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TITLE

“EMPLOYEE MOTIVATION AND JOB SATISFACTION IN


RETAIL SECTOR WITH REFERENCE TO M/S TATA RETAIL
ENTERPRISE”

A report submitted to Ishan Institute of Management &


Technology, Greater Noida as a partial fulfillment to
full time Post Graduate Diploma in Management.

Submitted To: Submitted By:


Dr. D. K. Garg Sumit Jaiswal
IIMT Gr. Noida ENR: RMR2017
15th Batch

ISHAN INSTITUTE OF MANAGEMENT & TECHNOLOGY


2, Knowledge Park-1, Greater Noida, Dist.- G. B. Nagar (U.P.)
Website: www.ishanfamily.com
E-Mail: student@ishanfamily.com

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PREFACE

This Project Report has been completed in Partial fulfill ment of m y


management Program, Post Graduate Diploma in Retail Management
(PGDRM) in the company M/s Tata Retail Enterprise. The title of m y
project was ― EMPLOYEE MOTIVATION AND JOB SATISFACTION
IN RETAIL SECTOR WITH REFERENCE TO M/S TATA RETAIL
ENTERPRISE ‖.
Training is a period in which a student can appl y his theoretical
knowledge in practical field. Basically practical knowledge and
theoretical knowledge have a very broad difference. Theoretical
knowledge is the fundamental weapon for any management student. As
a student of management, apart from theoretical studies we need to get
a deeper insight of the practical aspects of theories by working in an
organization. The training session helps to know about the working
process in the organization. It hel ps to know about the organizational
management and discipline, which has its own importance.
To achieve professional competence, manager ought to be full y
occupied with theory and practical exposure of management. A
comprehensive understanding of the princ iple increases their decision -
making abilit y and sharpens their tools for this purpose. So, this
training has high importance as to know how both the aspects are
applied together.
Theoretical knowledge of a person remains dormant until it is used and
tested in the practical life. The training has given to me the chance to
appl y m y theoretical knowledge that I have acquired in m y classroom
to the real business world. I completed my summer training project in
which I involved successful application of theorie s. In spite of few
limitations and hindrance during the summer training, I found that the
work was a challenge and fruitful. This summer training project has
enabled m y capability in order to manage business effectivel y.

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CERTIFICATE

This is to certify that the project work done on the title ―Employee motivation and job
satisfaction in retail sector with reference to Tata Retail Enterprise‖ submitted to
Ishan Institute of Management and Technology, Greater Noida by SUMIT JAISWAL
in partial fulfillment of the requirement for the award of the degree of Post Graduate
Diploma in Business Management is a bonafide work carried out by him/her under
my supervision and guidance. The project report is the original one and has not been
submitted anywhere else for any other degree/diploma.

Date: Seal/Stamp of the Guide Name of the Guide

Address:

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ACKNOWLEDGEMENT

This project has been prepared as a part of an internship required during the
completion of PGDM programme at Ishan Institute of Management & Technology,
Greater Noida (U.P.).

I was involved with Tata Retail Enterprise, Sector-18 Noida for a period of around
2 months, and I came across a lot of people who put in their time and effort towards
acclimatizing me to the workings of their organization. I express my thanks to my
company guide Mr. Rajesh Shrivastav, who was there to introduce me to the idea
of retailing and what goes behind and inside it. Also under his guidance and
leadership I was able to enhance my analytical as well as inter-personal skills and
logical concepts behind store management.

These past 2 months were of utmost importance as they added value towards my path
of knowledge. I would like to end this acknowledgement by thanking the customers,
people at large with whom I have interacted during the course of my training.

I would like to thank respected Chairman Dr. D. K. Garg, who has been a source of
motivation and support to the students of Ishan Institute of Management &
Technology.

Last, but definitely not the least, I express my gratitude to the entire staff of Westside,
Noida. I would like to express my feelings for my parents without their blessings the
project work couldn‘t be possible, also the moral support of my family members have
worked a lot.

SUMIT JAISWAL

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DECLARATION

The summer training project on the title ―Employee motivation and job satisfaction in
retail sector with reference to Tata Retail Enterprise‖ under the guidance of Mr.
Rajesh Shrivastav is the original work done by me. This is the property of the institute
& use of this report without prior permission of the institute will be considered illegal
& actionable.

Date: Signature

SUMIT JAISWAL

ENR- RMR2017

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TABLE OF CONTENT

Preface 2

Certificate 3

Acknowledgement 4

Declaration 5

Executive summary 9

Chapter 1

Introduction to topic 11

Employee motivation- An introduction 13

Importance and challenges of motivation 15

Employee motivation theories 19

Chapter 2

Job satisfaction- An introduction 31

Models of job satisfaction 33

Role of employee satisfaction and moral boosting 40

Modern methods of measuring job satisfaction 41

Determinants of job satisfaction 46

Importance of job satisfaction 49

Reason and effect of low job satisfaction 52

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Chapter 3

Employee benefits and welfare 53

Stock take process and its effect on employees 56

Dimensions of job satisfaction 58

Chapter 4

Performance and appraisal of employees 59

Chapter 5

Job satisfaction and work satisfaction 67

Common myths about employee motivation 69

Chapter 6

Stress management 79

Theories of stress 84

Stress cycle 87

Chapter 7

Overview of Indian retail sector 101

Employment in retailing 103

Evolution of the Indian retail industry 109

Chapter 8

Company profile 111


History
Vision and vision
Head office and branch office

Products of the Westside 117

Tata code of conduct 122

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Chapter 9

HR policies 131

Key staff 140


Management hierarchy
Staff at store level

Duties and responsibilities of key staff 144

Chapter 10

Findings 148

Learning 149

Suggestions and recommendations 151

Word of thanks 152

Bibliography 153

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EXECUTIVE SUMMARY
Motivation in simple terms may be understood as the set of forces that cause
people to behave in certain ways. A motivated employee generally is more quality
oriented. Highly motivated worker are more productive than apathetic worker one
reason why motivation is a difficult task is that the workforce is changing. Employees
join organizations with different needs and expectations. Their values, beliefs,
background, lifestyles, perceptions and attitudes are different. Not many organizations
have understood these and not many HR experts are clear about the ways of
motivating such diverse workforce.

Now days employees have been hired, trained and remunerated they need to be
motivated for better performance. Motivation in simple terms may be understood as
the set or forces that cause people to behave certain ways. People are motivated
rewards something they can relate to and something they can believe in. Times have
changed People wants more. Motivated employees are always looking for better ways
to do a job. It is the responsibility of managers to make employees look for better
ways of doing their jobs.

Individuals differ not only in their ability to do but also in their will to do, or
motivation Managers who are successful in motivating employees are often providing
an environment in which appropriate goals are available for needs satisfaction.
Retaining and motivating workers requires special attention and the responsibility
falls squarely on the shoulders of HR as well as managers and supervisors at all level.
They have to create a work environment where people enjoy what they do, feel like
they have a purpose and have pride in the mission of the organization. It requires
more time, more skill, and managers who care about people. It takes true leadership.
By giving employees special tasks, you make them feel more important. When your
employees feel like they are being trusted with added responsibilities, they are
motivated to work even harder so they won‘t let the company down.
Motivation is essential for any company because employee is Asset of company.
Motivation is important for the growth of employees as well as growth of the
organization.
Job Satisfaction is the favorableness or un-favorableness with which the employee
views his work. It expresses the amount of agreement between one‘s expectation of

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the job and the rewards that the job provides. Job Satisfaction is a part of life
satisfaction. The nature of one‘s environment of job is an important part of life as Job
Satisfaction influences one‘s general life satisfaction.

Job Satisfaction, thus, is the result of various attitudes possessed by an employee. In a


narrow sense, these attitudes are related to the job under condition with such specific
factors such as wages. Supervisors of employment, conditions of work, social relation
on the job, prompt settlement of grievances and fair treatment by employer.

However, more comprehensive approach requires that many factors are to be included
before a complete understanding of job satisfaction can be obtained. Such factors as
employee‘s age, health temperature, desire and level of aspiration should be
considered. Further his family relationship, Social status, recreational outlets, activity
in the organizations etc. Contribute ultimately to job satisfaction.

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Chapter 1
INTRODUCTION TO TOPIC
Management, observed Mary parker Follett ―is to get things done through people‖.
Any business activity basically require four Ms, viz. Men, Material, Money and
Machinery. Of all these resources people is the most important resource of
production. Today, the corporate world has started acknowledging the fact that it is
people and money, machinery or materials that run organizations. The burden of
performance is no longer on mechanically advanced systems, but on the
resourcefulness, initiative and responsibility of the people who are intrinsically the
process owners.

There has always been a gap between the corporate visions and the ambitions of
individuals. In the past, the human resource function did not try to bring about
compatibility between corporate needs and that of individuals. But, today‘s the
managements have to ensure congruence between organizational objectives and
employee‘s aspirations.

The task of coordinating all the other factors of production, except man is felt easier,
because man cannot be controlled fully at all times. He can act according to his own
desired. And most of the time human being will be manipulated by the work
environment and by the group. Human behaviour is unpredictable. One will act
according to one‘s own. Hence, only by providing more facilities to human factor, we
can motivate them to work. Then only it is possible to direct the combination of all
factors towards the goal.

There are numerous factors, which will influence the human factors. Among them the
levels of human relations in the organization play a significant role. In ancient day‘s
it was felt that by using power and authority human relations in the organization could
he improved. Through this concept we cannot get worker‘s co-operation and
involvement at their level best. But, they will work because of fear not without
involvement.

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The second concept is, only by providing monetary increments and incentives, human
relations can be improved in the organization. This concept also failed to achieve is
goal but at certain level it increased human relations.

Now, the recent human relation‘s theory prescribes participatory management


according to which all are allowed to play their roles and the management will play a
participatory role.

By enhancing human relations we can improves the efficiency of the workers. If they
are fully satisfied, then they will give their full efforts. As a result, the achievement
of organizational goal becomes an easy one.

Therefore employee motivation and job satisfaction alone is responsible for the
attainment organizational goals. Hence, it is important to provide more facilities in
the form of work environment, improved human relations, and fair wages and welfare
measures. The management can improve them and satisfy the workers. By satisfying
workers they will reach their goal. Thus is the individual and the organizational goals
will reached simultaneously. People see organization as a means to help them to
reach their goals while organization needs people to reach organizational objectives.

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EMPLOYEE MOTIVATION-AN INTRODUCTION

In the organizational setting the word ―Motivation‖ is used to describe the drive that
impels an individual to work. A truly motivated person is one who ―wants‖ to work
.Both employees and employers are interested in understanding motivation if
employees know what strengthens and what weakens their motivation, they can often
perform more effectively to find more satisfaction in their job. Employers want to
know what motivates their employees so that they can get them to work harder.

When people speak of motivation or ask about the motives of person, they are really
asking ―Why‖ the person acts, or why the person acts the way he does .The concept of
motivation implies that people choose the path of action they follow.

When behavioral scientists use the word motivation, they think of its something
steaming from within the person technically, the term motivation has its origin in the
Latin word ―mover‖ which means ―to move‖. Thus the word motivation stands for
movement. One can get a donkey to move by using a carrot or a stick; with people
one can use incentives, or threats or reprimands. However, these only have a limited
effect. These work for a while and then need to be repeated, increased or reinforced to
secure further movement.

If a manager truly understands his subordinate‘s motivation, he can channel their


―inner state‖ towards command goals, i.e., goals, shared by both the individual and
the organization. It is a well-known fact that human being have great potential but
they do not use it fully , when motivation is absent .Motivation factor are those which
make people give more than a fair day‘s work and that is usually only about sixty-five
percent of a person‘s capacity .Obviously , every manager should be releasing
hundred percent of an individual‘s to maximize performance for achieving
organizational goals and at the same to enable the individual to develop his potential
and gain satisfaction. Thus every manager should have both interest and concern
about how to enable people to perform task willingly and to the best of their ability.

At one time, employees were considered just another input into the production of
goods and services. What perhaps changed this way of thinking about employees was
research, referred to as the Hawthorne Studies, conducted by Elton Mayo from 1924

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to 1932 (Dickson, 1973). This study found employees are not motivated solely by
money and employee behavior is linked to their attitudes (Dickson, 1973). The
Hawthorne Studies began the human relations approach to management, whereby the
needs and motivation of employees become the primary focus of managers

Framework of motivation

The framework comprises six steps.

(step1) Motivation process begins with the individual‘s needs. Needs are telt
deprivations which the individual experiences at a given time and act as energizers.
These needs may be psychological (e.g., the needs for recognition), physiological
(e.g., the needs for water, air or foods) or social (e.g., the needs for friendship).

(step2) Motivation is goal directed.

(step3) A goal is a specific result that the individual wants to achieve .An employee‘s
goal are often driving forces and accomplishing those goals can significantly reduce
needs.

(step4) Promotions and raises are two of the ways that organizations seek to maintain
desirable behavior. They are signals to employees that their needs for advancement
and recognition and their behaviors are appropriate.

(step5) Once the employee have received either rewards or punishments

(step6) They reassess their needs.

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IMPORTANCE AND CHALLENGES OF MOTIVATION

IMPORTANCE

Probably, no concept of HRM receives as much attention of academicians,


researchers and practicing manager‘s motivation. The increased attention towards
motivation is justified by several reasons

1. Motivated employees are always looking for better ways to do a job. This statement
can apply to corporate strategists and to production workers. It is the responsibility of
managers to make employees look for better ways of doing their jobs.

2. A motivated employee generally is more quality oriented. This is true whether we


are talking about a top manager spending extra time on data gathering and analysis for
a report or a clerk taking extra care when filing important document.

3. Highly motivated worker are more productive than apathetic worker .The high
productivity of Japanese worker and the fever worker are needed to produce an
automobile in Japan than elsewhere is well known. An appreciation of the nature of
motivation is highly useful manager.

4. Every organization requires human resources in addition to financial and physical


resources for it to function .Three behavioral dimensions of HR are significant to
organizations (i) people must be attracted not only to join the organizations but also to
remain it (ii) people must perform he tasks for which they are hired and must do so in
a dependable manner and (iii) people must go beyond this dependable role per
performance and engage in some form of creative, spontaneous, and innovative
behavior at work.

5. Motivation as a concept represents a highly complex phenomenon that affects. and


is affected by .a multitude of factors in the organizational milieu .an understanding of
the topic of motivation is thus essential in order to comprehend more fully the effects
of variations in other reaction as they relate to the performance, satisfaction, and so
forth .

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6. Why increasing attention is paid towards motivation can be found in the present
and future technology required for production, as technology increases in complexity,
machines tend to become necessary, yet insufficient, vehicles of effective and
efficient operation .Consider the example of the highly technology-based space
programmed in our country.

CHALLENGES

The framework of motivation indicates that motivation is a simple process. But in


reality, the task is more daunting one reason why motivation is a difficult task is that
the workforce is changing. Employees join organizations with different needs and
expectations. Their values, beliefs, background, lifestyles, perceptions and attitudes
are different. Not many organizations have understood these and not many HR
experts are clear about the ways of motivating such diverse workforce.

Motivating employees is also more challenging at a time when firms have


dramatically changed the jobs that employees perform, reduced layers of hierarchy,
and jettisoned large numbers of employees in the name of right-sizing or down-sizing.
These actions have considerably damaged the level of trust and commitment
necessary for employee to put in efforts above minimum requirements some
organization have resorted to hire and fire and pay – for- performance strategies
almost giving up motivational efforts. Such strategies may have some effects (both
positive and negative) but fail to make and individual over reach him or her Third,
motives can only be inferred, but not seen. The dynamic nature of needs offend poses
challenge to any manager in motivating his or her subordinate. An employee, at any
given time, has a various needs, desire, and expectations. Employees who put in extra
hours at work to fulfill their needs or accomplishment may find that these extra hours
conflict directly with needs for affiliation and their desire to be with their families

However, there is no shortage of models, strategies, and tactics for motivating


employees. As a result, firms constantly experiment with next motivational
programmed and practice.

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Work Motivation

Craig Pinder ―echoing the basic definition of motivation, define it as follows:

―Work motivation is a set of energetic force that originate both within as well as
beyond and individuals being, to initiate work – related behavior, and to determine its
form, direction, intensity, and duration.‖

While general motivation is concerned with effort towards any goal, Stephen Robbins
narrow the focus to organizational goals in order to reflect singular interest in work
related behavior the effort element is a measure of intensity. The need means some
internal state that makes certain outcomes appear attractive. And unsatisfied need
creates tension that stimulates drives within the individual. This drives general a
search behavior to find particular goals, if attend, will satisfied the needs and lead to
the reduction of tension

Mechanism of motivation

Motivation is the process that starts with physiological or psychological deficiency or


need that activate behavior or a drive that is aimed at a goal or incentive.

Thus, the key to understanding motivation lies in the meaning of, and relationship
between needs, drives and goals,

• Needs: Needs are created whenever there is a physiological or psychological


imbalance For example: A need exists when cells in the body are deprived of food
and water or when the personality is deprived of other people who serve friends or
companions. Although psychological may be based on a deficiency, sometimes they
are not. For instant, and individuals with a strong need to get ahead may have a
history of consistent success

• Drives: ―Drives (Or motives) are set up to alleviate needs. Psychological needs can
be simply defined as a deficiency with direction. Physiological or psychological
drives are action – oriented and provide energizing thrust towards reaching an
incentive or goals. They are at the very heart of the motivational process. The needs
for food and water are translated into hunger and thrust drives, and the need for friend

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becomes a drives affiliation. Thus, a drive is a psychological state which moves an
individual‘s satisfying needs.

• Goals: At the end of the motivational cycle is the goal or incentive. It is anything
that wills that will alleviate a need and reduce a drive. Thus, attaining a goal will tend
to restore physiological or psychological balance and will reduce or cut off the drive.
Eating food, drinking water and obtaining friends will tend to restore the balance and
reduce the corresponding drives food, water and friends are the incentive are the
goals.

Conceptual clarification: (motives, motivation and motivating)

The terms motives, motivation and motivating which are derived from the Latin word
‗Mover‘ (to move) are important concept which have distinct connotation. In order to
steer the energies of the employees towards organizational goals accomplishment, it is
essential to grasp the meaning and significance of this concept and also to learn how
to apply them intelligently

Motives: Motive is defined as a inner state that energizes, activates (Or moves) and
directs (or channels) the behavior of individuals towards certain goals the strong
motives or needs are fulfill. In order to minimize the restlessness, and keep it under
control, the individual is propelled into action. Thus motive induce individual to
channel their behavior towards such type of actions as would reduce their state of
restlessness are inner disequilibrium. Thus motives can be thought of as drives that
energize people to action.

Motivation: while motives are energizers of action, motivation is the actual action
that is work behavior itself. For instance, when a employee work hard, his level of
motivation may be consider as low. Thus, the level of motivation of employee is
judged by his actual work behavior

Motivating: It is the term that implies one person induces another to engage in action
or work, behaviour by ensuring that, a channel to direct the motive of the individuals
become available and accessible to the individual.

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EMPLOYEE MOTIVATION THEORIES

1. NEED THEORY

Introduction

Need theories see motivation arising from individual needs or desires for things.
These needs and desires can change over time and are different across individuals.

There are three popular perspectives on Need theory:

 Maslow‘s Hierarchy of Needs

 Alderfer‘s ERG Theory

 Herzberg‘s Two-Factor Theory

This lesson briefly highlights the distinctions of each perspective.

A. Maslow’s Hierarchy of Needs

Abraham Maslow proposes that motivation can be represented as a hierarchy of


needs. As lower-level needs are satisfied, workers are likely to be motivated by
higher-level needs. Maslow argues that there are five categories of needs:
physiological, safety, love, esteem, and actualization.

The crux of Maslow‘s theory is that human needs are arranged in hierarchy composed
of five categories. The lowest level needs are physiological and the highest levels are
the self-actualization needs. Maslow starts with the formation that man is a wanting
animal with a hierarchy of needs of which some are lower ins scale and some are in a
higher scale or system of values. As the lower needs are satisfied, higher needs
emerge. Higher needs cannot be satisfied unless lower needs are fulfilled. A satisfied
need is not a motivator. This resembles the standard economic theory of diminishing
returns. The hierarchy of needs at work in the individual is today a routine tool of
personnel trade and when these needs are active, they act as powerful conditioners of
behavior- as Motivators.

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Hierarchy of needs; the main needs of men are five. They are physiological needs,
safety needs, social needs, ego needs and self-actualization needs, as shown in order
of their importance.

Self-
Actualization

Ego Needs

Social Needs

Safety Needs

Physiological Needs

 Physiological needs - basic biological needs for things such as food, water,
and sex

 Safety needs - need for safety and a safe physical environment (e.g., shelter, a
safe workplace)

 Love needs - need for friendship and partnership

 Esteem needs - need for self-respect and for the respect of others

 Self-actualization needs - need for self-improvement, fulfillment of personal


life goals and of one‘_ potential

Tension-reduction - According to Maslow‘s tension-reduction hypothesis, an unmet


need creates a tension to meet that need. For example, if you need food, you feel
tension until the need is met. Maslow believed that needs were arranged
hierarchically such that lower, more basic needs must be met before higher needs
become the point of focus.

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B. Alderfer’s ERG Theory

Alderfer‘s ERG Theory suggests that there are three classes of needs, not five as
Maslow suggests: existence, relatedness, and growth. Another distinction is that
Alderfer proposes that when low-level (existence) needs are not met, they grow. For
example, when you are hungry and do not eat, your hunger grows. On the other hand,
higher-level (relatedness and growth) needs grow when they are met. For example, as
you become more productive, your need to be productive may grow.

 Existence needs - need for concrete, tangible things like food, water, and
material possessions.

 Relatedness needs - social needs and the need to have relationships with other
people (e.g., family, co-workers, and supervisors).

 Growth needs - need for self-improvement or personal growth, expression of


creativity and productivity.

Frustration-regression - According to Alderfer‘s frustration-regression hypothesis,


when we have trouble meeting a particular need, we regress to meet needs at a lower
level. When we are having trouble meeting growth needs, we are more motivated by
relatedness needs. When we are having trouble meeting relatedness needs, we are
motivated by existence needs.

C. Herzberg’s Two-Factor Theory

In his Two-Factor Theory of motivation, Frederick Herzberg argues that there are two
types of factors involved in motivation: extrinsic and intrinsic.

 Extrinsic (or hygiene) factors include tangible outcomes and things that focus
on workers‘ physical well-being such as pay and benefits, organizational

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policies, quality of supervision, job security, job safety, administrative
practices, and physical work conditions.

 Intrinsic factors include intangible outcomes such as recognition,


responsibility, and respect.

Motivational factors:

Motivator factors - Workers are satisfied and motivated when they are happy with
the intrinsic factors (e.g., levels of responsibility and respect at work), which is why
intrinsic factors are also called motivator factors. When workers are not happy with
intrinsic factors, argues Herzberg, they are not satisfied. However, when they feel
respected and enjoy the responsibility, they are more likely to be truly satisfied with
their jobs. This suggests that we should focus our attention on intrinsic factors if we
want to motivate employees.

Non-motivator factors - Herzberg argues that workers will be dissatisfied with their
job when they are not happy with the job‘_ extrinsic factors (e.g., pay). An
appropriate level of extrinsic factors is necessary to avoid job dissatisfaction, but even
when employees are happy with their salary, bonus, vacation, and health benefits,
they will not necessarily feel satisfied or motivated. With extrinsic factors, Herzberg
argues, the best you can hope for is to keep your employees from feeling dissatisfied.

The following chart summarizes these points:

Extrinsic Intrinsic
Factors Factors

   

Dissatisfied Not Not Satisfied


Dissatisfied Satisfied

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Summary

Need theory was once very popular, but none of the perspectives discussed have
shown much relation to on-the-job performance. One possible reason is that these
theories are too general. The needs they describe could be satisfied in many different
ways, and so are not necessarily associated with job behavior.

On the other hand, Maslow‘s Hierarchy of Needs, Alderfer‘s ERG Theory, and
Herzberg‘s Two-Factor Theory have contributed to our understanding of motivation
by showing how people can vary in the rewards they want from work.

2. BEHAVIOURAL THEORY

Introduction

Two important motivation theories that stem from behavioral psychology are
reinforcement and expectancy theories. Both emphasize that behavior is shaped by
rewards and punishment.

Behavioral theories of motivation advocate the use of behavior reinforcement


schedules to shape on-the-job performance.

A. Reinforcement theory

The central premise of reinforcement theory is that the consequences (or outcomes) of
behavior influence the likelihood that people will behave the same way again.

For example, let‘s say you make a suggestion in a committee meeting. If people
respond positively, you are more likely to make other suggestions in other meetings.
If people respond negatively, you are less likely to make other suggestions in other
meetings.

Behavior can be motivated in four ways: through positive or negative reinforcement


and by inflicting or removing a punishment.

Positive reinforcement is a form of reward that involves giving the person


something that is liked or wanted as a consequence of some behavior. For example,
organizations give workers bonuses and bosses give praise for jobs well done.

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Negative reinforcement is a form of reward that involves taking away something
that is disliked as a consequence of some behavior. For example, the removal of the
sound of an alarm is a reward for waking up enough to turn off the alarm.

Punishment - People can be punished for doing something inappropriate by the


removal of something they like or by the addition of something they dislike. For
example, in response to bad behavior, some parents may take away things that their
children like (e.g., the ability to use the car, talk on the phone, or watch TV). Other
parents may instead give their children something they do not like to receive (e.g., a
spanking, a lecture, or additional chores).

B. Expectancy theory

Whereas Reinforcement Theory explains how different types of reinforcement shape


behavior, Expectancy Theory explains when and why reinforcement impacts
behavior.

The Motivation Formula - According to Expectancy Theory, motivation is a


function of an individual‘_ confidence that he/she can perform a behavior
successfully (expectancy) and that performing successfully will lead to a desirable
outcome (valence and instrumentality). Motivation can be expressed as a
mathematical equation:

Force = Expectancy x (Valences x Instrumentalities)

Force is the amount of motivation a person has to engage in a particular behavior


(e.g., motivation to be highly productive at work).

Expectancy is the confidence an individual feels that he/she can perform the behavior
successfully. This is normally stated as a probability (e.g., 80% confident that I can
be highly productive).

Instrumentality is the confidence an individual feels that performing the behavior


will result in a particular outcome. Again this is expressed as a probability (e.g., 80%
sure that high productivity will lead to a raise or promotion).

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Valance is the value a person assigns to that outcome (e.g., a raise would be highly
desirable but a promotion would be even more desirable).

This formula suggests that motivation (force) cannot exist unless the individual
possesses at least some expectancy, instrumentality, and valance.

Summary

An overwhelming amount of research has shown two reliable trends.

(1) When people are rewarded, they are more likely to repeat the behavior that
resulted in the reward.

(2) When people are punished they are less likely to behave in the same way again.

This suggests that organizations can use reinforcements or rewards to promote desired
behaviors... and they do. For example, the Emery Freight Company used
reinforcements to speed up employee's responses to customer requests and to improve
the quality of item packaging. These improvements saved the company 3 million
dollars over 3 years.

C. Self-efficacy theory

Introduction

Albert Bandura‘s (1982) Self-efficacy Theory asserts that motivation and


performance are in part dependent on the degree to which the individual believes
he/she can accomplish the task.

Self-efficacy refers to a person‘_ belief in his/her ability to perform a given task. The
term is similar in meaning to self-confidence and expectancy, though some argue that
there are differences among these terms. Self-efficacy is sometimes confused with
self-esteem also.

 Self-efficacy and self-esteem - Self-efficacy is like self-esteem in the sense that it


is related to a person‘s feelings of self-worth. Self-efficacy, however, refers to
one‘s ability to perform a certain task, whereas self-esteem reflects a more general
belief about one‘s self-worth. You can have strong feelings of self-worth while

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still recognizing that you are not good at a particular task (e.g., crossword
puzzles). On the other hand, having low self-esteem may cause you to undervalue
your ability to perform a particular task.

Self-efficacy and motivation

Research has found that self-efficacy does predict performance.

 Self-efficacy and the self-fulfilling prophecy - Those who have high self-
efficacy are more likely to try hard and exhibit high levels of commitment
(persistence) on a given task. They are more likely to succeed as a result. Those
who have low levels of self-efficacy feel that they are not good at the task and
may not try very hard at all. They are less likely to succeed.

 Self-efficacy and success - Self-efficacy may develop from prior good


performance. Similarly, previous failures can lead to low self-efficacy.

 Self-efficacy and goal-difficulty - Self-efficacy interacts with goal setting insofar


as people with higher self-efficacy tend to set more challenging goals.

 Self-efficacy and goal-commitment –_Commitment (or persistence) refers to


one‗_ ability to overcome obstacles in the pursuit of a goal. With more
demanding goals and higher levels of commitment, people with high self-efficacy
put forth greater effort in performing the task (accomplishing the goal).

D. Empowerment theory

Empowerment theory is an extension or application of self-efficacy theory. It has


been used widely in organizational settings.

According to empowerment theory, motivation will increase when one‘_ feelings of


competence and self-determination increase. When people have high self-efficacy,
they feel more competent and more capable of self-determination. Therefore,
improving self-efficacy is a critical component of empowerment efforts.

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Empowerment strategy

Common examples of empowerment strategies are participatory management


practices and flextime.

Participatory decision-making - Sometimes organizations empower employees by


asking them to participate in making organizational decisions (e.g., what can we do to
cut down on the number of accidents?).

Flextime - Flextime is a program that allows workers to design their own work
schedule, within certain constraints. People can choose to work a 9 to 5 day, or an 8
to 4 day, or sometimes a 10 to 6 day. Flextime allows the worker to structure the
workday, but usually requires workers to be at work during core hours (e.g., 10 to 11
and 1 to 4) so that committees can meet and group work can be completed.

Research has shown that participatory decision-making can increase commitment to


the decision that is made and improve motivation.

The research on flextime has shown that job performance and job satisfaction do
benefit from flextime programs, but only sometimes. The most reliable benefit seems
to be reduced absenteeism. Flextime allows time for doctors and dentist‘s visits, late
mornings, early days, and midday engagements, and reduces work-family conflicts.

Summary

Self-efficacy can be useful in improving motivation to perform. Gradually increasing


task (or goal) difficulty enables the learner to improve while experiencing success,
which in turn should improve self-efficacy. Providing training and performance
supports (job aids, quick reference guides, etc.) may also improve self-efficacy.

Empowering people, by increasing their levels of decision-making and control, can


also motivate people to perform, assuming their self-efficacy is high enough to
support feelings of competence and self-determination.

Limitation - One possible limitation of self-efficacy theory is individual ability.


People sometimes don‘_ believe in their ability to perform a task because they really
may not be good at the task and know this from previous experience. Training,

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performance support, and graduated task difficulty strategies may not always be able
to overcome a lack of ability.

E. Equity theory

Introduction

J. Stacey Adams‘ (1965) Equity Theory (a.k.a., Social Exchange Theory) suggests
that effort depends on one‘s perceptions of fairness. According to this theory, people
compare their input/output ratio to those of similar others. When the ratio reflects an
inequity, tension is created and so people work to reduce that tension.

Input/output ration

The critical element in this theory is the perceived ratio of one‘s inputs (what I give)
to outputs (what I get in return) with respect to other‘s ratios (what they receive and
what they give).

 Inputs include what the person contributes - their qualifications, their past
experiences, seniority, their effort, and the time they spend on the job, and so on.

 Outputs include what the person is given in return - for example, pay, benefits,
appreciation, and respect.

Our notion of "equity" is closely linked with our perceptions of justice and fairness.
Adams asserts that as we act to satisfy our needs, we each assess the fairness of the
outcome. Each of us asks, ―Am I getting what I deserve in this exchange?‖

Procedural justice

Equity Theory was popular among industrial/organizational psychologists at one time,


but interest in it began to decline in the mid-1980s. While research has found that
employee perceptions of inequity correlates with intentions to quit and job search
behavior, it is often difficult to tell what workers will perceive as inequitable and how
they will respond to inequities. It may vary by individual even within a given context.

Lacking the ability to use it to predict motivation and performance, Equity Theory has
fallen out of favor. However, in the 1990s, fairness research began to focus on the

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idea of procedural justice, which deals with the perceived fairness of the distribution
process. It may be more important to know if employees perceive the reward
distribution process as fair as whether or not they perceive the reward itself as
equitable.

Summary

Equity Theory emphasizes the importance of employee perceptions about input/output


ratios. When employees believe that they are over or underpaid, the resulting tension
motivates them to eliminate the inequity.

Limitation - While this is helpful to know, in that it focuses our attention on potential
inequities, it is not does not necessarily help managers predict when individuals will
feel cheated. Without this predictive capability, the theory has limited application.

Procedural justice theories focus on reward processes, rather than the rewards
themselves. Future equity research is likely to focus on both the equity of the reward
distributions and the fairness of the distribution process.

F. Goal setting theory

Introduction

Building on Bandura‘s self-efficacy research, Edwin Locke and Gary Latham (1990)
proposed Goal-setting Theory. According to Goal-setting Theory, goals direct our
mental and physical actions. Goals serve two functions:

 Goals serve as performance targets that we strive to reach.

 Goals serve as standards against which we measure our own performance.

Locke and Latham argue that the outcome of your performance can affect your future
effort. In this way, goals provide us with a means of regulating our effort.

Goal specificity

Specific goals benefit motivation and performance more so than vague goals. Specific
goals provide people with a sharper point of focus. For example, the goal ―raise

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profitability 10% this year‖ is likely to be more effective than ―Let‘s be more
profitable.‖

 Research has shown that people who have vague goals are more likely to be
satisfied with good performance even though they are capable of better
performance.

 People also tend to give more effort when they are trying to reach harder goals.
One might think that people would prefer jobs with easy goals, but they usually do
not…jobs with easy goals are usually boring. Also, many organizations provide
better rewards for meeting difficult goals than they do for meeting easier goals.

 Performance feedback impacts future effort. By measuring performance against


goals, organizations are able to provide workers with feedback that enables them
to regulate their efforts. Given the right circumstances, failure to meet a goal can
motivate an individual to work harder.

Circumstance

Research has shown that specific and difficult goals do motivate people toward their
best performance. However, this happens only when the proper circumstances exist:

 Workers have the necessary qualifications to meet the goal

 Feedback is provided to assist the effort-regulation process

 Workers believe that they can meet the goal (i.e., have high self-efficacy)

 Workers are committed to the goal

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Chapter 2
JOB SATISFACTION- AN INTRODUCTION
INTRODUCTION

―Job satisfaction is the amount of pleasure or contentment associated with a job. If


you like your job intensely, you will experience high job satisfaction. If you dislike
your job intensely, you will experience job dissatisfaction.‖

By Andrew J DuBrins

Job satisfaction is one part of life satisfaction. The environment influences the job.
Similarly, since a job is important part of life, job satisfaction influences one‘s general
life satisfaction. Manager may need to monitor not only the job and immediate work
environment but also their employee‘s attitudes towards other part of life.

Human life has become very complex and completed in now-a-days. In modern
society the needs and requirements of the people are ever increasing and ever
changing. When the people are ever increasing and ever changing, when the people‘s
needs are not fulfilled they become dissatisfied. Dissatisfied people are likely to
contribute very little for any purpose. Job satisfaction of industrial workers us very
important for the industry to function successfully. Apart from managerial and
technical aspects, employers can be considered as backbone of any industrial
development. To utilize their contribution they should be provided with good working
conditions to boost their job satisfaction. Any business can achieve success and peace
only when the problem of satisfaction and dissatisfaction of workers are felt
understood and solved, problem of efficiency absenteeism labour turnover require a
social skill of understanding human problems and dealing with them scientific
investigation serves the purpose to solve the human problems in the industry.

a) Pay.

b) The work itself.

c) Promotion

d) The work group.

e) Working condition.

f) Supervision.

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PAY

Wages do play a significant role in determining of satisfaction. Pay is instrumental in


fulfilling so many needs. Money facilities the obtaining of food, shelter, and clothing
and provides the means to enjoy valued leisure interest outside of work. Moreover,
pay can serve as symbol of achievement and a source of recognition. Employees often
see pay as a reflection of organization. Fringe benefits have not been found to have
strong influence on job satisfaction as direct wages.

THE WORK ITSELF

Along with pay, the content of the work itself plays a very major role in determining
how satisfied employees are with their jobs. By and large, workers want jobs that are
challenging; they do want to be doing mindless jobs day after day. The two most
important aspect of the work itself that influence job satisfaction are variety and
control over work methods and work place. In general, job with a moderate amount of
variety produce the most job satisfaction. Jobs with too little variety cause workers to
feel bored and fatigue. Jobs with too much variety and stimulation cause workers to
feel psychologically stressed and ‗burnout‘.

PROMOTION

Promotional opportunities have a moderate impact on job satisfaction. A promotion to


a higher level in an organization typically involves positive changes I supervision, job
content and pay. Jobs that are at the higher level of an organization usually provide
workers with more freedom, more challenging work assignments and high salary.

SUPERVISION

Two dimensions of supervisor style:

1. Employee centered or consideration supervisors who establish a supportive


personal relationship with subordinates and take a personal interest in them.

2. The other dimension of supervisory style influence participation in decision


making, employee who participates in decision that affect their job, display a much
higher level of satisfaction with supervisor an the overall work situation.

WORK GROUP

Having friendly and co-operative co-workers is a modest source of job satisfaction to


individual employees. The working groups also serve as a social support system of
employees. People often used their co-workers as sounding board for their problem of
as a source of comfort.

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WORK CONDITION

The employees desire good working condition because they lead to greater physical
comfort. The working conditions are important to employees because they can
influence life outside of work. If people are require working long hours and / or
overtime, they will have very little felt for their families, friends and recreation
outside work.

MODELS OF JOB SATISFACTION

There are various methods and theories of measuring job satisfaction level of
employees in the organization given by different authors.

List of all the theories and methods measuring job satisfaction level is given below:

A MODEL OF FACET SATISFACTION

 Affect theory(Edwin A. Locke 1976)

 Dispositional Theory( Timothy A. Judge 1988)

 Two-Factor Theory (Motivator-Hygiene Theory) (Frederick Herzberg‘s)

 Job Characteristics Model (Hackman & Oldham)

 Rating scale

 Personal interviews

 action tendencies

 Job enlargement

 Job rotation

 Change of pace

 Scheduled rest periods

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MODEL OF FACET OF JOB SATISFACTION

Skill

Experience Perceived personal


job inputs
Training
Perceived
Efforts
amount that
Perceived inputs
Age should be
& outcomes of
received (a)
Seniority referent others

Level

Difficulty a=b satisfaction


Time span Perceived job
a>b
characteristics
Amount of dissatisfaction
responsibility
a<b guilt

Perceived Inequity
outcome of
Perceived
referent others
amount
received
Actual outcome
received (b)

Edward E.lawler in 1973 propoed a model of facet satisfaction, this model is


applicable to understand what determines a person‘s satisfaction with any facet of job.

According to this model actual outcome level plays a key role in a person‘s perception
of what rewards he receives. His perception influenced by his perception of what his
referent others recieves. The higher outcome level of his referent other the lower his
outcome level will appear. This model also focuses on his perception on reward level.

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AFFECT THEORY

Edwin A. Locke‘s Range of Affect Theory (1976) is arguably the most famous job
satisfaction model. The main premise of this theory is that satisfaction is determined
by a discrepancy between what one wants in a job and what one has in a job. Further,
the theory states that how much one values a given facet of work (e.g. the degree of
autonomy in a position) moderates how satisfied/dissatisfied one becomes when
expectations are/aren‘t met. When a person values a particular facet of a job, his
satisfaction is more greatly impacted both positively (when expectations are met) and
negatively (when expectations are not met), compared to one who doesn‘t value that
facet. To illustrate, if Employee A values autonomy in the workplace and Employee B
is indifferent about autonomy, then Employee A would be more satisfied in a position
that offers a high degree of autonomy and less satisfied in a position with little or no
autonomy compared to Employee B. This theory also states that too much of a
particular facet will produce stronger feelings of dissatisfaction the more a worker
values that facet.

DISPOSITIONAL THEORY

Another well-known job satisfaction theory is the Dispositional Theory it is a very


general theory that suggests that people have innate dispositions that cause them to
have tendencies toward a certain level of satisfaction, regardless of one‘s job. This
approach became a notable explanation of job satisfaction in light of evidence that job
satisfaction tends to be stable over time and across careers and jobs. Research also
indicates that identical twins have similar levels of job satisfaction.

A significant model that narrowed the scope of the Dispositional Theory was the Core
Self-evaluations Model, proposed by Timothy A. Judge in 1998. Judge argued that
there are four Core Self-evaluations that determine one‘s disposition towards job
satisfaction: self-esteem, general self-efficacy, locus of control, and neuroticism. This
model states that higher levels of self-esteem (the value one places on his self) and
general self-efficacy (the belief in one‘s own competence) lead to higher work
satisfaction. Having an internal locus of control(believing one has control over her\his
own life, as opposed to outside forces having control) leads to higher job satisfaction.
Finally, lower levels of neuroticism lead to higher job satisfaction

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TWO-FACTOR THEORY (MOTIVATOR-HYGIENE THEORY)

Frederick Hertzberg‘s Two-factor theory (also known as Motivator Hygiene Theory)


attempts to explain satisfaction and motivation in the workplace. This theory states
that satisfaction and dissatisfaction are driven by different factors – motivation and
hygiene factors, respectively. Motivating factors are those aspects of the job that make
people want to perform, and provide people with satisfaction. These motivating
factors are considered to be intrinsic to the job, or the work carried out. Motivating
factors include aspects of the working environment such as pay, company policies,
supervisory practices, and other working conditions.

While Hertzberg's model has stimulated much research, researchers have been unable
to reliably empirically prove the model, with Hackman & Oldham suggesting that
Hertzberg's original formulation of the model may have been a methodological
artifact Furthermore, the theory does not consider individual differences, conversely
predicting all employees will react in an identical manner to changes in
motivating/hygiene factors. Finally, the model has been criticized in that it does not
specify how motivating/hygiene factors are to be measured.

JOB CHARACTERISTICS MODEL

Hackman & Oldham proposed the Job Characteristics Model, which is widely used as
a framework to study how particular job characteristics impact on job outcomes,
including job satisfaction.

The model states that there are five core job characteristics (skill variety, task identity,
task significance, autonomy, and feedback) which impact three critical psychological
states (experienced meaningfulness, experienced responsibility for outcomes, and
knowledge of the actual results), in turn influencing work outcomes (job satisfaction,
absenteeism, work motivation, etc.).

The five core job characteristics can be combined to form a motivating potential score
(MPS) for a job, which can be used as an index of how likely a job is to affect an
employee's attitudes and behaviors.

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A meta-analysis of studies that assess the framework of the model provides some
support for the validity of the JCM.

Measuring job satisfaction

There are many methods for measuring job satisfaction. By far, the most common
method for collecting data regarding job satisfaction is the Likert scale (named after
Rensis Likert). Other less common methods of for gauging job satisfaction include:
Yes/No questions, True/False questions, point systems, checklists, and forced choice
answers. This data is typically collected using an Enterprise Feedback Management
(EFM) system.

The Job Descriptive Index (JDI), created by Smith, Kendall, & Hulin (1969), is a
specific questionnaire of job satisfaction that has been widely used. It measures one‘s
satisfaction in five facets: pay, promotions and promotion opportunities, coworkers,
supervision, and the work itself. The scale is simple, participants answer either yes,
no, or can‘t decide (indicated by ‗?‘) in response to whether given statements
accurately describe one‘s job.

 The work itself—responsibility, interest, and growth.


 Quality of supervision—technical help and social support.
 Relationships with co-workers—social harmony and respect.
 Promotion opportunities—chances for further advancement.
 Pay—adequacy of pay and perceived equity vis-à-vis others.

The Job in General Index is an overall measurement of job satisfaction. It is an


improvement to the Job Descriptive Index because the JDI focuses too much on
individual facets and not enough on work satisfaction in general.

Other job satisfaction questionnaires include: the Minnesota Satisfaction


Questionnaire (MSQ), the Job Satisfaction Survey (JSS), and the Faces Scale. The
MSQ measures job satisfaction in 20 facets and has a long form with 100 questions
(five items from each facet) and a short form with 20 questions (one item from each
facet). The JSS is a 36 item questionnaire that measures nine facets of job satisfaction.
Finally, the Faces Scale of job satisfaction, one of the first scales used widely,

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measured overall job satisfaction with just one item which participants respond to by
choosing a face.

Some general myths relating to Job Satisfaction

Argument: Satisfaction Causes Performance -If job satisfaction causes high levels
of performance, the message to managers is quite simple: To increase employees‘
work performance, make them happy. Research, however, indicates that no simple
and direct link exists between individual job satisfaction at one point in time and work
performance at a later point. This conclusion is widely recognized among OB
scholars, even though some evidence suggests that the relationship holds better for
professional or higher level employees than for nonprofessionals or those at lower job
levels. Job satisfaction alone is not a consistent predictor of individual work
performance.

Argument: Performance Causes Satisfaction: If high levels of performance cause


job satisfaction, the message to managers is quite different. Rather than focusing first
on peoples‘ job satisfaction, attention should be given to helping people achieve high
performance; job satisfaction would be expected to follow. Research indicates an
empirical relationship between individual performance measured at a certain time
period and later job satisfaction. A basic model of this relationship, based on the work
of Edward E. Lawler and Lyman Porter, maintains that performance accomplishment
leads to rewards that, in turn, lead to satisfaction. In this model rewards are
intervening variables; that is, they ―link‖ performance with later satisfaction. In
addition, a moderator variable—perceived equity of rewards—further affects the
relationship. The moderator indicates that performance will lead to satisfaction only if
rewards are perceived as equitable. If an individual feels that his or her performance is
unfairly rewarded, the performance–causes–satisfaction relationship will not hold.

Argument: Rewards Cause Both Satisfaction and Performance: This final


argument in the job satisfaction–performance controversy is the most compelling. It
suggests that a proper allocation of rewards can positively influence both performance
and satisfaction. The key word in the previous sentence is proper. Research indicates
that people who receive high rewards report higher job satisfaction. But research also
indicates that performance-contingent rewards influence a person‘s work

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performance. In this case, the size and value of the reward vary in proportion to the
level of one‘s performance accomplishment. Large rewards are given for high
performance; small or no rewards are given for low performance, And whereas giving
a low performer only small rewards initially may lead to dissatisfaction, the
expectation is that the individual will make efforts to improve performance in order to
obtain greater rewards in the future. The point is that managers should consider
satisfaction and performance as two separate but interrelated work results that are
affected by the allocation of rewards. Whereas job satisfaction alone is not a good
predictor of work performance, well-managed rewards can have a positive influence
on both satisfaction and performance.

What kindles dissatisfaction?

 Earnings or benefits
 Job quality or workplace support
 Lack of appreciation
 Stagnation or no growth
 Lack of freedom

Best Practices -Employee Satisfaction

1) Recruiting and Hiring…it all starts with this

2) Provide a Career / ‗Skill‘ Path

3) Employee Development and Training

4) Strong Supervisors / Good Coaching

5) Work Environment / Company Culture

6) Rewarding work / empowering employees.

7) Recognition (first) and Reward (second)

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How to keep Employees Engaged and Happy?

 Strengthen work environment Make improvements to mound the company as


an employer of choice
 Treat employees as an important part of the organization
 Encourage participation in various planning and decision-making aspects
Offer meaningful work and challenging assignments to effectively utilize staff
skills Empower employees and ensure them of job security.
 Provide legitimate feedback, genuinely listen to staff concerns and make their
interests a management priority

ROLE OF EMPLOYEE SATISFACTION & MORALE


BOOSTING

Seven social learning processes and strategies were identified that relate to Job
Satisfaction and Morale. These are:

_ Conditions of Service,

_ Recognition & Reward,

_ Organizational Loyalty to Workers,

_ Workplace Design,

_ Job Significance,

_ Performance Management, and

_ Loyalty to the Organization

These seven elements of Job Satisfaction and Morale align with components of the
Job Characteristics Model (Hackman & Oldham, 1980) that are claimed to be
necessary for job satisfaction and the motivation to perform one‘s job well. For
instance, Conditions of Service, Recognition & Reward, Organizational Loyalty to
Workers, and Workplace Design all relate to one‘s satisfaction with the work context,

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or to use Hackman and Oldham‘s (1980) terms, ―Job Context Satisfaction‖. Similarly,
Job Significance Pascoe, Ali & Warne (your own belief that your work is important
and has value) and Performance Management relate to Experienced Meaningfulness
of Work‖ and ―Knowledge of Results‖, respectively, both of which are posited as
necessary psychological states for high levels of motivation to work well. Whilst there
appears to be no direct relationship between Loyalty to the Organization and elements
of the Job Characteristics Model, one‘s attitude to the organization for which they
work would influence their motivation to work well.

MODERN METHOD OF MEASURING JOB


SATISFACTION

In this method of measuring job satisfaction the comparison between various


organizational terms and conditions at managerial level and also the organization at a
large

Satisfaction with human resources management policies of the organization:

1. Management has a clear path for employee‘s advancement

2. Decisions are made keeping in mind the good of the employees

3. Management is extremely fair in personal policies

4. Physical working conditions are supportive in attaining targets

5. Innovativeness is encouraged to meet business problems.

Satisfaction with supervision:

1. I feel I can trust what my supervisor tells me

2. My supervisor treats me fairly and with respect

3. My supervisor handles my work-related issues satisfactorily

4. I get frequent appreciation of work done from supervisors

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5. I get enough support from the supervisor

6. Individual initiative is encouraged

Satisfaction with compensation levels:

1. Overall I am satisfied with the company‘s compensation package

2. I am satisfied with the medical benefits

3. I am satisfied with the conveyance allowance

4. I am satisfied with the retirement benefits

5. I am satisfied with the reimbursement of the expenses as per the eligibility

6. I am satisfied with the holiday (vacation) eligibilities

Satisfaction with task clarity:

1. Management decisions are Ad Hoc and lack professionalism (reverse scaled)

2. Rules and procedures are followed uncompromisingly

3. My job responsibilities are well defined and clear

Satisfaction with career development:

1. I have adequate opportunities to learn and grow

2. I get opportunities to handle greater responsibilities

3. My skills and abilities are adequately used at work

From all above we can conclude level of job satisfaction of our employees.

Rating scale:

It is one of the most common methods of measuring job satisfaction. The popular
rating scale used to measure Job satisfaction is to include:

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Minnesota Satisfaction Questionnaires: It helps to obtain a clear picture of pertinent
satisfactions and dissatisfactions of employees.

Job Description Index: it measures Job satisfaction on the dimension identified by


Smith, Kendall, Hulling.

Porter Need Identification Questionnaires: It is used only for management personnel


and revolves around the problems and challenges faced by managers.

Critical incidents:

Fredrick Hertz berg and his Associates popularized this method of measuring Job
satisfaction. It involves asking employees to described incidents on job when they
were particularly satisfied or dissatisfied. Then the incidents are analyzed in terms of
their contents and identifying those related aspects responsible for the positive and
negative attitudes.

Personal interviews:

This method facilitates an in-depth exploration through interviewing of job attitudes.


The main advantage in this method is that additional information or clarifications can
be obtained promptly.

Action tendencies:

By this method, Job satisfaction can be measured by asking questions and gathering
information on how they feel like behaving with respect to certain aspects of their
jobs. This method provides employees more opportunity to express their in-depth
feeling.
In his study on American employees, hop pock identified six factors that contributed
to job satisfaction among them. These are as follows:

 The way individual reacts to unpleasant situations.


 The facilities with which he adjust himself to other persons.
 His relative‘s status in the social & economic group with which he identifies
himself.

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 The nature of work in relation to the abilities, interest & preparation of the
workers.
 Security.
 Loyalty.

Because human resource manager often serve as intermediaries between employees &
management in conflict, they are concern with Job satisfaction or general job attitudes
with the employees.

Philip apple white has listed the five major components of Job satisfaction.

 Attitude towards work group


 General working conditions.
 Attitude towards company.
 Monitory benefits &
 Attitude towards supervision

Other components that should be added to this five are individual‘s state of mind
about the work itself and about the life in general .the individual‘s health, age, level of
aspiration. Social status and political & social activities can all contribute to the Job
satisfaction. A person‘s attitude toward his or her job may be positive or negative.

Job enlargement:

The concept of job enlargement originated after World War II. It is simply the
organizing of the work so as to relate the contents of the job to the capacity, actual
and potential, of workers. Job enlargement is oblivious forerunner of the concept and
philosophy of job design. Stephan offers three basic assumptions behind the concept
of job enlargement.

Job enlargement is a generic term that broadly means adding more and different tasks
to a specialized job. It may widen the number of task the employee must do that is,
add variety. When additional simple task are added to a job, the process is called
horizontal job enlargement. This also presumably adds interest to the work and
reduces monotony and boredom.

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To check harmful effects of specialization, the engineering factors involved in each
individual job must be carefully analyzed. Perhaps, the assembly lines can be
shortened so that there will be more lines and fewer workers on each line. Moreover,
instead of assigning one man to each job and then allowed to decide for himself how
to organize the work. Such changes permit more social contacts and greater control
over the work process.

Job rotation:

Job rotation involves periodic assignments of an employee to completely different


sets of job activities. One way to tackle work routine is to use the job rotation. When
an activity is no longer challenging, the employee is rotated to another job, at the
same level that has similar skill requirements.

Many companies are seeking a solution to on-the-job boredom through systematically


moving workers from one job to another. This practice provides more varieties and
gives employees a chance to learn additional skills. The company also benefits since
the workers are qualified to perform a number of different jobs in the event of an
emergency.

Change of pace:

Anything that will give the worker a chance to change his pace when he wishes will
lend variety to his work. Further if workers are permitted to change their pace that
would give them a sense of accomplishment.

Scheduled rest periods:

Extensive research on the impact of rest periods indicates that they may increase both
morale and productivity. Scheduled rest periods bring many advantages:

 They counteract physical fatigue


 They provide variety and relieve monotony
 They are something to look forward to- getting a break gives a sense of
achievement.
 They provide opportunities for social contacts.

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DETERMINANTS OF JOB SATISFACTION

While analyzing the various determinants of job satisfaction, we have to keep in mind
that: all individuals do no derive the same degree of satisfaction though they perform
the same job in the same job environment and at the same time. Therefore, it appears
that besides the nature of job and job environment, there are individual variables
which affect job satisfaction. Thus, all those factors which provide a fit among
individual variables, nature of job, and situational variables determine the degree of
job satisfaction. Let us see what these factors are.

Individual factors:

Individuals have certain expectations from their jobs. If their expectations are met
from the jobs, they feel satisfied. These expectations are based on an individual‘s
level of education, age and other factors.

Level of education:

Level of education of an individual is a factor which determines the degree of job


satisfaction. For example, several studies have found negative correlation between the
level of education, particularly higher level of education, and job satisfaction. The
possible reason for this phenomenon may be that highly educated persons have very
high expectations from their jobs which remain unsatisfied. In their case, Peter‘s
principle which suggests that every individual tries to reach his level of incompetence,
applies more quickly.

Age:

Individuals experience different degree of job satisfaction at different stages of their


life. Job satisfaction is high at the initial stage, gets gradually reduced, starts rising up
to certain stage, and finally dips to a low degree. The possible reasons for this
phenomenon are like this. When individuals join an organization, they may have some
unrealistic assumptions about what they are going to drive from their work. These
assumptions make them more satisfied. However, when these assumptions fall short
of reality, job satisfaction goes down. It starts rising again as the people start to assess
the jobs in right perspective and correct their assumptions. At the last, particularly at

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the far end of the career, job satisfaction goes down because of fear of retirement and
future outcome.

Other factors:

Besides the above two factors, there are other individual factors which affect job
satisfaction. If an individual does not have favourable social and family life, he may
not feel happy at the workplace. Similarly, other personal problems associated with
him may affect his level of job satisfaction. Personal problems associated with him
may affect his level of job satisfaction.

Nature of job:

Nature of job determines job satisfaction which is in the form of occupation level and
job content.

Occupation level:

Higher level jobs provide more satisfaction as compared to lower levels. This happens
because high level jobs carry prestige and status in the society which itself becomes
source of satisfaction for the job holders.

For example, professionals derive more satisfaction as compared to salaried people:


factory workers are least satisfied.

Job content:

Job content refers to the intrinsic value of the job which depends on the requirement
of skills for performing it, and the degree of responsibility and growth it offers. A
higher content of these factors provides higher satisfaction. For example, a routine
and repetitive lesser satisfaction; the degree of satisfaction progressively increases in
job rotation, job enlargement, and job enrichment.

Situational variables:

Situational variables related to job satisfaction lie in organizational context – formal


and informal. Formal organization emerges out of the interaction of individuals in the

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organization. Some of the important factors which affect job important factors which
affect job satisfaction are given below:

1. Working conditions:

Working conditions, particularly physical work environment, like conditions of


workplace and associated facilities for performing the job determine job satisfaction.
These work in two ways. First, these provide means job performance. Second,
provision of these conditions affects the individual‘s perception about the
organization. If these factors are favourable, individuals experience higher level of job
satisfaction.

2. Supervision:

The type of supervision affects job satisfaction as in each type of supervision; the
degree of importance attached to individuals varies. In employee-oriented
supervision, there is more concern for people which is perceived favourably by them
and provides them more satisfaction. In job oriented supervision, there is more
emphasis on the performance of the job and people become secondary. This situation
decreases job satisfaction.

3. Equitable rewards:

The type of linkage that is provided between job performance and rewards determines
the degree of job satisfaction. If the reward is perceived to be based on the job
performance and equitable, it offers higher satisfaction. If the reward is perceived to
be based on considerations other than the job performance, it affects job satisfaction
adversely.

4. Opportunity:

It is true that individuals seek satisfaction in their jobs in the context of job nature and
work environment by they also attach importance to opportunities for promotion that
these job offer. If the present job offers opportunity of promotion is lacking, it reduces
satisfaction.

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Work group: Individuals work in group either created formally of they develop on
their own to seek emotional satisfaction at the workplace. To the extent such groups
are cohesive; the degree of satisfaction is high. If the group is not cohesive, job
satisfaction is low. In a cohesive group, people derive satisfaction out of their
interpersonal interaction and workplace becomes satisfying leading to job satisfaction.

IMPORTANCE OF JOB SATISFACTION

Job satisfaction is an important indicator of how employees feel about their job and a
predictor of work behavior such as organizational, citizenship, Absenteeism,
Turnover.

Job satisfaction can partially mediate the relationship of personality variables and
deviant work behavior. Common research finding is that job satisfaction is correlated
with life style.

This correlation is reciprocal meaning the people who are satisfied with the life tends
to be satisfied with their jobs and the people who are satisfied their jobs tends to
satisfied with their life.

This is vital piece of information that is job satisfaction and job performance is
directly related to one another. Thus it can be said that, ―A happy worker is a
productive worker.‖

It gives clear evidence that dissatisfied employees skip work more often and more like
to resign and satisfied worker likely to work longer with the organization.

Importance to worker and organization

Job satisfaction and occupational success are major factors in personal satisfaction,
self-respect, self-esteem, and self-development. To the worker, job satisfaction brings
a pleasurable emotional state that can often leads to a positive work attitude. A
satisfied worker is more likely to be creative, flexible, innovative, and loyal.

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For the organization, job satisfaction of its workers means a work force that is
motivated and committed to high quality performance. Increased productivity- the
quantity and quality of output per hour worked- seems to be a byproduct of improved
quality of working life. It is important to note that the literature on the relationship
between job satisfaction and productivity is neither conclusive nor consistent.

However, studies dating back to Herzberg‘s (1957) have shown at least low
correlation between high morale and high productivity and it does seem logical that
more satisfied workers will tend to add more value to an organization.

Unhappy employees, who are motivated by fear of loss of job, will not give 100
percent of their effort for very long. Though fear is a powerful motivator, it is also a
temporary one, and also as soon as the threat is lifted performance will decline.

Job satisfaction benefits the organization includes reduction in complaints and


grievances, absenteeism, turnover, and termination; as well as improved punctuality
and worker morale. Job satisfaction is also linked with a healthier work force and has
been found to be a good indicator of longevity.

Although only little correlation has been found between job satisfaction and
productivity, Brown (1996) notes that some employers have found that satisfying or
delighting employees is a prerequisite to satisfying or delighting customers, thus
protecting the ―bottom line‖.

Workers role in job satisfaction

If job satisfaction is a worker benefit, surely the worker must be able to contribute to
his or her own satisfaction and wellbeing on the job. The following suggestions can
help a worker find personal job satisfaction: Seek opportunities to demonstrate skills
and talents. This often leads to more challenging work and greater responsibilities,
with attendant increases in pay and other recognition.

Develop excellent communication skills. Employer‘s value and rewards excellent


reading, listening, writing and speaking skills.

Know more. Acquire new job related knowledge that helps you to perform tasks more
efficiently and effectively. This will relive boredom and often gets one noticed.

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Demonstrate creativity and initiative. Qualities like these are valued by most
organizations and often results in recognition as well as in increased responsibilities
and rewards.

Develop teamwork and people skills. A large part of job success is the ability to work
well with others to get the job done.

Accept the diversity in people. Accept people with their differences and their
imperfections and learn how to give and receive criticism constructively.

See the value in your work. Appreciating the significance of what one does can lead
to satisfaction with the work itself. This help to give meaning to one‘s existence, thus
playing a vital role in job satisfaction.

Learn to de-stress. Plan to avoid burn out by developing healthy stress management
techniques.

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REASONS AND EFFECT OF LOW JOB SATISFACTION

Reasons why employees may not be completely satisfied with their jobs:

 Conflict between co-workers


 Conflict between supervisors
 Not being opportunity paid for what they do.
 Have little or no say in decision making that affect employees.
 Fear of losing their job.

Effects of low job satisfaction

 High absenteeism
 Absenteeism means it is a habitual pattern of absence from duty or obligation.
 If there will be low job satisfaction among the employees the rate of
absenteeism will definitely increase and it also effects on productivity of
organization.
 In the above diagram line AB shows inverse relationship between job
satisfaction and rate of turnover and rate of absenteeism.
 As the job satisfaction is high the rate of both turns over and absenteeism is
low and vice versa.
 High turnover
 In human resource refers to characteristics of a given company or industry
relative to the rate at which an employer gains and losses the staff.
 If the employer is said to be have a high turnover of employees of that
company have shorter tenure than those of other companies.
 Training cost increases
 As employees leaves organization due to lack of job satisfaction. Then Human
resource manager has to recruit new employees, So that the training
expenditure will increases

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Chapter 3

EMPLOYEE BENEFITS AND WELFARE


―Employee welfare is a comprehensive term including various services, benefits and
facilities offered to employees & by the employers. Through such generous fringe
benefits the employer makes life worth living for employees.‖

Welfare includes anything that is done for the comfort and improvement of employees
and is provided over and above the wages. Welfare helps in keeping the morale and
motivation of the employees high so as to retain the employees for longer duration.
The welfare measures need not be in monetary terms only but in any kind/forms.
Employee welfare includes monitoring of working conditions, creation of industrial
harmony through infrastructure for health, industrial relations and insurance against
disease, accident and unemployment for the workers and their families.

Employee welfare entails all those activities of employer which are directed towards
providing the employees with certain facilities and services in addition to wages or
salaries.

The very logic behind providing welfare schemes is to create efficient, healthy, loyal
and satisfied labor force for the organization. The purpose of providing such facilities
is to make their work life better and also to raise their standard of living. The
important benefits of welfare measures can be summarized as follows:

• They provide better physical and mental health to workers and thus promote a
healthy work environment
• Facilities like housing schemes, medical benefits, and education and recreation
facilities for workers‘ families help in raising their standards of living. This
makes workers to pay more attention towards work and thus increases their
productivity.
• Employers get stable labor force by providing welfare facilities. Workers take
active interest in their jobs and work with a feeling of involvement and
participation.
• Employee welfare measures increase the productivity of organization and
promote healthy industrial relations thereby maintaining industrial peace.

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• The social evils prevalent among the labors such as substance abuse, etc. are
reduced to a greater extent by the welfare policies.

For example at Bajaj Electricals there are many welfare activities like long service
and retirement awards on 14th July every year for employees, to be categorized into
15 years long service and 25 long service.

There is also welfare trust which formed by Bajaj Electricals for providing loan to
employees for housing needs and also for the reimbursement of medical expenses.
They have created ―social responsibility of business fund‖ to provide scholarship to
employees and children for higher education and also there is emergency assistance in
the form of financial assistance to the family in case of death of any employee in
harness.

Welfare includes anything that is done for the comfort and improvement of employees
and is provided over and above the wages. Welfare helps in keeping the morale and
motivation of the employees high so as to retain the employees for longer duration.
The welfare measures need not be in monetary terms only but in any kind/forms.
Employee welfare includes monitoring of working conditions, creation of industrial
harmony through infrastructure for health, industrial relations and insurance against
disease, accident and unemployment for the workers and their families.

Labor welfare entails all those activities of employer which are directed towards
providing the employees with certain facilities and services in addition to wages or
salaries.

Labor welfare has the following objectives:

To provide better life and health to the workers

To make the workers happy and satisfied

To relieve workers from industrial fatigue and to improve intellectual, cultural


and material conditions of living of the workers

The basic features of labor welfare measures are as follows:

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Labor welfare includes various facilities, services and amenities provided to workers
for improving their health, efficiency, economic betterment and social status.

Welfare measures are in addition to regular wages and other economic benefits
available to workers due to legal provisions and collective bargaining Labor welfare
schemes are flexible and ever-changing. New welfare measures are added to the
existing ones from time to time.

Welfare measures may be introduced by the employers, government, employees or by


any social or charitable agency. The purpose of labor welfare is to bring about the
development of the whole personality of the workers to make a better workforce.

The very logic behind providing welfare schemes is to create efficient, healthy, loyal
and satisfied labor force for the organization. The purpose of providing such facilities
is to make their work life better and also to raise their standard of living. The
important benefits of welfare measures can be summarized as follows:

They provide better physical and mental health to workers and thus promote a healthy
work environment Facilities like housing schemes, medical benefits, and education
and recreation facilities for workers‘ families help in raising their standards of living.
This makes workers to pay more attention towards work and thus increases their
productivity.

Employers get stable labor force by providing welfare facilities. Workers take active
interest in their jobs and work with a feeling of involvement and participation.

Employee welfare measures increase the productivity of organization and promote


healthy industrial relations thereby maintaining industrial peace. The social evils
prevalent among the labors such as substance abuse, etc. are reduced to a greater
extent by the welfare policies.

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STOCK TAKE PROCESS AND ITS EFFECTS ON
EMPLOYEES

Stock take is process to check the shrinkage in the stock. Earlier it was conducted
once in the three month but now this time it was decided to conduct every month. In
this process complete stock is counted and recounted to find out the exact figure of
shrinkage. Following are the steps taken during the STOCK PROCESS.

1. All the merchandise kept in bin and carton of the ware house is segregated on
the basis of price tag .If Proper price tag is not found in the product then it is
kept for the‘ Dumping‘. This process starts 4-5 days earlier than the scheduled
stock take day.
2. On the same time Scanning process is done in the ware house. In the scanning
process all the merchandise‘s price tag is scanned by the scanner with their
respective fixture number.
3. This scanned data is stored in the system it gives the correct figure of
merchandise present in the ware house.
4. Similarly on the stock take day all the dump items from the floor are removed.
5. Now stock take process goes for whole night. In this night employees are
asked to scan all the items of the floor .After complete scanning i.e. both in the
ware house and on the floor ‗Recounting ‗ process starts.
6. In the Recounting process all the scanned items have to be recounted and note
it down on the format provided by the company.
7. Here associate‘s responsibility is over but till this time complete night is
passed. Now its turn for the managers to compare the data stored in the
computer and that is written on the paper and accordingly a report has to be
sent to the head office informing the correct status of the stock in the store.
In the last stock approximately worth Rs 1.75 lakhs of the stock was missing
and it is a serious concern for the store.

Stock management:

The range of items and materials - stocks - which might be held in Stores is huge. The
variety and quantity of items and materials held in the Store of a particular enterprise
will depend on its size and on its range of activities.

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What we refer to as stock Management comprises mainly the clerical and
administrative functions of stores work. It involves:

 ensuring that the right types and qualities of items needed for production, sale
and distribution, are always available when required;
 ensuring that stock is issued in the correct sequence, that is, ―first in first out‖,
so that ―older‖ stock is not allowed to deteriorate by being kept too long in the
Store, for instance because it has been hidden from view by more recently
received stock;
 maintaining records showing the ―movement‖ of items into and out of the
Store, controlling and monitoring those movements and maintaining full
records of the items in the Store;
 ensuring that the correct ―stock levels‖ of the various items are set and are
maintained that orders and reorders are made (or requested to be made) in
good time, and that what is ordered is received;
 checking, counting or otherwise measuring stock to ensure that records are
accurate and that no losses are occurring due to pilfering, theft, damage or
poor storage;
 pricing and valuing the items in the Store;

What is involved in stock management?

The term storekeeping covers the actual handling of the items or materials received
into, held in and issued from the Store. The work involves:

 receiving items and materials, including the inspection of them;


 storing the various stock items in the most appropriate fashion, binning and/or
racking them by the best methods, and placing them in such a way that any
item or material in the Store can be located quickly and easily when it is
required;
 ensuring the safety of all items and materials whilst in the Store - that is,
protecting them from pilfering, theft, damage and deterioration;
 ensuring, when necessary, that items issued from the Store are so packed that
they will not be damaged or caused to deteriorate whilst in transit to their
destinations.

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DIMENSIONS OF JOB SATIFACTION

Job satisfaction is a complex concept and difficult to measure objectively. The level
of job satisfaction is affected by a wide range of variables relating to individual,
social, cultural, organizational factors as stated below:-

DIMENSIONS

INDIVIDUAL SOCIAL ORGANIZATIONAL ENVIRONMENTAL CULTURAL

FACTORS FACTOR FACTORS FACTOR

Individual: Personality, education, intelligence and abilities, age, marital status,


orientation to work.

Social factors: Relationship with co-workers, group working and norms,


opportunities for interaction, informal relations etc.

Organizational factors: Nature and size, formal structure, personnel policies and
procedures, industrial relation, nature of work, technology and work organization,
supervision and styles of leadership, management systems, working conditions.

Environmental factors: Economic, social, technical and governmental influences.

Cultural factors: Attitudes, beliefs and values.

These factors affect job satisfaction of certain individuals in a given set of


circumstances but not necessarily in others. Some workers may be satisfied with
certain aspects of their work and dissatisfied with other aspects .Thus, overall degree
of job satisfaction may differ from person to person.

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Chapter 4

PERFORMANCE AND APPRAISAL OF EMPLOYEES

The history of performance appraisal is quite brief. But this is not very helpful for the
same may be said about almost everything in the field of modern Human resource
management. As a distinct and formal management procedure in the evaluation of
work performance, appraisal really dates from the time of the Second World War –
not more than 60 years ago. Yet in a border sense the practice of performance
appraisal is a very ancient art. In the scale of things historical, it might well lay claim
to being the world‘s second oldest profession.

DEFINITION

Randell:

Organizations attempting to develop their staff appraisal and development


procedures are strongly advised to keep the activities of performance, not only but
also in paperwork, procedure and responsibility. All employing organizations carry
out some form of performance with their implications for design and conduct of
appraisal schemes and emphasis appropriate training of staff involved.

Heyel:

―It is the process of evaluation of the performance and qualifications of the


employees in terms of the requirements of the job for which he is employed, for
purpose of administration including placements, selection for promotion, providing
financial rewards and other action which require differential treatment among the
members of a group as distinguished from action affecting all members equally.‖

Nature of Performance Appraisal:

The Managerial personnel analyses the assessment of employee performance.

The appraisal mainly based on employee performance.

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THEORETICAL PERSPECTIVE OF THE STUDY

Performance appraisal are considered to be the vital tool, to measure the performance
of an employee and use the information collected, to optimize the resource of
individuals in an organization. It is systematic evaluation of individuals with respect
to their task performance and their potential for development individually and
collectively. It refers to the assessments of an employee‘s actual performance,
behaviour on jobs and his/her potential for further performance. The main purposes
of appraisal are to assess training need to effect promotion and to give high pay.

We may say that appraising the performance of an individual has been known as merit
rating, but in recent years, we may closure different terminologies have been used to
denote this process such as performance appraisal, performance review, performance
evaluation, employee appraisal, progress appraisal report, personal preview and so on.

ESSENTIALS OF GOOD APPRAISAL SYSTEM:

It must be easily understandable. If the system is too complex or time consuming it


may be anchored to the ground by its own dead – weight of complicated forms which
nobody but the experts understand.

It must have the support of all the people who administer the process of performance
of sales, service evaluation.

The system should be open and participate. Not only should it provide feedback to
the employees on their performance. It should also involve then in the goal setting
process. This helps in planning performance better.

The system should be both valid and reliable. The validity of ratings is the degree to
which they are truly indicative of the tonic merit of employees. The reliability of
ratings is the consistency with which the ratings are made, either by different raters at
different times. Both validity and reliability result from objective database.

The system should have built-in-incentive that is a reward should follow satisfactory
performance. Many authors, however, advocate against a direct linkage between
appraisal and rewards. In their opinion, such a connection throttles downward

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communication of performance appraisal because superiors do not like being
questioned by disgruntled subordinate in the event of an adverse appraisal.

The systems have genuine follow-up mechanism to identify employees‘ growth


needs. In the absence of such mechanism, every employee would view the post
appraisal interviews, as a more eyewash or as an exercise by meet to force its views
on him.

The system should make the employee fell that has been treated in a supportive
manner, some authors hold the view that even the best conducted performance
appraisal and review interview do not make the interviewee feel that he has been
treated in a supportive manner. In a study, it was revealed that for 82% of subordinate
personnel involved, the performance review was an ego-deflating experience.

The system should be periodically evaluated to be sure that is continuing to meet its
goals. Not only there is the danger that subjective criteria may become more salient
than the objective standards originally established, there is the further danger that the
system may become rigid in a tangle of rules and procedures, many of which are no
longer useful.

PURPOSE OF APPRAISAL:

 Helps promotions.
 Aids to training and development program
 Develop international relationship
 Wages or salaries administration
 Employee‘s development
 Employees effectiveness
 Identifying the strength and weakness
 Serves as an feedback to the employee
 It provides rational foundation for the payment of piece-work wages, bonus
and so on
 Helps management to do planning such as fixing targets, responsibilities.

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APPRAISAL PROCESS:

Objectives of Performance Appraisal

Establish job expectations

Design an appraisal programme

Appraise performance

Performance interview

Use appraisal data of appropriate purpose

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CRITERIA OF PERFORMANCE APPRAISAL:

Performance criteria for objective:

 Quantity and quality of output in a given period


 Amount of training necessary
 Ratings by supervisors
 Number of achievements reached in a given period

Performance criteria for sales targets:

 Every sales executive should give a minimum output designed by company.

Performance criteria for service technician’s targets:

 Every service executive should perform a minimum output designed by the


company.
 The service executive should do installation with a minimum output of
quantum as designed by the company.

Performance criteria for Service Engineers:

 They should see the effective loading of the software parameters in the
installations of machines

Performance criteria for Branch Managers:

 Return on capital employed


 Gain or loss in sales volume
 Effective rendering of service to the customers

PRINCIPLES OF PERFORMANCE APPRAISAL:

 Any activity off task can be measured by; some combination of cost, time and
quality indices.
 Measurement systems provide productivity.
 Professional work is measured in a group.
 Managers are appraised by effectiveness of their managerial compliance.
 The ultimate measurement is the measurement of effectiveness.

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METHODS OF PERFORMANCE APPRAISAL

TRADITIONAL

1. Rating Scales

2. Check list

3. Forced Choice Method

4. Critical Incident Method

5. Forced Distribution Method

6. Behavioral anchored rating scales

7. Field review method

8. Performance test and observations

9. Annual confidential reports

10. Essay method

11. Cost accounting approach

12. Comparative evaluation approach

MODERN

1. Assessment center

2. Management by objectives

3. Psychological appraisal

4. The 360o appraisal technique

5. Human asset accounting method

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PROBLEM IN PERFORMANCE APPRAISAL

The problem with subjective measure is the rating which is not verifiable by others
and has the opportunity for bias. The rate biases include: (a) halo effect (b) the error
of central tendency, (c) the leniency and strictness biases (d) personal prejudice, and
(e) the recent performance effect

(a) Halo Effect: It is the tendency of the raters to depend excessively on the rating of
one trait or behavioral consideration in rating all others traits or behavioral
considerations. One way of minimizing the halo effect is appraising all the employees
by one trait before going to rate on the basis of another trait.

(b) The error of Central Tendency: Some raters follow play safe policy in rating by
rating all the employees around the middle point of the rating scale and they avoid
rating the people at both the extremes of the scale. They follow play safe policy
because of answerability to management or lack of knowledge about the job and
person he is rating or least interest in his job.

(c) The Leniency and Strictness: The leniency bias crops when some raters have a
tendency to be liberal in their rating by assigning higher rates consistently. Such
ratings do not serve any purpose. Equally damaging one is assigning consistently low
rates.

(d) Personal Prejudice: If the rater dislikes any employee or any group, he may rate
them at the lower end, which may distort the rating purpose and affect the career of
these employees.

(e) The Recent performance Effect: The raters generally remember the recent
actions, of the employee at the time of rating and rate on the basis of these recent
actions favorable or unfavorable than on the whole activities.

Other factors that are considered as problems are:

Failure of the superiors in conducting performance appraisal and post-performance


appraisal interview is based on subjectivity and less reliability and validity of the
performance appraisal techniques. Negative ratings affect interpersonal relations and
industrial relations system. Influence of external environmental factors and
uncontrollable internal factors. Feedback and post appraisal interview may have a

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setback on production. Management emphasizes on punishment rather than
development of an employee in performance appraisal. Some ratings particularly
about the potential appraisal are purely based on guess work.

The other problems of performance appraisal reported by various studies are:

1. Relationship between appraisal rates and performances after promotions was


not significant.
2. Some superiors completed appraisal reports within a few minutes.
3. Absence of inter-rater reliability
4. The situation was unpleasant in feedback interview.
5. Superiors lack that tact of offering the suggestions constructively to
subordinates.
6. Supervisors were often confused due to too many objectives of performance
appraisal.

Advantages of Performance Appraisal through Computers:

There will be an objective analysis of traits of both the superior and subordinate and a
chance to subordinate to express his views even after performance appraisal.

An employee shall express his emotional needs and his value system which may not
be possible direct face to face with superior. Communication through computer
overcomes the communication barrier between the superior and subordinate.

Computer based appraisal will remove the inherent weakness of the appraisal system
that is subjective assessment of vague and abstract performance targets, unclear
guidelines for appraisal etc.

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Chapter 5

JOB SATISFACTION AND WORK SATISFACTION

Many of us labor under the misconception that job satisfaction and work satisfaction
are one and the same. When the job sucks, we start thinking, that we are in the wrong
profession and frustration starts building up.

A job is a role, and work is the means to fulfill that role. Job satisfaction can only
come if the role is clear, and the person is guided and developed to fulfill that role.
Work satisfaction pertains more to the work environment, people, boss, and everyday
actions. Put simply a job is the bigger strategic picture and work is the tactical
element of delivering that strategy. These two elements cannot be de-linked a ―job
satisfaction cannot exist without work satisfaction. A clear and fulfilling job role is
not enough without the means to deliver a supportive boss, a positive work
environment, interesting everyday work, and a balanced work-life.

A person don‘ t see anything wrong but there are a mundane routine and feels
nothing towards work life and is just hanging on because he is confused about doing
something else, now that he has spent so much time and effort into the existing
vocation. These are signs that there is something not right about his career.

The solution is the person needs to take a stock of his situation, sit back alone with a
paper and pen and list the things that he don‘t like about his work life. He can write
beginning with the things that he is mildly disappointed about and end the list with
things that he truly hates in his career. Then he must go through the list again and
mark the things that are unsatisfactory in his job (his current place of employment)
and those that have to do with his work the skills and the things that he has to do.
Adding up the things he has labeled in job and work whichever is higher, is the
culprit.

There are four aspects to one career: one is profession or work, and then is his
industry and organization and then his job profile. What one needs to do is find out
which of these is making you unhappy. For instance A is an accountant in an
advertising firm (the industry) working with XYZ Ltd and she has to do payroll

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processing, feeding data into computers, employee reimbursements and so on (the job
profile). One needs to find out which of these are problem areas. If he is unhappy with
his profession then he should try to change it, which may not be a practical solution
for many. But it has to be done if it really gives the person in the job a sense of
fulfillment. Then see if it is the industry that is the problem due to high pressure or
any other reason. If that is so, change it and look for an industry switch but keeping
the same profession.

If it is the company that is a problem, then find out what is it in that makes one
unhappy at the colleagues, the money, the vision? If the person cannot see any way of
adjusting then he must look out for a change. However if it is the job profile he is
unhappy about he may try to talk to his superior of the HR and see that he can be
changed or if he feels he needs a transfer to a different department.

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COMMON MYTHS ABOUT EMPLOYEE MOTIVATION

The topic of motivating employees is extremely important to managers and


supervisors. Despite the important of the topic, several myths persist -- especially
among new managers and supervisors. Before looking at what management can do to
support the motivation of employees, it's important first to clear up these common
myths.

1. Myth #1 -- "I can motivate people"

Not really -- they have to motivate themselves. You can't motivate people anymore
than you can empower them. Employees have to motivate and empower themselves.
However, you can set up an environment where they best motivate and empower
themselves. The key is knowing how to set up the environment for each of your
employees.

2. Myth #2 -- "Money is a good motivator"

Not really. Certain things like money, a nice office and job security can help people
from becoming less motivated, but they usually don't help people to become more
motivated. A key goal is to understand the motivations of each of your employees.

3. Myth #3 -- "Fear is a damn good motivator"

Fear is a great motivator -- for a very short time. That's why a lot of yelling from the
boss won't seem to "light a spark under employees" for a very long time.

4. Myth #4 -- "I know what motivates me, so I know what motivates my


employees"

Not really. Different people are motivated by different things. I may be greatly
motivated by earning time away from my job to spend more time my family. You
might be motivated much more by recognition of a job well done. People are not
motivated by the same things. Again, a key goal is to understand what motivates each
of your employees.

5. Myth #5 -- "Increased job satisfaction means increased job performance"

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Research shows this isn't necessarily true at all. Increased job satisfaction does not
necessarily mean increased job performance. If the goals of the organization are not
aligned with the goals of employees, then employees aren't effectively working
toward the mission of the organization.

6. Myth #6 -- "I can't comprehend employee motivation -- it's a science"

Not true. There are some very basic steps you can take that will go a long way toward
supporting your employees to motivate themselves toward increased performance in
their jobs. (More about these steps is provided later on in this article.)

Basic Principles to Remember

1. Motivating employees starts with motivating yourself

It's amazing how, if you hate your job, it seems like everyone else does, too. If you
are very stressed out, it seems like everyone else is, too. Enthusiasm is contagious. If
you're enthusiastic about your job, it's much easier for others to be, too. Also, if you're
doing a good job of taking care of yourself and your own job, you'll have much
clearer perspective on how others are doing in theirs.

A great place to start learning about motivation is to start understanding your own
motivations. The key to helping to motivate your employees is to understand what
motivates them. So what motivates you? Consider, for example, time with family,
recognition, a job well done, service, learning, etc. How is your job configured to
support your own motivations? What can you do to better motivate yourself?

2. Always work to align goals of the organization with goals of employees

As mentioned above, employees can be all fired up about their work and be working
very hard. However, if the results of their work don't contribute to the goals of the
organization, then the organization is not any better off than if the employees were
sitting on their hands -- maybe worse off! Therefore, it's critical that managers and
supervisors know what they want from their employees. These preferences should be
worded in terms of goals for the organization. Identifying the goals for the
organization is usually done during strategic planning. Whatever steps you take to
support the motivation of your employees (various steps are suggested below), ensure

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that employees have strong input to identifying their goals and that these goals are
aligned with goals of the organization.

3. Key to supporting the motivation of your employees understands what


motivates each of them

Each person is motivated by different things. Whatever steps you take to support the
motivation of your employees, they should first include finding out what it is that
really motivates each of your employees. You can find this out by asking them,
listening to them and observing them.

4. Recognize that supporting employee motivation is a process, not a task

Organizations change all the time, as do people. Indeed, it is an ongoing process to


sustain an environment where each employee can strongly motivate themselves. If
you look at sustaining employee motivation as an ongoing process, then you'll be
much more fulfilled and motivated yourself.

5. Support employee motivation by using organizational systems (for example,


policies and procedures) -- don't just count on good intentions

Don't just count on cultivating strong interpersonal relationships with employees to


help motivate them. The nature of these relationships can change greatly, for example,
during times of stress. Instead, use reliable and comprehensive systems in the
workplace to help motivate employees. For example, establish compensation systems,
employee performance systems, organizational policies and procedures, etc., to
support employee motivation. Also, establishing various systems and structures helps
ensure clear understanding and equitable treatment of employees.

Steps You Can Take

The following specific steps can help you go a long way toward supporting your
employees to motivate them in your organization.

1. Do more than read this article -- apply what you're reading here

This maxim is true when reading any management publication.

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2. Briefly write down the motivational factors that sustain you and what you can
do to sustain them

This little bit of "motivation planning" can give you strong perspective on how to
think about supporting the motivations of your employees.

3. Make of list of three to five things that motivate each of your employees

Read the checklist of possible motivators. Fill out the list yourself for each of your
employees and then have each of your employees fill out the list for them. Compare
your answers to theirs. Recognize the differences between your impression of what
you think is important to them and what they think is important to them. Then meet
with each of your employees to discuss what they think are the most important
motivational factors to them. Lastly, take some time alone to write down how you will
modify your approaches with each employee to ensure their motivational factors are
being met. (NOTE: This may seem like a "soft, touchy-feely exercise" to you. If it
does, then talk to a peer or your boss about it. Much of what's important in
management is based very much on "soft, touchy-feely exercises". Learn to become
more comfortable with them. The place to start is to recognize their importance.)

4. Work with each employee to ensure their motivational factors are taken into
consideration in your reward systems

For example, their jobs might be redesigned to be more fulfilling. You might find
more means to provide recognition, if that is important to them. You might develop a
personnel policy that rewards employees with more family time, etc.

5. Have one-on-one meetings with each employee

Employees are motivated more by your care and concern for them than by your
attention to them. Get to know your employees, their families, their favorite foods,
names of their children, etc. This can sound manipulative -- and it will be if not done
sincerely. However, even if you sincerely want to get to know each of your
employees, it may not happen unless you intentionally set aside time to be with each
of them.

6. Cultivate strong skills in delegation

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Delegation includes conveying responsibility and authority to your employees so they
can carry out certain tasks. However, you leave it up to your employees to decide how
they will carry out the tasks. Skills in delegation can free up a great deal of time for
managers and supervisors. It also allows employees to take a stronger role in their
jobs, which usually means more fulfillment and motivation in their jobs, as well.

7. Reward it when you see it

A critical lesson for new managers and supervisors is to learn to focus on employee
behaviors, not on employee personalities. Performance in the workplace should be
based on behaviors toward goals, not on popularity of employees. You can get in a
great deal of trouble (legally, morally and interpersonally) for focusing only on how
you feel about your employees rather than on what you're seeing with your eyeballs.

8. Reward it soon after you see it

This helps to reinforce the notion that you highly prefer the behaviors that you're
currently seeing from your employees. Often, the shorter the time between an
employee's action and your reward for the action, the clearer it is to the employee that
you highly prefer that action.

9. Implement at least the basic principles of performance management

Good performance management includes identifying goals, measures to indicate if the


goals are being met or not, ongoing attention and feedback about measures toward the
goals, and corrective actions to redirect activities back toward achieving the goals
when necessary. Performance management can focus on organizations, groups,
processes in the organization and employees.

10. Establish goals that are SMARTER

SMARTER goals are: specific, measurable, acceptable, realistic, timely, extending of


capabilities and rewarding to those involved.

11. Clearly convey how employee results contribute to organizational results

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Employees often feel strong fulfillment from realizing that they're actually making a
difference. This realization often requires clear communication about organizational
goals, employee progress toward those goals and celebration when the goals are met.

12. Celebrate achievements

This critical step is often forgotten. New managers and supervisors are often focused
on a getting "a lot done". This usually means identifying and solving problems.
Experienced managers come to understand that acknowledging and celebrating a
solution to a problem can be every bit as important as the solution itself. Without
ongoing acknowledgement of success, employees become frustrated, skeptical and
even cynical about efforts in the organization.

13. Let employees hear from their customers (internal or external)

Let employees hear customers proclaim the benefits of the efforts of the employee .
For example, if the employee is working to keep internal computer systems running
for other employees (internal customers) in the organization, then have other
employees express their gratitude to the employee. If an employee is providing a
product or service to external customers, then bring in a customer to express their
appreciation to the employee.

14. Admit to yourself (and to an appropriate someone else) if you don't like an
employee --

Managers and supervisors are people. It's not unusual to just not like someone who
works for you. That someone could, for example, look like an uncle you don't like. In
this case, admit to yourself that you don't like the employee. Then talk to someone
else who is appropriate to hear about your distaste for the employee, for example, a
peer, your boss, your spouse, etc. Indicate to the appropriate person that you want to
explore what it is that you don't like about the employee and would like to come to a
clearer perception of how you can accomplish a positive working relationship with the
employee. It often helps a great deal just to talk out loud about how you feel and get
someone else's opinion about the situation. As noted above, if you continue to focus
on what you see about employee performance, you'll go a long way toward ensuring
that your treatment of employees remains fair and equitable.

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 Quantity and quality of output in a given period
 Amount of training necessary
 Ratings by supervisors
 Number of achievements reached in a given period

Performance criteria for sales targets:

 Every sales executive should give a minimum output designed by company.

Performance criteria for service technician’s targets:

 Every service executive should perform a minimum output designed by the


company.
 The service executive should do installation with a minimum output of
quantum as designed by the company.

Performance criteria for Service Engineers:

 They should see the effective loading of the software parameters in the
installations of machines

Performance criteria for Branch Managers:

 Return on capital employed


 Gain or loss in sales volume
 Effective rendering of service to the customers

PRINCIPLES OF PERFORMANCE APPRAISAL:

 Any activity off task can be measured by; some combination of cost, time and
quality indices.
 Measurement systems provide productivity.
 Professional work is measured in a group.
 Managers are appraised by effectiveness of their managerial compliance.
 The ultimate measurement is the measurement of effectiveness.

METHODS OF PERFORMANCE APPRAISAL

TRADITIONAL

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1. Rating Scales

2. Check list

3. Forced Choice Method

4. Critical Incident Method

5. Forced Distribution Method

6. Behavioral anchored rating scales

7. Field review method

8. Performance test and observations

9. Annual confidential reports

10. Essay method

11. Cost accounting approach

12. Comparative evaluation approach

MODERN

6. Assessment center

7. Management by objectives

8. Psychological appraisal

9. The 360o appraisal technique

10. Human asset accounting method

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PROBLEM IN PERFORMANCE APPRAISAL

The problem with subjective measure is the rating which is not verifiable by others
and has the opportunity for bias. The rate biases include: (a) halo effect (b) the error
of central tendency, (c) the leniency and strictness biases (d) personal prejudice, and
(e) the recent performance effect

(a) Halo Effect: It is the tendency of the raters to depend excessively on the rating of
one trait or behavioral consideration in rating all others traits or behavioral
considerations. One way of minimizing the halo effect is appraising all the employees
by one trait before going to rate on the basis of another trait.

(b) The error of Central Tendency: Some raters follow play safe policy in rating by
rating all the employees around the middle point of the rating scale and they avoid
rating the people at both the extremes of the scale. They follow play safe policy
because of answerability to management or lack of knowledge about the job and
person he is rating or least interest in his job.

(c) The Leniency and Strictness: The leniency bias crops when some raters have a
tendency to be liberal in their rating by assigning higher rates consistently. Such
ratings do not serve any purpose. Equally damaging one is assigning consistently low
rates.

(d) Personal Prejudice: If the rater dislikes any employee or any group, he may rate
them at the lower end, which may distort the rating purpose and affect the career of
these employees.

(e) The Recent performance Effect: The raters generally remember the recent
actions, of the employee at the time of rating and rate on the basis of these recent
actions favorable or unfavorable than on the whole activities.

Other factors that are considered as problems are:

Failure of the superiors in conducting performance appraisal and post-performance


appraisal interview is based on subjectivity and less reliability and validity of the
performance appraisal techniques. Negative ratings affect interpersonal relations and
industrial relations system. Influence of external environmental factors and
uncontrollable internal factors. Feedback and post appraisal interview may have a

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setback on production. Management emphasizes on punishment rather than
development of an employee in performance appraisal. Some ratings particularly
about the potential appraisal are purely based on guess work.

The other problems of performance appraisal reported by various studies are:

7. Relationship between appraisal rates and performances after promotions was


not significant.
8. Some superiors completed appraisal reports within a few minutes.
9. Absence of inter-rater reliability
10. The situation was unpleasant in feedback interview.
11. Superiors lack that tact of offering the suggestions constructively to
subordinates.
12. Supervisors were often confused due to too many objectives of performance
appraisal.

Advantages of Performance Appraisal through Computers:

There will be an objective analysis of traits of both the superior and subordinate and a
chance to subordinate to express his views even after performance appraisal.

An employee shall express his emotional needs and his value system which may not
be possible direct face to face with superior. Communication through computer
overcomes the communication barrier between the superior and subordinate.

Computer based appraisal will remove the inherent weakness of the appraisal system
that is subjective assessment of vague and abstract performance targets, unclear
guidelines for appraisal etc.

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Chapter 6

STRESS MANAGEMENT

Since the origin of the term 'stress' it is ambiguous 'stress' began life as a variant on
'distress' in the 14th century. It meant the experience of physical hardship, starvation,
torture, and pain. These days, however, the term revolves around the medieval
definition, in which 'stress' simply meant 'hardship'. The recent scientific
developments inform us that 'stress' is actually good for us. Stress is derived from the
Latin word stranger, meaning to draw tight, and was used in the 17th century to
describe hardships or affliction. During the late 18th century stress denoted "force,
pressure, strain or strong effort," referring primarily to an individual or to an
individual's organs or mental powers (Hinkle, 1973).

As has already been noted, stress has been defined as a stimulus, a response, or the
result of an interaction between the two, with the interaction described in terms of
some imbalance between the person developed, particularly that surrounding the
person-environment (P-E) interaction, researches have considered the nature of that
interaction and, more importantly, the psychological processes which it takes place
(Dewey, 1992).

Stress is a physiological and psychological imbalance. It arises due to the demands on


a person and that person‘s inability to meet these demands. Stress is the body‘s way of
reacting to any situation and it can have serious repercussions on an individual‘s life.
Yet, people fail to realize the importance of stress management in their lives.
Effective managers can stay in control of life, without panicking even under stressful
situations. They handle stress by planning work, taking regular breaks, and
rejuvenating them.

Stress: Meaning and Definitions

The term 'stress' has a different meaning for researchers in various disciplines. In the
biological literature, it is used in relation to single organisms, populations of
organisms, and ecosystems. Biologists refer to things such as heat, cold and
inadequate food supply as being sources of stress. Human biologists add to this

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microbial infection and taking toxic substances. Social scientists, for their part, are
more concerned about people's interaction with their environment and the resulting
emotional disturbances that can sometimes accompany it (Hinkle, 1987).

The term stress has many definitions (Lazarus & Folk man, 1984). We all define
stress as an internal state which can be caused by physical demands on the body (
disease conditions, exercise, extremes of temperature, and the like) or by
environmental and social situations which a evaluated as potentially, harmful,
uncontrollable, or exceeding resources for coping. The physical, environmental, and
social causes of the stress state are termed stressors.

Stress is a big problem in our society (Allen, 1983). Some75 percent of bodily disease
is said to be stress-related. For example, stress is often a factor in heart disease.
Furthermore, stress-related diseases cost American industry billions of dollars a year;
several billion tranquilizer pills are prescribed in the United.

Stress in individuals is defined as anything that disrupts the normal person‘s physical
or mental well-being. It occurs when the body performs activities outside its
capabilities or when a person faces extraordinary demands. A simple display of stress
may be a bad mood while an extreme display may be an act of violence. The process
of stress has a stressor or a stimulus. A stressor is a factor or stimulant that creates
stress. A stressor is not in itself either positive or negative or good or bad, it is how
one reacts to it that determines its positivity or negativity. For example, one person
may perceive stressor as a motivator, whereas another person may perceive it as a
constraint. One individual may perceive it as a challenge, another as a threat.

Stress can be positive or negative. Positive stress is called estruses and negative stress
is called distress. There is a difference between the ways in which estruses and
distress affect the body. Estruses triggers the body alarm, enhances attention,
performance, and creativity. It has temporary effects. For instance, a person applying
for a visa to the US may be under estruses, and once he/she obtains the visa his/her
stress levels come back to normal. Distress has a negative effect on the body. For
instance, an individual who has lost his/her job may become depressed, which is a
result of distress. Distress, if left unchecked, can have a serious effect on the body
over a period of time. The body‘s nonspecific response to the external situation results

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in stress and stress can create a number of health problems both mental and physical.
Some of these problems are sleeplessness, eating disorders, heart problems, and
suicidal tendencies. Stress represents the wear and tear of the human body.

Hens Selye, developed a model called the General Adaptive Syndrome model to
explain the stress phenomenon and the stress levels. This model has three stages. The
first stage, which is the alarm reaction stage, involves the body‘s response to or
familiarizing itself with the new situation or stressor. In this stage, an individual is
under estruses. The second stage is the resistance stage, which involves resisting and
reacting to the situation. In this stage, an individual is in a flight or fight situation (the
body‘s reaction to control stress situation). In this situation, the body prepares to
either escape from the situation or to survive in it. The third stage is the exhaustion
stage, which is the aftermath of resistance. If the resistance stage goes on for a long
period, then the person becomes distressed.

A certain level of stress can act as a motivator. Without stress, a person becomes
lethargic and dull. Good stress encourages a person to perform better. However, if this
stress exceeds the resistance level of the individual, it can turn into distress. The
perception of stress varies from person to person and each person has his/her own
stress limit. There are many reasons and sources of stress for every person. Also,
while some people tend to work better under pressure, there are others who cannot
bear the ‗last minute syndrome.‘ They panic when faced with even the most minor of
stressful situations.

Most of the stress situations people encounter in everyday life are minor and
relatively easy to cope with. When one feels hungry he/she may stop what he/she is
doing and go to the cafeteria for lunch; when he/she feels cold he/she puts on a
sweater or coat. A serious illness requiring major surgery, a broken engagement,
marital discard or divorce, the death of a loved one, flunking out of college, being
arrested, financial pressures or losses, social disapproval, severe guilt feelings and
value conflicts are example of such stressful situation. Stress may involve biological-
or-psychological-level processes. Pneumonia viruses‘ produces stress on a biological
level and the basic adjective reaction involves defense on the biological level. (1) The
basic types of stress we encounter and some of the particular stress that characterize

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our time and place in history, (2) factors influencing the severity of stress, and (3)
other key aspects of stress including its cost to the organism.

There are a wide range of environmental obstacles, both physical and social, which
can lead to the frustration of our needs. Earthquakes, famines, fires, accidents, and the
death of loved ones are major sources of the warning in the physical environment.
Pens we are in a hurry, rain when we want to play golf or tennis, advertisements that
make us want things we cannot have, red tape that prevents us from taking a desired
course, and long years of study before we can enter professional field are examples of
the counter less environmentally caused frustrations that plague us in everyday life.

Stress is term which the biological and social science have taken over with only
imperfect success from the physical sciences. In engineering usage a force directed at
an object is said to place it under stress. The resulting distortion or deformation
caused in the object by the stress is called strain. For example a small amount of
weight placed on a bridge would create a mild stress and the resulting strain would be
minimal. Increasing the weight and hence the level of stress.

Living systems-particularly human beings have advantages over nonliving ones in


meeting stress for they can anticipate and prepare for it change their strategies for
coping with it, and sometimes leave the field when it is too severe.

Response – Based Definitions of Stress

The origins of response-based definitions can be found in medicine and are usually
viewed from a physiological perspective a logical stance for a discipline trained to
diagnose and treat symptoms but not necessarily their causes. The work of Hans Selye
in the 1930s and 1940s marks the beginning of this approach to the study of stress. In
1936, Selye introduces the notion of stress-related illness in terms of the general
adaptation syndrome (GAS), suggesting that stress is a non-specific response of the
body to any demand made upon it (Selye, 1956). Selye‘s focus was medical: general
malaise was characterized by loss of motivation, appetite, weight, and strength.
Evidence from animal studies also indicated internal physical degeneration and
deterioration. Responses to stress were considered to be invariant to the nature of the
stressor and therefore to follow a universal pattern.

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Although the word stress usually has negative connotations, selye (1976) emphasized
that stress reactions are not automatically bad and that they cannot be avoided because
being alive is synonymous with responding to stress. In fact, a certain level of stress is
necessary for motivation, growth, development, and change has been referred to as
stress. However, unwanted, unmanageable stressor situations are damaging and can
lead to distress.

In a similar manner, any condition that makes an addictive demand on the organism
places it may undergo degree of stress. Mild stress usually causes little pain or strain,
for the individual has ample resources for coping with in and is not likely to see it as a
threat.

Stress as an Interaction

The interaction approach to defining stress focuses on the statistical interaction


between the stimulus and the response. This approach is essentially static (cause and
effect), with any consideration of process being limited to inferential explanations
when the interaction fails to materialize or is different from that predicted. This is
where, according to Lazarus and Launier (1978), description has taken a back seat to
simple cause-effect formulations.

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THEORIES OF STRESS

A. Biological theories of stress

1. Somatic-weakness theory

2. Specific-reaction theory

B. Psychological Theories

A. Biological Theories of Stress

These theories explain psychological disorders in terms of specific weakness or hyper


activity of an individual organic system as and when she or he responds to a stressful
experience. The Stress is explained as a responds either the paucity or abundance
requisite quantum of bio-chemical material.

1. Somatic-weakness Theory

The fundamental assumption of somatic-weakness theory is that weak bodily organs


are pre-disposed to generate a specific kind of stress, leading to a particular
physiological disorder. A particular organ system may remain weak in view of several
factors vis-à-vis genetic deficiency, undetected juvenile illness or diet imbalance
deficiency etc. these factors may cumulatively disrupt a particular organ system
making it weak and vulnerable to stress e.g., severe ulcers might be generated owing
to a weak digestive system, which ulcers in their true may lead to serious stressful
events and consequent psychological disorders.

2. Specific-reaction Theory

According to specific-reaction theory, no hard and fast explanation can be


categorically branded as the prime mover or shaker of stress. Different individuals
respond to stress differently and every organic system has its own idiosyncrasies way
to cope up with ongoing situational pressures. This theory maintains that the body
system that is the most responsive may most likely become the locus of a particular
psycho-physiological disorder e.g., high blood-pressure may be more amenable to
hypertension.

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B. Psychological Theories

These theories explain the development of various psycho-physiological disorders in


terms of such factors as: unconscious emotional states, personality traits, cognitive
appraisal and specific styles of coping with stress.

1. Psychoanalytic theory

Psychoanalytic theories explaining the development of stress undermine the role of


conscious-emotional states specific to each disorder. According to Alexander (1950)
various psycho-physiological disorders can be explained as a function of our
unconscious emotional states.

Alexander has further argued that repressed hostile impulses invariably lead to
chronic emotional states. Such states, in turn, are responsible for hypertension,
anxieties and worries and depression. "The damming up of such hostile impulses if
continues might develop stronger defensive measures in order to keep pent-up
aggression in check-because of the marked degree of their inhibition. These patients
are less effective in their occupational activities and for that reason tend to fail in
competition and….hostile feeling towards more successful, less inhibited, competitors
are further intensified"

2. Cognitive and behavioral theory

Cognitive and behavioral theories explained stress as a function of cognitive and


behavioral factors. The perceptions and experiences stimulate sympathetic system
activity. However, psychological resentments and regrets are too embedded to be
easily tossed out of one's system. They are not as readily escapable as are the
perceived or real external threats. Nor can they be readily explained away, often they
keep our sympathetic system aroused. Such an arousal keeps the body in a continuous
state of emergency. It is unbearable to sustain a balanced behavioral pattern for long
in such circumstances. The necessary balancing of sympathetic and parasympathetic
action are so gets tougher by the day. More often than not, the equilibrium is lost and
one is overtaken by distress, such a bodily changes that can last longer that they were
meant to. This further contributes to an imbalance between sympathetic and
parasympathetic activity going on in our system. Some psychologists have assumed

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that man's higher mental faculties out-compete his physiological endowments. This is
the inbuilt dichotomy operating in human's albeit, very subtly and silently. Moral,
valuation or attitudinal changes may be experienced at very higher or deeper levels of
consciousness and our bodies may not be attuned to such experiences easily and
readily. In fact, it is pointed out that our bodies are not designed to cope up with the
outgoing pressures of our higher mental faculties. They are not built to withstand the
storms brought about by our mental capacities. Thus, life-experience of human beings
seems continuously to be exceeding their resources or capacities to cope with them.
Such a dichotomous state of affair is inherently germane to the fructification of
chronic stresses and conducive to the development of psycho-physiological disorder.
Therefore, most humans are prone to this or that kind of stress-related disorder.

STRESSORS

Almost any change in the environment—even a pleasant change, such as a vacation-


demands some coping; and a little stress is useful in helping us adapt.

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STRESS CYCLES
Change Stressors Disease Stressors Phobic Stress

Chemical Stressors Emotional Stressors Physical Stress


Where
stress Commuting Stressors Environmental Stressors Social Stress
come s
Decision Stressors Family Stressors Work Stress
from

Stress Overloading

Behavioral (e.g. Physiological (e.g. Emotional (e.g. Cognitive (e.g.


Immediate over eating and heightened heightened increased
effects excessive muscle tension, anxiety, distraction and
alcohol elevated blood depression and decreased
consumption pressure and anger) concentration
rapid heart beat)

Behavioral Medical disorders Emotional Cognitive


disorders (e.g. (e.g. headaches, disorders e.g. disorders (e.g.
Long term obesity and hypertension and chronic anxiety many problems,
effects alcoholism) heart disease) and depression, obsessive
phobias, thoughts and
personality sleep disorder).
changes mental
illness)

Decreased Productivity Decreased Enjoyment


Over all costs
Decreased Intimacy

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DISTRESS

Change Stressors Disease Stressors Phobic Stress

Where Chemical Stressors Emotional Stressors Physical Stress


stress
come Commuting Stressors Environmental Stressors Social Stress
sfrom
Stress Overloading

Behavioral Physiological Emotional (e.g. Cognitive (e.g.


Immediate (e.g. over (e.g. heightened heightened increased
effects eating and muscle tension, anxiety, distraction and
excessive elevated blood
depression and decreased
alcohol pressure and
consumption rapid heart anger) concentration
beat)

Behavioral Medical Emotional Cognitive


disorders (e.g. disorders (e.g. disorders e.g. disorders (e.g.
Long term chronic anxiety
obesity and headaches, and depression, many problems,
effects
alcoholism) hypertension phobias, obsessive
and heart personality thoughts and
disease) changes mental sleep disorder).
illness)

Decreased Productivity
Over all costs
Decreased Enjoyment

Stress has a number of immediate effects and, if the stressors are maintained, long-
term behavioral physiological, emotional, and cognitive (thinking) effects occur. If
these effects hinder adaptation to the environment or create discomfort and distress,
they themselves be- come stressors and, as shown by the dotted arrow in tend to
perpetuate a cycle of distress, On the other hand, many people have developed ways
of coping with stressors so that they are able to respond adaptively. This is the
wellness cycle of. Teaching people adaptive ways of handling stress so as to promote
the wellness.

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Cause of stress

There are several factors causing stress. Recently, Desai (1999) classified stressors
into three major categories viz., (1) Physiological, (2) Psychological, and (3)
Environmental.

Physiological Causes: The physiological category includes genetic and congenital


factors, life experience, biological rhythms, sleep, posture, diet, fatigue, muscular
tension, and disease of adaptation.

Environmental Causes: This category of stressors consists of those factors which


originate from the environment like ambient environment, physical events,
psychological sub-systems, physiological sub-systems, Social events and biotic
events.

Eysenck (1996) also divided stressors into three broad categories:

Stressful life events: This situation usually occurs mainly as a result of our
relationship with other people; Environmental stressors: The stressors of this category
are like noise, vibration, electric shock and heat; Technological threat: This type of
threat posed by nuclear power advances sophisticated technology (automated devices)
and the sick building syndrome.

Major causes of stress include illness, job changes, boredom, separation and divorces,
deaths in the family and financial difficulties. However, the arrival of a baby, or
entertaining guests, can be stressful.

In his popular book, Future shock (1970), Alvin Toffler, attributes the future shock to
too much change in too short as ―the shattering stress and disorientation that we
induce in individuals by subjecting them to too much change in too short a time.‖

The major job conditions that cause stress for employees include:

(1) work-overload (2) time pressure; (3) poor quality and supervision; (4) role conflict
and ambiguity; (5) change of nay type, especially when it is major or unusual, and (6)
frustration.

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Factors in the severity of stress

In General stress is more severe more important the motives blocks the needs
deprived.

The longer the stress situation continues. The greater the number of adductive
demands placed on the individual at once or during a short interval of time. The more
unfamiliar and unexpected the problem the less adequate the individual‘s resources,
including personal resources and social supports

The stronger and more equal the opposing forces in conflict situation.

The closer one gets to the goal in approach avoidance conflict the greater the
perceived threat and the more imminent the threat.

The less tolerance the individual has for this type and degree of stress.

The more the individual sees the threat as imposed on him and beyond his control.

In addition to type source and severity of stress three additional aspects of stress are
of immediate interest. First is the individual nature of our stress. Patterns, however
similar life situation may appear. Second is the finding that as in the case of motives,
we may be only partially aware or even unaware of stress. And third is the problem
that adaptation. And third is the problem that adaptation to stress may be expensive
both physically and psychologically.

Stress may have positive effects

Although severe stress may lead to lowered adaptive efficiency and to wear and tear
on the system, stress can also have positive consequences. The following are some of
the possible positive effects of stress:

An individual may get a cheaper picture of his assets liabilities, and adaptive
potential. Increased competencies after flunking a test an individual may find more
effective methods of study and learn to put more efforts into his work. If he
acknowledges past approaches have not worked well an individual may find more
effective strategies. Persistent failure or frustration may lead an individual to a more
realistic appraisal of the alternatives actually open to him.

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Increased to and ―living with‖ difficult stresses, an individual may increase his ability
to meet stress as well as his confidence in his ability to do so. The concept of 'stress' is
elusive because it is poorly defined. There is no single agreed definition in existence.
It is a concept which is familiar to both layman and professional alike. It is understood
by all when used in a general context but by very few when more precise account is
required and this seems to be the central problem (Cox, 1985).

Stress to us is a very general term that means somewhat different though related
things at different levels of analysis. Each of the levels of stress analysis is partially
independent in that it refers to different conditions, and processes (Lazarus & Launier,
1978).

Stress a term borrowed from physics by W. Canon and H. Selye and set to mean the
mutual action of force that takes place across any section of the body is a state of
threatened homeostasis (Stratakis & Chorusos, 1995).

Stress is a subset of emotion (Lazarus, 1993). Stress is caused by a multitude of


demands (stressors), such as an inadequate fit between what we need and what we are
capable of, and what our environment offers and what it demands of us (Levi, 1996).
Stress is the external pressures and tensions the internal pressures (Saunders, 1997).

In the 1950's stress was described by researchers as a "response to internal or external


processes which reach those threshold levels that strain its physical and psychological
integrative capacities to, or beyond, their limit" (Basowitz, Persky, Korchin, &
Grinkler, 1955).

In the 1970s, Lazarus (1976) suggested that an individual's stress reaction "depends
on how the person interprets or appraises (Consciously or unconsciously) the
significance of a harmful, threatening or challenging event." Lazarus's work disagrees
with that of others who see stress simply as environmental pressure. Instead, "the
intensity of the stress experience is determined significantly by how well a person
feels he or she can cope with an identified threat. If a person is unsure of his/her
coping abilities, they are likely to feel helpless and overwhelmed.‖

Cummings and Cooper (1979) have designed and explained a way of understanding
the stress process that can be put in the following points.

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Individuals, for the most part, try to keep their thoughts, emotions, and relationships
with the world in a ―steady state‖.

Each factor of a person‘s emotional and physical state has a ―range of stability,‖ in
which that person feels comfortable. On the other hand, when disrupt one of these
factors beyond the range of stability, the individual must act or cope to restore a
feeling of comfort.

An individual‘s behavior aimed at maintaining a steady sate makes up his or her


―adjustment process‖ or coping strategies. A stress is any force that puts a
psychological or physical function beyond its range of stability, producing a strain
within the individual. Knowledge that a stress is likely to occur constitutes a threat to
the individual. A threat can cause a strain because of what it signifies to the person
(Cummings & Cooper, 1979).

Stress at work is a relatively new phenomenon of modern lifestyles. The nature of


work has gone through drastic changes over the last century and it is still changing at
whirlwind speed. They have touched almost all professions, starting from an artist to a
surgeon, or a commercial pilot to a sales executive. With change comes stress,
inevitably. Professional stress or job stress poses a threat to physical health. Work
related stress in the life of organized workers, consequently, affects the health of
organizations.

Job stress is a chronic disease caused by conditions in the workplace that negatively
affect an individual's performance and/or overall well-being of his body and mind.
One or more of a host of physical and mental illnesses manifests job stress. In some
cases, job stress can be disabling. In chronic cases a psychiatric consultation is usually
required to validate the reason and degree of work related stress.

Working on a project on stress at work, Andy Ellis, Ruskin College, Oxford, UK, has
shown in a chart how stress can adversely affect an employee's performance. In the
early stages job stress can 'rev up' the body and enhance performance in the
workplace, thus the term 'I perform better under pressure'. However, if this condition
is allowed to go unchecked and the body is revved up further, the performance
ultimately declines and the person's health degenerates.

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Symptoms

The signs of job stress vary from person to person, depending on the particular
situation, how long the individual has been subjected to the stressors, and the intensity
of the stress itself. Typical symptoms of job stress can be:

 Insomnia
 Loss of mental concentration,
 Anxiety, stress
 Absenteeism
 Depression,
 Substance abuse,
 Extreme anger and frustration,
 Family conflict
 Physical illnesses such as heart disease, migraine, headaches, stomach
problems, and back problems.
 Causes of Work Place
 Job stress may be caused by a complex set of reasons. Some of the most
visible causes of workplace stress.
 Job Insecurity

Organized workplaces are going through metamorphic changes under intense


economic transformations and consequent pressures. Reorganizations, takeovers,
mergers, downsizing and other changes have become major stressors for employees,
as companies try to live up to the competition to survive. These reformations have put
demand on everyone, from a CEO to a mere executive.

High Demand for Performance

Unrealistic expectations, especially in the time of corporate reorganizations, which,


sometimes, puts unhealthy and unreasonable pressures on the employee, can be a
tremendous source of stress and suffering. Increased workload, extremely long work
hours and intense pressure to perform at peak levels all the time for the same pay, can
actually leave an employee physically and emotionally drained. Excessive travel and
too much time away from family also contribute to an employee's stressors.

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Technology

The expansion of technology - computers, pagers, cell phones, fax machines and the
Internet - has resulted in heightened expectations for productivity, speed and
efficiency, increasing pressure on the individual worker to constantly operate at peak
performance levels. Workers working with heavy machinery are under constant stress
to remain alert. In this case both the worker and their family members live under
constant mental stress. There is also the constant pressure to keep up with
technological breakthroughs and improvisations, forcing employees to learn new
software all the times.

Workplace Culture

Adjusting to the workplace culture, whether in a new company or not, can be


intensely stressful. Making one self-adapt to the various aspects of workplace culture
such as communication patterns, hierarchy, dress code if any, workspace and most
importantly working and behavioral patterns of the boss as well as the co-workers,
can be a lesson of life. Maladjustment to workplace cultures may lead to subtle
conflicts with colleagues or even with superiors. In many cases office politics or
gossips can be major stress inducers.

Personal or Family Problems

Employees going through personal or family problems tend to carry their worries and
anxieties to the workplace. When one is in a depressed mood, his unfocused attention
or lack of motivation affects his ability to carry out job responsibilities.

Stress in the Work Place:

Work plays a powerful role in people's lives and exerts an important on their well-
being. Since the l960s paid work has occupied an increasing proportion of most
people's. Although employment can be an exciting challenge for many individuals, it
can also be a tremendous source of stress. Consequently, as work makes more and
more demands on time and energy, Individuals are increasingly exposed to both the
positive and negative aspects of employment. The relationship between work and
mental and physical health may also contribute to career adjustment as well as to the

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productivity and economic viability of companies. Three concepts are important to
understanding this relationship:

Stress an interaction between individuals and any source of demand (stressor) within
their environment.

A stressor is the object or event that the individual perceives to be disruptive. Stress
results from the perception that the demands exceed one's capacity to cope. The
interpretation or appraisal of stress is considered an intermediate step in the
relationship between a given stressor and the individual's response to it.

Appraisals are determined by the values, goals, individual commitment, as personal


resources (e.g. income, family, self-esteem) and coping strategies that employees
bring to the situation.

Newspaper headlines worldwide have heralded an unprecedented concern about the


detrimental effects of work stress. The United Nations World Labor Report attributes
the source of stress to work places that are unstable, impersonal, and hostile. Since the
early 1960s, researchers have been examining the psychosocial and physical demands
of the work environment that trigger stress. Research has identified many
organizational factors contributing to increased stress levels: (a) job insecurity; (b)
shift work; (c) long work hours; (d) role conflict; (e) physical hazard exposures; and
(f) interpersonal conflicts with coworkers or supervisors.

Reciprocally, elevated stress levels in an organization are associated with increased


turnover, absenteeism; sickness, reduced productivity, and low morale. At a personal
level, work stressors are related to depression, anxiety, general mental distress
symptoms, heart disease, ulcers, and chronic pain (Sauter, Hurrell, & Cooper, 1989).
In addition, many people are distressed by efforts to juggle work and family demands,
such as caring for sick or aging parents or children (Wiersma & Berg, 1991).
Therefore, any exploration of the relationship between work conditions and mental
distress must take into account individual factors such as sex, age, race, income,
education, marital and parental status, personality, and ways of coping. To have a
balanced approach to understanding work stress, it is necessary to recognize that
employment provides rewards that are both internal (intrinsic) and external (extrinsic)

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(Locke & Taylor, 1990), (e.g., skill development, self-esteem, money, variety from
domestic surroundings, social contacts, and personal identity).

Job control

Lack of control over work, the work place, and employment status have been
identified X both as sources of stress and as a critical health risk for some workers.
Employees who are unable to exert control over their lives at work are more likely to
experience work stress and are therefore more likely to have impaired health. Many
studies have found that heavy job demand, and low control, or decreased decision
latitude lead to job dissatisfaction, mental strain, and cardiovascular disease.

In general, job control is the ability to exert influence over one's environment so that
the environment becomes more rewarding and less threatening. Individuals who have
job control have the ability to influence the planning and execution of work tasks.
Research has found that it is the influence resulting from participation, rather than
participation per se, which affects job stress and health (Israel, House, Schurman,
Heaney, & Mero, 1989). For example, Jackson (1983) found that participation
(attendance at staff meetings) had a negative effect on perceived job stress, and a
positive effect on perceived influence. This, in turn, influenced emotional strain, job
satisfaction, absenteeism, and turnover intention. Similarly, Israel et al., (1989)
concluded that the ability to control or influence work factors (e.g., speed and pacing
of production) is linked to incidence of cardiovascular disease as well as to
psychosomatic disorders, job dissatisfaction, and depression.

Lazarus (1991) has identified three main strategies for reducing work-related stress.

Alter the working conditions so that they are less stressful or more conducive to
effective coping. This strategy is most appropriate for large numbers of workers
working under severe conditions. Examples include altering physical annoyances such
as noise levels, or changing organizational decision-making processes to include
employees.

Help individuals adapt by teaching them better coping strategies for conditions that
are impossible or difficult to change. A limitation to this strategy is that it is costly to
deal with each individual's unique transaction with the environment. Intervention
strategies could include individual counseling services for employees, Employee

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Assistance Programs, or specialized stress management programs, such as cognitive
behavioral interventions.

Individuals vary greatly in their capacity to endure stressful situations, and there is,
undoubtedly, self-selection in the kinds of jobs and stressors that individuals choose.
Because sources of stress may vary from worker to worker, providing a solution for
one worker may create stress for another worker. For example, if the organization
provides more opportunity for influence over the work process, the change in control
may be experienced positively by some but negatively by others. A partial solution to
this problem may involve intervening with groups of workers that are formed based
on person-environment relationships, and which contribute to the generation or
reduction of stress.

Sources of stress

Stress is unavoidable and has become an inherent part of human life. As mentioned
earlier, it arises as a result of the imbalance between the demands placed on an
individual and his/her capacity to meet those demands. For instance, if the demands
are way below his/her capacity, then the individual may feel bored and disinterested.
Conversely, if demands are way above his/her capacity, then the individual may feel
overwhelmed and thus feel the pressure. One way to handle such a situation is find a
balance between the demands and capacities. An individual must, therefore, try to
reduce demands from the environment and simultaneously increase his/her internal
capacity. To achieve this balance people must identify the sources of stress. There are
various sources of stress both at home and at work. The common ones can be
classified into internal and external stress.

Internal Stress

Human beings have a tendency to worry about actions that may or may not take place.
Internal stress generally happens when individuals worry about things outside their
control. The personality of an individual plays a vital role in stress management.
Every individual can be categorized into Type A and Type B personalities. An
individual of Type A personality has a continual sense of urgency and has an
excessive competitive drive. He/she is always in a hurry and is impatient. People with
Type A personality are obsessive about winning and do not have the ability to spend

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leisure time productively. These people are likely to be under stress even in minor
situations. People with Type B personality never sense the urgency of time. They
work at their own pace, with no need to prove their achievements. These people are
less likely to be under stress. Studies suggest that people with Type A personality are
at greater risk of getting heart attacks than people with Type B personality.

External Stress

This type of stress is the result of environmental influence on an individual. External


stress is a result of stress from the environment. This can be stress from family, work,
peers, and friends. Physical conditions such as poor lighting, loud noise, poor seating
arrangements, and extreme workplace temperatures (a too hot or too cold cabin) are
also stressors. Even the climate where one resides can be a significant contributor to
one‘s stress level. In particular, living in extreme climates can heighten an
individual‘s stress level. Temperature extremes and the amount of sunshine that exists
on a daily, weekly, or monthly basis can affect the level of stress experienced.

Types of Stress

Types of stress that are personal and work related are discussed below.

Personal stress:

This is extra-organizational stress. Individuals play many roles in life like that of a
father, brother, friend or mother, wife, sister, etc. In this process, various factors cause
stress.

Family stress: Family stress may arise from conflict of ideas or relationships with
spouse, children, siblings, parents. This stress may also be caused by the ill-health of a
family member, financial problems, a divorce, or the death of a dear one.

Health related stress: This may be a result of undetected or neglected health problems.
For example, a person may neglect minor ill health, which over a period may develop
into a serious health problem that may require immediate attention. Often people
ignore health and give importance to work. This results in loss of health and in stress.

Society related stress: Society related stress occurs due to the influence of the society
on an individual. Here friends, colleagues, and neighbors are the influencing factors.

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For example attending a community meeting after a long workday may seem very
stressful.

Work-related stress

This is organizational stress. Work-related stress relates to the working environment


and policies of the organization. Work related stress can be further classified into
organizational stress and job stress.

Organizational stress: The stress resulting from the conflict of organizational goals
with personal goals is called organizational or work place stress.

Lack of organization skills: Poor organization skills lead to confusion over

Delegation of authority and responsibility: For instance, an employee may be given


many responsibilities without sufficient authority. This would result in stress in
performing the duties and responsibilities.

Long work hours: Everyone has a natural body clock. Working against this clock
can create stress. Attempts to alter the body clock result in stress. Studies on call
center executives show clearly the toll long work hours take in terms of stress-related
illness. A person regularly working long hours without taking a break will be stressed.

Job Insecurity: Job insecurity is a major stress factor. This kind of insecurity and
lack of growth or promotions act as stressors. The higher the uncertainty, higher is the
stress. A sudden change in management and work policies can also result in stress.
For instance, a manager who has not been promoted for a long period may feel
insecure about his/her future prospects in the organization and feel stressed.

Job stress: Stress that occurs due to lack of resources or scarce resources at the
workplace is called job stress. Some of the common job stressors are:

Difficult clients/ Subordinates/ Superiors/ Colleagues: Every employee has to handle


a difficult client at some point of time. A difficult or dissatisfied client is a stress
creator. Uncooperative colleagues and subordinates too can build up high stress levels
at the workplace. Superiors often feel that putting pressure on subordinates brings out
the best in them, but this is not always true. Some employees feel overwhelmed under
stress and cannot work efficiently.

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Personal Inadequacy: This can be a lack of knowledge or skills to handle a particular
task or job. This can create stress.

Role conflicts: This is a conflict between a person‘s likes, values, and job
requirements. For instance, a manager may have to take a decision regarding firing a
subordinate keeping the organization‘s interest in mind even though he/she may like
the subordinate‘s work. This creates a conflict between his/her likes and job
responsibilities, resulting in stress.

Setting high goals: Setting high goals for oneself is a major stressor. For example, a
sales manager may fix some high sales target for himself/herself in a month. Not
achieving the target may result in stress and in extreme cases may even lead to
depression.

Overwork and deadlines: Extended periods of work or continuous work can lead to
extreme stress situations. Employees, especially those in the BPO industry are
required to work in shifts that result in irregular rest hours that create stress. Strict
deadlines and rigid plans create stress in employees.

Time and Stress: Stress is a result of doing things at the wrong times. It is a result of
mismanaging time and striving hard to stick to deadlines. By developing the art of
time management, people can reduce stress. Effective time management and stress
management are inter-dependent. Time management includes planning, delegating,
organizing, and performing tasks as per schedule. Working against deadlines can start
to create stress in a person‘s life over a period of time. Stress management deals
indirectly with time management, as time management is a measure to keep stress
under control.

Effects of stress

The human body‘s reaction to stress is natural. It results from the need to resist a
stressful situation. For example, when a person is nervous, there is an increase in
his/her pulse rate. This is a ‗fight or flight‘ response. However, things can go out of
control if too much stress is present. The person can have a heart attack or a nervous
breakdown. Too much of stress can tell upon a person‘s health. If neglected, it can
lead to serious health disorders at a later stage. Stress has both physical and
psychological effects on an individual.

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Chapter 7

OVERVIEW OF INDIAN RETAIL SECTOR

Indian retail industry – at a glance

Organized retailing has finally emerged from the shadows of unorganized retailing
and is contributing significantly to the growth of Indian retail sector.

Some facts about the Indian retail sector:

Retail is India‘s largest industry, accounting for over 10% of the country‘s GDP and
around 8% of the employment.

This sector is expected to increase three fold from the present Rs 5 billion.

Organized retail will form 10% of total retailing by the end of this decade (2010).

From 2006 to 2010, the organized sector will grow at the CAGR (Cumulative Annual
Growth Rate) of around 49.53% per annum.

Hypermarket is emerging as the most favorable format for the time being in India.

The Indian retailing sector is at an inflexion point where the growth of organized
retailing and growth in the consumption by the Indian population is going to take a
higher growth trajectory. The Indian population is witnessing a significant change in
its demographics. A large young working population with median age of 24 years,
nuclear families in urban areas, along with increasing working-women population and
emerging opportunities in the services sector are going to be the key growth drivers of
the organized retail sector in India.

Indian Retail industry, the industry which stands second in terms of employment
generation after agriculture is undoubtedly characterized by the widely dispersed
retail outlet situated at each nook and corner whether its urban India or rural. It is the
industry which is unlikely known for its unorganized formats. Paanwalas and
kiranawallas, street hawkers present everywhere are the various firms operating hither
and thither; and meeting the basic needs of the general public and creating a means of

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earning livelihood for many. In India, the retail industry is broadly divided into the
organized and unorganized sectors. The total market in 2005 stood at Rs. 10,000
billion, accounting for about 9-10% of the country s gross domestic product (GDP).
Of this total market, the organized sector accounted for Rs. 350 billion (about 3.5 %
of the total) of the total revenues. According to AT Kearney, the organized retailing
industry is expected to cross Rs. 1000 billion revenue mark by 2010. Traditionally,
the retail industry in India comprised of large, medium and small grocery stores and
drug stores which could be categorized as unorganized retailing. Most of the
organized retailing in India had recently started and was mainly concentrated in
metropolitan cities. Within a short span of five years retail sector in India has
witnessed great changes mainly on account of a gradual increase in the disposable
incomes of the middle and upper-middle class households. In order to reap the benefit
of growing economy more and more corporate houses including large real estate
companies are coming into the retail business, directly or indirectly, in the form of
mall and shopping center builders and managers, hence the sea change in retail secto
is highly evident.

ANTICIPATED GROWTH

 Current market size is roughly US$ 286 bn


 96% of the 12 Million stores are less than 500 Sq. ft.
 Forecast Growth rate for the retailing industry is roughly 8.3% for 2003-2008
 Sales from large format stores would rise by 24-49%
 Formal and modern format retailing would enjoy rapid growth
 Industry dynamics
 Low domestic competition
 Because of fragmented nature of industry
 Lack of exposure to global best practices
 Low entry barriers for unorganized retailing
 Moderate entry barriers for organized retailing
 Wholesale system under-invested leading to 20-40% wastage
 Non level playing field issues
 Wide differences in treatment of small and large retailers

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EMPLOYMENT IN RETAILING

Employment in Retailing


60 8.00%

7.00%

% of Total Labor
50
w holesale (M n)
Em ploym ent in

 6.00%
Retail and

 40 5.00%

force
 30 4.00%

3.00%
20
2.00%
 10 1.00%
 Indian
0 retail industry has always played an important role in
0.00%
improving
90 91the GDP
92 93growth
94 95rate96and97lifestyle
98 99 of00the01country. The
industry which traditionall yYear
comprised on mom and pop stores
spread hither and thither is in the revolutionary phase in the
Employment
present era. The way retailing % come a long way with
is done has

The emergence of organized or modern retail outlets, there are


big players like Big Bazaar, Spencer‘s and Vishal Mega Mart to
name a few who have changed the face of retailing in India.
These modern retail outlets have enormous financial and
technological support as compared to the traditional and
unorganized retail outlets. An attempt is made in this paper to
study the evolving formats of modern retail and to know their
impact on the traditional d istribution partners like retailers and
distributors. The paper also delves in to the application of
various suppl y chain management tools used by the modern retail
outlets. The study is conducted by using primary data analysis
and case-study approach.

ISHAN INSTITUTE OF MANAGEMENT & TECHNOLOGY Page 103


EMPLOYMENT IN RETAILING IS INCRAESING

Indian retail industry has always played an important role in improving the GDP
growth rate and lifestyle of the country. The industry which traditionally comprised
on mom and pop stores spread hither and thither is in the revolutionary phase in the
present era. The way retailing is done has come a long way with the emergence of
organized or modern retail outlets. There are big players like Big Bazaar, Spencer‘s
and Vishal Mega Mart to name a few who have changed the face of retailing in India.
These modern retail outlets have enormous financial and technological support as
compared to the traditional and unorganized retail outlets. An attempt is made in this
paper to study the evolving formats of modern retail and to know their impact on the
traditional distribution partners like retailers and distributors. The paper also delves in
to the application of various supply chain management tools used by the modern retail
outlets. The study is conducted by using primary data analysis and case-study
approach.

UNORGANIZED RETAIL

 Contributes 96% to total Retailing in India


 Typically small retailers.
 Evasion of taxes
 Difficulty in enforcing tax collection mechanisms
 No monitoring of labor laws

ORGANIZED RETAIL

 Contributes only 4% to total Retailing in India


 Typically large retailers
 Greater enforcement of taxation mechanisms
 High level of labor usage monitoring

ISHAN INSTITUTE OF MANAGEMENT & TECHNOLOGY Page 104


THE CHANGING INDIAN CONSUMER

 Greater per capita income


 Increase in disposable income of middle class households
 20.9% growth in real disposable income in ‘99-‘03.

GROWING HIGH AND MIDDDLE INCOME POPULATION

 Growing at a pace of over 10% per annum over last decade


 Falling interest rates
 Easier consumer credit
 Greater variety and quality at all price points

THE URBAN CONSUMERS

 Getting exposed to international lifestyles


 Inclined to acquiring asset
 More discerning and demanding than ever
 No longer need-based shopping
 Shopping is a family experience

CHANGING MINDSET

 Increasing tendency to spend


 Post Liberalization children coming of age100 mn 17-21 year olds. Tend to
spend freely.
 Greater levels of education

EMERGING RETAIL FORMATS IN INDIA

India is watching resurgence of Retail sector whereby it has grown from the
traditional Mom and Pop stores present here and there in the neighborhood catering to
the convenience of the consumers to the emergence of shopping centers mainly in
urban centers with facilities like car parking and finally growth of modern retail
formats like hyper and super markets trying to provide customer with 3 V s- Value,
Variety and Volume (Lakshmi Narayanaswamy, Mudit Sharma,). A brief description
of the various modern formats of retailing emerging in India:

ISHAN INSTITUTE OF MANAGEMENT & TECHNOLOGY Page 105


MALLS

Malls are an upcoming trend in retail market. They form largest share of organized
retailing today. Located mainly in metro cities, in proximity to urban outskirts.
Ranges from 60,000 sq ft to 7,00,000 sq ft and above. They lend an ideal shopping
experience with an amalgamation of product, service and entertainment; all under a
common roof. Examples include DLF City Center, The Metropolitan and Big Bazaar
around Delhi, Crossroads and R-Mall in Mumbai and Spencer s in Chennai are
revolutionizing the way middle class Indian consumers shop. These malls have very
efficient and effective supply chains which ensure product availability and tracking of
the product is feasible easily.

SPECIALITY STORES

A specialty store concentrates on a limited number of complementary merchandise


categories and provides a high level of service in an area typically under 8,000 square
feet (Levy, Michael 2006); Chains such as the Bangalore based Kids Kemp, the
Mumbai books retailer Crossword, RPG's Music World and the Times Group's music
chain Planet M, are focusing on specific market segments and have established
themselves strongly in their sectors. Since this format has less diverse product range
thus it is comparatively easy to manage supply chains.

DISCOUNT STORES

According to Levy and Weitz a Discount Store is a retailer that offers a broad variety
of merchandise, limited service, and low prices. Discount stores offer both private
labels and national brands, but these brands are typically less fashion-oriented than
brands in department stores. The discount stores or factory outlets, offer discounts on
the MRP through selling in bulk reaching economies of scale or excess stock left over
at the season. The product category can range from a variety of perishable/
nonperishable goods. The coverage of products in this kind of format is quite
extensive and the demand fluctuation is also high thus if offers challenges in
managing supply chains effectively.

ISHAN INSTITUTE OF MANAGEMENT & TECHNOLOGY Page 106


DEPARTMENT STORES

Department stores as the retailers that carry a broad variety and deep assortment, offer
some customer services, and are organized into separate departments for displaying
merchandise. These are the large stores ranging from 20000-50000 sq. ft, catering to a
variety of consumer needs. They can be further classified into localized departments
such as clothing, toys, home, groceries, etc. Departmental Stores are expected to take
over the apparel business from exclusive brand showrooms. Among these, the biggest
success is K Raheja's Shoppers Stop, which started in Mumbai and now has more than
seven large stores (over 30,000 sq. ft) across India and even has its own in store brand
for clothes called Stop!. It is one of the most complicated retail formats catering to the
most diversified set of consumer needs. It becomes very difficult to manage the
inventory of so many products and brands.

SUPER MARKET

As defined by Food Marketing Institute Supermarket is self-service food store with


grocery, meat and produce department and minimum annual sales of 2 million . In
India, there is growing number of such stores especially in metros and big cities
(Anjali, Gupta 2006). These are located in or near residential high streets. These
stores today contribute to 30% of all food & grocery organized retail sales. Super
Markets can further be classified in to mini supermarkets typically 1,000 sq ft to 2,000
sq ft and large supermarkets ranging from of 3,500 sq ft to 5,000 sq ft. having a strong
focus on food & grocery and personal sales.

HYPERMARKET

Combination food and drug stores average 4,600 square meters of selling space.
Hyper markets are even larger, ranging between 7,400 and 20,400 square meters. The
Hyper markets combines supermarket, discount warehouse retailing principles. Its
product assortment goes beyond routinely purchased goods and includes furniture,
large and small appliances, clothing and many items. The basic approach is bulk
display and minimum handling by stores personnel, with discounts offered to
customers who are willing to carry heavy appliances and furniture out of the stores.
Pantaloon Retail India Ltd. (PRIL) is now emerging as India s first Hyper Market

ISHAN INSTITUTE OF MANAGEMENT & TECHNOLOGY Page 107


chain. Modeled along the lines of global Hyper Market Chains like Wal-Mart, the Big
Bazaar will stock several product categories.

CONVINIENCE STORES

These are relatively small stores 400-2,000 sq. feet located near residential areas.
They stock a limited range of high-turnover convenience products and are usually
open for extended periods during the day, seven days a week. Prices are slightly
higher due to the convenience premium.

MBOs

Multi Brand outlets, also known as Category Killers, offer several brands across a
single product category. These usually do well in busy market places and Metros.

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EVOLUTION OF THE INDIAN RETAIL INDUSTRY

The Indian retail industry is evolving in line with changing customer aspirations
across product groups, with modern formats of retailing emerging. This is in line with
what has been observed in other developed markets. Organized retailing in most
economies has typically passed through four distinct phases in its evolution cycle. In
the first phase, new entrants create awareness of modern formats and raise consumer
expectations. In the second phase,

Consumers demand modern formats as the market develop - thereby leading to strong
growth. As the market matures, intense competition forces retailers to invest in back-
end operating efficiency. In the final phase, retailers explore new markets as well as
inorganic opportunities as growth tapers off.

India is currently in the second phase of this evolution, with Indian customers
becoming more demanding with their rising standard of living and changing lifestyles.
Change in customers' focus from just buying to shopping (buying, entertainment and
experience) has led to a pickup in the momentum of organized formats of retailing.

As the sector enters the third phase of evolution, supply chain management will attain
top priority. Fierce competition will force retailers to quickly respond to changes in
the market - bringing forth the importance of supply chain management in managing
stock availability, supplier relationships, new value added services and cost cutting.
Traditional retailers are expected to enhance their investments in supply chain, whilst
new entrants are likely to look at supply chain first before rolling out their national
reach. Foreign Direct Investment (FDI) if allowed will help bring in world class retail
practices and also provide boost to the supply chain infrastructure, which is at not as
responsive to the changing and flexible demands of the customers.

Growth in Organized Retail:

Indian Retail Market is by large unorganized. Organized retailing constitutes just 3%


of Rs. 9,30,00,000 Lakhs Indian retail market. However, the scale of organized
activity is not equally spread out across all sectors. The Watches sector is the most
organized of all with almost 40 percent of the market being controlled by branded and
organized players.

ISHAN INSTITUTE OF MANAGEMENT & TECHNOLOGY Page 109


The next most organized segment is that of Footwear (25%) followed by Clothing
(13.6%). Of all the retail sectors, the least organized one are Food & Grocery (1%),
Jewellery (2%) and Health & Beauty (2%). All three sectors are huge in size. F&G is
the largest of all sectors (worth Rs.6,15,00,000 Lakhs); India is the world's biggest
market for gold and jewellery though there is hardly any retailer with a national
presence in this sector other than a few; Health and beauty consciousness among
Indian consumers, especially the urban youth, is on the rise and consumers will
readily accept any quality offering in this context, service as well as product. There
exists huge potential in these and all other sectors.

Organized retail sector has been growing at 28% per annum but has only 3% market
share in the highly fragmented retail industry in India. AT Kearney has ranked India
as the second most attractive retail market after Russia, in its Global Retail
Development Index 2004 Report. The top ten cities account for 96% of total
organized retail, of which the top six cater to 82%.

The retailing industry in India, estimated at Rs. 9,30,00,000 Lakhs (2003-04) is


expected to grow at 5 percent per annum. The size of the organized retailing market in
2004 stood at Rs. 28,00,000 Lakhs, thereby making up a mere 3% of the total retailing
market. In line with predictions made by the first IMAGES-KSA Retail Report 2002,
organized retailing is well on its way to become a Rs. 35,00,000 Lakhs market by
end- 2005. Moving forward, organized retailing is projected to grow at the rate of 25-
30 percent per annum and is estimated to reach an astounding Rs. 1,00,00,000 Lakhs
by 2010.

Further, its contribution to total retail sales is likely to rise to 9 percent by the end of
the decade. Within the organized retail sector, clothing & textile dominate with a 39%
share of the pie followed by Food & Grocery, which have an 11% market share.
Going forward watches, jewellery and footwear will also increase their share of the
pie with increasing number of super & hypermarkets.

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Chapter 8
COMPANY PROFILE
History:

Our Company was incorporated as Lakme Limited (Lakme) on 5th December,


1952. It was promoted by The Tata Oil Mills Company Limited (TOMCO) as its
wholly owned subsidiary. Lakme was in the business of manufacturing, sale and
export of cosmetics, toiletries and perfumery products. The name of Lakme was
changed from Lakme Limited to Lakme Private Limited in December 07, 1954.

In 1981, Lakme set up a separate pharmaceutical division called Tata Pharma for the
manufacture, sale and export of drugs and pharmaceutical products.

In 1982, Lakme became a listed public company, pursuant to the public issue of
equity shares and divestment by TOMCO of part of its stake in Lakme.

In 1989, Lakme set up Lakme Exports Limited (Lakme Exports) a 100% export-
oriented unit in the Kandla Free Trade Zone. Lakme Exports was a 100% subsidiary
of Lakme.

In 1990, Lakme, through its Subsidiary Lakme Exports, acquired control and
management of a company called Miaami Pharma and Chemicals Private Limited
(MPCL), which was engaged in the manufacture and sale of intravenous fluids.

In 1993, Tata Oil Mills Company Limited was acquired by Hindustan Lever Limited
(HLL). The shares of Lakme held by TOMCO were acquired by Tata Sons Limited
(TSL) by virtue of which TSL became Promoter of Lakme.

In the year 1994, MPCL amalgamated with Lakme. Tata Pharma, the pharmaceutical
division of Lakme, was transferred, as a going concern to a separate Company called
Tata Pharma Limited, with effect from 1st April 1995. However, Lakme retained the
MPCL operations.

With effect from 1st January 1996, the sales and marketing infrastructure of Lakme
and its subsidiary were transferred to a joint venture company called Lakme Lever
Limited (Lakme Lever), which was a joint venture between Lakme and Hindustan
ISHAN INSTITUTE OF MANAGEMENT & TECHNOLOGY Page 111
Lever Limited (HLL), with each party holding 50% of the equity capital of the joint
venture company. At the same time, Lakme also transferred its brands, technologies
and related intellectual properties to its 100% subsidiary called Lakme Brands
Limited (Lakme Brands).

With effect from 1st September 1996, the MPCL Division was transferred to Bal
Pharma Limited, as a going concern.

In 1998, Lakme decided to divest from its cosmetics business and accordingly
transferred its entire holding in the capital of Lakme Lever to HLL. Lakme also
transferred its manufacturing facilities situated at Deonar, Mumbai to HLL. Lakme
Exports transferred its manufacturing activities situated at the Kandla Free Trade
Zone to HLL. The trademarks and other intellectual properties held by Lakme Brands
were also transferred to HLL.

Having divested from the cosmetic business, the management of Lakme saw a huge
opportunity in the area of apparel retailing, given the absence of established brands in
areas like ladies wear, kids wear, and household and gift articles. It was therefore
decided that Lakme would establish a strong presence in the apparel and soft goods
retailing market by opening a chain of Departmental Stores across the country, while
catering to requirements of customers in men's wear, ladies wear, kids wear, play
shop, household, gift shop and lingerie.

With this objective, in March 1998, Lakme acquired 100% Equity Shares of
Littlewoods International (India) Private Limited (LIIPL) from Littlewoods
International Limited, U.K. LIIPL was in the business of retailing of readymade
garments for men, ladies and children, household and gift items, accessories etc.

With effect from 1st January 1998, Lakme Exports was amalgamated with LIIPL and
the merged entity was named as Trent Limited.

Trent Limited, formerly known as Littlewoods International (India) Limited was


amalgamated with Lakme, with effect from 1st July 1998, and the name of Lakme
Limited was changed to Trent Limited.

ISHAN INSTITUTE OF MANAGEMENT & TECHNOLOGY Page 112


In September 2002, our Company along with its subsidiary, Trent Brands Limited
acquired shares in the capital of Fiora Services Limited (FSL), thereby making FSL a
subsidiary of our Company. FSL is engaged in the business of sourcing, warehousing
and clearing and forwarding services.

In October, 2004 our Company entered the mass-retailing segment by opening a


hypermarket store under the name and style of STAR INDIA BAZAAR, at
Ahmedabad.

In September 2004, our Company acquired 100% of the share capital of Satnam
Developers & Finance Private Limited (SDFPL). SDFPL is engaged in the business
of development of commercial property.

In August 2005, Fiora Link Road Properties Limited (FLRP) was formed. Entire share
capital of FLRP is held by our Company. FLRP is engaged in the business of
development of commercial property.

In September 2005, our Company acquired 100% of the share capital of Nahar
Theatres Private Ltd (Nahar). Nahar is engaged in the business of development of
commercial property.

In August 2005, our Company entered the books and music retail market with the
acquisition of 75% share in Landmark, a partnership firm and further acquired a 3%
share in March 2006. With effect from March 31, 2006, Landmark was converted into
limited company- Landmark Limited (Landmark).

During February 2007, Landmark acquired 2,40,000 equity shares (52.18%) of East
West Books (Madras) Private Limited (East West) for a total consideration of Rs.
1,14,76,800 making it a subsidiary of Landmark.

Landmark is a leading book and music retailer in the country and is poised for rapid
expansion. Landmark operates 9 stores located in various cities. Landmark has over
100,000 book titles and is a treasure trove for avid readers. Besides this it has a strong
presence in toys and furnishings.

Currently, our Company is carrying on the business of retailing of readymade


garments for men, ladies and children, household and gift items, footwear,

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accessories, toys etc., under the name "Westside" and mass retailing under the name
"STAR INDIA BAZAAR". Since the takeover of LIIPL, our Company has grown
from one store to twenty six stores of Westside, which are located at various places in
India and one store of STAR INDIA BAZAAR at Ahmedabad.

One of the distinguishing features of our Company is that it sells the products under
its own exclusive brand names. Our Company's brands "Westside", "Trent", "SRC",
"Richmond", "Sassy", "Street Blues", "Gia", "2 Fast 4 U", "Asscot" and "West sport"
have been well accepted and are fast gaining popularity. Our Company provides
quality products at reasonable prices to its customers. Value for money, styling, and a
pleasant and comfortable shopping ambience, accompanied by courteous service has
contributed to our Company's products being well accepted and well recognized.

Our Company has adopted the Tata Business Excellence Model in order to enhance
the quality of our Company's service and products. Our Company has also adopted the
Tata Code of Conduct and adheres to good corporate practices vide a Tata Brand
Equity and Business Promotion Agreement dated December 23, 1999. Our Company
vide the said agreement, can use and is associated with the Tata name, Mark and
Marketing Indicia in respect of our Company's products and services or other uses as
applicable.

Westside is established in 1998 as part of the Tata Group, Trent Ltd. And is one of the
India‘s largest and fastest growing chains of retail stores.

Style, affordable prices, quality these are the factors that have shaped Westside
success story in the retail fashion stores business. Launched in 1998 in Bangalore, the
Westside chain has, ever since, been setting the standards for other fashion retailers to
follow.

The Westside story really began in 1997, when the Tata‘s sold Lakme, their cosmetics
business, to Hindustan Lever and acquired the Britain-based Littlewoods retail chain.
A new entity called Trent Limited emerged from this move and Littlewoods was
renamed Westside.

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Vision and Mission:

At Westside our mission is to be regarded by our customers as the most relevant


retailer in the country.

In order to achieve this goal, we shall develop a comprehensive understanding of their


need, strive to win their confidence, and offer them best-in-class products and services
at affordable price.

We shall always obey in the forefront of fashion and services by anticipating and
exceeding the expectation of our customers.

Our leadership will be the product of our styling, quality and service consciousness.
We will continue to scale new heights of excellence through teamwork, in an
atmosphere that encourages creativity and innovativeness.

It is our policy to satisfy our customers with the large, quality and value of the
products we offer. However, if they are dissatisfied with any item that they might
have purchased we would take the necessary measures to assist them.

We expect our customers to return unused merchandise along with its receipt within
30 days; we would exchange the returned items or give our customers a complete
refund.

In the event that they do not have the receipt we would offer them an exchange or
provide them a gift voucher to current or last known selling price.

We have complete confidence in the quality of our merchandise however should our
customers have any grievances, we would be happy to address them once they are
brought to our attention.

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Head office and Branch office:

Registered office:

Bombay House

24, Homi Mody Street

Mumbai 400001, Maharashtra, India

Contact No.: +91-22-66658282

Fax No.: +91-22-22042081

Trent Limited Trent House

G Block, Plot No. C- 60,

Beside Citibank

Bandra Kurla Complex,

Bandra (East), Mumbai 51

Board no. 67009000 reception: 67009026/67009027

E-mail of the company: mywestside@trent-tata.com

Contact No. +91-022-66767575

Fax no.: +91-022-26106193

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PRODUCTS OF THE WESTSIDE

Ladies wear-

Ladies wear is displayed on the ground floor as well as on the first floor .Ground
floor is fully dedicated to Ladies western wear and first floor is for the Indian Ethnic
wear. During my 2 month program I was asked to look after the sale and stock of
ladies wear. Apart from apparel it also includes toiletries items. Ladies wear contain
only in-house brands.

Nuon: Nuon is the in house brand targeting to the ‗TEENAGERS‘ of the age
between 13-18 years. It includes latest merchandise of latest fashion. Which is easily
taken by the young girls? Nuon is the brand which has good sense of latest fashion .It
includes Sorts, Single pieces dress, Party wear dress, and designer dress.

Gia: Gia is unique collection is very good example of market segmentations. It is


targeted to plus sizes women who rarely find their dress at any stores. I personally
found that Gia has their own customer who regularly to check whether is there any
new stock in the display. Gia manages to achieve its target quite easily due to latest
collection and unique target customer.

Western Formal: Western formal includes corporate dresses and is targeted to office
going women and girls. It has wide range of collection of formal suiting‘s .Now a
days formal cloths are in need for corporate society so it is easily purchased by the
people.

Western Casual: Western Casual is meant for every on and it has widest range of
collection. Its price starts from 199 to 799 and size varying from extra-small to extra-
large. It has large collection and selected by the customer on one glimpse.

Ethnic Section: Ethnic section has the good collection of Indian wear i.e. salwar suit
and traditional kurta. That was most preferred by the women.

Toiletries: Toiletries includes cosmetic which comprises different outside brand such
as LAKME, REVELON, and CHAMBOR. It also includes hand bags which is from
both in-house and outside. Outside brand is Firoolee. Jewellery section is located at
center area of the ground floor which has 2 outside brand i.e. Gili and Cygnus.

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House hold section-

House hold section is divided into two parts soft goods and hard goods.

Soft good: it includes all these,

Towels: Towels are of two types Luxury and Friendly. Both contain Bath towel (70
by 140), Hand towel (40 by 60) and Face towel (35 by 35). The main difference
between these two towels are, that Luxury towel is made of large GSM (Grand
Square Meter).Which can absorb 1 drop of water in 1 second.

Bed linen section: Which include Bed cover single (60by90) and double (90 by108).
Pillow cover (17 by 27), Cushion cover (12by12) and (16 by 16).Bed linen are also of
two types Luxury and Friendly.

Table linen: Rectangle table cover is of two type friendly and luxury (60by100).
Square table cover is of two type friendly and luxury. Round table cover are of two
type friendly and luxury (60by60), Runner (14by72), Napkin (16by16) 2 pieces set,
Mat (13 by 19) 2pieces set, filler, pillow, cushion, booster.

Foot wear section-

Footwear section is occupying the least floor space but it can easily achieve its target.
Foot wear section is the only section having no authorized departmental manager and
sales officer. It is being taken by the senior sales associates.

Male:

In-house brands – Azzurro, David jones, Wespores

Outside brands- Id, Lee cooper, Provogue

Female:

In-house brands- Boho (Light weight), Head Over Hills (khola puri), and its Sholes
are of different material- Polyurethen, PVC, TRP (Tarry Rubber Plastic), Sweat
Leather.

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Kids wear section-

Kids wear department is further divided into four sub department.

Boys:

In-house brand-Street Blues

Outside brand- Harry porter

Girls:

In-house brand-Girls rule

Outside brand-Hanna Montanna

Infants: Includes new born and turny born

Play shop: Play shop has all outside brand some of them are as follow

1. Fisher price

2. My baby excel

3. Maesto

4. World republic

5. Toy craft

6. Barbie

7. Match box

8. Funskool

9. Hot wheel

10. Nuby

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Entry into Retail

The operating store in Bangalore and the knowledge of the retail industry in LIIPL
provided our Company with a sound foundation and the foray into the apparel retail
business was made under a brand name "Westside".

In a short span of 8 years Westside has positioned itself as one of the leading
organized apparel retailers in India taking the shortest time to break even in the
organized apparel retail sector in India. Our company has expanded its Westside
Stores in the major metros and mini-metros of India, and has its presence in 20 cities
and is spread across all the 5 regions. Our Company in a short span of over 8 years
has carved out a name for itself using a different business model of uniquely
positioning Westside as a chain of stores offering own label products. This business
model is not only a difficult model to implement successfully but is also difficult to
replicate thereby giving our Company a unique advantage.

Our competitors are now trying to change their business strategy to increase the share
of own labels. After having established its name in the apparel sector our Company
has expanded its focus to food and grocery business as a part of its strategy. This was
done to tap the huge potential lying in the food and grocery business with its target
segment being the SEC B /C. In 2004 we opened our first Hypermarket store under
the brand name - "Star India Bazaar"

The company has already established 36 Westside departmental stores (measuring


15,000 - 30,000 square feet each) in Ahmedabad, Bangalore, Chennai, Delhi,
Gurgaon, Ghaziabad & Noida (to be considered as 1 city), Hyderabad, Indore, Jaipur,
Kolkata, Ludhiana, Lucknow, Mumbai, Mysore, Nagpur, Pune, Rajkot, Surat,
Vadodara and Jammu. The company hopes to expand rapidly with similar format
stores that offer a fine balance between style and price retailing.

Trent ventured into the hypermarket business in 2004 with Star Bazaar, providing an
ample assortment of products made available at the lowest prices, aptly exemplifying
its ‗Chota Budget, Lambi Shopping‘ motto. At present Star Bazaar has 4 stores in 3
cities located in Ahmedabad, Mumbai and Bangalore. This store offers customers an
eclectic array of products that include staple foods, beverages, health and beauty

ISHAN INSTITUTE OF MANAGEMENT & TECHNOLOGY Page 120


products, vegetables, fruits, dairy products, consumer electronics and household
items at the most affordable prices. Star Bazaar also includes a larger range of
fashionable in-house garments for men, women and children, exclusively available at
the store.

In addition, Trent recently acquired a 76% stake in Landmark, one of the largest
books & music retail chains in the country. Landmark began operations in 1987 with
its first store in Chennai with a floor space of 5500 sq. ft. At present Landmark have
10 stores, varying in size from 12,000 sq. ft. to 45,000 sq. ft, 3 in Chennai and 1 each
in Bangalore, Gurgaon, Mumbai, Vadodara, Gurgaon, Pune, Lucknow and
Ahmedabad. Until 1996, Landmark‘s product portfolio comprised books, stationery,
and greeting cards. It was later that music was added to it. Landmark also sparked the
trend of stocking curios, toys and other gift items. What separates Landmark from
other stores of its kind is the range and depth of its stock.

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TATA CODE OF CONDUCT

1. National Interest

A Tata company shall be committed in all its actions to benefit the economic
development of the countries in which it operates. It shall not engage in any activity
that adversely affects such an objective. It shall not undertake any project or activity
to the detriment of the nation's interests, or those that will have any adverse impact on
the social and cultural life patterns of its citizens. A Tata company shall conduct its
business affairs in accordance with the economic, development and foreign policies,
objectives and priorities of the nation's government, and shall strive to make a positive
contribution to the achievement of such goals at the international, national and
regional level, as appropriate.

2. Financial Reporting and Records

A Tata company shall prepare and maintain its accounts fairly and accurately in
accordance with the accounting and financial reporting standards which represent the
generally accepted guidelines, principles, standards, laws and regulations of the
country in which the company conducts its business affairs.

Internal accounting and audit procedures shall fairly and accurately reflect all of the
company's business transactions and disposition of assets. All required information
shall be accessible to company auditors and other authorized parties and government
agencies. There shall be no willful omissions of any company transactions from the
books and records, no advance income recognition, and no hidden bank account and
funds.

Any willful material misrepresentation of and/or misinformation on the financial


accounts and reports shall be regarded as a violation of this code, apart from inviting
appropriate civil or criminal action under the relevant laws.

3. Competition

A Tata company shall fully strive for the establishment and support of a competitive,
open market economy in India and abroad, and shall cooperate in efforts to promote
the progressive and judicious liberalization of trade and investment by a country.

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Specifically, a Tata company shall not engage in activities that generate or support the
formation of monopolies, dominant market positions, cartels and similar unfair trade
practices.

A Tata company shall market its products and services on its own merits and shall not
make unfair and misleading statements about competitors' products and services. Any
collection of competitive information shall be made only in the normal course of
business and shall be obtained only through legally permitted sources and means.

4. Equal - Opportunities Employer

A Tata company shall provide equal opportunities to all its employees and all
qualified applicants for employment, without regard to their race, caste, religion,
colour, ancestry, marital status, sex, age, nationality and disability. Employees of a
Tata company shall be treated with dignity and in accordance with the Tata policy of
maintaining a work environment free of sexual harassment, whether physical, verbal
or psychological.

Employee policies and practices shall be administered in a manner that ensures that in
all matters equal opportunity is provided to those eligible and that decisions are based
on merit.

5. Gifts and donations

A Tata company and its employees shall neither receive nor offer or make, directly or
indirectly, any illegal payments, remuneration, gifts, donations or comparable benefits
which are intended to or perceived to obtain business or uncompetitive favours for the
conduct of its business. However, a Tata company and its employees may accept and
offer nominal gifts, which are customarily given and are of a commemorative nature,
for special events.

6. Government Agencies

A Tata company and its employees shall not offer or give any company funds or
property as donation to any government agencies or their representatives, directly or
through intermediaries, in order to obtain any favourable performance of official
duties

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7. Political Non-Alignment

A Tata company shall be committed to and support a functioning democratic


constitution and system with a transparent and fair electoral system in India. A Tata
company shall not support, directly or indirectly, any specific political party or
candidate for political office. The company shall not offer or give any company funds
or property as donations, directly or indirectly, to any specific political party,
candidate or campaign.

8. Health, Safety and Environment

A Tata company shall strive to provide a safe and healthy working environment and
comply, in the conduct of its business affairs, with all regulations regarding the
preservation of the environment of the territory it operates in. A Tata company shall
be committed to prevent the wasteful use of natural resources and minimize any
hazardous impact of the development, production, use and disposal of any of its
products and services on the ecological environment.

9. Quality of Products and Services

A Tata company shall be committed to supplying goods and services of the highest
quality standards, backed by efficient after-sales service consistent with the
requirements of the customers to ensure their total satisfaction. The quality standards
of the company's goods and services should meet the required national standards, and
the company should endeavour to achieve international standards.

10. Corporate Citizenship

A Tata company shall be committed to be a good corporate citizen, not only in


compliance with all relevant laws and regulations, but also by actively assisting in the
improvement of the quality of life of the people in the communities in which it
operates, with the objective of making them self-reliant.

Such social responsibility would comprise: initiating and supporting initiatives in the
field of community health and family welfare, water management, vocational training,
education and literacy, and encouraging the application of modern scientific and

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managerial techniques and expertise. This will be reviewed periodically in
consonance with national and regional priorities.

The company shall also not treat these activities as optional ones, but shall strive to
incorporate them as integral part of its business plan. The company shall also
encourage volunteering among its employees and help them to work in the
community. Tata companies are encouraged to develop social accounting systems and
to carry out social audits of their operations.

11. Cooperation of Tata Companies

A Tata company shall cooperate with other Tata companies by sharing physical,
human and management resources as long as this does not adversely affect its
business interests and shareholder value.

In the procurement of products and services, a Tata company shall give preference to
another Tata company as long as it can provide these on competitive terms relative to
third parties.

12. Public representation of the company and the Group

A Tata company shall honour the information requirements of the public and its
stakeholders. In all its public appearance with respect to disclosing company and
business information to public constituencies such as the media, the financial
community, employees and shareholders, a Tata company or the Tata Group shall be
represented only by specifically authorized directors and employees. It will be the
sole responsibility of these authorized representatives to disclose information on the
company or the group.

13. Third-Party Representation

Parties which have business dealings with the Tata Group but are not members of the
group, such as consultants, agents, sales representatives, distributors, contractors,
suppliers, etc. shall not be authorized to represent a Tata company if their business
conduct and ethics are known to be inconsistent with this code.

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14. Use of the Tata Brand

The use of the Tata name and trademark owned by Tata Sons shall be governed by
manuals, codes and agreements issued by Tata Sons. The use of the Tata brand is
defined in and regulated by the Tata Brand Equity & Business Promotion Agreement.

15. Ethical Conduct

Every employee of a Tata company, including whole-time directors and the managing
director, shall deal on behalf of the company with professionalism, honesty and
integrity, as well as high moral and ethical standards. Such conduct shall be fair and
transparent and be perceived to be as such by third parties.

16. Group Policies

A Tata company shall recommend to its board of directors the adoption of policies
and guidelines periodically formulated by Tata Sons.

17. Shareholders

A Tata company shall be committed to enhance shareholder value and comply with
all regulations and laws that govern shareholders' rights. The board of directors of a
Tata company shall duly and fairly inform its shareholders about all relevant aspects
of the company's business, and disclose such information in accordance with the
respective regulations and agreements.

Every employee shall be responsible for the implementation of and compliance with
this code in his or her professional environment. Failure to adhere to the code could
attract the most severe consequences, including termination of employment.

8. Regulatory Compliance

Every employee of a Tata company shall, in his or her business conduct, comply with
all applicable laws and regulations, both in letter and in spirit, in all the territories in
which he or she operates. If the ethical and professional standards set out in the
applicable laws and regulations are below that of the code, then the standards of the
code shall prevail.

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19. Concurrent Employment

An employee of a Tata company shall not, without the prior approval of the managing
director of the company, accept employment or a position of responsibility (such as a
consultant or a director) with any other company, nor provide 'freelance' services to
anyone. In the case of a whole-time director or the managing director, prior approval
must be obtained for providing such services from the board of directors of the
company.

20. Conflict of Interest

An employee of a Tata company shall not engage in any business, relationship or


activity, which might detrimentally conflict with the interest of his company or the
Group. A conflict of interest, actual or potential, may arise where, directly or
indirectly:

• An employee of a Tata company engages in a business, relationship or activity


with anyone who is party to a transaction with his or her company;

• An employee is in a position to derive a personal benefit or a benefit to any of


his or her relatives by making or influencing decisions relating to any
transaction;

• An independent judgment of the company's or Group's best interest cannot be


exercised.

The main areas of such actual or potential conflicts of interest would include the
following:

• Financial interest of an employee of a Tata company or his relatives, including


the holding of an investment in the subscribed share capital of any company or
a share in any firm which is an actual or potential competitor, supplier,
customer, distributor, joint venture or other alliance partner of the Tata
company. (The ownership of up to 1 per cent of the subscribed share capital of

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a publicly held company shall not ordinarily constitute a financial interest for
this purpose.)

• An employee of a Tata company conducting business on behalf of his or her


company, or being in a position to influence a decision with regard to his or
her company's business with a supplier or customer of which his or her
relative is a principal, officer or representative, resulting in a benefit to
him/her or his/her relative.

• Award of benefits such as increase in salary or other remuneration, posting,


promotion or recruitment of a relative of an employee of a Tata company,
where such an individual is in a position to influence the decision with regard
to such benefits.

• Acceptance of gifts, donations, hospitality and/or entertainment beyond the


customary level from existing or potential suppliers, customers or other third
parties which have business dealings with the company.

Notwithstanding that such or other instances of conflict of interest exist due to any
historical reasons, adequate and full disclosure by the interested employees should be
made to the company's management. It is also incumbent upon every employee to
make a full disclosure of any interest which the employee or the employee's
immediate family, which would include parents, spouse and children, may have in a
company or firm which is a supplier, customer, distributor of or has other business
dealings with his or her company.

Every employee who is required to make a disclosure as mentioned above shall do so,
in writing, to his or her immediate superior, who shall forward the information along
with comments to the person designated for this purpose by the MD/CEO, who in turn
will place it before the MD/CEO and/or the board of directors/executive committee
appointed by the board and, upon a decision being taken in the matter, the employee
concerned will be required to take necessary action as advised to resolve/avoid the
conflict.

If an employee fails to make a disclosure as required herein, and the management of


its own accord becomes aware of an instance of conflict of interest that ought to have

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been disclosed by the employee, the management shall take a serious view of the
matter and consider suitable disciplinary action against the employee.

21. Securities transactions and confidential information

An employee of a Tata company and his or her immediate family shall not derive any
benefit or assist others to derive any benefit from access to and possession of
information about the company or the Group, which is not in the public domain and
thus constitutes insider information.

An employee of a Tata company shall not use or proliferate information which is not
available to the investing public and which therefore constitutes insider information
for making or giving advice on investment decisions on the securities of the
respective Tata company on which such insider information has been obtained. Such
insider information might include the following:

• Acquisition and divestiture of businesses or business units;

• Financial information such as profits, earnings and dividends;

• Announcement of new product introductions or developments;

• Asset revaluations;

• Investment decisions/plans;

• Restructuring plans;

• Major supply and delivery agreements;

• raising finances.

22. Protecting Company Assets

The assets of a Tata company shall not be misused but shall be employed for the
purpose of conducting the business for which they are duly authorized. These include
tangible assets such as equipment and machinery, systems, facilities, materials and
resources as well as intangible assets such as proprietary information, relationships
with customers and suppliers, etc.

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23. Citizenship

An employee of a Tata company shall in his or her private life be free to pursue an
active role in civic or political affairs as long as it does not adversely affect the
business or interests of the company or the Group.

24. Integrity of Data Furnished

Every employee of a Tata company shall ensure, at all times, the integrity of data or
information furnished by him or her to the company.

25. Reporting Concerns

Every employee of a Tata company shall promptly report to the management any
actual or possible violation of this code, or an event he or she becomes aware of that
could affect the business or reputation of his/her or any other Tata company.

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Chapter 9
HR POLICIES
As we know that for production there are four M's required. These are Man,
Machine, Material, and Money. These all resources have equal importance in the
organization. To run the all other resources we need Man, broadly called as Human
Resources. To operate this large human resource effectively and efficiently we have
Human Resource Management. HRM is a process of acquiring, developing, maintain
and retaining the human resources.

These days we see that every economy is in era of Liberalization, Privatization and
Globalization. These trends have entered into retail market also. In India itself we see
that, FDI in Retail Sector is increasing. As in job distribution in India, Retail Sector is
the second largest employer after the agriculture (8%). In china this sector accounts
for 50 % of total jobs and growing at 15 % constantly.

These developments have been reflected in terms of increase in GDP, NI and other
indicators. But as its size has been increasing, tasks of HRM has also become too
complex. Acquiring, developing and retaining the human resources have become a
challenge. Consumer's habits are changing as media and advertisement trends. It is
going more difficult to deal with various customers.

So, the challenges OF HRM have become challenging in the retail sector, in India as
well in whole world.

Human Resource Management …

Human Resource Management deals with the man power of any organization. It
concerns about their procurement, developing and how to retain them. It‘s all how to
get the best of the human resources. It focuses on the working people. It is the
effective use of people to achieve both organizational and individual goals.

HRM consists of mainly two functions.

i. Managerial.
ii. Operational.

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In all it includes the following activities:

i. Procurement.
ii. Development.
iii. Compensation.
iv. After retirement.

As the organizations are expanding their scale the importance of human resources has
been increasing. Now a days we see that companies are going global, not in only
home country they are operating in other countries also, so the role of Human
Resource Management has become more crucial. Acquiring labor and getting work
from them is very difficult, because of cultural differences. In the meanwhile the
HRM is playing a vital role in any organization.

HR Policies related to the compensation system

Compensation Management is an integral part of the management of the organization.


Compensation Management contributes to the overall success of the organization in
several ways. To be effective, the managers must appreciate the value of competitive
pay, their human resources, and have an investment view of payroll costs. It is of
prime importance for an organization to maintain pay levels that attract and retain
quality employees while recognizing the need to manage payroll costs.

About compensation

The compensation management policy and the reward system of an organization are
viewed by the employees as indicators of the management attitude and concern for
them. A good compensation management system should be able to attract and retain
employee, give them a fair deal, keep the organization competitive and motivate
employees to perform their best.

Scope of compensation

In today‘s world organizations tries more to assess the worth of an individual in terms
of his performance and contribution to the organizations. With the growing demand of
workforce and constant challenges in the business environment, organizations have to
evolve and accurate system for evaluating jobs and assessing their worth.

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Compensation helps to determine the relative worth of a job in an organization in a
systematic, consistent and accurate manner. It also helps in estimating the basic pay
for each job in accordance with the importance of the job in the organizational
hierarchy. Once a basic pay is determined, the rewards, incentives and benefits
attached worth the pay, positions and performance are also determined. The basic
wages, incentives and rewards and benefits, together form the compensation package
of an employee.

A generalized compensation package across the industries:

Base pay

Base pay is the fixed compensation paid to an employee for performing specific job
responsibilities. It is typically paid as a salary, hourly or piece rate.

In the State, employee base pay is first determined when hired. Changes to an
employee's base pay can be made as he/she go through his/her career in these ways:

Change in job

When an employee changes job responsibilities, he/she may receive a:

Promotion - a change in duty assignment of an agency employee in one job class to


another job class in a salary group with a higher minimum salary rate. A promotion to
a higher level job class requires higher qualifications such as greater skills or more
experience and involves more responsibility. Employees promoted to positions in
Salary Schedules A or B will receive at least a one increment increase in salary (or 3.4
percent) or the minimum salary rate of their new salary group, whichever is higher.

Demotion - a change in duty assignment of an agency employee in one job class to


another job class that is in a salary group with a lower minimum salary rate. The
salary of a demoted employee in Schedule A or B must be reduced at least one step
(or 3.4 percent) below the employee's salary prior to the demotion. However, an
agency is not required to reduce an employee's salary if the employee accepts a
demotion in lieu of a layoff or is selected for a position in a lower salary group
because of applying for the position.

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Lateral transfer - a change in duty assignment of an agency employee that moves to
another job class in the same salary group.

Pay for performance

An employee may also receive a change in base pay for their performance in the same
job:

Merit increase - a movement in a Schedule A or B employee's salary to a higher rate


in his/her same salary group. The employee must demonstrate job performance and
productivity that are consistently above what is normally expected or required. To
receive a merit, employees must have been with the agency for six continuous months
and six months must have elapsed since their last promotion, merit, or one-time merit.

One time merit increase - a lump sum payment to an employee in a classified


position. The same rules for merit increases apply to these increases.

Salary reduction - an employee's salary can be reduced based on poor performance.


The disciplinary reduction in pay can go no lower than the minimum rate of the
employee's current salary group. Employees may have their pay restored to any rate in
the same salary group, up to and including their prior rate, as their performance
improves.

Differential pay

Differential pay is non-performance based pay usually given to accommodate a


specific working condition. The State offers several types of differential pay to
employees.

There are both state and federal requirements on how to address employee overtime.
The Overtime Management Guide addresses most questions regarding this subject.

I. FLSA Overtime - federal guidelines for paying employees who work overtime.

II. State Comp Time - state guidelines for paying employees who work overtime.

III. Longevity Pay - state guidelines for paying employees based on state service time.

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IV. Shift Differential - state guidelines for paying employees that work shifts different
than a normal schedule.

V. Hazardous Duty Pay - state guidelines for paying employees based on performing
work that could be hazardous to their health.

VI. On-Call Pay - state guidelines for paying employees for being on-call.

VII. Benefits Replacement Pay - state guidelines for paying employees the employer's
portion of Social Security taxes.

Variable pay

Variable pay is compensation that is contingent on discretion, performance or results.


It may be referred to as "pay at risk."

Enhanced Compensation Award - Agencies that meet certain performance criteria


may grant awards to employees who directly contribute to these performance
successes.

Retention Bonus - Bonuses paid in order to retain employees in state government.

Employee Recognition Award - Awards given to employees for recognition.

Indirect compensation:

Pay for time at work

Breaks - Rest periods of short duration, running from 5 minutes to about 20 minutes,
they are used to promote the efficiency of the employee and are customarily paid for
as working time. They must be counted as hours worked. Within the State of Texas,
these benefits are a matter of agreement between the employer and the employee.

Agency Events - Special events or programs planned by an agency to foster and


develop an agency‘s culture planned during an agency‘s work hours.

Training Hours - The time that employees are allowed for training activities and for
which they receive pay.

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Not at work:

Sick leave

State employees are entitled eight hours of sick leave per month. Sick leave with pay
may be taken when an employee is prevented from performing duties because of
sickness, injury, or pregnancy and confinement. Sick leave may also be taken if an
employee needs to care for a member of his or her immediate family who is actually
ill. Sick leave may be taken to care for members of an employee's family who do not
reside in the same household only if the time taken is necessary to provide care to a
spouse, child, or parent of the employee who needs such care as a direct result of a
documented medical condition.

To be eligible for accumulated sick leave with pay for a continuous period of more
than three working days, an employee must send the administrative head of his or her
agency a doctor's certification, or an acceptable written statement of facts, showing
the nature of the illness.

Agency heads may grant employees extended sick leave if they believe it is
warranted.

Each agency may establish a sick leave pool where employees donate hours to the
pool to be used by other employees who experience a catastrophic illness or injury
that forces an employee to use all of their sick leave time.

Holiday

State agency employees are entitled to a paid day off from work on national and state
holidays observed by the state. These holidays are specified by the Legislature each
session. A state agency must have enough state employees on duty during a state
holiday to conduct the public business of the agency except for those state holidays
that fall on a Saturday or Sunday, the Friday after Thanksgiving Day, December 24th,
or December 26th.

Employees who actually work on a national holiday or a state holiday will be allowed
compensatory time off during the 12-month period following the date of the holiday
worked.

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Admin leave

Agency heads are allowed to grant 32 hours of administrative leave per fiscal year to
employees for outstanding performance.

Vacation

Employees receive vacation leave based on length of their service.

Jury Service

A state employee is entitled to serve on a jury without any deduction from wages.
Officers or employees of the Senate, the House of Representatives, or any
organization in the legislative branch of state government establish exemption from
state jury service.

Emergency leave

State employees are entitled to time off with pay for a death in the family. An
employee's family is defined as the employee's spouse, the employee's and the
spouse's parents, and children, brothers, sisters, grandparents, and grandchildren of
the employee. An agency head may also grant emergency leave for other reasons
determined to be for good cause.

Income protection program

Mandated income protection programs

There are some federally mandated income protection programs.

Workers' Compensation - A benefit paid to an employee who suffers a work-related


injury or illness.

Unemployment Insurance - A program designed to provide a financial safety net for


individuals who become unemployed through no fault of their own.

Social Security and Medicare Taxes (FICA) - Taxes intended to help the elderly with
retirement and health care costs.

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Voluntary income protection programs

The State of Texas also offers some income protection programs for state employees:

Health Insurance - insurance against loss by illness or bodily injury

Life Insurance - insurance to be paid to a beneficiary when the insured dies

Retirement - program designed to provide an income for your retirement and other
future financial needs.

Deferred Compensation Plans - employer deduction from pay where employee does
not pay tax until they receive the distributions at a later date.

Non-financial compensation

Non-financial compensation is different incentives given to employees that are not in


the form of direct pay.

Alternative Work Schedules - there are many alternatives to a traditional 5 day, 8 hour
work schedule.

On-the-Job Training- showing workers how to perform tasks by observing others.

Work/Life Balance - when an employer understands the needs employees have to


juggle in their lives.

Developmental Opportunities - training and other opportunities for employees to


expand their knowledge and improve their skills.

Casual Dress - allowing employees to relax their dress code at work.

Types of incentive compensation

Two types of incentives are commissions and bonuses. A commission is a


compensation based on a fixed formula such as 2 percent of sales. For example many
retail sales people compensation is based on a fix percentage of the merchandise they
sale. A bonus is additional compensation awarded periodically base on an evaluation
of the employees performance. For example store managers often receive bonus at the

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end of the year based on their stores performance relative to its budgeted sales and
profit.

Besides incentives based on individual performance, retail managers often receive


additional income based on their performance, these profit sharing arrangements can
be offered as cash bonus based on firms profit or as a grant of stock option that link
additional income to performance of the firms stock

A number of retailer such as Walmart and home depot use stock incentives to
motivate and reward all employees, including sales associates. Employees are
encouraged to buy shares in their companies at discounted price through pay role
deduction plans. These stock incentives align employees‘ interest with those of
companies and can be very rewarding when company does well. However if growth
of the company stock price declines, employees morale declines too, corporate culture
is threatened, and demand for higher wages and more benefit develops.

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KEY STAFF
Managerial hierarchy:
Sales associate

Sales officer

Trainee department manager

Department manager

Assistant manager operation

Deptu manager operation

Manager operation (store)

Area manager

Regional manager

Operation head

Vice president Operation and HR head

Managing director

Chairperson

Board of directors

Board of directors of the company:

Name Designation
Mr. Farrokh K. Kavarana Chairman
Mr. Noshir A. Soonawala Director
Mr. Bakhtiar S. Bhesania Independent Director
Mr. Aspy D. Cooper Independent Director
Mr. Khushroo N. Suntook Independent Director
Mr. Zubin S. Dubash Independent Director
Mr. Noel N. Tata Managing Director

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Brief Description of the Chairman and Managing Director:

Chairman:
Upon retirement of Mrs. S. N. Tata as the Chairman, Mr. Farrokh K. Kavarana has
been appointed as the Chairman of the Board of Director of our Company, with effect
from October 31, 2006. Mrs. S. N. Tata has been appointed as the Chairman Emeritus
with effect from the same date. Mr. Farrokh K. Kavarana is also a Special Director
on the Board of Director of our Company, appointed by Tata Sons Limited, Promoter
of our Company in terms of Article 124 of the Article of Association of our
Company. A Director appointed as a Special Director shall not be liable to retire by
rotation or subject to the provision of the Act be removed from the office except by
Tata Sons Limited or its nominees or its successors. Mr. Farrokh K. Kavarana is also
the Chairman on the Board of other companies viz., Trent Brands Limited, Tata
Projects Limited, Tata AIG Life Insurance Company Limited, Tata AIG General
Insurance Company Limited, Tata Asset Management Limited, Tata Tea Inc.,
Tatatech Inc., Exegenix Canada Inc. and Inter Consumer Goods AG.

Managing Director:
Mr. Noel N. Tata was appointed on the Board of Directors with effect from.
December 18, 1997. He has been appointed as the Managing Director of our
Company with effect from June 15, 1999. Mr. Noel N. Tata, is a Graduate of Sussex
University (U.K.) and IEP (INSEAD). He has worked for two years with Nestle,
U.K., as a product manager. He has also worked as senior general manager with Tata
Exports Limited (now Tata International Limited) for 13 years. Mr. Noel N. Tata
possesses the necessary experience and expertise in the retail business.

Company Secretary & Compliance Officer:

Mrs. H.R. Wadia

Company Secretary

Taj Building, 2nd floor, 210, Dr. D.N. Road

Mumbai 400001, India

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Tel. No. : +91-22- 2207 7205; +91-22-2207 1464

Fax No. : +91-22-2207 0216

Email: hr.wadia@trent-tata.com

Website: www.mywestside.com

Domestic Legal Advisors to the Lead Manager

M/s. Crawford Bayley & Co

State Bank Buildings, 4th floor

N.G.N Vaidya Marg, Mumbai 400 023

IndiaTel.: +91-22-2266 3713

Fax. : +91-22-2266 3978 Email: sanjay.asher@crawfordbayley.com

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Key people at store level:

Store Manager

(Mr. Rajesh Shrivastav )

Assistant Manager Operation

(Mr. Sudhir Gupta


Store manager

(Mr. Rajesh Shrivastav


Department Manager )

Ladies Wear Kinds Wear Men’s Wear Household Foot Wear


Mr. Naveen Mr. Biswajit Mr.Rakesh

Sales officers

Rahis Khan Anand Kumar

Alok Bhatt Trilok

Minjan Pal Krishna

Rohit Chopra Deepu

Sales associate

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DUTIES AND RESPONSIBILITIES OF KEY STAFF

I have joined the Westside as a ‗Sales Associate‘. Duties and responsibilities


of a ‗Sales Associate‘ is as follow

JOB TITLE: Sales Associates

REPORT TO – Sales Officers, Department Manager, Assistant Manager-Operation


manager and other Authorized person.

JOB CONTEXT:

1. Each store has a number of departments, which consist of Menswear, Ladies


wear, Children‘s wear, Household, gift shop, play shop, coffee shop, etc. it
includes all types of merchandise. There will typically be a number of
jobholders within the department, each of whom will tend to ‗specialize‘ in a
section or more from one department as sales volumes allow. In addition to
this section/s on which the job holder concentrates, in case of exigencies of
work requirement, the service of the job holder would be utilized in other
departments, stockroom, customer service desk, other stores at the same
location or any other location etc. also.
2. The sales associate attends to the customer effectively and efficiently.
3. Ensures stock level on sales floor is maintained.

JOB CONTENT:

The main duties are summarized below:

Filling up on stock:

1. The job holder keeps a check on the levels of stock in his/her section. The
jobholder brings the stock from the stock room to the shop floor.
2. Where stock room stock levels are low, the jobholder will inform the Dept.
Manager/Assistant Manager Operations.
3. To bring/take merchandise from/to the delivery van to the stockroom/store.

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4. Stock is placed on the racks in the correct position. Where items are not
priced, the jobholder will check, process and price the Merchandise before
placing stock on sale.
5. The jobholder shall ensure that merchandise is laid out as per display
principle, i.e. sizes & ration are maintained.

Till operations:

1. The job holder operations tills, accepting cash, credit cards and vouchers.
When necessary, change will be obtained from cash office under instruction
from DM/AMO of his her department.
2. The job holder shall ensure that efficient and correct billing is done. He/she is
responsible for any till discrepancies.
3. The job holder has to ensure that he/she always has enough carry bags,
stationary, audit rolls and wrapping paper at the till point.

Customer service:

1. The job involves sales assistance to customers. The jobholder is expected to be


polite and helpful when dealing with customer queries or complaints- referring
them to DM/AMO when necessary.
2. To take responsibility for customer‘ follow up.
3. The jobholder should try and maximize sales through multiple purchases
without inconveniencing the customer.

Cleaning/Tidying:

1. This involves the maintenance of an excellent standard of presentation and


tidiness of the sales floor and till areas in which the jobholder works. To clean
and maintain all fixtures and fittings/bins so that they are dust/stain free at all
times.
2. The merchandise should be tidy and presentable at all times.

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Other duties:

1. When necessary, the jobholder may undertake duties such as, assisting with
layout changes-including moving, assembling fixtures and counters, providing
sales assistance to other departments of the store.
2. The jobholder shall always remain alert to ensure that shop lifting/internal
shrinkage in minimal.
3. The jobholder shall assist in visual merchandising/promotions inside and
outside the store.
4. To carry out all other duties ancillary and incidental thereto as well as other
duties assigned from time to time.

JOB ACCOUNTABILITIES:

1. Customer service
2. Replenishment
3. Till operation
4. Cleaning/Tidying
5. Stock take

RELATIONSHIPS:

External:

Customers- Serving or answering queries-Daily

Internal:

1. Assistant Manager- Operation and Departmental Manager-


Instructions/constant interaction and working contacts.
2. Other sales staff-Working contacts-Daily

SKILLS, KNOWLEDGE AND EXPERIENCE:

1. The jobholder must have at least passed SSC or possess equivalent


qualifications, must be able to speak English fluently and must have good
interpersonal/communication skills besides possessing a pleasant and
presentable personality.

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2. Knowledge of one of the local languages would be advantageous and
experience of at least one year in a reputed retail organization, though not
essential would be considered as an asset.

JOB CHALLENGES:

1. Catering to the varied needs of vast range of the customers, sometimes under
intense pressure at crowded counters and on the shop floor.
2. Has to be mentally alert and physically agile throughout working hours.
3. Act as the first and best interface between the organization and customers and
help the organization reach its prime target of ‗CUSTOMER DELIGHT‘. To
ensure that stock levels on the shop floor are maintained, stock is correctly
organized, the department is kept clean and tidy and to provide exceptional
service to our customers.
4. Dull sessions can be demotivating, countering this can be a big challenges.

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Chapter 10

FINDINGS

After doing of two months job, I can say that Westside‘s policies are very well mix of
theoretical and practical knowledge.

If I have been asked for the USP of Westside, I would say that Westside‘s promotion
is very much focused on world of mouth and publicity

One another fact I also find that Westside 80% to 90% target market is only 2%
population of India who are having more than 50000 per month income

Westside‘s staff training is one of the best training in industry. There was a concept of
coach. In every one section there is a coach and they are provided with coaching
material.

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LEARNING

It was a great experience for me to start my career from TATA, a globally recognized
company. As I was working as an employee I have been treated as a member of Tata
family. I learnt some of the important thing which I cannot learn if I would have done
summer training. This is the USP of my last two months of hard work. Other
concerned factor of my training is I have to carry cartons and other similar work as it
was the part of job. There were total 5 departments – ladies wear, menswear,
household, children wear and footwear. I was working in ladies wear department but
I have been trained in every field so that I can be transferred anywhere in store.

I have been trained in

1. induction
2. Customer service
3. Product knowledge
4. Till operation Billing (service as a cashier)
5. Inventory management
6. First aid and fir safety training
7. Manager opening closing
8. On the job training

My first week was totally devoted to understanding the environment of


store I have been giving training under the head of induction. In this I have
been given knowledge about company structure, in-house brand, outside
brand, shop in shop in store, section in store subsection in store, customer
service desk and about customer service.

In second week I have been explored to other modules of customer


service and product knowledge. I have been trained in different qualities,
aspects, clothes making process and other things. In customer service training
I have been explored to different need of customer and how can I satisfy them.
I have been also taught on job about handling customer queries product
knowledge etc.

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On the job I have learned lot of things as visual merchandising,
handling customer complaints, register maintenances etc. this time I have
learnt most significant part of training that is till operation in this I have been
explored to do billing, convincing for membership, paid membership and other
programmers.
Since after attacking on Tata in Bombay training for any emergency
condition become very significant. There were more than five mock drills for
handling situations of fire and bomb threat etc. This time another experience
happen; company changes its vision because of recession
It was a great time to learn because sale was just going to start from 2nd
of July 2009 I did pricing of stock, category management other significant
work to learn. I have been also trained in how to start a day and how to close it
(manager opening closing)
Hard schedules, big public and target pressure, and lot of experience but these
40 days was great – great learning I have been totally explored to practical
culture of retail industry, it was my fortune that I am doing my summer
training from TATA. My designation was sales associate, my division was
retail operation.

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SUGGESTIONS AND RECOMMENDATIONS

One of the lacking factors of Westside is their timing schedules of workers. I have to
work for 12 to 14 hours daily. Due to this our effectiveness goes slow and we do not
provide perfect service to our customer.

Another factor is that no good distribution of job. In management it is important to


assign jobs, responsibilities but their a sales associate also does a work of manger as
well as a work of house keeping

Lack of promotion is another factor on that Westside management should work. There
is a very much lack of promotion, most of the population does not know about
Westside and its offer.

As a Tata enterprise this organization is not able to give a stereo effect. Even most of
the people do not know that this a TATA enterprises

Their most of the top level employees are from internal promotion. They are not
explored to management theories because of this they are unable to work effectively.

There was a problem of security tag, sometime at the time of billing some products
were missed to remove tags that‘s why at the exit gate beep were siren then it was a
very embarrassing for the customer as well as employee of that store and I think that
employee should do the tags it in a proper manner.

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WORD OF THANKS

I take the opportunit y to pay heart y regards to Dr. D. K. GARG


(Chairman), Mr. M. K. VERMA (Dean) and placement head Mr. T. K.
GUHA for lending me their kind support for completion of m y project.

I thank all those who directl y or indirectl y supported me morall y,


financiall y and through provi ding knowledge by which I could
complete m y summer training.

Last but not the least I a m thankful to the management of Westside


team & especiall y to m y guide Mr. Rajesh Shrivastav whose co-
operation and guidance was a milesto ne in completion of m y project.

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BIBLIOGRAPHY

Books:

 Marketing Management : By Philip Kotler

 Marketing management : By Ramaswami

 Retail marketing : By Swapna Pradhan

 Retail marketing : By Chetan & Bajaj

Business magazines:

 Business Today

 Business World

 4P‘s

 India today

Newspapers:

 The Times Of India

 Economics Time

Web sites:

 http://www.mywestside.com

 http://www.en.wikipedia.org

 http://www.about.com

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