PART A

INTRODUCTION:

The student of bba is given an opportunity to undergo an internship program of 4 weeks to have a
practical experience. This is an essential academic requirement, which is followed by comprehensive
report writing. This internship furnishes the students with an exposure into the practical world. They are
able to look at different concepts, given in books, take up a form and come to life.

Job satisfaction relates to the total relationship between an individual and the employer for which he is
paid.

Job satisfaction is defined as the extent to which an employee feels self-motivated, content & satisfied
with his/her job. Job satisfaction happens when an employee feels he or she is having job stability, career
growth and a comfortable work life balance.

TOPIC CHOSEN FOR THE STUDY:

Study on employee job satisfaction in Ganesh Soaps And Detergent Industry Sirali.

STATEMENT OF THE PROBLEM:

This research attempts to understand if employees are fully satisfied with their work within
the organization, so that they are motivated to work effectively in the organization

OBJECTIVES OF THE STUDY:

• To study the various factors determines job satisfaction of the employees

• To evaluate the effectiveness of job satisfaction measures at Ganesh Soaps and Detergents
Industry
• To study the employee perception towards the organization

SCOPE OF THE STUDY:

• The company can analyze the level of employee satisfaction in the organization
 • The company can improve the working conditions, environment and other policies to
satisfy the employees based on the results of my survey
• I can understand how actually an organization works and can get more insight on the
concept of job satisfaction
• I can get an opportunity to provide suggestions

RESEARCH METHODOLOGY:

There are 3 types, they are:

1. Explorative
2. Descriptive
3. Experimental

For this study descriptive methodology is used:

DATA COLLECTION METHODS:

1. Primary data
The primary data was collected from the respondents by administering a structured
questionnaire and also through observation, interviews and discussion with management
team.
2. Secondary data:
Apart from primary data the secondary data is being collected through text books, records
of the company, journals, academic reports, and internet etc.

SAMPLE DESIGN:

There are total 35 employees working in the organization.

SAMPLE SIZE: 35

SAMPLE AREA:

The research was conducted in Ganesh Soaps and Detergent Industry Sirali.
SAMPLE METHOD:

The study was made by the survey in accordance to convenience of the employees. So the sample
type is convenience sampling.

LIMITATIONS OF THE STUDY:

1. Due to the limitation of the time the research could not be made more detailed.
2. Due to confidentiality of some information accurate response was not revealed by some of
the respondents.
3. Some of the replies of the respondents may be biased.
4. Respondents had marked the answers in questionnaire which may be socially incorrect.
irrespective of their actual feelings.
5. Cannot rely on secondary data.

PART B

INDUSTRY PROFILE:

Overview

Makers of cleaning products, cosmetics, and toiletries participated in a combined U.S. market
worth more than $55 billion in the early 2000s. By segment, cosmetics and personal toiletries,
which include such items as cologne, perfume, shampoo, and shaving preparations, accounted for
about 49 percent of industry sales. Soaps and detergents, including bar soap and laundry detergent,
was the second-largest segment, contributing around 27 percent of annual revenues. The remaining
24 percent of sales was dispersed among many household and industrial cleaning products. Some
of these include household kitchen and bathroom cleaners, dusting and polishing compounds, and
surfactants.

Most companies in the industry specialize within one or several lines of toiletries, cosmetics, or
cleaning goods, and while some are diversified, few have products in all segments.
History of the Industry

The various specialties within the industry evolved at different rates and in different periods, but
many of the industry's most basic products have historical antecedents dating back thousands of
years.

Soaps, Detergents, and Surfactants Different accounts place soap's invention between 2500 B.C.
and 300 B.C. The word "soap" may have been derived from Mt. Sapo, near Rome, a place where
burnt offerings were made to the gods. People discovered that the fat and ash residue from the
offerings had cleaning properties.

By definition, soap is a cleansing product created through the chemical process of combining a fat
or natural oil with an alkali (such as wood ashes or lye) under controlled conditions. Soap-
producing factories developed in France and Italy, where olive oil was plentiful and used as the
main ingredient, throughout the sixteenth, seventeenth, and eighteenth centuries. In the nineteenth
century, palm oil began to replace olive oil in formulations. By the turn of the twentieth century,
many people still made soap by boiling fats and lye to produce solid cakes.

In the United States, the soapmaking industry marks 1837 as an important year. In that year,
William Procter and James Gamble established a candle and soapmaking business. Their company,
Procter & Gamble, went on to become one of the foremost soap and detergent makers in the
country. Procter and Gamble's famous Ivory soap bar was first introduced in 1882. Lever Brothers,
another major soap and detergent company, offered Lifebuoy and Sunlight soap bars in 1895.

Procter & Gamble introduced Oxydol, a flaked laundry soap, in 1924. Oxydol was followed in
1933 by Dreft, the nation's first synthetic household detergent. Instead of soap, Dreft's formula
was based on alcohol sulfates. Alcohol sulfates were the first type of surfactants to make a
significant impact in the formulation of cleaning products.

The term "surfactant" comes from shortening the phrase "surface active agent." A surfactant is a
type of chemical capable of changing the surface properties of a liquid. As a result of their chemical
nature, surfactants help water wet the surface to be cleaned more quickly and thoroughly than use
of water alone. When water and mechanical action combine to remove soils from a surface,
surfactants also help keep the soil suspended in the liquid so that it does not redeposit on the item
being cleaned. Surfactants are basic ingredients in most products intended for use in washing
clothes and dishes.

The first synthetic detergents based on sodium dodecylbenzene sulfonate were developed in 1939.
They were followed by detergents based on alkylbenzene sulfonate (ABS), which provided better
cleaning and more suds than traditional soaps at lower prices. ABS grew in popularity and its use
expanded with the introduction of front-loading drum washing machines.

Significant Events Affecting the Industry

One of the most recent significant events for the soap and detergent market was the value-pricing
trend. The early 1990s saw a move in this market away from premium pricing for name brands as
customers became more value conscious. Although exceptions existed, many soaps and detergents
were seen as undifferentiated commodity items. In 1992, reduced value pricing was being used by
approximately 40 percent of detergent manufacturers. Typically, a value-priced product cost $1 or
more less than a premium-priced product. By the early 2000s, leading discount stores like Wal-
Mart were selling an increasing amount of their own store-branded soap and detergent products,
offering consumers additional opportunities to save money.

A similar trend brought the increased popularity of "value added," multi-purpose products. These
included items such as detergent with bleach or fabric softener and three-in-one personal cleansing
bars. Moisturizing, deodorant, and anti-bacterial-multi-benefit synthetic detergent (also called
syndet) bars and soap/syndet combination bars became popular following the introduction of Lever
2000 in 1990. Analysts expected multi-benefit bars to capture 10 to 20 percent of the soap market
by the mid-1990s.

In addition to value, consumers in the early 2000s were pressed for time. As the pace of work and
home life became more stressful and hectic, soap and toiletries that emphasized relaxation, but
which could still be used quickly, constituted a strong category within the industry. Among these
products were aromatherapy products like scented body washes, as well as other liquid and gel
soaps. These were replacing bar soaps, which were declining in popularity.

For the perfume, cosmetic, and toiletry segment recent challenges including regulatory changes,
product safety concerns, calls for scientific data to document product claims, increasing
environmentalism, and pressure from the growing animal rights movement heavily affected the
industry. Congress began investigating possible revisions to the traditional "drug" and "cosmetic"
definitions established under the Food, Drug and Cosmetic Act. A report titled Classification and
Regulation of Cosmetics and Drugs: A Legal Overview and Alternatives for Legislative
Change included provisions for a third category of "cosmeceuticals" to include products like
sunscreens that fell in the gap between traditional drugs and cosmetics. Some industry analysts
welcomed legislative changes to clarify product distinctions but doubted whether manufacturers
would accept proposals that would require safety and efficacy testing to substantiate label claims.

SOAP INDUSTRY IN INDIA:

India Soap Market Trends:

The rising consciousness regarding personal hygiene among the masses is one of the key factors
driving the market growth. With the increasing incidence of communicable infections, consumers
are widely using soaps to prevent the transmission of germs, viruses and other pathogens.
Government and private organizations are also installing automatic liquid and foam-based soap
dispensers to encourage regular handwashing and enhance the convenience for the users.
Additionally, various product innovations, such as the launch of hand-crafted soaps manufactured
using organic and natural ingredients, are acting as other growth-inducing factors. These soaps are
usually infused with essential oils, natural fragrances and aesthetically appealing coloring agents
to attract a wider consumer base. Other factors, including the implementation of favorable
government policies promoting public hygiene, along with the rising expenditure capacities of the
consumers, are anticipated to drive the market toward growth.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each sub-segment of the India soap
market, along with forecasts at the country and regional level from 2022-2027. Our report has
categorized the market based on type, form, product and distribution channel.

Breakup by Type:

• Organic
 • Conventional

Breakup by Form:

• Liquid

• Solid

• Others

Breakup by Product:

• Bath Soap

• Kitchen Soap

• Medicated Soap

• Laundry Soap

• Others

Breakup by Distribution Channel:

• Supermarkets and Hypermarkets

• Convenience Stores

• Pharmacies

• Online Stores

• Others

Breakup by Region:
 • North India

• West and Central India

• South India

• East India

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the
key players being Colgate Palmolive (India) Ltd, Godrej Consumer Products Limited, Himalaya
Wellness Company, Hindustan Unilever Limited, ITC Limited, Jyothy Laboratories Ltd,
Karnataka Soaps and Detergents Limited, Patanjali Ayurved Limited, Reckitt Benckiser (India)
Ltd and Wipro Consumer Care & Lighting.

COMPANY PROFILE:

⮚ Date of establishment : 1st October 1973

⮚ Name of the unit industry: M/S Ganesh Soaps and Detergents
 ⮚ Constitution: Registered Partnership Firm
⮚ Corporate office: Panchavati, Shirali, Bhatkal Taluk, Uttar Kannada
⮚ Name of the Partners: Shri Ravindra Kamath
Shri Shrinivas Kamath
Smt Savita S Kamath
Smt Reshma R Kamat
⮚ Nature of the activity: Manufacturing Oils and Soaps
⮚ Sector: Small scale industry
⮚ Capital Investment: 9878751
⮚ Capacity: Three tons of Soaps per day/16 hrs
⮚ Turnover when company started:
⮚ Current turnover: Rs 10 crore
⮚ Products : Soaps and Detergents

⮚ Total employees: 35 (Male-25 and Female-10)

⮚ Current status: Moderate profit making

Registration of the firm:

For the registration of the industry they have gone to through two types of registration

● Firm registration
● Registration for sales tax

Initially the firm registers itself with District Industrial Centre (DIC) with its preliminary
project report at Bhatkal Branch. Then District Industrial Centre (DIC) will issue temporary
registration certificate (TRC). This TRC after acquiring, Industry can transact permanently.

In soaps manufacturing Industry they are of two types: Classified on the basis of raw
materials used in production

1. Oil based Industries

2. Chemicals based industries such as Surfs, Wheel, Tide, Rin, Arial etc
 “Ganesh Soaps and Detergents”is an oil based industry.

PROMOTERS:

It is partnership firm. The partners of the company are

1. Shri D.J Kamath is the Managing Partner of the company

2. Smt S.D Kamath is the sleeping partner of the company
3. Shri S.J Kamath is the active partner of the company
4. Smt S.S Kamath is the sleeping partner of company
5. Sri R.D Kamath is the active partner of the company

Human Resource:

Total employees: 35

Male: 20 (skilled-5, unskilled-20)

Female: 10 (skilled-0, unskilled 10)

Training: New employees will get 1 week to 1 month training with daily wages.

Salary: Minimum-12000

Maximum-20000

Facility: Medical allowance

Timing (Duty shift): 9:00am to 6:00pm (Lunch gap-1:00pm to 2:00pm)

Sunday holiday
VISION, MISSION, AND QUALITY POLICY:

VISION:

“To be a market leader in the soap industry”

MISSION:

● “To diversify into FMCG products”

● To produce best quality product
● To purchase high capacity machines

QUALITY POLICY:

Ganesh soap and Detergents enhances customer satisfaction by supplying quality products
on time through continental improvements of process in the organization. Hence controlling
quality is an essential activity. The Ganesh Industry not has any mechanical technique to control
the quality of products. They have done their own method to check the quality of products. They
check the quality at all the stages of production.

They use first quality of raw materials to produce soap. This shows their contribution to
the quality of the products (soaps). If the quality of the soaps is not satisfactory then they
reproduced by adding some required inputs.

Contribution to Society:

“We are from Society so we are for Society”

-Says Managing partner

D.J Kamath
 They are providing Mid-day meal to 235 Students since last 7-8 years of
“JanathaVidyalaya”,Shirali, they give donations and fund to temples.

PRODUCT PROFILE:

In chemistry, soap is a salt of a fatty acid. Soaps are mainly used as surfactants for washing,
bathing, and cleaning, but they are also used in textile spinning and are important components of
lubricants.

Soaps are used in day to day life by the people. They are used for many purposes like
washing clothes, clearing the vessels, vehicles etc. These soaps are in different forms, which are
manufacturing in soaps industry like Callers, Bars, Powder, and Liquid etc. In market there is lot
of demand for good quality soaps with comparatively less price. So there is more scope for such
industry and marketing unit which supplies soaps.

Brand Name:

▪ Ganesh Soaps
▪ Gopika Soaps
Daily Three tons of soaps are manufactured in this unit and this can be marketed in and
around Uttar Kannada, Dakshina Kannada, Udupi and some part of Shimoga District

Production Cost:

Ganesh Soamps: Rs 80/kg

Gopika Soaps: RS 70/KG

Selling Cost:

Ganesh Soaps: Rs 90/kg

Gopika Soaps: Rs 80/kg

Tax (GST): 18%

Equipment’s and Tools:

Cutting Machines 2 No’s

Stamping Machines 5 no’s
Big Boiler 1 No’s
Pans 6 No’s
Small Boilers 4 No’s
Wrapping machine 1 No’s

Raw material used in production in Ganesh Soap Industry:

Raw materials which are required for the process of manufacturing soaps are as follows

▪ Non-edible oil like rise barn oil (when polishing rise, powder will be separated from it.
From it oil can be prepared which is known as rise barn oil). It comes under non-edible oil,
cotton seed oil, coconut oil etc.
▪ Sodium silicate
▪ Palm fatty acid
▪ Caustic soda hard flake or liquid
▪ Soap stocks (refinery waste)
▪ Perfume from Pune
▪ Colors non-edible industrial grades, Ahmedabad.

Source of Raw Materials:

SI.N Suppliers Name Place Materials

1 Sanchem Industries Belgaum Caustic Soda
2 Bilt Chemicals Karwar Caustic soda
3 Classic Enterprises Pune Perfume
4 Kirti Home Industries Hubli Soap stone Powder
5 Manjushree Traders Mysore Fatty Acid oil palm
6 Balaji oil Industries Pvt. Ltd Belgaum Fatty Acids
 7 Ramanna Minerals Enterprises Chikkanaya Soap Stone Powder
8 Bhagyalaxmi Refinery Ltd Tirupur Soap Stocks
9 Siddaganga Oil Extraction Ltd Tumkur R.B Oil
10 Simhapuri Agro Products Ltd Nellur Palm oil
11 Belgaum silicate & Chemicals Belgaum Sodium Silicate
12 Kamath Rice mills and Industries Mangalore Sodium Silicate
13 Shreyas enterprise Mangalore Sodium Silicate
14 G.K Process Shivakashi Plastic
15 MadhavdasMinilal and Company Ahmedabad Soaps colors
16 Bankapur Church Local Fire Woods
17 Prince Products Crafts Hubli Gum Roll

All edible refineries are bought from Andhra Pradesh, Tamil Nadu and some other part of
Karnataka. They are keeping move of Raw Materials of 15 to 25 days. The Raw Materials is
harmless to the worker one who involved in manufacturing process.

Equipment’s and Tools used in Production Process:

Equipment’s which are used in Ganesh Soaps and Detergents Industry for the purpose of
manufacturing hand soaps are listed below:

Boiling pans of 1000kg capacity 2 in No’s

Oil making pans of 500kg capacity 2 in No’s
Stamping Machine 4 in No’s
Cooling Mould trolley type iron sheets 4×15×15 size
Mixing sticks of iron pipe 11/2 diameter 5 in No’s
Bar cutting table 7 “0” XI “6” size
Sodium silicate mixing pans 500kg capacity 1 in No’s
Dye set of casting brass metals 4 in No’s
Computer system
Spanner, steel wire, buckets and cutting plates hammers etc
 Diesel generator of 3HVA capacities & 1HP pump
Raw soaps storing tank RCC of dimension 3m×3m×45 with
4 compartments

Process of manufacturing:
Mixing:

Predetermined quality of caustic soda is to be taken and mixed with known quality of water.
For mixing mild steel pan is used during the process of mixing. If there is scrap or wastage it is
recycled by adding it before boiling. Then the mixture of caustic soda, water and wastage are
boiled in the mild steel pan. It required minimum six hours of time.

Boiling:

Palm oil or coconut oil and soap stone powder are to

be taken at a known quality and mixed in separate pan for
six of boiling. The mixtures are boiled simultaneously.

Adding:

Then sodium silicate of known quantity is taken

in separate pan and a little quality of soap stone is added
again required quality of soap color and perfume are
added to this mixture. They are stirred using stirring
sticks.

Cooling:

When the mass comes to a pasty from then it is

poured into cooling moulds. This hot pasty form takes 96
hours to cool and become ready to cut into bars.
Cutting:

After cooling, they are cut down into desired shapes

and size, different quality of soap are cut down in different
size by using different cutting table.

Packing:

This cut down soap of different qualities and shapes are

named by using handling machines, which prints the name on
the soap. After printing names, they are packed into empty
corrugated box. Now product is ready for marketing.

Estimated raw materials required for one tons of soaps:

SLN Materials Quantity

1 Sodium silicate 350kg
2 Soaps stocks 80kg
3 Oil 150kg
4 Soaps stone powder 350kg
5 Colors 500kg
6 Perfume 5kg
7 Caustic soda 25kg

AREAS OF OPERATION:
 Ganesh Soaps and Detergents Company operates within the regional areas that is in and
around Uttar Kannada. Company expands its business up to Udupi, Mangalore and up to Sagar,
Shimoga.

INFRASTRUCTURE FACILITIES:

Infrastructure is the basic physical and organizational structure needed for the operation of
a society or enterprise, or the services and facilities necessary for an economy to function. It can
be generally defined as the set of interconnected structural elements that provide a frame work
supporting an entire structure of development.

Ganesh soaps and detergents have a very friendly and comfortable infrastructure which
provides the employees a good atmosphere and satisfaction. A small canteen facility for tea and
Tiffin is available for employees, wash rooms and cleaning facilities are also seen. Rest rooms and
clean toilet facilities for both men and women are provided separately.

The Ganesh Soap and Detergent Industry is located rich in its infrastructure facility. This
soap manufacturing industry is located in the area of Shirali at Panchavati in Bhaatkal Taluk. This
is very near to highway road so it is one of the advantages to transport the goods to the market
easily. This industry is providing their best infrastructural facilities though in the form of location
based infrastructural facility with proper layout of equipment and machineries for manufacturing
soaps. The office is well furnished comfortable chairs and tables for each office staffs. The office
staffs are provided with computer system for the office work. This industry is providing
transportation facility for the workers. A small canteen facility for tea and Tiffin is available for
employees, wash rooms and cleaning facilities also seen. Rest rooms and clean toilet facilities for
both men and women are provided separately. Some facilities are explained below.
Electricity:

In this industry, power is needed only for lighting. Power doesn’t have any direct effect on
the manufacturing process. Hence power is a major requirement at the night shift.

Fuel:

For fuel, firewood is used in this industry. 500kg firewood required for per day for
production of soaps. They keep stock of firewood of 15 days.

Transportation:

Ganesh Soaps and Detergent Industry has proper transportation facility for distributing the
product to the channel members. So the company can easily transport the products to from one
place to another place. And also they have their own vehicle to transport the product. The industry
has the TATA Motors vehicles to supply the soaps to the market.

Water:

In every manufacturing industry or concerns water is essential. In soap manufacturing

industry large quantity of water is required to mixture the raw materials and to produce soap i.e.
in the boiling process, drinking water is required to the workers. They have installed 3 KVA pump.

Machinery:

This industry is using good quality machinery for their manufacturing process. Here the
machineries are using for mixing, cutting, boiling and manufacturing. Each unit of worker is
takeover by machines.

Storage facility:

Ganesh Soaps and Detergent Industry is having more storage rooms facilities in the
industry. It has separate storage rooms for storing raw materials and produced goods.
Labors:

The main things in this industry is having good eligible employees for the doing job.

Achievements or awards:

As Ganesh Soaps and Detergents is a small scale industry, no such awards and rewards are
in favor of it because it is not under the list of ranking industries. But it is on its way of potentialities
and achievements in terms of self-satisfaction and improvements. One of the active partners of the
Ganesh Soaps and Detergents believes that there 100% job satisfaction to employees and a good
quality is maintained, this is the achievement and reward for them.

COMPETITORS INFORMATION:

Regional level:

▪ Kasturi Bar Soaps Mangalore

▪ Nandi Bar Soaps Tumkur
▪ Gopal Soaps Hubli
▪ Laxmi Soaps Dharwad

National level:

▪ Wheel
▪ Ok
▪ Rin
▪ Tide
▪ Ariel
SWOC ANALYSIS:

A SWOC analysis (alternatively SWOC matrix) is a structured planning method used to

evaluate the strengths, weaknesses, opportunities and challenges involved in a project or in a
business venture. A SWOC analysis can be carried out for a product, a place, industry or person.
It involves specifying the objective of the business venture or project and identifying the internal
and external factors that are favorable and unfavorable to achieve that objective. Some authors
credit SWOC to Albert Humphrey, who led a convention at the Stanford Research Institute in the
1960s and 1970s using data from Fortune 500 companies.

SWOC analysis aims to identify the key internal and external factors seen as important to
achieving an objective. SWOC analysis groups key pieces of information into two main categories.

1. Internal factors:

The strengths and weaknesses internal to the organization

2. External factors:

The opportunities and challenges presented by the environment external to the organization

Strength:

Characteristics of the business or project that give it an advantage over others

Weakness:

Characteristics that place the business or project at a disadvantage relative to others

Opportunities:

Elements that the project could exploit to its advantage

Challenges:

Elements in the environment that could cause trouble for the business or project

Simple rules for successful SWOC analysis:

● Analysis should distinguish between where your organization is today, and where it could
be in the futures
● Be specific. Avoid grey areas
 ● The SWOC framework offers a good starting point for analysis, but don’t ignore your
common sense, feel and experience.
● Analyze in context to your competition i.e. better then or worse than your competition.
● Keep your SWOC short and simple. Avoid complexity and over analysis
● SWOT is objective two people rarely come up with the same final version

SWOC ANALYSIS OF GANESH SOAPS AND DETERGENTS:

Strengths:

▪ Good regional market

▪ Manufacturing layout is eco-friendly
▪ The only industry in Uttar Kannada district manufacturing oil soaps
▪ Good local market share

Weakness:

▪ There is no regular scheme/training for a new employees

▪ High competition from other FMCG brands
▪ The industry is concentrating more on labor intensive processed. These can be easily done
with the help of the machines
▪ There are no particular trained personnel who can manage HR
▪ No promotional (advertising) activates

Opportunities:

▪ They can also enters into the detergents sections

▪ All the expansion profits will lead to higher profits

Challenges:

▪ Tough competition from MNC’s brands and other local industries

 ▪ This unit is purely a partnership firm so disputes between the partners may arises in the
future

FUTURE GROWTH AND PROSPECTS:

Ganesh Soaps and Detergents is a small scale industry which was started in the year 1973
by five partners namely Shri D J Kamath, Sri Ravindra D Kamath, Shri Shrinivas J Kamath, Smt
Savita S Kamath and SmtSaraswati D Kamath. Since then the investment was only Rs 98,78,751/-
but today this industry has achieved a turnover of Rs 1,46,17,410. Today 38 years later it has
become one of the survival small scale industries in Karnataka state.

The activity of this plant in 1973 was limited to only a product called ‘GANESH SOAPS’.
But today apart from Ganesh soaps, it is manufacturing similar soap products called ‘GANESH
CAKES, GOPIKA CAKES’. These products have been widely appreciated and the industry is
presently exporting it to in and around states of Karnataka.

The main intension of Ganesh Soaps is to maintain goodwill of the company. Providing
more employment to the local people and come up with new layouts and with producing Detergent
products and expansion of the business towards global market. The company is also going to install
new machineries with latest technology in production department which will increase more
efficiency. Retain the customers with giving more satisfaction about the products. Company wants
to increase up to 25 crore of sales in next 5 years. And also spread its sales territory to all market
in Karnataka in all place. Company is having intension to enter in to FMCG product within next
10 years. The company is planning to build widest distribution network in all over the Karnataka
as well as in some part of the Goa in next few years.
PART C:

THEORITICAL BACKGROUND OF THE STUIDY:

Job Satisfaction – Introduction

Siegal and Lance (1987) stated that ‘job satisfaction is an emotional response defining the degree
to which people like their job.’

Work is a central part of almost everyone’s life. Adults devote almost all of their waking time to
work as career development makes up almost 70% of all human developmental tasks. Hence it is
important that the employees feel a sense of satisfaction with their job or else it might lead to
frustration, anger and in some cases even depression.

Perceived satisfaction on the job is reflected by the needs of sense of fulfilment and expectation
for the job to be interesting, challenging and personally satisfying. Job satisfaction is also an
achievement indicator in career developmental tasks.

There are numerous studies on job satisfaction, and the results are often valued for both humanistic
and financial benefits. When employees are satisfied, they tend to care more about the quality of
their work, they are more committed to the organization, they have higher retention rates, and they
are generally more productive.

The present times are very competitive and hence there is a lot of pressure for each organization
to be the best for this reason, organizations now demand for the better job outcomes. In fact,
modern times have been called as the “age of anxiety and stress”.

This pressure to perform at their best at all times creates a lot of stress to the employees, known as
job stress. Job stress can reduce productivity, increase mistakes and accidents at work, encourage
absenteeism, lower morale, increase conflict with others and cause physical and emotional
problems. High levels of work stress are associated with low levels of job satisfaction. A low level
of job satisfaction ultimately leads to poor life satisfaction.

Job Satisfaction – Meaning

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.

Job satisfaction relates to the total relationship between an individual and the employer for which
he is paid. Satisfaction means the simple feeling of attainment of any goal or objective. Job
dissatisfaction brings an absence of motivation at work.

Research workers differently describe the factors contributing to job satisfaction and job
dissatisfaction. Hoppock 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 unpleasurable 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 one perceives it as offering or entailing.”

Job Satisfaction – 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.
Scientific management (as known as 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. It contributed to a change in
industrial production philosophies, causing a shift from skilled labor and piecework towards the
more modern approach 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.

Job Satisfaction – Importance

Job satisfaction is a frequently studied subject in work and organizational literature. This is mainly
due to the fact that many experts believe that job satisfaction trends can affect labour market
behaviour and influence work productivity, work effort, employee absenteeism and staff turnover.
Moreover, job satisfaction is considered a strong predictor of overall individual well-being, as well
as a good predictor of intentions or decisions of employees to leave a job.

Job satisfaction is also important in everyday life. Organizations have significant effects on the
people who work for them and some of those effects are reflected in how people feel about their
work. This makes job satisfaction an issue of substantial importance for both employers and
employees.

As many studies suggest, employers benefit from satisfied employees as they are more likely to
profit from lower staff turnover and higher productivity if their employees experience a high level
of job satisfaction. However, employees should also ‘be happy in their work, given the amount of
time they have to devote to it throughout their working lives’.

Job Satisfaction – 3 Main Factors: Personal Factors, Factors Inherent in the Job and Factors
Controlled by the Management

Job satisfaction refers to a general attitude which an employee retains on account of many
specific attitudes in the following areas:

There are different factors on which job satisfaction depends.

Important among them are discussed hereunder:

(i) Personal Factors:

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

(ii) Factors Inherent in the Job:

These factors have recently been studied and found to be important in the selection of employees.
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, influence of internal and external environment
on the job which are uncontrolled by the management, etc.

(iii) Factors Controlled by the Management:

The nature of supervision, job security, kind of work group, and wage rate, promotional
opportunities, and transfer policy, duration of work and sense of responsibilities are factors
controlled by management. All these factors greatly influence the workers. These factors motivate
the workers and provide a sense of job satisfaction.

Though performance and job satisfaction are influenced by different set of factors, these two can
be related if management links rewards to performance. It is viewed that job satisfaction is a
consequence of performance rather than a cause of it.

Satisfaction strongly influences the productive efficiency of an organisation whereas absenteeism,

employee turnover, alcoholism, irresponsibility, non- commitment are the result of job
dissatisfaction. However, job satisfaction or dissatisfaction forms opinions about the job and the
organisation which result in boosting up employee morale.

Job Satisfaction – Variables

Several studies have been carried out in the past of determine the correlates of high and low job
satisfaction. These studies have related job satisfaction to two types of variables- organizational
and personal.

Findings with regard to some of these variables are given below:

I. Organizational Variables:

(1) Occupational Level:

The higher the level of the job, the greater the satisfaction of the individual. This is because higher
level jobs carry greater prestige and self-control. This relationship between occupational level and
job satisfaction stems from social reference group theory in that our society values some jobs more
than others.
Hence, people in valued jobs will like them more than those who are in non-valued jobs. The
relationship may also stem from the need fulfilment theory. People in higher level jobs find most
of their needs satisfied than when they are in lower level ones.

(2) 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. Since job content in terms of
variety and nature of tasks called for is a function of occupational level, the theoretical arguments
given above apply here also.

(3) Considerate Leadership:

People like to be treated with consideration. Hence considerate leadership results in higher job
satisfaction than inconsiderate leadership.

(4) Pay and Promotional Opportunities:

All other things being equal these two variables are positively related to job satisfaction.

(5) Interaction in the Work Group:

Here the question is- when is interaction in the work group a source of job satisfaction and when
it is not?

Interaction is most satisfying when:

(i) It results in the cognition that other person’s attitudes are similar to one’s own, since this permits
the ready calculability of the other’s behavior and constitutes a validation of one’s self;

(ii) It results in being accepted by others; and

(iii) It facilitates the achievement of goals.

II. Personal Variables:

For some people, it appears most jobs will be dissatisfying, irrespective of the organizational
conditions involved, whereas for others, most jobs will be satisfying. Personal variables like age,
educational level, sex, etc., are responsible for this difference.

(1) Age:

Most of the evidence on the relation between age and job satisfaction, holding such factors as
occupational level constant, seems to indicate that there is generally a positive relationship
between the two variables up to the preretirement years and then there is a sharp decrease in
satisfaction.

An individual aspires for better and more prestigious jobs in later years of his life. Finding his
channels for advancement blocked his satisfaction declines.

(2) Educational Level:

With occupational level held constant there is a negative relationship between the educational level
and job satisfaction. The higher the education, the higher the reference group which the individual
looks to for guidance to evaluate his job rewards.

(3) Sex:

There is as yet no consistent evidence as to whether women are more satisfied with their jobs than
men, holding such factors as job and occupational level constant. One might predict this to be the
case, considering the generally lower occupational aspiration of women.

Many other correlates of job satisfaction have been found by several other studies. Thus, Stagner,
Flebbe and Wood in their study of 715 male unionised rail-road workers done in 1952 have found
general working conditions, union management relations, general quality of supervision and
grievance handling procedure as correlates of job satisfaction.

Gadel in his study of 301 female typists and clerks, done in 1953, found ease of commuting to
work co-workers, working hours and company prestige as correlates. Ross and Zander in their
study of skilled women workers in a large company, done in 1957, found recognition autonomy,
doing important work and fair evaluation of work done, as important correlates.
Durganand Sinha in his study of office and manual workers done in 1958 has found job status,
type of work, supervisory behaviour and work group as correlates.

Job satisfaction tends to correlate with a number of other variables in the organization.

Relations with some variables are given below:

i. Job-Satisfaction and Turnover:

Job-satisfaction consistently correlates with turnover. It might have been seen that employees
having low job-satisfaction leave their employer as early as possible. So, low job satisfaction
increases the turnover and high job satisfaction decreases it. Thus it has a negative correlation with
labour turnover.

ii. Job-Satisfaction and Absenteeism:

Absenteeism has the same relationship with the job satisfaction as has the turnover. Both are
negatively correlated. Employees who have low job satisfaction tend to remain absent off and on
from their job.

iii. Job-Satisfaction and Community Condition:

Job- satisfaction is influenced by community conditions. It is generally advocated that poor

community conditions pull down job satisfaction and better community conditions push it up. But
this is not always true. What usually happens is that employees compare their community
conditions with their job conditions. If job conditions are better than that of community conditions,
job satisfaction is higher.

Most usually, workers compare job’s ‘way of life’ with the community way of living and they are
more satisfied when these two values come reasonably close together. If job’s way of life is better
than the community way of life, job satisfaction is higher and if job’s way of life is worse than the
community way of living, job satisfaction will be lower.

Job Satisfaction – Measurement

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

The Job Descriptive Index (JDI), created by Smith, Kendall, & Hulin (1969), is a specific
questionnaire of job satisfaction that has been widely used. It measures one’s satisfaction in five
facets- pay, promotions and promotion opportunities, co-workers, supervision and the work itself.
The scale is simple, participants answer either yes, no, or cannot 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.

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.

Nonverbal messages play a central role in interpersonal interactions with respect to impression
formation, deception, attraction, social influence and emotional expression. 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. 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 subordinate’s in the workplace.

Job-satisfaction and emotion mood and emotions while working are the raw materials which
cumulate to form the affective element of job satisfaction. 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 state 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 regulation and emotion labor are also related to job satisfaction. Emotion work (or
emotion management) refers to various efforts to manage emotional states and displays. Emotion
regulation includes all of the conscious and unconscious efforts to increase, maintain, or decrease
one or more components of an emotion.

Although early studies of the consequences of emotional labor emphasized its harmful effects on
workers, studies of workers in a variety of occupations suggest that the consequences of emotional
labor 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 performance of emotional labor that produces desired outcomes
could increase job satisfaction.

Job Satisfaction – 3 Major Effects: On Productivity, On Absenteeism and Turnover

i. Satisfaction and Productivity:

Based on research carried out in Hawthorne studies, further research to prove that “happy workers
are productive” was carried out, which has been proved negative. Based on the conclusion of
Hawthorne studies, managers began their efforts to make their employees happier by improving
work conditions, providing Laissez-faire type of leadership, expanding various facilities to the
workers, but it has been found that there is no direct relationship between happiness and
productivity.

Robins concluded that productive workers are likely to be happy workers. Further research on the
subject suggests that organization having happy workers might have increased productivity. On
individual level it may not be true due to complexity of environment, work processes, various
systems and sub systems having impact on the individual employee.

But it can be said from organizational point of view that organization that are able to evolve such
policies that make employees happy bound to have improved productivity. V.H. Vroom.
Productivity is considered as reward for hard work which is due to high level of satisfaction.

However globalisation, speed of machines and knowledge explosion, impact of media on workers,
social awareness and high expectations of employees to meet social obligations are important
factors to ensure high satisfaction level of employees. While evolving industrial practices, above
factors should be considered favourably and employee growth achieved so that organizations grow
automatically.

ii. Satisfaction and Absenteeism:

There is an inverse relationship between satisfaction and absenteeism. When workers are more
satisfied the absenteeism is low. When satisfaction level is low absenteeism tends to be high. There
are certain moderating variables like sick leave and degree to which people feel that their jobs are
important.

Where there is a provision for sick leave, employees would take the benefit and absent themselves.
As far as the importance of work is concerned, it has been observed that people attend to their
work when it is important to accomplish. Employees having high satisfaction would not
necessarily result in to low absenteeism but those having low satisfaction level would definitely
have high absenteeism.

iii. Satisfaction and Turnover:

It has been found that employees who are not satisfied with their jobs will have high turnover.
Employees who are satisfied will not have high turnover. Satisfaction is also negatively related to
turnover but the co-relation is stronger than what we found in absenteeism. Employee performance
is a moderating factor of the satisfaction—Turnover relationship.

In recent times a phenomenon amongst the software engineers whose performance is high, their
turnover has been noticed as high because of competition for personal growth. Organization lures
the competent person for their organizational growth. Organization cares for such high performers
and their retention. Poor performers do not leave the organization for fear of lack of job opportunity
outside.

Dissatisfied workers may express their satisfaction as given in figure

below:

The responses are based on two dimensions i.e. constructive/destructive and activity/passivity.

Exit:

Individual starts searching a new job and resign from the current job.

Voice:

Employees tries to improve working conditions. In the process suggestion to management are
submitted, increased union activates and communication is important.

Loyalty:

Workers behave passively in situation like external criticism. They wait for things to improve on
their own.

Neglect:

Deliberately and consciously allow conditions to worsen by long absenteeism, lack of interest for
quality control, targets, quota, etc. They put in reduced efforts and display lack of interest
Job Satisfaction – How to Increase Job Satisfaction?

In case the employers want to create job satisfaction for their employees, they should keep
the following things into consideration:

1. Grievance-Handling Procedure:

It is desirable that the complaints of the workers are heard patiently and the problems solved as far
as possible. Factories in which the workers’ demands/ grievances are not handled properly suffer
because the workers lose confidence in the management and become frustrated.

2. Satisfactory Future:

Every worker is definitely concerned about his/her future prospects. If the factory rules clearly lay
down the conditions for promotion and advancement, and if the worker gets the expected
promotion and improvement in pay scales at the right time, then he/ she feels more satisfied with
his/her job and becomes confident of his/her future.

If on the other hand, the worker feels that even good work will not be rewarded, then he/she
becomes frustrated and slack in his/her work.

3. Testing the Worker’s Ability and Progress:

Every worker, whether in a factory or in an office, desires that he/she should be paid according to
his/her ability. If he/she has undergone some new training or has increased his/her ability to work
in some way, then he/she should be compensated for his/her better ability through a rise in salary.

Organisations in which the management keeps an eye on the ability and progress of its workers
normally provide a high degree of job satisfaction to their workers. It is necessary that the
management should give the workers some opportunity of progressing higher and higher.

If, on the other hand, the organisation does not pay any attention to the abilities and increased
efficiency of its staff, it suffers in the long run because the workers also lose interest in their jobs
and do not often try to improve their level of efficiency. This happens because they feel that an
increase in qualifications or efficiency is not related to progress or promotion.

4. Respect for Creative Suggestions:

Generally speaking, a worker working under a particular set of conditions is best qualified to say
how and where improvements can be made. If workers are encouraged to suggest ways and means
of improving productivity and the conditions of work, they often come with very valuable ideas.

This helps in increasing job satisfaction because when the worker is praised for giving a good
practical idea, he/she tends to pay more attention to his/her work in order to win more praise. If
suggestions are neglected, then the worker feels dissatisfied and over a period of time his/her
creativity is killed.

5. Cordial Analysis or Evaluation of Work Performance:

In every organisation, the manager or the supervisor has to offer critical comments of the work
performed by the worker because he/ she must point out the worker’s mistakes and try to eliminate
them. If this criticism is offered in a cordial and friendly way, more as a suggestion than criticism,
then his/her job satisfaction is also thereby maintained. But if the worker is humiliated or bitterly
criticised for his/her mistakes, then he/she loses his/her peace of mind.

6. Increase in Wages:

Rules governing increases in salary should be clear and explicit and should be acted upon
impartially and regularly. If the worker gets the anticipated increase in salary at the right time, then
he/she feels satisfied with his/her job. If this does not happen, then dissatisfaction is the result.
Increase in salary is, in fact, the most important factor in job satisfaction.

7. Praise for Good Performance:

If workers are not praised for exceptional performance in their work, then they lose interest in it
and as a result, the organisation suffers. Generally, the worker prefers to work well and remain
occupied than merely to pass the time allotted to him/her.

If he/she is also encouraged in his/her work by an occasional word of praise and respect, then
he/she is further motivated to maintain a high level of efficiency and in fact to improve it. If he/she
is not praised for his/her work, then his/her enthusiasm and zeal immediately fall.

8. Promotion According to Ability:

In every organisation, some people get retired after completion of their service period, leaving
scope for promotion for the junior employees. If promotion is based upon the ability of the worker,
then the worker’s mental satisfaction is maintained. If, on the other hand, promotion depends upon
other factors such as casteism and personal favour, then the workers interest in his/her work
declines.

9. Proper Quantum of Work:

If job satisfaction is to be maintained, it is essential that the expected quantity of work does not
exceed the individual’s ability to complete it. If he/she has to work more than he/she comfortably
can for a long time, then he/she is bound to become disgusted, depressed and tired.

10. Equal Wages for Equal Work:

Labour unions in almost every industry are demanding that there should be equal pay for equal
work. In any factory or office, a worker must be paid as much as other workers are being paid in
his/her or other organisations for similar work. The worker feels satisfied if this equality is
maintained. If it is not, then the worker loses his/her satisfaction.

11. Freedom to Seek Help in Solving Problems:

Very often the worker is faced by problems in his/her work that he/she cannot solve alone. In such
a case, he/she should be free to seek help and guidance from other workers or his/her superiors. If
it is so, then the worker gets more job satisfaction.

12. Absence of Unnecessary Intervention and Criticism:

No individual wants to sacrifice his/ her self-respect. If the worker is unnecessarily shown
disrespect or abused, then he/she quickly becomes dissatisfied. Hence, he/she should be protected
from useless interruptions and criticism.

13. Satisfactory Hours of Work:

The hours of work in any factory or office should be convenient and so arranged as to offer the
least possible inconvenience to the largest number of employees. If this is not looked into, the
workers become dissatisfied.
14. Availability of Leaves and Rest:

In every industrial organisation, the workers should be given the proper amount of rest and
holidays on festivals and other occasions of social celebrations. Nowadays, workers are allowed
to avail themselves of around 10 casual leaves and 30 earned leaves every year in addition to the
weekly holiday.

Holidays given on festivals and on occasions of general celebration are in addition to this. Female
workers are allowed fairly long leaves during pregnancy. It is generally seen that workers feel
satisfied if the management in any organisation follows a liberal policy towards leaves to workers.

It is evident from this description of factors influencing job satisfaction that it necessitates the
creation of certain conditions of work. Different factors may be important in different situations.
An increase in wages is a common factor which is important everywhere.

Promotion is another factor which plays an important role in maintaining or destroying job
satisfaction. Apart from this, other factors may be more or less important, depending upon the
situation.

For example, an organisation in which the workers educational degrees have great importance
should also see to it that the worker is promoted when he/she adds to his/her qualifications. Finally,
it can be said that job satisfaction depends on all those factors which influence morale.

Job Satisfaction – Top 3 Theories: Content, Process and Situational Theories

There are numerous theories attempting to explain job satisfaction, but three conceptual
frameworks seem to be more prominent.

The first is content theory, which suggests that job satisfaction occurs when one’s need for growth
and self-actualization are met by the individual’s job. The second conceptual framework is often
referred to as process theory, which attempts to explain job satisfaction by looking at how well the
job meets one’s expectations and values. The third conceptual group includes situational theories,
which proposes that job satisfaction is a product of how well an individual’s personal
characteristics interact or mesh with the organizational characteristics.

1. Content Theories:
The earliest content theory was Abraham Maslow’s “hierarchy of needs”. Maslow’s (1954)
traditionalist views of job satisfaction were based on his five-tier model of human needs. At the
lowest tier, basic life sustaining needs such as water, food, and shelter were identified. The next
level consisted of physical and financial security, while the third tier included needs of social
acceptance, belonging, and love.

The fourth tier incorporated self-esteem needs and recognition by one’s peers and at the top of the
pyramid was reserved for self-actualization needs such as personal autonomy and self-direction.
According to Maslow, the needs of an individual exist in a logical order and that the basic lower
level needs must be satisfied before those at higher levels. Then, once the basic needs are fulfilled,
they no longer serve as motivators for the individual.

The more a job allows for growth and acquisition of higher level needs, the more likely the
individual is to report satisfaction with his or her job. Furthermore, the success of motivating
people depends on recognizing the needs that are unsatisfied and helping the individual to meet
those needs.

Building on the theories of Maslow, Frederick Hertzberg (1974) suggested that the work itself
could serve as a principal source of job satisfaction. His approach led to the two- continuum model
of job satisfaction where job satisfaction was placed on one continuum and job dissatisfaction was
placed on a second. Hertzberg’s theory recognized that work characteristics generated by
dissatisfaction were quite different from those created by satisfaction.

He identified the factors that contribute to each dimension as “motivators” and “hygiene”. The
motivators are intrinsic factors that influence satisfaction based on fulfillment of higher level needs
such as achievement, recognition, and opportunity for growth. The hygiene factors are extrinsic
variables that such as work conditions, pay, and interpersonal relationships that must be met to
prevent dissatisfaction. When hygiene factors are poor, work will be dissatisfying.

However, simply removing the poor hygiene does not equate to satisfaction. Similarly, when
people are satisfied with their job, motivators are present, but removing the motivators does not
automatically lead to dissatisfaction. Essentially, job satisfaction depends on the extrinsic
characteristics of the job, in relation to the job’s ability to fulfill ones higher level needs of self-
actualization. Hence the two continuum model of Hertzberg’s Motivator-Hygiene theory.
2. Process Theories:

Process theories attempt to explain job satisfaction by looking at expectancies and values. This
theory of job satisfaction suggests that workers’ select their behaviours in order to meet their needs.
Within this framework, Adams’ (1963) and Vroom (1982) have become the most prominent
theorists. J. Stacy Adams’ suggested that people perceive their job as a series of inputs and
outcomes.

Inputs are factors such as experience, ability, and effort, while outcomes include things like salary,
recognition, and opportunity. The theory is based on the premise that job satisfaction is a direct
result of individuals’ perceptions of how fairly they are treated in comparison to others. This
“equity theory” proposes that people seek social equity in the rewards they expect for performance.
In other words, people feel satisfied at work when the input or contribution to a job and the
resulting outcome are commensurate to that of their co-workers.

According to Milkovich and Newman (1990), this social equity is not limited to others within the
same workplace, and the equity comparisons often reach into other organizations that are viewed
as similar places of employment.

Vroom’s (1964) theory of job satisfaction was similar in that it looked at the interaction between
personal and workplace variables; however, he also incorporated the element of workers’
expectations into his theory. The essence of this theory is that if workers put forth more effort and
perform better at work, then they will be compensated accordingly. Discrepancies that occur
between expected compensation and actual outcome lead to dissatisfaction.

If employees receive less than they expect or otherwise feel as if they have been treated unfairly,
then dissatisfaction may occur. Conversely, overcompensation may also lead to dissatisfaction and
the employee may experience feelings of guilt. The compensation does not have to be monetary,
but pay is typically the most visible and most easily modified element of outcome. Salary also has
significance beyond monetary value and the potential to acquire material items, and Gruenberg
(1979) notes that it is also an indication of personal achievement, organizational status, and
recognition.
Vroom’s theory also goes one step further to incorporate an individual’s personal decision making
within the work-place. Vroom (1982) explained that employees would choose to do or not do job
tasks based on their perceived ability to carry out the task and earn fair compensation. To illustrate
and clarify his ideas, Vroom generated a three- variable equation for scientifically determining job
satisfaction.

Expectancy is the first variable, and this is the individual’s perception of how well he or she can
carry out the given task. Instrumentality is the second variable of the equation, and this refers to
the individual’s confidence that he or she will be compensated fairly for performing the task.
Valence is the third variable, which considers the value of the expected reward to the employee.

In Vroom’s formula each variable is given a probability value, and when all three factors are high,
workers will be more satisfied and have more motivation. If any of the factors are low, work
performance and employee motivation will decline.

3. Situational Theories:

The situational occurrences theory emerged in 1992, when Quarstein, McAfee, and Glassman
stated that job satisfaction is determined by two factors: situational characteristics and situational
occurrences. Situational characteristics are things such as pay, supervision, working conditions,
promotional opportunities, and company policies that typically are considered by the employee
before accepting the job.

The situational occurrences are things that occur after taking a job that may be tangible or
intangible, positive or negative. Positive occurrences might include extra vacation time, while
negative occurrences might entail faulty equipment or strained co-worker relationships. Within
this theoretical framework, job satisfaction is a product of both situational factors and situational
occurrences.
PART D

DATA ANALYSIS: