National Engineering Industries Limited

A REPORT ON EMPLOYEE SATISFACTION OF NATIONAL ENGINNEERING INDUSTRIES LTD.

Submitted by:SHEELU MATHEW PRATIMA SOMANI PRIYANKA AGRAWAL YAMINI BHOJAK

(PGDM 2ND SEM.MAHARISHI ARVIND INSTITUTE)

KIRAN (BBA, ICG COLLEGE) SHALINI GUPTA(MBA,MNIT)

1

PREFACE
In the rapid Industrial development of our country bearing is playing an important role in it. Consequently bearing manufacturing has become an interesting and useful subject for us. Therefore, preferred to undergo my practical training at NATIONAL ENGINEERING INDUSTRIES LIMITED, JAIPUR which is a leading bearing manufacturer in Asia. I listed all the departments of the company and attempt has been made here to prepare separate operational manual on all the departments.

ACKNOWLEDGEMENT

As a part of our Post Graduation degree in Management, I underwent training from 21st May,2012 20th July 2012 at NATIONAL ENGINEERING INDUSTRIES LIMITED, JAIPUR for a period of 2 months. We shall in my duties if I do not acknowledge thanks to the training officer, possible. We acknowledge thanks to my fellow student for discussing various points during the course of training which proved very useful in preparing this report. of National Engineering Industries Limited, Jaipur with whose permission my training in the factory was made

CONTENTS
INTRODUCTION REVIEW OF LITERATURE OBJECTIVES QUESTIONNAIRE CHARTS CONCLUSION

INTRODUCTION
National Engineering Industries Ltd., part of the 150 year old, multi-billion

dollar C.K. Birla group manufactures a wide range of bearings for automotive and railway industry as well as for general industrial applications under the brand name nbc . NEI, founded in the year 1946 as a pioneer industry in the field of bearing manufacture, now manufactures nearly 80 Million Bearings per annum in over 500 different sizes ranging from 6 mm bore to 1300 mm outer diameter having capability to manufacture bearing upto 2000 mm. diameter.

NEI is one of the largest domestic bearing manufactures with gross annual turnover of Rs. 1051 crore in 2010-11. The company exports bearings to more than 20 countries and is also exporting to OEMs in Europe and USA. NEI has grown at a CAGR of 19% since 2007-08. NEI manufactures a wide range of bearings namely ball and cylindrical roller bearings, double row angular contact bearings, tapered roller bearings for automobiles, railways and industrial applications and large diameter bearings for steel plants and rolling mills. The three plants situated at Jaipur, Newai and Manesar manufacture these products with approx. 2300-strong team, supported by a well-equipped R&D with bearing life testing facility. NEI Ltd. has been awarded the coveted 2010 Deming Application Prize, by the Union of Japanese Scientists and Engineers (JUSE), Japan, for achieving distinctive performance improvement through the application of Total
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Quality Management (TQM).The Deming medal confirms that our quality management systems are one of the best ,globally .For our customers, this means enjoying consistently superior products and assurance of highest quality for every NBC bearings they use . R&D is equipped to introduce new technology in the field of bearings and related products .All functions from concept design to product launch are an integral part of R&D . The activity begins from customer interaction by Application Engineering and QFD approach is used to understand customer requirements to translate into a useful product . It has a full fledged test centre for endurance as well as application testing .The test lab is being expanded to double the capacity in next four years. Advanced functions like Tribology ,Simulation ,Materials Technology and Lubrication technology have been added .The centre relies on the associate strength that has vast experience in the bearing industry . Academics excellence is being promoted by inclusion of specialists from IITs and RECs .The centre will be a leading technology centre in next 4 to 5 years.

PLANT AT JAIPUR : (i). Ball Bearing : Precision Ball Bearings from 6 mm bore to 75 mm bore diameter are manufactured on state of the art manufacturing facilities with in-process and post-process gauging in grinding and centrally air conditioned assembly lines with auto gauging and testing equipments. The latest advanced techniques for manufacturing and Quality Assurance are implemented to meet the rapid increase in demand for Quality, diversity of specifications and new types of bearings. This Division is spread over a covered area of 14,694 Sq. Meters. ii). Steel Ball : Precision Steel Balls up to 25 mm diameters for NBC Bearings are manufactured on precision grinding and lapping machines to achieve super finished surface, accuracy and roundness as per ISO standards. This Division is spread over a covered area of 4,700 Sq. Meters. (iii). Tapered Roller Bearing : Precision Tapered Roller Bearings are manufactured in Inch and Metric series from 15.875mm bore to 95.25mm bore with technology obtained from our earlier collaborator, Federal Mogul Corporation, USA and now with NTN Corporation, Japan. These bearings are used by all major Automobile manufacturers in the country as Original Equipment. This Division is spread over a covered area of 11,652 Sq. Meters.

iv). Railway Bearing : Roller Bearing in Axle Box: With the production of Roller Bearings and Axle Boxes since 1952, the company has fully met the requirements of the Indian Railways (one of the largest systems of the world) by designing and developing Axle Boxes and bearings for fitment to Locomotives manufactured by Diesel Locomotive Works , Chittaranjan Locomotive Works, various wagon builders, the ICF broad and meter gauge coaches. Over a million NBC bearings and boxes are in service with the Indian Railways. The development of completely indigenised Axle Boxes and bearings for the high speed Rajdhani Locomotive, the Yugoslavian and Egyptian Railway wagons are the highlights of the design capabilities at NEI. On date more than 100 types of Axle Boxes & Bearings have been manufactured. Spherical Roller Bearing: The manufacturing of Spherical Roller Bearings was started in the year 1975-76 for fitment to broad gauge and meter gauge passenger coaches with designs, technology, machines and equipment procured from the collaborators. Cartridge Tapered Roller Bearing: For fitment to the new BOX-IN Uprated Wagons designed by the RDSO, NEI is the only manufacturer in the country to indigenise these bearings to a high percentage under collaboration with the largest manufacturer of these bearings in the world. Production of these bearings commenced in the year1984. These bearings are grease packed and require no field lubrication for a period of 7 years.

This Division is spread over a covered area of 4,855 Sq. Meters. (v). Large Diameter Bearing: Self-sufficiency in steel is the call of the day, so is the importance of bearings in Steel Mills Equipment. NEI has the distinction of being one of the ten manufacturers of these bearings in the world, who can manufacture large diameter bearings up to 2000 mm diameter. The largest bearing manufactured by NEI for fitment to the Plate Mill of Rourkela Steel Plant was released by Mr. G.P. Birla in September 1985. This 4-Row Tapered Roller Bearing measures 1300 mm dia and weigh 4.39 tons. The large diameter bearings are mainly manufactured out of case carburising steel, heat treated on special equipment and furnaces developed by NEI. Precision grinding is done to close tolerances on CNC Twin Spindle Programmable Berthiez Machine for bearings ranging from 500 to 2000 mm diameter with electronic sizing and numerical display. Production of these bearings started in 1975 and to date over 100 different types of special large diameter bearings have been manufactured and successfully used, saving considerable foreign exchange for the country. The Large Diameter Bearings Division is spread over a covered area of 2,508 Sq. Meters.

RESEARCH & DEVELOPMENT AT JAIPUR : Design & Development :Complete in-house facility for design development of all types of bearings and tooling is available. The design of all types of bearings is done on ProEngineer 3D Modeling & Analysis Software. Complete engineering and research facility is available to solve intricate problems with expert advice on design, development, manufacturing, installation and maintenance of bearings. With the signing of the technical collaboration agreement with NTN Corporation, Japan & BRENCO Inc of USA, the capability to offer finest engineering services in the bearing industry has enhanced. Services of team of experienced engineers are available for selection of bearing as per application. Machine Building :NEI has the capability of machine building to design, develop and manufacture special purpose CNC Grinding Lines, HT Lines, Material Handling Equipments and other special purpose machines which have been made for its captive use to keep pace with latest technology. A well equipped electronic design, development laboratory with all testing facilities supports the Machine Building Division. Machine Building has the capability and supports the Manufacturing Divisions by overhauling and retrofitting of the existing equipments, resulting in upgraded quality and improved productivity.

R&D Division is spread over a covered area of 2,007 Sq. Meters.

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Employee satisfaction Employee satisfaction refers to a persons feeling of satisfaction on the job, which acts as amotivation to work. It is not the self satisfaction, happiness or self contentment but thesatisfaction on the job. The term relates to the total relationship between an individual and theemployer for which he is paid. Satisfaction does mean the simple feeling-state accompanyingthe attainment of any goal; the end-state is feeling accompanying the attainment by an impulseof its objectives. Job satisfaction does mean absence of motivation at work. Research workersdifferently described the factors contributing to employee satisfaction and employee dissatisfaction. The another view That is a satisfied worker is not necessarily a productive worker explainsthe relationship between job satisfaction and productivity. Various research studies alsosupport this view. This relationship may be explained in terms of the operation of two factors:effect of job performance on satisfaction and organizational expectations from individuals for job performance.1.Job performance leads to job satisfaction and not the other way round. The basic factor for this phenomenon is the rewards (a source of satisfaction) attached with performance.There are two types of rewards-intrinsic and extrinsic. The intrinsic reward stems fromthe job itself which may be in the form of growth potential, challenging job, etc. Thesatisfaction on such a type of reward may help to increase productivity. The extrinsicreward is subject to control by management such as salary, bonus, etc.
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REVIEW OF LITERATURE Although it has been more common to investigate employee attitude data at the individual employee level, researchers have begun to explore similar relationships at the business-unit level and the organizational level. Research conducted under the rubric of organizational climate has had success in aggregating individual employees perceptions and investigating their relationship to both organizational-level and individual-level outcomes (see, e.g., Schneider, White, & Paul, 1998; Zohar & Luria, 2005). In addition, there are a handful of studies that have explored the relationship between aggregated employee job satisfaction attitudes and organizational (or unit-level) performance. Ostroff (1992), studying a sample of 364 schools, investigated the relationship between employees attitudes and organizational performance. Ostroff found that aggregated teacher attitudes such as job satisfaction and organizational commitment were concurrently related to school performance, as measured by several performance outcomes such as student academic achievement and teacher turnover rates. Across 12 organizational performance indexes, the magnitudes of the correlations between teacher satisfaction and performance ranged from .11 to .54, with a mean of .28. When the unique characteristics of the schools were statistically controlled for, teacher satisfaction and other job-related attitudes continued to predict many of the organizational performance outcomes. Results were strongest for teacher satisfaction; thus, organizations with more satisfied employees tended to be more effective
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than organizations with dissatisfied employees. This study indicates that satisfaction is an important social process factor that fosters organizational effectiveness. The major limitation of this study pertains to the nature of the study sample; all organizations were secondary schools. The extent to which similar relationships would hold for organizations in other types of industries (manufacturing, service, etc) and occupations cannot be determined. Ryan, Schmitt, and Johnson (1996) investigated similar relationships between aggregated employee attitudes, firm productivity, and customer satisfaction. The authors measured these relationships at two points in time from 142 branches of an auto finance company. Results indicated employee morale was related to subsequent business performance indicators, customer satisfaction sentiments, and turnover ratios. These researchers attempted to study the causal relations among the variables; however, their attempts lead to mostly inconclusive findings. Interestingly, they did find evidence suggestive of customer satisfaction as a causal influence on morale (a finding that is opposite of the directionality assumed by the literature). Although a tentative finding, Ryan et al. (1996) discussed several possible explanations for it. For instance, the customer satisfaction index was monitored closely by unit managers and success or failure likely translated into management practices that influenced employees job attitudes. Moreover, the researchers speculated that the particular setting may be unusual in that customer satisfaction might be inversely related to the amount of contact with the organization (e.g., customers without problems with the processing of their payments are likely to have less interaction with company representatives than customers with such problems). Similar to Ostroffs (1992) study, the major concern with Ryan et al.s (1996) research is that the data were all from one organization which
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limits the generalizability of the findings. In a unique study conducted by Harter et al. (2002), the authors conducted a metaanalysis of studies previously conducted by The Gallup Organization. The study examined aggregated employee job satisfaction sentiments and employee engagement, with the latter variable referring to individuals involvement with as well as enthusiasm for work. Based on 7,939 business units in 36 organizations, the researchers found positive and substantive correlations between employee satisfaction-engagement and the business unit outcomes of productivity, profit, employee turnover, employee accidents, and customer satisfaction. More importantly, these researchers explored the practical utility of the observed relationships. For example, business units in the top quartile on the employee engagement measure yielded 1 to 4 percentage points higher profitability. Similar findings were found for productivity. Specifically, business units in the top quartile on employee engagement had, on average, from $80,000 to $120,000 higher monthly revenue or sales. Based on these data, it seems clear that aggregated measures of employee satisfaction and employee engagement are meaningfully related to business outcomes at a magnitude that is important to many (if not all) organizations. Incomparison to prior studies, the strength of Harter and his colleagues research is the large number of participants (n = 198,514), business units (n = 7,939), and firms (n = 36) included, thereby providing a level of precision and statistical power rarely found in scholarly (i.e., nonproprietary) research. Schneider et al. (2003) report analyses of employee attitude survey data aggregated to the organizational level of analysis. These authors explored the relationships between several facets of employee satisfaction and organizational financial (return on assets; ROA) and market performance (earnings per share; EPS) using data from 35 organizations over a period of eight years. Thus, in
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contrast to previous studies, Schneider and his colleagues study was able to make some inferences about directional causality (i.e., are employee attitudes a stronger cause of organizational performance than the reverse). Their results showed consistent and statistically significant positive relationships (over varied time lags) between attitudes concerning satisfaction with security, satisfaction with pay, and overall job satisfaction with financial (ROA) and market performance (EPS). Although these findings are consistent with applied researchers and managers implicit beliefs, their study was not without some surprises. One of the more surprising findings was related to overall job satisfaction and the performance criteria. Results demonstrated that the causal directionality flows from financial and market performance to overall job satisfaction. This latter result does not deny the fact that there were significant relations going from overall job satisfaction to ROA and EPS; nevertheless, the reverse direction relationships tended to be stronger in magnitude. Moreover, the relationship between satisfaction with pay and the performance indicators appeared to be reciprocal in nature. The obvious strength of this research study is the longitudinal nature of both the aggregated employee data and the financial and market performance data. By collecting longitudinal data on both sets of variables, these researchers were able to examine and begin to disentangle a set of very important but complex relationships. Are companies with happy workers more productive companies? One major issue regarding many of the reviewed studies relates to the causal nature of the relationship between aggregated employee satisfaction and organizational (or unit-level)
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performance. The implicit belief both in academe and practice is that the relationship runs from employee satisfaction sentiments to organizational effectiveness and efficiency outcomes. Moreover, this implicit assumption is apparent in the research studies reviewed here. That is, the attitude data were typically collected at one time period and performance outcomes were concurrently collected or at multiple time periods following the collection of the employee attitude data. The study conducted by Schneider et al. (2003) suggests that collecting data in this fashion may lead researchers to draw erroneous conclusions because their data prevent them from discovering significantly stronger relationships for performance causing satisfaction. It could be argued, for example, that employees who are in higher performing organizations are more likely to be satisfied than those in lower performing organizations simply because their organizations are doing well. Indeed, this causal pattern was found in the study conducted by Schneider and his colleagues (2003). Specifically, their data supported causal relationships between financial and market performance outcomes and employees overall job satisfaction and satisfaction for security. Although more research is needed before concrete conclusions are drawn, Schneider et al.s (2003) research demonstrates that employees can derive satisfaction from the knowledge or feedback that their organization is performing well and is accomplishing its goals a finding that is in stark contrast to the presumption found in the academic literature (see, e.g., Likert, 1961). When we consider the studies collectively, directional causality may work in both directions; employee satisfaction causes organizational performance and vice versa. Therefore, it seems most likely that reciprocal relationships exist and that, as noted by Gross and Etzioni (1985), organizational reality and human happiness go hand and hand (p. 4). Thus, although directions of
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causality remain unresolved, initial evidence suggests that aggregate employee attitudes have connections with organizational performance outcomes. What can we do to create happy employees, then? Given the fact that significant and practically important relationships exist between aggregated employee attitudes and organizational performance, it is important to question what factors contribute to satisfaction. The predominant view has focused on the situational context (e.g., supervisory support) as a cause of satisfaction and has argued that high-performance work practices and thus a positive working climate foster employee satisfaction (see, e.g., Bowen, & Ostroff, 2004; Wright, Dunford, & Snell, 2001; Wright, Gardner, Moynihan, & Allen, 2005). This rationale is consistent with recent research on the impact of financial and nonfinancial incentives (e.g., training) on business-unit outcomes. For example, Peterson and Luthans (2006) used a quasi-experimental, control group design and found that both types of incentives had a significant impact on store profit, customer service, and employee turnover. Initially, the financial incentive had a greater effect on all three outcomes (as one might expect). But over time, however, the financial and nonfinancial incentives exhibited equally significant impacts on two of the three outcomes (the exception was employee turnover). A brief comment on the need for a multidimensional measure of performance. Researchers have suggested that organizational effectiveness most likely reflects the
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combination and interaction of employee work behaviors that promote organizational performance (e.g., Ostroff, 1992). In other words, the definition of organizational performance may be too limited and narrow. Outcomes such as attendance, compliance, following of rules, cooperation, sabotage, and so on may also be important; however, such outcomes are usually not included in organizational performance criteria. Accordingly, we suggest that organizations wishing to explore the empirical connections between aggregated employee attitudes and organizational outcomes consider a wider range of performance-related outcomes.

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CONCLUSION The current understanding of how aggregated employee attitudes influence and are influenced by important business outcomes is limited. Based on the evidence to date, we conclude that employee satisfaction is related to meaningful business outcomes and that these relationships generalize across companies (and industries). Research efforts directed at further exploring these issues are sorely needed, and we believe there is potential for longitudinal research in the area of aggregated employee satisfaction. For example, future research should emphasize research designs that study changes in employee satisfaction and the causes of such changes. Through such longitudinal designs, the connections between aggregated job attitudes and performance can be more fully understood. At this point, evidence of directionality would suggest not only some directionality from employee attitudes to business outcomes (as well as the reverse) but also a reciprocal relationship in some cases!

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CHARTS
WORK ENVIRONMENT
DEPT. NAME. GENERAL STORE R&D BALL BEARING LDB SRB RAILWAY BEARING TRB

SD 10 21
260 25 4 224 254 798

D 15 3
168 24 4 137 147 498

N 45 25
700 65 31 279 414 1559

A 51 13
444 29 5 157 192 891

SA 22 2
501 52 4 242 252 1075

Q.T 143 64
2073 195 48 1039 1250 4812

SD%
16.6

D%
10.3

N%
32.4

A%
18.5

SA%
22

Q.T

COMMUNICATION
DEPT. NAME. GENERAL STORE R&D BALL BEARING LDB SRB RAILWAY BEARING TRB

SD 14 13 408 25 3 248 395

1106

D 5 14 227 17 3 150 166

582

N 41 26 678 78 40 281 348

1492

A 19 7 380 35 2 199 127

769

SA 58 0 379 35 2 160 176

810

Q.T 137 60 2072 190 50 1038 1231

4778

SD%

D% 20

N%

A%

SA%

Q.T

23.1

12.2

31

16.1

17.0

COMPENSATION & WELFARE

DEPT. NAME. GENERAL STORE R&D BALL BEARING LDB SRB RAILWAY BEARING TRB

SD 28 36 469 67 7 434 553

1594

D 20 1 304 30 6 87 146
594

N 24 21 511 61 32 180 257

1086

A 36 0 356 13 0 132 100

637

SA 13 1 224 3 0 99 82
422

Q.T 121 59 1864 174 45 932 1138

4333

SD%

D% 21

N%

A%

SA%

Q.T

36.8

13.7

25.1

14.7

9.7

QUALITY
DEPT. NAME. GENERAL STORE R&D BALL BEARING LDB SRB RAILWAY BEARING TRB

SD 6 9 148 7 1 108 51
330

D 5 6 105 14 0 64 53
247

N 31 22 473 57 28 284 445

1340

A 51 2 429 33 6 117 170

808

SA 22 9 497 48 2 252 290

1120

Q.T 115 48 1654 159 37 825 1009

3847

SD%

D% 22

N%

A%

SA%

Q.T

8.6

6.4

34.8

21.0

29.1

TECHNIQUE
DEPT. NAME. GENERAL STORE R&D BALL BEARING LDB SRB RAILWAY BEARING TRB

SD 6 16 162 5 1 129 240

559

D 3 6 165 20 1 73 91
359

N 9 16 504 61 20 265 312

1187

A 69 9 415 32 2 179 161

867

SA 33 7 401 39 9 163 214

866

Q.T 120 54 1647 157 33 809 1018

3838

SD%

D%

N% 23

A%

SA%

Q.T

14.6

9.4

30.9

22.6

22.6

TRAINING & DEVELOPMENT

DEPT. NAME. GENERAL STORE R&D BALL BEARING LDB SRB RAILWAY BEARING TRB

SD 15 17 239 15 2 190 286

764

D 5 2 135 21 2 80 94
339

N 16 23 481 59 29 201 282

1091

A 35 3 289 20 1 136 105

589

SA 30 1 295 20 0 101 114

561

Q.T 101 46 1439 135 34 708 881

3344

SD%
22.8

D%
10.1

N%
32.6

A%
17.6

SA%
16.8

Q.T

24

MOTIVATION
DEPT. NAME. GENERAL STORE R&D BALL BEARING LDB SRB RAILWAY BEARING TRB

SD 21 14 190 13 1 153 283

675

D 5 4 150 13 2 69 55
298

N 27 25 522 47 33 241 246

1141

A 24 9 428 31 0 132 182

806

SA 36 2 372 52 4 217 243

926

Q.T 119 48 1662 156 40 812 1009

3846

SD%
17.6

D%
7.7

N%
29.7

A%
21.0

SA%
24.1

Q.T

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CUSTOMER SATISFACTION
DEPT. NAME. GENERAL STORE R&D BALL BEARING LDB SRB RAILWAY BEARING TRB

SD 2 0 134 4 0 75 23
238

D 18 0 98 9 0 73 29
227

N 7 33 343 37 24 209 418

1071

A 41 14 398 38 3 181 224

899

SA 51 9 679 71 13 258 318

1399

Q.T 119 56 1652 160 40 796 1012

3835

SD%
6.2

D%
5.9

N%
27.9

A%
23.4

SA%
36.5

Q.T

26

CAREER DEVELOPMENT
DEPT. NAME. GENERAL STORE R&D BALL BEARING LDB SRB RAILWAY BEARING TRB

SD 30 33 351 46 5 304 458

1227

D 15 0 174 38 6 72 119
424

N 31 19 670 40 28 152 228

1168

A 25 0 352 12 0 149 83
621

SA 16 0 277 21 0 136 120

570

Q.T 117 52 1824 157 30 813 1008

4001

SD%
30.7

D%
10.6

N%
29

A%
15.5

SA%
14.2

Q.T

27

WORK SAFETY
DEPT. NAME. GENERAL STORE R&D BALL BEARING LDB SRB RAILWAY BEARING TRB

SD 19 12 351 30 1 285 375

1073

D 7 8 174 41 5 114 132

481

N 48 32 670 71 36 234 322

1413

A 41 1 353 15 1 147 128

686

SA 17 3 277 20 0 124 186

627

Q.T 132 56 1824 177 43 923 1143

4298

SD%
25.0

D%
11.2

N%
32.9

A%
16.0

SA%
14.6

Q.T

28

FUTURE PLANNING
DEPT. NAME. GENERAL STORE R&D BALL BEARING LDB SRB RAILWAY BEARING TRB

SD 3 8 351 0 2 285 375

1024

D 0 0 174 2 1 114 132

423

N 4 4 670 21 10 234 322

1265

A 22 4 352 17 2 147 128

672

SA 12 3 277 20 0 143 186

641

Q.T 41 19 1824 60 15 923 1143

4025

SD%
25.4

D%
10.5

N%
31.4

A%
16.7

SA%
15.9

Q.T

29

GENERAL STORE

30

RESEARCH & DEVELOPMENT

BALL BEARING

31

LARGE DIA BEARING

32

SPHERICAL ROLLER BEARING

RAILWAY BEARING

TAPER ROLLER BEARING

33

CONCLUSION
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A recent study on employee satisfaction using a questionnaire. 2000 data, analyses the distribution of job satisfaction across the EU15. According to this analysis, relatively little variance could be observed in this organisation. Most workers state that they are nuteral with the working conditions in their main job. The highest satisfaction level of employee could be observed in costumer satisfaction . The lowest satisfaction is reported by workers in compensation & welfare.

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