Internship report on

The nexus among Employee grievance, Reward system, Employee

Engagement, and Employee Performance: An Exploratory study using
Structural Equation Modeling (SEM) on employees of DHL

Exam Roll: 180218

 Internship report on
The nexus among Employee grievance, Reward system, Employee
Engagement, and Employee Performance: An Exploratory study using
Structural Equation Modeling (SEM) on employees of DHL

Prepared For
Chairman
Internship Placement Committee

Prepared by
Exam Roll Number: 180218
4th year, 8th semester
Batch Number: 27th, BBA Program
Academic Session: 2017-2018

Institute of Business Administration (IBA-JU)

Jahangirnagar University, Savar, Dhaka-1342

Date of Submission: 30th November 2022

 DECLARATION

I do confirm that the title of the internship “The nexus among Employee grievance, Reward system,
Employee Engagement, and Employee Performance: An Exploratory study using Structural equation
modeling (SEM) on employees of DHL” has been accomplished by my learnings which I have obtained
through three-month internship activities in the above mention organization also this is completely authentic
work performed by my better understanding.

I also want to declare that this is absolutely a unique work that is not been presented at any place for my
academic motive. Moreover, all the data and information that have been used to prepare this internship
report are unique, organized, and taken out by myself. On the other side, I mention that I do myself
responsible for any kind of perplexing, data manipulation for preparing this internship report.

In the end, this internship report is submitted to the Institute of Business Administration, Jahangirnagar
University as per the requirement of accomplishing the Degree of Bachelor of Business Administration.

Exam ID: 180218

Registration No: 48248
Class ID: 2253
Batch No: 27
Academic Session: 2017-2018
The major area of concentration: Marketing
Institute of Business Administration (IBA-JU)
Jahangirnagar University
 Certificate of the supervisor

This is to ratify that the student carrying Exam ID: 180218, Batch:27, Academic Session:2017-2018, a
regular student of the BBA program, Institute of Business Administration, Jahangirnagar University, has
accomplished the required internship program in Human Resource Department at DHL Global Forwarding.

Under my supervision, this report has been prepared and after reading this report it looks satisfactory for
the award of the Degree of Bachelor of Business Administration.

I wish him all the very best.

(Sign of Supervisor)
.......................................
Name of the Teachers: S.M.A. Moudud Ahmed
Designation: Assistant Professor
Institute of Business Administration (IBA-JU)
Jahangirnagar University
 Letter of Transmittal
30 November 2022

Chairman

Internship Placement Committee

Institute of Business Administration

Jahangirnagar University

Savar, Dhaka-1342.

Subject: submission of internship report on " The nexus among Employee grievance, Reward system,
Employee Engagement, and Employee Performance: An Exploratory study using Structural equation
modeling (SEM) on employees of DHL"

Dear sir,

In response to the academic requirement of the institute of business administration, Jahangirnagar

university, I have made this internship report on “The nexus among Employee grievance, Reward system,
Employee Engagement, and Employee Performance: An Exploratory study using Structural equation
modeling (SEM) on employees of DHL” with the concern of S.M.A. Moudud Ahmed, assistant professor
IBA-JU. While working in the DHL Global Forwarding Limited head office, Banani Branch in Bangladesh,
I prepared this report to reflect a better understanding of my learning over the three months here.

Therefore, I am delighted to submit this internship report for your kind consideration and evaluation.

Sincerely Yours

----------------------------------

Exam Roll Number: 180218

4th year, 8thsemester

Batch: 27th

Academic Session: 2017- 2018

Institute of Business Administration (IBA-JU)

Jahangirnagar University, Savar, Dhaka-

 Acknowledgment

At the very beginning, I would like to articulate my fullest gratitude and appreciation to the most merciful
and omnipotent almighty Allah for fruitfully accomplishing my internship report.

And would like to show my deepest gratitude to S.M.A. Moudud Ahmed for his constant support and
momentous advice on each step for a better ending. Moreover, from picking up the most relevant internship
report topic to preparing the complete report your guidance and support make it possible to presentable.

I am absolutely grateful to Syeda Effat Ara, head of human resources, DHL Global forwarding Bangladesh
Ltd, who is my corporate supervisor for providing me with vast learning opportunities in the field of human
resources by assigning a very creative and challenging role to get the actual human resource operational
knowledge from her long service experience in reputed organization. I also appreciate the cooperation and
assignment of multiple training facilities to know the whole business process of DHL around the world that
is organized by Manhan Hossain, Assistant Manager, DHL global forwarding. Besides that, showing my
thanks to Syed Ishtiaq Ali, Head of Marketing & Sales, and Abdullah AL Mamun, assistant manager of
ocean freight. All of them are playing a great role to have enlightened my knowledge with their years of
learning experiences.

Finally, I am out and out indebted to Fabian, country head of Bangladesh, Sri Lanka, and Pakistan who has
taken the initiative to offer internship programs to the fresh graduate to have acquired on-the-job training
besides their academic knowledge. Apart from that, all the employees of every department are too much
supportive and intend to allow me to know the operation function of DHL Global forwarding. Whenever I
have any kinds of difficulties regarding the operation function, provide me hand-to-hand training to enlarge
my skills.

Here, I would like to mention that I have got DP DHL product knowledge to business operation functions
on my first one-week training session which has been conducted by a group of managerial professionals
from each department and to be exact Abdullah Al Mamun, Assistant Manager of Ocean freight, Md Fayez
Ahmed, Manager of AIR freight, Asif Ali, Assistant Manager of ISC (International Supply chain), Manzur
Rahi, Assistant Manager of M&S (Marketing and sales).

vi
 Executive summary

To prepare this report, particular factors have been placed on matters of concern. In this report collecting
primary data in a specific industry is the more emphasized issue and I have collected responses in the
logistic service industry so that the actual reflection of employees would be collected and biased opinions
can be eradicated, therefore, I reach out from managerial position to staff level and their independent
responses recoded by hard copy. And in this section, we want to bring a balance between males and females
since both genders are working in this industry. After collecting their independent opening, Smart-PLS has
been used to analyze and draw a structural model to a better graphical representation of collected responses
from an independent group of participants. While preparing the survey, decided that four different variables.
Of them, three are associated with the independent variable, there are to be exact employee grievance,
reward system, and employee performance. On the other hand, one dependent variable has been set off
which is employee performance. While running the data in Smart-PLS, draw a model that is the transparent
representation of the collected opinion of employee opinion survey. This model articulates how human
resource functions affect employee performance. Also clarify that one dependent variable, employee
performance, is influenced by three different independent variables. At the same time, it gives a competitive
advantage for the managerial position to take innovative strategy so that employee grievance would be
eradicated and finding out specific steps to overcome limitations and implemented processes. In this report,
there is a positive relationship between the reward system and employee performance also the same scenario
happened to employee engagement and employee performance. But employee grievance mechanisms and
employee performance have negatively correlated since there is no established structural policy to alleviate
their grievance and that influences employee performance.

vii
 Table of Contents
Chapter one ................................................................................................................................................... 1
1.1 Introduction ......................................................................................................................................... 1
1.2 Origin of the report ............................................................................................................................. 1
1.3 Objective of the report ........................................................................................................................ 2
1.3.1 Primary objective ......................................................................................................................... 2
1.3.2 Secondary objective ..................................................................................................................... 2
1.4 Research Methodology ....................................................................................................................... 2
1.4.1 Research design............................................................................................................................ 2
1.4.2 Target group of population .......................................................................................................... 2
1.4.3 Data Collection Process ............................................................................................................... 3
1.4.5 Data analysis ................................................................................................................................ 3
1.4.6 Variable definition ....................................................................................................................... 3
1.5: Scope of the study .............................................................................................................................. 4
1.6 Limitations of the study ...................................................................................................................... 4
1.7 Report preview .................................................................................................................................... 4
Chapter Two.................................................................................................................................................. 5
Organization Overview ................................................................................................................................. 5
2.0 The inception journey of DHL ............................................................................................................ 5
2.1 Global headquarter .............................................................................................................................. 6
2.2 Journey of DHL global forwarding Bangladesh ................................................................................. 6
2.3 The organizational chart of DHL Global Forwarding (Bangladesh) Ltd. ........................................... 8
2.4 Corporate objective: ............................................................................................................................ 9
2.5 Strength in terms of members ............................................................................................................. 9
2.6 Two strength Brands ........................................................................................................................... 9
2.7 DP DHL Mission .............................................................................................................................. 10
2.8 Our corporate vision ......................................................................................................................... 10
I. Parcel & e-commerce:................................................................................................................. 11
II. Express: ....................................................................................................................................... 11
III. Supply chain: .......................................................................................................................... 11
2.9 Products and services ........................................................................................................................ 12
2.10 Airfreight and ocean freight services .............................................................................................. 13
2.11 Europe-wide transportation ............................................................................................................. 13
2.12 Contract logistics and industry solutions ........................................................................................ 13
2.13 Export-import and domestic product .............................................................................................. 13
Chapter three ............................................................................................................................................... 14
Project part .................................................................................................................................................. 14
3.1 Literature Review.............................................................................................................................. 14
Employee grievance: ........................................................................................................................... 14
Reward system: ................................................................................................................................... 14
Employee engagement: ....................................................................................................................... 14
Employee performance: ...................................................................................................................... 15
Conceptual Framework ....................................................................................................................... 15
3.2 Results and Discussions .................................................................................................................... 16
3.2.0 Elaboration of Demographic characteristics .................................................................................. 16
3.2.1 Marital status .............................................................................................................................. 16
3.2.2 Age ............................................................................................................................................. 17
3.2.3 Educational qualification ........................................................................................................... 17
3.2.4 Gender ........................................................................................................................................ 17
3.2.5 work experience ......................................................................................................................... 18
3.3.0 Model discussion ........................................................................................................................... 19
3.3.1 Measurement Model .................................................................................................................. 19
3.3.2 Discriminant variable ................................................................................................................. 20
3.3.3 Path coefficients ......................................................................................................................... 21
3.3.4 Confirmatory factor analysis ...................................................................................................... 22
Conclusion .................................................................................................................................................. 24
References ................................................................................................................................................... 25
 Chapter one
Introduction
1.1 Introduction

Knowing the organization's perspective and the employees' perceptions is the core task of every HR
professional. Like other organizations, DHL Global Forwarding Bangladesh Limited is well organized for
the employee's betterment and committed to offering the best working environment that will create a good
bond and reduce the work-life imbalance. In this report, I will demonstrate the HR activities and outstanding
initiatives that have been implemented to reduce employee grievances, motivate employees in their work
roles, and ultimately increase performance in their working field. All the initiatives from the HR department
are much more supportive for offering the best working environment and overall reflection in employee
satisfaction in their specific work role. However, DHL Global Forwarding Bangladesh Limited is doing its
operation with the collaboration of global standards so that everyone here is equally treated, and following
the central standards in Bangladesh, the HR initiative is implemented to ensure the best place to work. And
many initiatives are being implemented that are fully related to reducing employee grievances and
encouraging employees to be more loyal and productive as well.

1.2 Origin of the report

As per the obligatory requirement of the institute of business administration, Jahangirnagar university for
the completing of the Bachelor of business administration- BBA degree, I have prepared it over my learning
during the internship program. At DHL global forwarding, I have worked with the human resource
department to enlighten my theoretical knowledge into a real-life implementation.

1
1.3 Objective of the report

1.3.1 Primary objective

In this report, the primary objective was to show the effect of employee grievance, reward system, employee
engagement on employee performance.

1.3.2 Secondary objective

❖ To know the overall human resource functions

❖ To know the employee feedback employee grievance
❖ To know the employee feedback on reward system
❖ To know the employee feedback on employee engagement
❖ To know status of employee grievance and its impacted

1.4 Research Methodology

1.4.1 Research design

In section included the process of data collection method and process to the target group of the respondent.
Here, considering the sampling framework and technique and the ways of data collection and analysis
complete process.

1.4.2 Target group of population

The target population refers to the specific group of people who are working in a specific industry and
willing to participate in the survey. In this research work, we have set up our target population in the
logistics service industry specialists who are providing forwarding logistic service in Bangladesh and their
business function is B to B (Business to Business). In our survey, a total of 107 employees participated and
share their opinion in different categories.

No Particulars Frequency

1 Manager 27

2 Executive 65

3 Staff 15

Total 107

Table 1.1: Population status

2
1.4.3 Data Collection Process

The primary data has been obtained by designing questionnaires. This questionnaire has been provided to
the participant from a managerial position, Executive, and Supervisor also serving in the logistics industry.
In the first part of the research questionnaire, we included employee demographic variables. The second
section has been designed by including an employee grievance mechanism to illustrate the ways of sharing
and resolving it through management policy support. In the third section, the employee reward system has
been designed to get their actual perception of the current system and how it impacted the working
environment, also fourth part incorporated employee performance-oriented questions to observe their
contribution according to the benchmark level. Finally, the last section ended up by incorporating employee
engagement activities which is the true reflection of their dedication and commitment to their working role.

1.4.5 Data analysis

To analyze survey results, first of all, data were collected in hard copy and google form then abluted these
also assign a number to identify separately. It is a descriptive statistic to analyze the result also used standard
deviation, and mean.

1.4.6 Variable definition

Based on the survey, there are three independent variables and one dependent variable have been used to
illustrate the actual result that has recollected through survey. Here, also shows how three independent
variables affect the dependent variable. To define these independent and dependent variables, I am using
by their short form where, employee grievance is represented by EG, reward system is represented by RS,
Employee engagement is represented by EE, and Employee performance is represented by EP.

And, to analyze each question in smart PLS, there have been used Likert scale and the range belongs to 1-
5, where 1 is assigned for Strongly disagree-1, 2 is assigned for Disagree, 3 is assigned for Neither agree
or disagree, 4 is assigned for Agree, 5 is assigned for Strongly agree.

3
1.5: Scope of the study

This internship report is made based on human resource functions of DHL global forwarding (Bangladesh)
Limited where outsider influential factors are excluded.

1.6 Limitations of the study

Since DHL global forwarding (Bangladesh) Limited is operating under the following central standards of
Deutsche Post DHL Group, for sharing information regarding their internal business policies, standards
need to get central approval, and employees of this organization are very sensitive to sharing their opinions
on a questionnaire regarding on financial benefit which is provided individually. And most of the major
financial data is kept secret from external users and access is limited according to the business principle.

1.7 Report preview

To prepare of this internship report three different segments of have been form to have a better
understanding. First of all, chapter one is include in the introductory part defined the total objective of the
report, data collection process and elaboration of it. Second chapter of this report explain the organization
part was elaborated from the inception journey of DHL to it operations, products line, mission and vision
of DHL. Last part presenting the momentous part of this report, project part is defined elaborately, and also
included data analysis part of the report and drawing conclusion based on finding of the structure model
from Smart-PLS.

4
 Chapter Two
Organization Overview
2.0 The inception journey of DHL

While Neil Armstrong set his footstep on the moon a few months in 1969 DHL started its journey with the
formation of innovative service by three legends, Adrian Dalsey, Larry Hillblom, and Robert Lynn in San
Francisco where the last mane initials of the three founders represent- DHL. After the inauguration of the
business, they never think, brought revolutionized the logistics business in the world and moved to reach
around the globe. In the initial stage, the founder of DHL transported cargo documents personally by plane
between San Francisco and Honolulu. A significant consequence has been made by innovative solutions
frequently through the needs of the customer and has focused on two new dynamic sectors which are
international air express service rapid transport of documents and another one is cargo papers by plane.
Since 2002, DHL has been out and out owned by Deutsche Post where it has been operating in access to
220 countries and territories that make up the world. Here, DHL included unparalleled services in their
product line to offer the best customer service experience. In this regard, they divided their service model
into two different categories to make smooth business operations in terms of connecting all classes of
business solutions. Where make the business operation with customers which are called B to C is
conducting the windows of DHL express and to do the operation which is called B to B is operation under
the windows of DHL Global forwarding.

5
2.1 Global headquarter

Deutsche Post DHL global headquarter has been situated in the post tower in Born Germany which is a
forty-two (42) story office building to be exact in 163 meters also been recognized in the world as one of
the tallest buildings as well as the most energy efficient.

2.2 Journey of DHL global forwarding Bangladesh

From the beginning, DHL started service to grow domestic business in the international market and the
whole process of DHL will be accomplished by the support of its business units, innovative products, and
service solution. DHL started providing service in Bangladesh on 10th May with the request of Standard
Chartered Bank which is considered to be the first customer in Bangladesh. Through A homebound office
premises within one room at Gulshan in Dhaka, DHL Express inaugurated its business operation in
Bangladesh through its Agent Homebound Packers & Shippers Limited. During this time only 5 staff along
with one baby taxi and one delivery van had the fundamental resources for its starting journey. And as of
today, DHL is operating under two corporate divisions named DHL Express and DHL Global Forwarding
to segment the customer into two different sections which are business to business (B To B) and business
to customer (B To C). After its inception local and foreign business transactions have been expanded
enormously and by the time being it offers a sustainable business solution that has a great positive impact
in terms of customer acceptance and keeping a safe environment as well.

6
Headquarters in Bangladesh: DHL Global Forwarding Bangladesh Lld. Headquarters is located in the
capital city and to be more exact SMC Tower (16th and 17th floor), road no 17, 33 Banani C/A, Dhaka,
Bangladesh.

7
2.3 The organizational chart of DHL Global Forwarding (Bangladesh) Ltd.

The organization chart represents the whole talent squad of DHL global forwarding Bangladesh limited.
Here I am representing talent squad of DGF in the following section. On the vertical line has four
department, these are M&S, Finance, HR, IT, and their reporting department is not in Bangladesh and they
are working align with central team.

CEO, Asia Pacific

CEO, DGF South Asia

Head of Business
Strategy/Dev.
Cluster Head
BD/LK/MV/NP/BT

COO & Head of VAS,

DGF BD

ISC AFR Product OFR Product CDZ

S&M

Finance

HR

IT

8
2.4 Corporate objective:

From the postal service of Germany to becoming the number logistic service provider in the world is the
corporate objective of DHL. Here, DHL provides service by keeping values in three different areas without
compromising results and these are being included:

● Investment of choice
● Provider of choice
● Employer of choice.

Apart from that working for the best interest of the customer, provider, and employer in every field. In
service quality where there is no compromise to be better off. Moreover, DHL also emphasizes innovative
solutions which are industry specific through developing innovative technology and converting traditional
to smart solutions through a continuous improvement process.

2.5 Strength in terms of members

● Business operations reached more than 220 countries

● Have ranked one of the top ten (10) largest employers around the world
● Our number of employees is more than 500000 around the world
● Our position sets up one of the top ten (10) employer
● Above one million customers have been serving in one (1) minute

DHL has been operating with a large number of highly motivated and talented employees and always a
group research team only focus on creative and innovative solutions which makes our customer’s life a bit
more enjoyable with the unique product offerings. Most importantly DHL completely emphasizes green
solution that is sustainable for the future and is committed to zero carbon emission by 2050. To reach these
goals already different initiatives have been taken in many countries to bring a sustainable business solution
that will make a positive impression in the consumer’s minds.

2.6 Two strength Brands

To become an undisputable market leader, Deutsche post-DHL Group has been operating its business in a
very competitive marketplace under two strong brands. These are:

1. Deutsche post: it’s a cover-up postal service in Germany that is completely run by the German
government. And also, the inside meaning of Deutsche post represents personal proximity, quality
in terms of service, reliability to all, and groundbreaking service to keep us different from others.

9
 2. DHL: In this section, DHL pronounces itself as a personal commitment, proactive solution to its
dedicated group of customers as well as having local strength by doing parcel business not only
that which reaches too international express. On the other hand, logistics and mail solutions are one
of the core operating values of the customers. On top of that operation, the team completely put all
their efforts into providing the customized business solution, and most importantly our local and
global teams are working together on time so that any kind of complexity can easily eradicate which
increases trust in the customers by getting a too early solution.

2.7 DP DHL Mission

Deutsche Post DHL’s mission is aligned with some specific areas where emphasis on being experts in
international Express, air freight, ocean freight, road, and rail transportation also focus on international mail
service with a high degree of value addition to its customers. There are also other criteria come to highlight
in the following sections:

• Through value addition to simplifying the lives of customers

• To stay in a win-win situation for our customers, employers, and investors
• Always keeping in priority to make a position contributes to the world and left a sustainable living
place for the future generation.

2.8 Our corporate vision

Corporate vision drives us towards the ultimate goals of the organization for which we are working together
with a strong brand value to become an undisputed market leader. The following section is discussed the
broad corporate vision of DHL Global Forwarding.

10
 I. Parcel & e-commerce: both DHL Parcel and DHL e-commerce are providing domestic and
international parcel packing up, making the delivery to anywhere in the world except under
European Union sanction countries. Also, these are doing operations for the interest of the customer
for delivery and return the solution to doing their business operating smoothly. And e-commerce is
an innovative business function of DHL for an entrepreneur who is having difficulties in business
expansion and operation due to poor delivery of their goods anywhere in the world. DHL e-
commerce facilitates its operational function under the brand name of “DHL Parcel” in Europe and
other areas like the Americas, Asia Pacific, and the Middle East/Africa is known as “DHL
eCommerce”
II. Express: DHL Express is the world’s largest logistics service provider that is being connected as
a Business to Customer. And is one of the corporate divisions of Deutsche Post German logistics
company that is doing business functions with direct customers for international mail services.
III. Supply chain: one of the core service functions of Deutsche Post DHL Group is the “DHL supply
chain” which is composed of two different business units these are associated in:

1. Supply Chain

2. Williams Lea

To capture its operation stable and fix, the DHL supply chain only offers contract supply chain
business solutions to its’s nominated buyers on a large scale for its wide variety of customers. On
the other side, Williams Lea is a global provider of business outsourcing that is an expert business
information solution, to manage the company information, and communication as well.

V) Global forwarding, freight: under the name of DHL Danzas Air & Ocean is the officially
familiar mane of DHL Global Forwarding and that is another corporate division of Deutsche Post
DHL doing innovative ocean and air freight forwarding service around the world. Where its major
business function is associated with both ocean and airways that reduce business transaction time
through multi-model transaction solutions through the prominent brand mane DHL Industrial
Projects. DHL Freight and DHL Global Forwarding business operation through the same business
model. To be a convenient business partner, it always is the zenith level of flexible operation on
the behalf of the customers to meet their adequate needs in the time of making shipments both by
Air and Ocean. DHL Global Forwarding is making solutions to its business partner by providing a
one-stop service solution also bestowing values added services such as warehouse facilities, and
custom services.

11
 DGFF has two business operation divisions which are connection customers through its special
business solution. Two of the business units are being included in the following area:

❖ DHL Global Forwarding: while thinking about air freight services, DHL Global
Forwarding will be taken its position in the first place around the world. More the 30000
thousand employees around the world are working together as a team to make on-time
shipments and meet all kinds of customers’ requirements in the air and sea.
❖ DHL Freight: when it has come to road freight services, DHL freight stands in position
one the leading road freight provider in the world which engaged in different
groundbreaking service solutions for instance: high-quality LTL (less than truck load), FTL
(full truck load) also intermodal service solution to its enthusiastic customer where a total
business function is B to B (Business to Business). DHL Freight works with its strength to
smooth the complexity of customer business operations in different areas such as customs,
Trade fairs, and events, also sector-special solutions.

2.9 Products and services

DHL presents its specialty through the special categories of products and services which are being offered
in different forms to bring its specialty to the competitive market. In this competitive age, to make the
service more presentable and special DHL global forwarding adds some value-added services with core
product categories so that our customers will get a more convenient solution in terms of services and making
their business transactions easier and flourishing business growth too fast. In the following section, a special
set of services is presented all over the world. Being the top business leader as a logistics service provider,
DHL global forwarding extended its operation through the air, rail, and ocean, these are the more lucrative
business solution for the buyer as well as the customer. To consider our customer preferences and do
business safely and hassle-free, there are some specialized sets of parameters we follow, there are given in
the below section:

● Appear products by Door-to-Door service as required

● Visibility of our product end to end on both sides (Customer and provide)
● Exactly determine lead times
● Optional cargo insurance as a safe transaction and bring the security of goods
● Custom brokerage gets special appeal on the provider side

And also, products and services of DHL global forwarding are being presented in the following section
with its specialty under the three different categories:

12
2.10 Airfreight and ocean freight services

● Airfreight: Ocean Freight

● Multimodal
● International Supply chain
● Industrial Project
● Custom Brokerage
● Transport control
● Lead logistics provider
● Niche (high value, fashion, perishables, and motorsport)

2.11 Europe-wide transportation

● Groupage
● Part Loads
● Full Loads
● Rail Transportation
● Custom services
● Trade fare and events

2.12 Contract logistics and industry solutions

● Warehousing
● Distribution
● Manage transport services
● Solution (packaging, procurement)
● Information solution
● Marketingin solution
● Correspondence management
● Office document solution

2.13 Export-import and domestic product

● DHL Express 9.00, 10.00, 12.00

● DHL Express worldwide
● DHL Express easy same day
● DHL economy select
● DHL medical solution

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 Chapter three
Project part
3.1 Literature Review

An effective grievance-handling mechanism is critical and influences employee performance and

satisfaction related to higher productivity in an organization. Since the grievance handling mechanism is an
effective tool for knowing employees’ thoughts and true reflections of employees’ present situation in the
workplace that assists to improve employee morale also sharing organization information to enlarge
cooperation resulting in good team building, encourages take more responsibility, accelerating mutual
respect while treating each other, and over the consequence of it is solving conflict bringing out higher
productivity (Ngetich,2016).

Employee grievance: Effective grievance handling increases mutual understanding between employees
and management people. From the research identified, if the organization has an effective grievance
handling system can easily point out the fundamental reasons for conflicts and resolve them within a very
period (Rathod & Jariwala, 2017)

There are many specific uneven circumstances such as lack of fair treatment, and being discriminated
against rather than using a formal grievance process are the core reasons for happening sudden negative
impacts by employees in an organization’s effective characteristics that cause severe impact ultimately. In
some cases, a set of special training should be provided to the supervisor, and manager to eradicate these
unexpected business practices (Daley, 2007)

Reward system: There is a positive relationship exist between human resource practices and employees’
job satisfaction as well as employee performance in the workplace. Moreover, human resource practices
have made a large scale of influences for offering employer friendly work environment that motivates to
play a positive role. While organizations offered all the required facilities in the workplace such as
competitive remuneration packages, bonuses, and overtime facilities, and fulfill training needs in that
circumstances employees are motivated to perform well and their satisfaction level would be high (Rodjam
et al, 2020).

Employee engagement: Since employees are the key to an organization, employees should get the liberty
to make the working environment exciting and better off. If they do not get adequate space to get the
workplace fun or a perfect mix of balance, there will be a possibility to raise dis-engagement and dis-
satisfaction. Moreover, employee engagement is a combination of learning, improvement of required skills,
and overall effects on performance (Bedarkar and Pandita,2013).

14
Employee performance: A high-performance work system (HPWS) practice is an outline for making
positive upshots in terms of employee job satisfaction, employee engagement in the work culture, and
higher performance (Li et al, 2013)

Conceptual Framework

In the below conceptual framework illustrates only one dependent variable, employee Performance, has
been influenced by three independent variables which are employee grievance, reward system, employee
engagement. The effects of the three independent variables on only one dependent variable which is the
better representation of our research conceptual framework. From this conceptual framework viewers make
their understanding quite easier using on the following acronyms:

❖ EG represent Employee Grievance

❖ RS represent Reward System
❖ EE represent Employee Engagement
❖ EP represent Employee Performance

Figure 3.0: Conceptual framework

15
3.2 Results and Discussions

3.2.0 Elaboration of Demographic characteristics

The following section presented demographic variables in a precise way.

3.2.1 Marital status

The table shows that number of participant and the figure shows is the graphical representation of
respondents for better understanding. The finding from the research table 3.2 shows that majority of the
responds are single that represent 54 percent of the total participants. Marital status is one the major factors
which is directly affected on the employee work life balance and their performance. Forty six percent of
our total respondent are married and there is a comparative balance of marital status between single and
married.

Demographic Particulars Frequency percentage

Variable

Marital status Single 58 54%

Married 49 46%

Table 3.1: Designation of participants

Marial status

Single
46%
54% Married

Figure 3.1: Marital status

16
3.2.2 Age

3.2.3 Educational qualification

According to the finding, educational level, graduate, shows the highest number that which percent of the
total response. On the below table 3.3 shows that highest number of respondents are from educational level-
Graduate which is represent 43 percent of the total educational qualification.

Demographic Particulars Frequency percentage

Variable

Education Undergraduate 32 30%

qualification Graduate 46 43%

Post-graduate 29 27%

Table 3.3: Education qualification

Educational qualification

27% 30%
Undergraduate
Graduate
Post- graduate

43%

Figure3.3: Education Qualification

3.2.4 Gender

In the below graph, figure 3.4 articulates, the number of male respondents is 69 percent and female are half
of the male participants. Where total female participant is lower than male since there is fewer number
women than man who are working in logistics service industry.

Demographic Particulars Frequency percentage

Variable

Gender Male 74 69%

Female 33 31%

17
 Table 3.4: Gender

Gender

31%
Male
Female
69%

Figure 3.4: Gender

3.2.5 work experience

Here, work experience belongs to five different groups where the majority are from the experience group
of 1-5 which is 50 % and the lowest number belongs to above 20 years which is camper to 17 times lower
than the majority of the participant age group.

Demographic Particulars Frequency percentage

Variable
Work experience 1-5 54 50%
6-10 23 22%
11-15 17 16%
16-20 10 9%
Above 20 3 3%
Table 3.5: Work experience

Work experienc
16-20
9% 3%
11-15
16%
1--5
50%

6-10
22%

Figure 3.5: work experience

18
3.3.0 Model discussion

3.3.1 Measurement Model

In this section, measurement table has been measured on the basis of compositive reliability (CR) and
average variance extract (AVE), which assists to examine convergent variability of construct. this model
will be fit for the convergent variability of construct only if the finding factor loading value is more than or
equal to the value of 0.50. on the below table articulates that after elimination all the unqualified
questionaries, factor loading values fall above the standard threshold to be exact above .50. moreover, AVE
values OF employee engagement of .729 whereas the benchmark mark value is .5, so, it is in standard rage,
secondly, the AVE value of employee grievance is 6.02 while standard parameter meets the finding value
to run the model. Next, employee performance requires more than .5 to be remain in acceptable range, on
the table shows that which is in an acceptable range to meet the threshold. Lastly, structure of reward system
based on the survey result is .695 where doorstep value falls in the acceptable range to run the model.
compositive reliability remain above the doorstep level is .8 that is more appropriate to meet the acceptable
range of convergent validity. In all cases for evaluation of Alpha, the values of employee engagement,
employee grievance, reward system above the threshold value and to run all the values by measurement
model have reached to the acceptable range except one component which is employee performance and
alpha value is .572. since, factor loading, alpha, AVE, CR are in a satisfactory position so that convergent
variability of construct is approved for this model.

Construct Factor loading Alpha AVE CR

EE2 .818 .876 .729 .915

Employee EE3 .888
engagement EE4 .848
EE7 .860
Employee EG1 .794 .890 .602 .913
grievance EG10 .726
EG11 .817
EG6 .761
EG7 .776
EG8 .715
EG9 .834
Employee EP3 .854 .572 .700 .823
performance EP4 .819
RS14 .896 .855 .695 .901
Reward RS15 .746
system RS16 .865
RS9 .819

19
Whether PLS-SEM model is fit or not based on four different critaria and NFI vale has a threeshold that
should be above .90 induicate good fit. And SRMR shold be less than .8 where on the below mention moel
has some redundent variable if we eradicate these result would be below from the threeshold. At last, chi-
quare test represent the degree of freedom. In the below table shows that SRMR valus is .141 and NFI is
.340 that is represent a good fit mode. This model is fit sice SRMR is in a acceptable range and others
factors are also good position to run the model.

Model Fit
Saturated Model Estimated Model
SRMR .092 .0935
d_ULS 1.293 1.393
d_G .922 .943
Chi-square 296.586 300.911
NFI .638 .633

Table 3.1: Model fit

3.3.2 Discriminant variable

To measure discriminant variable the core formula is Fornell-Larcker creation and also evaluation Of the
cross-loading implementation. According to my finding that Fornell-Larcker approach has not been entered
in the discriminatory variable. However, this research study applied another substituted formula for getting
access in the discriminatory variable which named Multitrait-Multimethord matrix for better understanding
for instance heterotrait-monotrait ration correlation that generate the better finding in the discriminatory
variable. Part form that Kline state that heterotrait-monotrait ration correlation vales supposed to lower than
.85 which is the standard threshold to get access. And also, in the below table presented that all the value is
lower than standard threshold represent that is the standard form where there will be no issues created.

EE EG EP RS
EE
EG .703
EP .434 .344
RS .775 .848 .279

Table 3.2: Discriminatory variable

20
3.3.3 Path coefficients

Also, the below table shows that the p-value of EE and EP is less than.05, which is statistically significant,
whereas the p-values of EG and EP are above.05, which is not statistically significant, and the same
phenomenon happens to RS and EP. So that we can illustrate that employee engagement initiate increases
employee performance which is necessary to bring a balance work life balance. Same situation happened
to the reward system and employee performance. If employees are being motivated by financial and
nonfinancial reward, they are willing to put emphasis to accelerate their work performance, since, they feel
organization treat themselves according to their expectation. And also, employees given labor, skills are
being evaluated in a standard way. At the same time, some scope of improvement is necessary to evaluate
their assigning labor, grievance handling mechanism.

Path coefficients

Original sample Sample mean Standard T statistics P values

deviation
EE->EP .482 .467 .119 4.047 .000

EG->EP -.100 -.029 .168 564 .553

RS->EP .188 .221 .254 .742 .458

21
3.3.4 Confirmatory factor analysis

To evaluate structural, there are some standard parameters have been used for reliability and credibility test.
To check the convergent variability of construct, composite reliability (CR) and average variance extract
(AVE) have been applied. According to the structural model finding measurement scale would be
convergent validity only if factor holding items must be greater than or equivalent to 0.50. for RS, almost
two-third of the items are in acceptable rage apart from four items, only one item for the EG, EE and EP.
To follow the Rule of Thumb, these items are deleted as of 20 percent of total items. Convergent variability
also accepted by CR and AVE values. A member of factors has been associated with negative relation
between employee grievances and employee performance. In many cases, employees are not open up with
higher authorities to share their dissatisfaction, having difficult to reach higher authorities with their insight
problems. While putting input (collected primary data) in Smart-PLS to run the framework, over the finding
is satisfactory since all the factor loading is above stretchmark value that is still in appropriate position to
run a structure model. To have the relatable framework applied rule of thumb for eliminating unqualified
questionaries and exclude these questionnaires, we have finally got this. On the following section is
presented the unqualified questionnaires finding these while putting these responses in the Smart-PLS.

While all the collected data are putting in the Smart-PLS, we find out that there are many redundant
responses, these are there are not adequate enough to meet the standard doorstep value to run a appropriate
model. According to the rule of thumb, after eradicating these unqualified data and questionnaires finds a
standard model that is appropriate and all the value are in suitable and acceptable range in the confirmatory
factor analysis. After that, on the below present figure 3.7 present that seven question is acceptable on
employee grievance system, four questions on reward system are accepted, two question on employee
engagement are accepted, lastly two questions on employee performance are accepted when primary data
is run by Smart-PLS. and also factor loading of these questionaries is above .50 which is a satisfactory value
in all the situation where employee sharing their opinion through our conducted survey. In this case there
is positive relation exist between employee engagement and employee performance. Employee will be
motivated more If they are getting more and more entertainment activities besides their busy world
schedule. Apart from that, other actors are like reward system have impacting the employee engagement
activities while they presume that If reward are not providing equally among the total number of employee
and the devoted employee generally demotivated since they are getting equally tread in terms of the valued
added task for the organization. This kinds of thinking overall impacted on the employee performance at
the end. Over the scenario, employee grievance mechanism is equally and positivity effect on the employee
performance. So that while taking initiates to resolve sudden created dissatisfaction should have well
establish grievance handling mechanism, therefore every employee of each department will be getting

22
confident over the workplace policies and standard of resolving dissatisfaction. Over the scenario, to get
better performance from employee, organization should stablish well standard grievance handling
mechanism, reward system, employee engagement activities.

Figure 3.7: Confirmatry factor analyis

Analysing the confermaory analysis, it is clearly seen all the factors lies in satisfactory level after
eliminating all the unqualified questionares to prepare the right fit. After all model shows that there is
positive relation exist between employeee reward system and employee performance. The same
phenomenon happened on the others scenario.

23
Conclusion

Over the findings on based on the data, employee performance depends on many facts and human resource
functions can take many initiates these have directly effect on the employee performance. Employee
performance has positive relation with employee reward system and employee engagement initiatives. This
research model has been created to articulate the particular logistic industry’s employee performance has
been influenced by the independent variables, these are employee grievance, reward system, employee
engagement initiatives. To have got the findings, human resource function of logistics industry has positive
influences in work place. On the other hand, employee grievance mechanism is not well standard to alleviate
work place dissatisfaction as well as performance is negatively impacted by it. Moreover, this study also
assists in managing the body of the logistics service industry to inform the reason for a better understanding
of employee dissatisfaction and how their work performance has been manipulated by some specific
particular variable. So, the management of this industry will be well aware of the influential factors that
directly influence workplace lace. Since, though the survey collect employee opinions on a non-
probabilistic group of people and their opinion was completely independent in terms of making a decision
so they have the liberty to present their actual reflection of workplace condition so that manager of this
particular industry will get a competitive advantage in decision making, implementing strategy.

However, some others real cases are also creating a logical reason to be displeased for instance, pay scale
of qual qualification and experience are well standard but, in some situations, they are not treated equally
and there is a huge gap between senior management to executive level. Therefore, these scenarios have
been the major concerning issues of managing and reducing employee grievance.

24
References

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Chandani, A., Mehta, M., Mall, A., & Khokhar, V. (2016). Employee engagement: A review paper on
factors affecting employee engagement. Indian Journal of Science and Technology, 9(15), 1-7.

Daley, D. M. (2007). If a tree falls in the forest: The effect of grievances on employee perceptions of
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Gomathi, S. (2014). A study on grievance management in improving employee performance in a Pvt

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26
 Appendix 1

Designed questionaries for the survey

Section A: Status of employee

Section Participant’s demographic data

Gender: Educational Qualification:

o Single o Undergraduate
o married o Graduate
o Post-graduate
o Others……………….

Age: Marital status:

o 21-25 o Male
o 26-30 o Female
o 31-35
o 35-40
o 41-45
Work experience:
o 46-50
o Above o Ans: …………….....
 Section B: Employee grievance

Statements Strongly agree neither disagree strongly

agree nor disagree
agree disagree

The organization has established a prompt and

effective grievance-handling mechanism
1

2 The organization grievance procedure is based on

step ladder policy that involves formal (written)
complaint which is presented to immediate
supervisor, then the departmental head, joint
grievance committees, chief executive, and
voluntary arbitration

The
3 grievance mechanism has provided employees
with
3 judicial protection, avenue to present their
3 problems

The organization grievance mechanism has enabled

4 employees and management to resolve grievances
in peaceful, orderly and

in an expeditious manner

5 Grievance mechanism has provided a peaceful

means to reduce the pressures and fears of
employees and to settle workplace disputes
without stoppage of work

The grievance mechanism has improved

6 perceptions of fairness and equity in the
organization.

7 Grievance mechanism has enabled employees ‘to

have their say’ at progressively high levels of
decision-making

8 Grievance handling has promoted and maintained

employee satisfaction ensuring higher productivity
9 Grievance handing has enhance employees
commitment to the organization as evidenced by
their coming in on time, accepting responsibility,
making suggestions for improvements and focusing
on the achievement of organizational goals

`10 Grievance handling has resulted in increased

competency in the manner in which employees
perform assigned jobs

completing work on time with minimal errors

ensuring

improved performance

11 Grievance handling has facilitated reduction in

employees turnover and absenteeism enabling
improvement in their performance
 Section C: Reward system

Statements Strongly agree neither disagree strongly

agree agree disagree
nor
disagree
1 The salary package is well structured

2 The salary package is well managed by the

management of the unit
3 Employees receive appropriate and timely notifications
and information on any changes that affect their salary
packages
4 Rewarding employees ensures equal rewards for the
same type of work
5 My colleague from another department with the same
qualification receives a higher salary income than me
6 Employees are well informed and involved in
formulating, discussing, and implementing rewards
policies
7 I do not know what happens in terms of pay in the
organization where I work
8 Salary income is satisfactory concerning the work they
submit
9 I feel motivated by the financial rewards I receive
10 Increasing the financial reward will motivate me to
improve my future performance
11 Financial rewards positively affect the work
environment and the organizational climate
12 The salary rewards are nationally competitive
13 The salary rewards are internationally competitive
14 I feel appreciated for my work and my achievements
15 The structure of the reward system improves employee
motivation and organizational efficiency
16 The salary income I receive motivates me to contribute
to the success and effectiveness of the organization
 Section D: Employee Performance

Statement s Strongly agree neither disagree strongly

agree disagree
agree nor
disagree

1 Employee performance in your organization is

improved through effective formulation of rules and
procedures

2 Employee performance in your organization is

improved through creative training and development

3 innovative ideas put forward by the employees is

always encouraged

4 Effective recruitment and good training to the

employees can improve their performance

5 Receive their performance appraisals which are used

to determine their compensation

6 Receive their performance appraisals which are used

to set goals and plan skill development

7 I always complete the duties specified in my job

description

8 I meet all the formal performance requirements of

the job.
Results and findings

After putting collected data in Smart-PLS, all the questions do not meet to the standard value and of them
nineteen questions are in acceptable range to run the model. Apart from these nineteen questions, others
factors loading value fall in below .50. among the questionaries whose factors loading point are below .50
and are not qualified to the model, I am sharing these unqualified questions in the following sections:

• EG2-The organizations grievance procedure is based on a step ladder policy that involves formal
(written) complaint which is presented to the immediate supervisor, then the departmental head,
joint grievance committees, chief executive, and voluntary arbitration
• EG3- The grievance mechanism has provided employees with judicial protection, avenue to present
their problems
• EG4- The organization’s grievance mechanism has enabled employees and management to resolve
grievances in a peaceful, orderly and in an expeditious manner
• EG5- The organization’s grievance mechanism has enabled employees and management to resolve
grievances in a peaceful, orderly and in an expeditious manner
• RS 1- The salary package is well structured
• RS 2- The salary package is well managed by the management of the unit
• RS 3- Employees receive appropriate and timely notifications and information on any changes
that affect their salary packages RS 4- Rewarding employees ensures equal rewards for the same
type of work
• RS5- My colleague from another department with the same qualification receives a higher salary
income than me
• RS 6- Employees are well-informed and involved in formulating, discussing, and implementing
rewards policies
• RS 7- I do not know what happens in terms of pay in the organization where I work
• RS 8- Salary income is satisfactory concerning the work they submit
• RS 10- Increasing the financial reward will motivate me to improve my future performance
• RS 11- Financial rewards positively affect the work environment and the organizational climate
• RS 12- The salary rewards are nationally competitive
• RS 13- The salary rewards are internationally competitive
• RS 15- The structure of the reward system improves employee motivation and organizational
efficiency
• EE 1- At my work, I feel bursting with energy
• EE 5- When I get up in the morning, I feel like going to work
• EE 6- I feel happy when I am working intensely
• EE 8- I am immersed in my work
• EE 9- I get carried away when I am working
• EP 1- I always complete the duties specified in my job description
• EP 2- I meet all the formal performance requirements of the job
• EP 3- I am often able to perform essential duties