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PROJECT REPORT:

TITLE: “EMPLOYEE SATISFACTION

SURVEY”

SUBMITED BY:
SHAILAJA B. PATIL
MBA
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IIMS PUNE

Acknowledgement
A work is never the work of an individual but it is the
result of ideas, suggestions and co-operation of many
folks. It cannot be completed without the guidelines of
our guides.

First of all I am very thankful to Bajaj Auto Limited for

providing me the platform to do my project as a trainee.

I am sincerely thankful to Mr. S. M. Tamhane, for giving

me such a great opportunity to work thoroughly at
Chakan plant.

I am very indebted Mr. K.V.Mestry and Mr.Balaji

Srinivasan G. for guiding me on each and every step of
my work.

I am also thankful to all the respondent department

heads and officers for co-operating with me because I can
not imagine my project in present shape without their co-
operation.

Shailaja B. Patil
Date:
IIMS Pune
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INDEX:
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SR.N TOPIC

1 Executive summery

2 Company profile

3 Employee satisfaction and measures

1. Job Satisfaction
2. Job Involvement
3. Organizational Commitment

4 Effects of job satisfaction

5 Maslow’s hierarchy of needs

6 Douglas McGregor’s Theory

7 Hertzberg’s 2-factor Theory

8 Vroom’s Expectancy Theory

9 Organizational strategies for employee satisfaction

10 Methodology

11 Observations and Action plan

- As pre the employee
- As per the parameter
- As per the question

Executive summary
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It was great experience working with Bajaj Auto Limited Chakan. I worked there as
management trainees for 2 months from 15th May to 15th of July2007 topics of my
project were “employee satisfaction survey” and “review of performance appraisal
system”. During this period I came across HR functions like training and development,
induction programs, pay roll, certification, time office functions, employee counseling,
recruitment- personal interviews, few HR related functions of SAP, assisted in
implementation of speed skill development section etc. the important part of my project
was I had been thoroughly involve in many activities which resulted in value addition in
myself.

Objectives of my project in Employee Satisfaction Survey were:

Assess the current organizational culture and climate
Measure the level of employee engagement in your workplace
Determine the success rate of past objectives
Examine communication levels throughout teams and coworkers
Uncover any job security issues of your workforce
Gain insight into the relationships of employee and manager

To pay attention towards employee job satisfaction and providing better job environment
to the employees, because good people are asset for every organization. I did review of
performance management process and it’s again the perfect system of appraisal as they
are having 360 degree appraisal system.

The results of Employee Satisfaction Survey are positive because after analysis I got 83%
of employee satisfied with the current parameters like employee relation, performance
appraisal system, facilities provided, etc.

Methodology of survey was: finding need of ESS and then designing questionnaire,
distributing it among the employees and getting feedback from analysis and finally to
suggest action plans to overcome with 17% of unsatisfied employee. After that found 3
unsatisfactory parameters and design action plan.

I learned many things which are like lesions of excellence for me and come across such
beautiful organization culture and learned practically the organizational behavior.
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EMPLOYEE SATISFACTION AND MEASURES:

Employee satisfaction is based on following:

1. Job Satisfaction
2. Job Involvement
3. Organizational Commitment

JOB SATISFACTION

The term job satisfaction refers to an individual’s general attitude toward his or her job.
An individual with high level of job satisfaction holds positive attitudes about the job,
while dissatisfied individual may hold negative attitudes about the job.

Low job satisfaction can result in high attrition rate, absenteeism, and poor mental health,
which affects the rate of production.

JOB INVOLVEMENT

Job involvement measures the degree to which a person identifies psychologically with
his or her job and considers his or her perceived performance level important to self
worth.

High level of job involvement reduces attrition and absenteeism.

ORGANISATIONAL COMMITMENT

Organization commitment is defined as degree to which an employee identifies with a

particular organization and its objectives and wishes to maintain membership in the
organization.

An employee may be dissatisfied with his or her present job and consider it a temporary
condition, yet not be dissatisfied with the organisation as a whole. But when
dissatisfaction spreads to the organisation itself, individuals are more likely to resign.
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EFFECTS OF JOB SATISFACTION

The job satisfaction has an effect on the performance of an individual however in the
organisation it tends to center on its effect on productivity, absenteeism and turnover.

Satisfaction and productivity

“Happy workers are productive workers” is a myth, the concept “productive workers are
likely to be happy workers” may hold good.

Satisfaction and absenteeism

There is a negative relationship between satisfaction and absenteeism. Absenteeism
increases with decrease in job satisfaction

Satisfaction and turnover

Satisfaction is also negatively related to turnover, factors like alternative job
opportunities, length of tenure, labor market condition will also affect the turnover.

EXPRESSION OF DISSATISFACTION

Employee dissatisfaction can be expressed in various ways; however the following four
responses shall indicate different responses to employee dissatisfaction.

Exit: Dissatisfaction expressed through behavior directed toward leaving the

organisation.

Voice: Dissatisfaction expressed through active and constructive attempts to improve

conditions, may include union activity.

Loyalty: Passively but optimistically waiting for the condition to improve. It is trusting
organisation and management ‘to do the right thing’.

Neglect: Dissatisfaction expressed through allowing condition to worsen, it includes

chronic absenteeism, reduced effort and increased error rate.

SATISFACTION

Satisfaction refers to the contentment experienced when want is satisfied.

In other words, motivation implies a drive toward an outcome, and satisfaction is the
outcome already experienced.

Theories relayed with employee satisfaction:

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MASLOW’S HIERARCHY OF NEEDS

The need hierarchy model of Abraham Harold Maslow is the simple and most widely
discussed theory of motivation

Maslow’s need hierarchy divides human need into five levels and they are:

1. Physiological
2. Safety
3. Social
4. Esteem
5. Self Actualization

Essence of Maslow’s Theory

1. Unsatisfied needs influences behavior. Satisfied need do not act as motivators.

2. since needs are many they are arranged in order of importance from the basic to the
complex.
3. Unless the lower level need is minimally satisfied the person does not advance to the
next level of hierarchy.
4. As the person goes up in the hierarchy, the more individuality, humanness and
psychological health will display.
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MASLOW’S HIERARCHY OF NEEDS

Challenging
Achievement Self-
job
Actualiz
ation
Job
Status Esteem title
Needs
Friends in
Friendship Work Group
Belongingness

Stability Security
Pension
Needs
Plan
Physiological
Sustenance Needs Base Salary

Douglas McGregor’s Theory

Douglas McGregor, a professor of industrial Administration at MIT (USA) theorized that
every person has certain basic assumptions about other people’s attitude towards work
and organisation the assumption is labeled as Theory X and Theory Y.

Theory X Assumptions

It is the traditional assumptions about the nature of people and states that-

1. Average human beings have an inherent dislike of work and will avoid it if they
can.
2. Because of this human characteristic of disliking work, most people must be
coerced, controlled, directed and threatened with punishment to get them to put
forth adequate effort toward the achievement of organizational objectives.
3. Average human beings prefer to be directed, wish to avoid responsibility, have
relatively little ambition, and want security above all.
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Theory Y Assumptions
The assumption under this are -

The expenditure of physical effort and mental effort in work is as natural as

play or rest.

The expenditure of physical effort and mental effort in work

is as natural as play or rest.
External control and threat of punishment are not the only means for producing
effort toward organizational objectives. People will exercise self direction
and self control in the service of objectives to which they are committed.
The degree of commitment to objectives is in proportion to the size of the
rewards associated with heir achievement.
Average human beings learn, under proper conditions, not only to accept
responsibility but also to seek it.

Hertzberg’s 2-factor Theory

Fredrick Hertzberg (1959) extended the work of Maslow and developed a specific
content theory of work motivation. He conducted a widely reported study of about 200
accountants and engineers from eleven industries in the Pittsburgh area. He used the
critical incident method of obtaining data for analysis. He asked them two questions:

When did you feel particularly good about your job and what turned you on?
When did you feel exceptionally bad about your job and what turned you off?
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CONTARSTING VIEW OF
SATISFACTION AND DISSATISFACTION

TRADITIONAL VIEW

Satisfaction Dissatisfaction

Hertzberg’s VIEW

Satisfaction Motivators No Satisfaction

No Dissatisfaction Hygiene Factor

Dissatisfaction

Hertzberg’s theory was based on a two-factor Hypothesis that is factors

leading to job satisfaction and factors leading to no job dissatisfaction. They
were classified in two categories:

1) Motivational factors
2) Hygiene or maintenance factors
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Vroom’s Expectancy Theory

1 2 3
Individual Individual Organizational Personal
Effort Performance Rewards Goals

Effort-performance relationship: Probability perceived by the individual that

exerting a given amount of effort will lead to performance.
Performance-reward relationship: The degree to which the individual believes
that performing at a particular level will lead to the attainment of a
desired outcome.
Rewards-personal goal relationship: The degree to which organizational reward
satisfy an individual’s personal goals or needs and the attractiveness of
those potential rewards for individual.

Organizational strategies for employee satisfaction:

Job related activities

Job related activities like Job re-design, job analysis, job descriptions, job specifications,
job evaluation, and job enlargement, Job enrichment, job rotation. Work-study, etc. are
some of the modern tools & techniques for attracting & retaining good employees in the
organisation, with the least stressful environment for all.

Training & Development

Appropriate training & development programmers should be organized for employees at

all levels from time to time, so that they are updated in their knowledge, skills and
attitudes towards their jobs & the organisation. This helps both the management & the
employees to reduce the gap between the job requirements on the one hand & the
capabilities of the employees on the other. This automatically reduces the possibilities of
stressful situations, which can be caused by apprehensions about the changes if any.
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Performance Appraisal

There should be a systematic, scientific & periodic performance appraisal system in force
for all employees. By this process, both the management & the employees know as to
how they are doing & how they should do. Extra-ordinary performers should be rewarded
extra-ordinarily. Average performers should be given counseling and the necessary
training inputs for improvement. The mediocre/ below average performers should be
given a clear idea for their improvement within a stipulated time limit. This helps to
reduce the number of stressed employees and others may be relieved to some extent, at
least from the unnecessary & avoidable stress.

Employee Counseling

Employee counseling can be classified in two parts: on-the-job counseling and off-the-
job counseling. Both these are skilled & sensitive jobs and need qualified & competent
staff to do the job of counseling successfully.

The objectives of the employee counseling can be three-fold:

• To improve the overall organizational efficiency.
• to reduce the employee stress, and
• To improve the employee efficiency.

Employee counseling, if properly done, can yield very good results not only in terms of
reducing the employee stress, but also in terms of improvement in the overall
organizational Productivity.
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Methodology of Employee Satisfaction Survey:

1) To understand need of employee satisfaction survey.

- “happy employees are productive employees”

- to know the causes of turnover
- to take feedback for certain parameters
- to know the difficulties and solutions of line engineers

2) Prepared the action plan to conduct survey

3) Prepared questionnaire

4) Distributed among the employees at different shops

- vehicle assembly
- engine assembly
- paint shop
- aluminum shop
- steel shop
- PPC

5) Discuss some questions with the line engineers

- to get true feed back

- understand the problems
- find out the solutions

6) Collected the filled questionnaire

7) Made analysis:
• Per employee
• Per parameter
• Per question
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Observations and recommendations:

% OF SATISFACTION LEVEL

5%
13% 22%

EXTREMLY SATISFIED
HIGHLY SATISFIED
SATISFIED
PARTIALY SATISFIED
32% UNSATISFIED
28%

From graph we can figure that level of satisfaction in sample is 32%. Means employees
in Bajaj Auto Ltd are satisfied. And next rage following is of highly satisfied employees
28 %.

TOP 3 PARAMETERS WITH WHICH PEOPLE ARE HIGHLY UNSATISFIED

1 TRAINING
2 COMPENSATION

3 PERFORMANCE APPRAISAL

TOP 3 PARAMETERS WITH WHICH PEOPLE ARE HIGHLY SATISFIED

1 ABOUT COMPANY
2 EMPLOYEE RELATION
3 JOB DESIGN

So management needs to pay attention towards the areas in which employees are
unsatisfied like training, compensation and performance appraisal system. If these areas
shall be improved then the level of satisfaction among the employees can be increased
and it will lead in the rate of production because “satisfied employees are productive
employees.”

Dissatisfaction should never lead toward organisation it self so it’s always better to take
care of motivation, appraisal of employees.
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Action plan:

1) During induction program we should tell employees about ethics and values of the
organization.

2) We should create the passion among them to work for the organization.

3) We should realize them that “along with plant and machinery you people are the
assets for us.”

4) There should be regular interaction between superiors and employees about

exchange of ideas and about personal problems also.

5) We should repeatedly tell them that they are working for the brand.

6) Arrange training program, stress management programs, and celebrate days in

organization.

7) Bring feeling of equality in the organization.

8) Make some changes at work place like paste inspiring posters and place some
beautiful flower plans or flower pots. Such changes make employees feel fresh
and keep working environment fresh. We can take concern of interior designers
for that matter.

9) Provide them the platform to come up with new ideas.

10) Arrange sections for them for technique queries, sharing of ideas, innovative
ideas, etc.
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