizing and responding to employees' needs for greater balance in their lives, since employees will develop loyalty for organizations that respect them as individuals, not just as workers.

Another approach to the issue of loyalty is to consider the value of the five "I's": Interesting work: No one wants to do the same boring job over and over, day after day. Although any job will require some repetitive tasks, all jobs should include at least some parts that are of high interest to employees. Information: Information is power and employees want to have the information they need to know to do their jobs better and more effectively. And, more than ever, employees want to know how they are doing in their jobs and how the company is performing overall. It is vitally important to open the channels of communication in an organization to allow

employees to be informed, ask questions, and share information and to inspire them to share the vision of the company. Involvement: Managers today are faced with an incredible number of opportunities and problems and, as the speed of business continues to increase, the amount of time that they have to make decisions continues to decrease. Involving employees in decision-making, especially when the decisions affect them directly, is both respectful and practical. Not only do those closest to the problem typically have the best insight as to what to do, involving them in decision-making will increase their commitment and improve the success of implementing new ideas or change. Similarly, management needs to follow through on promises and live the values they preach. Independence: Few employees want their every action to be closely monitored. Most employees appreciate having the flexibility to do their jobs as they see fit. Giving employees latitude increases the chance that they will perform as desired, as well as bringing additional initiative, ideas, and energy to their jobs. Employees also need to be encouraged to achieve their best potential. Increased visibility: Everyone appreciates getting credit when it is due. The occasions to share the successes of employees with others are almost limitless. Giving employees new opportunities to perform, learn, and grow as a form of recognition and thanks is highly motivating for most people. Another important strategy for improving loyalty is to implement a systematic process of performance reviews, since effective reviews can simultaneously increase employee morale and productivity. To achieve their primary objectives, such as improving the working relationship between employee and supervisor, performance reviews should be structured so as to:

Accurately define the employee's job description, including a focus on the skills most important to the employee's job

Discuss the job skills the employee performs well on and identify areas that need improvement so as to fairly summarize their most recent job performance

Set mutual and worthwhile goals, which are the heart of a professional growth plan Provide useful coaching to improve the employee's performance 8

With these objectives, performance reviews can make an important and ongoing contribution to furthering each employee's career. Related to the role of performance reviews, another important influence on employee satisfaction is a sense of being led by capable management, with both immediate supervisors and senior management having a clear sense of direction for the organization. One of the forces that disconnect employees from their companies is management's ever-changing corporate focus. By introducing yet another corporate initiative, employees come to question the credibility of management and the focus of the company. They begin to wonder what the company stands for, where it's going, and if the latest initiative is yet another "here today, gone tomorrow" program. Employees are therefore skeptical at best - and cynical at worst - about their company's perpetually shifting focus. Without a constant, long-term strategic vision, organizations risk confusing, bewildering, depressing and disconnecting with their employees. Within an environment of ever-changing focus, employees find it hard to see a strong link between their role and the company's core purpose. Alternatively, communicating a company's shared vision and establishing a shared mission with employees are important means of enhancing employee commitment. Employees feel a stronger sense of job satisfaction when they agree with the strategic decisions, especially when they are involved in developing the strategic direction. In addition to establishing and communicating a strategic vision for the company, loyalty also requires building a partnership between management and employees and creating an environment of mutual respect, involvement and open communication. Maintaining open lines of communication with employees will enable senior management to keep up with their changing needs into the future. Recent studies have shown that managers, whether front-line supervisors, project leaders, team captains or senior management, actually have more power than anyone else to reduce unwanted employee turnover because the most important factors driving employee satisfaction and commitment are largely within the direct manager's control. These include providing recognition and feedback regularly, offering opportunities to learn and grow, helping to ensure fair compensation reflecting an employee's contributions and value to the

organization, fostering a good work environment, and above all, recognizing and respecting the uniqueness of each employee's competencies, needs, desires and working style. At the supervisory level, though, managers also need to strike the right balance of using a more employee-centered leadership style, under which their employees are welcome to participate in making decisions (i.e., "leadership through collaboration"), but without going so far as to abdicate responsibility for decision-making. When the participatory approach becomes excessive, employees may feel that they are being given more responsibility than their positions should require and, thus, can feel overworked or underpaid for the work expected. It is also critically important to recognize that, when employees indicate the intention to leave, they generally do - this means that attrition can be predicted through survey measurement, which gives employers an important "window of opportunity" to foresee and address talent loss within specific departments so as to change the environment that is causing employees to leave. Research has indicated that the biggest gaps between those who intend to stay and those who intend to leave can be best summarized as (1) the opportunity for employees to use their skills effectively and (2) differing perceptions of the leadership ability of senior management. In conjunction with these key differences, projections have shown that improvements in the areas directly related to turnover can lead to a potential 5% decrease in actual turnover, which has real financial benefits for the organization. Did you realize that employees change jobs more for career options and training opportunities than they do for money and benefits? In fact, seeking opportunities for the long term rather than just the current job has much more influence over job change than monetary compensation - it is evident that money is a satisfier, but not a driver, of employee loyalty. Similarly, it is not salary that makes a committed employee. Compensation packages, while important, have become secondary to the employees' desire to be challenged, to contribute, to be recognized and to know how they will fit into the organization. However, this is not to claim that pay and benefits are unimportant. There are strong correlations between compensation, benefits plans and employee commitment. It should not be surprising, though, that the compensation plans with the strongest link to employee commitment are those that give employees a stake in the future success of the organization. Compensation plans in general help drive commitment when employees understand the 10

program and believe it to be fair. It is also worth noting that the way an organization distributes money indicates what management really wants including sending a message to employees as to whether the company truly pays for performance. In short, then, there are five actions organizations should take to reduce attrition and improve employee satisfaction: 1. 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. 2. "Walk the talk" by not only communicating the corporate strategy but by also ensuring that it is applied consistently throughout the organization, including making the rewards system consistent with strategic goals. 3. Watch for and eliminate all inconsistencies between promoting a belief in employees and managerial behavior or policies that undermines that commitment. 4. Fight attrition with smart training that is not only relevant but helps broaden employee experiences and provides development opportunities. 5. Weed out poor managers because many employees leave their jobs because they are unhappy with their bosses - remember the adage that "people don't leave their jobs, they leave their managers."

The role of employee satisfaction and the costs of turnover:

There is substantial academic and business literature demonstrating the importance of employee satisfaction in building loyalty to an organization and, by extension, reducing employee turnover. In this case, turnover is defined as an employees voluntary decision to leave an organization, thereby representing an exercise of choice on the part of the employee and reflecting some form of decision process on the part of the employee. Overall, there are three key reasons why employee retention should be seen as having broader business implications, rather than simply being a concern of HR alone: 1. Turnover is expensive, including both tangible and intangible costs, with estimates of the costs of turnover ranging from 50% - 200% of an employees annual salary. 2. Excessive employee turnover is often cited as a key barrier to high quality service.

11

3. Turnover reduces the productivity of an entire work unit/team, particularly as a result of uncompensated extra workloads, the stress and tension caused by turnover and, as a result, a decline in corporate morale. The costs of employee turnover can be estimated in a number of ways, depending on whether the calculation includes both direct and indirect costs. The direct costs of turnover include separation and replacements costs as follows:

Separation costs

Severance costs Unemployment insurance premiums Outplacement fees.

Replacement costs

Advertising costs Training costs Interviewing time Pre-employee assessments Relocation costs.

Indirect costs include the harder-to-measure variables such as the loss in organizational knowledge and skills, reduced corporate growth through lower productivity and the negative impact on organizational commitment that frequent turnover can have among the employees who stay at the organization. These indirect costs can often be greater than the direct costs of turnover.

Employee Satisfaction Surveys:

It is worth while examining employee satisfaction surveys in more detail given that they are the most popular type of employee research undertaken in the U.S.

12

Census or Sample

Having defined your survey objectives, the next thing to consider is whether there is a need to survey all employees (census) or just a subset of them (sample). Evidence overwhelmingly suggests that a census survey is most appropriate for employee satisfaction surveys. This is mainly due to the need to drive through improvement action planning at local levels which requires frontline managers to be provided with their own reports. By undertaking a sample survey, there may either be not enough responses to provide a report or the number of responses may represent too small a proportion of the whole employee population to be considered statistically robust.

Communication

Employee buy-in is critical to the success of the survey. If they believe that improvements will result from the survey, they are more likely to participate by completing it and will become actively involved in the follow-up improvement action planning process. Communication is critical to getting this employee buy-in, particularly at the outset of the program and we recommend developing a communications plan that covers the following stages:

Pre Survey During the Survey Post Survey Between Surveys

When developing this plan, there is a need to consider the different messages that you want to give to the different audiences and what are the most appropriate communication channels for reaching those audiences. For example, it is important for frontline managers and immediate supervisors to be positive role models for the survey so that when they interact with their staff, they demonstrate active encouragement of the survey, a commitment to administer it properly and to act on the results. This is vital because employees are normally heavily influenced by their immediate supervisors or managers. If they do not think that their manager/supervisor believes in the survey, then neither will they.

13

Maximizing the Workforce Using Employee Satisfaction Survey:

The employee satisfaction survey is an efficient and practical tool that organizations can use to maximize the performance and engagement of their workforce. The attitudes and motivations of your employees play a crucial role in influencing motivation, productivity, and overall success. Smart companies realize the importance of understanding the attitudes, behaviors, and motivations of staff and yielding this power to maximize their workforce.

Reasons to conduct employee satisfaction survey in the organization:

If your company has never launched an employee satisfaction survey or it has been more than six months since a survey was last deployed, there are some solid reasons to update your workforce assessment: Assess your current organizational culture and climate. Gauge the level of employee engagement in your workplace. Ensure your organization is operating ethically and honestly. Determine the success rate of past objectives. Examine communication levels throughout teams and coworkers. Investigate work/balance issues. Uncover any job security issues of your workforce. Gain insight into the relationships of employee and manager.

Most employees want to feel like their opinions count and their job knowledge plays a role in helping the organization succeed. The simple act of launching an employee satisfaction survey begins to send the message your workforces opinions are valued and appreciated.

Steps for successful employee satisfaction survey:

Identify the organizational topics you wish to gain insight into. Begin by targeting any rumbling issues or hot topics within your organization. By carefully choosing the organizational topics you wish to measure you can develop a focused employee satisfaction survey tailored to the present needs of your organization.

14

 Protecting staff anonymity is crucial. In order for honest communication to occur, the feedback and answers received from your employee satisfaction survey must be anonymous. Otherwise, employees may not feel comfortable providing candid feedback because they fear being identified by management. Using a 3rd party vendor to host your survey can help to ensure staff that their identities are safe. Respond to your survey in a timely manner. Its worse to launch an employee satisfaction survey and never respond to the concerns of your staff then not launching a survey at all. Organizations are not expected to correct every concern raised in the employee satisfaction survey, but it is crucial to let your staff members know their voices have been heard.

Advantages of web based employee satisfaction survey:

Web based survey systems have quickly proven themselves to be a convenient and effective surveying method for the following reasons: With internet technologies continually improving, web based surveys are now less expensive, more interactive, and easier to deploy than their paper predecessors. Web based surveys offer organizations a high level of survey customization while still maintaining a low price point. Web based surveys often enjoy a higher response rate and shorter response time. Web based surveys allows for response/report viewing while additional surveys are still being submitted. Often, the reports from web based surveys are made available to survey administrators in real time. If desired, the data from web based surveys can be easily imported into outside data analysis programs. Using a web based, customized employee satisfaction survey is a great, cost effective tool for better understanding the feelings, attitudes, behaviors, and motivations of your organizations workforce. A well designed survey will identify the organizational issues and concerns affecting staff members, as well as give an indication to the level of employee engagement present within your organization. Armed with this powerful information, your organization is

15

now able to address any discovered issues to maximize the motivation and productivity of your employees.

Importance of Employee Satisfaction Surveys and Employee Exit Surveys:

In a competitive world with the need for businesses to be more streamlined and productive a company can often find itself with a workforce working under pressure resulting in low moral and high staff turnover. The benefits of a company having a highly motivated workforce can be considerable and the two goals of having a workforce that is both motivated and productive should not be regarded as being mutually exclusive to one another. Left unattended employers run the risk of alienating their employees, events can cause employee frustrations to boil over resulting in employers finding themselves on the back foot, faced with a problem that cannot be ignored. Ideally employers would take time to understand the needs of their employees and learn from their experiences of working on the front line, but employers are often themselves tied up day to day fighting their own fires. By automating much of the intelligence gathering process and providing the findings in a format that can be readily analyzed online surveys provide employers with an efficient, effective and low cost method to help achieve a pleasant working environment, where staff satisfaction and productivity is high.

Dissatisfied & Unproductive

The are many reasons why employees may be dissatisfied with their job and more often than not staff frustration is channeled into a demand for higher salaries and less hours. Employers, who tackle these issues head on, making it all about salary and hours, will often find themselves dealing with the symptoms and not the root cause.

Communication
It is important for any company to encourage communication. Company's that make communication between personnel and management difficult, or take the view that if personnel have a problem they will say something, can often delude themselves into thinking 16

their workforce is content when it is not. It only takes one small problem and one disgruntled employee to feel aggrieved for an entire workforce to develop a destructive them and us attitude.

Improving Communication
One to one meetings between employer and employee would be ideal but in practice only practical for very small businesses. Regular meetings between management and worker representatives are good in theory but they often become talking shops and can begin to loose their edge as the participants become familiar with one another and the forum runs the risk of being hijacked by the more extrovert personalities. Suggestion boxes are useful but can be viewed as token efforts by management as they wait for personnel to highlight a problem. Newsletters can be a positive step, but their purpose is generally to inform and not discuss issues.

Initiativeness
An employee satisfaction survey run on a regular basis is able to ask each employee specific questions and represents a pro-active management initiative where the whole workforce can be consulted on various issues. Surveys are able to provide a level playing field between the quieter and more vocal employees. Consultation should not be seen as a sign of weakness, a confident manager will take counsel from all quarters before making a decision. By issuing a survey and keeping the initiative the employer is able to tackle problems from a position of strength as opposed to waiting for problems to fester and then develop out of proportion. Small problems left unresolved can lead to a situation where a minor problem might break the camels back and the workforce mood change from positive to negative over night.

17

Job Satisfaction
There are many elements that go towards providing an employee with job satisfaction, from the working environment, working methodology, working ethos, company ethics to having good and effective management. Job satisfaction brings benefits through improved motivation and productivity from a workforce that feels that they are treated as individuals and not a commodity item.

Inform and Educate

An online survey can also be used to educate and pass on to the workforce important information, the message is consistently delivered and does not suffer from the Chinese whisper phenomenon where a message can be distorted as it is handed down. An online survey can explain a difficult situation and get valuable feedback from the employees as to the best solution. It is rare in this situation that the workforce would appear negative and more likely that they will feel informed and empowered that might in itself turn a potentially negative problem into a positive challenge that unites the workforce.

Exit Surveys
Exit surveys are an excellent way of ensuring that when personnel leave an organization they are leaving for the right reasons and not due to reasons that if appreciated earlier could have been addressed and resolved by management. Although identifying a problem may not prevent a person leaving it could solve an unappreciated issue that may, if left unchecked, result in other key personnel also leaving.

Analyzing the Results

Having consulted the workforce with an online survey the results are available for instant analysis. Common and specific problems can be easily identified and brought to the attention of senior management who will then have the opportunity to address the issues that have been raised.

18

Summary
Used regularly online surveys represent a simple and productive method of taking the pulse of an organization and an easy way to establish a two way communication channel between employer and employee with the results providing management with vital, accurate and significant information.

Employee Satisfaction at Risk:

Employee attitudes and behaviors show surprising similarities from one country to another. Trends observed in one country are also seen in other countries around the world. A recent survey of employees in the Information Technology industry in India was reported in the Mumbai Mirror. The industry is still attractive as a career, with hardware professionals and marketing professionals more satisfied than those specializing in software. In spite of the industrys popularity, the survey results indicate that employee satisfaction is decreasing. The overall employee satisfaction index has dropped by about 11 percent as compared to last year (from 77.8 percent in 2005 to 69.2 percent this year). As a result, the attrition rate of the industry has also increased by 1 percent from 14 percent last year. "The decline in satisfaction and retention levels can be directly attributed to the steady increase in expectation levels of the employees and the inability of the employers in managing the same," explained the manager of the research project. The largest single factor driving job satisfaction is the opportunity for growth and career development. This finding is consistent with what we are seeing in other countries, as people seek to strengthen their skills to increase their capacity to change jobs or change careers. The Indian survey discovered that male employees in the Information Technology industry are more satisfied with their jobs than their female counterparts. A shift from the trend that prevailed a couple of years ago, this finding is the result of a movement among women in countries around the world to become more career-oriented. They are restless and anxious for professional growth and new opportunities. In addition, the percentage of female employees in the industry is consistently on the rise (from 14.5 percent in 2004 to 23.6 percent in 2006), contributing to new tensions in the field.

19

Another finding: work-life balance and organizational culture are primary issues for employees surveyed. These issues go deeper than just flexibility in the workplace. Employees want more control over their schedules and more involvement in the company decisions that affect them. Local issues have become global issues.

Need for the Study

It is well accepted that the employees satisfaction greatly influences the effective functioning of an organization. Further, keeping the employees fully satisfied and providing challenging job opportunities good pay packets, as well as growth potential has become the top most priority for human resource manager. Therefore, if an organization wants to retain and use the highly specialized skill of their human capital, it is necessary for the organization wants to retain and use the highly specialized skill of their human capital, it is necessary for the organization to meet all the satisfaction needs of the employees. It is well recognized that only a small number of companies in India conduct the Employees satisfaction survey, at regular intervals to detect potential problem areas and thus delight the internal customers.

The research publication suggests that further research will be required to evaluate employees satisfaction in context of globalization. In this study, therefore an effort is made to measure the level of employees satisfaction and its impact or relationship on customer satisfaction at M/s.K.N.K SWAMY & COMPANY and recommend suitable suggestions based on the findings.

20

Chapter-2
INDUSTRY PROFILE
The construction industry is an industry, which provides an excellent opportunity for employment generation. The construction industry is also very vital because anybody who is concerned with economic development these days highlights the need for infrastructure development. The infrastructure is in the form of roads, ports, buildings, factories and so on, and all of them involve construction. I would even say that the construction industry is the infrastructure of the infrastructure industry. Combining in itself the potential for employment and providing the critical infrastructure for practically any economic activity, the construction industry should be able to play a decisive role in the healthy development of the nation. The level of a countrys development is reflected by its infrastructure. The desperate need for infrastructure development has increased the demand of the construction industry. The Indian infrastructure sector is currently going through a vast transformation. Even with the third-largest road network of 3 million kilometers crisscrossing the country, the automobile revolution has meant that the vehicle fleet on Indian roads has more than doubled from 21.3 million at the beginning of the 1990s to 48.4 million by the end of the decade.

The government has already embarked upon massive road construction projects, with the National Highway Development Program building the North-South and East-West Corridors and the Golden Quadrangle Project connecting major cities. Besides, the government's decision to throw open the construction of roads, bridges, airports and ports to the private sector and allowing 100% foreign investment in real estate projects has provided a boost to the construction industry as well as generate demand for construction machinery. Housing and infrastructure projects like roads, bridges and ports are expected to grow about 20% per annum for the next 15 years.

The total investment of the road and highway construction projects is estimated at $40bn over the next 15 years, of which 20% is expected to be in construction machinery. Simultaneously, the housing and real estate construction business is expected to involve another $40bn over the next 15 years, of which 5% will be in construction machinery. Hence, a total demand of $10bn of construction machinery is anticipated through 2020. 21

The present market for construction machinery is estimated at $1312.17mn, of which about 1% is imported. Both imports and domestic production is expected to grow at 20% and 30% respectively. The Indian construction machinery industry is undergoing a rapid transformation by moving from a low volume, intensive use of equipment structure to high volume, and specific use one. The major segments of construction machinery that are expected to grow are excavators, loaders, dozers, dumpers and cranes.

The new and expanding housing and infrastructure construction ventures have generated substantial demand for construction machinery manufacturing and servicing, including erection, commissioning and maintenance. Several multinational firms are already present in the country. While the previous trend was to forge joint venture associations with Indian companies, more and more multinational companies are now entering the Indian market on their own strength. The report is a detailed study of the segments of the construction machinery industry equipment used for earthmoving, road and building construction and material handling. It profiles all the major manufacturers and importers of the estimated $1312.17 industry and discusses the competitive trends and patterns.

22

Chapter-3
COMPANY PROFILE

Background of the Company

M/s.K.N.K SWAMY & Co., one of the leading construction companies was first established in the year 1970 and later incorporated as a partnership company in 1997. The company is owned by three partners, K.N.K Swamy, Ashish Krishnaswamy and RK Swamy.

The company is dedicated to the ideals of honesty and integrity while providing quality and time bound construction services that exceed the customers expectations. The company comprises of dynamic civil engineers who take up every assignment with such zeal the each engineer builds his own edifice every time. Under the current ownership and joint efforts of its employees the company has completed over 50 construction projects.

Vision Statement
To be the premier construction company serving the needs of the customers, employees, industry and the community.

Mission Statement To provide quality and time bound construction services to achieve market dominance
while giving excellent value to the customers.

Goals and Objectives To build a team of highly motivated personnel to work together to achieve
benchmark in construction standards.

With the growth prospects and intellectual boom in the country and especially in
Bangalore Company want to tap the niche market of Pharma, Biotechnology and

23

other knowledge based industries, and provide them with satisfactory and precise quality of work that they expect.

Market Summary
To build the knowledge from the differences in the market segments and produces solid experience. By this, customers benefit from the information gained from the different methods and types of construction used across the range of construction markets. The company has built for several multinational companies adhering to their international quality standards.

List of Clients
The company has expertise in construction of several industrial buildings, institutions, hospitals, schools, apartments, biotech parks, pharmaceutical buildings, Software Park, hi-tech warehouse etc., Some of them are mentioned below: 1) Airtel- Bharti Televentures ltd., 2) Apotex Research Pvt Ltd., 3) Baxter India Pvt Ltd., 4) Biocon Limited 5) Danish Steel Clusters Pvt Ltd., 6) Delphi Automotive Systems Pvt Ltd., 7) DuPont Kurlon Ltd., 8) Hikal Magnetics Pvt Ltd., 9) Honda Showroom- Elite Automobiles 10) Jawahar Bal Bhavan 11) Jayem Impex Pvt Ltd., 12) John Fowler India Pvt Ltd., 13) LIC of India 14) Makino India Ltd., 15) Mysore Breweries Ltd., 16) Tata Coffee Ltd., 17) Tata council for community initiatives 18) Titan industries 24

19) Volvo Ltd., 20) Vikrant Tyres Ltd.,

25

Chapter - 4
DESIGN OF THE STUDY Statement of the Problem:
The employee satisfaction greatly influences the effective functioning of an organization. Keeping the employee fully satisfied and providing challenging job opportunities, good pay package, as well as growth potential has become the top most priority for human resource manager.

M/s. K.N.K SWAMY & Co., being one of the leading construction companies is facing high rate of attrition. This is influenced by various factors such as work environment, job content, recruitment, HR policies/ practices etc., the study is aimed at finding out the extent to which each factor has contributed towards employee dissatisfaction and suitable suggestions are made on the basis of analysis of data.

Objectives of the Study:

The specific objectives can be stated as follows: To know the opportunities for personnel growth of employee in the organization. To know how employees are satisfied with the work environment in the organization. To know the employee perception about the financial position of the company. To analyze how employees are satisfied with their job. To know employees satisfaction level with regard to HR policies / practices. To know the employees satisfaction level relating to communication. To analyze the motivational level of employees in the organization.

Scope of the Present Study:

The study is limited to the M/s K.N.K SWAMY & CO., which is based in Bangalore. It includes employees of all level.

26

Time of the Study:

The study was conducted during 2007-2008. The data was collected during 1st Jan 2007 to 12th Feb 2007 for a period of 6 weeks.

Limitations of the study:

The study suffers from the following limitations: Due to non-response to certain questions in the questionnaires from some of the respondents, meaningful and effective analysis of data could not be processed. Due to time and resource constraint the sample size was limited to 40 respondents. The research is limited to employees working in Bangalore only.

Method of Study
The study falls under descriptive study mainly aimed at fact finding investigation with adequate interpretation. The method adopted to collect data was Structured Questionnaire Method, to which respondents can select an answer among following five options: 1) Strongly agree 2) Agree 3) Neutral 4) Disagree 5) Strongly disagree Questions cover the following aspects of employee satisfaction.

Personal Growth Work environment Finance Job related HR policies/ practices Recruitment Communication Motivation Life style/ personal values.

27

Sources of the Data

For collecting data, both primary and secondary sources were used.

Primary Source It includes data collected through structured questionnaires and direct talk with HR executive. The structured questionnaire was distributed to 40 respondents. Secondary source It includes records, files, administrative manuals of the organization, books, internet etc.,

Sampling Design
M/s K.N.K SWAMY & CO., consisted of 600 employees, of which 40 employees were selected at random. Among 40 employees, 7 are managers and the 33 were supervisors and non-managers. To these entire employees questionnaire prepared on fivepoint scale, was distributed. Thus a total of forty employees were covered in this study.

Field Work
The fieldwork on the project started during 01/01/2007 and continued up to 12/02/2007. The collection of data from company involved much time. Most of the respondents reacted very well; some of the respondents have also made their suggestions about the improvement of their organization in future. Thereafter, analysis and interpretation of data is carried out.

28

Chapter - 5
ANALYSIS AND INTERPRETATION
As stated earlier in theory, the present study aims to describe the practice of employee satisfaction in the respondent company and the findings are highlighted.

OBJECTIVE 1: To know the opportunities for personnel growth of employee in the

organization.

FINDINGS:
Table 5.1 I agree that my achievement in the organization is recognized.

Options Strongly agree Agree Neutral Disagree Strongly Disagree TOTAL

No of respondents 6 20 9 5 40

Fig 5.1 29

Mean Weightage = (5 x 6) + (4 x 20) + (3 x 9) + (2 x 5) + (1 x 0) =3.675 40 Analysis: From the table it is found that out of 40 respondents 64% agree and
36% employees disagree.

30

Table 5.19 I agree that my company encourages developing soft skills in

Various Aspects for my Personality development.

Options Strongly agree Agree Neutral Disagree Strongly Disagree TOTAL

No of respondents 6 21 8 5 40

Fig 5.19

Mean Weightage = (5x6) + (4x21) + (3x8) + (2x5) + (1x0) = 3.95 40 Analysis: From the table, it is clear that out of 40 respondents, 67% of employees agree and
33%of the employees disagree.

31

Table 5.20 I agree that the human relationship maintained in

myCompany is Friendly for employees and customers too.

Options Strongly agree Agree Neutral Disagree Strongly Disagree TOTAL No of respondents 7 22 11 40

Fig 5.20

Mean Weightage = (5x7) + (4x22) + (3x11) + (2x0) + (1x0) = 3.9 40 Analysis: From the table, it is found that 72% of the employee agree whereas,
28% of them disagree.

OBSERVATION:
From analysis, it is found that the most of the employees are satisfied with the customer relationship and with personality development programs.

32

 From the findings, it is clear that employees are less satisfied with the recognition of their achievement.

33

OBJECTIVE 2: To know how employees are satisfied with the work environment
in the organization.

FINDINGS:
Table 5.3 I feel that I am satisfied with the working condition.

Options Strongly agree Agree Neutral Disagree Strongly Disagree TOTAL

No of respondents 8 18 13 1 40

Fig 5.3

Mean Weightage = (5x8) + (4x18) + (3x13) + (2x1) + (1x0) = 3.825 40 Analysis: From the table, it is clear that 64% of the employees are agreeable
Whereas 33% of them disagree.

34

Table 5.4 I feel that my colleagues are co-operative.

Options Strongly agree Agree Neutral Disagree Strongly Disagree TOTAL

No of respondents 8 24 6 2 40

Fig 5.4

Mean Weightage = (5x8) + (24x4) + (3x6) + (2x2) + (1x0) = 3.95 40

Analysis: From the table, it is found that 80% employees agree and 20 disagree.

35

Table 5.5 I agree that my colleagues and I work as a team in getting

our work done.

Options Strongly agree Agree Neutral Disagree Strongly Disagree TOTAL

No of respondents 10 16 11 3 40

Fig 5.5

Mean Weightage = (5x10) + (4x16) + (3x11) + (2x3) + (1x0) =3.825 40 Analysis: From the table, 64% of employees agree whereas 36% of employees
disagree with the statement.

OBSERVATION:
From the analysis, it is found that overwhelming majority of employees are satisfied with the work environment and teamwork.

35

OBJECTIVE 3: To know the employee perception about the financial position of

the company.

FINDINGS:
Table 5.2 I feel that compensation package provided to me is

satisfactory.

Options Strongly agree Agree Neutral Disagree Strongly Disagree TOTAL

No of respondents 14 18 7 1 40

Fig 5.2

Mean Weightage = (5 x 14) + (4 x 18) + (3 x 7) + (2 x 1) +(1 x 0)=4.125 40 Analysis: From the table, out of 40 respondents 79% of the employees agree
Whereas 21% of them disagree.

36

Table 5.6 I feel that company does not lack resources.

Options Strongly agree Agree Neutral Disagree Strongly Disagree TOTAL

No of respondents 5 18 13 4 40

Fig 5.6

Mean Weightage = (5x5) + (4x18) + (3x13) + (2x4) + (1x0) = 3.6 40 Analysis: From the table, it is found that 57% of employees feel that they are not
satisfied with the resources provided by the company whereas 43% disagree with this.

OBSERVATION:
From the analysis, it is found that employees are not satisfied with the resources provided by the company. But, overwhelming majority of the employees are satisfied with the compensation package provide by the company.

37

OBJECTIVE 4: To analyze how employees are satisfied with their job. FINDINGS:
Table 5.7 I agree that the organization emphasizes on quality over

Quantity.

Options Strongly agree Agree Neutral Disagree Strongly Disagree TOTAL

No of respondents 10 23 6 1 40

Fig 5.7

Mean Weightage = (5x10) + (4x23) + (3x6) + (2x1) + (1x0) = 4.05 40

Analysis: From the table, out of 40 respondents 82% agree and 18% disagree
with the statement.

38

Table 5.8 I feel that organization values competency of the employee.

Options Strongly agree Agree Neutral Disagree Strongly Disagree TOTAL

No of respondents 7 22 9 2 40

Fig 5.8

Mean Weightage = (5x7) + (4x22) + (3x9) + (2x2) + (1x0) = 3.85 40

Analysis: From the table, out of 40 respondents 72% agree and 28% disagree.

39

Table 5.9 I feel that there is enough challenge in my job.

Options Strongly agree Agree Neutral Disagree Strongly Disagree TOTAL

No of respondents 5 26 7 2 40

Fig 5.9

Mean Weightage = (5x5) + (4x26) + (3x7) + (2x2) + (1x0) = 3.85 40 Analysis: From the table, 77% agree that they have enough challenge in the job
whereas, 23% disagree.

OBSERVATION:
It is found that majority of the employees feel that quality is given importance. Whereas, competency and challenging work of employees are given less importance.

40

OBJECTIVE 5: To know employees satisfaction level with regard to

HR policies / practices.

FINDINGS:
Table 5.10 I agree that the training programmes conducted in my

company are beneficial.

Options Strongly agree Agree Neutral Disagree Strongly Disagree TOTAL

No of respondents 7 23 8 2 40

Fig 5.10

Mean Weightage = (5x7) + (4x23) + (3x8) + (2x2) + (1x0) = 3.875 40 Analysis: From the table, it is clear that 75% agree and 25% of the employees
disagree.

41

Table 5.11 I agree that the welfare schemes provided by the company

are satisfactory.

Options Strongly agree Agree Neutral Disagree Strongly Disagree TOTAL

No of respondents 9 17 8 6 40

Fig 5.11

Mean Weightage = (5x9) + (4x17) + (3x8) + (2x6) + (1x0) = 3.725 40

Analysis: From the table, 65% of employees agree whereas, 35% of them
disagree.

42

Table 5.12 I agree that my company has clear set of values, ethics that

I can Accept.

Options Strongly agree Agree Neutral Disagree Strongly Disagree TOTAL

No of respondents 8 22 8 2 40

Fig 5.12

Mean Weightage = (5x8) + (4x22) + (3x8) + (2x2) + (1x0) = 3.9 40

Analysis: From the table, it is clear that 75% of the employees agree and 25%
of them disagree.

43

Table 5.13 I agree that my job expectations are met in the

Organization

Options Strongly agree Agree Neutral Disagree Strongly Disagree TOTAL

No of respondents 8 23 7 2 40

Fig 5.13

Mean Weightage = (5x8) + (4x23) + (3x7) + (2x2) + (1x0) = 3.925 40 Analysis: From the table, 77% of employees agree whereas 23% disagree.

OBSERVATION:
It is found that majority of the employees are satisfied with training programs, welfare schemes, job expectations and ethics of the company.

44

OBJECTIVE 6: To know the employees satisfaction level relating to

communication.

FINDINGS:
Table 5.14 I agree that my superior communicate clearly as to what is

expected from me.

Options Strongly agree Agree Neutral Disagree Strongly Disagree TOTAL

No of respondents 8 19 9 4 40

Fig 5.14

Mean Weightage = (5x8) + (4x19) + (3x9) + (2x4) + (1x0) = 3.775 40 Analysis: From the table, 67% of them agree whereas 33% disagree out of 40
respondents.

45

Table 5.15 I feel that my immediate superiors consider my

apprehensions.

Options Strongly agree Agree Neutral Disagree Strongly Disagree TOTAL

No of respondents 10 17 8 5 40

Fig 5.15

Mean Weightage = (5x10) + (4x17) + (3x8) + (2x5) + (1x0) = 3.8 40

Analysis: From the table, 67% of the employees agree and 33% disagree.

46

Table 5.16 I agree that the top management decisions on any

perspective in my company are Communicated to me.

Options Strongly agree Agree Neutral Disagree Strongly Disagree TOTAL

No of respondents 12 17 7 4 40

Fig 5.16

Mean Weightage = (5x12) + (4x17) + (3x7) + (2x4) + (1x0) = 3.925 40 Analysis: From the table, 72% agree out of 40 respondents whereas, 28%
disagree.

OBSERVATION:
It is clear from the analysis that majority of the employees are satisfied with the communication flow with the superiors.

47

OBJECTIVE 7: To analyze the motivational level of employees in the

Organization.

FINDINGS:
Table 5.17 I agree that the performance appraisal system practiced

in my Company is useful.

Options Strongly agree Agree Neutral Disagree Strongly Disagree TOTAL

No of respondents 5 22 11 2 40

Fig 5.17

Mean Weightage = (5x5) + (4x22) + (3x11) + (2x2) + (1x0) = 3.75 40 Analysis: From the table, 67% agree and 33% of employees disagree.

48

Table 5.18 I agree with the growth opportunities provided by the

company is good.

Options Strongly agree Agree Neutral Disagree Strongly Disagree TOTAL

No of respondents 8 20 12 40

Fig 5.18

Mean Weightage = (5x8) + (4x20) + (3x12) + (2x0) + (1x0) = 3.9 40 Analysis: From the table, it is clear that 70% of employees agree 30% disagree.

49

Chapter 6
FINDINGS & OBSERVATIONS

FINDINGS:
By way of summing up, the following points can be highlighted:

It is found that out of 40 respondents, 79% of employees agree and 21% disagree. This shows that company has overwhelming response to the compensation package to its employees.

From the analysis, it is found that 82% of the respondents agree and 18% disagree. This shows that company emphasizes more on quality rather than on quantity.

It is found that, 72% of the employees agree and 28% disagree. This shows that majority of the people agree that they have a good communication with top management.

It is clear that, 65% agree whereas 35% disagree with the welfare schemes provided by the company. But majority of the people have good opinion with the welfare schemes.

It is found that, out of 40 respondents 57% agree where as 43% disagree. This shows that employees are not much satisfied with the resources provided by the company.

It is found that, out of 40 respondents 80% agree whereas 20% disagree. This shows that employees are co-operative with each other. From the table, 75% agree and 25% disagree. This shows that majority of the people accept the ethics followed in the company. From the table, it is clear that 70% of the employees agree that the company provides better career opportunities whereas 30% disagree that they are not satisfied with the growth opportunities.

50

From the table, it is clear that 76% agree and 33% disagree. This shows that most of the employees are beneficial by the personality development programs provided by the company.

OBSERVATIONS:
The following observations were made during my stay in the organization:

It was observed that company gave less importance to training programmes. It was found that employees were satisfied with the personality development programs. It was found that company must give importance to career opportunities. It was found that, the majority of employees are satisfied with the work environment provided by the company. It is also found that, employees recognition and awards are not given importance. It is found that, work assigned to employees was in groups, this shows that the organization emphasizes on team development. It was found that, employees are not much satisfied with the performance appraisal system followed in the organization.

51

Chapter - 7
CONCLUSIONS & SUGGESTIONS

CONCLUSIONS:
It is found that employees are satisfied with the compensation package provided by the company. It is found that the organization emphasizes more on quality rather than on quantity. It is also found that employees are not satisfied with growth opportunity in the company. Communication gap between management and employees needs to be reduced.

SUGGESTIONS:
The following suggestions are made to improve the level of Employee satisfaction in the Company: Improvements are needed in the area of awards, recognition of employees. Company can achieve this by announcing best employee of the month , employee of the week etc., by doing motivational level of the employee increases, which in turn increases the productivity level of the organization. Company is required to provide enough resources to the employees. Improvements are required in the area of medical allowances, compensation of employees. Communication gap between management and employees can be reduced by having one to one interaction between employee and top management. The company can arrange regular meetings with its employees. So, by doing this the employee feel free in talking to their superiors and to top management and give suggestions wherever necessary. The company should adopt 360 degree appraisal system, the person gets feedback from his peers, superiors, self and from customers too. This helps

52

him in finding his weakness and improves upon it. The company should also emphasize on training programs, it has to provide both technical and behavioral aspects. On the technical side it can give training which is specific in nature that is related to his job. This can be provided through on the job training method. In behavioral aspect it has to emphasize on attitude, personality of the employee, soft skills etc., which can be achieved through off the job training method. The company can also form grievance committee which protects employee interest and gives priority to his requirements. Like, it can adopt suggestion box where in an employee put his suggestions regarding the problem facing in organization, about his personal problems and get suitable solution from this.

53

QUESTIONNAIRE Employee Satisfaction Survey

AT M/s. K.N.K. SWAMY and COMPANY (Bangalore) An Empirical Study

Dear Sir/ madam,

I am Shivangini Jaiswal a student in HRM, conducting a survey on EMPLOYEE SATISFACTION with reference to M/s. K.N.K. SWAMY And COMPANY, Bangalore as a part of my course curriculum. Hence I kindly request you to furnish the following information and I assure you that the information provided by you will be kept strictly confidential and is used for academic purpose only.

Thanking you,

yours sincerely

Shivangini Jaiswal

54

Part-A 1. Name of the respondent: 2. Qualification: 3. Designation: 4. Tenure of employment: 5. Nature of work:

Part-B Please put the tick mark () in a relevant box most appropriately describes your Opinion: Disagree Agree Sl no 1 2 3 4 5 6 7 8 9 10 11 Strongly Disagree 55 Strongly agree Neutral

Statements I agree that my achievement in the organization is recognized I feel that compensation package provided to me is satisfactory I feel that I am satisfied with the working condition I feel that my colleagues are co-operative I agree that my colleagues and I work as a team in getting our work done I feel that company does not lack resources I agree that the organization emphasizes on quality over quantity I feel that organization values competency of the employee I feel that there is enough challenge in my job I agree that the training programme conducted in my company are beneficial I agree that the welfare schemes provided by the

12 13 14 15 16

17 18 19

20

company are satisfactory I agree that my company has clear set of values, ethics that I can accept I agree that my job expectations are met in the organization I agree that my superior communicate clearly as to what is expected from me I feel that my immediate superiors consider my apprehensions I agree that the top management decisions on any perspective in my company are communicated to me I agree that the performance appraisal system practiced in my company is useful I agree with the growth opportunities provided by the company is good I agree that my company encourages developing soft skills in various aspects for my personality development I agree that the human relationships maintained in my company is friendly for employees and customers too

56