Report of bsnl (repaired)

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Report of bsnl (repaired)

  1. 1. SUMMER TRAINING PROJECT REPORT ON “JOB SATISFACTION OF EMPLOYEES IN BSNL” IN MUZAFFARNAGAR Submitted forthe partial fulfilment towards the award of the degree In MASTER OF BUSINESS ADMINISTRATION OF MAHAMAYA TECHNICAL UNIVERSITY SUBMITTED BY- VAISHALI VERMA 1013370057 (2010-2012) UNDER THE SUPERVISION OF: Dr. KUNWAR VIKRAM SINGH DEPARTMENT OF MBA NOIDA INSTITUTE OF ENGINEERING AND TECHNOLOGY(NIET) 19, Knowledge Park-II, Institutional Area ,greater noida Gautam Budh Nagar(u.p), India-201306Page | 1
  2. 2. DECLARATIONMy self VAISHALI VERMA student of MBA here by declared that the Summer TrainingProject Report entitled “JOB SATISFACTION OF EMPLOYEES IN BSNLMUZAFFARNAGAR OFFICE” is completed and submitted under the guidance of Dr.K.V.SINGH (Faculty of H.R.) , NIET Greater Noida is my original work. The imperialfinding in this report is based on the data collected by me. I have not submitted this projectreport to Mahamaya Technical University or any other University for the purpose of complianceof any requirement of any examination or degree.DATE: VAISHALI VERMAPLACE: MBA IIIrd sem ROLL NO:1013370057Page | 2
  3. 3. ACKNOWLEDGEMENT This report will remain incomplete and will not have been possible until and unless withthe help of these contributors first of all, I express my thanks to Mr.RAJENDRA PRASADAssistant Director Telecom(H.R.)of BSNL to carry out my summer training in their esteemedorganization. I am also thankful to Dr.K.V.Singh (Faculty of H.R.) for providing me opportunity toembark on the project who acted as my project guide. I am thankful to his friendly & supportivebehavior. I am also indebted toDr.DILEEP SINGH (H.O.D. OF MBA), NIET Greater Noida my project guide for theirvaluable guidance. I am grateful to my family member who have stood by me in time of need while I wasdoing my project, finally last but not the least, I am highly indebted to the consumers and myfriends for sharing their knowledge with me.Date:- VAISHALI VERMA MBA IIIrd sem ROLL NO. 1013370057Page | 3
  4. 4. contents CHAPTER 1: INTRODUCTION • Introduction 1 • Objective of study 3 • Methodology 4 • Limitations 6 CHAPTER 2: A PROFILE OF ORGANISATION • History 7 • About the organization 13 • Products 19 • Financial Position 24 CHAPTER 3: THEORITICAL FRAMEWORK OF TOPIC • Meaning 28 • Importance 51 • Determinants 56 • Advantages 57 Research Methodology 58Page | 4
  5. 5. • Universe of study 69 • Sample size 61 • Statistical tools used 62 CHAPTER 4: ANALYSIS AND INTERPRETATION • Analysis 63-74 • Interpretation CHAPTER 5: CONCLUSIONS 75  ANNEXURE 80-81  BIBLIOGRAPHY 79Page | 5
  6. 6. Page | 6
  7. 7. CHAPTER 1 INTRODUCTION1.1 INTRODUCTIONJob Satisfaction is a set of favorable or unfavorable feeling with which employees view theirwork.“Job satisfaction is a amount of pleasure or contentment associated with job of individual”.“Job satisfaction is the amount of overall positive effect or feeling that individual have towardstheir job”.“Man Management is an Art”. To keep the workers satisfied, it is important to understand themand predict their behavior and compensate accordingly.The term employee attitude, job satisfaction & morale are in many instances usedinterchangeable; BLUM however, has made the point that they are not synonymous.Job attitude is the felling the employee has about his job, his readiness to react in one way oranother to specific factors related to job. Job satisfaction or dissatisfaction is the result ofvarious attitudes the person holds towards his job and related factors.Page | 7
  8. 8. Job satisfaction is a subjective, personal state perceived by the individual as being in his favor. Itis the result of various attitudes possessed by worker. In a narrow sense, these attitudes arerelated to the job and concerned with such specific factors as wages, supervision, workingconditions, advancement opportunities, recognition of abilities, fair redressed of grievances andother similar items.Job satisfaction is the favorableness or unfavorable with which employees view their work. Itresults when there is a fit between job requirements and the want expectation of employees. Itexpresses the extent of match between the employee’s expectation of the job and the rewardsthat the job provides. Job satisfaction may refer either to a person or a group. Job satisfactionmay be understood in the context of the employee’s extent of satisfaction in general in his totallife situation. Ask a man why he works & the chances are he will tell you. “to make money” certainly.The need to earn a living is the most powerful single reason why people work, though, as we seeother job factors are also important.The attractiveness of any one-job factor such as wages is a consequence of the extent to whichother job satisfactions or expectations are being fulfilled at a time. When a worker enjoys steadyjob, paying good wages, he is under stable more concerned about the treatment he gets from hissupervisors. The degree of independence & whether his job is interesting. But when he loses hishigh-paid job, he is more concerned about regaining steady well-paid employment.“Better abad job than no job at all”Page | 8
  9. 9. 1.2 OBJECTIVE OF THE STUDY• To find out the satisfaction level of employees.• To continually enhance the Company’s growth through satisfied employee.• To demonstrate a real concern for its employees and constantly improve the quality and value of their jobs and career advancement.• To find out the factors concerning job satisfaction of employees.• To respect the laws , rules and customs of the land and to ensure the conduct of all company activities will always be to the highest ethical standards.• To ensure customer confidence through product quality , efficient marketing and effective service.• To continually enhance the companies growth through satisfied customer.Page | 9
  10. 10. 1.3 METHODOLOGY“Research Methodology is the science of methods for conducting research work”Research methodology is a systematic way, which consists of series of action steps, necessary toeffectively carry out research and the desired sequencing to these steps. • Formulating the objective of the study • Designing the methods of data collection • Selecting the sample plan • Collecting the data • Processing and analyzing the data • Reporting the findingsResearch DesignThe research design specifies the methods and procedures for conducting a particular study.Non probabilityPage | 10
  11. 11. The non -probability respondents have been researched by selecting the person who help theinvestors in doing the trading in trading market. who act as a mediator between customer andseller. i.e broker or sub broker.A research design is the arrangement of conditions for collection and analysis of the data in amanner that aims to combine relevance to the research purpose with economy in procedure.Research design is broadly classified into three types as • Exploratory Research Design • Descriptive Research Design • Causal Research DesignFor the purpose of the present project the descriptive research design can be said to be mosteffective and most suitable, because in descriptive concerned with describing the characteristicsof particular individual, or of a group. This research lay great stress on detailed study of theexpress characteristics of the problem.The objectives of the study have restricted the choice of research design up to descriptiveresearch design. This research will help the firm to know the investors perception and the factorsaffecting their investing behaviour"Page | 11
  12. 12. 1.4 LIMITATIONS • The time period is short • Employees are rarely agree to disclose their details. • It is difficult to meet employees ,because they were mostly busy in their jobs • Sample size is very low • Employees are unaware about the various terminologies. • Employees give not answer of some of question.Page | 12
  13. 13. CHAPTER 2 A PROFILE OF ORGANIZATION2.1 HISTORY Bharat Sanchar Nigam Limited (abbreviated BSNL) is a state- owned telecommunications company headquartered in New Delhi, India. BSNL has installed Quality Telecom Network in the country & now focusing on improving it, expanding the network, introducing new telecom services with ICT applications in villages & winning customers confidence. Today, it has about 43.74 million line basic telephonePage | 13
  14. 14. capacity, 8.83 million WLL capacity, 72.60 million GSM capacity, 37,885 fixed exchanges, 68,162 GSM BTSs, 12,071 CDMA Towers, 197 Satellite Stations, 6,86,644 RKm. of OFC, 50,430 RKm. of microwave network connecting 623 districts, 7330 cities/towns & 5.8 lakhs villages . BSNL is the only service provider, making focused efforts & planned initiatives to bridge the rural-urban digital divide in ICT sector. In fact there is no telecom operator in the country to beat its reach with its wide network giving services in every nook & corner of the country & operates across India except New Delhi & Mumbai. Whether it is inaccessible areas of Siachen glacier or North-Eastern regions of the country, BSNL serves its customers with a wide bouquet of telecom services namely Wireline, CDMA mobile, GSM mobile, Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP, IN Services, FTTH, etc. BSNL is numerouno of India in all services in its license area. The company offers wide ranging & most transparent tariff schemes designed to suit every customer. BSNL has 90.09 million cellular & 5.06 million WLL customers as on 31.07.2011. 3G Facility has been given to all 2G connections of BSNL. In basic services, BSNL is miles ahead of its rivals, with 24.58 million wireline phone subscribers i.e. 71.93% share of the wireline subscriber base. BSNL has set up a world class multi-gigabit, multi-protocol convergent IP infrastructure that provides convergent services like voice, data & video through the same Backbone & Broadband Access Network. At present there are 8.09 million broadband customers.Page | 14
  15. 15. The company has vast experience in planning, installation, network integration & maintenance of switching & transmission networks & also has a world class ISO 9000 certified Telecom Training Institute.During the 2010-11, turnover of BSNL is around Rs. 29,700 Crores.BSNL is one of the largest Indian cellular service providers, with over 90 million subscribers asof July 2011, and the largest land line telephone provider in India. However, in recent years thecompanys revenue and market share plunged into heavy losses due to intense competition inIndian telecommunication sector.BSNL is Indias oldest and largest communication service provider (CSP). It had a customerbase of 90 million as of June 2008.[6] It has footprints throughout India except for themetropolitan cities of Mumbai and New Delhi, which are managed by Mahanagar TelephoneNigam(MTNL). As of June 30, 2010, BSNL had a customer base of 27.45 million wireline and72.69 million wireless subscribers.BSNL then known as the department of telecommunications had been a near monopoly duringthe socialist period of the Indian economy. During this period, BSNL was the only telecomservice provider in the country. MTNLwas present only in Mumbai and New Delhi. During thisperiod BSNL operated as a typical state-run organization, inefficient, slow, bureaucratic, andheavily unionised. As a result subscribers had to wait for as long as five years to get a telephoneconnection. The corporation tasted competition for the first time after the liberalisation of Indianeconomy in 1991. Faced with stiff competition from the private telecom service providers,BSNL has subsequently tried to increase efficiencies itself. DoT veterans, however, put the onusfor the sorry state of affairs on the Government policies, where in all state-owned servicePage | 15
  16. 16. providers were required to function as mediums for achieving egalitarian growth across allsegments of the society. The corporation (then DoT), however, failed to achieve this and Indialanguished among the most poorly connected countries in the world. BSNL was born in 2000after the corporatisation of DoT. The efficiency of the company has since improved, however,the performance level is nowhere near the private players.The corporation remains heavily unionised and is comparatively slow in decision making and itsimplementation, which largely acts at the instances of unions without bothering about outcome.Management has been reactive to the schemes of private telecom players.Though it offersservices at lowest tariffs, the private players continue to notch up better numbers in all areas,years after year. BSNL has been providing connections in both urban and rural areas. Pre-activated Mobile connections are available at many places across India. BSNL has also unveiledcost-effective broadband internet access plans (DataOne) targeted at homes and smallbusinesses. At present BSNL enjoys around 60% of market share of ISP services.Year of Broadband 20072007 was declared as "Year of Broadband" in India and BSNL announced plans for providing 5million broadband connectivity by the end of 2007. BSNL upgraded Dataone connections for aspeed of up to 2 Mbit/s without any extra cost. This 2 Mbit/s broadband service was provided byBSNL at a cost of just US$ 11.7 per month (as of 21 July 2008 and at a limit of 2.5GB monthlyPage | 16
  17. 17. limit with 0200-0800 hrs as no charge period). Further, BSNL is rolling out new broadbandservices such as triple play.BSNL planned to increase its customer base to 108 millioncustomers by 2010. With the frantic activity in the communication sector in India, the targetappears achievable.BSNL is a pioneer of rural telephony in India. BSNL has recently bagged 80% of US$ 580 m(INR 2,500 crores) Rural Telephony project of Government of India.On 20 March 2009 BSNL advertised the launch of BlackBerry services across its Telecomcircles in India. The corporation has also launched 3G services in select cities across thecountry. Presently, BSNL and MTNL are the only players to provide 3G services, as theGovernment of India has completed auction of 3G services for private players. BSNL shall get3G bandwidth at lowest bidder prices of Rs 18,500 crore, which includes Rs 10,186 crore for 3Gand Rs 8313crore for BWA.BSNL Broadband is an Internet access service from state-owned Bharat Sanchar NigamLimited (BSNL) available in India since 14 January 2005. Until 30 September 2007 it wasknown as Data One.[1]BSNL is commissioning[ a multi-gigabit, multi-protocol, IP infrastructure through NationalInternet Backbone-II (NIB-II), that will provide services through the same backbone andbroadband access network. The broadband service will be available on digital subscriberPage | 17
  18. 18. line technology (on the same wire that is used for plain old telephone service), spanning 198cities.NIB-II would have put India at par with more advanced nations. The services that would be supported include always-on broadband access to the Internet for residential and business customers, content-based services, video multicasting, video-on-demand and interactive gaming, audio and video conferencing, IP telephony, distance learning, messaging, multi- site MPLS VPNs with Quality of Service (QoS) guarantees. The subscribers would have been able to access the above services through Subscriber Service Selection System (SSSS) portalPage | 18
  19. 19. 2.2 ABOUT THE ORGANIZATIONCellOne now Bsnl mobile was a mobile phone service provided by the Indian publicenterprise BSNL. It provides pre-paid and post-paid mobile services as well as many valueadded services.CellOne has pan-India presence with presence in all the 21 telecommunication cellular circlesin India. CellOne provides all of India with roaming access, including Delhi and Mumbai, andInternational roaming access to more than 300 networks across the world.Many private Telecom Operators have entered in Indian market and acquired many customersand have given stiff competition to Cellone in recent years. The major private players are BhartiAirtel, Reliance Communications, Tata Communications, Aircel and many more.CellOne started their GPRS/EDGE service on 2005 and has coverage major cities and towns andmore places are being covered.BSNL has now introduced 3G services: BSNL has started its 3G services before the allocationof spectrum to private operators in India. Other private players are expected to roll out their 3Gservices when they are allocated the spectrum for respective circles in 2nd half of 2010. cellonewas renamed bsnl mobile on 2007.Page | 19
  20. 20. Type State-owned enterpriseIndustry TelecommunicationsFounded 19th century, incorporated 2000Headquarters New Delhi, IndiaKey people Rakesh Kumar Upadhyay (CMD)Products Fixed line and mobile telephony,Internet services, digital television, IPTVRevenue 32,045 crore (US$6.5 billion)(2009-10)Net income -1,822 crore (US$-0.37 billion)(2009–10)Total assets 132,243 crore (US$26.82 billion)(2009–10)Employees 281,635 (March 2011)Website bsnl.co.inBSNL - MTNL Merger PlansOn February 23, 2011, The Department of Telecommunications (DoT) said it wanted to revive aproposal for the merger of state-owned operators BSNL and MTNL. In its draft plan, thePage | 20
  21. 21. department while showing concern over the deteriorating performance of BSNL and MTNL saidthat BSNL and MTNL should be merged as they have complimentary operations and cancombine their strengths for synergies. DoT said the government should set up a multi-stakeholder committee to develop a restructuring plan for both firms. The committee shouldhave members from public enterprises, the DoT, department of IT and ministry of finance.However the BSNLs staff unions are opposing this merger tooth and nail realising that MTNLis in dire state and need help of its big brother , BSNL ,to alleviate itself from getting into redbalance sheet. MTNL in spite of having its operations in two big metro cities viz . New Delhi &Mumbai is realising cascading fall in revenue and profits for the past 10 successive years .Thetelecommunication operators should focus on enterprise business, services to government andthe public sector, value-added services and technologies like 3G, the departmentrecommends. Another major crisis that may hit BSNL is due to repatriation of its 1800 stronghighly skilled senior and top managers of Indian Telecom Service (ITS) officers to DOT. Thismay dent the company irrevocably and further deteriorate its functioning and both top andbottom lines.3GWhile it did not participate in the 3G auction, BSNL paid the Indian government Rs. 10,187crores for 3G spectrum in all 20 circles it operates in. State-owned MTNL provides 3G servicesin the other 2 circles - Delhi and Mumbai.[16] Both these state-owned operators were given ahead start by the government in the 3G space by allotting the required 3G spectrum, on thecondition that each will have to pay an amount which will be equivalent to the highest bid in therespective service areas as and when the 3G auctions take place.[17]Page | 21
  22. 22. 3G CoverageBSNL has the largest 3G network in India. Additionally, BSNL 3G services usually cover notonly the main town/city but also the adjoining suburbs and rural areas as well.As of now BSNL has 3G services in 826 cities across India. The following is a list of BSNL 3Genabled towns/cities. This list covers only BSNL 3G services providedthrough HSDPA/HSUPA and HSPA+ for GSM subscribers andnot EVDO for CDMA subscribers.Note: This list may not be complete as new towns/cities are added regularly.RecognitionsThe Brand Trust Report published by Trust Research Advisory ranked BSNL in the 65thposition of the list of Most Trusted brands.CompetitorsBSNL competes with 14 other mobile operators throughout India. They are Aircel, Airtel CheersMobile, Idea, Loop Mobile, MTNL, MTS,Ping Mobile, Reliance Communications, S Tel, TataDoCoMo,Tata Indicom, Uninor, Videocon, Virgin Mobile and Vodafone.Page | 22
  23. 23. VISION: • Be the leading telecom service provider in India with global presence. • Create a customer focused organization with excellence in customer care, sales and marketing. • Leverage technology to provide affordable and innovative telecom. Services/products across customer segments. MISSION:• Be the leading telecom service provider in India with global presence.• Generating value for all stakeholders - employees, shareholders, vendors & businessassociates• Maximizing return on existing assets with sustained focus on profitability• Becoming the most trusted, preferred and admired telecom brand• To explore International markets for Global presence• Creating a customer focused organization with excellence in customer care, sales&marketing• Developing a marketing and sales culture that is responsive to customer needsPage | 23
  24. 24. • Excellence in customer service-”friendly, reliable, time bound, convenient and courteousservice”• Leveraging technology to provide affordable and innovative products/ services acrosscustomer segments• Offering differentiated products/services tailored to different service segments• Providing reliable telecom services that are value for money• Providing a conducive work environment with strong focus on performance• Attracting talent and keeping them motivated• Enhancing employees skills and utilizing them effectively• Encouraging and rewarding individual and team/group performance• Establishing efficient business processes enabled by IT• Changing policies and processes to enable transparent, quick and efficient decision making• Building effective IT systems and toolsPage | 24
  25. 25. 2.3 PRODUCTSBSNL provides almost every telecom service in India. Following are the main telecom servicesprovided by BSNL:Universal Telecom Services : Fixed wireline services and landline in local loop (WLL) usingCDMA Technology called bfone and Tarang respectively. As of June 30, 2010, BSNL had75% marketshare of fixed lines.BSNL MobilePrepaid MobileCellular Mobile Telephone Services: BSNL is major provider of Cellular Mobile Telephoneservices using GSM platform under the brand name Cellone & Excel (BSNL Mobile). As ofJune 30, 2010 BSNL has 13.50% share of mobile telephony in the country.WLL-CDMA Telephone Services: BSNLs WLL (Wireless in Local Loop)service is a servicegiving both fixed line telephony & Mobile telephony.BSNL BroadbandPage | 25
  26. 26. Internet: BSNL provides Internet access services through dial-up connection (as Sancharnet through 2008) as Prepaid, (NetOne) as Postpaid and ADSL broadband (BSNL Broadband). BSNL held 55.76% of the market share with reported subscriber base of 9.19 million Internet subscribers with 7.79% of growth at the end of March 2010.Top 12 Dial-up Service providers, based on the subscriber base, It Also Provides OnlineGames via Its Games on Demand(GOD) Intelligent Network (IN): BSNL offers value-added services, such as Free Phone Service (FPH), India Telephone Card (Prepaid card), Account Card Calling (ACC), Virtual Private Network (VPN), Tele-voting, Premium Rae Service (PRM), Universal Access Number (UAN). 3G:BSNL offers the 3G or the3rd Generation services which includes facilities like video calling,mobile broadband, live TV, 3G Video portal, streaming services like online full length movies and video on demand etc. IPTV:BSNL also offers the Internet Protocol Television facility which enables watch television through internet. FTTH:Fibre To The Home facility that offers a higher bandwidth for data transfer. This idea was proposed on post-December 2009. Helpdesk: BSNLs Helpdesk (Helpdesk) provide help desk support to their customers for their services.Page | 26
  27. 27. VVoIP: BSNL, along with Sai Infosystem - an Information and Communication Technologies (ICTs) provider - has launched Voice and Video Over Internet Protocol (VVoIP). This will allow to make audio as well as video calls to any landline, mobile, or IP phone anywhere in the world, provided that the requisite video phone equipment is available at both ends. WiMax: BSNL has introduced Indias first 4th Generation High-Speed Wireless Broadband Access Technology with the minimum speed of 256kbps. The focus of this service is mainly rural customer where the wired broadband facility is not availableAdministrative unitsBSNL is divided into a number of administrative units termed as telecom circles, metro districts,project circles and specialized units, as mentioned below:Telecom Circles in India Andaman & Nicobar Telecom Circle Dobaspet Tamil Nadu Telecom Circle Jharkhand Telecom Circle Bihar Telecom Circle Andhra Pradesh Telecom Circle Assam Telecom Circle Chhattisgarh Telecom Circle Gujarat Telecom CirclePage | 27
  28. 28.  Haryana Telecom Circle Himachal Pradesh Telecom Circle Jammu & Kashmir Telecom Circle Jharkhand Telecom Circle Karnataka Telecom Circle Kerala Telecom Circle Madhya Pradesh Telecom Circle Maharashtra Telecom Circle North East-I Telecom Circle North East-II Telecom Circle Orissa Telecom Circle Punjab Telecom Circle Rajasthan Telecom Circle Uttranchal Telecom Circle Uttar Pradesh East Telecom Circle Uttar Pradesh West Telecom Circle West Bengal Telecom CircleMetro Districts Kolkata ChennaiProject CirclesPage | 28
  29. 29.  Eastern Telecom Project Circle Western Telecom Project Circle Northern Telecom Project Circle Southern Telecom Project Circle IT Project Circle, PuneMaintenance Region Eastern Telecom Region Western Telecom Region Northern Telecom Region Southern Telecom RegionProduction Units Telecom Factory, Mumbai Telecom Factory, Jabalpur Telecom Factory, Richhai Telecom Factory, Kolkata Telecom Factory,NoidaPage | 29
  30. 30. 2.4 FINANCIAL POSITIONDuring the financial year 2008-2009 (from April 1, 2008 to March 31, 2009) BSNL has added8.1 million new customers in various telephone services taking its customer base to 75.9 million.BSNLs nearest competitor Bharti Airtel is standing at a customer base of 62.3 million.However, despite impressive growth shown by BSNL in recent times, the Fixed line customerbase of BSNL is declining. In order to woo back its fixed-line customers BSNL has broughtdown long distance calling rate under OneIndia plan, however, the success of the scheme is notknown. However, BSNL faces bleak fiscal 2009-2010 as users fleePresently there is an intense competition in Indian Telecom sector and various Telcos are rollingout attractive schemes and are providing good customer services.Access Deficit Charges (ADC, a levy being paid by the private operators to BSNL for provideservice in non-lucrative areas especially rural areas) has been slashed by 20% by TRAI, w.e.f.April 1, 2009.The reduction in ADC may hit the bottomlines of BSNL.BSNL has started 3G services in 290 cities and acquired more than 6 Lakh customers. It hasplanned to roll out 3G services in 760 cities across the country in 2010-11.Broadband services : The shift in demand from voice to data has revolutionized the very natureof the network. BSNL is poised to cash on this opportunity and has planned for extensiveexpansion of the Broadband services. The Broadband customer base of 3.56 Million customer inMarch2009 is planned to be increased to 16.00 million by March 2014. Now bsnl is the underPage | 30
  31. 31. top five telecom service provider company in India. when compared to other telecom companiesthe quality of employees are not satisfactory.customer oriented,management skills are alsopoor,the influenece of unions in the organisation will also affect the future of bsnl.Page | 31
  32. 32. The BSNL is making substantial investment year to year for its network expansion andmodernization. During the current financial year BSNL has made the gross investment of Rs.28,227 crore ( US $ 6.28 billion) in Fixed Assets.Page | 32
  33. 33. Cumulative Capital Outlay BSNL has Gross Fixed Assets of over Rs. 132243 Crores (US $ 25.96 billion) as on 31.03.2009. Page | 33
  34. 34. CHAPTER 3Page | 34
  35. 35. THEORITICAL FRAMEWORK OF TOPIC3.1 MEANINGJob satisfaction describes how content an individual is with his /her job. The happier people arewithin their job, the more satisfied they are said to be. Job satisfaction is not the sameas motivation oraptitude, although it is clearly linked. Job design aims to enhance jobsatisfaction and performance, methods include job rotation, job enlargement, jobenrichment and job re-engineering. Other influences on satisfaction include the managementstyle and culture, employee involvement, empowerment and autonomous work position. Jobsatisfaction is a very important attribute which is frequently measured by organizations. Themost common way of measurement is the use of rating scales where employees report theirreactions to their jobs. Questions relate to rate of pay, work responsibilities, variety of tasks,promotional opportunities, the work itself and co-workers. Some questioners ask yes or noquestions while others ask to rate satisfaction on 1-5 scale (where 1 represents "not at allsatisfied" and 5 represents "extremely satisfied").DefinitionJob satisfaction has been defined as a pleasurable emotional state resulting from the appraisal ofone’s job; an affective reaction to one’s job; and an attitude towards one’s job. Weiss (2002) hasargued that job satisfaction is an attitude but points out that researchers should clearlyPage | 35
  36. 36. distinguish the objects of cognitive evaluation which are affect (emotion), beliefs andbehaviours. This definition suggests that we form attitudes towards our jobs by taking intoaccount our feelings, our beliefs, and our behaviors.HistoryOne of the biggest preludes to the study of job satisfaction was the Hawthorne studies. Thesestudies (1924–1933), primarily credited to Elton Mayo of the Harvard Business School, soughtto find the effects of various conditions (most notably illumination) on workers’ productivity.These studies ultimately showed that novel changes in work conditions temporarily increaseproductivity (called the Hawthorne Effect). It was later found that this increase resulted, notfrom the new conditions, but from the knowledge of being observed. This finding providedstrong evidence that people work for purposes other than pay, which paved the way forresearchers to investigate other factors in job satisfaction.Scientific management (aka Taylorism) also had a significant impact on the study of jobsatisfaction. Frederick Winslow Taylor’s 1911 book, Principles of Scientific Management,argued that there was a single best way to perform any given work task. This book contributedto a change in industrial production philosophies, causing a shift from skilled laborand piecework towards the more modern ofassembly lines and hourly wages. The initial use ofscientific management by industries greatly increased productivity because workers were forcedto work at a faster pace. However, workers became exhausted and dissatisfied, thus leavingresearchers with new questions to answer regarding job satisfaction. It should also be noted thatthe work of W.L. Bryan, Walter Dill Scott, and Hugo Munsterberg set the tone for Taylor’swork.Page | 36
  37. 37. Some argue that Maslow’s hierarchy of needs theory, a motivation theory, laid the foundationfor job satisfaction theory. This theory explains that people seek to satisfy five specific needs inlife – physiological needs, safety needs, social needs, self-esteem needs, and self-actualization.This model served as a good basis from which early researchers could develop job satisfactiontheories.Job satisfaction can also be seen within the broader context of the range of issues which affectan individuals experience of work, or their quality of working life. Job satisfaction can beunderstood in terms of its relationships with other key factors, such as general well-being, stressat work, control at work, home-work interface, and working conditions.Models of job satisfactionAffect TheoryEdwin A. Locke’s Range of Affect Theory (1976) is arguably the most famous job satisfactionmodel. The main premise of this theory is that satisfaction is determined by a discrepancybetween what one wants in a job and what one has in a job. Further, the theory states that howmuch one values a given facet of work (e.g. the degree of autonomy in a position) moderateshow satisfied/dissatisfied one becomes when expectations are/aren’t met. When a person valuesa particular facet of a job, his satisfaction is more greatly impacted both positively (whenexpectations are met) and negatively (when expectations are not met), compared to one whodoesn’t value that facet. To illustrate, if Employee A values autonomy in the workplace andEmployee B is indifferent about autonomy, then Employee A would be more satisfied in aposition that offers a high degree of autonomy and less satisfied in a position with little or noPage | 37
  38. 38. autonomy compared to Employee B. This theory also states that too much of a particular facetwill produce stronger feelings of dissatisfaction the more a worker values that facet.Dispositional TheoryAnother well-known job satisfaction theory is the Dispositional Theory Template:JacksonApril2007. It is a very general theory that suggests that people have innate dispositions that causethem to have tendencies toward a certain level of satisfaction, regardless of one’s job. Thisapproach became a notable explanation of job satisfaction in light of evidence that jobsatisfaction tends to be stable over time and across careers and jobs. Research also indicates thatidentical twins have similar levels of job satisfaction.A significant model that narrowed the scope of the Dispositional Theory was the Core Self-evaluations Model, proposed by Timothy A. Judge, Edwin A. Locke, and Cathy C. Durham in1997. Judge et al. argued that there are four Core Self-evaluations that determine one’sdisposition towards job satisfaction: self-esteem, general self-efficacy, locus of control,and neuroticism. This model states that higher levels of self-esteem (the value one places onhis/her self) and general self-efficacy (the belief in one’s own competence) lead to higher worksatisfaction. Having an internal locus of control (believing one has control over herhis own life,as opposed to outside forces having control) leads to higher job satisfaction. Finally, lowerlevels of neuroticism lead to higher job satisfaction.Two-Factor Theory (Motivator-Hygiene Theory)Frederick Herzberg’s Two factor theory (also known as Motivator Hygiene Theory) attempts toexplain satisfaction and motivation in the workplace This theory states that satisfaction anddissatisfaction are driven by different factors – motivation and hygiene factors, respectively. AnPage | 38
  39. 39. employee’s motivation to work is continually related to job satisfaction of a subordinate.Motivation can be seen as an inner force that drives individuals to attain personal andorganizational goals (Hoskinson, Porter, & Wrench, p. 133). Motivating factors are thoseaspects of the job that make people want to perform, and provide people with satisfaction, forexample achievement in work, recognition, promotion opportunities. These motivating factorsare considered to be intrinsic to the job, or the work carried out. Hygiene factors include aspectsof the working environment such as pay, company policies, supervisory practices, and otherworking conditions.While Hertzbergs model has stimulated much research, researchers have been unable to reliablyempirically prove the model, with Hackman & Oldham suggesting that Hertzbergs originalformulation of the model may have been a methodological artifact. Furthermore, the theory doesnot consider individual differences, conversely predicting all employees will react in an identicalmanner to changes in motivating/hygiene factors. Finally, the model has been criticised in that itdoes not specify how motivating/hygiene factors are to be measured.Job Characteristics ModelHackman & Oldham proposed the Job Characteristics Model, which is widely used as aframework to study how particular job characteristics impact on job outcomes, including jobsatisfaction. The model states that there are five core job characteristics (skill variety, taskidentity, task significance, autonomy, and feedback) which impact three critical psychologicalstates (experienced meaningfulness, experienced responsibility for outcomes, and knowledge ofthe actual results), in turn influencing work outcomes (job satisfaction, absenteeism, workmotivation, etc.). The five core job characteristics can be combined to form a motivatingpotential score (MPS) for a job, which can be used as an index of how likely a job is to affect anPage | 39
  40. 40. employees attitudes and behaviors----. Ameta-analysis of studies that assess the framework ofthe model provides some support for the validity of the JCM.Communication Overload and Communication UnderloadOne of the most important aspects of an individual’s work in a modern organization concernsthe management of communication demands that he or she encounters on the job (Krayer, K. J.,& Westbrook, L., p. 85). Demands can be characterized as a communication load, which refersto “the rate and complexity of communication inputs an individual must process in a particulartime frame (Faraca, Monge, & Russel, 1977).” Individuals in an organization can experiencecommunication over-load and communication under- load which can affect their level of jobsatisfaction. Communication overload can occur when “an individual receives too manymessages in a short period of time which can result in unprocessed information or when anindividual faces more complex messages that are more difficult to process (Farace, Monge, &Russel, 1997).” Due to this process, “given an individual’s style of work and motivation tocomplete a task, when more inputs exist than outputs, the individual perceives a condition ofoverload (Krayer, K. J., & Westbrook, L., p. 86) which can be positively or negatively related tojob satisfaction. In comparison, communication under load can occur when messages or inputsare sent below the individual’s ability to process them (Farace, Monge, & Russel, 1997).”According to the ideas of communication over-load and under-load, if an individual does notreceive enough input on the job or is unsuccessful in processing these inputs, the individual ismore likely to become dissatisfied, aggravated, and unhappy with their work which leads to alow level of job satisfaction.Page | 40
  41. 41. Measuring job satisfactionThere are many methods for measuring job satisfaction. By far, the most common method forcollecting data regarding job satisfaction is the Likert scale (named after Rensis Likert). Otherless common methods of for gauging job satisfaction include: Yes/No questions, True/Falsequestions, point systems, checklists, and forced choice answers. This data are sometimescollected using anEnterprise Feedback Management (EFM) system.The Job Descriptive Index (JDI), created by Smith, Kendall, & Hulin (1969), is a specificquestionnaire of job satisfaction that has been widely used. It measures one’s satisfaction in fivefacets: pay, promotions and promotion opportunities, coworkers, supervision, and the workitself. The scale is simple, participants answer either yes, no, or can’t decide (indicated by ‘?’) inresponse to whether given statements accurately describe one’s job.The Job in General Index is an overall measurement of job satisfaction. It is an improvementto the Job Descriptive Index because the JDI focuses too much on individual facets and notenough on work satisfaction in general.Other job satisfaction questionnaires include: the Minnesota Satisfaction Questionnaire (MSQ),the Job Satisfaction Survey (JSS), and the Faces Scale. The MSQ measures job satisfaction in 20facets and has a long form with 100 questions (five items from each facet) and a short form with20 questions (one item from each facet). The JSS is a 36 item questionnaire that measures ninefacets of job satisfaction. Finally, the Faces Scale of job satisfaction, one of the first scales usedwidely, measured overall job satisfaction with just one item which participants respond to bychoosing a face..Page | 41
  42. 42. Superior-Subordinate CommunicationSuperior-subordinate communication is an important influence on job satisfaction in theworkplace. The way in which subordinate’s perceive a supervisor’s behavior can positively ornegatively influence job satisfaction. Communication behavior such as facial expression, eyecontact, vocal expression, and body movement is crucial to the superior-subordinate relationship(Teven, p. 156). Nonverbal messages play a central role in interpersonal interactions withrespect to impression formation, deception, attraction, social influence, and emotionalexpression (Burgoon, Buller, & Woodall, 1996). Nonverbal immediacy from the supervisorhelps to increase interpersonal involvement with their subordinates impacting job satisfaction.The manner in which supervisors communicate their subordinates may be more important thanthe verbal content (Teven, p. 156). Individuals who dislike and think negatively about theirsupervisor are less willing to communicate or have motivation to work where as individuals wholike and think positively of their supervisor are more likely to communicate and are satisfiedwith their job and work environment. The relationship of a subordinate with their supervisor is avery important aspect in the workplace. Therefore, a supervisor who uses nonverbal immediacy,friendliness, and open communication lines is more willing to receive positive feedback andhigh job satisfaction from a subordinate where as a supervisor who is antisocial, unfriendly, andunwilling to communicate will naturally receive negative feedback and very low job satisfactionfrom their subordinates in the workplace.EmotionsMood and emotions form the affective element of job satisfaction. (Weiss and Cropanzano,1996).Moods tend to be longer lasting but often weaker states of uncertain origin, whilePage | 42
  43. 43. emotions are often more intense, short-lived and have a clear object or cause.There is some evidence in the literature that moods are related to overall jobsatisfaction. Positive and negative emotions were also found to be significantly related to overalljob satisfactionFrequency of experiencing net positive emotion will be a better predictor of overall jobsatisfaction than will intensity of positive emotion when it is experienced.Emotion work (or emotion management) refers to various types of efforts to manage emotionalstates and displays. Emotion management includes all of the conscious and unconscious effortsto increase, maintain, or decrease one or more components of an emotion. Although earlystudies of the consequences of emotional work emphasized its harmful effects on workers,studies of workers in a variety of occupations suggest that the consequences of emotional workare not uniformly negative.It was found that suppression of unpleasant emotions decreases job satisfaction and theamplification of pleasant emotions increases job satisfaction. The understanding of how emotionregulation relates to job satisfaction concerns two models: 1. Emotional dissonance. Emotional dissonance is a state of discrepancy between public displays of emotions and internal experiences of emotions, that often follows the process of emotion regulation. Emotional dissonance is associated with high emotional exhaustion, low organizational commitment, and low job satisfaction. 2. Social interaction model. Taking the social interaction perspective, workers’ emotion regulation might beget responses from others during interpersonal encounters that subsequently impact their own job satisfaction. For example: The accumulation of favorable responses to displays of pleasant emotions might positively affect jobPage | 43
  44. 44. satisfaction. performance of emotional labor that produces desired outcomes could increase job satisfaction.Relationships and practical implicationsJob Satisfaction can be an important indicator of how employees feel about their jobs and apredictor of work behaviours such as organizational citizenship,]absenteeism, and turnover.Further, job satisfaction can partially mediate the relationship of personality variables anddeviant work behaviors.One common research finding is that job satisfaction is correlated with life satisfaction.Thiscorrelation is reciprocal, meaning people who are satisfied with life tend to be satisfied withtheir job and people who are satisfied with their job tend to be satisfied with life. However,some research has found that job satisfaction is not significantly related to life satisfaction whenother variables such as nonwork satisfaction and core self-evaluations are taken into account.An important finding for organizations to note is that job satisfaction has a rathertenuous correlation to productivity on the job. This is a vital piece of information to researchersand businesses, as the idea that satisfaction and job performance are directly related to oneanother is often cited in the media and in some non-academic management literature. Arecent meta-analysis found an average uncorrected correlation between job satisfaction andproductivity to be r = 0.18; the average true correlation, corrected for research artifacts andunreliability, was r = 0.30. Further, the meta-analysis found that the relationship betweenPage | 44
  45. 45. satisfaction and performance can be moderated by job complexity, such that for high-complexityjobs the correlation between satisfaction and performance is higher (ρ = 0.52) than for jobs oflow to moderate complexity (ρ = 0.29). Job Satisfaction also have high relationship withintention to quit. It is found in many research that Job Satisfaction can lead to Intention to Stay /Quit in an organization (Kim et al., 1996). Recent research has also shown that Intention to Quitcan have effect like poor performance orientation, organizational deviance, and poororganizational citizenship behaviours. In short, the relationship of satisfaction to productivity isnot necessarily straightforward and can be influenced by a number of other work-relatedconstructs, and the notion that "a happy worker is a productive worker" should not be thefoundation of organizational decision-making.With regard to job performance, employee personality may be more important than jobsatisfaction. The link between job satisfaction and performance is thought to be a spuriousrelationship; instead, both satisfaction and performance are the result of personality.WHAT DO WORKERS REALLY WANT?A research was conducted among the employees in the US industry in 1949 in an attempt toanswer the question: what do workers want? Managers and/or supervisors were asked t try putthemselves in a workers shoe by ranking in order of importance a series of factors that workersmay want from their jobs. In addition, the workers themselves asked to rank these same factors.The managers/supervisors generally ranked good wages, job security, advancements and goodworking conditions, as the things workers want most of their jobs. On the other hand, workersPage | 45
  46. 46. felt what they wanted most was full appreciation for work done, feeling ‘in’ on things andsympathetic understanding of personal problems-all incentives that seem to be related toaffiliation and recognition motives. Only job security was among the top four concerns of bothworkers and supervisors. Supervisors as least important rated the other top three things thatworkers indicated they wanted most from their jobs. This suggests very little sensitivity bysupervisors as to what things are really most important to workers.It is thus important that managers must know the tremendous discrepancies that seemed to existin the past between what they thought workers wanted from their jobs and what workers saidthey really wanted.Katz & Van Manen (1977) identified 3 clusters of factors:The job itself: corresponding to intrinsic factors.The interaction context: corresponding to those contextual factors which has to do with co-workers, supervisors & other people in the job environment.Organizational problems: corresponding to that contextual factor which has to do with pay,working conditions & personnel policies.This means that a worker’s attitude of how satisfied dissatisfied he/ she is with his/her job is acomplex summation of a number of discrete job elements.Page | 46
  47. 47. In short, job satisfaction is a general attitude, which is the result of many specific attitudes in 3areas:• Specific job factors.• Individual characteristics• Group relationships outside the job. JOB SATISFACTION AS A DEPENDENT VARIABLEJob satisfaction as a dependent variable means what work-related variables determine jobsatisfaction? Job satisfaction is derived from and is caused by many interrelated factors, whichform basic 3 categories:1. Personal factors2. Factors inherent the jobPage | 47

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