Sikkim Manipal University Deepak Chauhan

SIKKIM MANIPAL UNIVERSITY
DEPARTMENT OF MANAGEMENT
PROJECT REPORT ON SUMMER TRAINING
“A STUDY ON EMPLOYEE WELFARE AND SATISFACTION
IN PUNJAB CHEMICALS AND CROP PROTECTION LIMITED”
SUBMITTED TO SIKKIM MANIPAL UNIVERSITY
IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE AWARD OF DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
SUBMITTED BY:
DEEPAK CHAUHAN
UNIVERSITY ROLL NO.
UNIVERSITY REG. NO.
UNDER THE GUIDANCE OF:
MS. PRIYANKA CHHIBBER
LECTURER, APAR INDIA INSTITUTE OF MANAGEMENT
DEPARTMENT OF MANAGEMENT
SIKKIM MANIPAL UNIVERSITY
(2008-2010)
i
CERTIFICATE
It is certified that the project entitled “A STUDY ON EMPLOYEE
WELFARE AND
SATISFACTION IN PUNJAB CHEMICALS AND CROP PROTECTION
LIMITED” is
submitted in partial fulfillment of the requirements for the award of
degree of MASTER OF
BUSINESS ADMINISTRATION by SIKKIM MANIPAL UNIVERSITY. This work
has been done by Mr. DEEPAK CHAUHAN; a bona fide student of
department, in PUNJAB CHEMICALS AND CROP
PROTECTION LIMITED under my supervision and is genuine.
MR. RAVINDER CHADHA
G.M. (MARKETING)
PCCPL.
(PROJECT SUPERVISOR)
ii
ACKNOWLEDGEMENT
At the very outset, I am highly indebted to the all powerful ALMIGHTY
GOD for all the
blessings he showered on me and for being with me
tMARKETINGoughout the study.
I would like to express my sincere thanks to MR. RAVINDER CHADHA,
G.M MARKETING, PCCPL (Punjab Chemicals and Crop Protection
Limited), who provided me an
opportunity to do this project in his esteemed organization and for
giving his valuable time and
exemplary guidance during my training, without his constant
encouragement it would have been
impossible to test my theoretical knowledge.
I extend my gratitude to the entire staff of PCCPL especially to MR.
SANJEEV MEHTA, MR.
DHARAM CHAND, Mr. B. L VERMA & MR. OM PRAKASH SAINI for their
diligently
attention, cooperation, precious advice, a very congenial environment
and sophisticate facilities
during the course of the project.
I would also express my profound sense of gratitude to all lecturers of
APAR INSTITUTE
OF MANAGEMENT, , for giving immense inspiration
tMARKETINGoughout my M.B.A
course, whose teaching not only acted merely as drop of ink rather it
has acted as a stone upon
which the training is based.
I also take this opportunity to express my deed gratitude to my loving
parents and friends who
are a constant source of motivation and for their never ending support
and encouragement during
this project.
DEEPAK CHAUHAN
iii
TABLE OF CONTENTS
1.TITLE………………… ……………………………..………………………………………………….
…………I
2.CERTIFICATE BY THE PROJECT-INCHARGE ……….……………………………………….
…………..II
3.ACKNOWLEDGEMENT………………………………………….………………………………….
…………
III
4.TABLE OF CONTENTS (INCLUDING LIST OF TABLES AND ILLUSTRATIONS) .
…………….
…….IV
5.EXECUTIVE SUMMARY ………………………..……………………….….
………………………….………
V
SR. NO PARTICULARS PAGE NO.
1. INTRODUCTION TO THE SUBJECT 1-6
1. A) THE CONCEPT OF JOB SATISFACTION 1
1. A.i) DETERMINANTS OF JOB SATISFACTION 2
1. A.i.a) Organizational variables 2
1. A.i.b) Personal variables 3
1. A.ii) EFFECTS OF JOB SATISFACTION 4
1. A.ii.a) Physical and mental health 4
1. A.ii.b) Productivity 4
1. A.ii.c) Absenteeism 5
1. A.ii.d) Satisfaction and safety 5
1. A.ii.e) Employee turnover 6
1. A.iii) BENEFITS OF EMPLOYEE JOB SATISFACTION 6
2. B) REVIEW OF LITERATURE 7-12
2. INDUSTRY PROFILE AND COMPANY PROFILE 13-58
2. A) THE INDIAN CHEMICAL INDUSTRY 14
2. A.i) HISTORY 14
2. A.ii) OVERVIEW OF INDIAN CHEMICAL INDUSTRY 15
2. A.ii.a) Market size 16
2. A.ii.b) State wise share in production of major chemicals 17
2. A.ii.c) Ownership pattern 17
2. A.ii.d) Sub segment 18
2. A.ii.e) Nature of operations 18
2. A.ii.f) Sector highlights 19
2. A.iii) CHARACTERISTICS OF INDIAN CHEMICAL INDUSTRY 21
2. A.iv) GLOBAL SCENARIO 22
2. A.v) GROWTH OF INDIAN CHEMICAL INDUSTRY 23
2. A.v.a) Index of industrial production 24
2. A.v.b) Industrial investment trends in chemicals 25
2. A.v.c) International trade in chemicals & petrochemicals 25
2. A.v.d) Production of selected major chemicals (2002-03 to 2008-09) 27
2. A.vi) FUTURE PLANS 29
2. A.vii) CHEMICAL WEAPONS CONVENTION 29
2. A.viii) FACTS OR MILESTONES OF INDIAN CHEMICAL INDUSTRY 30
2. A.ix) MAJOR PLAYERS AND THEIR MARKET SHARE 32
2. A.x) OPPORTUNITY FOR INDIAN CHEMICAL INDUSTRY 33
2. A.x.a) Outlook 33
2. A.x.b) Potential 34
iv
2. A.xi) SWOT ANALYSIS OF INDIAN CHEMICAL INDUSTRY 34
2. A.xi.a) Strengths 34
2. A.xi.b) Weaknesses 35
2. A.xi.c) Opportunities 35
2. A.xi.d) TMARKETINGeats 35
2. A.xii) COMPETITIVE ADVANTAGE OF INDIA 36
2. A.xiii) RECOMMENDATIONS FOR REJUVENATING ICI 36
2. A.xiii.a) Infrastructure 36
2. A.xiii.b) Energy 36
2. A.xiii.c) Finance 37
2. A.xiii.d) Duties and taxes 37
2. A.xiii.e) Action by industry 37
2. B) COMPANY PROFILE 38
2. B.i) HISTORY OF THE COMPANY 39
2. B.ii) PROFILE OF THE COMPANY 40
2. B.ii.a) Major locations 43
2. B.ii.b) Share holding pattern as on 6/30/2009 45
2. B.ii.c) The management team 45
2. B.ii.d) Aim of the company 46
2. B.ii.e) The vision 46
2. B.ii.f) The mission 46
2. B.iii) RECENT ACHIEVEMENTS AND MILESTONES 46
2. B.iv) PRODUCT RANGE OF THE COMPANY 48
2. B.v) COMPETITIVE STRENGTHS 48
2. B.vi) OPPORTUNITY MATRIX: STRONG DEMAND ON THE HORIZON 50
2. B.vi.a) India 50
2. B.vi.b) World wide 51
2. B.vi.c) Export: agro technical/intermediates 51
2. B.vii) PERFORMANCE OF THE COMPANY (STATISTICAL PROFILE) 52
2. B.vii.a) Investment rationale 53
2. B.viii) FINANCIAL STATUS OF THE COMPANY 54
2. B.viii.a) Quick financial synopsis 55
2. B.ix) FUTURE PROSPECTUS OF PCCPL 56
2. B.x) FUTURE STRATEGIES OF PCCPL 58
3. OBJECTIVES & RESEARCH METHODOLOGY 59-62
3. A) OBJECTIVES OF THE STUDY 59
3. B) HYPOTHESIS 59
3. C) RESEARCH METHODOLOGY 60
3. C.i) RESEARCH DESIGN 60
3. C.ii) SAMPLE SIZE 60
3. C.iii) DATA COLLECTION 60
3. C.iv) QUESTIONNAIRE SCHEDULE 60
3. C.v) TOOLS OF ANALYSIS 60
3. C.v.a) Simple percentage analysis 60
3. C.v.b) Two-way analysis 60
3. C.v.c) Chi-square test 61
v
3. C.vi) AREAS OF STUDY 61
3. C.vii) LIMITATIONS OF STUDY 61
4. DATA PRESENTATION AND ANALYSIS 62-139
4. A) DATA PRESENTATION WITH SIMPLE PERCENTAGE TABLE 63-130
4. B) DATA ANALYSIS WITH TWO WAY TABLE 130-133
4. C) DATA ANALYSIS WITH CHI-SQUARE TEST OR TEST OF HYPOTHESIS 134-
138
4. D) DESCRIPTIVE STATISTICS 139
5. 5. A) SUMMARY OF FINDINGS 140-142
5. A.i) FINDINGS FROM SIMPLE PERCENTAGE & DESCRIPTIVE STATISTICS 140-141
5. A.ii) FINDINGS FROM TWO-WAY TABLE 141
5. A.iii) FINDING FROM CHI- SQUARE ANALYSIS 141
5. A.iv) FINDINGS FROM SELF OBSERVATION 141-142
5. B) SUGGESTIONS 142-144
5. C) CONCLUSION 145
APPENDIX 146
1) GLOSSARY OF TERMS 147
2) ABBREVIATIONS 148
3) QUESTIONNAIRE 149 152
REFERENCES 153-154
BIBLIOGRAPHY 154
BOOKS REFERRED 154
WEBSITE ADDRESSES 154
vi
LIST OF TABLES
SR.
NO
DESCRIPTION PAGE
NO.
CHAPTER – II
1 Classification of Indian Chemical Industry and market value of each
segment. 16
2 Index of Industrial Production (1993-94 =100) 25
3 Exports and Imports–Chemicals and Petrochemicals. 27
4 Production of Selected Major Chemicals (2002-03 to 2008-09) (In 000’ MT)
28
5 Major players and their market share. 32
6 Share Holding Pattern as on 6/30/2009 45
7 Segment wise revenue to PCCPL for the FY2007-08 & 2008-09 52
8 Balance Sheet and P&L Account of PCCPL for FY2007, 2008 & 2009. 54
9 Key Ratios & cash flow statement for the FY 2007, 2008 & 2009. 55
CHAPTER IV
LIST OF SIMPLE PERCENTAGE TABLES
1 Table showing gender of the respondents 63
2 Table showing marital status of the respondents 64
3 Table showing the age of the respondents 65
4 Table showing Education qualification of the respondents 66
5 Table showing Years of experience of the respondents 67
6 Table showing monthly income of the respondents 68
7 Table showing employee’s opinion about the nature of their work. 69
8 Table showing opinion of employees regarding their work load. 70
9 Table showing opinion of employees regarding working hours. 71
10 Table showing opinion of the employees regarding rest intervals. 72
11 Table showing opinion of the employees about management & workers
relationship. 73
12 Table showing opinion of the employees whether they are provided with
sufficient
tools and equipments or not.
74
13 Table showing opinion of the employees regarding safety measures. 75
14 Table showing opinion of the employees lighting and other arrangements.
76
15 Table showing opinion of the employees regarding work pressure on them.
77
16 Table showing opinion of the employees about superior's assistance. 78
17 Table showing opinion of the employees about how much importance their
ideas have
in decision making.
79
18 Table showing opinion of the employees whether they are appreciated for
their
performance or not.
80
19 Table showing opinion of the employees regarding the fairness of their
boss 81
20 Table showing opinion of the employees regarding their participation in
day to day
activities.
82
21 Table showing opinion of the employees regarding their access to their
superiors. 83
22 Table showing opinion of the employees regarding the competency of
their superiors. 84
23 Table showing opinion of the employees regarding their relations with
their
colleagues.
85
24 Table showing opinion of the employees regarding the behavior of the
colleagues 86
25 Table showing opinion of the employees whether workers share their
know-how with
each other or not.
87
vii
26 Table showing opinion of the employees whether they feel motivated by
their boss in
achieving organizational goals or not.
88
27 Table showing opinion of the employees that they are adequately
motivated when ever
needed to do so.
89
28 Table showing opinion of the employees regarding system of
communication. 90
29 Table showing opinion of the employees that their assignments are clearly
explained to
them.
91
30 Table showing opinion of the employees regarding training program 92
31 Table showing opinion of the employees that they are provided with the
training
whenever needed.
93
32 Table showing opinion of the employees regarding the usefulness of the
training
program.
94
33 Table showing opinion of the employees regarding the efficiency of the
training
program.
95
34 Table showing opinion of the employees regarding performance appraisal
system. 96
35 Table showing opinion of the employees regarding efficiency of the
appraisal system. 97
36 Table showing opinion of the employees about fairness of appraisal
system. 98
37 Table showing opinion of the employees that they are paid fair amount for
their work. 99
38 Table showing opinion of the employees that they are provided with
proportionate
salary.
100
39 Table showing opinion of the employee that their wages are at par with
the wages in the
industry.
101
40 Table showing opinion of the employee that they are provided with
sufficient
allowances.
102
41 Table showing opinion of the employee regarding the promotion policy of
the
organization.
103
42 Table showing opinion of the employee that they are rewarded for their
innovative
ideas.
104
43 Table showing opinion of the employee that they are rewarded for their
performance as
a motivational technique.
105
44 Table showing opinion of the employee about transport facility. 106
45 Table showing opinion of the employee about medical facilities. 107
46 Table showing opinion of the employee that they are provided with
benefits for their
family.
108
47 Table showing opinion of the employee about refreshment facilities. 109
48 Table showing opinion of the employee about rest room and lunch room
110
49 Table showing opinion of the employees about parking facility. 111
50 Table showing opinion of the employees about first aid facility 112
51 Table showing opinion of the employees about loan facility and other
welfare benefits. 113
52 Table showing opinion of the employees regarding job security. 114
53 Table showing opinion of the employees about the criteria of job security.
115
54 Table showing opinion of the employees about the basic principal on
which job security
is provided to the employee.
116
55 Table showing opinion of the employees about workers participation in
management
decisions.
117
56 Table showing opinion of the employees about decision making standards
and plans of
the organization.
118
viii
57 Table showing opinion of the employees that their suggestions are given
due
importance in decision making process and for implementing any change in
their
respective department.
119
58 Table showing opinion of the employees regarding effectiveness of
grievance handling
procedure.
120
59 Table showing opinion of the employees that they are able to freely
communicate their
grievances.
121
60 Table showing opinion of the employees about awareness of employees
regarding the
quality standards adopted by the company.
122
61 Table showing opinion of the employees whether they are satisfied with
the ISO/QS
certification of the company.
123
62 Table showing opinion of the employees about the adaptability of
employees with
changes due to ISO/QS certification.
124
63 Table showing opinion of the employees whether they are happy to
changes in the
company or not.
125
64 Table showing opinion of the employees regarding their willingness to
work in the
company.
126
65 Table showing opinion of the employees that their work life is meaningful.
127
66 Table showing opinion of the employees that how valuable their work is
for the
company.
128
67 Table showing opinion of the employees regarding the opportunities to
use their ability. 129
68 Table showing opinion of the employees about their overall satisfaction
level in the
company.
130
LIST OF TWO WAY TABLES
1 Relationship Between Gender And Level Of Satisfaction 131
2 Relationship Between Marital Status And Level Of Satisfaction 131
3 Relationship Between Age And Level Of Satisfaction 132
4 Relationship Between Qualification And Level Of Satisfaction 132
5 Relationship Between Experience And Level Of Satisfaction 133
LIST OF CHI-SQUARE TEST TABLES
1 Relationship Between Gender And Level Of Satisfaction 134
2 Relationship Between Marital Status And Level Of Satisfaction 135
3 Relationship Between Age And Level Of Satisfaction 135
4 Relationship Between Qualification And Level Of Satisfaction 136
LIST OF DESCRIPTIVE STATISTICS TABLE
1 Table Showing the Descriptive Statistics About the various Job Satisfaction
Factors 139
ix
LIST OF FIGURES
SR.
NO
DESCRIPTION PAGE
NO.
CHAPTER-I
1 Factors Effecting Job Satisfaction. 3
2 Impact of Intrinsic Rewards and Extrinsic Rewards on Job Satisfaction 5
CHAPTER – II
1 Evolution of Indian Chemical Industry 15
2 Size of Indian Chemical Industry 16
3 Classification of Indian Chemical Industry and Constituent of Each Segment.
17
4 State Wise Share in Indian Chemical Industry 17
5 Ownership Pattern in Indian Chemical Industry 18
6 Share of Chemicals Sub Segments in Indian Chemical Industry 18
7 Nature of Operations in Indian chemical Industry 19
8 Characteristics of Indian Chemical Industry 21
9 World Wide Chemical Market Share 22
10 Index of Industrial Production (IIP) 24
11 Exports of Chemicals and Petrochemicals During 2002- 03 to 2008-09 26
12 Imports of Chemicals and Petrochemicals During 2002- 03 to 2008-09 26
13 Production of Selected Major Chemicals 28
14 Future Plans of Indian chemical Industry 29
15 Relative Market Share and Positioning of PCCPL 33
16 Subsidiary Companies of PCCPL 42
17 Product Range of PCCPL and Their Overall Contribution in Its Revenue 42
18 Location of Major Offices of PCCPL in India & Overseas 43
19 Product Range of PCCPL and Their Use 48
20 Key Strengths of PCCPL 49
21 Global Agrochemical Sales 2009 51
CHAPTER IV
LIST OF SIMPLE PERCENTAGE FIGURES
1 Figure showing gender of the respondents 63
2 Figure showing marital status of the respondents 64
3 Figure showing the age of the respondents 65
4 Figure showing Education qualification of the respondents 66
5 Figure showing Years of experience of the respondents 67
6 Figure showing monthly income of the respondents 68
7 Figure showing employee’s opinion about the nature of their work. 69
8 Figure showing opinion of employees regarding their work load. 70
9 Figure showing opinion of employees regarding working hours. 71
10 Figure showing opinion of the employees regarding rest intervals. 72
11 Figure showing opinion of the employees about management & workers
relationship. 73
12 Figure showing opinion of the employees whether they are provided with
sufficient
tools and equipments or not.
74
13 Figure showing opinion of the employees regarding safety measures. 75
14 Figure showing opinion of the employees lighting and other arrangements.
76
15 Figure showing opinion of the employees regarding work pressure on
them. 77
16 Figure showing opinion of the employees about superior's assistance. 78
x
17 Figure showing opinion of the employees about how much importance
employees
ideas have in decision making.
79
18 Figure showing opinion of the employees whether they are appreciated for
their
performance or not.
80
19 Figure showing opinion of the employees regarding the fairness of their
boss 81
20 Figure showing opinion of the employees regarding their participation in
day to day
activities.
82
21 Figure showing opinion of the employees regarding their access to their
superiors. 83
22 Figure showing opinion of the employees regarding the competency of
their superiors. 84
23 Figure showing opinion of the employees regarding their relations with
their
colleagues.
85
24 Figure showing opinion of the employees regarding the behavior of the
colleagues 86
25 Figure showing opinion of the employees whether workers share their
know-how with
each other or not.
87
26 Figure showing opinion of the employees whether they feel motivated by
their boss in
88
27 Figure showing opinion of the employees that they are adequately
motivated when
ever needed to do so.
89
28 Figure showing opinion of the employees regarding system of
communication. 90
29 Figure showing opinion of the employees that their assignments are
clearly explained
to them.
91
30 Figure showing opinion of the employees regarding training program 92
31 Figure showing opinion of the employees that they are provided with the
training
whenever needed.
93
32 Figure showing opinion of the employees regarding the usefulness of the
training
program.
94
33 Figure showing opinion of the employees regarding the efficiency of the
training
program.
95
34 Figure showing opinion of the employees regarding performance appraisal
system. 96
35 Figure showing opinion of the employees regarding efficiency of the
appraisal system. 97
36 Figure showing opinion of the employees about fairness of appraisal
system. 98
37 Figure showing opinion of the employees that they are paid fair amount
for their work. 99
38 Figure showing opinion of the employees that they are provided with
proportionate
salary.
100
39 Figure showing opinion of the employee that their wages are at par with
the wages in
the industry.
101
40 Figure showing opinion of the employee that they are provided with
sufficient
allowances.
102
41 Figure showing opinion of the employee regarding the promotion policy of
the
organization.
103
42 Figure showing opinion of the employee that they are rewarded for their
innovative
ideas.
104
43 Figure showing opinion of the employee that they are rewarded for their
performance
as a motivational technique.
105
44 Figure showing opinion of the employee about transport facility. 106
45 Figure showing opinion of the employee about medical facilities. 107
xi
46 Figure showing opinion of the employee that they are provided with
benefits for their
family.
108
47 Figure showing opinion of the employee about refreshment facilities. 109
48 Figure showing opinion of the employee about rest room and lunch room
110
49 Figure showing opinion of the employees about parking facility. 111
50 Figure showing opinion of the employees about first aid facility 112
51 Figure showing opinion of the employees about loan facility and other
welfare
benefits.
113
52 Figure showing opinion of the employees regarding job security. 114
53 Figure showing opinion of the employees about the criteria of job security.
115
54 Figure showing opinion of the employees about the basic principal on
which job
security is provided to the employee.
116
55 Figure showing opinion of the employees about workers participation in
management
decisions.
117
56 Figure showing opinion of the employees about decision making standards
and plans
of the organization.
118
57 Figure showing opinion of the employees that their suggestions are given
due
importance in decision making process and for implementing any change in
their
respective department.
119
58 Figure showing opinion of the employees regarding effectiveness of
grievance
handling procedure.
120
59 Figure showing opinion of the employees that they are able to freely
communicate
their grievances.
121
60 Figure showing opinion of the employees about awareness of employees
regarding the
122
61 Figure showing opinion of the employees whether they are satisfied with
the ISO/QS
123
62 Figure showing opinion of the employees about the adaptability of
employees with
changes due to ISO/QS certification.
124
63 Figure showing opinion of the employees whether they are happy to
changes in the
company or not.
125
64 Figure showing opinion of the employees regarding their willingness to
work in the
company.
126
65 Figure showing opinion of the employees that their work life is meaningful.
127
66 Figure showing opinion of the employees that how valuable their work is
for the
company.
128
67 Figure showing opinion of the employees regarding the opportunities to
use their
ability.
129
68 Figure showing opinion of the employees about their overall satisfaction
level in the
company.
130
LIST OF DESCRIPTIVE STATISTICS FIGURE
1 Figure Showing the Descriptive Statistics About the various Job Satisfaction
Factors 139
xii
Executive Summary
Job satisfaction represents the constellations of person’s attitude
towards or about the job.
In general, job satisfaction is the attitude towards the job as a whole.
Job satisfaction is a
function of satisfaction with different aspects of job, i.e. supervision,
pay, works itself, coworkers,
promotion, etc., and of the particular weighting or importance one
attaches to these
respective components.
Employee job Satisfaction was a much popularized subject during the
1980’s and 1990’s, where
much of the literature (Stoner & Wankel, 1986; Brewster, Dowling,
Grobler, Holland &
Warnich, 2000), focused on the link between Employee Satisfaction
and Employee Performance.
Subsequent research has, however, proven that this link is not
particularly strong, (Kreitner &
Kinicki, 2005; Ivancevich & Matteson, 2002). What recent research has
confirmed is that there is
a clear reciprocal relationship between Employee Satisfaction and
Customer Satisfaction (Kraut,
1996). For example, one of the most detailed studies undertaken was
that carried out by Heskett,
Sasser and Schlesinger (1995). The authors point out that, “When
companies put employees and
customers first, their employees are satisfied, their customers are
loyal, their profits increase, and
their continued success is sustained” (as cited in Bailey & Dandrade,
1997).
The concept of Employee Satisfaction can be traced back to Edward
Thorndike, who in the early
1900’s published an article in the Journal of Applied Psychology where
he explored the
relationship between work and satisfaction. The concept of Employee
Satisfaction has certainly
been researched very thoroughly over the years and has been linked
to many other issues like
employee loyalty, employee commitment, employee engagement and
job satisfaction.
One of the most quoted theorists is Hertzberg who during the 1950’s
developed his theory which
identified two dimensions of satisfaction, namely motivation and
hygiene. Hertzberg maintained
that the hygiene factors could not motivate employees but rather
helped minimize dissatisfaction
levels if addressed. These hygiene factors include topics such as;
company policies, supervision,
salary, interpersonal relationships and working conditions. The
motivating factors addressed
topics such as: the work itself, achievement, recognition, responsibility,
and advancement. If
continuously good levels are maintained in respect of these topics, a
motivated work force is
created.
Modern management considers human being as resource and it is an
importance for the success
of any organization. It is the strength and aid. Therefore employees
attitudes, interest, quality,
xiii
job satisfaction, etc., have a bearing productivity of a firm unless the
management is able to
recognize employees needs and wants they will lose motivation and
morale and it will affect the
best interest of the firm.
Work is one of the most important activities in a person’s life .Who do
have satisfying job rarely
have fully satisfying lives. Dissatisfaction in work can lead in many
circumstances to lower
production and friction on the job. So that it must be considered by the
management and steps
should be taken to find out the factors which cause job dissatisfaction
and to reduce such
dissatisfaction. In general employee satisfaction is the attitude towards
the work environment,
salary, relationship with their colleagues, job security, grievance
handling, performance
appraisal, training and development, management style, quality policy,
career counseling and so
on.
In this project factors that are taken into consideration for the
employee satisfaction are:
Work Environment:
Work environment is the atmosphere to which the employee is actually
exposed. This constitutes
a major portion of the influence on the employees. This typically
included the quantum of work
allotted, nature and complexities, system being followed, support from
colleagues etc.
Relationship with the Superiors and Subordinates:
Healthy and cordial relationship in the department will not only provide
healthy environment but
also paves way for smooth flow of work, increases productivity and
qualitative performance.
Relationship with Colleagues:
Better understanding and friendly relations with colleagues is necessity
for a good environment.
Joining hands together and helping each other enhance stability and
confidence among
themselves that contributes to the security and improve performance
as a whole.
Motivation and Recognition:
The level of performance of an employee is a function of his abilities. If
there is a strong positive
motivation, the output increases and decreases if it is negative.
Motivation is a core element of
management which shows that every human being earnestly seeks a
secure, friendly and
supportive relationship that gives him a sense of warmth and
recognition in groups that are most
important to him.
Salary:
Salaries are influenced by the size of the company, by a specific
industry and in part by the
xiv
contribution of the incumbent to the process of decision making. The
bigger the firm, the greater
is the compensation to the employees. The more attractive the salary,
the more attractive will be
the performance of the employees.
Job security:
A person who is satisfied with the current job would continue to remain
in the same job. So job
security plays a crucial role in the maintenance of job satisfaction
among employees.
Grievance handling:
This is a corrective measure however important when grievances or
difficulties or constraints
enter in on employee’s job. The approaches of management, time
taken to provide counter
measures etc are the constraints of this factor.
Performance appraisal:
Most firms do not have a choice whether or not it should appraise its
personnel and their
performance of the hired personnel will be evaluated by someone at
sometime.
Management practices:
The approach of the management towards employees in the interfaces
like appraisal and reward
schemes, permitting employees in the interfaces like appraisal and
reward schemes, permitting
employees to participate in the organizational issues etc, is also
determining the employee
satisfaction. This company has set employee of the year award etc,
ensures positive management
approach. These approaches have made the employees to have a good
view over their job.
Opportunities for development:
This is a factor strongly related to the higher order needs of the
employees on their personal
development. Many people like a challenging job, since that assures
them to think and undergo
series development measures. This factor is an essential one for
satisfaction of permanent
employees.
Quality policy:
Quality is a core concept that rules today’s business. It is a non
comprising factor of any industry
in today’s business world. Companies would adopt themselves to the
recognize quality standards
to sustain in the market and to provide a better working condition to
the employees and job
security.
The study on employee satisfaction is relatively recent phenomenon. It
can perhaps be said to
have begun in earnest with the famous HawtMARKETINGone
experiment conducted by Elton Mayo at
xv
western electrical company in 1920s. During the course of their
investigation, however they
became convinced that the factors of social nature were affecting
employee satisfaction with the
job and productivity. Since the HawtMARKETINGone studies, there has
be enormous output of work on the
nature, causes, correct employee satisfaction. The traditional model of
employee satisfaction is
that it consists of training and development, salary, management style,
quality policy than an
individual has about his work. The total body of influence of the job,
the nature of the job itself,
the pay, the promotion prospects, nature of supervision and so on,
where the sum total of
influences gives to rise to the feeling of employee satisfaction, the
employee is satisfied, where
in total, they give rise to psychological and environmental
circumstances that cause a person
truly to say “I am Satisfied”. Employee satisfaction means a
pleasurable positive emotional state
resulting from the appraisal of one’s feelings.
This research named “A Study on employee welfare and satisfaction in
Punjab Chemicals and
Crop Protection Limited” (Further referred as PCCPL) anticipates
identifying the various factors
and the extent to which they affect the satisfaction level of the
employees.
Employee satisfaction and welfare is very crucial for every organization
because higher
satisfaction level and welfare of the employee have a positive impact
on productivity,
performance, individual’s physical and mental health, profitability,
improve quality of products
or services and reduce absenteeism, employee turnover, dispute
between labour and
management. This gives a competitive edge to the company over its
competitors.
Since Punjab Chemicals and Crop Protection Limited is producing
dangerous pesticides,
insecticides and pharmaceutical products and its employees are
working every day in a
dangerous environment which is very critical to their health , so it
becomes imperative for me to
conduct a study on welfare and satisfaction of the employees of
company.
The study tries to cover each and every factor that effect employee
welfare and satisfaction level.
The research includes each and every factor because even a single
factor can lower satisfaction
level and moral of the employee, which in turn leads to absenteeism,
accidents, low productivity
etc. and ultimately effect the organizational goal.
The research will help the company to gain the benefits of higher
employee satisfaction level and
have a competitive edge over its competitors.
xvi
Area of study
The area of the study is the production plant of the Ago-Chemical
division of Punjab Chemicals
and Crop Protection Limited at Bhankarpur, Distt-Mohali, Punjab.
Scope of the study
The scope of the study extends from lower hierarchical level (workers),
middle hierarchical level
(supervisors) to upper hierarchical level (Managers) of the company, so
it is a comprehensive
study.
Objectives of the study
The objective of conducting such research is to know the level of
satisfaction among the
employees of Punjab Chemicals and Crop Protection Limited. Further it
will also help to know
the various job related and personal factors and their extent to which
they affect the satisfaction
level of employees, so that meaningful conclusions and suggestions
could be made in order to
make the human resource policies and practices of the company more
effective and efficient.
Research methodology
The research includes both primary and secondary data. The
information from the respondents is
collected tMARKETINGough questionnaire. The primary data was
collected form employees of the PCCPL
and secondary data is collected from the books.
The sample size is 60 and samples are selected on the basis of
convenient from every department
of the company.
Questions are framed in such a way that the answers reflect the ideas
and thoughts of the
respondents with regard to level of satisfaction. For job related factors
likert scale (five rating
scale) is used in which respondents are required to show their level of
satisfaction from 1 to 5
(1= Strongly Agree, 2= Agree, 3= Neutral, 4= Disagree, 5=Strongly
Disagree) and for personal
factor simple category scale is used and respondents are required to
tick at the appropriate box.
Some facts revealed in the study are bases on personal observations
also.
Tools of interpretation and analysis
Here the simple percentage analysis is used for calculating the
percentage of satisfaction level in
the total respondents and data is presented in the form of tables and
bar diagrams.
To determine the level of satisfaction for the various categories (work
environment and nature of
work, relationship with seniors and co-worker, welfare facilities, pay
and promotion etc)
combined mean is used. Since likert scale is used to find out the
satisfaction level the value of
xvii
combined mean shows the level of satisfaction form 1 to 5 and 2.5 is
the middle point. Higher
the value of mean shows higher satisfaction level and lower the value
of mean shows lower
satisfaction level.
To analyze the data two-way analysis is used and to test the
hypothesis Chi-square test is used
and for all the chi-square test the table value has taken @ 5% level of
significance.
Limitations of the study
The study is also subjected to certain limitations such as, sample is
limited to 60, findings and
conclusions are based on knowledge and experience of the
respondents sometime may subject to
personal biasness and research study was being done in the year July
2009, with required data
analysis and interpretation, the data needs to be updated at times
when it comes to have further
usage of this research study report.
Despite the above limitations I tried my best tMARKETINGough the
entire study to provide a
comprehensive, complete and detailed report, so that it can help the
organization to take
appropriate decisions for the welfare and satisfaction of its employee
while giving due
consideration to its goals and objectives.
xviii
CHAPTER-I
1. INTRODUCTION TO THE SUBJECT
1. A) THE CONCEPT OF JOB SATISFACTION
Job satisfaction refers to a person’s feeling of satisfaction on the job,
which acts as a motivation
to work. It is not the self satisfaction, happiness or self contentment
but the satisfaction on the
job. The term relates to the total relationship between an individual
and the employer for which
he is paid. Satisfaction does mean the simple feeling-state
accompanying the attainment of any
goal; the end-state is feeling accompanying the attainment by an
impulse of its objectives.
Research workers differently described the factors contributing to job
satisfaction and job
dissatisfaction.
Hoppock describes job satisfaction as, “Any combination of
psychological, physiological and
environmental circumstances that cause any person truthfully to say I
am satisfied with my job”
[1]. The term “job satisfaction” refers to an employee’s general
attitudes toward his job. Locke

defines job satisfaction as a “Pleasurable or positive emotional state
resulting from the appraisal
of one’s job or job experience, to the extent that person’s job fulfill his
dominant need and is
consistent with his expectations and values” [2]. There are
tMARKETINGee major theories of job satisfaction
viz,
i) Herzberg’s Motivation-Hygiene Theory.
ii) Need Fulfillment Theory.
iii) Social Reference Group Theory.
Smith Kendall and Hulin have suggested that there are five job
dimensions that represent the
most important characteristics of a job about which people have
affective responses, these are:
i) The work itself : The extent to which the job provides the individual
with the interesting
task, opportunities for learning and the chance of accept responsibility.
ii) Pay : The amount of financial remuneration that is received and the
degree to which this
is viewed as equitable vis-a-vis that of others in the organization.
iii) Promotion opportunities: The chance for advancement in the
hierarchy.
vi) Supervision: The ability is on the supervision to provide technical
assistance and
behavioral support.
1
v) Co-workers: The degree to which follow workers are technically
proficient and socially
supportive.
However, a comprehensive approach requires that may additional
factors be included before a
complete understanding of job satisfaction can be obtained. Such
factors as the employee’s are,
health, temperament, desires and levels of aspiration should be
considered.
Further, his family relationship, social status, recreational or purely
social-contribute ultimately
to job satisfaction.
1. A. i) Determinants of Job Satisfaction
According to Abraham A. Korman, [3] there are two types of variables
which determine the job
satisfaction of an individual. These are:
1. A.i.a) Organizational variables, and
1. A.i.b) Personal variables.
1. A.i.a) Organizational variables:
i) Occupational Level : The higher the level of the job the greater the
satisfaction of the
individuals. This is because of higher levels of job carry greater
prestige and self control.
ii) Job Content : Greater the variation in job content and the less the
repetitiveness with
which the tasks must be performed, the greater the satisfaction of the
individuals
involved.
iii) Considerate Leadership : People like to be treated with
consideration. Hence
considerate leadership results in higher job satisfaction than
inconsiderate leadership.
iv) Pay and Promotional Opportunities : All other things being
equal these two variables
are positively related to job satisfaction. An explanation for this finding
lies in both
theories discussed above.
v) Interaction in the Workgroup : Here the question is when the
interaction in the
workgroup a source of job satisfaction and when it is not? Interaction is
must satisfying,
when
✔ It results are being accepted by others.
✔ It facilitates the achievement of goals.
2
1. A.i.b) Personal variables:
For some people, it appears job will be dissatisfying irrespective of the
organizational
conditions involved, whereas or others, most jobs will be personal
variables like age,
educational levels, sex, etc.,
i) Age : Most of the evidence on the relation between age and job
satisfaction, holding such
factors as occupational level constants, seems to indicate that there is
generally a positive
relationship between the two variables up to the pre-retirement years
and then there is a
sharp decrease in satisfaction.
ii) Educational Levels : With occupational level held constant there is
a negative
relationship between the educational level and job satisfaction. The
higher the
educational, the higher the reference group which the individual looks
to for guidance to
evaluate his job rewards.
iii) Role Perception : The different individuals holder different
perceptions about their role
i.e., the kind of activities and behaviors they should engage in to a firm
makes job
successful. Job satisfaction is determined by this factor also.
iv) Sex : There is yet no confident evidence as to whether women are
more satisfied with that
their job than men. Holding such factors as job and occupational levels
constant, one
might predict this to be the case considering the generally lower
occupational aspiration
of women.
Figure 1: Factors effecting Job Satisfaction.
Source: Shiwalika Karam Singh Saini, 2008, A Study on Employee Welfare &
Satisfaction in Scot Edil Pharmacia
Pvt. Ltd. Baddi (H.P), pp-33.
3
1. A. ii) Effects of job satisfaction
Job satisfaction has a variety of effects. These effects may be seen in
the context of an
individual’s physical and mental health, productivity, absenteeism, and
turnover.
1. A.ii.a) Physical and Mental Health: The degree of job
satisfaction affects an
individual’s physical and mental health. Since job satisfaction is a type
of mental feeling,
its favourableness or unfavourablesness affects the individual
psychologically which
ultimately affects his physical health. For example, Lawler has pointed
out that drug
abuse, alcoholism and mental and physical health result from
psychologically harmful
jobs. Further, since a job is an important part of life, job satisfaction
influences general
life satisfaction. The result is that there is spillover effect which occurs
in both directions
between job and life satisfaction.
1. A.ii.b) Productivity: There are two views about the
relationship between job
satisfaction and productivity:
i) A happy worker is a productive worker,
ii) A happy worker is not necessarily a productive worker.
i) The first view establishes a direct cause-effect relationship
between job satisfaction and
productivity; when job satisfaction increases, productivity increases;
when satisfaction
decreases, productivity decreases. The basic logic behind this is that a
happy worker will
put more efforts for job performance.
However, this may not be true in all cases. For example, a worker
having low
expectations from his jobs may feel satisfied but he may not put his
efforts more
vigorously because of his low expectations from the job. Therefore, this
view does not
explain fully the complex relationship between job satisfaction and
productivity.
Another view: That is a satisfied worker is not necessarily a
productive worker explains
the relationship between job satisfaction and productivity. Various
research studies also
support 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.
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 from
4
the job itself which may be in the form of growth potential, challenging
job, etc. The
satisfaction on such a type of reward may help to increase
productivity. The extrinsic
reward is subject to control by management such as salary, bonus, etc.
Any increase in
these factors does not heap to increase productivity though these
factors increase job
satisfaction.
Figure 2: Impact of intrinsic rewards and extrinsic rewards on job satisfaction.
Source : Shiwalika Karam Singh Saini, 2008, A Study on Employee Welfare &
Satisfaction in Scot Edil
Pharmacia Pvt. Ltd. Baddi (H.P), pp-36.
ii) A happy worker does not necessarily contribute to higher
productivity because he has to
operate under certain technological constraints and, therefore, he
cannot go beyond
certain output. Further, this constraint affects the management’s
expectations from the
individual in the form of lower output. Thus, the work situation is
pegged to minimally
acceptable level of performance.
However, it does not mean that the job satisfaction has no impact o
productivity. A
satisfied worker may not necessarily lead to increased productivity but
a dissatisfied
worker leads to lower productivity.
1. A.ii.c) Absenteeism: Absenteeism refers to the frequency of
absence of job holder
from the workplace either unexcused absence due to some avoidable
reasons or long
absence due to some unavoidable reasons. It is the former type of
absence which is a
matter of concern. This absence is due to lack of satisfaction from the
job which produces
a ‘lack of will to work’ and alienate a worker form work as for as
possible. Thus, job
satisfaction is related to absenteeism.
1. A.ii.d) Satisfaction and Safety: Poor safety practices are
negative consequences of
low satisfaction level when people are discouraged about their job
satisfaction. Company
5
and supervisor, they are more liable to experience accidents. And
underlying reason for
such accidents is that discouragement, may take one’s attention away
from the task at
hand. In-attention leads to accidents.
1. A.ii.e) Employee turnover: Turnover of employees is the
rate at which employees
leave the organization within a given period of time. When an
individual feels
dissatisfaction in the organization, he tries to overcome this
tMARKETINGough the various ways of
defense mechanism. If he is not able to do so, he opts to leave the
organization. Thus, in
general case, employee turnover is related to job satisfaction.
However, job satisfaction is
not the only cause of employee turnover, the other cause being better
opportunity
elsewhere. For example, in the present context, the rate of turnover of
computer software
professionals is very high in India.
However, these professionals leave their organizations not simply
because they are not
satisfied but because of the opportunities offered from other sources
particularly from foreign
companies located abroad.
1. A. iii) Benefit s o f Employee Job Satisfaction
i) One benefit of employee job satisfaction survey is that they give
management an
indication about the general level of satisfaction in a company. Survey
also indicates
specific areas of satisfaction and dissatisfaction.
ii) Improved communication is another benefit of the survey.
iii) An unexpected benefit from a job satisfaction survey is improved
attitudes. For some
employees the survey is improved attitudes. For some employees the
survey is a safety
value, an emotional release, change to get things of their chests.
iv) Job satisfaction survey can help discover the causes of indirect
productivity problems
such as absenteeism, turnover and poor quality of work.
v) Another benefit of job satisfaction survey is that it helps
management assessing training
needs.
vi) A job satisfaction survey is an indicator of the effective system of
organizational reward
system.
vii)One of the best uses of the job satisfaction survey is in the
evaluation of the impact of
organizational changes of the employee’s attitude.
6
1. B) REVIEW OF LITERATURE
i) Predictors Of Employee Satisfaction With The Performance
Appraisal Process.[4]
By: Edward J. Inderrieden, Timothy J. Keaveny, Robert E. Allen, 1988.
The study investigated the impact of several aspects of the appraisal
process on tMARKETINGee outcome
measures: satisfaction with the appraisal process, fairness of ratings
and motivation to improve
performance. The findings suggest the importance of viewing the
performance appraisal process
from a systematic perspective, rather than as a single event.
The objective of this research was to identify the impact of each phase
of the appraisal process
on employee satisfaction with the process, perceptions of fairness of
performance ratings, and
motivation to improve performance. Questionnaires were randomly
distributed to 890
professional and general staff employees of a major state university in
the Western United States.
A total of 270 employees comprised the final sample. Selected
characteristics of subordinates,
superiors and the work situation were measured. The study reveals
that participation in setting
standards and providing performance feedback during the year were
positively associated with
the dependent variable. However, neither performance rating nor the
nature of appraisal
interview was significant predictors of motivation to improve
performance.
ii) A Qualitative Study of African-American Job Satisfaction in a
Scientific/Technical Research Environment[5]
By: Cheryl D. Krossa, 1996.
The purpose of this study was to begin to develop an answer to the
question, "what elements are
necessary, in a high-tech scientific and technical research work
environment, for African-
Americans to experience job satisfaction?" Many studies have been
conducted in the area of job
satisfaction. Its necessary attributes or components have been studied,
analyzed, validated,
standardized, and normed on predominantly white male populations.
Few of these studies have
focused on people of color, specifically African-Americans, and fewer
still on those African
Americans working in a high-tech, scientific and research
environments. The researchers have
defined what is necessary for the current dominant culture's
population.
iii) The Relationship Between Satisfaction With On-The-Job
Training And Overall
Job Satisfaction.[6]
By: Steven W. Schmidt, 2004.
This study examined the relationship between satisfaction with
employer-provided workplace
training and overall job satisfaction. Survey completion data were
obtained from 301 customers
7
and technical service employees in nine different organizations. Job
duties for employees in
these positions are employer specific. Organizations represented
included those in
manufacturing, technology, service, and government. A significant
relationship was found
between job training satisfaction and overall job satisfaction. Time
spent in training, training
methodologies, and type of training were determined to be significant
in their relationships to job
training satisfaction. The methodology used in training made a
significant difference in job
training satisfaction. Most preferred by respondents were
methodologies that involved face-toface
interaction provided by an instructor or job coach. Also found were
significant interactions
between job tenure and employment type (customer service
representative or technical service
representative) when examined with job training satisfaction. A major
research finding in this
study was the high degree of relationship between job training
satisfaction and overall job
satisfaction among employees in customer/technical service positions.
iv) Performance Appraisal’s Relation with Productivity and Job
Satisfaction[7]
By: Ayaz Khan, 2005.
The whole essence of the management activities of an organization
culminates in the system of
performance appraisal adopted in that organization. This, in turn,
reflects the extent of the
individual contributions and commitment of the employees in different
hierarchical levels toward
the achievement of organizational objectives/goals. It goes without
saying that an effective
performance appraisal system can lead an organization to take strides
towards success and
growth by leaps and bounds. Conversely, an ineffective performance
appraisal system can seal
the fate of an organization by creating chaos and confusion from top to
bottom in the
administrative hierarchy. As a consequence the chances of success
and growth of that
organization are doomed.
v) Does employee satisfaction matter? A study to determine
whether low employee
morale affects customer satisfaction and profits in the
business-to-business
sector[8]
By: Julie Abbott, 2005.
Is employee morale affecting customer satisfaction and therefore the
bottom line? This paper
describes a piece of exploratory research carried out in the business-to
business (B2B) sector in
the UK to determine whether employee satisfaction does ultimately
affect profits. There is a
great deal of literature that supports this argument. The results of the
research, however, actually
indicated an inverse relationship in one industry in particular. The
focus industries were
technology, processing and business banking. This correlates with a
recent similar study in the
8
retail industry. The results showed that morale can be very low, yet
employees work hard in
order to keep their customers loyal and to maximize company profits.
This is despite fear of
redundancy, high workloads and long hours.
vi) A case study analysis of the impact of satisfaction and
organizational citizenship
on productivity. [9]
By: Steven H. Appelbaum, Jacques Adam, Nadeem Javeri, Michel
Lessard, Jean-Pascal
Lion, Michel Simard, Silvana Sorbo, 2005.
Despite significant investment in capital improvements and training, a
rod mill suffered from
cMARKETINGonically low productivity. The authors conducted a survey
to measure employee satisfaction
and to determine the correlation between employee satisfaction and
productivity. The study
found a correlation between average job satisfaction, low motivation
and the resulting low
productivity. A direct correlation was also found between low
productivity and poor
communication between management, supervisors and employees.
The article offers
recommendations to improve productivity by increasing employee
involvement and
communication.
vii) A study of employee satisfaction in professional couriers in
Coimbatore city.[10]
By: A. Sukumar, 2007.
This study is to understand the satisfaction of the pickup and delivery
staffs in the professional
courier. The study is useful to the professional courier management to
know the level of
satisfaction and needs of the employees. The study consists of both
primary and secondary data.
The simple percentage analysis is used for calculating the percentage
of satisfaction level in the
total respondents. Chi-square test is applied to test the goodness of fit,
to verify the distribution
of observed data with assumed theoretical distribution. The study
indicates that there is a
significant relationship between the marital status and the level of
satisfaction, whereas in case of
age, gender, experience there is not significant relationship with job
satisfaction.
viii) The Impact of Reward and Recognition Programs on
Employee’s Motivation
and Satisfaction a Co-relational Study[[11]
By: Reena Ali and M.Shakil Ahmed, 2008.
This study highlighted “the impact of reward and recognition programs
on employee’s
motivation and satisfaction” . The study was conducted from October
till December; 2008
the Sample chosen for the study is 80 employees of UNILEVER
companies. The factors
affecting satisfaction were identified; payment, promotion, working
condition, personal as
Analysis showed immense support for positive relationship between
reward and employee
9
satisfaction. All these results are statistically significant thus providing
rigor and generalizability
in research. This exploratory study suggests for the positive
relationship between reward and
satisfaction.
ix) Leadership style and employee's job satisfaction in
international tourist hotels[12]
By: Chien-Wen Tsai, 2008.
International tourist hotels play important roles in the service industry
and have to constantly
improve their competitiveness. They need to provide their customers
with consistently high
service quality in order to satisfy them. The employees of the
international tourist hotels are the
most important links in the service delivery chain because they are in
direct contact with their
customers. Because employee morale affects customer satisfaction the
managers of the
international tourist hotels need to cultivate good relations with their
internal staff. Prior research
identifies many factors affecting the satisfaction of employees. While
relevant literature
extensively investigates job satisfaction and leadership behavior,
studies of these variables in the
tourism service, particularly in hotel management, are almost absent.
This research concerns the
correlation between the style of managerial leadership and employee's
job satisfaction in the
international tourist hotel industry. After literature reviewing, empirical
model and hypotheses
are established. The study employs the questionnaires to conduct an
investigation for employees
in international tourist hotels so as to collect information. This research
surveys 500 employees
in international tourist hotels by questionnaire. A total of 300
questionnaires were returned (73
percent). TMARKETINGough correlation analysis, this research
discovers that employees are more satisfied
under consideration-style-leadership than construction-style-
leadership. After controlling for
differences in salary, employees appear to prefer consideration-style-
leadership. No matter what
the leadership style is, employees’ job satisfaction does not relate
towards their coworkers.
Besides, employees have different perceptions on work, salary, and
overall satisfaction
depending on their education level and seniority. The findings in this
research expand the
knowledge of human resource management and provide some
practical suggestions to managers.
The study provides a mechanism by which hoteliers can obtain
feedback from employees about
leadership styles. Such feedback can then serve as the basis for
further development of
leadership theory across disciplines. This study provides a guide to the
preparation of supervisor
in the hotel industry as effective leaders for the dynamic environment
of the future. This study
also provides a basis for informing developers of leadership training
programs that can lead to
improved hospitality academic leadership.
10
x) Exploring ‘Employee Satisfaction’ As A Quality And
Productivity Enhancement
Tool For IT Sector of Pakistan[13]
By: Hina SoMARKETINGab Kiani, Omama Khurshid, 2008.
This research addresses the factors concerning ‘Employee Satisfaction’
that impact quality of
work done and productivity in software organization in Pakistan. The
research reveals employee
satisfaction as an integral factor for organizations in Pakistan for
obtaining competitive
advantages in terms of both quality and productivity. This research
focuses on the factors that
cause employee satisfaction or dissatisfaction. Initially factors affecting
employee satisfaction
were identified from the literature review. After this the relationship of
employee satisfaction
with quality and productivity was analyzed for organizations in
Pakistan. A questionnaire was
used in order to collect necessary data. This questionnaire highlighted
the factors that are source
of satisfaction or dissatisfaction. The impact of employee satisfaction in
software industry of
Pakistan is relatively less known but plays significant role. This paper
analyzes the major causes
of employee satisfaction and the impact of employee satisfaction on
quality and productivity
dimensions in the software organizations in Pakistan. Much of the
literature reveals that factors
like for instance pay, career growth, encouragement, feedback, job
interest and work
environment influence employee satisfaction directly and therefore
affect quality and
productivity in one way or another. This paper argues that
management in Pakistan’s IT
organizations should focus on factors affecting the employee
satisfaction and manage workforce
accordingly.
xi) A Comparative Study For Employee Job Satisfaction In Aydin
Municipality
And Nazilli Municipality.[14]
By: Assist. Prof. Dr. Hulusi Dogan, 2009.
This study was composed of a conceptual analysis of job satisfaction
and an empirical research
for the relationships between job satisfaction and a set of variables;
pay, promotion, positive
affectivity/encouragement, job involvement, potential of rest-day/off-
day, relations with coworkers,
health facilities, relations with supervisor, training and education
facilities, autonomy,
physical facilities, reconciliation role of supervisor, procedural justice,
tangible aids, office tools,
level of role clearness, participation in decisions, management style of
supervisor. The results,
based on a sample of 220 employees from Aydın Municipality and
Nazilli Municipality,
indicated that 59% of the variance in job satisfaction was explained by
the variables included in
the regression test. The variable of management/democratic style of
supervisor had the greatest
11
effect on job satisfaction, followed by the variables of “level of role
clearness”, “health
facilities”, “autonomy”, “and participation in decision”, “job
involvement”, and “training and
educational facilities”. The study found that satisfaction level for
“tangible aids” and “potential
of rest-day” was significantly higher for employees working in Aydin
Municipality than those
working in Nazilli Municipality. But, satisfaction level for “health
facilities”, “physical
facilities” and “relations with supervisor” was significantly higher for
employees working in
Nazilli Municipality than those working in Aydin Municipality. So, it is
suggested that managers
should apply additional/further researches in their organizations to
investigate the underpinning
variables of job satisfaction and commitment of employees.
xii) A Study of Job Stress on Job Satisfaction among University
Staff in Malaysia:
Empirical Study.[15]
By: Nilufar Ahsan, Zaini Abdullah, David Yong Gun Fie, Syed Shah
Alam, 2009.
This article investigates the relationship between job stress and job
satisfaction. The
determinants of job stress that have been examined under this study
include, management role,
relationship with others, workload pressure, homework interface, role
ambiguity, and
performance pressure. The sample consists of a public university
academician from Klang
Valley area in Malaysia. The results show there is a significant
relationship between four of the
constructs tested. The results also show that there is significant
negative relationship between job
stress and job satisfaction.
12
CHAPTER - II
2. A) INDUSTRY PROFILE
(The Indian Chemical Industry)
13
2. A) THE INDIAN CHEMICAL INDUSTRY
2. A.i) History
The development of the Indian chemical industry can be traced to a
very modest production of
soap around 1890. From such a rudimentary start, certain milestones
were reached in the form of
town gas production for the cities of Bombay and Calcutta, a drug
manufacturing unit in 1890s,
and later, a nitric acid concentration unit in 1904 for use in explosives.
this was followed, after a
relative lull between the two world wars, by a diversification into
inorganic fertilizers by 1940,
the first unit being a 25 TPD ammonia plant based on wood
gasification, synthetic dyestuffs and
intermediated from 1940 onwards and pharmaceuticals by
1947.Refineries and units for
pesticides and textile auxiliaries were set up by 1955, man-made fibers
by 1962 and
petrochemicals by the mid 1960's.
The growth of the chemical industry has been particularly rapid from
the mid 1960's in the wake
of various oil and gas finds in quick succession, particularly in the
offshore oil fields such as
Bombay high, Bassein, Ratnagiri in the Arabian Sea, and the Krishna-
Godavari basin in the Bay
of Bengal. As a consequence, the share of the chemical industry in the
nation's gross industrial
output has gone up from about 8% in 1970-1971 to around 50% by
2000.
The growth continues today and these figures are likely to increase
further in years to come. The
growth rate of chemicals will increase from 9% in 2001 to about 15%
by 2010, and the chemical
exports share of India's total exports will undoubtedly grow higher
from the current low 10%,
even though India has recently turned from a net exporter to a net
importer, thanks to the rapid
growth of specialty and knowledge chemicals, particularly
pharmaceuticals.
Today the chemical industry is a significant component of the Indian
economy with revenues at
approximately USD 28 billion. It constitutes 6.7 per cent of Indian's
GDP and 10 per cent of total
export. The industry has changed over time to match the dynamic
needs of the rapidly
developing nation. The industry has evolved from being a producer of
Basic chemicals in a
highly regulated environment to becoming a mature industry, free to
choose its product portfolio
in an open economy.
The Indian industry has emerged from a protected environment where
it was largely a supplier to
the domestic market. Hence manufacturing plants, built to meet this
local demand, were small
when compared to global scales and did not necessarily employ state-
of-the-art technology. In
many cases, the industry operated with assured margins, protected
against the emergence of
14
competition from within India tMARKETINGough licensing, or from
across borders tMARKETINGough high import
tariffs. Today, these legacy plants make the Indian chemical industry
uncompetitive.
Source: KPMGCHEMTECH Report on Indian Chemical Industry, 2003.
2. A.ii) Overview and Current Scenario of Indian
Chemical Industry
The chemical industry is one of the oldest domestic industries in India,
contributing significantly
to both the industrial and economic growth of the country since it
achieved independence in
1947. The chemical industry currently produces nearly 70,000
commercial products, ranging
from cosmetics and toiletries, to plastics and pesticides.
The Indian Chemical Industry forms the backbone of the industrial and
agricultural development
of India and provides building blocks for downstream industries. It is
highly science based and
provides valuable chemicals for various end products such as textiles,
paper, paints and
varnishes, leather etc., which are required in almost all walks of life.
15
Chemical Industry is an important constituent of the Indian economy.
Its size is estimated at
around US$ 35 billion approx., which is equivalent to about 3% of
India's GDP. The total
investment in Indian Chemical Sector is approx. US$ 60 billion and
total employment generated
is about 1 million. The Indian Chemical sector accounts for 13-14% of
total exports and 8-9% of
total imports of the country. In terms of volume, it is 12th largest in the
world and 3rd largest in
Asia. Currently, per capita consumption of products of chemical
industry in India is about 1/10th
of the world average. Over the last decade, the Indian Chemical
industry has evolved from being
a basic chemical producer to becoming an innovative industry. With
investments in R&D, the
industry is registering significant growth in the knowledge sector
comprising of specialty
chemicals, fine chemicals and pharmaceuticals.
The Indian Chemical Market Segment wise is as under:
Segment Market Value (billion US $)
Basic Chemicals 20
Specialty Chemicals 9
High End / Knowledge Segment 6
Total 35
Table 1: Classification of Indian Chemical Industry and market value of each
segment.
Source: Department of Chemicals and Petrochemicals (Govt. of India)
2. A.ii.a) Market size:
Indian Chemical Industry (size: US$ 35 billion)
Figure 2: Size of Indian Chemical Industry
Source: Department of Chemicals and Petrochemicals (Govt. Of India)
16
Figure 3: Classification of Indian chemical Industry and constituent of each segment.
2. A.ii.b) State wise share in production of major
chemicals:
Gujarat 53%
Maharashtra 9%
Madhya Pradesh 5%
Uttar Pradesh 6%
Tamil Nadu 6%
Punjab 4%
Others 17%
Total 100%
Figure 4: State wise share in Indian Chemical Industry.
Source: Department of chemicals and petrochemicals (Govt. of India)
2. A.ii.c) Ownership Pattern:
The ownership pattern of the chemical companies was inclined largely
towards the private
limited category that account for 69% of the total sample. It is followed
by 11% of partnership
firms indicating the huge gap between the largest and the second
largest category in the sample.
However, public limited entities account for 10% while 8% are
proprietary concerns.
• 53% of the private limited companies deal in organic chemicals, 9%
deal in specialty
chemicals while 15% are involved in inorganic chemicals.
• 58% of the public limited companies deal in organic chemicals.
• 77% companies from the sample are established before 1990 while
21% are established
after 1990.
17
Figure 5: Ownership pattern in Indian Chemical Industry.
Source: D&B Report on Indian Chemical Industry.
2. A.ii.d) Sub segment:
Manufacturing of organic chemicals seems to be the most popular sub
segment with around 34%
of the sample companies involved in manufacturing of organic
products. It is followed by 14%
of the sample companies involved in the production of inorganic
chemicals, 12% in specialty
chemicals and 5% in dyes and dyes and dye stuffs. 35% of the
companies dealing in other
chemical sub segments that comprise of industrial gases, solvents etc
display the high demand of
products in this segment. 16% of the companies dealing in organic
chemical s generate 100% of
their revenue exclusively tMARKETINGough the domestic market.
Figure 6: Share of chemicals sub segments in Indian Chemical Industry.
2. A.ii.e) Nature of operations:
i) 79% of the companies are engaged exclusively in manufacturing,
while 21% are engaged
in manufacturing as well trading. 58% of the manufacturing companies
have single
manufacturing facility while 42% operate with two or more plants. 31%
of the companies
18
involved exclusively in manufacturing activity have invested up to Rs
50 mn in plant and
machinery.
ii) 18% of the companies utilize 100% of their installed plant capacity
while 42% utilize
between 70 - 99% of the installed capacity.
iii) More than 75% of the companies involved exclusively in
manufacturing activities
operate at more than 50% of the capacity utilization.
iv) 9% of the companies have their manufacturing facility situated in
the heart of Mumbai
city while 25% have their plants in the vicinity of Mumbai such as
Dombivli, Kalyan,
Ambernath and Badlapur area.
v) 2% have their plants in the Navi Mumbai while 15% have their plants
in Tarapur and
Boisar.
vi) 33% of the total sample companies showed more than 33% revenue
growth in the last
two years. 60% of the private companies accounted for the majority of
revenue growth
displaying more than 33% in the last two years.
Figure 7: Nature of Operations in Indian chemical Industry.
2. A.ii.f) Sector Highlights:
i) Fine & Specialty Chemicals
70% of the Fine Chemicals produced in India find their way into the
Pharmaceutical and Agrochemical sectors. Performance chemicals
geared to
customer need are being developed locally particularly since there is
growing
demand for Specialty chemicals like Sunscreens, Antioxidants,
Biocides, etc.
Manufacturers of Fine Chemicals and specialties have major strengths
in basic research facilities
available with CSIR laboratories such as NCL, IICT & RRls as also
corporate R & D centers.
This ensures that development of process know-how; plant process
design and engineers,
detailed engineering design, commissioning assistance and even
consultancy for re-engineering
are available at low cost.
19
ii) Basic Inorganic and Organic Chemical Industry
The Basic inorganic chemical and organic chemical industry constitutes
a major
segment of the country's economy.
These are raw materials for industries like detergents, toothpaste,
plastics, drugs,
refining, etc. 10% of the Chlor-Caustic Plants use Membrane Cell
Technology
which will find higher usage, as no new capacities are allowed for the
mercury cell process.
iii) Drugs & Pharmaceuticals
The Indian Pharmaceutical Industry is the largest in the developing
world.
The industry currently produces a wide range of bulk drugs. In fact,
India is
currently a world leader in manufacture and export of basic drugs such
as
ethambutol and ibuprofe.
300 bulk drugs & formulation based on them are manufactured in the
country. There are
10,000 manufacturing units, of which 290 units are in the large-scale
sector, 45 Multi-
National Companies (MNCs) have manufacturing bases here.
India is emerging as one of the largest and cheapest producers of
pharmaceuticals in the
world, accounting for nearly 8.5% of the world's drug requirements in
terms of volume, and
ranks amongst the top 15 drug manufacturing countries in the world.
India being a signatory
to the GATT accord, (and the TRIPs agreement therein) patent
protection will be provided
under the treaty obligations.
iv) Fertilizers
The Indian fertilizer industry has emerged as the fourth largest
producer of
fertilizers in the world after China, USA, Russia. Nitrogenous and
phosphatic
fertilizers are produced indigenously, while requests for potassic
fertilizers are
met tMARKETINGough imports.
India has achieved near self-sufficiency in inputs for the production of
nitrogenous fertilizers,
but for the production of phosphatic fertilizers, the country continues
to rely on imports of raw
materials (rock phosphate and sulphur and for intermediates such as
phosphoric acid).
v) Petrochemicals
The petrochemical industry of India is less than 40 years old. The
sector has a
significant growth potential. Although the current per capita
consumption of
petrochemicals products is low, demand for the same is growing 10%
during
the Sixth Plan, 13.2% during the Seventh Plan, 25% expected during
the Eight
Plan.
20
vi) Dyes & Pigments
There are about 50 units in the organized sector and about 900 units in
the small
scale sector. The Installed Capacity:
37,000 MTA Organized Sector. 10,000 MTA Small Scale Sector
Nearly 80% of the dyes manufactured are utilized by the textile
industry,
with the balance going to into paints, printing inks, rubber & leather.
vii) Pesticides & Agrochemicals
India is currently the largest manufacturer of Pesticides in Asia. The
pesticides
demand from the agriculture sector is expected to go up to 97,000
tonnes by
year 2000. More than 60 grade tehnical chemicals are maufactured
indigenously.
Some 125 units are engaged in the manufacture of the above and over
500 units are making
pesticide formulations.
In agrochemical, India manufacture significant quantities of synthetic
pyretMARKETINGoids, such as
fenvalerate and cypermetMARKETINGin, endosulphane, and
organophosphate range of agrochemicals,
including monocrotophos. India is also a dominant producer of
isoproturon, a weedicide
accounting for nearly 25% of the world-wide production.
2. A.iii) Characteristics of Indian Chemical Industry:
Figure 8: Characteristics of Indian Chemical Industry.
21
The global chemical` industry, estimated at US$ 2.4 trillion, is one of
the fastest growing sectors
of the manufacturing industry. Despite the challenges of escalating
crude oil prices and
demanding international environmental protection standards now
adopted globally, the
chemicals industry has still grown at a rate higher than the overall-
manufacturing segment.
As per industry reports the pharmaceutical segment contributes
approximately 26% of the total
industry output and approx. 35-40% is dominated by the
petrochemical segment. Commodity
chemicals is the largest segment in the chemicals market with an
approx. size of $ 750 billion
while the specialty and fine chemicals segment accounts for $ 500
billion.
Some of the major markets for chemicals are North America, Western
Europe, Japan and
emerging economies in Asia and Latin America. The US consumes
approximately one-fifth of
the global chemical consumption whereas Europe is the largest
consumer with approx. half the
consumption. The US is the largest consumer of commodity chemicals
whereas Asia Pacific is
the largest consumer of agrochemicals and fertilizers
World wide Chemical market share:
Figure 9: World wide chemical market share.
Source: KPMGCHEMTECH Report on Indian Chemical Industry.
22
2. A.v) Growth of Indian Chemical Industry
The Indian Chemical Industry forms the backbone of the industrial and
agricultural development
of India and provides building blocks for several downstream
industries. According to the
Department of Chemicals and Petrochemicals, the Indian chemical
industry is estimated to be
worth approximately US$ 35 bn, which is about 3% of India’s total GDP.
The total investment in
the Indian chemical industry is approximately US$ 60 bn and total
employment generated was
about 1 mn. In terms of volume, it is 12th largest in the world and 3rd
largest in Asia.
Exports of chemicals from India have increased significantly and
account for about 14% of total
exports and 9% of total imports of the country. The Indian chemical
industry comprises both
small and large-scale units. Fiscal concessions granted to the small
sector in the mid-eighties led
to the establishment of a large number of units in the Small Scale
Industries (SSI) sector.
The major sub segments of this industry include alkali, organic
chemicals, inorganic chemicals,
pesticides, dyes & dyestuffs and specialty chemicals. The Indian
chemical industry deals in
products like fertilizers, bromine compounds, catalyst, sodium and
sodium compounds, dye
intermediates, inks and resins, phosphorous, paint chemicals, coatings,
isobutyl, zinc sulphate,
zinc chloride, water treatment chemicals, organic surfactants, pigment
dispersions, industrial
aerosols and many more.
The commodity chemicals are the largest segment in the chemical
market. Some of the major
markets for chemicals are North America, Western Europe, Japan and
emerging economies in
Asia and Latin America. The Indian chemical industry is matured and is
in the midst of a major
restructuring and consolidation phase. Globalization has opened the
doors for this sector to
capture a major part of the global market pie.
The sector has experienced many reforms in India and is expected to
grow at 15% p.a. in the
near future. The investment in R&D will also play a vital role in this
sector. In a nutshell, the
Indian chemical industry has a large potential to grow in domestic as
well as in export markets.
In the current market conditions, with an appreciating rupee, pricing
will be a crucial factor
while competing with other exporting countries.
The chemical industry which includes, as per National Industrial
Classification, basic chemicals
and its products, petrochemicals, fertilizers, paints and varnishes,
gases, soaps, perfumes and
toiletries and pharmaceuticals is one of the most diversified of all
industrial sectors covering
thousands of commercial products. Its contribution to the GDP of the
country is around 3 per
cent.
23
2. A.v.a) Index of Industrial Production:
Based on IIP data released by MOSPI on 9th April, 09, the following
important points are
noteworthy:
i) The growth of IIP stands at 2.8% for the period April-Feb, 2009 and (-)
1.2% for the
month of February 09 over the corresponding periods of the previous
year.
ii) Out of 17 industry groups, 8 industry groups including ‘Basic
Chemicals and Chemical
Products’ have registered positive growth in the month of February 09
compared to the
corresponding month of the previous year. The growth in ‘Basic
Chemicals and Chemical
Products’ during April, 08- February 09 was 2.4% and 2.2% in the
month of February,
2009.In contrast, manufacturing sector as a whole registered negative
growth at 1.4% in
February 2009. The behaviour of IIP during 2002-03 to 2008-09 has
been depicted in the
following figure 10.
Figure 10: Index of Industrial Production (IIP).
Source: Ministry of Statistics and Program Implementation, Annual Report 2008-2009.
iii) Basic chemicals and chemical products account for 14% in overall
Index of Industrial
production (IIP). The trends in indices of IIP vis-à-vis ‘Basic chemicals
and Chemical
products’ during 2002-08 are exhibited in Table–2.
24
Years IIP
(Overall)
Manufacturing Basic chemicals and chemical products
including in manufacturing
2002-03 176.6 183.1 191.8
2003-04 189 196.6 208.4
2004-05 204.8 214.6 238.6
2005-06 221.5 234.2 258.5
2006-07 247.1 263.5 283.4
2007-08 268 287.2 313.4
2008-09 (upto Feb,09) 272 291.5 321.6
Growth (%) (07-08/02-03) 8.7 9.42 10.32
Table 2: Index of Industrial Production (1993-94 =100)
Source: Ministry of Statistics and Program Implementation, Annual Report 2008-2009.
iv) The compound annual growth rate of (CARG) of the ‘Basic chemicals
and Chemical
products’ was higher at 10.32% against 9.42% in manufacturing sector
and 8.70% in the
overall industrial production during 2007-08 over 2002-03. During April
2008–Feb 2009,
‘Basic 6 chemicals & Chemical products’ index was higher at 321.6
compared to 291.5
for manufacturing and 272.0 for overall industrial production index. 2.4
Prices of
chemicals and chemical products increased by 5.5% as against 4.9% in
manufacturing
sector and 4.6% in respect of ‘All commodities registered during the
year 2007-08 over
2006-07.
2. A.v.b) Industrial Investment Trends in Chemicals:
i) The total investment in chemicals (excluding fertilizers) was of the
order of 4.45 lakh
crore out of total industrial investment of 44.03 lakh crore from August
1991 to July 08.
Parameter Chemicals (Except Fertilizers) Others Total
Total Investment (Rs.Cr.) 444830 3957956 4402786
%age to Total 30.3 89.9 100
Numbers of IEMs Filed 9116 64829 74945
%age to Total 12.16 87.84 100
Proposed Investment (Rs.Cr.) 408279 3864523 4272802
%age to Total 9.56 90.44 100
Proposed Employment (Nos) 1229807 14621421 15851228
%age to Total 7.76 92.24 100
Table 3: Industrial Investments under Chemicals (August 1991- July 2008)
Source: Ministry of Chemicals and Fertilizers, Annual Report on Indian Chemical
Industry, 2008-2009
2. A.v.c) International Trade in Chemicals &
Petrochemicals:
i) Exports and imports of Chemicals and Petrochemicals during 2002-
03 to 2008-09 (up to
Feb., 09) have shown upward trends, as exhibited in the following
figures.
25
Figure 11: Exports of Chemicals and Petrochemicals during 2002- 03 to 2008-09.
Industry, 2008-2009
Figure 12: Imports of Chemicals and Petrochemicals during 2002- 03 to 2008-09.
Industry, 2008-2009
ii) The growth in exports of chemicals and petrochemicals during April,
08- Feb, 09 was
23.81% over the corresponding period of last year which is quite
impressive, given the
overall global economic slowdown and depreciation of rupee vis-à-vis
US dollar.
However, the growth in imports during the corresponding period was
higher at 40.07%.
iii) The share of imports of Chemical and Petrochemicals in the total
national imports ebbed
from 9.0% to 6.7% during the period 2002-03 to 2008- 09 (Feb, 09)
whereas the share of
exports declined marginally from 11.2% to 10.9% during the
corresponding period.
Exports and Imports–Chemicals and Petrochemicals. (Figures in
Rs. Crore)
Items/years 2002-
03
2003-
04
2004-
05
2005-
06
2006-
07
2007-
08
2008-09
(upto Feb,09)
CARG
*(%)
A: Total National
Exports
25513
7
293367 37534
0
45641
8
57177
9
65586
4
705232 20.78
a) Chemicals 17397 20679 25574 33462 39351 43482 64796 20.11
b) Petrochemicals 11186 13444 17492 17268 21801 22199 12338 14.69
26
c) Sub-Total (a+b) 28583 34123 43066 50730 61152 65681 77134 18.1
d) Share of Chemicals &
Petrochemicals in Total
Exports (%)
11.2 11.6 11.5 11.1 10.7 10 10.9
B: Total National
Imports
29720
6
35910
8
50106
5
66040
9
84050
6
101231
2
1223213 27.78
a) Chemicals 20190 25258 32838 40492 47914 54422 66169 21.93
b) Petrochemicals 6674 7865 10018 14141 16339 18677 15895 22.85
c) Sub-Total (a+b) 26864 33123 42856 54633 64253 73099 82064 22.17
d) Share of Chemicals &
Petrochemicals in Total
Imports (%)
9 9.2 8.6 8.3 7.6 7.2 6.7
*Compound Annual Rate of Growth (2007-08 over 2002-2003)
Table 3: Exports and Imports–Chemicals and Petrochemicals.
Industry, 2008-2009
2. A.v.d) Production of Selected Major Chemicals
(2002-03 to 2008-09):
i) The Dyestuff sector is one of the important segments of the chemical
industry in India,
having forward and backward linkages with a variety of sectors like
textiles, leather,
paper, plastics, printing inks and foodstuffs. The textile industry
accounts for the largest
consumption of dyestuffs at nearly 70 percent. From being importers
and distributors in
the 1950s, it has now emerged as a very strong industry and a major
foreign exchange
earner. India has emerged as a global supplier of dyestuffs and dye
intermediates,
particularly for reactive, acid, vat and direct dyes. India accounts for
approximately 7
percent of the world production.
ii) Chemical fertilizers and pesticides played an important role in the
‘Green Revolution’
during the 1960s and 1970. Indian exports of agrochemicals have
shown an impressive
growth over the last five years. The key export destination markets are
USA, U.K.,
France, Netherlands, Belgium, Spain, South Africa, Bangladesh,
Malaysia and
Singapore. India is one of the most dynamic generic pesticide
manufacturers in the world
with more than 60 technical grade pesticides being manufactured
indigenously by 125
producers consisting of large and medium scale enterprises (including
about 10
multinational companies) and more than 500 pesticide formulators
spread over the
country.
iii) Basic chemicals undergo several processing stages to be converted
into downstream
chemicals. These are used by the agriculture sector and industry,
besides direct use by the
consumers. Agriculture and industrial usages of chemicals include
auxiliary materials
such as adhesives, unprocessed plastics, dyes and fertilizers, while
direct usage by the
consumers include pharmaceuticals, cosmetics, household products,
paints etc.
27
The production of major basic chemicals during 2002-03 to 2008-09 is
exhibited in table-4 and
figure-13.
Table 4: Production of Selected Major Chemicals (2002-03 to 2008-09) (In 000’ MT)
Industry, 2008-2009.
The production of major chemicals has been exhibited in the following
figure
Figure 13: Production of Selected Major Chemicals.
Industry, 2008-2009
28
2. A.vi) Future plans
82% chemical companies have envisaged strategies for future growth.
The plans range from
capacity expansion, modernization to new market entry and
diversification.
• Companies operating in organic chemicals are keen for capacity
expansion and
diversification
• Of the companies interested in capacity expansion, 80% belong to
the private limited
category
• Of the companies interested in diversification, 65% are private
limited companies
Figure 14: Future Plans of Indian chemical Industry.
2. A.vii) Chemical Weapons Convention
Chemical Weapons Convention (CWC) is a universal nondiscriminatory,
multilateral,
disarmament treaty, which bans the development, production,
acquisition, transfer, use and
stockpile of all chemical weapons. India is an original signatory to this
Convention as also an
important Member State with a fairly well developed chemical industry.
As on 22.04.2009, 188
countries have signed and notified the Convention.
To be able to discharge the obligations under the Convention, each
country is required to have a
domestic legislation, which makes the filing of correct information with
the Organization for
Prohibition of Chemical Weapons (OPCW – the international body based
at the Hague, the
Netherlands), which is responsible for implementation of CWC on
various activities in respect of
chemicals relevant to the Convention, mandatory. The Chemical
Weapons Convention Act 2000,
which gives force of law to the provisions of the CWC, is in force in the
country w.e.f. 1st July
2005. Department of C&PC is the administrative department for this
Act.
Each State Party to the Convention is required to make annual
declarations of the production,
import and export of scheduled chemicals and their production
facilities. Also, declarations in
29
respect of a relatively large number of plant sites classified as Other
Chemical Production
Facilities (also called OCPF), whose facilities can be potentially used for
producing chemical
weapons, are required to be made. The Department has been regularly
submitting such
declarations covering the chemical industry. Inspections are routinely
conducted by the OPCW
to ensure that the activities in scheduled chemicals are in accordance
with the provisions of the
Convention. India has so far received sixty four (64) inspections, of
which 17 were hosted during
2008. The Department of C&PC deputes escort officers to the industrial
units for facilitating
advance preparation for hosting inspections as also for its smooth
execution.
2. A.viii) Facts or milestones of Indian Chemical
Industry
Chemical industry is one of the oldest industries in India. It not only
plays a crucial role in
meeting the daily needs of the common man, but also contributes
significantly towards industrial
and economic growth of the nation. The industry, including petro-
chemicals, and alcohol-based
chemicals, has grown at a pace outperforming the overall growth of
the industry.
i) Over $35 billion industry in 2006-07 - constitutes about 3% of GDP;
17.6% of
manufacturing sector - a significant component of the Indian economy.
ii) India is the 12th largest producer of chemicals in the world.
iii) Manufactures more than 70,000 products.
iv) Exports of over $17 billion in 2006-07 (14% of total exports from
India)
v) However, India constitutes a relatively small portion of the global
market 1.9% of global
sales and 1.5% of international trade.
vi) The global chemical market is estimated at approximately USD 1.7
trillion. Western
Europe is the largest chemical-producing region followed by North
America and Asia.
vii)The Indian Chemical Industry ranks 12th by volume in the world
production of
chemicals. The industry’s current turnover is about USD 30.8 billion
which is 14% of the
total manufacturing output of the country.
viii)The export of chemicals in the year 2002 was USD 5.875 billion,
which forms almost 0.9
% of the world export of chemical products and about 13% of the
country’s total export.
Substantial proportion of these exports goes to the USA, Europe and
other developed
nations. Its contribution to the national revenue by way of custom and
excise
30
duties is about 20%. India is strong in basic chemicals that go into
production of
consumer items like paints, dyes, soaps, medicines, toiletries,
cosmetics, etc.
ix) In terms of consumption, the chemical industry is its own largest
customer and accounts
for approximately 33 per cent of the consumption. In most cases, basic
chemicals
undergo several processing stages to be converted into downstream
chemicals. These in
turn are used for industrial applications, agriculture, or directly for
consumer markets.
Industrial and agricultural uses of chemicals include auxiliary materials
such as
adhesives, unprocessed plastics, dyes and fertilizers, while uses within
the consumer
sector include pharmaceuticals, cosmetics, household products, paints,
etc.
x) India also produces a large number of fine and specialty chemicals,
which have very
specific uses and are essential for increasing industrial production.
These find wide usage
as food additives, pigments, polymer additives, anti-oxidants in the
rubber industry, etc.
Some of the important manufacturers of specialty chemicals include
NOCIL, Bayer
(India), ICI (India), Hico Products and Colourchem.
xi) The Dyestuff sector is one of the important segments of the
chemicals industry in India,
having forward and backward linkages with a variety of sectors like
textiles, leather,
paper, plastics, printing ink and foodstuffs. The textile industry
accounts for the largest
consumption of dyestuffs at nearly 80%. From being importers and
distributors in the
1950’s, it has now emerged as a very strong industry and a major
foreign exchange
earner. India has emerged as a global supplier of dyestuff and dyes
intermediates,
particularly for reactive, acid, vat and direct dyes. As for a global
production of dyes is
concerned, India accounts for 6% of the world production.
xii)Chemical fertilizers and pesticides played an important role in the
"Green Revolution"
during the 1960s and 1970s. The consumption of pesticides in India is
low in comparison
to other countries. Indian exports of agrochemicals have shown an
impressive growth
over the last five years.
xiii)The key export destination markets are USA, UK, France,
Netherlands, Belgium, Spain,
South Africa, Bangladesh, Malaysia and Singapore.
xiv)The Government is promoting research on the use of alternative
and unharmful
pesticides using neem seeds. A country programme entitled
"Development and
Production of Neem Products as Environment Friendly Pesticides" is
being undertaken
31
by the Department of Chemicals & Petrochemicals with the financial
assistance of United
Nations Development Programme (UNDP)/ United Nations Industrial
Development
Organization (UNIDO). The project is being implemented at two
locations viz., Nimpith
in West Bengal and Nagpur in Maharashtra to promote production,
processing and use of
neem-based products, thereby aiding wasteland development,
generating rural
employment and providing farmers with eco-friendly/bio-degradable
pesticides.
2. A.ix) Major Players, Their Market Share and
Position of PCCPL in
Indian Chemical Industry .
Company Market Cap. Rs. (cr)
United Phos 7,076.97
Tata Chemicals 5,391.26
Pidilite Ltd 3,016.56
Guj Gas 2,014.81
Guj Flourochem 1,521.97
Boc India 1,382.03
Himadri Chem 1,067.02
Guj Alkali 787.61
BASF 750.84
Solar Ind 538.51
Punjab Chemical 97.08
Table 5: Major players and their market share.
Source:
http://www.moneycontrol.com/india/stockpricequote/chemicals/punjabchemicalscrop-
protection/PCC03
➢ PCCPL’s Indian infrastructure is more inclined towards fungicides &
herbicides which
supports the company’s long-term retail forward integration strategy &
growth plan.
➢ Since insecticides are the largest segment in India, it is more
competitive while
herbicides & fungicides is less competitive being a new (niche
product).
➢ Overseas also the growth potential is immense. Example in
developed countries:
environmentally friendly herbicides are preferred (account for nearly
65% of the market
share) while use of insecticides is declining (barely 20%). Share of
fungicides is fast
growing and is estimated to be about 15% of the market.
32
Figure 15: Relative Market Share and Positioning of PCCPL.
Source: PCCPL
2. A.x) Opportunity for Indian Chemical Industry
Chemicals sector is expected to grow at
over 15% p.a.
India requires large investments in
chemical plants.
2. A.x.a) Outlook:
i) Projected to grow to a US$70 billion industry by 2012
ii) Growth rate of over 15% p.a. projected over the next 5 years
iii) Share of the global industry could increase from 1.9% (2007) to
2.6% (2012)
iv) India is expected to be the third largest polymer consumer by 2010
33
2. A.x.b) Potential:
i) Large and growing domestic market potential due to low per capita
consumption of key
petrochemical derivatives
ii) 5 kg. against global average of 25 kg. for plastics
iii) 4 kg. against global average of 23 kg. for polymers
iv) Good R&D base with access to low-cost, high-quality human
resources
v) Proven capability for chemical process development
vi) Major raw materials are available within the country or readily
importable
vii)SEZs have no import tariffs and provide income tax concessions
viii)PCPIRs with a refinery/ petrochemical feedstock company as an
anchor tenant would be
suitable locations for domestic and export led production in petroleum,
chemicals &
petrochemicals
ix) Strategic location: In the heart of the high-growth markets of India,
Asia and the Middle
East
x) Major opportunities lie in all segments: Basic, Specialty and
Knowledge Chemicals
xi) A strong global presence in the export of dyes, pharmaceuticals and
agrochemicals
xii) Investment opportunity of over US$75 billion in the next 10 years
2. A.xi) SWOT Analysis of Indian Chemical Industry
2. A.xi.a) Strengths:
•
• A diversified manufacturing base
• Vibrant downstream industries in different segments.
• Competitive core industries.
• Capability to produce world-class end products.
• Strong presence in some export market segments.
• Large domestic market.
• Raw material component sources within the country.
• Good R&D base and quality human resources
34
2. A.xi.b) Weakness:
•
• Very high cost and poor quality of power.
• Chemical industry is highly capital-intensive, cost of finance in India
is very high.
• Infrastructure facilities are not of world class.
• Legacy of Past policies of Industrialization
• Low Investment in R&D to be able to sell value added products and
compete in
developed countries is absent.
• Locational disadvantages, such as extra transport cost for raw
materials as well as
finished products.
• Plant sizes are not comparable to world scale operations.
• Multiple levies (various taxes and duties likes sales tax, turnover tax,
Octroi, service tax,
electricity duty and cross subsidies etc).
2. A.xi.c) Opportunities:
•
• Success stories in Dyes and Agro-chemicals have boosted the
confidence to take on
global competition squarely.
• The markets in the developed countries are opening up and India can
take advantage of
this.
• A large number of products are going off patent.
• With the knowledge available in the country, there is a tremendous
potential to grow and
increase exports in Dyestuff and Agrochemicals market.
• India has the capacity for major value addition, being close to Middle
East. This is a
relatively cheaper and abundant source for petrochemicals feedstock.
2. A.xi.d) TMARKETINGeats:
• Quantitative Restrictions for imports have
been removed already. Most of the
chemicals are now in the Open General
List (OGL) of import.
• Tariff levels in Indian for most chemicals
are significantly higher than in other
countries manufacturing the chemicals.
• Pressure on the government to reduce
these tariff levels.
• Unless industry acquires competitiveness,
it may face extinction
35
2. A.xii) Competitive Advantage of India
i) Large resource of scientific and technical manpower.
ii) Large domestic market for various sectors of chemicals.
iii) Long coast line and abundant availability of salt.
iv) Tropical region: facilitating open storage for bulk chemicals.
v) A developed financial market.
vi) A large English-speaking population
vii)Rapid growth in Information Technology provides competitive
access to the rich
European and American market.
2. A.xiii) Recommendations for Rejuvenation Of Indian
Chemical Industry
Both For Authorities & Industry
2. A.xiii.a) Infrastructure:
i) Government should promote world class infrastructure facilities like
Ports, Roads,
Storage facilities, Pipelines, etc.
ii) Mega Chemical Industrial Estates with built in infrastructure need to
be promoted at
selected locations.
iii) Existing chemical industrial estates need to be upgraded to global
standards based on
defined scope and time frame.
iv) Developing clusters of existing units in the form of “Chemical
Industry Parks”.
v) Knowledge and Technology.
vi) Collaboration between R&D laboratories and industrial units.
vii)To deal with handicaps in the Indian chemical industry provide
sector wise solutions.
2. A.xiii.b) Energy:
i) Access to natural gas.
ii) Industry needs to have Captive Power Plants.
iii) Duty Free import of power plant and machinery.
iv) Electricity so generated should be exempted from any duties and
taxes.
v) Chemical industry should be given priority in allocation of railway
wagons for coal.
36
2. A.xiii.c) Finance:
i) Cost of Capital should be brought down.
ii) Technology Upgrading funds need to be created in line with Textile
Industry.
iii) Small Scale Industries (SSI) limits should be extended to Rs.5 crores
from the present
level of Rs.1 crore.
iv) Disinvestments of Public Sector and acquisition by Private Sector
need to continue.
2. A.xiii.d) Duties and Taxes:
i) Customs Duty on capital goods and spares to be brought down to 0-
5%.
ii) Import Duty on Feedstock, Raw Materials, and Fuel Oil, Natural Gas,
etc. need to be
lowered to 5%
iii) The current level of tariffs for intermediates and chemical products
needs to be continued
iv) Until the above disadvantages are rectified, the country should not
enter into any further
Free Trade Agreements (FTAs).
2. A.xiii.e) Action by Industry:
i) Industry should improve their plants by debottlenecking and
expansions using
appropriate technology.
ii) Industry should build only economic size plants with best of
technology and Engineering
and which are environment friendly
iii) Industry needs to continuously find innovative ways of improving
customer value
proposition in marketing of its products.
iv) Supply Chain Management/ Business processes must inculcate the
best practices using
Information Technology and Automation.
v) Industry must continuously drive down costs.
vi) Industry should invest in projects overseas.
vii) India must accept Intellectual Property Rights.
viii)Restructuring and consolidating industry segments and expanding
markets by strategic
alliances.
37
2. B) Company Profile
38
2. B.i) History of the Company
PCCPL has a history of various ups and downs, but have always
remained focused on customers
changing requirement, growth area and market scenario.
Punjab Chemicals & Crop Protection's (PCPL) was incorporated in 1975
as a joint venture
between Excel Industries and Punjab State Industrial Development
Corporation. The company
began by producing oxalic acid and diethyl oxalate. It regularly
expanded capacities and soon
became a leading producer of both products. The company got a major
boost in the mid-1990s
when it launched a high-value export-oriented herbicide. It soon
became a major producer of this
product worldwide. It further diversified into pharmaceuticals when it
acquired DSM’s stake in
Alpha Drugs India (ADIL).
After going tMARKETINGough a rough patch during 2000-02, which
culminated in a loss of Rs 1.85 crore,
the company has bounced back successfully. Top line has grown at a
CAGR of 36% and net
profit has improved at a CAGR of 82% over last tMARKETINGee years.
It has managed this by introducing
new export oriented herbicides and expanding its product range in
chemicals by developing high
value intermediates mainly for the pharmaceutical sector. The
company’s product portfolio has
also become well diversified and now consists of agrochemicals,
industrial chemicals &
intermediates and pharmaceuticals.
➢ YEAR EVENTS 1975 - The Company was Incorporated on 19th
November. The
company's object is to manufacture of malathion and other agro-
chemicals and pesticides.
• The company entered into a technical and financial collaboration with
Excel
Industries Ltd. (Excel) for the manufacture of malathion technical.
Punjab State
Industrial Development Corporation (PSIDC) also subscribed to 26% of
the
equity capital of the Company.
• The Company applied to Govt. for registration for the manufacture of
600 tonnes
of Di-ethyl Oxalate (DEO).
• All shares taken up by promoters, directors, etc.
➢ 1976 - Issued 1,87,360 shares to PSIDC and 1,87,500 shares to
Excel Industries, Ltd.
3,75,000 shares then issued at par of which 7,500 shares reserved and
allotted to PSIDC.
The balance 3,67,500 shares offered to the public in February 1977.
➢ 1981 - Power connection for the oxalic acid unit was given in July
and the trial runs were
started. The Company planned to manufacture quinaphos technical in
the same existing
39
➢ malathion plant with some minor modifications. The Company also
received a letter of
intent for the manufacture of ethyle acetate (500 tonnes per annum).
The existing
facilities were used to produce Ibuprofen, a widely accepted drug in
the market, from
August 1986.
➢ 1984 - The name of the company was changed from Punjab United
Pesticides and
Chemicals Ltd., to its present one.
➢ 1987 - In June 1988, 1,87,500 shares were offered at par as rights in
prop. 1:4 (all were
taken up). Another 50,000 shares were offered to employees and
directors, but only
42,400 shares taken up. The balance 7,600 shares were allowed to
lapse.
➢ 1989 - Equipments required to enhance the production capacity at
the Derrabassi factory
were installed.
• 11,26,900 shares (including 1,47,000 shares as retention) were
offered as rights at
(prem. Rs.30 per share; prop. 1:1). In June - July 1989 of which
11,24,774 shares
were allotted. Allotment of another 138 shares to NRIs was pending.
Another
56,295 shares (including retention of 7,300 shares) were offered at a
prem. of
Rs.30 per share to employees and Indian working directors but only
49,000 shares
taken up. The balance 7,295 shares were allowed to lapse.
➢ 1990 - Manufacture of Sodium Nitrite from the waste Nox gases
coming out of oxalic
acid plant commenced. Also production of sodium oxalates and spray
dried silica from
the ash obtained after burning rice husk in the boilers, commenced.
Also SIA registration
was received to manufacture various oxalates with bi-product sodium
carborate.
2. B.ii) Profile o f the Company
Spread over 12 hectares of land, the flagship plant of PCCPL
manufacturing Crop Protection
products is situated at Chandigarh, about 250 kilometers from New
Delhi, the Indian capital. The
workforce strength numbers 428, all of them dedicated, trained and
skilled at their job of
manufacturing world class Crop Protection products. The company’s
shares are listed in
Mumbai, Delhi & Ludhiana stock exchanges.
PCCPL is one of the leading integrated agrochemical player with a
stronger presence across the
agro-chemical value chain i.e. intermediates, technical bulk, branded
formulation and wide
distribution network. Apart from Agro-chemicals, it has respectable
presence in Pharmaceutical
Intermediates, API's, Phosphorous Derivatives and Specialty Chemicals.
In the Agro chemical
40
space, PCCPL is proud to be the largest manufacturer and exporter of
oxalic acid and its
derivatives in the world. It exports technical bulk and formulations to
across 60 countries.
PCCPL has seven state-of-the-art manufacturing sites complying with
international standards,
strategically located in different parts of India—all ISO 14000 and ISO
9001 certified, and
commands support from its R&D strengths and unparalleled Pilot Plant
facilities.
The company's Export Division and International Sourcing Division
work in tandem to give
quality assistance to Indian as well as global customers. The customers
are spread over
five continents and in sixty countries.
PCCPL not only committed to supply quality products with international
standards, but also
continuously strive to meet the requirements in today's competitive
world, satisfying the needs of
every customer within India and around the world. No wonder, more
and more global companies
look to PCCPL as a preferred Indian partner whom they can trust. The
company is growing at a
pace that keeps all the plants busy despite continuous upgrade and
expansion. That is because
PCCPL understand the concerns of the Agricultural industry very well.
The objective is to offer
not just products—but Crop Protection Solutions. The focus is always
on developing products
that can offer the desired protection without compromising either the
economic efficiency or
disturbing the environmental balance.
It has a diverse range in crop protection chemicals that include 6
Technical, 7 branded bulks and
around 40 branded formulations at present. It is in the process of
adding more Technical and
wide variety of branded formulations in the near future. With this new
initiative, the company is
trying to touch the hearts of farmers by educating them on judicious
use of pesticides which lead
to better crop yields at lower costs and with due concern for the
environment. Its endeavor is to
offer wide variety of formulations tMARKETINGough vast network of
channel partners at right prices.
PCCPL commitment is to make available the entire range of products
tMARKETINGough a wide network of
channel partners which will extend support to the farmer community at
the right time and place.
Since its inception, Punjab Chemicals and Crop Protection Ltd., is
obsessed with quality. With
its stringent quality assurance practices and ecologically friendly
operations, it endeavour to
offer the best quality Agro chemicals.
41
Figure16: Subsidiary companies of PCCPL
Source: PCCPL
Figure 17: Product Range of PCCPL and Their Overall Contribution in Its Revenue.
Source: PCCPL
42
2. B.ii.a) Major Locations
With seven strategically located manufacturing plants across the
breadth of a giant peninsula like
India, the company is in a unique position to exercise complete logistic
control over its
operations from processing raw materials to handling diverse
reactions, and
from manufacture to shipment. The scattering of plants also ensures
that the production process
is never hindered due to vagaries of climate, supplies, markets or labor
problems.
Figure 18: Location of Major Offices of PCCPL in India & Overseas
Source: PCCPL
i. Agrochemicals Division, Derabassi: Located near Chandigarh,
250 kms. north of the
capital city New Delhi, & spread over 12 hectares of land employing a
team of 550
dedicated people, this is the flagship plant of the company to produce
a range of worldclass
Agrochemical technicals & intermediates mainly in the field of crop
protection.
ii. Agro-Formulations Division, Chiplun & Vadodara : Value
addition to agrochemicals
comes from a range of formulations in the form of PC brand of WDG,
SC, WP, EC range
of products from its Chiplun plant, 300 kms. south of Mumbai which
produces a range of
Sulphur formulations. Another unit is in Vadodara, about 400 kms.
north of Mumbai
43
which produces various other formulations. The products are
distributed to Indian
farmers tMARKETINGough a network of ever increasing sales depots all
over India.
iii. Pharma Division – Alpha Drugs, Lalru : Also located near
Chandigarh and spread over
10 hectares of land employing 250 trained people, the unit is a cGMP
approved facility
for the manufacture of bulk drug & pharma intermediates. The unit
also undertakes
custom synthesis.
iv. I ndustrial Chemicals Division, Pune : 200 kms. south of Mumbai
city & with 2 units
close by, it produces a variety of Phosphorous based compounds which
find its
application into pharmaceutical, beverage, plastic, paint & a variety of
other industries.
v. Industrial Chemicals Division, Tarapur : This unit located 100
kms. north of Mumbai
City, is a multi-purpose facility for the production of a range of
specialized intermediates
for the agro & pharma industries. The unit also manufactures high
value products in kilo
levels and also undertakes specialized custom synthesis activities.
vi. Sintesis Quimica, Argentina : Sintesis Quimica SAIC in an
Argentine company founded
in 1951 and engaged in manufacturing of Industrial Chemicals,
Agrochemicals,
formulation of Agrochemicals & Biological Products. It has created a
name of itself in
the National as well as international market. In 2006 the company
became wholly owned
subsidiary of SD Agchecm (Europe) NV which belongs to Punjab
Chemicals & Crop
Protection Ltd.
vii. Agrichem B.V. Netherlands : Agrichem B.V. with headquarters in
Oosterhout (The
Netherlands) has a state of Art Formulation plant for Crop Protection It
has whole owned
subsidiaries to support its exports in the United Kingdom, Ireland,
Denmark, Belgium
and Switzerland. Continuous focus and investments in registrations has
enabled
Agrichem to increase its export markets year by year into France, Italy,
Spain, Portugal,
Germany, Poland and Eastern Europe.
Furthermore, Agrichem has a professional registration team who has
an excellent
knowledge of the registration procedures in the European Union.
Together with our
internal chemists and agronomists we are developing and launching
new and renewed
products. Agrichem has its own Laboratory under Good Laboratory
Practice (GLP)
which gives us an extra guarantee that the in– and out coming
products are of extended
quality. In addition, it gives us reliable test data for forming the
product data packages
44
2. B.ii.b) Share Holding Pattern as on 6/30/2009
Domestic ( in %age ) Institutions ( in %age ) Foreign ( in %age )
Promoters 47.32 IFCI 9.38 Foreign NRI 0.21
Directors 0 Foreign Institutions 0.74
Subsidiary Companies 0 Foreign Promoters 0.04
Other Companies 6.36 Total 9.38 Total 0.99
State Govt 0
Central Govt 1.85
Govt Companies 0
Govt Others 0
NBanks Mutual Funds 0.11
Holding Companies 0
General Public 34
Employees 0
Person Acting in Concert 0
Total 89.63
Table 6: Share Holding Pattern as on 6/30/2009.
Source: PCCPL
2. B.ii.c) The Management Team:
Board of Directors
Name Designation
Mr. Mukesh D Patel Director
Mr. Vijay Rai Director
Mr. Ajith R Sanghvi Director
Mr. Jai Parkash Bhambhani Director
Mr. Avtar Singh Director
Mr. Atul G SMARKETINGoff Director
Mr. Rupam SMARKETINGoff Whole Time Director
Capt. S. S Chopra Director
Mr. G Narayana Chairman / Chair Person
Mr. Shalil SMARKETINGoff Managing Director
Mr. Shiv ShankerTiwari Whole Time Director
Mr. Jagdish R Naik Director
Key Executives
Name Designation
Mr. Bipul Joshi Chief Financial Officer
Mr. Punit K Abrol VP (Finance) & Secretary & Compliance Officer
45
2. B.ii.d) Aim of the Company:
The most persistent trait of PCCPL that pervades all dimensions of
business philosophy is
our consistent commitment to Quality Products. Our numerous
customers from five
continents and sixty countries have been vouching for that for over 30
years now.
Commitment to quality is a way of life at PCCPL, and these are not just
empty words. What
has won our products recognition the world over is the fact that our
definition of “Quality”
means “taking into account customer’s requirements and
expectations, keeping price at its
competitive best, without losing the sight of environmental welfare.”
Driven by the
commitment to complete customer satisfaction, we also go an extra
mile to specially devise
and manufacture tailor-made products for customer’s specific needs.
To us, no product idea
is mean, and no customer is small.
2. B.ii.e) The Vision:
We visualize PCCPL as a company that pursues its corporate goals
related to manufacture
and marketing of world class products with industrious, enterprising
activity, but without
losing the sight of ecological preservation and social responsibility.
2. B.ii.f) The Mission:
To innovate and manufacture products in compliance with current
Good Manufacturing
Practices (cGMP's) for both domestic and international markets, create
value for customers
and shareholders, and contribute to the welfare of the society.
2. B.iii) Recent Achievements and Milestones
➢ 19th Nov. 1975; established in joint collaboration with Excel
Industries Ltd., Mumbai &
PSIDC under the name of Punjab United Pesticides & Chemicals Ltd.
➢ 1976; Issued 1, 87,360 shares to PSIDC and 1, 87,500 shares to
Excel Industries, Ltd.
3,75,000 shares then issued at par of which 7,500 shares reserved and
allotted to PSIDC.
The balance 3, 67,500 shares offered to the public in February 1977.
➢ 1981; Power connection for the oxalic acid unit was given in July
and the trial runs were
started. The Company planned to manufacture quinaphos technical in
the same existing
malathion plant with some minor modifications. The Company also
received a letter of
intent for the manufacture of ethyle acetate (500 tonnes per annum).
The existing
46
facilities were used to produce Ibuprofen, a widely accepted drug in
the market, from
August 1986.
➢ 1983; Diversified into Diethyl Oxalate & Specialty products.
➢ 1984; The name of the company was changed from Punjab United
Pesticides and
Chemicals Ltd., to its present one.
➢ 1987; In June 1988, 1,87,500 shares were offered at par as rights in
prop. 1:4 (all were
taken up). Another 50,000 shares were offered to employees and
directors, but only
42,400 shares taken up. The balance 7,600 shares were allowed to
lapse.
➢ 1989; Equipments required to enhance the production capacity at
the Derrabassi factory
were installed.
➢ 1990; Manufacture of Sodium Nitrite from the waste Nox gases
coming out of oxalic
acid plant commenced. Also production of sodium oxalates and spray
dried silica from
the ash obtained after burning rice husk in the boilers, commenced.
Also SIA registration
was received to manufacture various oxalates with bi-product sodium
carborate.
➢ 1993 – 1994; Focused on Agrochemicals & Specialty chemicals.
➢ 2003; Established separate manufacturing facility for pharma sector
by taking over Alpha
Drug India from DSM.
➢ 2006; Amalgamation of all group companies (STS, ADIL, IA & IC,
PAURAJ).
➢ 2006; Formation of SD Agchem (Europe) NV. Belgium.
➢ 2006; Acquisition of Sintesis Quimica SAIC (a ten million dollar
company), Argentina ,
expanding its manufacturing base outside India.
➢ 2007; Acquisition of Agrichem BV. Netherlands for? 39.5 million (Rs
225 crore)..
➢ 2007; Takes stake in Source Dynamics plc, USA.
➢ 31st march 2008; Punjab Chemicals and Crop Protection Ltd
(PCCPL), one of India'
leading companies in agrochemicals, reported a 277 per cent rise in
net profit at Rs 26.51
crore for the financial year ending March 31, 2008 as against Rs 7.04
crore in the
corresponding period last year.
47
i) B.iv) Product R ange of the Company
Figure 19: Product range of PCCPL and Their use.
Source: PCCPL
2. B.v) Competitive Strengths
2. B.v.a) PCCPL has an experienced management team which are a
blend of some young and
some of the old & highly experienced people from the agro & pharma
industry.
2. B.v.b) The production operations at each of the plants are
managed by a team of skilled
technical engineers with the requisite technical know-how to carry out
production
processes. It is tMARKETINGough their consistent research and
development efforts in improving
production processes that PCCPL have developed an extensive range
of products suitable
for use in a multitude of applications.
2. B.v.c) Technical staffs are highly qualified and trained. PCCPL has a
workforce of over
650 employees.
2. B.v.d) It is the expertise and dedication of employees that provide
the leverage to the
company to respond quickly to changing market trends and demands
in the
agrochemicals & pharma industry.
48
2. B.v.e) While there are dedicated production plants for the major
products, some multi
functional design in some plants of agrochemical & pharma production
facilities provides
flexibility to meet changing demand requirements.
2. B.v.f) Strategic location of marketing offices & warehouses at major
industrial locations
enables PCCPL to deliver on time to customers within India.
2. B.v.g) With SD Agchem, Belgium as base, PCCPL is able to
distribute its products also
effectively and on time to their customers in Europe.
2. B.v.h) The GLP laboratory at Agrichem BV, Netherlands helps to
generate data required
for the various registrations.
Figure20: Key Strengths of PCCPL
49
2. B.vi) Opportunity Mat rix: Strong Demand on the H
orizon
2. B.vi.a) India:
i) Agrochemical industry in India is the fourth largest in the world (after
US, China and
Japan) estimated to be Rs 6,000-crore.
ii) In last 5 years, demand has picked up (11% CAGR) due to better
monsoons.
iii) Exports account for nearly half of the revenue has been growing at
about 25%.
iv) India has one of the lowest use of chemical fertilizer per acre of land
estimated at 75 kg
as against 470 kg in Egypt, 430 kg in Netherlands, 270 kg in China,
180 kg in
Bangladesh.
v) Prices of agrochemicals in India are one of the lowest in the world.
vi) Strong agro boom has lead to the entry of large Indian corporate
houses like ITC,
Reliance Retail, Godrej, Cadbury India, Himalaya Drugs, etc. which has
lead to large
corporate & contract farming projects.
vii)Several agricultural sectors like horticulture, floriculture,
development of seeds,
cultivation of vegetables, and musMARKETINGoom under cultivated
conditions have been tMARKETINGown
open to 100 % FDI.
viii)Agrochemicals have an enviously strong industry outlook.
ix) Indian food grain production (rice, wheat, coarse cereals and
pulses) has grown at a
CAGR of 1.3% while population growth is estimated at 1.6%. The per
capita
consumption is also fast increasing.
x) Hence to be self-sufficient production needs to grow at 3.3% p.a.
xi) It is estimated that India will face a food grain deficit of 56 mn tons
by 2018 (&140 mn
tons by 2030)* if growth stagnation is not reversed.
xii)For this crop yield has to improve dramatically. Use of the
agrochemicals in India needs
to increase.
50
2. B.vi.b) World Wide:
i) Estimated global agrichemical market size is USD 40 billion
ii) Estimated Global Agrochemical sales (2009)
By Region
Figure 21: Global Agrochemical Sales 2009
Source: PCCPL
Strong agro commodity prices underline the need for higher crop
yields. Immense potential
for the branded formulation business.
2. B.vi.c) Export: Agro Technical/Intermediates:
i) Indian exports of agrochemicals have shown an impressive growth
over the last five
years.
ii) The key export destination markets are USA, UK, France,
Netherlands, Belgium, Spain,
South Africa, Bangladesh, Malaysia and Singapore.
iii) The size of the global market is estimated to appx. USD 30 billion &
even 0.5% share of
the global market fetches a turnover of USD 150 million range.
iv) The competition in the global market is mainly restricted to MNC’s
(which are the
originators & creators of various agro chemical molecules), Indian &
Chinese players.
v) Not many other countries have necessary technology & processing
capabilities,
infrastructure, ability to adhere to stringent quality & environmental
policies required for
the exporting agro technical / intermediates, hence provides an
opportunity.
PCCPL supplies to several large global originators & creators
across 60 countries with
large quantities exported to Israel & Europe.
51
2. B.vii) Performance of the Company over the Last
Few Years (Statistical
Profile)
Sr.
No.
Particulars Year Ended 31 March
2009 (Audited) Rs. in
lacs.
Year Ended 31 March
2008 (Audited) Rs. in
lacs.
A Segment Revenue
i) Chemicals 41737 39194
ii) Bulk drugs & Intermediates 5080 4749
46817 43943
Less
iii) Intersegment Sales/Adjustment -409 -532
Netsales/Income from Operations 46408 43411
B Segment Results
Profit(+) Loss(-) Before Interest and Tax
i) Chemical 4085 6578
Total 4604 6836
less: i) Interest 3449 2251
ii) Unallocable Expenditure 18 14
Net of Unallocable Income 4571
Total Profit/(Loss) Before Tax But After
Prior Period Adjustments
1137 4571
C Capital Employed
(Segment Assets Minus Segment
Liabilities)
i) Chemicals 5345 5172
9456 8913
Table 7: Segment wise revenue to PCCPL for the FY2007-08 & 2008-09.
Source: PCCPL Annual financial Report
The above table shows the statement of segment wise revenue and
profit of PCCPL for the
financial year 2007-2008 and 2008-2009. It is clear from the above
table that the sale of the
company’s chemicals and bulk drugs & intermediates products has
been increased. In case of
chemical products the increase in sale is 6.4% and the sale of bulk
drugs & intermediates
increased with 7% as compared to last year sale.
But the figures of profit for the year 2009 shows reduction (Rs. 4085
lacs.) as compared to
previous years profit of Rs (Rs. 6578 lacs.). Whereas for Bulk drugs &
Intermediates profit for the
year 2009 is almost doubled than the previous year’s profit.
The capital employed increases for both the segments for the year with
3.34% for Chemicals and
9.9% for Bulk drugs & Intermediate.
52
Punjab Chemicals & Crop Protection's (PCPL) ambitious plans including
overseas acquisitions
and a foray into the domestic agrochemical formulations market could
catapult it into an Indian
MNC. Its performance over the past tMARKETINGee years has been
impressive. Top line grew at a CAGR
of 36% and bottom line jumped at a CAGR of 82%. The scrip is
currently trading at a P/E of just
6.51x FY06 EPS of Rs 25.34 and 5.44x FY08E EPS of Rs 30.31. We rate
the counter an
OUTPERFORMER with a price target of Rs 242 for an investment
horizon of 12-15 months. For
FY06, PCPL reported a turnover of Rs 267 crore and net profit of Rs
16.7 crore, which works
out to an EPS of Rs 25.34. It has healthy EBIDTA margin of 10.38% and
net margins of 6.26%.
The equity capital has gone up to Rs 6.59 crore subsequent to the
tMARKETINGee-way merger.
Sales Breakup
Product Agrochemicals Industrial Chemicals & Intermediates
Pharmaceuticals
% Sales 58% 31% 11%
2. B.vii.a) Investment Rationale:
i) Global expansion via inorganic route : The Company plans to
grow tMARKETINGough the
inorganic route. It is planning to increase its portfolio of registered
products in high
margin foreign markets by acquiring companies in overseas markets.
This will also
present an opportunity to shift manufacturing to India that has a cost
advantage. The
company proposes to fund these acquisitions tMARKETINGough a mix
of debt and equity. It has
already convened an AGM and received shareholders approval for
raising Rs 400 crore
tMARKETINGough various instruments like GDRs, FCCBs, private equity
and structured debt. It has
also allotted 8.33 lakh preferential convertible warrants to the
promoters at Rs 231 per
share aggregating to Rs 19.24 crore.
ii) Consolidation of group companies : The Company has merged
its group companies
STS Chemicals and Alpha Drugs with itself in order to broad base its
product portfolio
and also to benefit from the synergies of a consolidated entity. It has
established itself as
a reliable supplier and has contract manufacturing arrangements with
leading MNCs. Its
clients include reputed multinationals like Bayer, Dow, Ranbaxy Labs,
Nufarm, etc. With
a well-diversified portfolio, the company is now less sensitive to a
downturn in any single
product category. The company has developed a couple of new
products for the export
market and is expected to launch them in the third quarter of the
current year.
53
iii) Foray into local agro-chemical formulations market : The
Company has recently
acquired IA & IC Chem, which has a state-of-the-art agro-chemical
formulation facility,
giving it a footprint in the domestic agro-chemical formulations market.
It has ambitious
plans for the local market and will be introducing new generation
herbicides and
fungicides. This acquisition will also help reduce transportation costs as
well as ensure
faster delivery to its distributors since the plant is located in
Maharashtra.
2. B.viii) Financial Status of the Company
Profit & loss statement (Rs mn) Balance sheet (Rs mn)
Y/E March FY2007 FY2008 FY2009 Y/E March FY2007 FY2008 FY2009
Net Sales 3583.7 5712.6 7415.9 Equity Cap 65.9 65.9 67.4
% Growth 37.5 59.4 34.9 Reserves 720 924 1394.8
EBIDTA 262.7 782.7 971 Networth 785.9 989.9 1462.3
% Growth 13.8 198 24.1 Government Grant 3.4 3.3 3.3
Other Income 73.9 203.3 284.7 Secured loans 1533.3 3767.3 4106.5
Interest 140.8 361.2 476.8 Unsecured loans 174.6 664.9 664.9
Depreciation 78.5 197.2 202.1 Total loans 1704.6 4428.8 4768.1
PBT 117.2 427.6 634.6 Deffered Tax Liab 159.6 583.7 583.7
% Growth -11.4 264.8 16.4 Minority Interest 46.1 43.1 46.1
Tax 46.9 162.5 169.7 Total Liability 2699.6 6048.9 6863.5
PAT 70.4 265.1 315.1 Net Block 1091.8 3183.9 3336
% Growth -47.8 276.8 18.9 Cap Work-in-Progress 302.5 354.2 100
Dividend (%) 25 40 40 Investments 48.3 144.2 144.2
EPS (Rs) 9.1 37.7 46.3 Inventory 785.7 1597.1 2030.6
BVPS (Rs) 119.2 150.1 216.8 Debtors 876.8 2102.9 2603.6
Cash balance 128.9 317.3 496.2
Other CA 31.8 44.2 76
Loans and Advances 354.9 394.1 532.2
Current Liabilities 902.4 1,902.6
0
2,291.20
Provisions 28.5 197.4 175
NCA 1247.1 2355.7 3272.4
Deferred Tax Assets 9.9 0.4 0.4
Misc. 0 10.4 10.4
Total Assets 2699.6 6049 6863.5
Table 8: Balance Sheet and P&L Account of PCCPL for FY2007, 2008 & 2009.
Source: PCCPL
54
Ratio Analysis Cash Flow Statement (Rs mn)
Y/E March FY2007 FY2008 FY2009 Y/E March FY2007 FY2008 FY2009
OPM % 7.3 13.7 12.6 PAT 70.4 265.1 315.1
NPM % 2 4.6 4.1 Depreciation 78.5 197.2 202.1
ROE % 9 26.8 21.6 Change in
WC
-134.4 -920.2 -737.8
ROCE % 9.6 13 14 Operating CF 14.5 -457.9 -220.6
Int. Cover (x) 2.4 2.7 2.4 Capex -594.2 -
2,321.6
0
-100
D/E (x) 2.2 4.5 3.3 Misc Exp 186.2 178.6 -
Asset Turnover
(x)
1.8 1.3 1.7 Investing CF -408.1 -
2,143.1
0
-100
Debtors Days 91.8 136.5 125 Equity - - 191.8
Inventory Days 86.4 118.2 110 Dividends -19.3 -30.9 -31.6
Valuation ratios Debt 471.7 2,724.2
0
339.2
P/CF per share (x) 12.6 4.1 3.7 Investments 9.8 95.9 -
EV/Cash Profit (x) 23.2 13 12 Financing CF 462.2 2,789.3
0
499.4
EV/EBIDTA (x) 13.2 7.7 6.4 Net Change 68.6 188.4 178.9
EV/Sales (x) 1 1 0.8 Opening
Cash
60.3 128.9 317.3
Mkt Cap/Sales(x) 0.5 0.3 0.2 Closing
Cash
128.9 317.3 496.2
CEPS (Rs) 22.6 70.1 76.7
P/ BV (x) 2.4 1.9 1.3
Table 9: Key Ratios & cash flow statement for the FY 2007, 2008 & 2009.
Source: PCCPL
Punjab Chemicals & Crop Protection (PCCPL), an integrated player in
the agro-chemical space,
which by virtue of its integrated approach and well spread distribution
network is ready to
exploit the promising outlook for the domestic agrochem markets.
Also, PCCPL's foray into the
regulated markets of Europe and South America enriches the earning
visibility in near future.
Moreover, PCCPL's efforts to accquire product basket in US and
consequent foray to US
remains a trigger point in near term.
2. B.viii.a) Quick Financial Synopsis:
For the fiscal year ended 31 March 2009, Punjab Chemicals & Crop
Protection Ltd's
revenues increased 26% to Rs. 7.42B. Net loss totaled Rs. 9.2M vs. an
income of Rs 248.9M.
Revenues reflect an increase in income from Chemicals and Bulk Drug
& Intermediates
segments. Net loss reflects an increase in consumption of raw
materials, increased personnel
cost, an increase in provision for depreciation expense and higher
interest expense.
The profit after tax has increased at the growth rate of 18.9% and
stood at Rs. 315.1 million
against Rs. 265.1 mn. Cash in hand also increased from Rs. 317.3
million to Rs. 496.2
55
million. The dividend remains at 40%. Net sale increased from Rs.
5712.6 mn to Rs. 7415.9
mn with 34.9% growth rate. Similarly EBIDTA shows the growth of
24.1% and increased
from Rs 782.7 mn to Rs. 971 mn. The Earning per share increased from
Rs. 37.7 to Rs. 46.3.
Total assets of the company also increased and stood at Rs. 6863.5 mn
as compared to
Rs.6049 mn of previous year. An acceptable current ratio varies by
industry. For most
industrial companies 1.5 is an acceptable current ratio. A standard
current ratio for a healthy
business is close to 2. The current ratio for PCCPL is 1.03 which is quite
good it means
company has adequate resources to pay its liabilities. The quick ratio is
0.6, a quick ratio of
1:1 is considered standard and ideal, since for every rupee of current
liabilities, there is a
rupee of quick assets. A decline in the liquid ratio indicates over-
trading, which, if serious,
may land the company in difficulties.
With the encouraging local environment and strategic inorganic
moves, we expect PCCPL to
record a top-line CAGR of 24% during FY08-10. OPM is expected move
in the narrow range
of 12-13%, resulting in 21% CAGR for net profit, followed by EPS
growth of 51% over
FY08-10. This takes the FY09 and FY10 EPS to Rs 46.3 and Rs 56.8
respectively from Rs
37.7 in FY08. Looking at promising outlook for the domestic
agrochemicals industry and
PCCPL's focus on growth tMARKETINGough organic as well as inorganic
efforts, we believe the
company is well placed for stronger growth in near future.
2. B.ix) Future Prospectus of PCCPL
i) Govt. focus on higher crop yields ensures strong growth for
the Agro Chemical
Sector: India’s increasing population, sMARKETINGinking land acreage
and falling crop yields have
emerged as the biggest concern for Indian food administration. In fact,
Indian food
production growth (i.e. CAGR 1.3%) in recent years has lagged behind
the population
growth (i.e. CAGR 1.6%), impacting the food supply situation. On the
other hand, the
India has been one of the lowest users of chemical fertilizers with
about 75kg per acre
against 270kg in China, 180kg in Bangladesh. In fact, only 25% the
total cultivable land
of 180 million hectares is treated with crop protection chemicals. Given
the fact, the
opportunity for domestic agrochemicals looks promising in near future.
ii) PCCPL’S Agro-chemicals business has shown steady growth
on consistent basis:
Agro-chemicals is the flagship segment of the company (contributing
over 50% of the
consolidated revenue) and comprises of – supply of oxalic acid and
derivates, export of
56
technical bulks to MNCs (inclusive of Syngenta, Dow Chemicals, Agan
industries etc)
and branded formulations. The oxalic acid business, wherein PCCPL
holds its leading
position in the world, saw impressive
iii) Growth of over 30% in FY08 (driven by increasing shortage due to
shut down of plants
by Chinese players). The shortage situation is likely to remain in even
FY09 and would
ensure the growth momentum. On the technical bulk front, PCCPL
expects robust growth
as the company is in discussion for couple of longterm supply pact with
Syngenta and
other MNCs. PCCPL in recent past ventured into formmulations, which
on a lower base
delivers robust growth. Overall, we estimate the Agro-chemicals to
deliver steady growth
over 20% in next two years.
iv) Inorganic moves consolidates presence in regulated
markets: In order to strengthen
its presence in regulated formulation markets, PCCPL has acquired
Sintesis Quimica
SAIC based in Argentina in FY07 and Agrichem based in Netherland in
FY08, which has
vitalised PCCPL’s strength in terms of entry into regulated formulation
markets, products
portfolio, manufacturing capability, MNC clientele and distribution
network. Also, it
adds power to PCCPL’s R&D capability that would help the company to
enter US
market. On the other hand, PCCPL has acquired 70% stake in Parul
Chemical (a Gujarat
based bulk manufacturer), which ensure internal sourcing and better
profitability.
v) Acquisition on cards: In line with its strategy to strengthen its
base in regulated markets,
PCCPL is in discussions with a US-based firm to acquire its
agrochemicals portfolio.
Thus, in order to fund the acquisition and working capital requirement
the company in
the process of raising fund worth $50-60mn tMARKETINGough GDR.
vi) Improving Fundamentals over FY08-10E: With the encouraging
local environment
and strategic inorganic moves, we expect PCCPL to record a top-line
CAGR of 24%
during FY08-10. OPM is expected move in the narrow range of 12-13%,
resulting in
21% CAGR for net profit, followed by EPS growth of 51% over FY08-10.
This takes the
FY09 and FY10 EPS to Rs 46.3 and Rs 56.8 respectively from Rs 37.7 in
FY08.
57
2. B.x) Future Strategies of PCCPL
i) Explore opportunities to acquire product portfolio in new markets.
ii) Value addition by forward integration for various agro chemical and
industrial chemicals.
Unlike other agro pharma companies, PCCPL is not foraying into seeds
rather it is
adopting the branded retail formulations route & is focusing on next-
generation
environmental friendly biological agro products.
iii) TMARKETINGough Sintesis develop biological agro product range.
Tie-up also in place with a local
company in Hyderabad. Tremendous potential for environment friendly
products. These
products have great potential in US & Canada.
iv) TMARKETINGough acquisition consolidate presence in formulation
market of Europe, South
America, North America and foray into Africa & South East Asia.
v) Major tMARKETINGust is value-added agro chemical products in the
international market
particularly in Europe, US & Canada.
vi) Explore opportunities to backward integrate in some of the
products.
vii)Continuous R&D to introduce latest herbicides and bio products in
domestic and
international markets (after obtaining registrations).
viii)Explore contract manufacturing opportunities.
ix) For USA market, PCCPL has formed a JV with local partner & is
planning to spend USD
10 million over a period of next 3 years to get its products registered in
USA.
x) Exploring opportunities to acquire product portfolio in USA.
xi) Evaluating opportunities to backward integrate into phosphorus
space.
xii)Expand the pharma range of products.
xiii)Explore contract manufacturing opportunities.
58
CHAPTER – III
3. OBJECTIVES & RESEARCH METHODOLOGY
3. A) OBJECTIVES OF THE STUDY
1. To Measure the satisfaction levels of employees on various factors
and give suggestions
for improving the same.
2. To study the relationship between the personal factors of the
employee (Income, Age,
Educational qualification, Gender, etc.,) with satisfaction level.
3. To determine the level of awareness and satisfaction on the policy of
training and
development.
4. To determine how people feel and react to their job related
condition.
5. To determine whether the working conditions in PCCPL are good
enough.
6. To study the various factors which influence job satisfaction.
7. To analyze the company’s working environment.
8. To find that employees are working with their full capabilities or not.
3. B) HYPOTHESIS
1. There is no significant relationship between gender and level of
satisfaction.
2. There is no significant relationship between marital status and level
of satisfaction.
3. There is no significant relationship between age and level of
satisfaction.
4. There is no significant relationship between educational qualification
and level of
satisfaction.
5. There is no significant relationship between experience and level of
satisfaction.
6. There is no significant relationship between monthly salary and level
of satisfaction.
59
3. C) 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.
3. C.i) Research D esign : 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.
3. C.ii) 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 60 employees from the total population in the delivery
peoples. The samples are
selected on the basis of convenient.
3. C.iii) Data Collection: The primary data was collected by
using questionnaires. The
questionnaire has 68 questions. A likert scale (five point scale) was
used such as strongly
disagree, disagree, neutral, agree and strongly agree.
3. C.iv) Questionnaire Schedule: Questions are framed in
such a way that the answers
reflect the ideas and thoughts of the respondents with regard to level
of satisfaction of various
factors of job satisfaction. The questionnaire has total 68 questions.
The likert scaling techniques
has been used for each question in the interview schedule.
1. Strongly agree
2. Agree
3. Neutral
4. Disagree
5. Strongly disagree
3. C.v) Tools of Analysis :
3. C.v.a) Simple Percentage Analysis:
Here the simple percentage analysis is used for calculating the
percentage of satisfaction
level in the total respondents.
60
3. C.v.b) Two-Way Analysis:
The score secured by the respondents who falls between the score as
up to 250
indicates
less satisfaction of the respondents, from 251 – 280 are got average
satisfaction and
above 280 respondents got highly satisfaction level.
3. C.v.c) Chi-Square Test:
Chi-square test is applied to test the goodness of fit, to verify the
distribution of observed
data with assumed theoretical distribution. Therefore it is a measure to
study the
divergence of actual and expected frequencies; Karl Pearson’s has
developed a method to
test the difference between the theoretical (hypothesis) & the
observed value.
Chi – square test (X2) = (O – E) 2 / E
Degrees Of Freedom = V = (R – 1) (C -1)
Were,
‘O’ = Observed Frequency
‘E’ = Expected Frequency
‘R’ = Number of Rows
‘C’ = Number of Columns
For all the chi-square test the table value has taken @ 5% level of
significance.
3. C.vi) Areas of Study
The area of the study is Punjab Chemicals and Crop Protection Limited,
Derabassi
Manufacturing Plant, dist- Mohali, Punjab.
3. C.vii) Limitations of Study
i) The sample was confined to 60 respondents. So this study cannot be
regarded as “full
-proof” one.
ii) Some respondents hesitated to give the actual situation; they feared
that management
would take any action against them.
iii) There was a fear of reprisal among the employees to reveal their
personal feelings and the
result may not reflect the actual satisfactions.
iv) The findings and conclusions are based on knowledge and
experience of the respondents
sometime may subject to bias.
v) As such the research study was being done in the year July 2009,
with required data
analysis and interpretation, the data needs to be updated at times
when it comes to have
further usage of this research study report.
61
CHAPTER-IV
4. DATA PRESENTATION AND ANALYSIS
ANALYSIS AND INTERPRETATION
This chapter is allocated for analysis and interpretation of data.
Preparing percentage analysis,
two-way table and chi-squire test does the analysis of job satisfaction,
which is directly extracted
from the questionnaire. The variations in the extent of the employee
satisfaction can be measured
with the variables such as job secured, promotional opportunity,
relationship with management,
satisfaction factors of the respondents etc.
CALCULATION OF SATISFACTORY SCORES
The Respondents were asked to state their level of satisfaction relating
to sixty one 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 tMARKETINGee levels of
satisfaction were assigned namely high, medium and low. The scores
were allocated as follow.
• 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 sixty respondents were
classified based on their level of satisfaction. Those who have obtained
up to 250 points were
classified under low satisfaction category, Respondents with 251 – 280
points were classified
under medium satisfaction category and those with more than 280
points were classified under
high satisfaction category.
NUMBER OF RESPONDENTS AND LEVEL OF SATISFACTION
LEVEL OF SATISFACTION NO. OF RESPONDENTS
High satisfaction 11
Medium satisfaction 36
Low satisfaction 13
TOTAL 60
62
4. A) DATA PRESENTATION WITH SIMPLE PERCENTAGE
TABLE
SIMPLE PERCENTAGE TABLE – 1
GENDER
There is as yet no consistent evidence as to whether women are more
satisfied with their job than
men, holding such factors as job and occupational level constant. In
order to know the ratio of
gender among employees of PCCPL and the difference in their level of
satisfaction, the
respondents were asked about their gender.
Gender of the employee
Gender Frequency Percentage
Male 55 91.666667
Female 5 8.3333333
Total 60 100
INTERPRETATION:
The above table indicates that
✔ 91.666667% of the employees in PCCPL are male.
✔ 8.3333333% of the employees in PCCPL are female.
63
SIMPLE PERCENTAGE TABLE - 2
MARITAL STATUS
The marital status may influence the job satisfaction as a personal
factor. Because the married
people has some unavoidable responsibility.
Marital status of the employees
Marital Status Frequency Percentage
Married 55 91.66667
Unmarried 5 8.333333
Total 60 100
INTERPRETATION:
✔ 91.66% of the employees are married.
✔ 8.33% of the employees are unmarried.
64
SIMPLE PERCENTAGE TABLE - 3
AGE
Age is an important factor that has an influence of job satisfaction.
Hence according to age levels
the respondents are classified into tMARKETINGee categories.
Age of the employees
Age Frequency Percentage
Less than or equal to 25 yrs 2 3.33333
26-50 50 83.3333
More than or equal to 51 yrs 10 16.6667
Total 60 100
INTERPRETATION:
✔ Majority of the respondents i.e. 83.33% are in 26 to 50 years
age group.
✔ 16.66% of the respondents are above 50 years age group.
✔ 3.33% of the respondents are below 26 years age group.
65
QUALIFICATION
Qualification of the respondents may affect the perception of job
satisfaction. Highly educated
may expect much better work life then others. According to
educational qualification the
respondents are classified into four categories as under.
Qualification of the employees
Qualification Frequency Percentage
School Level 44 73.33333
Graduate 13 21.66667
Post Graduate 3 5
Total 60 100
INTERPRETATION:
The above table reveals that
✔ Majority of the respondents i.e. 73.33% studied up to school
level.
✔ 21.66% of the respondents are graduate.
✔ 5% of the respondents are post graduate.
66
EXPERIENCE
The experience of the employees in their job is another factor affecting
the perception on job
satisfaction. Highly experienced may expect better working conditions
and having less
experienced satisfy with the existing one. The respondents are
classified into tMARKETINGee categories
according to their level of experience as under:
Experience of the employees
Experience Frequency Percentage
Less than or equal to 5 yrs 7 11.666667
6-10yrs 12 20
More than or equal to 11 yrs 41 68.333333
Total 60 100
INTERPRETATION:
The above table shows that
✔ 68.33% are above 10 years of experience in PCCPL.
✔ 20% of the respondents are 6 – 10 years of experience.
✔ 11.66% of the respondents are less than 6 years of experience.
67
MONTHLY SALARY
Man work to earn every employee in the organization will expect
adequate pay to be paid for the
job done by him. The reasonable pay for each job which is performed
in the organization. This
scale of pay may help for the job satisfaction to a greater extent.
Monthly Salary of the employees
Monthly Salary Frequency Percentage
Less than or equal to Rs 10000 7 11.66666667
Rs. 10001 – 15000 18 30
More than or equal to Rs. 15001 35 58.33333333
Total 60 100
INTERPRETATION:
✔ 58.33% of the employees have their monthly salary above
Rs.15001.
✔ 30% of the employees have their monthly salary between Rs.10001
– Rs.15000.
✔ 11.66% of the employees have their monthly salary below Rs 10000.
68
Table showing employee’s opinion about the nature of their
work.
Your work is very challenging one
Description Frequency Percentage
Strongly agree 21 35
Agree 30 50
Neutral 8 13.333333
Disagree 0 0
Strongly disagree 1 1.6666667
Total 60 100
INTERPRETATION:
✔ 35% of the employees are strongly agree that their work is very
challenging one.
✔ 50% of the employees are agree that their work is very
challenging one.
✔ 13.33% of the employees are neutral about the fact that their work
is challenging one.
✔ 0% of the employees are disagree that their work is very
challenging one.
✔ 1.66% of the employees are strongly disagree that their work is
very challenging one.
69

Table showing opinion of employees regarding their work load.
I feel I have too much work to do
Strongly agree 11 18.3333
Agree 30 50
Neutral 16 26.6667
Disagree 3 5
Strongly disagree 0 0
Total 60 100
INTERPRETATION:
✔ 18.33% of the employees are strongly agree that they have too
much work to do.
✔ 50% of the employees are agree that they have too much
work to do.
✔ 26.66% of the employees are neutral about the fact that they have
too much work to do.
✔ 5% of the employees are disagree that they have too much work to
do.
✔ 0% of the employees are strongly disagree that they have too
much work to do.
70
Table showing opinion of employees regarding working hours.
Working hours are convenient for me I’m happy with my work place
Agree 25 41.666667
Neutral 3 5
Disagree 0 0
Total 60 100
INTERPRETATION:
✔ 53.33% of the employees are strongly agree that their
working hours are
convenient.
✔ 41.66% of the employees are agree that their working hours are
convenient.
✔ 5% of the employees are neutral about the fact that their working
hours are convenient.
✔ 0% of the employees are disagree that their working hours are
convenient.
✔ 0% of the employees are strongly disagree that their working
hours are convenient.
71
Table showing opinion of the employees regarding rest
intervals.
Adequate rest intervals are given
Agree 28 46.666667
Neutral 7 11.666667
Disagree 1 1.6666667
Total 60 100
INTERPRETATION:
✔ 40% of the employees are strongly agree that adequate rest
intervals are given to them.
✔ 46.66% of the employees are agree that adequate rest
intervals are given to them.
✔ 11.66% of the employees are neutral about the fact that adequate
rest intervals are given
to them.
✔ 1.66% of the employees are disagree about the fact that adequate
rest intervals are given
to them.
✔ 0% of the employees are strongly disagree that that adequate
rest intervals are given to
them.
72
Table showing opinion of the employees about management
and workers relationship.
Management builds and maintains work relationship
Agree 23 38.3333
Neutral 6 10
Disagree 3 5
Total 60 100
INTERPRETATION:
✔ 46.66% of the employees are strongly agree that
management builds and maintains
work relationship.
✔ 38.33% of the employees are agree that management builds and
maintains work
relationship.
✔ 10% of the employees are neutral about the fact that management
builds and maintains
work relationship.
✔ 5% of the employees are disagree about the fact that management
builds and maintains
work relationship.
✔ 0% of the employees are strongly disagree that management
builds and maintains work
relationship.
73
Table showing opinion of the employees whether they are
provided with sufficient tools
and equipments or not.
Provided with sufficient tools and equipments needed to do my work
Agree 25 41.6667
Neutral 0 0
Disagree 0 0
Total 60 100
INTERPRETATION:
✔ 58.33% of the employees are strongly agree that they are
provided with sufficient
tools and equipments needed to do their work.
✔ 41.66% of the employees are agree that they are provided with
sufficient tools and
equipments needed to do their work.
✔ 0% of the employees are neutral about the fact that that they are
✔ 0% of the employees are disagree about the fact that they are
✔ 0% of the employees are strongly disagree that they are provided
with sufficient tools
and equipments needed to do their work.
74
Table showing opinion of the employees regarding safety
measures.
I’m satisfied with the safety measures provided by my company
Agree 16 26.6667
Neutral 5 8.33333
Disagree 0 0
Total 60 100
INTERPRETATION:
✔ 65% of the employees are strongly agree that they are
satisfied with safety
measures.
✔ 26.66% of the employees are agree that they are satisfied with
safety measures.
✔ 8.33% of the employees are neutral about the fact that they are
satisfied with safety
measures.
✔ 0% of the employees are disagree that they are satisfied with
safety measures.
✔ 0% of the employees are strongly disagree that they are satisfied
with safety measures.
75
Table showing opinion of the employees lighting and other
arrangements.
The lighting and other arrangements are satisfactory
Agree 30 50
Neutral 5 8.33333
Disagree 0 0
Total 60 100
INTERPRETATION:
✔ 41.66% of the employees are strongly agree that lighting and
other arrangements are
satisfactory.
✔ 50% of the employees are agree that lighting and other
arrangements are
satisfactory.
✔ 8.33% of the employees are neutral about the fact that lighting and
other arrangements
are satisfactory.
✔ 0% of the employees are disagree that lighting and other
arrangements are satisfactory.
✔ 0% of the employees are strongly disagree that lighting and other
arrangements are
satisfactory.
76
Table showing opinion of the employees regarding work
pressure on them.
I am mentally and/or physically exhausted at the end of a day at work
Strongly agree 3 5
Agree 15 25
Neutral 17 28.3333
Disagree 22 36.6667
Total 60 100
INTERPRETATION:
✔ 5% of the employees are strongly agree about the fact that they
are mentally and
physically exhausted at the end of the day at work.
✔ 25% of the employees are agree that they are mentally and
physically exhausted at the
end of the day at work.
mentally and physically
exhausted at the end of the day at work.
✔ 36.66% of the employees are disagree about the fact that
they are mentally and
physically exhausted at the end of the day at work.
✔ 5% of the employees are strongly disagree that they are mentally
and physically
exhausted at the end of the day at work.
77
Table showing opinion of the employees about superior’s
assistance.
I have proper superiors assistance
Agree 37 61.666667
Neutral 3 5
Disagree 0 0
Total 60 100
INTERPRETATION:
✔ 33.33% of the employees are strongly agree that they have proper
superior assistance.
✔ 61.66% of the employees are agree that they have proper
✔ 5% of the employees are neutral about the fact that they have
proper superior assistance.
✔ 0% of the employees are disagree about the fact that they have
proper superior
assistance.
✔ 0% of the employees are strongly disagree that they have proper
78
Table showing opinion of the employees about how much
importance employees ideas have
in decision making.
My boss considers my ideas too while making decision
Agree 33 55
Neutral 9 15
Disagree 0 0
Total 60 100
INTERPRETATION:
✔ 30% of the employees are strongly agree that boss consider their
ideas too while making
decision.
✔ 55% of the employees are agree that boss consider their
ideas too while making
decision.
✔ 15% of the employees are neutral about the fact that boss consider
their ideas too while
making decision.
✔ 0% of the employees are disagree that boss consider their ideas
too while making
decision.
✔ 0% of the employees are strongly disagree that boss consider
their ideas too while
making decision.
79
appreciated for their
performance or not.
I am appreciated for my performances
Agree 33 55
Neutral 7 11.666667
Disagree 0 0
Total 60 100
INTERPRETATION:
performance.
✔ 55% of the employees are agree that they are appreciated
for their performance.
✔ 11.66% of the employees are neutral that are appreciated for their
performance.
✔ 0% of the employees are disagree that are appreciated for their
performance.
✔ 0% of the employees are strongly disagree that they are
performance.
80
Table showing opinion of the employees regarding the fairness
of their boss.
My boss is not partial
Agree 31 51.666667
Neutral 13 21.666667
Total 60 100
INTERPRETATION:
✔ 23.33% of the employees are strongly agree that their boss is not
partial.
✔ 51.66% of the employees are agree that their boss is not
partial.
✔ 21.66% of the employees are neutral about the fact that their boss
is not partial.
✔ 3.33% of the employees are disagree about the fact that their boss
is not partial.
✔ 0% of the employees are strongly disagree that their boss is not
partial.
81
Table showing opinion of the employees regarding their
participation in day to day
activities.
My Participation is welcomed
Agree 37 61.6667
Neutral 5 8.33333
Disagree 1 1.66667
Total 60 100
INTERPRETATION:
✔ 28.33% of the employees are strongly agree that their
participation is welcomed.
✔ 61.66% of the employees are agree that their participation
is welcomed.
✔ 8.33% of the employees are neutral about the fact that their
✔ 1.66% of the employees are disagree about the fact that their
✔ 0% of the employees are strongly disagree that their participation
is welcomed.
82
Table showing opinion of the employees regarding their access
to their superiors.
I can easily approach my superiors
Agree 32 53.3333
Neutral 1 1.66667
Disagree 0 0
Total 60 100
INTERPRETATION:
✔ 45% of the employees are strongly agree that they can easily
approach their superiors.
✔ 53.33% of the employees are agree that they can easily
✔ 1.66% of the employees are neutral about the fact that they can
easily approach their
superiors.
✔ 0% of the employees are disagree that they can easily approach
their superiors.
✔ 0% of the employees are strongly disagree that they can easily
83
Table showing opinion of the employees regarding the
competency of their superiors.
Superiors are competent enough to guide
Agree 38 63.3333
Neutral 5 8.33333
Disagree 0 0
Total 60 100
INTERPRETATION:
✔ 28.33% of the employees are strongly agree that superiors are
competent enough to
guide.
✔ 63.33% of the employees are agree that superiors are
competent enough to guide.
✔ 8.33% of the employees are neutral about the fact that superiors
are competent enough to
guide.
✔ 0% of the employees are disagree that superiors are competent
enough to guide.
✔ 0% of the employees are strongly disagree that superiors are
competent enough to guide.
84
relations with their colleagues.
The colleagues of the organization are friendly
Agree 18 30
Neutral 0 0
Disagree 0 0
Total 60 100
INTERPRETATION:
✔ 70% of the employees are strongly agree that colleagues of
the org. are friendly.
✔ 30% of the employees are agree that colleagues of the org. are
friendly.
✔ 0% of the employees are neutral about the fact that colleagues of
✔ 0% of the employees are disagree about the fact that colleagues of
✔ 0% of the employees are strongly disagree that colleagues of the
org. are friendly.
85
behavior of the employees.
The colleagues are helpful in nature
Agree 16 26.6667
Neutral 0 0
Disagree 0 0
Total 60 100
INTERPRETATION:
✔ 73.33% of the employees are strongly agree that colleagues
are helpful in nature.
✔ 26.67% of the employees are agree that that colleagues are helpful
in nature.
✔ 0% of the employees are neutral about the fact that that colleagues
✔ 0% of the employees are disagree about the fact that that
colleagues are helpful in nature.
✔ 0% of the employees are strongly disagree that that colleagues
86
Table showing opinion of the employees whether workers
share their know-how with each
other or not.
All the workers share their Know-how
Agree 38 63.3333
Neutral 1 1.66667
Disagree 0 0
Total 60 100
INTERPRETATION:
✔ 35% of the employees are strongly agree that workers share their
know-how.
✔ 63.33% of the employees are agree that workers share their
know-how.
✔ 1.67% of the employees are neutral about the fact that workers
share their know-how.
✔ 0% of the employees are disagree about the fact that workers
share their know-how.
✔ 0% of the employees are strongly disagree that workers share
their know-how.
87
Table showing opinion of the employees whether they feel
motivated by their boss in
I feel that my Boss motivate me to achieve the organization goal
Agree 23 38.333333
Neutral 4 6.6666667
Total 60 100
INTERPRETATION:
✔ 51.67% of the employees are strongly agree that their boss
motivate them to achieve
org. goal.
✔ 38.33% of the employees are agree that their boss motivate them
to achieve org. goal.
✔ 6.67% of the employees are neutral about the fact that their boss
motivate them to
achieve org. goal.
✔ 3.33% of the employees are disagree about the fact that their boss
motivate them to
achieve org. goal.
✔ 0% of the employees are strongly disagree that their boss
motivate them to achieve org.
goal.
88
Table showing opinion of the employees that they are
adequately motivated when ever
needed to do so.
My supervisor motivates me to increase my efficiency at times when
I’m not
productive
Agree 33 55
Neutral 8 13.3333
Disagree 0 0
Total 60 100
INTERPRETATION:
✔ 31.67% of the employees are strongly agree that supervisor
motivates to increase
efficiency at times when they are not productive.
✔ 55% of the employees are agree that supervisor motivates
to increase efficiency at
times when they are not productive.
✔ 13.33% of the employees are neutral about the fact that supervisor
✔ 0% of the employees are disagree about the fact that supervisor
✔ 0% of the employees are strongly disagree that supervisor
89
Table showing opinion of the employees regarding system of
communication.
Communication seems good within this organization
Agree 29 48.333333
Neutral 5 8.3333333
Total 60 100
INTERPRETATION:
✔ 41.67% of the employees are strongly agree that communication
system is good within
the organization.
✔ 48.33% of the employees are agree that communication
system is good within the
organization.
✔ 8.33% of the employees are neutral about the fact that
communication system is good
within the organization.
✔ 1.67% of the employees are disagree about the fact that
communication system is good
within the organization.
✔ 0% of the employees are strongly disagree that communication
system is good within
the organization.
90
Table showing opinion of the employees that their
assignments are clearly explained to
them.
Work assignments are clearly explained to me
Agree 27 45
Neutral 0 0
Disagree 0 0
Total 60 100
INTERPRETATION:
✔ 46.67% of the employees are strongly agree that work
assignments are clearly
explained to them.
✔ 38.33% of the employees are agree that work assignments are
clearly explained to them.
✔ 10% of the employees are neutral fact that work assignments are
clearly explained to
them.
✔ 5% of the employees are disagree about the fact that work
assignments are clearly
explained to them.
✔ 0% of the employees are strongly disagree that work assignments
are clearly explained
to them.
91
Table showing opinion of the employees regarding training
program.
I am satisfied with the training programs provided to us
Agree 13 21.666667
Neutral 15 25
Disagree 3 5
Total 60 100
INTERPRETATION:
satisfied with the training
programs provided to them.
✔ 21.67% of the employees are agree that they are satisfied with the
training programs
provided to them.
✔ 25% of the employees are neutral about the fact that they are
with the training
92
Table showing opinion of the employees that they are provided
with the training whenever
needed.
Training is given whenever needed
Agree 15 25
Neutral 11 18.3333
Disagree 8 13.3333
Total 60 100
INTERPRETATION:
✔ 43.33% of the employees are strongly agree that training is
given whenever needed.
✔ 25% of the employees are agree that training is given whenever
needed.
✔ 18.33% of the employees are neutral about the fact that training is
given whenever
needed.
✔ 13.33% of the employees are disagree about the fact that training
is given whenever
needed.
✔ 0% of the employees are strongly disagree that training is given
whenever needed.
93
usefulness of the training program.
Training provided is useful
Agree 25 41.666667
Neutral 14 23.333333
Total 60 100
INTERPRETATION:
✔ 28.33% of the employees are strongly agree that training provided
is useful.
✔ 41.67% of the employees are agree that training provided is
useful.
✔ 23.33% of the employees are neutral about the fact that training
provided is useful.
✔ 6.67% of the employees are disagree about the fact that training
provided is useful.
✔ 0% of the employees are strongly disagree that training provided
is useful.
94
efficiency of the training program.
The training increases the performance
Agree 32 53.333333
Neutral 9 15
Total 60 100
INTERPRETATION:
✔ 20% of the employees are strongly agree that training increases
their performance.
✔ 53.33% of the employees are agree that training increases
their performance.
✔ 15% of the employees are neutral about the fact that training
increases their
performance.
✔ 15% of the employees are disagree about the fact that training
increases their
performance.
✔ 11.67% of the employees are strongly disagree that training
increases their performance.
95
Table showing opinion of the employees regarding
performance appraisal system.
I am satisfied with organization's techniques for evaluating my
performance
Strongly agree 9 15
Agree 38 63.3333
Neutral 3 5
Disagree 10 16.6667
Total 60 100
INTERPRETATION:
✔ 15% of the employees are strongly agree that they are satisfied
with organizations
techniques for evaluating their performance.
✔ 63.33% of the employees are agree that they are satisfied
with organizations
satisfied with organizations
✔ 16.67% of the employees are disagree about the fact that they are
satisfied with
organizations techniques for evaluating their performance.
with organizations
96
Table showing opinion of the employees regarding efficiency of
the appraisal system.
The appraisal policy of the organization improves the performance
Agree 43 71.6667
Neutral 4 6.66667
Disagree 8 13.3333
Total 60 100
INTERPRETATION:
✔ 8.33% of the employees are strongly agree that appraisal policy of
the organization
improves the performance.
✔ 71.67% of the employees are agree that appraisal policy of
the organization
✔ 6.67% of the employees are neutral about the fact that appraisal
policy of the
organization improves the performance.
✔ 13.33% of the employees are disagree about the fact that appraisal
policy of the
organization improves the performance.
✔ 0% of the employees are strongly disagree that appraisal policy of
the organization
97
Table showing opinion of the employees about fairness of
appraisal system.
Performance appraisal of the employee is not effected by personal
biasness
Strongly agree 9 15
Agree 22 36.6667
Neutral 16 26.6667
Disagree 9 15
Total 60 100
INTERPRETATION:
✔ 15% of the employees are strongly agree that performance
appraisal of the employee is
not effected by personal biasness.
✔ 36.67% of the employees are agree that performance
appraisal of the employee is
not effected by personal biasness.
✔ 26.67% of the employees are neutral about the fact that
performance appraisal of the
employee is not effected by personal biasness.
✔ 15% of the employees are disagree about the fact that
performance appraisal of the
✔ 6.66% of the employees are strongly disagree that performance
appraisal of the
98
Table showing opinion of the employees that they are paid fair
amount for their work.
I feel I’m being paid a fair amount for my work
Agree 29 48.333333
Neutral 5 8.3333333
Disagree 0 0
Total 60 100
INTERPRETATION:
✔ 38.33% of the employees are strongly agree that they are paid fair
amount for their
work.
✔ 48.33% of the employees are agree that they are paid fair
paid fair amount for their
work.
✔ 0% of the employees are disagree about the fact that they are paid
fair amount for their
work.
✔ 5% of the employees are strongly disagree that they are paid fair
99
Table showing opinion of the employees that they are provided
with proportionate salary.
I am provided with commensurate salary
Agree 35 58.3333
Neutral 4 6.66667
Disagree 0 0
Total 60 100
INTERPRETATION:
✔ 30% of the employees are strongly agree that they are provided
with commensurate
salary.
✔ 58.33% of the employees are agree that they are provided
with commensurate
salary.
provided with
commensurate salary.
provided with
commensurate salary.
with commensurate
salary.
100
Table showing opinion of the employee that their wages are at
par with the wages in the
industry.
Our wages are at par with the wages in the industry
Strongly agree 9 15
Agree 43 71.666667
Neutral 5 8.3333333
Disagree 0 0
Total 60 100
INTERPRETATION:
✔ 15% of the employees are strongly agree that their wages are at
par with the wages in
the industry.
✔ 71.66% of the employees are agree that their wages are at
par with the wages in the
industry.
✔ 8.33% of the employees are neutral about the fact that their wages
are at par with the
wages in the industry.
✔ 0% of the employees are disagree about the fact that their wages
are at par with the
wages in the industry.
✔ 5% of the employees are strongly disagree that their wages are at
par with the wages in
the industry.
101
Table showing opinion of the employee that they are provided
with sufficient allowances.
I’m satisfied with allowances provided by the organization
Agree 18 30
Neutral 3 5
Disagree 0 0
Total 60 100
INTERPRETATION:
satisfied with the allowances
provided to them.
✔ 30% of the employees are agree that they are satisfied with the
allowances provided to
them.
satisfied with the allowances
provided to them.
satisfied with the
allowances provided to them.
with the allowances
provided to them.
102
Table showing opinion of the employee regarding the
promotion policy of the organization.
I am satisfied with promotion policies of the organization
Agree 32 53.3333
Neutral 5 8.33333
Disagree 4 6.66667
Total 60 100
INTERPRETATION:
satisfied with promotion
policy.
with promotion policy.
policy.
policy.
✔ 8.33% of the employees are strongly disagree that they are
policy.
103
Table showing opinion of the employee that they are rewarded
for their innovative ideas.
I am rewarded for the innovative ideas
Strongly agree 3 5
Agree 35 58.3333
Neutral 10 16.6667
Disagree 7 11.6667
Total 60 100
INTERPRETATION:
✔ 5% of the employees are strongly agree that they are rewarded
for their innovative ideas.
✔ 58.33% of the employees are agree that they are rewarded
for their innovative
ideas.
rewarded for their
innovative ideas.
rewarded for their
innovative ideas.
rewarded for their innovative
ideas.
104
Table showing opinion of the employee that they are rewarded
for their performance as a
motivational technique.
I am rewarded for my performance
Strongly agree 6 10
Agree 35 58.3333
Neutral 10 16.6667
Disagree 5 8.33333
Total 60 100
INTERPRETATION:
✔ 10% of the employees are strongly agree that they are rewarded
✔ 58.33% of the employees are agree that they are rewarded
rewarded for their
performance.
rewarded for their
performance.
rewarded for their
performance.
105
Table showing opinion of the employee about transport
facility.
The organization has adequate transport facility
Agree 9 15
Neutral 0 0
Disagree 0 0
Total 60 100
INTERPRETATION:
✔ 85% of the employees are strongly agree that organization
has adequate transport
facility.
✔ 15% of the employees are agree that organization has adequate
transport facility.
✔ 0% of the employees are neutral about the fact that organization
facility.
✔ 0% of the employees are disagree about the fact that organization
facility.
✔ 0% of the employees are strongly disagree that organization has
adequate transport
facility.
106
Table showing opinion of the employee about medical
facilities.
The organization has adequate medical facilities
Agree 16 26.6667
Neutral 0 0
Disagree 0 0
Total 60 100
INTERPRETATION:
✔ 73.33% of the employees are strongly agree that
organization has adequate medical
facility.
✔ 26.67% of the employees are agree that organization has adequate
medical facility.
has adequate medical
facility.
✔ 0% of the employees are disagree that organization has adequate
medical facility.
✔ 0% of the employees are strongly disagree that organization has
adequate medical
facility.
107
Table showing opinion of the employee that they are provided
with benefits for their
family.
I am provided by benefits for the family
Agree 25 41.666667
Neutral 0 0
Disagree 0 0
Total 60 100
INTERPRETATION:
provided with benefits for
the family.
✔ 41.67% of the employees are agree that they are provided with
benefits for the family.
the family.
the family.
with benefits for the
family.
108
Table showing opinion of the employee about refreshment
facilties.
I’m satisfied with the refreshment facilities
Agree 23 38.333333
Neutral 13 21.666667
Disagree 0 0
Total 60 100
INTERPRETATION:
satisfied with refreshment
facility.
with refreshment facility.
satisfied with
refreshment facility.
facility.
facility.
109
Table showing opinion of the employee about rest room and
lunch room
We are provided with the rest and lunch room and they are good
enough
Agree 17 28.3333
Neutral 4 6.66667
Disagree 4 6.66667
Total 60 100
INTERPRETATION:
✔ 55% of the employees are strongly agree that rest room and
lunch room are good
enough.
✔ 28.33% of the employees are agree that rest room and lunch room
are good enough.
✔ 6.67% of the employees are neutral about the fact that rest room
and lunch room are
good enough.
✔ 6.67% of the employees are disagree about the fact that rest room
and lunch room are
good enough.
✔ 3.33% of the employees are strongly disagree that rest room and
lunch room are good
enough.
110
Table showing opinion of the employees about parking facility.
Parking facilities provided for our vehicles are satisfactory
Agree 16 26.6667
Neutral 4 6.66667
Disagree 3 5
Total 60 100
INTERPRETATION:
✔ 61.67% of the employees are strongly agree that parking
facility is satisfactory.
✔ 26.67% of the employees are agree that parking facility is
satisfactory.
✔ 6.67% of the employees are neutral about the fact that parking
✔ 5% of the employees are disagree about the fact that parking
✔ 0% of the employees are strongly disagree that parking facility is
satisfactory.
111
Table showing opinion of the employees about first aid faciltiy
I’m satisfied with the first aid facilities
Agree 24 40
Neutral 3 5
Disagree 0 0
Total 60 100
INTERPRETATION:
satisfied with first aid facility.
✔ 40% of the employees are agree that they are satisfied with first aid
facility.
satisfied with first aid
facility.
satisfied with first aid
facility.
with first aid facility.
112
Table showing opinion of the employees about loan facility and
other welfare benefits.
Satisfied with Loan facilities and other personal welfare benefits
offered by company
Agree 35 58.3333
Neutral 4 6.66667
Disagree 0 0
Total 60 100
INTERPRETATION:
✔ 35% of the employees are strongly agree that they are satisfied
with loan facility and
other personal welfare benefits offered by the company.
satisfied with loan
facility and other personal welfare benefits offered by the company.
satisfied with loan facility
and other personal welfare benefits offered by the company.
113
Table showing opinion of the employees regarding job
security.
My organization provides me job security
Agree 41 68.333333
Neutral 0 0
Disagree 0 0
Total 60 100
INTERPRETATION:
✔ 31.67% of the employees are strongly agree that organization
provides job security.
✔ 68.33% of the employees are agree that organization
✔ 0% of the employees are disagree about the fact that organization
✔ 0% of the employees are strongly disagree that organization
114
Table showing opinion of the employees about the criteria of
job security.
My job security is based on my performance
Agree 35 58.3333
Neutral 1 1.66667
Disagree 3 5
Total 60 100
INTERPRETATION:
✔ 30% of the employees are strongly agree that job security is based
on their performance.
✔ 58.33% of the employees are agree that job security is
based on their performance.
✔ 1.67% of the employees are neutral about the fact that job security
is based on their
performance.
✔ 5% of the employees are disagree about the fact that job security
is based on their
performance.
✔ 5% of the employees are strongly disagree that job security is
based on their
performance.
115
Table showing opinion of the employees about the basic
principal on which job security is
provided to the employee.
The job security is based on workers welfare principle
Agree 39 65
Neutral 1 1.6666667
Disagree 0 0
Total 60 100
INTERPRETATION:
✔ 33.33% of the employees are strongly agree that job security is
based on workers
welfare principle.
✔ 65% of the employees are agree that job security is based
on workers welfare
principle.
✔ 1.67% of the employees are neutral about the fact that job security
is based on workers
welfare principle.
✔ 0% of the employees are disagree about the fact that job security
is based on workers
welfare principle.
✔ 0% of the employees are strongly disagree that job security is
based on workers welfare
principle.
116
Table showing opinion of the employees about workers
participation in management
decisions.
Workers are given due recognition in the management decisions
Strongly agree 9 15
Agree 37 61.666667
Neutral 6 0
Disagree 6 10
Total 60 100
INTERPRETATION:
✔ 15% of the employees are strongly agree that workers are given
due recognition in
management decisions.
✔ 61.66% of the employees are agree that workers are given
due recognition in
✔ 10% of the employees are neutral about the fact that workers are
given due recognition
in management decisions.
✔ 10% of the employees are disagree about the fact that workers are
given due recognition
in management decisions.
✔ 3.33% of the employees are strongly disagree that workers are
given due recognition in
117
Table showing opinion of the employees about decision making
standards and plans of the
organization.
Satisfied with the decision making standards and plans of the
organization
Agree 34 56.6667
Neutral 9 15
Disagree 3 5
Total 60 100
INTERPRETATION:
satisfied with decision making
standards and plans of the organization.
with decision making
satisfied with decision
making standards and plans of the organization.
satisfied with decision
making standards and plans of the organization.
with decision making
118
Table showing opinion of the employees that their suggestions
are given due importance in
decision making process and for implementing any change in
their respective department.
Opinion given is due importance in decision making & for any change in
respective department
Agree 31 51.666667
Neutral 8 13.333333
Total 60 100
INTERPRETATION:
✔ 28.33% of the employees are strongly agree that opinion given is
due importance in
decision making and for any change in respective department.
✔ 51.67% of the employees are agree that opinion given is due
importance in decision
making and for any change in respective department.
✔ 13.33% of the employees are neutral about the fact that opinion
given is due importance
in decision making and for any change in respective department.
✔ 6.67% of the employees are disagree about the fact that opinion
given is due importance
in decision making and for any change in respective department.
✔ 0% of the employees are strongly disagree that opinion given is
due importance in
decision making and for any change in respective department.
119
Table showing opinion of the employees regarding
effectiveness of grievance handling
procedure.
The grievance handling procedure is effective
Agree 46 76.666667
Neutral 6 10
Disagree 0 0
Total 60 100
INTERPRETATION:
✔ 13.33% of the employees are strongly agree that the grievance
handling procedure is
effective.
✔ 76.67% of the employees are agree that the grievance
effective.
✔ 10% of the employees are neutral about the fact that the grievance
effective.
✔ 0% of the employees are disagree about the fact that the grievance
effective.
✔ 0% of the employees are strongly disagree that the grievance
effective.
120
Table showing opinion of the employees that they are able to
freely communicate their
grievances.
I am able to freely communicate my grievance
Agree 44 73.3333
Neutral 2 3.33333
Disagree 0 0
Total 60 100
INTERPRETATION:
✔ 23.33% of the employees are strongly agree that they are able to
freely communicate
their grievance.
✔ 73.33% of the employees are agree that they are able to
grievance.
able to freely
communicate their grievance.
✔ 0% of the employees are disagree about the fact that they are able
to freely communicate
their grievance.
✔ 0% of the employees are strongly disagree that they are able to
grievance.
121
Table showing opinion of the employees about awareness of
employees regarding the
I am aware of the quality standards of the organization
Agree 19 31.666667
Neutral 0 0
Disagree 0 0
Total 60 100
INTERPRETATION:
aware of the quality
standards of the organization.
✔ 31.67% of the employees are agree that they are aware of the
quality standards of the
organization.
✔ 0% of the employees are neutral about the fact that they are aware
of the quality
aware of the quality
✔ 0% of the employees are strongly disagree that they are aware of
the quality standards of
the organization.
122
satisfied with the ISO/QS
I am satisfied with the ISO/QS Certificate of the company
Agree 20 33.3333
Neutral 0 0
Disagree 0 0
Total 60 100
INTERPRETATION:
certificate of the company.
✔ 33.33% of the employees are agree that they are satisfied with the
ISO/QS certificate of
the company.
with the ISO/QS
123
Table showing opinion of the employees about the adaptability
of employees with changes
due to ISO/QS certification.
I am adaptable to the changes due to ISO/QS certification
Agree 21 35
Neutral 2 3.3333333
Disagree 0 0
Total 60 100
INTERPRETATION:
adaptable to changes due
to ISO/QS certification.
✔ 35% of the employees are agree that they are adaptable to
changes due to ISO/QS
certification.
adaptable to changes due
to ISO/QS certification.
adaptable to changes due to
ISO/QS certification.
✔ 0% of the employees are strongly disagree that they are
adaptable to changes due to
ISO/QS certification.
124
happy to changes in the company
or not.
I am happy and acceptable to the changes
Agree 35 58.333333
Neutral 2 3.3333333
Disagree 0 0
Total 60 100
INTERPRETATION:
✔ 38.33% of the employees are strongly agree that they are happy
and acceptable to
changes.
✔ 58.33% of the employees are agree that they are happy and
acceptable to changes.
happy and acceptable to
changes.
happy and acceptable to
changes.
✔ 0% of the employees are strongly disagree that. they are happy
and acceptable to
changes.
125
willingness to work in the
company.
I love my job and to work in this organization
Agree 11 18.333333
Neutral 5 8.3333333
Disagree 0 0
Total 60 100
INTERPRETATION:
✔ 73.33% of the employees are strongly agree that they their
job and to work in
PCCPL.
✔ 18.33% of the employees are agree that they their job and to work
in PCCPL.
✔ 8.33% of the employees are neutral about the fact that they their
job and to work in
PCCPL.
✔ 0% of the employees are disagree about the fact that they their job
and to work in
PCCPL.
✔ 0% of the employees are strongly disagree that they their job and
to work in PCCPL.
126
Table showing opinion of the employees that their work life is
meaningful.
My work life is meaningful
Agree 11 18.3333
Neutral 5 8.33333
Disagree 0 0
Total 60 100
INTERPRETATION:
✔ 73.33% of the employees are strongly agree that their work
life is meaningful.
✔ 18.33% of the employees are agree that their work life is
meaningful.
✔ 8.33% of the employees are neutral about the fact that their work
life is meaningful.
✔ 0% of the employees are disagree about the fact that their work life
is meaningful.
✔ 0% of the employees are strongly disagree that their work life is
meaningful.
127
Table showing opinion of the employees that how valuable
their work is for the company.
I consider that my work is valuable in attaining organizational goals
Agree 33 55
Neutral 0 0
Disagree 0 0
Total 60 100
INTERPRETATION:
✔ 45% of the employees are strongly agree that they consider their
work is valuable in
attaining organizational goals.
✔ 55% of the employees are agree that they consider their
work is valuable in
✔ 0% of the employees are neutral about the fact that they consider
their work is valuable
in attaining organizational goals.
✔ 0% of the employees are disagree about the fact that they consider
their work is valuable
in attaining organizational goals.
✔ 0% of the employees are strongly disagree that they consider
their work is valuable in
128
opportunities to use their ability.
I have adequate opportunity to use my ability
Agree 18 30
Neutral 6 10
Total 60 100
INTERPRETATION:
✔ 56.67% of the employees are strongly agree that they have
adequate opportunity to
use their ability.
✔ 30% of the employees are agree that they have adequate
opportunity to use their ability.
✔ 10% of the employees are neutral about the fact that they have
use their ability.
✔ 3.33 of the employees are disagree about the fact that they have
use their ability.
✔ 0% of the employees are strongly disagree that they have
adequate opportunity to use
their ability.
129
Table showing opinion of the employees about their overall
satisfaction level in the
company.
Overall, I’m satisfied with my job
Agree 10 16.6667
Neutral 5 8.33333
Disagree 0 0
Total 60 100
INTERPRETATION:
overall satisfied with their
job in PCCPL.
✔ 16.67% of the employees are agree that they are overall satisfied
with their job in
PCCPL.
overall satisfied with
their job in PCCPL.
✔ 0% of the employees are disagree that they are overall satisfied
with their job in PCCPL.
✔ 0% of the employees are strongly disagree that they are overall
satisfied with their job in
PCCPL.
130
4. B) DATA ANALYSIS WITH TWO WAY TABLE
TWO WAY TABLE – 1
Relationship Between Gender And Level Of Satisfaction
INFERENCE:
From the above table the percentage of highly satisfied is in female
group followed by the male
group. The percentage of medium satisfied is high in males and low
satisfied again is highest in
female group.
TWO WAY TABLE – 2
Relationship Between Marital Status And Level Of Satisfaction
Marital Status level of satisfaction Total
Highly Satisfied Medium Satisfaction Low Satisfaction
Married 9 (16%) 34 (62%) 12 (22%) 55
Unmarried 2 (40%) 2 (40%) 1 (20%) 5
Total 11 36 13 60
INFERENCE:
The above table reveals that the percentage of highly satisfied is in
unmarried group followed by
married group. And in medium and low satisfaction highest percentage
is in married group and
followed by unmarried group.
131
TWO WAY TABLE – 3
Relationship Between Age And Level Of Satisfaction
Gender level of satisfaction Total
Male 10 (18%) 35 (64%) 10 (18%) 55
Female 1 (20%) 1(20%) 3 (60%) 5
Total 11 36 13 60
Age level of satisfaction Total
Young Age 1 (33.33%) 1 (33.33%) 1 (33.33%) 3
Middle Age 7 (15%) 30 (62%) 11 (23%) 48
Old Age 3 (33%) 5 (56%) 1 (11%) 9
Total 11 36 13 60
INFERENCE:
The above table reveals that the percentage of highly satisfied is in the
Young age group
(33.33%) and 33 % of highly satisfied in the old age group and followed
by Middle age group.
And in medium satisfaction 62% is the highest percentage in middle
age group and followed by
old age group with 56% of satisfaction. The highest percentage of
33.33% in low satisfaction is
in young age group.
TWO WAY TABLE – 4
Relationship Between Qualification And Level Of Satisfaction
Qualification level of satisfaction Total
School Level 5 (12%) 29 (67%) 9 (21%) 43
Graduate 5 (36%) 7 (50%) 2 (14%) 14
Post Graduate 1 (33%) 0 2 (67%) 3
Total 11 36 13 60
INFERENCE:
From the above table the percentage of highly satisfied is more among
the respondents of
graduate level group and followed by the 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 post graduate level group i.e. 67%.
132
TWO WAY TABLE – 5
Relationship Between Experience And Level Of Satisfaction
Experience level of satisfaction Total
Highly
Satisfied
Medium
Satisfaction
Low
Satisfaction
Less than or Equal to 5 years 2 (28.5%) 2 (28.5%) 3 (43%) 7
6 years - 10 years 2 (16.7%) 8 (66.6%) 2 (16.7%) 12
More than or Equal to 11 years 7 (17.1%) 26 (63.4%) 8 (19.5%)
41
Total 11 36 13 60
INFERENCE:
The above table reveals that the respondents having less than or equal
to 5 years of experience
have derived highest satisfaction level with 28.5%. The percentage of
medium satisfaction is
high in the category of 6 years - 10 years group i.e. 66.6%. And in low
satisfaction level again
the percentage of less than or equal to 5 years of experience is high
i.e. 43%.
TWO WAY TABLE – 6
Relationship Between Experience And Level Of Satisfaction
Monthly Salary level of satisfaction Total
Highly
Satisfied
Medium
Satisfaction
Low
Satisfaction
Less than or Equal to Rs. 10000 3 (43%) 2 (28.5%) 2 (28.5%) 7
Rs. 10001 - Rs. 15000 1 (5%) 15 (79%) 3 (16%) 19
More than or Equal to Rs 15001 7 (20%) 19 (56%) 8 (24%) 34
Total 11 36 13 60
INFERENCE:
From the above table the percentage of highly satisfied respondents is
more in the group with
less than or equal to Rs. 10000 monthly salary i.e. 43%. It was followed
by the groups of more
than or equal to Rs. 15001 i.e. 20%. In medium satisfaction the highest
percentage is in
Rs.10,001 – Rs.15,000 group i.e. 79%.
133
4. C) DATA ANALYSIS WITH CHI-SQUARE TEST OR TEST
OF
HYPOTHESIS
CHI-SQUARE TEST:
Chi-square test is applied to test the goodness of fit, to verify the
distribution of observed data
with assumed theoretical distribution. Therefore it is a measure to
study the divergence of actual
and expected frequencies; Karl Pearson’s has developed a method to
test the difference between
the theoretical (hypothesis) & the observed value.
Chi – square test (X2) = (O – E) 2/E
Degrees Of Freedom = V = (R – 1) (C -1)
Were, ‘O’ = Observed Frequency
‘E’ = Expected Frequency
‘R’ = Number of Rows
‘C’ = Number of Columns
For all the chi-square test the table value has taken @ 5% level of
significance.
CHI – SQUARE TEST IS CONDUCTED TO EXTENT THE
RELATIONSHIP
BETWEEN THE GENDER AND LEVEL OF SATISFACTION.
Hypothesis: 1
HO: There is no significant relationship between gender and level of
satisfaction.
O E (O-E) (O-E)2 (O-E)2/E
10 10.1 -0.1 0.01 0.00099
1 0.9 0.1 0.01 0.01111
35 33 2 4 0.12121
1 3 -2 4 1.33333
10 11.9 -1.9 3.61 0.30336
3 1.1 1.9 3.61 3.28182
Total 5.05183
Degree of freedom - 2
Table value – 5.99
Calculated value – 5. 05183
Since the calculated value is less than the table value. So the Null
hypothesis is accepted. Hence,
there is no significant relationship between gender and level of
satisfaction.
134
RELATIONSHIP
BETWEEN THE MARITAL STATUS AND LEVEL OF SATISFACTION.
Hypothesis: 2
HO: There is no significant relationship between marital status and
level of satisfaction.
O E (O-E) (O-E)2 (O-E)2/E
9 10.1 -1.1 1.21 0.1198
2 0.9 1.1 1.21 1.34444
34 33 1 1 0.0303
2 3 -1 1 0.33333
12 11.9 0.1 0.01 0.00084
1 1.1 -0.1 0.01 0.00909
Total 1.83781
Calculated value – 1.83781
there is no significant relationship between marital status and level of
satisfaction.
RELATIONSHIP
BETWEEN THE AGE AND LEVEL OF SATISFACTION.
Hypothesis: 3
HO: There is no significant relationship between age and level of
satisfaction.
O E (O-E) (O-E)2 (O-E)2/E
1 0.55 0.45 0.2025 0.36818
7 8.8 -1.8 3.24 0.36818
3 1.65 1.35 1.8225 1.10455
1 1.8 -0.8 0.64 0.35556
30 28.8 1.2 1.44 0.05
5 5.4 -0.4 0.16 0.02963
1 0.65 0.35 0.1225 0.18846
11 10.4 0.6 0.36 0.03462
1 1.95 -0.95 0.9025 0.46282
Total 2.96199
135
there is no significant relationship between age and level of
satisfaction.
RELATIONSHIP
BETWEEN THE EDUCATIONAL QUALIFICATION AND LEVEL OF
SATISFACTION.
Hypothesis: 4
HO: There is no significant relationship between educational
qualification and level of
satisfaction.
O E (O-E) (O-E)2 (O-E)2/E
5 7.88 -2.88 8.2944 1.05259
5 2.57 2.43 5.9049 2.29763
1 0.55 0.45 0.2025 0.36818
29 25.8 3.2 10.24 0.3969
7 8.4 -1.4 1.96 0.23333
0 1.8 -1.8 3.24 1.8
9 9.32 -0.32 0.1024 0.01099
2 3.03 -1.03 1.0609 0.35013
2 0.65 1.35 1.8225 2.80385
Total 9.31359
there is no significant relationship between educational qualification of
employee and their level
of satisfaction.
136
RELATIONSHIP
BETWEEN THE EXPERIENCE AND LEVEL OF SATISFACTION.
Hypothesis: 5
HO: There is no significant relationship between experience and level
of satisfaction.
O E (O-E) (O-E)2 (O-E)2/E
2 1.28 0.72 0.5184 0.405
2 2.2 -0.2 0.04 0.01818
7 7.52 -0.52 0.2704 0.03596
2 4.2 -2.2 4.84 1.15238
8 7.2 0.8 0.64 0.08889
26 24.6 1.4 1.96 0.07967
3 1.52 1.48 2.1904 1.44105
2 2.6 -0.6 0.36 0.13846
8 8.88 -0.88 0.7744 0.08721
Total 3.44681
there is no significant relationship between experience of employee
and their level of
satisfaction.
137
RELATIONSHIP
BETWEEN THE MONTHLY SALARY AND LEVEL OF
SATISFACTION.
Hypothesis: 6
HO: There is no significant relationship between monthly salary and
level of satisfaction.
O E (O-E) (O-E)2 (O-E)2/E
3 1.28 1.72 2.9584 2.31125
1 3.48 -2.48 6.1504 1.76736
7 6.24 0.76 0.5776 0.09256
2 4.2 -2.2 4.84 1.15238
15 11.4 3.6 12.96 1.13684
19 20.4 -1.4 1.96 0.09608
2 1.52 0.48 0.2304 0.15158
3 4.12 -1.12 1.2544 0.30447
8 7.36 0.64 0.4096 0.05565
Total 7.06817
there is no significant relationship between monthly salary and level of
satisfaction.
138
4. D) DESCRIPTIVE STATISTICS TABLE
Sr.
No.
Factors Combined
Mean
Remarks
1 Work Environment And Nature of Work 1.85 Good
2 Relationship With Seniors And Colleagues 1.68 Good
3 Communication And Motivation 1.66 Good
4 Training Program And Performance Appraisal System 2.18
Good
5 Pay And Promotion 2.1 Good
6 Welfare Facility 1.55 Good
7 Job Security 1.78 Good
8 Management Style And Grievance Handling 2 Good
9 Quality Policy 1.43 Excellent
10 Job Factors 1.44 Excellent
139
CHAPTER - V
5. A) SUMMARY OF FINDING S
5. A.i) F indings from Simple Percentage Analysis and
Descriptive Statistics
1) The number of male employees in the company is more with the
percentage of 91.67%;
where as female employees are only 8.33%.
2) The percentage of married employees in the company is more i.e.
91.67% than the
unmarried one.
3) Majority of the employees belongs to the age group of 26years-
50years.
4) The data regarding the qualification of the employees’ shows that
majority of the
employees have studied only up to school level i.e. 73.33%, which is
followed by
graduates with 21.67%. The percentage level of post graduates is very
low i.e. 5%.
5) Majority of employees experience with 68.33% have more than 11
years of experience.
6) Data collected to know the monthly salary of the employees depict
that majority of the
employee got monthly salary more than Rs. 15001 with 58.33%.
7) The respondents are satisfied with the environment and nature of
work environment and
nature of work as their mean value is near to 1.85 which is quite good.
8) The respondent’s relationship with the seniors and colleagues is also
good as their mean
value is 1.68 is an agreeable level.
9) Communication And Motivation of employees by their superiors also
seems to be good
as mean value is 1.66.
10) Study reveals that training program and performance appraisal
system is good with an
agreeable value of 2.18.
11) Employees are satisfied with pay and promotion with agreeable
value of 2.1.
12)Welfare Facility provided by the company is also satisfactory with a
good value of
combined mean i.e. 1.55
13) Employees are also satisfied with job security provided by the
company the mean value
is 1.78; which is an agreeable level.
14)Management style and grievance handling system is good with
agreeable value of mean
i.e. 2.
15)Quality policy, employees awareness about it and employees
acceptance level for
changes is excellent with mean value 1.43.
140
16)Job factors such as opportunities, quality of work life and overall
satisfaction of
employee with regard to job is also excellent with mean value of 1.44.
5. A.ii) Findings from Two - Way Table
1) Highly satisfied employees are more among the female respondents
than the male
respondents.
2) Highly satisfied employees are more among the unmarried persons
than the married one.
3) Highly satisfied employees are more among the age group of young
employee.
4) Highly satisfied employees are more among the graduate than the
postgraduate
employees.
5) Highly satisfied employees are with less than 6 years of experience.
6) Highly satisfied employees are with less than Rs.10001/- income
group.
5. A.iii) Finding from Chi- square analysis
1) There is no significant relationship between gender and level of
satisfaction.
2) There is no significant relationship between marital status and level
of satisfaction.
3) There is no significant relationship between age and level of
satisfaction.
4) There is no significant relationship between educational qualification
and level of
satisfaction.
5) There is no significant relationship between experience and level of
satisfaction.
6) There is no significant relationship between monthly salary and level
of satisfaction.
5. A.iv) Findings from self observation
1) Some employees are not satisfied with promotion policy of the
company.
2) Management is handicapped by strong labour union.
3) Some employees are not satisfied with their pay scale.
4) There is no training department in the organization. Thus,
employees are not provided
with proper training from time to time.
5) The rest rooms are not properly maintained.
6) Workers are not multitasked.
7) Maximum selections in the company are based on the basis of
previous employee
reference, thus company itself limits its scope of getting highly skilled
employee.
8) Some employees take undue advantages of lenient policies of the
management.
141
10)At present the MARKETING department has been simply restricted
to the salary making, recording
the attendance and house keeping etc. the Job responsibilities should
be widened enough
other than the administration work of the department
11)MOCK GRILL is said to be an artificial situation created by the
management so as to
make aware the employees as to how to act or what procedure and
guidelines to follow in
case of any uncertain and unwanted accidental or state of emergency.
Mock grill enables
the company employees so as to avoid panic behavior and follow the
proper guideline in
case of any emergency.
But Right now at PCCPL it is not being properly conducted because all
“the departments
are instead informed regarding the date and time when the mock grill
is to be conducted
with the help of the circular. This is completely wrong.
5. B) SUGGESTIONS
1) Training department should be their in the company, if not possible
then this
responsibility should be assigned to the Pilot Plant. So that when ever
required training
should be imparted to the employees under the simulated conditions.
It will enhance
performance of the employee and overall profitability of the company.
By doing so the
company can avert miss happenings, as it has faced in the month of
April.
2) Most of the workers are school level. Since they have to work in a
very risky
environment with dangerous chemicals, so their education level should
be a little bit high.
For this company should tie up with some trust or school to provide
part time education
to the employees. This will enhance their analytical ability, level of
understanding and so
on. This will help the employees in doing their work efficiently and
effectively and thus
ultimately enhance the growth of the company.
3) As mentioned above the management is handicapped by the strong
labour union, due to
which some times it couldn’t take appropriate decisions. This might
affect its profitability
and also breach its code of conduct. The reason which I found behind it
is that most of
the selection in the company is based on the reference of the
employees. Thus new
employees have already close relations with the old one and instead of
bringing some
thing new with them they follow the same path. So in order to over
come this problem I
would strongly recommend that the number of selections on the basis
of references
should be reduced and direct recruitment and selecting should be
encouraged.
142
4) Job rotation may be introduced to give the employees a diverse
background.
5) Company should extend its scope of selection from reference of
employees to other like
campus placement, advertisements, e-recruitment etc.
6) Rest rooms should be maintained and cleaned properly.
7) Some employees are not satisfied with the promotion policy. They
complained against
the diplomatic behavior of their seniors. Thus they suggest that
promotions should be
given only in genuine and fair cases and not on the basis of references
of the respective
heads or on the basis of liking towards any specific employee.
8) As per the company law, every company especially working in
pharmaceutical or
chemical based company a safety officer if possible and one
MARKETER head should conduct the
MOCK GRILL with knowledge of the technical head. But “when the
MOCK GRILL to
be conducted it should be not being disclosed to other departments as
such the real state
of the organization in case of emergency will not come out in true
state.”
Hence as per the research study I would strongly recommend that
MOCKL GRILL
should be conducted in a proper and a systematic manner and not just
for the sake of
completion of a formality.
9) Another way MARKETING though which the MARKETER can become
more effective is by engaging the
department into other activities other than housekeeping, salary
making or other admin
work. Sessions like reader’s Session and meditational sessions.
Such activities will not
only help the MARKETING department to come up with a change in its
day to day activities but the
employees too will get a change to get a kind of stable state of mind,
peace of mind and
would like to share their knowledge with each other. The employees
will come to know
facts that they didn’t knew earlier.
Not only this but a Gathering Sessions can be conducted where the
employees can come
with their families and this will help to create a sense of close bonding
with each other
and ultimately a sense of belongingness.
10)It has been found that as such in spite that the GUTKHAS AND
PANMASALAS are not
allowed in the organizational premises and strictly not in the plant area
still employees
carry such restrictive materials in the company as well as in the plant.
Apart from this
mobile phones are also not allowed in the plant area as such the
vibrations of the mobiles
in certain sensitive areas cause severe effect on the material being
manufactured.
143
Hence as per the research study for around I would strongly
recommend that the entry of
prohibited eatables should not be allowed to the company premises.
This is the
responsibility of the security so as to conduct the checking at the
security gate properly so
that mobile phones or other restricted eatables are not made to enter
the company
premises.
For this I would strongly recommend that smoking censors or the
mobile censors should
be implanted in the plant areas so that continuous watch can be kept
over the workers as
well as the unauthorized staff members who carry cell phones or
restricted eatables in the
plant premises.
144
5. C) CONCLUSION
It was a wonderful experience for me to be a part of PCCPL for around
two month and working
on a research project for the company was a tremendously excellent
experience that made me
learn various aspects of an organization, areas of concern for an
organization, art of not just
surviving but proving its potential and extra caliber at time to time in
the Indian corporate sector.
I hope the organization will be benefited from this survey and with the
help of the
suggestions given the organization can improve its working further
more and the overall
satisfaction level in the organization might increase up to the excellent
level.
The workers of the firm are more satisfied comparing to the staffs.
Hence more focus should
be given in the satisfaction level of the employees in the staffs level.
The study on
employee’s satisfaction at PCCPL 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 and the results
obtained are free to nearly 80%. It is assured that the company may
get high boosted moral in the
organization provided some of the suggestions made in the report are
carried out.
The suggestion to set up a training department will definitely reduce
the number of miss
happenings.
Further from this survey I hope the organization will be benefited and
with the help of the
suggestions given the organization can improve its functioning and the
overall satisfaction level
in the organization and its performance will increase.
Overall I will rate Punjab Chemicals and Crop Protection Limited in “A”
category companies.
PCCPL MARKETING though its highly ethical values not only climbing
the ladder of growth year by year but
also fulfilling its responsibilities towards its employees and society.
145
APPENDIX
1) Glossary of Terms
2) Abbreviations
3) Questionnaire
146
1) Glossary of Terms
1) Contentment, 1
2) Impulse, 1
3) Consideration-style-leadership, 12
4) Rudimentary, 14
5) Synthetic dyestuffs, 14
6) Offshore, 14
7) Toiletries, 15
8) Varnishes, 15
9) Basic Chemicals, 16
10) Specialty Chemicals, 16
11) Knowledge Segment, 16
12) Membrane Cell Technology, 20
13) Downstream chemicals, 27
14) Green Revolution, 31
15) Bio-degradable pesticides, 32
16) Fungicides, 32
17) Nimpith, 32
18) Niche product, 32
19) Agrochemicals, 34
20) Debottlenecking, 37
21) Floriculture, 50
22) Contract Manufacturing, 53
147
2) Abbreviations
1) PCCPL - Punjab Chemicals and Crop Protection Limited
2) FTA - Free Trade Agreements
3) ADIL - Alpha Drugs India
4) GDP - Gross Domestic Production
5) SEZ - Special Economic Zone
6) PCPIR - Petrochemicals & Petroleum Investment Region
7) CWC - Chemical Weapons Convention
8) OPCW - Organization for Prohibition of Chemical Weapons
9) R&D - Research and Development
10)GDR - Global Depository Receipts
11)FCCB - Foreign Currency Convertible Bonds
12)EPS - Earning Per Share
13)GMP's - Good Manufacturing Practices
14)DC&PC - Department of Chemicals & Petrochemicals
15)UNDP - United Nations Development Programme
16)OCPF - Other Chemical Production Facilities
17)CSIR - Council for Scientific and Industrial Research
18)NCL - National Chemical Laboratory
19)NOCIL - National Organic Chemicals Industries Limited
20)IICT - Indian Institute of Chemical Technology
21)RRl - Regional Research Laboratory
22)EBIDTA - Earning before Interest, Depreciation, Tax and
Amortization
23)SSI - Small Scale Industries
24)MTA - Metric Tone per Annum
25)GATT - General Agreement on trade and tariff.
26)MOSPI - Ministry of Statistics and Program Implementation
27)PSIDC - Punjab State Industrial Development Corporation
28)DEO - Di-ethyl Oxalate
29)CARG - Compound annual growth rate
30)IIP - Index of Industrial Production
148
2) Questionnaire
“ A study o n employee welfare and satisfaction
in Punjab Chemicals and Cro p Protection Limited ”
The purpose of collecting such information is to know the level of
satisfaction among the
employees of Punjab Chemicals and Crop Protection Limited. Further it
will also help to know
the various job related and personal factors and their extent to which
they affect the satisfaction
level of employees, so that meaningful conclusions and suggestions
could be made in order to
make the human resource policies and practices of the company more
effective and efficient.
Dear respondents,
Your Co-operation in the context shall go a long way helping me to
draw conclusive
inferences for which I shall be grateful.
Note: Following are the questions that are to be duly filled up by the
candidate. It is being
strongly assured that secrecy shall be maintained at all the levels of
this research and the identity
of respondent will not be revealed. It is simply a part of research
project which is to be submitted
to SIKKIM MANIPAL UNIVERSITY in the partial fulfillment of the
requirements for the award of
the degree of Master of Business Administration.
Name of the employee : __________________________________
Employee code : __________________________________
Designation : __________________________________
Name of the department : __________________________________
Part – A (General Information)
Please tick ( ) at the appropriate place.
1. Gender : Male Female
2. Marital status : Married
Single
3. Age. 4.
Educational
qualification.
:
5. Your experience in PCCPL. 6. Monthly salary.
149
Please indicate your level of agreement in connection with the
following factors:
1= Strongly Agree, 2= Agree, 3= Neutral, 4= Disagree,
5=Strongly Disagree
Part – B (Work Environment And Nature Of Work)
S. No. Particulars 1 2 3 4 5
7. Your work is very challenging one
8. I feel I have too much work to do
9. Working hours are convenient for me I’m happy with my
work place
10. Adequate rest intervals are given
11. Management builds and maintains work relationship
12. Provided with sufficient tools and equipments needed to do
my work
13. I’m satisfied with the safety measures provided by my
25 years
26-50 years
50 years
School level
Graduate
Post Graduate
5 years
6-10 years
11 years
Rs. 10000
Rs. 10001-Rs. 15000
Rs. 15001
company
14. The lighting and other arrangements are satisfactory
15. I am mentally and/or physically exhausted at the end of a day
at work
Part – C (Relationship With Seniors And Colleagues)
16. I have proper superiors assistance
17. My boss considers my ideas too while making decision
18. I am appreciated for my performances
19. My boss is not partial
20. My Participation is welcomed
21. I can easily approach my superiors
22. Superiors are competent enough to guide
23. The colleagues of the organization are friendly
24. The colleagues are helpful in nature
25. All the workers share their Know-how
Part – D (Communication And Motivation)
26.
I feel that my Boss motivate me to achieve the organization
goal
27.
My supervisor motivates me to increase my efficiency at
times when I’m not productive
28. Communication seems good within this organization
29. Work assignments are explained clearly to me
150
Part – E (Training Program And Performance Appraisal System)
S.
No. Particulars 1 2 3 4 5
30.
I am satisfied with the training programs provided to
us
31. Training is given whenever needed
32. Training provided is useful
33. The training increases the performance
34.
I am satisfied with organization's techniques for
evaluating my performance
35.
The appraisal policy of the organization improves the
performance
36.
Performance appraisal of the employee is not effected by
personal biasness
Part – F (Pay And Promotion)
37. I feel I’m being paid a fair amount for my work
38. I am provided with commensurate salary
39. Our wages are at par with the wages in the industry
40. I’m satisfied with allowances provided by the
organization
41.
I am satisfied with promotion policies of the
organization
42. I am rewarded for the innovative ideas
43. I am rewarded for my performance
Part – G (Welfare Facility)
44. The organization has adequate transport facility
45. The organization has adequate medical facilities
46. I am provided by benefits for the family
47. I’m satisfied with the refreshment facilities
48. We are provided with the rest and lunch room and they
are good enough
49. Parking facilities provided for our vehicles are satisfactory
50. I’m satisfied with the first aid facilities
51. I’m satisfied with the Loan facilities and other personal
welfare benefits offered by company
Part – H (Job Security)
52. My organization provides me job security
53. My job security is based on my performance
54. The job security is based on workers welfare principle
151
Part – I (Management Style And Grievance Handling)
S.
No. Particulars
12345
55.
Workers are given due recognition in the management
decisions
56.
I am satisfied with the decision making standards and
plans of the organization
57. Opinion given is due importance in decision making and
for any change in respective department
58. The grievance handling procedure is effective
59. I am able to freely communicate my grievance
Part – J (Quality Policy)
60. I am aware of the quality standards of the organization
61.
I am satisfied with the ISO/QS Certificate of the
company
62. I am adaptable to the changes due to ISO/QS certification
63. I am happy and acceptable to the changes
Part – K (Job Factors)
64. I love my job and to work in this organization
65. My work life is meaningful
66.
I consider that my work is valuable in attaining
organizational goals
67. I have adequate opportunity to use my ability
68. Overall, I’m satisfied with my job
Any Suggestion:
_______________________________________________________________________
______
_______________________________________________________________________
______
_______________________________________________________________________
______
_______________________________________________________________________
______
____
Date: ____________________ Signature: ____________________
Thanks for your valuable time and response.
152
REFERENCES
[1]…. DeWayne P. Frazier, 2009, Job Satisfaction of International
Educators, Volume-xxii,
Boca Raton Publishers, Florida (USA), pp-2.
[2]…. DeWayne P. Frazier, 2009, Job Satisfaction of International
Educators, Volume-xxii,
Boca Raton Publishers, Florida (USA), pp-2.
[3]…. Ram Nath Sharma, S.S. Chandra, Atlantic Publishers &
Distributors (P) Ltd., India,
http://books.google.co.in/books?
id=ilptIa2gA2AC&printsec=frontcover&source=gbs
_navlinks_s#v=onepage&q=&f=false
[4]…. Edward J. Inderrieden, Timothy J. Keaveny, Robert E. Allen,
Marquettte University,
Milwaukee,
http://www.springerlink.com/content/xnk5017325022t80/fulltext.pdf
[5]…. Cheryl D. Krossa, Lawrence Livermore National Laboratory,
University of California,
California, http://www.osti.gov/bridge/servlets/purl/508727-
EoClLW/webviewable/
508727.pdf
[6]…. Steven W. Schmidt, Indiana University, Indianapolis,
https://scholarworks.iupui.edu/bitstream/handle/1805/276/Schmidt.pdf
?sequence=1
[7]…. Ayaz Khan, Qurtuba University of Science & IT, Pakistan,
http://www.qurtuba.edu.pk/jms/default_files/JMS/1_2/7_ayaz.pdf
[8]…. Julie Abbott, MCB UP Ltd U.K,
http://www.emeraldinsight.com/10.1108/13632540310807467
[9]…. Steven H. Appelbaum, Jacques Adam, Nadeem Javeri, Michel
Lessard, Jean-Pascal Lion,
Michel Simard, Silvana Sorbo, Emerald Group Publishing Limited, USA,
http://www.emeraldinsight.com/10.1108/01409170510629023
[10]….A.Sukumar, Government Arts College (Autonomous),
Coimbatore, India,
http://www.scribd.com/doc/4935831/Human-resourse-management-
Project-Employeesatisfaction-
in-professional-couriers-coimbatore
[11]….Reena Ali and M.Shakil Ahmed, COMSATS Institute of
Information Technology,
Pakistan, http://www.wbiconpro.com/22.Reena.pdf.
[12]….Chien-Wen Tsai, Emerald Group Publishing Limited, Japan,
http://www.emeraldinsight.com/10.1016/S1871-3173(08)02005-3
[13]….Hina SoMARKETINGab Kiani, Omama Khurshid,CASE ISB
Islamabad, Pakistan,
http://www.ep.liu.se/ecp/033/066/ecp0803366.pdf
153
[14]…. Assist. Prof. Dr. Hulusi Dogan , Adnan Menderes University,
Nazilli Vocational
School, Nazilli, http://eab.ege.edu.tr/pdf/9_2/C9-S2-M4.pdf
[15]…. Nilufar Ahsan, Zaini Abdullah, David Yong Gun Fie, Syed Shah
Alam, European
Journal of Social Sciences, Malaysia,
http://www.eurojournals.com/ejss_8_1_11.pdf
BIBLIOGRAPHY
Books Referred:
➢ K. Aswathappa, 2008, Human Resource Management, 5th ed., Tata
McGraw-Hill
Companies, New Delhi.
➢ L.M. Prasad, 2004, Principles and Practice of Management, 6th ed.,
Sultan Chand & Sons,
New Delhi.
➢ Naresh K. Malhotra, 2009, Marketing Research, 5th ed., Pearson
Education, New Delhi.
➢ Saiyadain, Mirza, 2008, Organisational Behaviour, 1st ed., Tata
McGraw-Hill Companies,
New Delhi.
➢ S.P. Gupta, 2004, Statistical Methods, 36th ed., Sultan Chand &
Sons, New Delhi.
➢ Shiwalika Karam Singh Saini, 2008, A Study on Employee Welfare &
Satisfaction in
Scot Edil Pharmacia Pvt. Ltd., Baddi (H.P), pp-33.
➢ Shiwalika Karam Singh Saini, 2008, A Study on Employee Welfare &
Satisfaction in
Scot Edil Pharmacia Pvt. Ltd., Baddi (H.P), pp-36.
Website Addresses:
➢ http://chemicals.nic.in/Annual%20Report2008-09.pdf
➢ http://chemicals.nic.in/
➢ http://Chemicals.nic.in/org/.html
➢ http://localhost/F:/MD.html
➢ http://www.ice.org.in/Vol4824/Evolution.pdf
➢ http://www.punjabchemicals.com/
➢
http://www.in.kpmg.com/TL_Files/Pictures/KPMG_Chemtech_Report.pdf
➢ http://www.mospi.gov.in/
➢ A.Sukumar, Government Arts College (Autonomous), Coimbatore,
India,
http://www.scribd.com/doc/4935831/Human-resourse-management-
Project-Employeesatisfaction-
in-professional-couriers-coimbatore
➢
http://www.moneycontrol.com/india/stockpricequote/chemicals/punjab-
chemicalscropprotection/
PCC03
154

Sikkim Manipal University Deepak Chauhan

Загружено:

Сведения о документе

Исходное описание:

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Sikkim Manipal University Deepak Chauhan

Загружено:

Авторское право:

Доступные форматы

SIKKIM MANIPAL UNIVERSITY

attitudes toward his job. Locke

SIMPLE PERCENTAGE TABLE – 8

Вам также может понравиться