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Over the last year, the Indian economy has been slipping. Companies have been
shaken up and are now faced to wake up from the days of deep slumber. Now, as
the top echelons of the India Inc some to grip with the continuing recession in the
Indian economy and as the prolonged fall in demand across industries becomes
more evident, the mood is subdued. A total change of mildest has taken place, as the
chieftains of corporate India wake up and come to term with reality.
The insurance sector has also not been alienated from the effect from the effects of
widespread recession and is vying hard to cope with the ever changing environment
as well as competitive aura. As a result, the trio convergence, competitive and
consolidation, has been continuously dominating the insurance segment, and the
same phenomenon is envisaged in the forthcoming years as well.
This would however mean wider and better services for the customers. The term
insurance has now acquired a much larger meaning than just dealing with
protection. For the past few years, companies have been actively focusing on
increasing their distribution channels by introducing facilities, like Banca assurance
partners and corporate agency.
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INDUSTRY PROFILE
Insurance sector in India is one of the booming sectors of the economy and is
growing at the rate of 15-20 per cent annum. Together with banking services, it
contributes to about 7 per cent to the country's GDP. Insurance is a federal subject in
India and Insurance industry in India is governed by Insurance Act, 1938, the Life
Insurance Corporation Act, 1956 and General Insurance Business (Nationalisation)
Act, 1972, Insurance Regulatory and Development Authority (IRDA) Act, 1999 and
other related Acts.
The origin of life insurance in India can be traced back to 1818 with the
establishment of the Oriental Life Insurance Company in Calcutta. It was conceived
as a means to provide for English Widows. In those days a higher premium was
charged for Indian lives than the non-Indian lives as Indian lives were considered
riskier for coverage. The Bombay Mutual Life Insurance Society that started its
business in 1870 was the first company to charge same premium for both Indian and
non-Indian lives. In 1912, insurance regulation formally began with the passing of
Life Insurance Companies Act and the Provident Fund Act.
Insurance sector in India grew at a faster pace after independence. In 1956,
Government of India brought together 245 Indian and foreign insurers and provident
societies under one nationalised monopoly corporation and formed Life Insurance
Corporation (LIC) by an Act of Parliament, viz. LIC Act, 1956, with a capital
contribution of Rs.5 caror
The (non-life) insurance business/general insurance remained with the private sector
till 1972. There were 107 private companies involved in the business of general
operations and their operations were restricted to organised trade and industry in
large cities. The General Insurance Business (Nationalisation) Act, 1972 nationalised
the general insurance business in India with effect from January 1, 1973. The 107
private insurance companies were amalgamated and grouped into four companies:
National Insurance Company, New India Assurance Company, Oriental Insurance
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Company and United India Insurance Company. These were subsidiaries of the
General Insurance Company (GIC
Types of Insurance:
Threat of New Entrants: The insurance industry has been budding with new
entrants every other day. Therefore the companies should carve out niche
areas such that the threat of new entrants might not be a hindrance. There is
also a chance that the big players might squeeze the small new entrants.
Power of Suppliers: Those who are supplying the capital are not that big a
threat. For instance, if someone as a very talented insurance underwriter is
presently working for a small insurance company, there exists a chance that
any big player willing to enter the insurance industry might entice that person
off.
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Availability of Substitutes: There exist a lot of substitutes in the insurance
industry. Majorly, the large insurance companies provide similar kinds of
services be it auto, home, commercial, health or life insurance.
COMPANY PROFILE
HDFC standard life insurance company Ltd. Is one of the Indias leading private life
insurance companies, which offers a range of individual and group insurance
solution? It is a joint venture between housing development Finance Corporation
limited, Indias leading housing finance institution and one of the United Kingdom.
Incorporated on 14th august 2000, it was the first life company to be granted a
certificate of registration by the IRDA on the 23rd October 2000. Both the promoters
are well known for their ethical dealings and financial strength and are thus
committed to being a long term player in the life insurance industry all important
factors to consider when choosing your insurer. HDFC group, this is the maximum
investment allowed under current regulation.
HDFC and standard life have a long close relation built upon shared values and
trust. The ambition of standard life is to mirror the success of the parent companies
and be the yardstick by which all other insurance companies in India are measured.
The most successful and the admired life insurance company, which mean that we
are the most trusted company, the easiest to deal with, offer values for money, and
set the standard in the industry
Integrity
Innovation
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Customer centric
People care one for all and all for one
Team work
Joy and simplicity
To be the top new life insurance company in the market. This does not just mean
being the largest or the most productive company in the market, rather it is a
combination of several things like-
HDFC
HDFC is Indias premier housing finance company and the enjoys an impeccable
track record in India as well as in international market. Since its inception in 1977,
the corporation has in maintained a consistent and healthy growth in its operations to
remain the clear market leader in mortgage and banking services in India. Its
outstanding loan portfolio covers over a million dwelling units. HDFC has developed
significant expertise in retail mortgage loans to different market segments and also
has a large corporate client base for its housing related credit facilities. With its
experience in the financial markets, a strong market reputation, large shareholder
base and unique consumer franchise, HDFC was ideally positioned to promote a life
insurance company in the Indian environment.
HDFC is Indias leading housing finance institution and has helped build more
than 2300000 houses since its incorporation 1977.
HDFC is rated AAA by CRISCIL and for the 10th consecutive year.
Stable and experienced management
High services standard
Award the Economic Times corporate citizen of the year award for its long
standing commitment to community development.
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STANDARD LIFE
Standard Life UK, founded in 1825, has been at the forefront of the UK insurance
industry for 180 years by combining sound financial judgement with integrity and
reliability. The company was rated very strong by standard & poors (AA) and
excellent by Moodys (Aa2)
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EMPLOYEE SATISFACTION:
Employeesatisfaction is a measure of how happy workers are with their job and
working environment. Keeping morale high among workers can be of tremendous
benefit to any company, as happy workers will be more likely to produce more, take
fewer days off, and stay loyal to the company. There are many factors in improving
or maintaining high employeesatisfaction, which wise employers would do well to
implement.
Many experts believe that one of the best ways to maintain employeesatisfaction is
to make workers feel like part of a family or team. Holding office events, such as
parties or group outings, can help build close bonds among workers. Many
companies also participate in team-building retreats that are designed to strengthen
the working relationship of the employees in a non-work related setting. Camping
trips, paintball wars and guided backpacking trips are versions of this type of team-
building strategy, with which many employers have found success.
Of course, few workers will not experience a boost in morale after receiving more
money. Raises and bonuses can seriously affect employeesatisfaction, and should
be given when possible. Yet money cannot solve all morale issues, and if a company
with widespread problems for workers cannot improve their overall environment, a
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bonus may be quickly forgotten as the daily stress of an unpleasant job continues to
mount.
If possible, provide amenities to your workers to improve morale. Make certain they
have a comfortable, clean break room with basic necessities such as running water.
Keep facilities such as bathrooms clean and stocked with supplies. While an air of
professionalism is necessary for most businesses, allowing workers to keep family
photos or small trinkets on their desk can make them feel more comfortable and
nested at their workstation. Basic considerations like these can improve
employeesatisfaction, as workers will feel well cared for by their employers.
The backbone of employeesatisfaction is respect for workers and the job they
perform. In every interaction with management, employees should be treated with
courtesy and interest. An easy avenue for employees to discuss problems with upper
management should be maintained and discuss problem ms with upper
management should be maintained and carefully monitored. Even if management
cannot meet all the demands of employees, showing workers that they are being
heard and putting honest dedication into compromising will often help to improve
morale.
Satisfaction = f(what employee expects, what she gets, time, back ground of
the employee- social, economic, cultural)
Satisfaction being a continuous process starts from the day 1 and gets reinforced
with time depending on the importance of the various factors considered to be
important for the individual employee. Loyalty towards the organization starts to
develop when the employee continues to get the positive reinforcements on various
important aspects for the duration of the employment.
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Core Values as a Foundation of Employee Satisfaction:
These are the values that have enabled employees to build the leading company in
industry; these are the values that will fuel employees worldwide growth in the
coming years; and these are the values that will drive employees career:
Ethics Acting in accordance with the accepted principles of right and wrong
that govern the conduct of our profession.
Unselfishness Putting others before yourself, giving your time and effort for
prospects, clients and co-workers. Showing cooperative effort as the member
of a group to achieve a common goal.
The company's ability to fulfil the physical, emotional, and psychological needs of its
employees. Satisfying the employee's all needs, so that he can give 100% to the
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company. Satisfaction refers to the level of fulfilment on one's needs, desires, and
wants. It can be experienced in various levels or degrees.
Vital ingredients for any employees satisfaction are physical, security, social and
egoistic needs which satisfy individuals psycho social.
1. Physical and Security need: This relates to satisfaction of bodily function like
hunger, thirst, shelter as well as to be secure in the employment.
2. Social Need: Since human beings are dependent on each other. There are
some needs which can be satisfied only when individual is recognized by
other people.
To a considerable extent however physical needs are satisfied off the job. Social
needs are satisfied through personal contacts around the job where egoistic needs
are chiefly satisfied through the job.
EQUITY THEORY:
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The idea is to have the rewards (outcomes) be directly related with the quality and
quantity of the employees contributions (inputs). If both employees were perhaps
rewarded the same, it would help the workforce realize that the organization is fair,
observant, and appreciative. This can be illustrated by the following equation:
Outcomes: Outputs are defined as the positive and negative consequences that an
individual perceives a participant has incurred as a consequence of his/her
relationship with another. When the ratio of inputs to outcomes is close, than the
employee should have much satisfaction with their job. Outputs can be both tangible
and intangible (Walster, Traupmann & Walster, 1978). Typical outcomes include any
of the following: Job security, Esteem, Salary, Employee benefit, Expenses,
Recognition, Reputation, Responsibility, Sense of achievement, Praise, Thanks, and
Stimuli.
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These predicted organizational rewards are valued by the employee in
question.
"This theory emphasizes the needs for organizations to relate rewards directly to
performance and to ensure that the rewards provided are those rewards deserved
and wanted by the recipients."
Vroom's theory assumes that behaviour results from conscious choices among
alternatives whose purpose it is to maximize pleasure and to minimize pain. Together
with Edward Lawler and Lyman Porter, Vroom suggested that the relationship
between people's behaviour at work and their goals was not as simple as was first
imagined by other scientists. Vroom realized that an employee's performance is
based on individual factors such as personality, skills, knowledge, experience and
abilities.
Victor H. Vroom introduces three variables within the expectancy theory which are
valence (V), expectancy (E) and instrumentality (I). The three elements are important
behind choosing one element over another because they are clearly defined: effort-
performance expectancy (E>P expectancy), performance-outcome expectancy (P>O
expectancy).
E>P expectancy: Our assessment of the probability our efforts will lead to the
required performance level.
P>O expectancy: Our assessment of the probability our successful performance will
lead to certain outcomes.
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2. Instrumentality Means of the first level outcome in obtaining the desired
second level outcome; the degree to which a first level outcome will lead to
the second level outcome.
Expectancy: Our assessment of the probability our efforts will lead to the required
performance level.
Maslows hierarchy of needs is most often displayed as a pyramid. The lowest levels
of the pyramid are made up of the most basic needs, while the more complex needs
are located at the top of the pyramid. Needs at the bottom of the pyramid are basic
physical requirements including the need for food, water, sleep and warmth. Once
these lower-level needs have been met, people can move on to the next level of
needs, which are for safety and security.
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which is a process of growing and developing as a person to achieve individual
potential.
Maslow believed that these needs are similar to instincts and play a major role in
motivating behavior. Physiological, security, social, and esteem needs are deficiency
needs (also known as D-needs), meaning that these needs arise due to deprivation.
Satisfying these lower-level needs is important in order to avoid unpleasant feelings
or consequences.
Maslow termed the highest-level of the pyramid as growth need (also known as
being needs or B-needs). Growth needs do not stem from a lack of something, but
rather from a desire to grow as a person
1. Physiological Needs: These include the most basic needs that are vital to
survival, such as the need for water, air, food and sleep. Maslow believed that
these needs are the most basic and instinctive needs in the hierarchy
because all needs become secondary until these physiological needs are met.
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2. Security Needs: These include needs for safety and security. Security needs
are important for survival, but they are not as demanding as the physiological
needs. Examples of security needs include a desire for steady employment,
health insurance, safe neighbourhoods and shelter from the environment.
Social Needs: These include needs for belonging, love and affection. Maslow
considered these needs to be less basic than physiological and security needs.
Relationships such as friendships, romantic attachments and families help fulfil this
need for companionship and acceptance, as does involvement in social, community
or religious groups.
1. Esteem Needs: After the first three needs have been satisfied, esteem needs
becomes increasingly important. These include the need for things that reflect
on self-esteem, personal worth, social recognition and accomplishment.
3. TWO-FACTOR THEORY:
4. The two-factor theory (also known as Herzberg's motivation-hygiene theory)
was developed by Frederick Herzberg, a psychologist who found that job
satisfaction and job dissatisfaction acted independently of each other. The
theory states that there are certain factors in the workplace that cause job
satisfaction, while a separate set of factors cause dissatisfaction.
5. The two-factor, or motivation-hygiene theory, developed from data collected
by Herzberg from interviews with a large number of engineers and
accountants in the Pittsburgh area. From analyzing these interviews, he found
that job characteristics related to what an individual does that is, to the
nature of the work he performs apparently have the capacity to gratify such
needs as achievement, competency, status, personal worth, and self-
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realization, thus making him happy and satisfied. However, the absence of
such gratifying job characteristics does not appear to lead to unhappiness a
dissatisfaction results from unfavourable assessments of such job-related
factors as company policies, supervision, technical problems, salary,
interpersonal relations on the job, and working conditions. Thus, if
management wishes to increase satisfaction on the job, it should be
concerned with the nature of the work itself the opportunities it presents for
gaining status, assuming responsibility, and for achieving self-realization. If,
on the other hand, management wishes to reduce dissatisfaction, then it must
focus on the job environment policies, procedures, supervision, and
working conditions. If management is equally concerned with both then
managers must give attention to both sets of job factors. Thus, satisfaction
and dissatisfaction are not on a continuum with one increasing as the other
diminishes, but are independent phenomena. This theory suggests that to
improve job attitudes and productivity, administrators must recognize and
attend to both sets of characteristics and not assume that an increase in
satisfaction leads to decrease in un-pleasurable dissatisfaction. Instead,
dissatisfaction results from unfavourable assessments of such job-related
factors as company policies, supervision, technical problems, salary,
interpersonal relations on the job, and working conditions. Thus, if
management wishes to increase satisfaction on the job, it should be
concerned with the nature of the work itself the opportunities it presents for
gaining status, assuming responsibility, and for achieving self-realization. If,
on the other hand, management wishes to reduce dissatisfaction, then it must
focus on the job environment policies, procedures, supervision, and
working conditions. If management is equally concerned with both then
managers must give attention to both sets of job factors. Thus, satisfaction
and dissatisfaction are not on a continuum with one increasing as the other
diminishes, but are independent phenomena. This theory suggests that to
improve job attitudes and productivity, administrators must recognize and
attend to both sets of characteristics and not assume that an increase in
satisfaction leads to decrease in un-pleasurable dissatisfaction.
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Two-factor theory distinguishes between:
Hygiene factors (e.g. status, job security, salary and fringe benefits) which
do not give positive satisfaction, although dissatisfaction results from their
absence. These are extrinsic to the work itself, and include aspects such as
company policies, supervisory practices, or wages/salary.
The following table presents the top six factors causing dissatisfaction and the top
six factors causing satisfaction, listed in the order of higher to lower importance.
Recognition Supervision
Advancement Salary
Security
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Herzberg reasoned that because the factors causing satisfaction are different from
those causing dissatisfaction, the two feelings cannot simply be treated as opposites
of one another. The opposite of satisfaction is not dissatisfaction, but rather, no
satisfaction. Similarly, the opposite of dissatisfaction is no dissatisfaction.
A) Organizational Variables:
2) Compensation and Benefits: This is the most important variable for employee
satisfaction. Compensation can be described as the amount of reward that a worker expects
from the job. Employees should be provided with competitive salary packages and
they should be satisfied with it when comparing their pay packets with those of the
outsiders who are working in the same industry. A feeling of employee satisfaction is
felt by attaining fair and equitable rewards.
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4) Work Environment and Conditions: Employees are highly motivated with good
working conditions as they provide a feeling of safety, comfort and motivation. On
contrary, poor working conditions brings out a fear of bad health in
employees.Employees spend 6 to 8 hours at their workplace every day which makes
a workplace their second home. It is up to the employers to see and make sure that
the office is fully facilitated and is in good working order. It must be well lit and well
ventilated with the right amount of lights, fans, air-conditioning. Cleanliness is of
utmost importance as there are a huge number of workers working at a job place.
The offices, cubicles, rest area, washrooms, kitchen & serving area must be neat
and clean. The more comfortable the working environment is more productive will be
the employees.
7) Organizational Level: The jobs that are at higher levels are viewed as
prestigious, esteemed and opportunity for self-control. The employees that are
working at higher level jobs express greater employee satisfaction than the ones
working at lower level jobs.
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9) Work Group: There is a natural desire of human beings to interact with others
and so existence of groups in organizations is a common observable fact. This
characteristic results in formation of work groups at the work place. Isolated workers
dislike their jobs. The work groups make use of a remarkable influence on the
satisfaction of employees. The satisfaction of an individual is dependent on largely
on the relationship with the group members, group dynamics, group cohesiveness
and his own need for affiliation.
10)Leadership Styles: The satisfaction level on the job can be determined bythe
leadership styles. Employee satisfaction is greatly enhanced by democratic style of
leadership. It is because democratic leaders promote friendship, respect and warmth
relationships among the employees. On contrary, employees working under
authoritarian and dictatorial leaders express low level of employee satisfaction.
B) Personal Variables:
The personal determinants also help a lot in maintaining the motivation and personal
factors of the employees to work effectively and efficiently. Employee satisfaction can
be related to psychological factors and so numbers of personal factors determine the
employee satisfaction of the employees
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1) Personality: The personality of an individual can be determined by observing his
individual psychological conditions. The factors that determine the satisfaction of
individuals and his psychological conditions is perception, attitudes and learning.
4) Gender Differences: The gender and race of the employees plays important
determinants of Employee satisfaction. Women, the fairer sex, are more likely to be
satisfied than their male counterpart even if they are employed in small jobs. The
employee satisfaction can also be determined by other factors like learning, skill
autonomy, job characteristics, unbiased attitude of management, social status etc. It
is important for managers to consider all these factors in assessing the satisfaction
of the employees and increasing their level of employee satisfaction.
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Responsibility without accountability. If one has responsibility but no power to
take decisions or accountability one gets de-motivated as one cannot show
results or move things forward.
The employees sent out some signals to express their discontent and the
organization should not take it lightly.
2) Lack of interest: When an employee who stays at work until his job is done, now
begins to leave at sharp 5 pm no matter his job is done or not.
3) Lack of quality and quantity in work: When an employee is dissatisfied in his
job then automatically his mental state is reflected in his quality of his work.
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6) Misbehaviour: An employee may express anger, frequent argument with
association and team member, which come out due to frustration.
Effects of Dissatisfaction:
Recognizing the dissatisfaction is only half the battle. The company should consider
the reason for the burnout and should try to solve those problems because it will
affect other employees also. Otherwise it will affect the company in many ways like
* Low productivity
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2. Importance of employee satisfaction for employee
Employee will believe that the organization will be satisfying in the long run.
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THE BEST HR PRACTICES THAT SUCCESSFUL COMPANIES
PRACTICE
Why are employees in some companies happy to stick with the company while
others look for a change? The reason is that some companies know how to take
good care of their employees and provide a working environment that helps them
retain their identity, while proving themselves and growing along with the company.
How Managers Attract, Hire, Focus, And Keep Their Most Talented Employees?
Without satisfying an employee's basic needs first, a manager can never expect the
employee to give stellar performance. The basic needs are knowing what is
expected of the employee at work, giving him the equipment and support to do his
work right, and answering him basic questions of self-worth and self-esteem by
giving praise for good work and caring about his development as a person.
The great manager mantra is don't try to put in what was left out; instead draw out
what was left in. You must hire for talent, and hone that talent into outstanding
performance.
2. Set the right outcomes, not steps. Standardize the end but not the means. As
long as the means are within the company's legal boundaries and industry
standards, let the employee use his own style to deliver the result or outcome
you want.
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6. A manager must excel in the art of the interview. See if the candidate's
recurring patterns of behaviour match the role he is to fulfil. Ask open-ended
questions and let him talk. Listen for specifics.
8. Spend time with your best people. Give constant feedback. If you can't spend
an hour every quarter talking to an employee, then you shouldn't be a
manager.
10. Do not promote someone until he reaches his level of incompetence; simply
offer bigger rewards within the same range of his work.
11. Some homework to do: Study the best managers in the company and revise
training to incorporate what they know. Send your talented people to learn
new skills or knowledge. Change recruiting practices to hire for talent, revise
employee job descriptions and qualifications.
Here are some of the best HR practices that help in the creation of a highly satisfied
and motivated work for.
Work Environment
A safe and happy workplace makes the employees feel good about being there.
Each one is given importance and provided the security that gives them the
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motivation and incentive to stay. This is usually achieved through internal surveys to
find out whether they are satisfied and if not what they think needs to be changed.
Open Management
Employees dont like the feeling of being kept in the dark about what is happening in
the company. They feel motivated and develop enthusiasm only when the
management opens up to them and discusses the company policies, sales, clients,
contracts, goals and objectives. This encourages participative management. Asking
them for ideas on how to improve will get their creative juices flowing. Being open
about everything related to the company will help in building trust and motivating the
employees. This open management policy can be practiced using several
tools.Performance Incentives
Every good performance is appreciated in the form of a pat on the back, bonuses
or giving some other compensation for a job well done. Organizations that struggle to
keep up with the attrition rate are mostly those that think employees are just doing
their job. Even if it is the employees job, completion in an appreciable manner calls
for an incentive, and this goes a long way in boosting the staff morale. These
incentives can be implemented at the individual as well as the team level and it has
been seen that this works wonders in getting the best out of the employees. But it is
important to keep in mind that these bonuses should not be given without a reason,
unless it is a commitment for annual bonuses or some such thing. Doing so will only
reduce the perceived value of the bonuses
Performance Feedback
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This is one the methods that is being followed by many organizations. Feedback is
not only taken from the boss, but also from other seniors and subordinates.
Previously, appreciation was only sought from the immediate boss or the
management, but now organizations understand the importance of collecting
performance feedback from several quarters. The opinion of everyone matters,
especially for someone who is in a leadership role at any level. Each person in the
team is responsible for giving constructive feedback. This kind of system helps in
identifying people who can perform well as leaders at higher levels in the
organization. Even the senior level managers can use this system to their
advantage, as a tool to improve themselves.
Employee Evaluation
Every company has an employee evaluation system in place but a good system links
individual performance to the goals and priorities of the organization. This works well
when achievements are tracked over a year. For a fair review of each employee, the
evaluation, apart from being done by the boss, should be done by another person at
a higher level, for whom the employees contribution is important. Ratings can also
be obtained by other employees. This ensures a fair and accurate rating of each and
every employee.
Sharing of Knowledge
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Every company has some employees who outperform others. Such performances
should be highlighted and displayed where other employees can look at them; such
as on the display boards and intranet etc. This will encourage others to give their
best. A proper system should be set up to make a list of high performances at
specific times in a year.
Discussions
Successful organizations nurture ideas and they understand that employees who are
actually working and know the business can provide the best ideas. The
management should have discussions with employees to get these ideas out of
them. There can also be suggestion boxes to capture these ideas. Through this
system, managers can find talented employees and develop them.
Rewards
While recognition of talent is highly important, this recognition has to be made public
and what better way than holding ceremonies and announcing to the whole world
(the employees), the achievemen fellow employee. There can be nothing better for
an employee than the heady feeling from a resounding applause.
Who doesnt like a surprise? Surprise deserving employees when they are least
expecting it. It could be a gift certificate or a small reward of some sort. This surprise
doesnt have to be limited to the best performers, but it can be randomly given to
others as a motivating factor too. Anyone can be given this surprise reward.
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i. To Measure the satisfaction levels of employees on various factors and give
suggestions for improving the same.
ii. To study the relationship between the personal factors of the employee
(Gender, Designation, Qualification, Age, and Years of Service in a company)
with satisfaction level.
iii. To derive and analyze the current satisfaction level of the employees in the
company
The study of "employee satisfaction" helps the company to maintain standards &
increase productivity by motivating the employees. This study tells us how much the
employees are capable & their interest at work place? What are the things still to be
satisfy to the employees. Although "human resources" are the most important
resources for any organization, so to study on employees satisfaction helps to know
the working conditions & what are the things that affect them not to work properly?
Always majority of done by the machines/equipments but without any manual
moments nothing can be done. So to study on employee satisfaction is necessary
However, many companies do this at the cost of employee experience. What does
this mean? Is customer satisfaction not the priority?
It is! But it is important not to lose sight of people who deliver the end product or
service to the customers the employees. These are the people that need a proper
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support system. Employee satisfaction is paramount as this is what will determine
the success or failure of a company. When employees are satisfied and happy about
working in an organization, the customer is the first person to notice that.
It becomes important to be aware and understand the signals that are given out by
the employees. The management will do well to catch them before it is too late and
the employee makes the decision to quit. This understanding gives the employers an
edge and gives them the time to take corrective measures if necessary, in order to
prevent talent loss. It could be that the employee is not happy with the environment
or is suffering from a relationship issue with a colleague or a superior. These issues
need to be handled before they get out of hand.
How do employers understand their employees? How do they know what employees
want? How do they map their satisfaction levels? There are several ways of mapping
employee satisfaction.
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Exit Interviews: This comes into action after an employee submits his resignation
papers. The problem with exit interviews is that most employees, once they decide to
leave, are not forthright. In an attempt to keep good relations with the employer, they
usually do not tell-all as they ought to. Many of them in fact give personal reasons for
leaving and make the employer feel that all is well on the work front.
Employers who fail at HR and see high attrition rate are those that consider
monetary compensation as highly important. In spite of the fact that employees work
for money, emotional rewards go a long way at keeping the employer-employee
relation strong and have a larger impact on employee satisfaction. Tracing and
improving this satisfaction level has to be top priority for the HR department of an
organization
Employee satisfaction mapping can be the key to a better motivated and loyal
workforce that leads to better organizational output in the form of better products and
services and results in overall improvement of an organization.
If a person is not satisfied by the job he is doing, he may switch over to some other
more suitable job. In todays environment it becomes very important for
organizations to retain their employees. The reason may be personal or professional.
These reasons should be understood by the employer and should be taken care of.
The organizations are becoming aware of these reasons and adopting many
strategies for employee retention.
The basic needs other than routine tasks are to be taken care of on priority before
it becomes late by HR department.
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RESEARCH METHODOLOGY:
The methodology followed for conducting the study includes the specification of
research design, sample design, questionnaire design, data collection and statistical
tools used for analyzing the collected data.
a RESEARCH DESIGN: The research design used for this study is of the descriptive
type. Descriptive research studies are those studies which are concerned with
describing the characteristics of a particular individual or a group.
b POPULATION: The total element of the universe from which sample is selected
for the purpose of study is known as population. The population of my research is
the employees of company.
c SAMPLE SIZE: All the items consideration in any field of inquiry constitutes a
universe of population. In this research only a few items can be selected form the
population for our study purpose. The items selected constitute what is technically
called a sample. Here out sample size is 50 employees from the total population to
conduct the study.
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DATA & ANALYSIS:
The Respondents were asked to state their level of satisfaction relating to fifty
factors. Based on their responses the satisfaction score obtained by each
respondent was found out. Points or scores were allocated based on the
response. For each of the factor three levels of satisfaction were assigned
namely high, medium and low. The scores were allocated as Strongly agree =
5
Agree= 4
Neutral = 3
Disagree =2
Strongly disagree = 1
The total scores secured by each respondent were thus arrived at. All the
respondents were classified based on their level of satisfaction. Those who have
obtained up to 13 points were classified under low satisfaction category, respondents
with 14 20 points were classified under medium satisfaction category and those
with more than 21 points were classified under high satisfaction category.
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NUMBER OF RESPONDENTS AND LEVEL OF SATISFACTION
LEVEL OF SATISFACTION NO. OF RESPONDENTS
High satisfaction 22
Medium satisfaction 18
Low satisfaction 10
TOTAL 50
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SIMPLE PERCENTAGE TABLE 1:
GENDER
Gender Frequency Percentage
MALE 41 82
FEMALE 9 18
Total 50 100
INTERPRETATION:
Majority of the respondent are male (82%) and 18% respondents are female
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DESIGNATION: Designation of the respondents may affect the perception of
employee satisfaction. Top and middle level employees may expect much better
work life and compensation then others. According to designation the respondents
are classified into three categories as under.
DESIGNATION
Designation Frequency Percentage
TOP MANAGEMENT 04 08
MIDDLE 21 42
MANAGEMENT
LOWER 25 50
MANAGEMENT
Total 50 100
INTERPRETATION:
The above table indicates that Majority of the respondents are 50% in lower
management (i.e. Executive and Sr. Exe.), 42% is in middle management (i.e. Asst.
Manager and Manager), and 8% is in top management group.
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QUALIFICATION: Qualification of the respondents may affect the perception of
employee satisfaction. Highly educated may expect much better work life then
others. According to educational qualification the respondents are classified into two
categories as under.
QUALIFICATION
Qualification Frequency Percentage
POST GRADUATE 18 36
GRADUATE 32 64
Total 50 100
INTERPRETATION:
The above table indicates that Majority of the respondents are Graduates i.e. 64%
and 36% respondents are post graduates.
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AGE: Age is an important factor that has an influence of employee satisfaction.
Hence according to age levels the respondents are classified into three categories.
EMPLOYEE AGE
Employee Age Frequency Percentage
20 30 Yr 19 38
31 40 23 46
Above 40 Yrs 08 16
Total 50 100
INTERPRETATION:
The above table indicates that Majority of the respondents i.e. 46% are in 31-40
years age group, 38% in 20-30 years age group, and 16% are in above 40 years age
group.
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YEARS OF EXPERIENCE: The experience of the employees in their job is another
factor affecting the perception on employee satisfaction. Highly experienced may
expect better working conditions and having less experienced satisfy with the
existing one. The respondents are classified into three categories according to their
level of experience as under:
5 10 Years 18 36
Above 10 Years 21 42
Total 50 100
INTERPRETATION:
The above table indicates that Majority of the respondents i.e. 42% are in above 10
years of experience, 36% are in 5-10 years of experience, and 22% are in below 5
years of experience.
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The score secured by the respondents who falls between the score as up to 13
indicates less satisfaction of the respondents, from 14 20 are got average
satisfaction and above 21 respondents got highly satisfaction leve l
INFERENCE:
From the above table the percentage of highly satisfied are in male group followed
by the female group. The percentage of low satisfied is highest in female group.
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HIGHLY MEDIUM LOW TOTAL
SATISFIED SATISFIED SATISFIED
TOP 2 (50%) 1 (25%) 1 (25%) 04
MANAGEMENT
MIDDLE 10 (48%) 9 (43%) 2 (9%) 21
MANAGEMENT
LOWER 10 (40%) 10 (40%) 5 (20%) 25
MANAGEMENT
TOTAL 22 20 8 50
INFERENCE:
From the above table the percentage of highly satisfied respondents is more in top
management group i.e. 50%. In medium satisfaction the highest percentage is in
middle management group i.e. 43%. In low satisfaction again top management group
respondents are more.
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POST 12 (66%) 5 (28%) 1 (6%) 18
GRADUATE
TOTAL 29 17 4 50
INFERENCE:
From the above table the percentage of highly satisfied is more among the
respondents of post graduate group. The percentage of medium satisfied is highest
among the respondents of graduate level group. And the percentage of low
satisfaction is highest among the graduate level group i.e. 9%.
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Above 40 Yr 4 (50%) 3 (38%) 1 (12%) 08
TOTAL 23 21 6 50
INFERENCE:
The above table reveals that the percentage of highly satisfied is in the above 40
Years age group (50%) and 43 % of highly satisfied in the 31-40 Years age group.
And in medium satisfaction 52% is the highest percentage in 31-40 Years age group
and followed by Above 40 Years age group with 38% of satisfaction. The highest
percentage of 21% in low satisfaction is in 20-30 Years age group.
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TOTAL 24 20 6 50
INFERENCE:
The above table reveals that the respondents having 5-10 Years of experience have
derived highest satisfaction level with 61%. The percentage of medium satisfaction is
high in the category of Above 10 Years group i.e. 48%. And in low satisfaction level
the percentage of Below 5 Years of experience is high i.e. 28%.
The tables below show the combined mean of the perceived value of employee
satisfaction in relation with factors described. Higher the score, better the
satisfaction of the particular factor.
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A3 WORK PLACE AND ENVIRONMENT 4.21 Excellent
INTERPRETATION:
The average Employee Satisfaction for the total respondents is 3.93 which indicate
that the employees are relatively satisfied with the various services being catered by
the company. It can be attributed to the fact that the company caters to the various
needs of the employees. It also shows that employees are not satisfied in
Compensation Area (Mean-3.62) compare to all areas. Similarly other areas must be
taken care by company are Training and Development (Mean3.80), Performance
Appraisal and Opportunity for Career Prospectus (Mean-3.84), Manager/ Supervisor
Co-operation (Mean-3.85). Total respondent shows that employees are more
satisfied in Work Placement and Environment (Mean-4.21) followed by
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Communication Area (Mean4.07), Job Satisfaction (Mean4.05), Company Policy
(Mean4.03) and Company Culture (Mean3.96).
CONCLUSION:
Research shows that satisfied employees are more efficient and productive so they
positively influence organizational performance and work towards fulfilment of
companys objectives and goals. Good Company Culture, Company Policies,
Convenient Work location, Communication , job satisfaction, opportunities for
promotion and career prospects, fair salary are few area which are critically
important from the view point of most of the employees.
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In conclusion, several themes emerged from the overall result of the survey. The
cause of concern here is that employees have indicated that they need more for their
compensation and from their superiors. Based on the results as a whole, without
significant and meaningful improvement in Compensation, Manager/Supervisor Co-
operation, Training and Development, Performance Appraisal and Opportunity for
career and promotion, the companys current climate could eventually erode the
employees outlook and eventually their commitment to doing their job.
The good news is that employees seem ready and willing to offer their insight and
constructive ideas on how to improve their area within company. They are highly
satisfied with Company Culture, Company Polices, Work Place and Environment
where they are work, Interpersonal Communication in a company and more
important is satisfied by job they are doing.
Employees have an average mean of 3.93 which indicates that the employees are
relatively satisfied with the various services being catered by the company. Major
concern areas are Compensation, Training and Development, Performance
Appraisal, Manager/Supervisor Co-operation and Opportunity for career and
promotion.
The study on employees satisfaction at Panasonic Energy India Co. Ltd. is cased
out with full co-operation of the employees and management. As far as possible with
in the given limits the study is completed with the satisfaction of many peoples. The
data collected are analyzed scientifically. It is assured that the company may get
high boosted moral in the organization provided some of the recommendations made
in the report are carried out.
Further from this survey I hope the organization will be benefited and with the
help of the recommendations given the organization can improve its functioning and
the overall employee satisfaction level in the organization and its performance will
increase.
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RECOMMENDATIONS
- Benchmark rates of pay with other companies who compete in the same labor
market. Make adjustments, if you are behind the market i.e. analyze industry trend
and according to trend change in pay structure.
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- Increase communication/education why the need to have the difference if there is
no plan of standardization.
- Ensure that your employees recognize the value of their total package (bonus
opportunities, health cover, sick pay etc) not just basic pay.
- Train managers to more effectively train, coach and develop their teams.
- Use Training Need Analysis and ask each of the head of the department to act
according to the guidelines given by HRD and send only employees who need desire
skills to improve competency for job.
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- Managers should utilize one-to-one employee meeting to develop and coach their
staff.
- Implement smart training that is not only relevant but helps broaden employee
experiences and provides development opportunities.
- Accurately defined the employees job description, the skills most important to the
job, discuss the job skill the employees perform well and identify areas that meet
improvement, set mutual and worthwhile goals and coach to improve employee
performance.
MANAGER/SUPERVISOR CO-OPERATION:
-Demonstrate to employees that the company cares about them, wants them to
advance in their careers and will help them satisfy their need for personal growth.
-Walk the talk by not only communicating the corporate strategy but also ensuring
that it is applied consistently throughout the company, including making the reward
system consistent with strategic goals.
-Watch for and eliminate all inconsistencies between promoting a belief in employees
and managerial behaviour or policies that undermines the commitment.
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-Top management to clearly explain responsibilities and expectations regularly stress
the importance of hard and soft skills and hold supervisors accountable for
developing in these areas.
- Weed out poor managers because many employees leave their jobs because they
are unhappy with their bosses remember people dont leave their jobs, they leave
their managers.
PERFORMANCE APPRAISAL:
- Implement 360 degree appraisal system so that from top to bottom everyone
included giving feedback for an employee
- Encourage your employees to contribute to the success of the business. Ask for
their opinions and suggestions.
- Encourage your line managers to 'catch people doing things right' and give positive
feedback when people do things well.
- Provide employee well defined career paths (including succession plan), mentors
and tuition remuneration for job-related education.
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- Provide employee a clear professional development plan gives employees an
incentive to stick around.
- Implement a good promotion process, soft skills training development before and
after promotion.
- Implement job rotation method so that every employee can get an opportunity to
access other department and understand responsibilities and problems face by other
departments.
- Top management identifies employees and prepares them for next higher position
by providing necessary training and education.
- Identify your employees' talents and then encourage them to stretch their abilities
into new areas.
OTHER RECOMMENDATIONS:
- Give employees the best equipment and supplies possible. Ensure that your
equipment is properly maintained, and regularly upgrade machinery, computers and
software. In addition, provide employees with the highest quality supplies you can
afford.
- Show your employees that you value them. Recognize outstanding achievements
promptly and publicly, but also take time to comment on the many small contributions
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your staffs makes every day to the organization's mission. Don't forget these are
the people who make you look good.
- Be flexible. Today's employees have many commitments outside their job, often
including responsibility for children, aging parents, chronic health conditions and
other issues. They will be loyal to workplaces that make their lives more convenient
by offering on-site childcare centres, on-site hair styling and dry cleaning, flexible
work hours, part-time positions, job-sharing or similar practices.
- Make room for fun. Celebrate successes and recognize when milestones are
reached. Potluck lunches, birthday parties, employee picnics and creative contests
will help remind people why your company is a great place to work.
- Reduce the paperwork burden. If your technologists spend nearly as much time
filling out paperwork, it's time for a change. Paperwork pressures can add to the
stress and burnout that employees feel. Eliminate unnecessary paperwork; convert
more paperwork to an electronic format; and hire non-tech administrative staff to
take over as much of the paperwork burden as is allowed under legal or regulatory
restrictions.
LIMITATIONS
Each and every task has certain limitations and hurdles in the course of its
performance. But this does not mean that the task should stick up whenever certain
limitations come up. The need is to try ones level best to solve incoming limitations.
Few limitations of the project are enumerated below:
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This study is only limited to this company.
To create good image, respondents may give responses vary from the facts.
Some respondents hesitated to give the actual situation; they feared that
management would take any action against them.
I was able to cover only those employees who were currently working in the
company.
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QUESTIONNAIRE
Department: Qualification:
Please take a few minutes to complete this survey. You are the person who can give
us fair guidance without any bias. Based on your personal experience in this
organisation, please fill this form to help us building our organization much better &
professional. Share your views by putting a " mark in the boxes against each
question
5 4 3 2 1
A1 COMPANY CULTURE
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communicated to them in a non-
threatening way.
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A4 COMMUNICATION
A6 PERFORMANCE APPRAISAL
58
The management periodically provides
feedback on the good and the bad aspects of
an employees work and where he/she must
28 improve, by way of performance appraisal.
A7 COMPENSATION
A8 MANAGER/SUPERVISOR CO-OPERATION
My Manager/Supervisor communicates my
36 weaknesses and helps me in overcoming them.
My Manager/Supervisor encourages my
38 development...
A9 JOB SATISFACTION
59
41 I am trusted to do my job.
Date: ___________
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BIBLIOGRAPHY
S.P. Gupta : Statistical Methods, 36th edition, Sultan Chand & Sons, New
Delhi
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First, Break All The Rules (What The World's Greatest Managers Do
Differently by Marcus Buckingham & Curt Coffman )
- Reviewed by Regine P. Azurin and Yvette Pantilla
Internet Sites
o www.humanresource.hrvinet.com
o www.hrblogs.com
o hrmba.blogspot.com
o www.citehr.com
o www.wikipedia.org
o www.search.ebscohost.coms
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