INDUSTRY PROFILE

&
COMPANY PROFILE

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Introduction

The Indian food industry is poised for huge growth, increasing its contribution to world food
trade every year. In India, the food sector has emerged as a high-growth and high-profit
sector due to its immense potential for value addition, particularly within the food processing
industry.

Accounting for about 32 per cent of the country’s total food market, The Government of
India has been instrumental in the growth and development of the food processing industry.
The government through the Ministry of Food Processing Industries (MoFPI) is making all
efforts to encourage investments in the business. It has approved proposals for joint ventures
(JV), foreign collaborations, industrial licenses, and 100 per cent export oriented units.

Market Size
The Indian food and grocery market is the world’s sixth largest, with retail contributing 70
per cent of the sales. The Indian food processing industry accounts for 32 per cent of the
country’s total food market, one of the largest industries in India and is ranked fifth in terms
of production, consumption, export and expected growth. It contributes around 8.80 and 8.39
per cent of Gross Value Added (GVA) in Manufacturing and Agriculture respectively, 16 per
cent of India’s exports and six per cent of total industrial investment. The Indian gourmet
food market is currently valued at US$ 1.3 billion and is growing at a Compound Annual
Growth Rate (CAGR) of 20 per cent. India's organic food market is expected to increase by
three times by 2020.

The online food ordering business in India is in its nascent stage, but witnessing exponential
growth. With online food delivery players like FoodPanda, Zomato, TinyOwl and Swiggy
building scale through partnerships, the organised food business has a huge potential and a
promising future. The online food delivery industry grew at 180 per cent year-on-year with
an estimated Gross Merchandise Value (GMV) of US$ 300 million in 2019.

Investments
According to the data provided by the Department of Industrial Policies and Promotion
(DIPP), the food processing sector in India has received around US$ 7.54 billion worth of
Foreign Direct Investment (FDI) during the period April 2000-March 2020. The
Confederation of Indian Industry (CII) estimates that the food processing sectors have the

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potential to attract as much as US$ 33 billion of investment over the next 10 years and also to
generate employment of nine million person-days.
Some of the major investments in this sector in the recent past are:

 Global e-commerce giant, Amazon is planning to enter the Indian food retailing sector
by investing US$ 518 million in the next five years, as per MrHarsimratKaurBadal,
Minister of Food Processing Industries, Government of India.
 Parle Agro Pvt Ltd is launching Frooti Fizz, a succession of the original Mango
Frooti, which will be retailed across 1.2 million outlets in the country as it targets
increasing its annual revenue from Rs 2800 CR (US$ 0.42 billion) to Rs.5000 CR
(US$ 0.75 billion) by 2020.
 US-based food company Cargill Inc, aims to double its branded consumer business in
India by 2020, by doubling its retail reach to about 800,000 outlets and increase
market share to become national leader in the sunflower oil category which will help
the company be among the top three leading brands in India. 
 Mad Over Donuts (MoD), outlined plans of expanding its operations in India by
opening nine new MOD stores by March 2020.
 Danone SA plans to focus on nutrition business in India, its fastest growing market in
South Asia, by launching 10 new products in 2020, and aiming to double its revenue
in India by 2020.
 Uber Technologies Inc plans to launch UBER-EATS, its food delivery service to
India, with investments made across multiple cities and regions.

Government Initiatives
Some of the major initiatives taken by the Government of India to improve the food
processing sector in India are as follows:

 The Government of India aims to boost growth in the food processing sector by
leveraging reforms such as 100 per cent Foreign direct investment (FDI) in marketing
of food products and various incentives at central and state government level along
with a strong focus on supply chain infrastructure.
 In Union Budget 2020-19, the Government of India has set up a dairy processing infra
fund worth Rs.8,000 CR (US$ 1.2 billion).

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  The Government of India has relaxed foreign direct investment (FDI) norms for the
sector, allowing up to 100 per cent FDI in food product e-commerce through
automatic route.
 The Food Safety and Standards Authority of India (FSSAI) plans to invest around
Rs.482 CR (US$ 72.3 million) to strengthen the food testing infrastructure in India, by
upgrading 59 existing food testing laboratories and setting up 62 new mobile testing
labs across the country.
 The Indian Council for Fertilizer and Nutrient Research (ICFNR) will adopt
international best practices for research in fertilizer sector, which will enable farmers
to get good quality fertilizers at affordable rates and thereby achieve food security for
the common man.
 The Ministry of Food Processing Industries announced a scheme for Human Resource
Development (HRD) in the food processing sector. The HRD scheme is being
implemented through State Governments under the National Mission on Food
Processing. The scheme has the following four components:
o Creation of infrastructure facilities for degree/diploma courses in food
processing sector
o Entrepreneurship Development Program (EDP)
o Food Processing Training Centers (FPTC)
o Training at recognized institutions at State/National level

Road Ahead
Going forward, the adoption of food safety and quality assurance mechanisms such as Total
Quality Management (TQM) including ISO 9000, ISO 22000, Hazard Analysis and Critical
Control Points (HACCP), Good Manufacturing Practices (GMP) and Good Hygienic
Practices (GHP) by the food processing industry offers several benefits. It would enable
adherence to stringent quality and hygiene norms and thereby protect consumer health,
prepare the industry to face global competition, enhance product acceptance by overseas
buyers and keep the industry technologically abreast of international best practices.

Food Processing Companies in India

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The Heritage Group was founded in 1992 by Mr Nara Chandra Babu Naidu. It is one of the
fastest growing private sector enterprises in India, with five business divisions, namely,
Dairy, Retail, Agr, Bakery and Renewable Energy, under its flagship Company Heritage
Foods Ltd. The annual turnover of Heritage Foods crossed Rs.1926.99 CR

Introduced primarily for British settlers in India, Kissan has been present in India since 1935.
The UB Group, under the Late Mr. VittalMalya then, acquired Kissan from Mitchell Bros in
the year 1950. However, in 1993, Hindustan Unilever Ltd took it over from the UB Group.
Since its launch, innovation has been the main approach.

LT Foods employ around 900 employees in India and abroad. The company’s flagship brand
‘Dawaat’ launched in 1980’s is now recognized as the leading brand in the industry. The
company has a strong nationwide distribution network in the domestic market that sells
products such as branded rice, wheat and pulses.

Raindrops basmati rice comes from the house of REI Agro Ltd – world’s largest basmati
processing company. REI Agro Ltd was established in the year 1994 with a vision to
consolidate the fragmented basmati rice industry. Today REI is India’s leading food major
and is listed in Bombay Stock Exchange (BSE), National Stock Exchange (NSE), London.

Modern Dairies is prestigious is an ISO:9001, ISO 22000, ISO 17001 (environment

management) and HACCP (food safety), certification to its credit. The company
manufactures a wide range of milk and milk products. Strategically located at the centers of
milk rich belt in Karnal, on the National Highway No 1, just 166 KM from North-Delhi.

The company was started in the year 1992 in Calcutta (now Kolkata) as a biscuit factory with
an initial investment of just Rs 295 (US$ 4.76). From a humble beginning, Britannia
Industries Ltd is presently one of India’s most popular food industries. The company's
offerings are spread across the spectrum with products ranging from the healthy.

Nestle came to India when it set up its first factory in Moga, Punjab in 1961. Presently, it has
four offices and around eight manufacturing facilities across India. Nestlé has been a partner
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in India's growth for over nine decades now and has built a very special relationship of trust
and commitment with the people of India. The company's a...

Established in 1989, Kohinoor has presence in over 60 countries. The company owns one of
the finest basmati rice brands, also a wide assortment of food products that include wheat
flour, ready-to-eat curries and meals, simmer sauces, cooking pastes to spices, seasonings and
frozen food. At present, the company has customers in the USA, Canada.

Hatsun Agro Product Ltd is the largest private sector dairy in India. It was established in
1970 and has since been a pioneer in promoting dairy products. Presently, Hatsun has chilling
centers in more than 68 locations, over 1,348 contract vehicles, milk sheds spread over 10
districts in Tamil Nadu and three districts in Karnataka, and over 300,00...

Parle Agro is the largest Indian food and beverage company, which started in 1959 as Baroda
Bottling Company for carbonated beverages. The original Parle company was started in the
year 1929 and was owned by the Chauhan family. Parle became popular with the release of
its products such as Frooti and Parle-G. Parle Agro, today, is aRs 2,200 CR.

Started in 1924 with the establishment of the MTR restaurant, MTR Foods today stands tall
as an Indian heritage brand. A household name, MTR Foods has consolidated its market
leadership in the south of the country and is all set for a strong pan-India presence, beginning
with forays into the northern, western and eastern regions.

McCain Foods (India) is a wholly-owned subsidiary of McCain Foods Limited in Canada.

Since 1998, the company has been engaged in agriculture research and development (R&D)
and in the development of the frozen food market in India and other countries of the
subcontinent. The company's products are used by leading fast food chains, hotels,
restaurants.

Ruchi Soya Industries is among the top five FMCG companies in India with a turnover of
over Rs.26,000 CR. It is among the 50 fastest growing FMCG companies in the world, and is
the number one cooking oil maker and palm plantation company in India. Over the years, the
company has forayed into making soya foods, bakery fats and vanaspatiprodu...

Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat. Founded in 1946,
the brand is today managed by the Gujarat Co-operative Milk Marketing Federation Ltd

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(GCMMF) which is jointly owned by about 3 million milk producers in the state. Amul the
co-operative was formed as a response to the exploitation of marginal milk prod...

With a 120 year heritage and an existence since 1989, KRBL Ltd is India’s first integrated
rice company with a comprehensive product chain. KRBL today stands at the top slot of the
Indian rice industry, unmatched and unparalleled in every aspect. It has an extensive and
well-positioned brand presence in both, the domestic and international mar...

Exports of processed food and related products

 During FY11–18, India's exports of processed food and related products (inclusive of
animal products) grew at a CAGR of 11.74 per cent, reaching US$ 18.2 billion.
 Main export destinations for food products have been the Middle East and Southeast
Asia.
 In FY19* India’s exports stood at US$ 1.3 billion.

Food processing and its segments

 The food processing industry is one of the largest industries in India and ranks fifth in
terms of production, consumption and exports. As per the latest data available, food
processing sector is expected to reach US$ 258 billion in FY18.
 In FY18* (till December 2018), food processing industry constituted 17 per cent to
India’s GDP through manufacturing.

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 COMPANY PROFILE

The Heritage Group, founded in the year 1992 by Mr. Nara Chandrababu Naidu, is one of the
fastest growing Public Listed Companies in India, with two-business divisions-Dairy and
Renewable Energy under its flagship Company Heritage Foods Limited (Formerly known as
Heritage Foods (India) Limited).The annual turnover of Heritage Foods crossed Rs.2642.89
CR in financial year 2019-19.

Currently Heritage's milk and milk products have a market presence in Andhra Pradesh,
Telangana, Karnataka, Kerala, Tamil Nadu, Maharashtra, Odisha, NCR Delhi, Haryana,
Rajasthan, Madhya Pradesh, Punjab, Uttar Pradesh, Gujarat and Uttarakhand.

In the year 1994, HFL went Public and was oversubscribed 54 times. HFL shares are listed
on BSE (Stock Code: 519552) and NSE (Stock Code: HERITGFOOD).

About the founder:

Mr. Nara Chandrababu Naidu

Heritage Foods Limited, India

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Mr. Nara Chandrababu Naidu is one of the greatest dynamic, pragmatic, progressive and
visionary Leaders of the 21st Century.

With an objective of "Bringing prosperity into rural families through co-operative efforts", he
along with a few like minded, friends and associates promoted 'Heritage Foods' in the year
1992 taking opportunity from the Industrial Policy, 1991 of the Government of India to
which end he has been successful.

At present, Heritage has a market presence in the states of Andhra Pradesh, Telangana,
Karnataka, Kerala, Tamil Nadu, Maharastra, Odisha, NCR Delhi,Haryana, Rajasthan,
Madhya Pradesh, Punjab, Uttar Pradesh, Gujarat and Uttarakhand.More than three thousand
villages and three lakh farmers are being benefited in these states. On the other side, Heritage
is serving millions of customer needs by, employing more than 2400 people and generating
indirect employment opportunities for more than 10000 people. Beginning with a humble
annual turnover of Rs.4.38 CR in 1993-94, the annual turnover of Heritage Foods crossed
Rs.2642.89 CR in financial year 2019-19.

Mr. Chandrababu Naidu was born on April 20, 1951 in Naravaripally Village, Chittoor
District, Andhra Pradesh, India. His late father Mr. N. Kharjura Naidu was an agriculturist
and his late mother Smt. Ammanamma was a housewife. Mr. Naidu did his schooling in
Chandragiri. He went on to study at the Sri Venkateswara Arts College, Tirupati. He later
also obtained his Masters in Economics from the Sri Venkateswara University, Tirupati. Mr.
Naidu is married to Mrs. Bhuvaneswari, the daughter of Mr. N T Rama Rao, Ex-Chief
Minister of Andhra Pradesh and a famous star of Telugu Cinema. Mrs. N Bhuvaneswari is
the Vice Chairperson & Managing Director of the company.

Mr. Naidu held various positions of office in college and organised a number of social
activities. Following the 1977 cyclone, which devastated the DiviseemaTaluk of Krishna
District, he actively organized donations and relief material from Chittoor district for the
cyclone victims. Mr. Naidu has always evinced keen interest in rural development activities
in general and the upliftment of the poor and downtrodden sections of society in particular.

Mr. Naidu has held various coveted and honorable positions including Chief Minister of
Andhra Pradesh, Minister for Finance & Revenue, Minister for Archives & Cinematography,

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Member of the A.P. Legislative Assembly, Director of A.P. Small Scale Industries
Development Corporation, and Chairman of KarshakaParishad.

Mr. Naidu has been honoured with numerous prestigious awards including "Member of the
World Economic Forum's Dream Cabinet" (Time Asia), "South Asian of the Year" (Time
Asia), "Business Person of the Year" (Economic Times), and "IT Indian of the Millennium"
(India Today).

Mr. Naidu was chosen as one of 50 leaders at the forefront of change in the year 2000 by the
Business Week magazine for being an unflinching proponent of technology and for his drive
to transform the State of Andhra Pradesh.Mr. Naidu has been re-elected as the Chief Minister
of Andhra Pradesh in the 2017 elections.

Heritage Slogan

Bring Home Health & Happiness

When you are healthy, we are healthy

When you are happy, we are happy

Vision

 Delighting every home with Fresh & Healthy products and empowering the Farmer

Mission

To be a nationally recognized brand for Healthy and Fresh products with a revenue of INR
6000 Crore.(USD 1 Billion) by 2022We anticipate, understand and respond to our Customers'
needs by creating high quality products and making them available through innovative and

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convenient channels we embrace the right technology to delight our Customers. We are a
strong supporter of balancing Economic, Social and Environmental aspects to create a better
tomorrow.We are devoted to empowering the Farmer community through our unique
'Relationship Farming' Model We aim to be the Employer of Choice by nurturing
Entrepreneurship and Promoting Empowerment, alongside transparency.

BOARD OF DIRECTORS

Mr. SeetharamaiahDevineni

Chairperson,

Commerce graduate from Andhra University and a fellow member of the Institute of
Chartered Accountants of India. Senior partner of Brahmayya& Co., a leading Chartered
Accountancy firm and has been practicing for the last five decades. Has held various coveted
posts, which include Membership of the Southern Regional Board of Reserve Bank of India,
and Federation of Andhra Pradesh Chamber of Commerce and Industry, Chairpersonship of
the TirumalaTirupatiDevasthanams Trust Board and Trusteeship of the NTR Memorial Trust
Is also on the Board of several other companies.

Mr. SrivishnuRajuNandyala

Director,

Holds a bachelors degree in Chemical Engineering from Osmania University, Andhra

Pradesh. Founder Chairperson and CEO of EXCIGA group, which consists of five non
banking finance companies. Founder and Past President of Entrepreneurs Organization,
Hyderabad. Past President of CII's (Confederation of Indian Industries) Young Indians,
Hyderabad Chapter and a past member on the state council of CII. Is a Director in several
Public and Private Companies.

Mr. Rajesh Thakur Ahuja

Director,

Graduate in Production Engineering from Pune University Engineering College. Started

Silver line Wire Products in 1993 as a manufacturer of plastic coated wire products for
household applications. In 1998, started marketing under the brand name of Sleek. Presently

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he is Managing Director at M/s. Sleek International Private Limited, which is a subsidiary
company of M/s. Asian Paints Limited, Mumbai. Currently pursuing Owner President
Management Programme at Harvard University, USA.

Dr. Nagaraja Naidu Vadlamudi

Director,

M. Com, M. Litt and a PhD. (Financial Management), Began his career from the
Administrative Staff College of India, Hyderabad in 1972. Has held various positions in
reputed Universities, like Professor, Dean, Director etc., and has taught in the fields of
Finance and Business Economics at Post Graduate and Doctorate levels for about 25 years.
Has been the Registrar (Administrative Head) of the Dr B R Ambedkar Open University for
about 10 years. Has been associated with the company since it's inception and has been able
to utilize his intimate understanding of the rural socio-economic scenario to strengthen milk
procurement systems and strategies of Heritage, which has contributed to the current status of
Heritage as a leading player in South India.

Mrs. Bhuvaneswari Nara

Vice-Chairperson & Managing Director,

B.A Graduate, Is a Director in several other Companies. Is a dynamic leader who has
extensive experience in business and has been successfully steering Heritage towards growth
and better prospects.

Mrs. Brahmani Nara

Executive Director,

Master's Degree in Business Administration from Stanford University, Bachelor of Science

degree in Electrical Engineering from Santa Clara University USA and Bachelor of
Engineering with specialization of Electronics and Communications from ChaitanyaBharathi
Institute of Technology. Investment Associate in Vertex Venture Management Pvt. Ltd
between 2009-2011 in Singapore and was associated with the Company as a Vice-President
(Business Development).

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Quality policy of HFIL:

We are committed to achieve customer satisfaction through hygienically processed and

packed Milk and Milk Products. We strive to continually improve the quality of our products
and services through upgradation of technologies and systems.

Heritage's soul has always been imbibed with an unwritten perpetual commitment to itself, to
always produce and provide quality products with continuous efforts to improve the process
and environment.

Adhering to its moral commitment and its continuous drive to achieve excellence in quality
of Milk, Milk products & Systems, Heritage has always been laying emphasis on not only
reviewing & re-defining quality standards, but also in implementing them successfully. All
activities of Processing, Quality control, Purchase, Stores, Marketing and Training have been
documented with detailed quality plans in each of the departments.

Today Heritage feels that the ISO certificate is not only an epitome of achieved targets, but
also a scale to identify & reckon, what is yet to be achieved on a continuous basis. Though, it
is a beginning, Heritage has initiated the process of standardizing and adopting similar quality
systems at most of its other plants.

Commitments:

Milk Producers

Change in life styles of rural families in terms of

 Regular high income through co-operative efforts

 Women participation in income generation
 Protect the farmers from price exploitation by the un-organized sector
 Provide remunerative prices for milk
 Increase milk productivity through input and extension activities
 Supplementing agriculture with dairy farming
 Financial support for purchase of cattle; insuring cattle
 Establishment of Cattle Health Care Centers
 Supplying high quality Cattle feed

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  Organizing 'RythuSadasu' and video programmes for educating the farmers in dairy
farming

Customers

 Timely supply of quality & healthy products

 Supply high quality milk and milk products at affordable prices
 Focus on nutritional foods
 More than 4 lakh happy customers
 High customer satisfaction24 hour help-lines ( <10 complaints a day)

Employees

 Enhancing the Technical and Managerial skills of employees through continuous

training and development
 Best appraisal systems to motivate employees
 Incentive, bonus and reward systems to encourage employees
 Heritage forges ahead with the motto "add value to everything you do"

Shareholders

Returns

 Dividend Payment since Public Issue (January 1995)

Service

 Highest importance to investor service; no notice from any regulatory authority since
2001 in respect of investor service
 Very transparent disclosures

Suppliers
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  Doehlar: technical collaboration for milk drinks, yogurt drinks and fruit flavoured
drinks
 Alaval: supplier of high-end machinery and technical support focusing on Tetra pack
association for products package

Society

 Potential Employment Generation

 more than 2400 employees are working with Heritage
 more than 11,097 procurement agents have found self-employment in rural
areas
 more than 6300 sales agents are associated with the company
 Employment opportunities for the youth by providing financial and animal husbandry
support for establishing MINI DAIRIES
 Producing healthy products for society

Qualities of management principles:

1. Customer focus to understand and meet the changing needs and expectations
of customers.
2. People involvement to promote team work and tap the potential of people.
3. Leadership to set constancy of purpose and promote quality culture trough out
the organization.
4. Process approach to assess the efficiency and effectiveness of each process.
5. Systems approach to understand the sequence and interaction of process.
6. Factual approach to decision making to ensure its accuracy.
7. Continual improvement processes for improved business results.
8. Development of suppliers to get right product and services in right time at
right place.

AWARDS

 1st Prize in National Energy Conservation Awards-2019

 1st Prize in National Energy Conservation Awards-2018

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  2nd Prize in National Energy Conservation Awards-2018
 National Energy Conservation Award 2017
 National Energy Conservation Award 2012
 National Energy Conservation Award 2010
 National Energy Conservation Award 2008
 Bagged the "Coca Cola Golden Spoon Award" 2018& 2019 for its retail business
division. The annual 'COCA COLA Golden spoon awards' are well-established and
highly regarded within the industry as a mark of exceptional performance.
 Listed among India's prestigious Top-500 companies list for the year 2016& 2017,
compiled by The Economic Times, on the basis of industry respect and key financial
parameters.
 Images Most Admired Retailer of the Year - 2017 (Category Food & Grocery)
Awarded the "Most Admired Retailer of the year - 2017" (Food & Grocery) at India
Retail Forum.
 Fortune List of 50 Most Powerful Business WomanN. Bhuvaneswari, Vice
Chairperson & Managing Director, was placed in the list of Fortune-50 Most
Powerful Business Women in India for the year 2016.

PRODUCTS

TONED MILK

DOUBLE TONED MILK

FULL CREAM MILK

STANDARDISED MILK

GOLDEN COW MILK

FAMILY PACK MILK

SLIM MILK

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 REVIEWS OF LITERATURE

1. Morge (1953) in his study on the Job satisfaction of the employees of white collar

jobs found that fifty five male teachers were satisfied with their job with oppose to

thirty five percent female employees who were not satisfied with their job. This study

highlighted the relationship between gender and job satisfaction and concluded that

satisfaction is affected by gender.

2. Gardon (1955) in his research on the Job satisfaction of the workers of industrial

concern and human needs industries found that if person„s individual needs are

satisfied then their job satisfaction increases; thereby reflecting a positive relation

with the job satisfaction.

3. Bidwel and Charles (1956) studied on the Job satisfaction and school management

and concluded that effective education is necessary to develop good image of the

school and that teachers„Job satisfaction increased by perfect management.

4. Sinha and Singh (1961) studied the relationship between job satisfaction and

absenteeism. A random sample was selected from various departments of Tisco,

Jamshedpur. The sample consisted of high and low absentee workers. Respondents

consisted of 50 each from both the categories. Job satisfaction questionnaire consisted

of items of four components of job satisfaction namely nature of work, wages and

security, supervisors and supervision and company„s overall personnel policy. It was

found that low absentees were significantly more satisfied with their job than high

absentees.

5. Sinha and Sharma (1962),conducted a research on attitude and job satisfaction with

the help of randomly selected 100 workers which were from a light engineering

factory around Culcutta. It was found that job satisfaction was inversely related to

favorable attitude towards the union. This implies, greater the job satisfaction, the less

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 favorable was the attitude towards the union. Prasad (1964) studied the personality

and the relative elements of Job satisfaction namely age and experience. In his study

he concluded that the age of professionals had no effect on job satisfaction, while job

satisfaction increase with the frequencies of experience thereby showing significant

relation with the Job satisfaction.

6. Rajgopal (1965) in his study explored the relationship between satisfaction and

productivity of textile mills workers belonging to high and low productive mills. Six

mills, three high and three low (Productivity was indexed in terms of operative hours

per unit of Production four the past three years) were chosen for the study. 75 workers

each from high Productive and low Productive mills were chosen for the study. They

were asked to indicate their degree of satisfaction/dissatisfaction on a 5-point scale

ranging from extreme satisfaction to extreme dissatisfaction on thirty items

representing seven aspect of work (i.e., salary, job, management, working condition,

welfare facilities , coworkers, and union management relations). The results

highlighted that high productive mill workers were significantly more satisfied with

five of the seven aspect excluding job and coworkers.

7. Lodahl&Kejner (1965) found in a study that Job satisfaction is affected by

meaningfulness of work and adequacy of supervision.

8. Kapoor and Rao (1969) had examined the age and attitude towards officers in

understanding the Job satisfaction of 146 female employees. His research highlighted

that female employee and married female employee having more than twenty five

years of age always oppose against injustice and struggle against management too.

9. Jawa (1971) collected data on 70 semi-skilled workers in his study on anxiety and job

satisfaction. On the basis of the anxiety scale filled by the respondents and their

scores, anxiety was divided into three groups of high, average and low anxiety. In

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 addition to this a satisfaction questionnaire was also filled by the respondents. The

results indicate a trend of increasing satisfaction with decreasing anxiety level Smith,

10. Scott and Hulin (1977) selected 4000 managers of the 145 company for the sample of

the study on Job satisfaction of professional employees of the company. It was found

out through this research that satisfaction increase with the age. Thus, indicating a

positive relation of Job satisfaction with the age.

11. Richmond, Mccroskey and Davis (1982), stated that “moderately satisfied employees

may be more productive than dissatisfied employee; extremely satisfied employees

may form the type of work group known as the “happiness for lunch bunch”

(McCroskey,

12. Larson & Knapp, 1971) and be more of a social group than a work group, hence

lowering productivity. Bhatt (1987) studied the personality determinations of Job

satisfaction of college teachers of Saurashtra University and all college teachers were

included in the sample of the study. It was found that female teachers were more

satisfied than male teachers, also no significant difference was found in the mean

scores of married and unmarried teachers. It was also found that Job satisfaction had

no significant relation with the age, area of the work, educational qualification and

experience.

13. Sharma(1987) examined the effects of work culture on employee satisfaction, sense of

participation, role stress and alienation in private sector and public sector and found

that the private sector and the public sector varied

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 SWOT ANALYSIS

A SWOT, which stands for strengths, weaknesses, opportunities and threats, analysis for
employees entails a self-evaluation of a person's strengths and weaknesses. In addition,
the employee must evaluate her opportunities and threats. The employee's strengths and
weaknesses are essentially internal factors. Opportunities and threats are considered
external factors, for which the employee has less control. However, A SWOT analysis for
an employee can help an employee better deal with certain external factors.

Significance

The SWOT analysis for an employee commences with an evaluation of the individual's
strengths. An employee should write down all of her strengths during this stage of the
SWOT analysis. She can physically write down her strengths, or use available software,
which can ordered and downloaded online. Examples of strengths can be lots of experience,
and even strong oral and written communication skills. The key for evaluating strengths is
comparing individual skills versus other employees of the same pay grade.

Effects

This next phase of the SWOT analysis for an employee includes evaluating and recording
various weaknesses. An employee's weakness can be a lack of experience in a certain job
duty, according to the article titled "SWOT Your Way to Better Performance"
at beakware.com, a software technology firm. For example, a marketing research analyst
may not have database management experience. Consequently, this employee may need to
ask another person to run a query for her survey, which entails typing out commands on a
computer to create a list of customers.

This lack of technical skills can render the employee more vulnerable to a downsizing, if
the company needs to cut jobs. This would be especially the case if other marketing
analysts are highly skilled in database management. (See references 1 and 2)

Identification

A third phase of the SWOT analysis is for the employee to identify certain opportunities in
her current job. For example, the employee may discover that his company is expanding the
marketing research department. Consequently, there may be an opportunity for him to

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become more specialized in competitive analysis, a particular area of interest. In addition,
the employee may have an opportunity to improve his computer skills through company-
paid training. These skills could potentially make the employee more valuable to the
company.

Considerations

Threats are usually the fourth phase of the individual SWOT analysis. Threats can include a
decrease in company sales and profits, new technology from competitors, and even a
potential takeover of the company. Any external threat that affects the company can
potentially threaten an employee's career. An increased workload can also be a potential
threat, which can inevitably have an effect on an employee's performance.

Prevention/Solution

An employee's primary goal for conducting a SWOT analysis is to determine ways to

secure her future with the company; and to improve her chances of getting promoted. This
can be accomplished by using the SWOT analysis to match certain internal factors, such as
strengths and weakness, with external factors like opportunities and threats. For example, a
regional manager's leadership skills, a strength, may help her get promoted to the corporate
office, an opportunity. Contrarily, an employee that has no college degree, a weakness, may
pursue her degree if her company starts requiring a degree for her job, a threat.

21
 CONCEPTUAL FRAMEWORK.
The term human resource can be thought of as, “the total knowledge, skills, creative abilities,
talents and aptitudes of an organizations work force, as well as the value, attitudes and
believes of the individuals involved.

HRM can be defined as the planning, directing and controlling of human resources.

HRM is an approach to the management of people, based on four fundamental

principles. First, human resources are the most important assets of an organization and their
effective management is the key to its success.

Second, this success is most likely to be achieved if His personal policies and
procedures of the enterprises are closely linked with, and make major contribution to the
achievement of corporate objectives and strategic plans.

Third, the corporate culture and the values, organizational climate and managerial
behavior that emanate from that culture will exert a major influence on the achievement of
excellence. This culture must, therefore, be managed which means that continuous effort,
starting from the top, will be required to get them accepted and acted upon. Finally, HRM is
concerned with integration getting all the members of the organization involved and working
together with a sense of common purpose.

HRM is proactive rather than reactive, that is always looking forward to what needs to
be done and then doing it, rather than waiting to be told what to do about recruiting, paying or
training people, or dealing with employee relation’s problems as they arise. The techniques
for the application of HRM or manpower planning, selection, performance appraisal, salary
administration, training and management development.

In its essence, HRM is the qualitative improvement of human beings who are considered the
most valuable assets of an organization the sources, resources, and end users of all product
and services.

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NATURE AND SCOPE OF HUMAN RESOURCE:

Complex Dynamism:

A close observation of employee reveals that they are complex beings that are
physiological, psychological, sociological, ethical beings. If human factor is properly utilized,
it may even prove a dynamic motive force for running an organization otherwise, it becomes
a passive and destructive force.

A social System:-
HRM is task of dealing with human relationships, molding and developing the human
behavior and attitude towards the job and organizational requirements.

A challenging Task:-
HRM is a challenging task as employee; organizational and societal objectives with
the available resources must be attained.

FUNCTIONS OF HRM:-
Functions of HRM can are broadly classified into two categories, viz., 1). Managerial
functions.

2). Operative functions.

Managerial functions:-
Managerial functions of personnel management involve planning. Organizing
directing and controlling, all these functions influence the operative functions.

Operative Functions:-
Operative functions of personnel management are related to specific activities of
personnel management viz., employment, development, compensation and relations. All
these functions are interacted by managing functions.

1. Employment includes job analysis, human resource planning, recruitment,

selection, placement, induction and orientation.
2. HRD improves performance appraisal, training, management development, career
planning and development, organizational development.

23
 3. Compensation: it includes job evaluation, wage and salary administration,
incentives, fringe benefits and social security measures.

Job satisfaction describes how content an individual is with his or her job. The happier
people are within their job, the more satisfied they are said to be. Job satisfaction is not the
same as motivation, although it is clearly linked. Job design aims to enhance job satisfaction
and performance, methods include job rotation, job enlargement and job enrichment. Other
influences on satisfaction include the management style and culture, employee involvement,
empowerment and autonomous work position. Job satisfaction is a very important attribute
which is frequently measured by organizations. The most common way of measurement is
the use of rating scales where employees report their reactions to their jobs. Questions relate
to rate of pay, work responsibilities, variety of tasks, promotional opportunities, the work
itself and co-workers. Some questioners ask yes or no questions while others ask to rate
satisfaction on 1-5 scale (where 1 represents "not at all satisfied" and 5 represents "extremely
satisfied").

Definition

Job satisfaction has been defined as a pleasurable emotional state resulting from the appraisal
of one’s job; an affective reaction to one’s job; and an attitude towards one’s job. Weiss
(2002) has argued that job satisfaction is an attitude but points out that researchers should
clearly distinguish the objects of cognitive evaluation which are affect (emotion), beliefs and
behaviors. This definition suggests that we form attitudes towards our jobs by taking into
account our feelings, our beliefs, and our behaviors.

History

One of the biggest preludes to the study of job satisfaction was the Hawthorne studies. These
studies (1924–1933), primarily credited to Elton Mayo of the Harvard Business School,
sought to find the effects of various conditions (most notably illumination) on workers’
productivity. These studies ultimately showed that novel changes in work conditions
temporarily increase productivity (called the Hawthorne Effect). It was later found that this
increase resulted, not from the new conditions, but from the knowledge of being observed.
This finding provided strong evidence that people work for purposes other than pay, which
paved the way for researchers to investigate other factors in job satisfaction.

24
Scientific management (aka Taylorism) also had a significant impact on the study of job
satisfaction. Frederick Winslow Taylor’s 1911 book, Principles of Scientific Management,
argued that there was a single best way to perform any given work task. This book
contributed to a change in industrial production philosophies, causing a shift from skilled
labor and piecework towards the more modern of assembly lines and hourly wages. The
initial use of scientific management by industries greatly increased productivity because
workers were forced to work at a faster pace. However, workers became exhausted and
dissatisfied, thus leaving researchers with new questions to answer regarding job satisfaction.
It should also be noted that the work of W.L. Bryan, Walter Dill Scott, and Hugo
Munsterberg set the tone for Taylor’s work.

Some argue that Maslow’s hierarchy of needs theory, a motivation theory, laid the foundation
for job satisfaction theory. This theory explains that people seek to satisfy five specific needs
in life – physiological needs, safety needs, social needs, self-esteem needs, and self-
actualization. This model served as a good basis from which early researchers could develop
job satisfaction theories.

Job satisfaction can also be seen within the broader context of the range of issues which
affect an individual's experience of work, or their quality of working life. Job satisfaction can
be understood in terms of its relationships with other key factors, such as general well-being,
stress at work, control at work, home-work interface, and working conditions.

Models of job satisfaction

Affect Theory

Edwin A. Locke’s Range of Affect Theory (1976) is arguably the most famous job
satisfaction model. The main premise of this theory is that satisfaction is determined by a
discrepancy between what one wants in a job and what one has in a job. Further, the theory
states that how much one values a given facet of work (e.g. the degree of autonomy in a
position) moderates how satisfied/dissatisfied one becomes when expectations are/aren’t met.
When a person values a particular facet of a job, his satisfaction is more greatly impacted
both positively (when expectations are met) and negatively (when expectations are not met),
compared to one who doesn’t value that facet. To illustrate, if Employee A values autonomy
in the workplace and Employee B is indifferent about autonomy, then Employee A would be

25
more satisfied in a position that offers a high degree of autonomy and less satisfied in a
position with little or no autonomy compared to Employee B. This theory also states that too
much of a particular facet will produce stronger feelings of dissatisfaction the more a worker
values that facet.

Dispositional Theory

Another well-known job satisfaction theory is the Dispositional Theory Template: Jackson
April 2007. It is a very general theory that suggests that people have innate dispositions that
cause them to have tendencies toward a certain level of satisfaction, regardless of one’s job.
This approach became a notable explanation of job satisfaction in light of evidence that job
satisfaction tends to be stable over time and across careers and jobs. Research also indicates
that identical twins have similar levels of job satisfaction.

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

Two-Factor Theory (Motivator-Hygiene Theory)

Frederick Herzberg’s two factor theory (also known as Motivator Hygiene Theory) attempts
to explain satisfaction and motivation in the workplace this theory states that satisfaction and
dissatisfaction are driven by different factors – motivation and hygiene factors, respectively.
An employee’s motivation to work is continually related to job satisfaction of a subordinate.
Motivation can be seen as an inner force that drives individuals to attain personal and
organizational goals (Hokinson, Porter, & Wrench, p. 133). Motivating factors are those
aspects of the job that make people want to perform, and provide people with satisfaction, for
example achievement in work, recognition, promotion opportunities. These motivating
factors are considered to be intrinsic to the job, or the work carried out. Hygiene factors

26
include aspects of the working environment such as pay, company policies, supervisory
practices, and other working conditions.

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

Job Characteristics Model

Hackman & Oldham proposed the Job Characteristics Model, which is widely used as a
framework to study how particular job characteristics impact on job outcomes, including job
satisfaction. The model states that there are five core job characteristics (skill variety, task
identity, task significance, autonomy, and feedback) which impact three critical
psychological states (experienced meaningfulness, experienced responsibility for outcomes,
and knowledge of the actual results), in turn influencing work outcomes (job satisfaction,
absenteeism, work motivation, etc.). The five core job characteristics can be combined to
form a motivating potential score (MPS) for a job, which can be used as an index of how
likely a job is to affect an employee's attitudes and behaviors----. A meta-analysis of studies
that assess the framework of the model provides some support for the validity of the JCM.

Communication Overload and Communication Under load

One of the most important aspects of an individual’s work in a modern organization concerns
the management of communication demands that he or she encounters on the job (Krayer, K.
J., & Westbrook, L., p. 85). Demands can be characterized as a communication load, which
refers to “the rate and complexity of communication inputs an individual must process in a
particular time frame (Faraca, Mongo, & Russel, 1977).” Individuals in an organization can
experience communication over-load and communication under- load which can affect their
level of job satisfaction. Communication overload can occur when “an individual receives too
many messages in a short period of time which can result in unprocessed information or
when an individual faces more complex messages that are more difficult to process (Faraca,
Monge, & Russel, 1997).” Due to this process, “given an individual’s style of work and

27
motivation to complete a task, when more inputs exist than outputs, the individual perceives a
condition of overload (Krayer, K. J., & Westbrook, L., p. 86) which can be positively or
negatively related to job satisfaction. In comparison, communication under load can occur
when messages or inputs are sent below the individual’s ability to process them (Farace,
Monge, & Russel, 1997).” According to the ideas of communication over-load and under-
load, if an individual does not receive enough input on the job or is unsuccessful in
processing these inputs, the individual is more likely to become dissatisfied, aggravated, and
unhappy with their work which leads to a low level of job satisfaction.

Measuring job satisfaction

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

The Job Descriptive Index (JDI), created by Smith, Kendall, & Hulin (1969), is a specific
questionnaire of job satisfaction that has been widely used. It measures one’s satisfaction in
five facets: pay, promotions and promotion opportunities, coworkers, supervision, and the
work itself. The scale is simple, participants answer either yes, no, or can’t decide (indicated
by ‘?’) in response to whether given statements accurately describe one’s job.

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

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

Other job satisfaction questionnaires include: the Minnesota Satisfaction Questionnaire

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

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Superior-Subordinate Communication

Superior-subordinate communication is an important influence on job satisfaction in the

workplace. The way in which subordinate’s perceive a supervisor’s behavior can positively
or negatively influence job satisfaction. Communication behavior such as facial expression,
eye contact, vocal expression, and body movement is crucial to the superior-subordinate
relationship (Teven, p. 156). Nonverbal messages play a central role in interpersonal
interactions with respect to impression formation, deception, attraction, social influence, and
emotional expression (Burgoon, Buller, & Woodall, 1996). Nonverbal immediacy from the
supervisor helps to increase interpersonal involvement with their subordinates impacting job
satisfaction. The manner in which supervisors communicate their subordinates may be more
important than the verbal content (Teven, p. 156). Individuals who dislike and think
negatively about their supervisor are less willing to communicate or have motivation to work
where as individuals who like and think positively of their supervisor are more likely to
communicate and are satisfied with their job and work environment. The relationship of a
subordinate with their supervisor is a very important aspect in the workplace. Therefore, a
supervisor who uses nonverbal immediacy, friendliness, and open communication lines is
more willing to receive positive feedback and high job satisfaction from a subordinate where
as a supervisor who is antisocial, unfriendly, and unwilling to communicate will naturally
receive negative feedback and very low job satisfaction from their subordinates in the
workplace.

Emotions

Mood and emotions form the affective element of job satisfaction. (Weiss and Cropanzano,
1996). Moods tend to be longer lasting but often weaker states of uncertain origin, while
emotions are often more intense, short-lived and have a clear object or cause.
There is some evidence in the literature that moods are related to overall job satisfaction.
Positive and negative emotions were also found to be significantly related to overall job
satisfaction
Frequency of experiencing net positive emotion will be a better predictor of overall job
satisfaction than will intensity of positive emotion when it is experienced.
Emotion work (or emotion management) refers to various efforts to manage emotional states
and displays. Emotion management includes all of the conscious and unconscious efforts to
increase, maintain, or decrease one or more components of an emotion. Although early
29
studies of the consequences of emotional work emphasized its harmful effects on workers,
studies of workers in a variety of occupations suggest that the consequences of emotional
work are not uniformly negative.

It was found that suppression of unpleasant emotions decreases job satisfaction and the
amplification of pleasant emotions increases job satisfaction. The understanding of how
emotion regulation relates to job satisfaction concerns two models:

1. Emotional dissonance. Emotional dissonance is a state of discrepancy between public

displays of emotions and internal experiences of emotions that often follows the
process of emotion regulation. Emotional dissonance is associated with high
emotional exhaustion, low organizational commitment, and low job satisfaction.
2. Social interaction model. Taking the social interaction perspective, workers’ emotion
regulation might beget responses from others during interpersonal encounters that
subsequently impact their own job satisfaction. For example: The accumulation of
favorable responses to displays of pleasant emotions might positively affect job
satisfaction.
3. Performance of emotional labor that produces desired outcomes could increase job
satisfaction.

Relationships and practical implications

Job Satisfaction can be an important indicator of how employees feel about their jobs and a
predictor of work behaviors such as organizational citizenship, absenteeism, and turnover.
Further, job satisfaction can partially mediate the relationship of personality variables and
deviant work behaviors.

One common research finding is that job satisfaction is correlated with life satisfaction. This
correlation is reciprocal, meaning people who are satisfied with life tend to be satisfied with
their job and people who are satisfied with their job tend to be satisfied with life. However,
some research has found that job satisfaction is not significantly related to life satisfaction
when other variables such as non-work satisfaction and core self-evaluations are taken into
account.

30
An important finding for organizations to note is that job satisfaction has a rather tenuous
correlation to productivity on the job. This is a vital piece of information to researchers and
businesses, as the idea that satisfaction and job performance are directly related to one
another is often cited in the media and in some non-academic management literature. A
recent meta-analysis found an average uncorrected correlation between job satisfaction and
productivity to be r = 0.18; the average true correlation, corrected for research artifacts and
unreliability, was r = 0.30. Further, the meta-analysis found that the relationship between
satisfaction and performance can be moderated by job complexity, such that for high-
complexity jobs the correlation between satisfaction and performance is higher (ρ = 0.52)
than for jobs of low to moderate complexity (ρ = 0.29). Job Satisfaction also have high
relationship with intention to quit. It is found in many research that Job Satisfaction can lead
to Intention to Stay / quit in an organization (Kim et al., 1996). Recent research has also
shown that Intention to Quit can have effect like poor performance orientation, organizational
deviance, and poor organizational citizenship behaviors. In short, the relationship of
satisfaction to productivity is not necessarily straightforward and can be influenced by a
number of other work-related constructs, and the notion that "a happy worker is a productive
worker" should not be the foundation of organizational decision-making.

With regard to job performance, employee personality may be more important than job
satisfaction. The link between job satisfaction and performance is thought to be a spurious
relationship; instead, both satisfaction and performance are the result of personality

JOB SATISFACTION

Job satisfaction is one of the important factors that have drawn attention of managers
in the organization as well as academicians. Various studies have been conducted to find out
the factors which determine job satisfaction and the way it influences productivity in the
organization. Though there is no conclusive evidence that job satisfaction affects productivity
directly because productivity depends on so many variables, it is still a prime concern for
managers.

31
Meaning of job satisfaction:-

Job satisfaction is the mental feeling of favorableness, which an individual has about
his job. Dublin has defined job satisfaction in terms of pleasure and contentment when he
says that: job satisfaction is the amount of pleasure of contentment associated with a job. If
you like your job intensely, you will experience high job satisfaction. If you dislike your job
intensely, you will experience job dissatisfaction.

Definition:-
1). According to Hopped.

“Any combination of psychological, physiological and environmental circumstances

that causes and person truthfully to say I am satisfied with my job”
Job satisfaction defined as the

“Pleasurable emotional state resulting from the appraisal of one’s Job as achieving or
facilitating the achievement of one’s job values”.

Human Relations
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 attainment
by an impulse of its objective. Job dissatisfaction does mean absence of motivation at work.
Research workers differently described the factors contributing to job satisfaction an job
dissatisfaction Hop pock describes job satisfaction as, “any combination of psychological,
physiological and environmental circumstances that cause and person truthfully to say I am
satisfied with my job”.

Job satisfaction is defined as the “pleasurable emotional state resulting from the
appraisal of one’s job as achieving or facilitating the achievement of one’s job values”. In
contrast job dissatisfaction is defined as “the un -pleasurable emotional state resulting from
the appraisal of one’s job as frustrating or blocking the attainment of one’s job values or as
entailing disvalues. “ However, both satisfaction and dissatisfaction were seen as.” A
function of the perceived relationship between what on perceives it as offering or entailing”.

32
Theories of job satisfaction:

There are vital differences among experts about the concept of job satisfaction
basically, there are four approaches/theories of job satisfaction.

They are:

1). Fulfillment theory

2). Discrepancy theory

3). Equity theory, and

4). Two – factor theory.

1. Fulfillment Theory:-

The proponents of this theory measure satisfaction in terms of rewards a person

receives or the extent to which his needs as satisfied. Further they thought that there is a
direct/positive relationship between job satisfaction and the actual satisfaction of the expected
needs. The main difficulty in this approach is that job satisfaction as observed by willing, is
not only a function of what person receives but also what he feels he should receive as there
would be considerable difference in the actual and expectations of persons. Thus jib
satisfaction cannot be regarded as merely function of how much person receives from his job.
Another important factor/variable that should be include to predict job satisfaction actually is
the strength of the individuals” desire of his level of aspiration in a particular area. This led to
the development of the discrepancy – theory of job satisfaction.

2. Discrepancy Theory:

The proponents of this theory argue that satisfaction is the function of what a person
actually receives from his job situation and what he thinks he should receive or what he
expects to receive. When the actual satisfaction derived is less than expected satisfaction, it
results in dissatisfaction, as discussed earlier.

“Job satisfaction, it results in dissatisfaction are functions of the perceived

relationship between what one wants from one’s job and what one perceives it is offering.
“This approach does not make it clear whether or not over satisfaction is a part of

33
dissatisfaction and if so, how does it differ from dissatisfaction. This led the development of
equity – theory of job satisfaction.

3. Equity Theory:

The proponents of this theory are of the view that a person’s satisfaction is determined by his
perceived equity, which in turn is determined by his input – output balance compared to his
comparison of others, input – output balance is the perceived Raito of what a person receives
for his job relative to what he contributes to the job. This theory is of the view that both under
the over rewards lead to dissatisfaction while the under – reward causes feelings of unfair
treatment, over – reward lead to feelings guilt and discomfort.
4. Two – factor Theory:

As discussed earlier, this theory was developed by Herzberg, Manusner, Peterson and
Capwell who identified certain factors satisfies and dissatisfies. Factor such as achievement,
recognition, responsibility etc., are satisfies the presence of which causes satisfaction but
their absence does not resulted in dissatisfaction. On the other hand, factors such as
supervision, salary, working conditions etc.., are dissatisfies, the absence of which causes
dissatisfaction. Their theory failed to give any support to this theory, as it seems that a person
can get both satisfaction and dissatisfaction at the same time, which is not valid.
Factors of job satisfaction:

Job satisfaction refers to a general attitude, which an employee retains on account of

many specific attitudes in the following areas: 1) Job satisfaction, 2). Individual
characteristics, 3). Relationships outside the job. There are different factors on which job
satisfaction depends. Important among them are discussed hereunder.

Personal Factors:-
They include workers sex, education, age marital status and their personal
characteristics, family background, socio-economic background and the like.

Factors Inherent in the Job:-

These factors have recently been studied and found to be important in the selection of
employee. Instead of being guided by their co-workers and supervisors, the skilled workers
would rather like to be guided by their own inclination to choose jobs in consideration of
‘what they have to do. These factors include: the work itself, conditions, and influence of

34
internal and external environmental on the job which are uncontrolled by the management
etc.

Factors Controlled by the Management:

They include the nature of supervision, job security, kind of work ground wage rate,
promotional opportunities, and transfer policy, duration of work and sense of responsibilities.
All these factors greatly influence the workers.

Their presence in the organization motivates the workers and provides sense of job
satisfaction.

Though performance and job satisfaction are influenced by different set of factors,
these two can be related if management like rewards to performance. It is viewed job
satisfaction is a consequence of performance of rather than a cause of it. Satisfaction is
strongly influences the productive efficiency of an organization whereas absenteeism,
employee turnover, alcoholism, irresponsibility, un-commitment, are the result of job
dissatisfaction. However job satisfaction or dissatisfaction forms opinion about the job and
the organization, which result in employee morale.

Effect 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. 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 favorableness or un-favorableness affects
the individual psychologically, which ultimately affects his physical health. For example,
Lawyer 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.

35
2. Productivity:

There are two views about the relationship between job satisfaction and productivity.

1. A happy worker is a productive worker,

2. A happy worker is not necessarily a productive worker.

The first view establishes a direct cause – effect relationship between job satisfaction
and productivity; when job satisfaction increases, productivity increases; when job
satisfaction decreases, productivity decreases. The basic logic behind this is that 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 for 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 compels relationship between job satisfaction and
productivity.

The other view that is a satisfied worker is not necessarily a productive worker
explains the relationship between job satisfactions 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.

1. Job performance leads to job satisfaction and not the other way round. The basic
factor for this phenomenon is the rewards (a source of satisfaction) attached with
performance. There are two types of rewards intrinsic and extrinsic. The intrinsic
reward stems from the job itself which may in the form of growth potential,
challenging job, etc. The extrinsic reward is subject to control by management such
as salary, bonus, etc. Any increase in these factors does not help to increase
productivity though these factors increase job satisfaction.
2. 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 effects 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.

36
 However, it does not mean that the job satisfaction has no

Impact on productivity. A satisfied worker may not necessarily lead to increased

productivity but a dissatisfied worker leads to lower productivity.

3. Absenteeism:

Absenteeism refers to the frequency of absence of a job holder form 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 produces
a ‘lack of will to work’ and alienates a worker from as far as possible. Thus, job
satisfaction is related to absenteeism.

4. 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 tried to
overcome this through various ways of difference mechanism, if he is not able 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 rate of
turnover of computer software 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.

SIGNIFICANCE:

 Helps in increasing the productivity.

 It reduces Absenteeism.
 It helps in reduce the employee turnover.
 It increases the retention rate.

Over the years researchers have studied and attempted to quantify employee
commitment, loyalty, morale and overall employee satisfaction. This gave rise to many types
of employee surveys whose purpose was to measure one or all of these components

The Two factor theory otherwise called motivation – hygiene theory gives the
factors for employee satisfaction, proposed by Frederick Hertzberg.

37
 According to Herzberg, the factors leading to job satisfaction are separate and
distinct from those that lead to job dissatisfaction. This theory proposes two important
factors. They are
Extrinsic – Hygiene factors
Intrinsic – Motivational Factors
Hygiene factors are Company policy and administration, supervision,
Interpersonal relationship with superiors, peers, subordinates, salary, job security, personal
life, working environment, status, etc. Extrinsic factors leads to dissatisfaction. These factors
when absent, increase dissatisfaction with the job. When present helps in preventing
dissatisfaction but do not increase satisfaction or motivation.

Motivational factors include achievement, recognition, advancement, work,

possibility of growth, responsibility, etc. Intrinsic factors are related with job satisfaction.
These factors when absent, prevent both satisfaction and motivation, when present leads to
satisfaction and motivation.
Some of the most extensive research in this area has been conducted by the
Gallop organization. This research came to the conclusion that overall employee satisfaction
is manifest in the level of engagement that employees have in their work. In other words,
employee engagement was the ultimate expression of employee commitment, loyalty, morale
and overall employee satisfaction. Therefore organizations needed to focus on employee
engagement rather than on these other components of employee satisfaction
Based on their findings Gallup conducted further research which included over
100,000 employees in America. The research showed that 26% of employees are fully
engaged, 55% are not engaged: they are at work physically but not mentally or emotionally,
and 19% are actively disengaged/unhappy, spreading discontentment and actively trying to
sabotage their organizations. This research clearly pointed out the large gap in employee
engagement and the magnitude of the challenge facing most organizations.

A review has identified four factors conducive to high levels of employee job
satisfaction: mentally challenging work, equitable rewards, supportive working conditions
and supportive colleagues. Importantly, these factors are controllable by management.

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 Mentally challenging work: People prefer jobs that give them opportunities to
use their skills and abilities and offer a variety of tasks, freedom and feedback on how well
they are doing. These characteristics make work mentally challenging.
Equitable Rewards: Employee wants pay systems and promotion policies that
they perceive as being just, unambiguous and in line with their expectations. When pay is
seen as fair biased on job demands, individual skill level and community pay standards,
satisfaction is likely to result. Similarly employees seek fair promotion policies and practices.
Promotions provide opportunities for personal growth, more responsibilities and increased
social status. Individuals, who perceive that promotion decisions are made in the fair and just
manner, therefore are likely to experience satisfaction from their jobs.

Supportive working conditions: Employees are concerned with their work

environment for both personal comfort and facilitating doing a good job. Studies demonstrate
that employees prefer physical surroundings that are not dangerous or uncomfortable.
Additionally, most employees prefer working conditions to home, in clean and relatively
modern facilities and adequate tools and equipment.

Supportive colleagues: People get more out of work than merely money or
tangible achievements. For most of the employees, work also fills need for social interaction.
Not surprisingly, therefore, having friendly and supportive workers leads to increased job
satisfaction. Studies generally find that employee satisfaction is increased when the
immediate supervisor understanding and friendly, offers praise for good performance, listens
to employees’ opinions and shows a personal interest in them

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 Questionnaire

“A study on Job Satisfaction of

1. Name: …………………………………………………………………………………

2. Age: ………………

3. Gender: Male

Female

4. Designation……………..

Ques1- Working hours are convenient for me-

1 strongly agree 2 agree 3 neither agree nor disagree 4 disagree 5 strongly disagree

Ques2- I am happy with my work place-

1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree

Ques3- I feel I have too much work to do-

1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree

Ques4- Safety measures provided by the company are good-

1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree

Ques5- My relationship with my supervisor is cordial-

1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree

Ques6- My supervisor is not partial-

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1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree

Ques7- My supervisor consider my ideas while taking decision-

1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree

Ques8- I am satisfied with the support from my coworkers-

1. strongly agree 2. Agree 3.neither agree nor disagree 4. disagree 5. strongly disagree

Ques9- People here have concern from one another and tend to help-

1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree

Ques10- I am satisfied with the refreshment facility-

1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree

Ques11- We are provided with the rest and lunch room and they are good-

1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree

Ques12- The parking spaces for vehicles are satisfactory-

1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree

Ques13- I feel I am paid a fair amount for the work I do-

1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree

Ques14- I am satisfied with the chances for my promotion-

1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree

Ques15- I am satisfied with the allowances provided by the organization-

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1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree

Ques16- I feel my boss motivate me to achieve the organizational goals-

1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree

Ques17- My supervisor motivate me to increase my efficiency at a time when I am not-

1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree

Ques18- I feel my job little impact on the success of the company-

1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree

Ques19- Overall I am satisfied with my present job-

1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5.

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