Chapter 1

A study on the levels of job satisfaction of employees and the impact it has on employee retention
Chapter 1
Introduction
St. Josephs College of Commerce [Autonomous]
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1.1 INTRODUCTION:
1.1.1 INTRODUCTION TO HUMAN RESOURCES MANAGEMENT: Human Resource Management involves the tasks of handling the Human problems of an organization and is devoted to acquiring, developing, utilizing and efficient work force. In other words, it is a method of developing potentialities if employees so that they get maximum satisfaction out of their work and give their best efforts to the organization. Human Resource Development will involve upgrading the skills extending knowledge and competencies of Human Resources.
1.1.2 DEFINITION OF HUMAN RESOURCES MANAGEMENT: The following are the some of the definitions, which help to understand the meaning of HRM. Michael J. Juices defined "Personal Management" as the field of Management which has to do with planning, organizing, directing and controlling the functions of procuring, developing retaining and utilizing a labor force". "The Management of Human Resource is viewed as a system in which participants seek to attain both individual and group goals". Its objective is to understand what has happened and is happening and to be prepared for what will happen in the area of working relationships between the managers and the managed.
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1.1.3 IMPORTANCE OF HUMAN RESOURCES MANAGEMENT: The importance of Human Resource Management is discussed from three standpoints, Social, Professional and Individual enterprise.
SOCIAL SIGNIFICANCE: Proper Management of personal enhances their dignity by satisfying their social need, this is done by: y Maintaining a balance between the jobs available and the jobseekers, according to the qualification and needs; y Providing suitable and most productive employment, which might bring psychological satisfaction y Making maximum utilization of the resource in an effective manner and paying the employee a reasonable compensation in proportion to the contribution made by him. y Eliminating waste or improper use of Human Resource, through conservation of their normal energy and health. y By helping people make their own decisions, that are in their interests.
PROFESSIONAL SIGNIFICANCE: By providing a healthy working environment it promotes team work in the employees. This is done by; y y y Maintaining dignity of the employee as a "Human-Being". Providing maximum opportunities for personal development. Providing healthy relationship between different work groups so that work is effectively performed.
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y y
Improving the employees working skill and capacity. Correcting the errors of wrong postings and proper re-allocation of work.
SIGNIFICANCE OF INDIVIDUAL ENTERPRISE: It can help the organization in accomplishing its goals by: y y Creating right attitude among the employees through effective motivation. Utilizing willing co-operation of the employees for achieving goals of the enterprise and fulfilling their own social and other psychological needs of recognition, love, affection, belongingness, esteem and self actualization.
1.1.4 FUNCTION OF HRM: y y Determining the Human Resource needs of the organization. Educating the executives and manager of the organization regarding the various aspects of Human resource approach y Assisting and educating the top management regarding the human resources, polices, strategies and approaches. y Conduction research, collecting information, analyzing interpreting and utilizing the research data for policy making and man-power planning. y y y Recruitment, selection, placement, training replacement etc., Developing and maintaining an effective communication system. Developing and maintaining compensation plan acceptable to both management and employees. y y y Maintaining an acceptable employee welfare scheme Establishing and maintaining cordial industrial relations systems. Helping in achieving organizational goal.
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1.2 JOB SATISFACTION:

Job satisfaction is an individuals general attitude towards his or her job. Job satisfaction is in regard to ones feelings or state-of-mind regarding the nature of their work. Job satisfaction can be influenced by a variety of factors, e.g., the quality of ones relationship with their supervisors, the quality of the physical environment in which they work, degree of fulfillment in their work, etc. 1.2.1 DEFINITION & MEANING: It is defined as the pleasurable emotional state resulting from the appraisal of ones job as achieving or facilitating the achievement of ones job values. A Job requires interaction with co workers and bosses, following organizational rules and policies meetings performance standards, listing with working conditions that are often less than ideal. An employees performance and satisfaction are likely to be higher if his or her values fit will with the organization managers are more likely to appreciate evaluate positively and allocate rewards to employees who fit in and employees are more likely to be satisfied if they perceive that they do fit in. Job satisfaction varies (research suggests, the higher the prestige of the job, the greater the job satisfaction). But, many workers are satisfied in even the least prestigious jobs. They simply like what they do. Most workers like their work if they have little supervision. The least satisfied workers are those in service occupations and managers that work for others. Ethnic and religious orientation is
associated to work attitudes, and job satisfaction is related to education. There is no strong acceptance among researchers, consultants, etc. that increased job satisfaction produces improved job performance in fact, improved job satisfaction can sometimes decreases job performance. For example, you could let someone sit around all day and do nothing. That may make them more satisfied with their work in the short run, but their performance certainly didnt improve.
Job satisfaction, a workers sense of achievement and success, is generally perceived to be directly linked to productivity as well as to personal wellbeing. Job satisfaction implies doing a job one enjoys, doing it well and being suitably rewarded for ones efforts. Job satisfaction further implies enthusiasm and happiness with ones work.
Frequently, work underlies self-esteem and identity while unemployment lowers self-worth and produces anxiety. At the same time, monotonous jobs can erode a workers initiative and enthusiasm and can lead to absenteeism and unnecessary turnover. A Job satisfaction and occupational success are major factors in personal satisfaction, self-respect, self-esteem and self-development. To the worker, job satisfaction brings a pleasurable emotional state that often leads to is positive work attitude. A satisfied worker is more likely to be creative, flexible and loyal. For the organization, job satisfaction of its workers means a work force that is motivated and committed to high quality performance.
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1.2.2 MEASURING JOB SATISFACTION:
Job satisfaction can be measured by the following attributes: y y Nature of the job. Nature of work, hours of work, fellow works, changes on the jobs for promotions, overtime regulations, interest in work, physical environment etc. y Type of management- supervisory treatment, participation, reward, praises and blame leaves policy, favoritism etc.
1.2.3 DETERMINANTS OF JOB SATISFACTION: Job satisfaction is a multi-variable and indescribable concept. There are number of factors that influence job satisfaction of employees. These factors can be classified into two categories. They are: y Organizational Variables y Personal Variables Organizational Variables: The organizational determinants of job satisfaction play a very important role. The employees spend major part of their time in organization so there are number of organizational factors that determine job satisfaction of the employees. The job satisfaction in the organizations can be increased by organizing and managing the organizational factors. The organization determinants of job satisfaction are as follows:
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i) Wages: Wage can be described as the amount of reward that a worker expects from the job. Wages are an instrument of fulfilling the needs as every worker expects to get an appropriate reward. The wages are supposed to be fair, reasonable and equitable. A feeling of job satisfaction is felt by attaining fair and equitable rewards.
ii) Nature of Work: The nature of work has significant impact on the job satisfaction. Job satisfaction is highly influenced by the nature of work. Employees are satisfied with job that involves intelligence, skills, abilities, challenges and scope for greater freedom. Job dissatisfaction arises with a feeling of boredom, poor variety of tasks, frustration and failures.
iii) Working Conditions: Employees are highly motivated with good working conditions as they provide a feeling of safety, comfort and motivation. On contrary, poor working conditions brings out a fear of bad health in employees.
iv) Job Content: Factors like recognition, responsibility, advancement, achievement etc can be referred to as job content. A job that involves variety of tasks and less monotonous results delivers greater job satisfaction. A job that involves poor content produces job dissatisfaction.
v) Organizational Level: The jobs that are at higher levels are viewed as prestigious, esteemed and opportunity for self-control. The employees that are working at higher level jobs express greater job satisfaction than the ones working at lower level jobs.
vi) Opportunities for Promotion: Promotion can be reciprocated as a significant achievement in the life. It promises and delivers more pay, responsibility, authority, independence and status. So, the opportunities for promotion determine the degree of satisfaction to the employees.
vii) Work Group: There is a natural desire of human beings to interact with others and so existence of groups in organizations is a common observable fact. This characteristic results in formation of work groups at the work place. Isolated workers dislike their jobs. The work groups make use of a remarkable influence on the satisfaction of employees. The satisfaction of an individual is dependent on largely on the relationship with the group members, group dynamics, group cohesiveness and his own need for affiliation.
viii) Leadership Styles: The satisfaction level on the job can be determined by the leadership styles. Job satisfaction is greatly enhanced by democratic style of leadership. It is because democratic leaders promote friendship, respect and warmth relationships among the employees. On contrary, employees working under authoritarian and dictatorial leaders express low level of job satisfaction.
Personal Variables: The personal determinants also help a lot in maintaining the motivation and personal factors of the employees to work effectively and efficiently. Job satisfaction can be related to psychological factors and so numbers of personal factors determine the job satisfaction of the employees. They are as follows:
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i) Personality: The personality of an individual can be determined by observing his individual psychological conditions. The factors that determine the satisfaction of individuals and his psychological conditions is perception, attitudes and learning.
ii) Age: Age can be described as a noteworthy determinant of job satisfaction. It is because younger age employees possessing higher energy levels are likely to be having more job satisfaction. In older age, the aspiration levels in employees increase. They feel completely dissatisfied in a state where they are unable to find their aspiration fulfilled.
iii) Education: Education plays a significant determinant of job satisfaction as it provides an opportunity for developing ones personality. Education develops and improvises individual wisdom and evaluation process. The highly educated employees can understand the situation and asses it positively as they possess persistence, rationality and thinking power.
iv) Gender Differences: The gender and race of the employees plays important determinants of Job satisfaction. Women, the fairer sex, are more likely to be satisfied than their male counterpart even if they are employed in small jobs. The job satisfaction can also be determined by other factors like learning, skill autonomy, job characteristics, unbiased attitude of management, social status etc. It is important for managers to consider all these factors in assessing the satisfaction of the employees and increasing their level of job satisfaction.
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1.2.4 IMPORTANCE OF JOB SATIFACTION: Job satisfaction is important in its own right as a part of social welfare, and this (simple) taxonomy [of a good job] allows a start to be made on such questions as In what respects are older workers jobs better than those of younger workers? (and vice versa), Who has the good jobs? and Are good jobs being replaced by bad jobs?. In addition, measures of job quality seem to be useful predictors of future labor market behavior. Workers decisions about whether to work or not, what kind of job to accept or stay in, and how hard to work are all likely to depend in part upon the workers subjective evaluation of their work, in other words on their job satisfaction y Job satisfaction improves the image of the organization. y Individual become affectionate with the organization. y Improves the morale of the employee. y Increases overall productivity. y Reduces attrition rate y Job satisfaction improves the productivity reduces the absenteeism and labor turnover.
1.2.5 METHODS THAT CA BE USED TO INCREASE STAISFACTION:
MENTALLY CHALLENGING WORK: People prefer jobs that give them opportunities to use their skills and abilities and offer a variety of tasks, freedom, and feedback on how well theyre doing. These characteristics make work mentally challenging.
EQUITABLE REWARDS: Employees want pay systems and promotion policies that they perceive as being just, unambiguous, and in line with their expectations. When pay is seen, as fair based on job demands, individual skill level, and community pay standards, satisfaction is likely to result. Similarly, employees seek fair promotion policies and practices. Promotions provide opportunities for personal growth, more
responsibilities, and increased social status. Individuals who perceive that promotion decisions are made in a fair and just manner, therefore, are likely to experience satisfaction from their jobs.
SUPPORTIVE WORKING CONDITIONS: Employees are concerned with their work environment of both personal comfort and facilitating doing a good job. Studies demonstrate that employees prefer physical surroundings that are not dangerous or uncomfortable. In addition, most employees prefer working relatively close to home, in clean and relatively modern facilities, and with adequate tools and equipment.
SUPPORTIVE COLLEAGUES: People get more out of work than merely money or tangible achievements. For most employees, work also fills the need for social interaction. Not surprisingly, therefore, having friendly and supportive co-workers leads to increase job satisfaction. Studies generally find that employee satisfaction is increased when the immediate supervisor understands and friendly, offers praise for good performance, listens to employees opinions, and shows a personal interest in them.
1.3 RETENTION:
Employee retention refers to the ability of an organization to retain its employees. Employee retention can be represented by a simple statistic (for example, a retention rate of 80% usually indicates that an organization kept 80% of its employees in a given period). However, many consider employee retention as relating to the efforts by which employers attempt to retain employees in their workforce. In this sense, retention becomes the strategies rather than the outcome. In a Business setting, the goal of employers is usually to decrease employee turnover, thereby decreasing training costs, recruitment costs and loss of talent and organizational knowledge. By implementing lessons learned from key
organizational behavior concepts employers can improve retention rates and decrease the associated costs of high turnover. However, this isn't always the case. Employers can seek "positive turnover" whereby they aim to maintain only those employees who they consider to be high performers.
1.3.1 IMPORATANCE OF EMPLOYEE RETENTION:
Let us understand why retaining a valuable employee is essential for an organization. Hiring is not an easy process: The HR Professional shortlists few individuals from a large pool of talent, conducts preliminary interviews and eventually forwards it to the respective line managers who further grill them to judge whether they are fit for the organization or not. Recruiting the right candidate is a time consuming process.
An organization invests time and money in grooming an individual and makes him ready to work and understand the corporate culture: A new joinee is completely raw and the management really has to work hard to train him for his overall development. It is a complete wastage of time and money when an individual leaves an organization all of a sudden. The HR has to start the recruitment process all over again for the same vacancy; a mere duplication of work. Finding a right employee for an organization is a tedious job and all efforts simply go waste when the employee leaves.
When an individual resigns from his present organization, it is more likely that he would join the competitors: In such cases, employees tend to take all the strategies, policies from the current organization to the new one. Individuals take all the important data, information and statistics to their new organization and in some cases even leak the secrets of the previous organization. To avoid such cases, it is essential that the new joinee is made to sign a document which stops him from passing on any information even if he leaves the organization. Strict policy should be made which prevents the employees to join the competitors. This is an effective way to retain the employees.
The employees working for a longer period of time are more familiar with the companys policies, guidelines and thus they adjust better: They perform better than individuals who change jobs frequently. Employees who spend a considerable time in an organization know the organization in and out and thus are in a position to contribute effectively.
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Every individual needs time to adjust with others: One needs time to know his team members well, be friendly with them and eventually trust them. Organizations are always benefited when the employees are compatible with each other and discuss things among themselves to come out with something beneficial for all. When a new individual replaces an existing employee, adjustment problems crop up. Individuals find it really difficult to establish a comfort level with the other person. After striking a rapport with an existing employee, it is a challenge for the employees to adjust with someone new and most importantly trust him. It is a human tendency to compare a new joinee with the previous employees and always find faults in him.
It has been observed that individuals sticking to an organization for a longer span are more loyal towards the management and the organization: They enjoy all kinds of benefits from the organization and as a result are more attached to it. They hardly badmouth their organization and always think in favor of the management. For them the organization comes first and all other things later. It is essential for the organization to retain the valuable employees showing potential: Every organization needs hardworking and talented employees who can really come out with something creative and different. No organization can survive if all the top performers quit. It is essential for the organization to retain those employees who really work hard and are indispensable for the system.
1.3.2 IMPACT OF POOR EMPLOYEE RENTION:
Every organization invests its time and money in training a new joinee to bring him at par with the existing employees. The organization is at a
complete loss when the employees quit all of a sudden. Hiring needs to be done all over again and still there is no surety whether the new joinee would be apt for the profile or not? One wrong person hired and the output of the entire team and eventually the organization goes for a toss.
Employees who spend a considerable amount of time in any organization know it in and out and thus can perform better. They are well familiar with the company policies and adjustment is never a problem. Employees who come and go find it very difficult to settle down in a new environment and are thus always in a state of dilemma. They are not able to perform up to their potential and eventually the work and the organization suffers.
Individuals who have the habit of changing jobs frequently never get attached to any particular organization. They just treat the organization as a mere source of earning money. They are never serious about their work and fail to accomplish the tasks within the desired time frame. It hardly matters to them whether the organization is performing well or not? In cases of poor retention policies, employees are just not bothered about the reputation of their office and avoid taking initiative to do something new. The employees who are there for a long time in the organization are trustworthy and the management can rely on them anytime.
When individuals leave any organization, they are more likely to join the competitors. Sometimes they tend to take confidential data along with them to create an impression in their new organization. This way the plans of the organization get leaked even before implementation and they fail to do anything
great. Employees must not share any information with an external party in any manner what so ever.
An organization cant perform well if the employees speak negative about it. It is essential to have a group of loyalists who play an important role in furthering the brand image of the company.
Employees working with an organization for a long time never badmouth it and are somewhat emotionally attached to it. People leaving in a short span always speak ill about their previous organizations. The loyalty factor is almost zero and no one is ready to take ownership of work.
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A study on the levels of job satisfaction of employees and the impact it has on employee retention

St. Josephs College of Commerce [Autonomous]

St. Josephs College of Commerce [Autonomous]

St. Josephs College of Commerce [Autonomous]

1.2 JOB SATISFACTION:

St. Josephs College of Commerce [Autonomous]

1.2.2 MEASURING JOB SATISFACTION:

St. Josephs College of Commerce [Autonomous]

St. Josephs College of Commerce [Autonomous]

St. Josephs College of Commerce [Autonomous]

1.2.5 METHODS THAT CA BE USED TO INCREASE STAISFACTION:

1.3.1 IMPORATANCE OF EMPLOYEE RETENTION:

St. Josephs College of Commerce [Autonomous]

1.3.2 IMPACT OF POOR EMPLOYEE RENTION:

St. Josephs College of Commerce [Autonomous]

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