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Job Satisfaction

Behaviour in Organizations -

Project Report

By Group 5, Section D

2013


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Table of Contents

Executive Summary ................................................................................................................................. 4

List of Figures and Tables ........................................................................................................................ 5

Job Satisfaction: An Introduction ............................................................................................................ 6

Objectives, Scope and Methodology ...................................................................................................... 8

Data Collection ........................................................................................................................................ 9

Analysis: Findings and Results............................................................................................................... 10

Case Study ............................................................................................................................................. 17

Impact of Contributing Factors on Job Satisfaction .............................................................................. 18

Best Practices and Recommendations .................................................................................................. 19

Bibliography .......................................................................................................................................... 21


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EXECUTIVE SUMMARY

Job satisfaction is a measure of how content an employee is with his nature of work, role and responsibility

within an organization. It can be analysed both from the overall perspective (of how satisfied an employee

is with his job on an overall basis) and on the individual basis (by measuring employee job satisfactionamong specific parameters). Job satisfaction has been studied within broad theoretical frameworks such as

the Job characteristics model by Hackman and Oldham, the Satisfaction Cycle by Crites, Herzbergs

two factor theory etc. Employee job satisfaction is a complex area of study, the dynamics of which are

only partially clarified by empirical research.

The objective of this project was to appreciate the importance and relevance of employee job satisfaction

to organizations, identify and analyse factors contributing to employee job satisfaction; an attempt has

been made to analyse the factors across industries as well. Further, we have attempted to gain an

understanding of ideal practices that can help organizations create and maintain job satisfaction amongst

its employees.

A case study (M/s Maruti Suzuki Ltd.) illustrating the consequence of employee dissatisfaction has also

been included in our Project Report to better appreciate the importance and relevance of employee job

satisfaction to organizations today.

In line with our objectives, we have performed an analysis on information collated from employees

belonging to different companies across industries at various levels (designations) in the organization. A

Job Satisfaction Survey was used to obtain the relevant data for this study. Sampling was also done to

ensure diversity in samples across industries, positions in the organization, age, locations, etc. Since there

are variations in factors across industries (for example, job requirements, pay scale, flexibility), analysis of

employee rankings across industries was also carried out.

There are many factors which play a role in employee satisfaction such as salary, job security, skill

utilization, work place safety, fringe benefits, work load, etc. However, based on results collected in our

survey, the top three factors of Skill Utilization, Salary and Job Security were identified as key

contributing factors to Employee Job Satisfaction.

Based on our analysis and case study, some guiding principles to increase employee motivation, morale

and job satisfaction across HR sub-processes such as induction, training and development and appraisal

have been identified. Further, we have supplemented the same with practices culled from the industry.

To conclude, during the course of preparing this project report we have learnt to appreciate the importanceand relevance of employee job satisfaction to the organization. Further, we also realize that employeeperception of contributing factors to job satisfaction are relative both between persons and points of time.

Regardless, key contributing factors can be identified and the organization would need to be sensitive tothese factors if it wants to attract and retain the best employees.


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List of Figures and Tables

Figures.......................................................................................................................................................

Figure 3.1 ................................................................................................................................................ 9

Figure 4.1 .............................................................................................................................................. 10

Figure 4.2 .............................................................................................................................................. 10

Figure 4.3 .............................................................................................................................................. 11

Figure 4.4 .............................................................................................................................................. 12

Figure 4.5 .............................................................................................................................................. 12

Figure 4.6 .............................................................................................................................................. 13

Figure 4.7 .............................................................................................................................................. 13

Figure 4.8 .............................................................................................................................................. 13

Figure 4.9 .............................................................................................................................................. 14

Figure 4.10 ............................................................................................................................................ 14

Figure 4.11 ............................................................................................................................................ 16

Figure 4.12 ............................................................................................................................................ 16

Figure 5.1 .............................................................................................................................................. 17

Tables........................................................................................................................................................

Table 4 (a). ............................................................................................................................................ 11


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1.JOB SATISFACTION: AN INTRODUCTIONJob satisfaction which measures the extent to which an individual likes his job, is a universal and necessaryfacet of adult career development. There are two universally accepted ways in which job satisfaction canbe measured: a) the Bottom-line approach which is a blanket measurement of how a person feels about

his/her job and b) Aspect approach which measures an employees job satisfaction against specificparameters.

Improving people's job satisfaction levels and mitigating their prospects for dissatisfaction are important

tasks for HR managers. For example, L. Gottfredson, a professor of Psychology identified general jobsatisfaction as one of the five global career goals pursued by employees- others being persistence,

performance, economic stability, and identity. HR mangers need to understand the dynamics of job

satisfaction throughout the working life span-its development across different stages and the conditionsthat influence it.

After reviewing early empirical studies on job satisfaction, Crites (1969) connected job satisfaction with

age and discovered a developmental trend in job adjustment. The trend was called a U-shaped "satisfaction

cycle" that started at about age 20 with high satisfaction, decreased to low levels satisfaction at about 30years of age, and then gradually rose to high levels satisfaction by mid-career stage. Recent evidence

about the cycle is mixed, with supportive results in some research (e.g., Clark, Oswald, & Warr, 1996) andsome research revealing a linear relationship.

As people develop and adapt, their goals tend to match the work that occupies their time and effort; inother words, the co-relation becomes increasingly stronger. Therefore, job satisfaction is expected toimprove as people progress through career life stages.

Hackman and Oldham describe job satisfaction in the form of the "Job Characteristics" model, which hasfive main facets directly impacting job satisfaction:-

a) Task identityextent to which the employee can relate to the allocated task;b) Task significanceemployees perception of the relative importance of the employee's job when

compared to the organization;c) Skill variety - whether the employee has a variety of roles or not;d) Autonomy - the degree of control that the employee has over his job; ande) Feedback - extent to which the employee is provided with information on how well the job has

been executed

Timothy Judge et. al. (2001) has focussed on the significance of feedback, which is supposed to emanate

from all contact points for an employee, such as comments from peers, supervisors, co-workers, andcustomers. In addition, it is observed that getting feedback, hopefully positive, is just as important from

one source as it is from the others.

Importance of Job Satisfaction

From a workplace perspective, it is believed that results of job satisfaction affect overall life satisfaction,

job performance, role withdrawal, organisational citizenship behaviour, and counterproductive behaviour.

Research has shown that there exists a direct relationship between job satisfaction and the employee's

intent to quit. This implies that if employees feel dissatisfied with their jobs, they are be more likely to quit

working at that company, rather than if they felt satisfied.

Another psychological aspect impacting job satisfaction is the emotional make-up that employees bring tothe job satisfaction. (Cote &C Morgan, 2002) believe that "Emotion Regulation" plays a key role in jobsatisfaction. The theory of "Emotion Regulation" states that while the enhancement of pleasant emotions

increases job satisfaction, the reduction of pleasant emotions decreases job satisfaction. This implies thatthe more an organisation works to make its employees feel emotionally attached (enabling them to


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personally identify with or give of themselves in their work) and get involved, the higher their levels of job

satisfaction would be.

Hezberg's two-factor theory also suggests that organisations should focus on improving employee

motivation and try to make the job challenging and rewarding. HR managers must try to minimise theoccurrence of events where the employee has to suppress emotions, and instead, attempt to formulate

informal rules that call for pleasant emotions (e.g. personalised recognition). For instance, if employees areencouraged to display pleasant emotional signals and engage in open, friendly interaction, this helps to

strengthen mutual bonds that result in increased employee morale and higher job satisfaction.

Also, when employees feel personally committed to the mission and vision of the organisation, their

attitudes and behaviour become more aligned with the organization which results in positive organisationalcitizenship behaviour where employee actions at work extend beyond their formally assigned roles.

Job Dissatisfaction

Job dissatisfaction is likely to manifest in several workplace behaviours, depending upon the mind-set and

life experiences of the employee who feels disengaged with his or her work. If dissatisfied with their

workplace, some employees may behave in the following manner:

a) Exit: Employee turnover/ attritionb) Voice: Proactively taking ownership and trying to improve working conditions causing the

dissatisfactionc) Loyalty: Accept the job conditions passively/ inertly and proceed with a show of loyalty (as if

with no discomfort)

d) Neglect: Withdraw from their previously engaged state, and not trying to exert as much influenceover their environment as they were doing earlier.

These four aspects are important to realize while exploring the concept of job satisfaction. Esteemedresearchers such as Zhou and George, Farrell, Withey and Cooper, and several others have been

instrumental in providing the above mentioned classifications. As Eastern wisdom explains, by studyingwhat is not satisfaction, we may learn more about what satisfaction is.

Each one of us has at one time or another, been dissatisfied with our workplaces. The plethora ofopportunities for the dissatisfaction to manifest is infinite. However apart from organizations, someresponsibility for workplace dissatisfaction falls on the employees as well. If employees experience

feelings of discord with people or situations at work, taking ownership or active dissatisfaction are positivereactions and attempts at resolving dissatisfaction. However, if an employee responds passively by just

accepting the present state or quitting their jobs, these are negative reactions to job dissatisfaction.Moreover, the latter reactions are not examples of "Citizenship Behaviour", and the former reaction is

causes for changing the unfavourable situations at work.

Measurement of employee job satisfaction is a domain of extensive research by business analysts andorganizational psychologists. However, recent research on workplace satisfaction is drifting away from

declaring job satisfaction as the ultimate barometer to measure employee well-being. Sailing ahead beyondusing job satisfaction as an indicator of organisational excellence is fast becoming essential for HRmanagers and to manage their staff working round the clock, organizations require more than theconventional forms of motivation.

In summary, general job satisfaction remains a complex area of study, the dynamics of which are onlypartially clarified by empirical research. However, changes in choice- job matches over time seem toclarify the adaptive processes stressed by followers of developmental theories, although the specificcontribution of match to satisfaction is not supported by evidences.


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2.OBJECTIVES, SCOPE AND METHODOLOGYObjectives:The main objective of this project is to identify and analyze factors that contribute to job satisfaction and

gain an understanding of the ideal practices that can help organizations create and maintain employee jobsatisfaction. It includes the following components:

To gain an understanding of the concept of job satisfaction To delineate the relevance of job satisfaction and the importance of studying the same for

organizations

To identify factors that contribute to job satisfaction or lack thereof. To carry out a comparative analysis of factors identified across industries (based on selected

sample of respondents)

To gain an understanding of the impact of identified factors on individual behavior and their rolein shaping attitudes and perceptions at the workplace

To identify ideal practices to deal with job satisfaction and analyze the steps undertaken byorganizations (included in the sample survey) to deal with threats as a result of job dissatisfaction

To suggest innovative solutions, where possibleScope and Methodology:During the course of this research, we have attempted to investigate and analyse the various factors that

contribute to job satisfaction or dissatisfaction within an organization. The analysis has been performed on

information collated from employees belonging to different companies across industries at various levels

(designations) in the organization.

Relative importance of contributing factors to Job Satisfaction were collected from:

The perspective of employees at the Manger level

The perspective of other employeesTo achieve the objectives of this project the following tasks were undertaken:

Information pertaining to employee profiles (number of years of work experience, industry wascollected

Information regarding employee opinions on their expectations from the organization werecollected

Analysis on collated informationA Job Satisfaction Survey was used to obtain the relevant data for this study. Sampling was also done to

ensure diversity in samples across industries, positions in the organization, age, locations, etc.

Online survey forms with a mix of open-ended and close-ended questions were distributed to a sample of

150 respondents. The respondents were selected on the basis of convenience sampling.

Personalized interviews with the respondents were also conducted to clarify responses provided in the

survey. This method helped us gain a better understanding of the respondents perspective.


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3.DATA COLLECTIONThe figures shown below represent the diversity of the data collected from our Employee Job Satisfaction

Survey. The respondents approached are from a healthy mix of different industries/sectors, have differing

number of years of work experience and there is adequate representation from both genders.

Figure 3.1


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4.ANALYSIS: FINDINGS AND RESULTSAmong Employees:There are several internal and external factors that influence employee job satisfaction and hence engagement.

These factors could be economic, demographic or social.

In this study, an overall estimation of the satisfaction/dissatisfaction level among employees was determined

through the convenient sampling method. Following are the results of the survey

57% of employees said that they are only Moderately Satisfied with their job 27% of employees said that they are Completely Satisfied with their job While, 16% said they are Totally Unsatisfied with what they do

Figure 4.1

Since there are variations in factors across industries (for example, job requirements, pay scale, flexibility),

we have carried out an in-depth analysis of employee rankings across industries. For example, the work

culture and environment in an IT company is significantly different from one in a manufacturing company.

The study includes analysis of this dataset to explore the extent to which job satisfaction ratio (satisfaction vs.

dissatisfaction) varies across different sectors. For this purpose, the most prevalent work sectors such as IT,

Consulting, Manufacturing etc. were taken. The bar graph below represents the percentage division of job

satisfaction and dissatisfaction across different sectors.

Figure 4.2


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The graph shows that the respondents from manufacturing industries were the most dissatisfied with 50% of

employees working in manufacturing industries reported that they are dissatisfied with their work. While the

satisfaction level is high (approx. 93%) amongst employees related to Sales and Marketing field.

Aspects Contributing to Employee Job SatisfactionJob satisfaction is a result of employees perception of how well their job provides them with both utility and

satisfaction. Job satisfaction mostly has three important attributes. First is an emotional response to a job situation,

second is often determined by how well outcomes meet or exceed expectations and the last can be represented by

several individual related attitudes. All individuals do not derive the same degree of satisfaction though they

perform the same job in the same job environment and at the same time.

Following is distribution of various factors that employees think contribute towards creating job satisfaction or

dissatisfaction.

Figure 4.3

Although there are many factors which play a role in employee satisfaction, the top three factors identified across

sectors are Skill Utilization, Salary and Job Security.

32% of employees said that effective utilization of their skills and abilities was of utmost importance to them,

while 31% of employees rated salary as an important contributing factor to job satisfaction. Lagging behind only

marginally is the Job security factor; 16% respondents reported job security as an important factor.

The table below shows the sector wise breakup of the different factors which employees feel contribute to job

satisfaction.

Table 4 (a)

While maximum number of employees in engineering industries felt the need for effective skill utilization

(42%), 38% of the people working in the manufacturing sector reported that salary was the most important

criteria for deciding job satisfaction. Similarly, 15.5% of employees from the manufacturing sector statedthat job security is of utmost importance.

Work Sectors

Skill

utilization Salary Job security

Work place

safety Work load others Grand Total

Banking/Financial 3 3 3 1 10

Consulting 22 17 3 5 2 5 54

Engineering/Industries 19 12 5 5 1 3 45

IT 44 56 26 20 1 13 160

Manufacturing 3 5 2 3 13

others 8 4 2 1 15

Grand Total 99 97 41 34 4 22 297


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Job SecurityJob security is a key indicator of how much does an employee believe that his/her job is safe. It depends on

many factors such as economic turbulences, employee skills and the companys performance to name a

few. Based on the results of our survey, we understand that many employees across industries feel that job

security is a key contributing factor to job satisfaction and bears a direct correlation (relationship) with the

same.

Based on the survey we conducted across different sectors, the following interesting results were noted:

a) More than one third (36%) of the respondents felt that job security is a key factor that influencestheir job satisfaction. They said that they feel more satisfied when their job is more secure.

Figure 4.4

b) It was also observed that 50% of employees from Banking and Finance sector feel that jobsecurity is an important factor while 79% of employees from consulting said that they didnt treat

job security as a deciding factor of their job satisfaction.

Figure 4.5

c) Almost half of the employees felt that a minor mistake at their end can pose a serious threat totheir jobs.


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Figure 4.6

Gender Analysis

Levels of job satisfaction may vary from male to female employees when individual factors are taken intoconsideration. In the survey, 74% of female employees have responded that they are satisfied with their

jobs. Interestingly, 74% of male employees also responded that they are satisfied with their jobs. We can

therefore conclude that companies (belonging to the sample that we had approached) have become more

sensitive to the needs of both genders and have managed to maintain a reasonably satisfied workforce.

Figure 4.7 Figure 4.8

Skill UtilizationSkill utilization refers to the concern of maximizing the contributions that employees can make at the

workplace. Although there is an ever increasing focus on skill acquisition, however it is equally important

to pay attention to skill utilization as a mismatch between the two can be an evident source of job

dissatisfaction.

Out of ~150 respondents, as many as 100+ chose Skill Utilization as one of the main factors contributing

to job dissatisfaction. The high degree of attribution of job satisfaction towards utilization of skill set

therefore deserves a deeper level of analysis.

To understand the individual contribution of Skill Utilization and to capture the effect of this factor

effectively and independently, the respondents were asked a targeted question. The question that was

formulated was - Do you get enough opportunities to utilize your skill-set in the work you do?

Examination of the survey data revealed quite interesting results in terms of cross-industry analysis:


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Figure 4.9

(The numbers on the bar charts represent the % of total respondents from each industry who chose

Agree/Disagree/Doesnt matter)

a) Out of all the respondents, those from Sales and MarketingandBanking/Financialindustries, with87% and 83% respectively, reported maximum amount of agreeableness with the question, that is,

they feel that they get enough opportunities to utilize their skill set in their day-to-day work. Only

~15% of the respondents in the mentioned industries feel they are not being able to make effective

use of their skill set at workplace.

b) On the other end of the spectrum, based on the analysis, we can observe that as high as 33%employees in manufacturing industry feel that their skills are not getting utilized effectively at

work.

SalaryIt is a well-known and commonly accepted perception that a handsome compensation forms an integral

part of the satisfaction that a person derives from his/her job. As the workplace environment gets

increasingly competitive, it is quite intuitive to understand how remuneration effectively incentivizes

employees efforts and serves as an external source of motivation.

More often than not, this factor overweighs all others and this observation is corroborated by the findings

from our survey. Of all the respondents, 100 respondents reported pay as a major factor that forms a part

of their job satisfaction assessment.

As in the previous section, we captured the significance and relevance of this factor by asking specific

questions to the sample. The following insightful findings were observed:-


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Figure 4.10

(The numbers on the bar charts represent the % of total respondents for each industry who chose

Agree/Disagree/Doesnt matter)

a) Most of the respondents (50 %+) in the IT industry stated that they would definitely reconsidertheir decision to leave their company in case they received a pay hike. A simple interpretation ofthis could be that compensation is a highly significant point that contributes to employees

satisfaction/dissatisfaction. Banking/Financial and Sales & Marketing were close behind with 50%

respondents reporting similar choices.

b) However the picture is quite different in the Manufacturing industry. While only 20% of therespondents would change their decision, the remaining 80% would remain unaffected in spite of

this incentive.

c) An interesting observation can be derived from the data. In the Consulting industry, 42% of thesurveyed people reported an unwavering response to a stimulus in the form of pay hike. A simple

inference that can be drawn from this outcome is that compensation doesnt play as big a role as

other factors that contribute to job dissatisfaction among employees, thus a pay-related incentive

would not lead them to significantly alter their decision.


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Among ManagersTo capture the manner in which employee job satisfaction is perceived by the management, we developed

a short survey and floated it among people at managerial level roles (typically leading a team of 10+).

The most pertinent question that was asked to the management was What according to you is the most

important parameter for employee job satisfaction? and they were given the option to choose multiple

answers from Salary, Skill utilization, Less work load, Work place safety, Job security and Others. On

comparing this with the observations obtained from employee survey, we get the following results:

Figure 4.11

Additionally, a few other questions were addressed to understand related nuances of managers perception

of job satisfaction. The questions asked and the responses are as follows:

1. Do you think HR policies of your organization are sufficient enough to provide job satisfaction toemployees?

2. Do you think employees always have reasons for not being satisfied with their organizations?3. Do you think you can increase job satisfaction among employees if given more freedom?4. Do you think employee engagement surveys or theories are of much help while taking decisions in an

organization?

Figure 4.12

On analysing the obtained responses, at a broad level, it can be observed that managers themselves are

not satisfied with their organizations policies, or their current methods to deal with job

dissatisfaction. As high as 60% of the respondents feel that their organizations HR policies are

ineffective and the same number feel that employees are recurrently dissatisfied, thus there is not

much that they can do to address the problem even if they get more flexibility (as many as 40% of the

respondents said that).

What is interesting to note is that while there is alignment in terms of perception of contribution of salary

(73% managers and 70% employees) which means that organizations have in general become sensitized to

this factor, however there is a major mismatch when we consider Skill-Set Utilization (47% managers and

68% employees) and Job Security (53% managers and 29% employees). A direct inference that can bedrawn from this is that companies are yet to fully recognize the importance of this factor for their

73%

47% 53%70% 68%

29%

0%

50%

100%

Salary Skill Set Utilization Job Security

Comparison of employee's and management's perception of

factors that contribute to job satisfaction

Managers

Employees

27%60%

40%20%

13%

13%20%

33%

60%27% 40% 47%

0%

50%

100%

Question 1 Question 2 Question 3 Question 4

Managers' Opinion

Disagree

Doesn't Matter

Agree


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employees. Since most managers do not consider it to be a highly instrumental factors, thus there is bound

to be a natural disparity between the ideal and the actual state.

5.Case Study on Maruti Suzuki Labour UnrestIntroduction: On July 18, 2012 deadly riots broke out in the Maruti Suzukis plant in Manesar (Haryana,India). This resulted in the killing of Awanish Kumar Dev, HR Manager, injured more than 100 employees

and led to a loss of Rs. 2500 crores. Indian workforce is known throughout the world for its knowledge,

character and work ethics. So, what caused these civilized people to unleash one of the most violent

industrial agitation the country has ever seen?

Analysis: In the current global scenario, managers face many challenges in successfully running an

industry, especially a manufacturing plant. Sales are fluctuating, market competition is very high, fixed

costs and wages involved are also high. These constraints lead to widespread dissatisfaction among the

employees. The following factors were identified as the major issues causing job dissatisfaction:

Job Insecurity: At the time of this incident, Maruti Suzuki had around 1800 permanent employees and

8000 contract workers. These contract workers were employed to reduce the costs and add flexibility to theorganization. The employer had the authority to terminate them at any point of time, without prior notice.

This led to job insecurity and dissatisfaction among the employees.

Insufficient wages: The contractors were paid around Rs.7000/- and this was very less compared to what

the permanent employees were getting (Rs.17000/-)

Increased workload: To overcome the competition in the market, Maruti was functioning as a high volume

player. The management decided that only way to increase profit is by increasing unit production per day.

This resulted in increased work pressure for the employees.

Employee discrimination: In the plant, employees were discriminated based on their caste, creed and

status. One such incident was the derogatory caste remark made by a supervisor to one of the floor

workers. This acted as the catalyst for the widely publicized employee-management altercations.

Study: We can use the Exit-Voice-Loyalty-Neglect framework to understand the consequences of job

dissatisfaction at Maruti Suzuki. Due to the continuous harassment and discrimination in wage payment,

the employees (permanent and contract) were disappointed at their work. They became less tolerant, very

aggressive in voicing their opinions and even took up destructive measures to achieve their goal. This

resulted in a huge personnel injury as well as financial loss. This disaster could have been averted if the

employees and their union followed an Active-Constructive approach to voice their demands.

Figure 5.1Recommendations

Proper HR policies for workers, keeping in mind their demands which were long due, should beimplemented

Inequity due to being unrewarded should be attended to Temporary workers should be paid on par with the Permanent employees


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Discrimination at work should be strictly condemned Proper shift system should be implemented to ensure efficient workload maintenance

6. IMPACT OF CONTRIBUTING FACTORSThe survey floated by the group identified the following as major contributing factors:

Salary: The survey results showed that salary plays a vital role in determining job satisfaction of

employees. Salary is the direct reward for work performed; therefore an imbalance between salary received

and work load would have an adverse impact on the motivation of employees. A particular salary would

give the individual a level to aspire to; therefore, the commitment of an individual to accomplish tasks

increases when there is a performance-based pay. Recently, Infosys adopted the variable pay concept in

order to motivate its employees. Moreover, increase in the pay augments the potential of the employees to

work better. This increased satisfaction improves the overall performance of individual which in turn

reflects positive on the organization too. However, one must keep in mind that a high salary is not the only

determinant of job satisfaction as the subsequent factors listed below will show.

Skill Utilization: The second most factor causing job dissatisfaction is the organizations inability toidentify the potential of employees. Skill utilization includes aspects of skill development and updation as

well. Workers believe that their work should allow them to use their explicit talents. Based on personalized

interviews, we understand that for majority of the respondents, skill utilization is as important as (if not

more than) salary as a contributing factor. However, organizations generally focus on economic outcomes

such as profitability rather than utilizing training and development of employees. This in turn results in

lack of innovation and creativity needed by the company in the long run. As a result of companys lack of

focus on T&D, there may be conflict between employees personal goals and organizations objectives.

Job Security: About 14 % of the employees who responded to the survey opined that job security is

important in the context of satisfaction. This has assumed greater significance due to increased ousting and

lay off of employees due to global recession. This factor demotivates the employee to be committed to thework, yield best results and work for the long-term benefit of the organization. The organization needs to

be proactive to ensure that employees are reassured to maintain employee motivation and morale.

Work Place Safety: Employees perceived this factor as safety to their own life and they seek safety

measures from the companies against workplace accidents, injuries etc. Safety forms one of the lower

rungs of Abraham Maslows Need Hierarchy Theory. Therefore, safety is one of the key factors that

impact employee job satisfaction and lack of safety would be a major demotivating factor.

Other Fringe Benefits: Along with the above mentioned determinants, fringe benefits are also significant

in the context of job satisfaction. These include food in the cafeteria, transportation provided by the

company, Health insurance cover, recreation etc. These can be considered as supplements to employee

salary such as pension and savings plans. These act as motivators for the employees informing them that

the company cares for their well-being. The other benefit to be taken care of is flexible timings for the

individuals. About 25 % of the people recommended flexible timings as important factor to satisfaction.

Increase of Work Load: After reaching a particular stage in their careers, employees typically prioritize

work-life balance; sometimes over aspects such as Salary and Fringe Benefits. Flexible timings that enable

employees to pursue their personal interests and relationships become an important contributing factor to

job satisfaction and therefore, a key differentiator for employees while switching jobs.


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7.BEST PRACTICES AND RECOMMENDATIONSEmployee Job Satisfaction encompasses how the employee feels about the following aspects:

1) Work: roles, responsibilities and challenges2) Reward: monetary and non-monetary incentives, recognition and growth in the organization3) Lifestyle: the balance between professional and personal lives

Therefore, the factors which contribute to employee job satisfaction are aspects which the organization can

directly control. Policies and procedures are tools by which the company can affect the morale of

employees; contributing to a productive and efficient work environment. We have identified key guiding

principles (encompassing various aspects of the HR process) that organizations can keep in mind while

devising their policies and procedures to ensure job satisfaction amongst employees:

Induction: One of the major steps in the HR process; the induction and orientation programme isthe first interaction that the resource has as an employee of the organization. It is therefore crucialthat the induction and orientation cycle is designed in such a manner so that the transition for the

employee (either from an educational environment/other workplace) is as smooth as possible.

During the course of the cycle, employees should be familiarized with mission, vision and values

of the organization. The induction programme clarifies employee queries and is a crucial tool to

engender loyalty.

For example, one of the organizations included in our survey of organizations had a practice of

initiating new recruits at an off-site location with a combination of professional and other

methods: class room training sessions were conducted to set expectations and standards of

performance while outdoor games and activities were utilized to engage employees in teams and

build familiarity and trust amongst them. The result was an extremely engaged new workforce;excited to prove themselves and eager to learn.

Another initiative that could be undertaken are formalized mentorship programmes wherein new

recruits are mapped to an existing employee at the same level to ease the new recruits transition

in to the organization. A variant of the same could be for new recruits at the entry level for whom

this would probably be their first-time interaction with any professional environment. An

interesting insight based on informal interaction with survey respondents was that while their

experience with their first professional organization would always be memorable; special

initiatives undertaken by the organization to ease their transition would engender great loyalty and

higher morale.

Training and Development: It was noted that approximately 70% of the respondents that we hadsurveyed believe that skill utilization is an important contributing factor to job satisfaction. Skill

utilization would include aspects pertaining to skill development and updation as well. It is

therefore important that the organization accurately maps the right resource with the right job. In

addition, the organization must proactively initiate training programmes to enable employees to

stay constantly updated and relevant to meet the challenges that the organization faces. Such

training programmes not only meet the employees professional aspirations of reinventing the

wheel and increased contribution, it also adds to their ability to fulfil organizational goals.

For example, in one of our sample organizations, there exists a separate T&D vertical to oversee

development programmes of employees across the country. The vertical formulates and manages

the T&D budget and ensures that the programmes designed are relevant and in line withorganizational objectives and market requirements. Hence, employees undergo multiple training


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programmes during the year (which is mandatory for them to attend). These programmes are in

the form of:

a. Web Based Learning modules (which employees can access from any location) regardinglatest practices, models and frameworks that would aid them in execution

b. Other forms of T&D include Knowledge Shared Sessions (KSS) conducted by experts /industry SPOCS within the organization andc. Workshops conducted by external specialists.

Appraisal: It was noted that approximately 67% of the respondents that we had surveyed believethat salary is an important contributing factor to job satisfaction. The appraisal policy and

procedures of the firm (which evaluate a persons performance for the purpose of remuneration,

both fixed and variable) play a great role in contributing to a healthy work culture. Therefore,

organizations should focus on designing a system that is easily understandable (to the workforce),

provides specific feedback and is transparent.

Participative goal setting is a great way to ensure that employees are involved in and more

accepting of the process.

For example, in one of our sample organizations, each employee is mapped to a mentor usually

different from the person the employee works with and reports to. The goal setting and appraisal

processes involve counselling sessions with the mentor throughout the year to set S.M.A.R.T

goals and achieve them. One of the major drawbacks with this model is that since the reporting

mentor (L+1) is one with whom the employee does not usually work with; a specific and realistic

evaluation of the employees performance might be tricky. Hence, we suggest that an employee be

mapped to two mentors (one he/she closely works with) and another L+1 in the organization to

maintain both objectivity and ensure a more accurate evaluation of the employees performance.

Another practice to objectively evaluate employee performance is via the 360 degree appraisal

process. Under this, feedback regarding a particular employees performance is collected from

employees at different levels: the immediate superior, the immediate subordinate and peers at thesame level. This would not only ensure that the performance of the employee is evaluated

objectively; but also give appraisers a clear idea of how the employees interact with persons

across levels and get work done.

Positive Work Environment: On an average, Indians spend 10 hours working each day; hence it isextremely important that the environment in which one works in is productive, efficient and

conducive to both personal and professional development. For example, nearly 91% of our survey

population enjoyed/would enjoy trips organized by the organization. Opportunities that enable

employees to get to know each other better and periodic meets either on the departmental level to

celebrate employee performance are all methods by which a positive work environment can be

created. These activities can engender loyalty and increase employee morale. A positive work

environment is also dependent on how employees feel their needs are heard and concerns are

addressed. Therefore, having institutional procedures to settle disputes, hear complaints and

disciplinary transgressions are extremely important for the speedy settlement of issues that can

adversely impact the positivity of the work force. It is important to not only have the procedure

on paper; systems in the organization need to be dynamic and flexible; meeting changing needs of

the employee workforce in a speedy manner.


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8.BIBLIOGRAPHY Is Job Satisfaction the ultimate measure of employee well-being?

- Koppula, Ritu, China Staff 12.4 (Apr 2006): 30-34 General Job Satisfaction from a Developmental Perspective: Exploring Choice-Job Matches at

Two Career Stages

- Jepsen, David A; Hung-Bin Sheu. The Career Development Quarterly 52.2 (Dec2003): 162-179

2012 Employee Job Satisfaction and Engagement- A Research Report by the Society for Human Resource Management (SHRM)

Best Practice Guidelines for Creating a Productive Workplace Environment- https://www.humanrights.gov.au/

Organizational Behaviour14th Edition- Robbins, Stephen P.; Judge, Timothy A.; Vohra, Neharika
https://www.humanrights.gov.au/https://www.humanrights.gov.au/https://www.humanrights.gov.au/

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