A conceptual analysis of job satisfaction conducted at abc trading company limited
AMALGAMATED BEAN COFFEE TRADING
COMPANY LIMITED, EXPORT UNIT, HASSAN
COFFEE TRADING COMPANY
A CONCEPTUAL ANALYSS OF JOB SATISFACTION
Human resource is considered to be the most valuable asset in any organization. It is
the sum total of inherent abilities, acquired knowledge and skills represented by the
talents and aptitudes of the employed persons who comprise executives, superiors and the
employees. Human resource should be utilized to the maximum possible extent, to
achieve individual and organizational goals. Employee’s performance plays an important
role in attaining goals. However employee performance is influenced by motivation and
Employee satisfaction or job satisfaction plays an important role in deciding the
organization’s strength, which forms the real strengths for any organization. Labor turn
over is an important term in this context, which means the rate at which the employees
leave the organization. A high rate of labor turnover means number of dissatisfied
employees. Therefore, retaining the employees in the organization, study of job
satisfaction levels among the employees becomes important.
Employee retention and employee satisfaction have always been important issues for
managers. High levels of absenteeism and turnover can affect the organization. Satisfied
employees tend to be more productive, creative and committed to their employers.
Organizations that can create work environments that attract, motivate and retain
competent individuals will be better positioned to succeed in a competitive environment
that demands quality and cost-efficiency.
An accepted method to know the job satisfaction level is to conduct a survey among
the employees, finding about their perception towards their job.
TITAL OF THE STUDY
A critical study on “JOB SATISFACTION” of ABC private limited , Hassan
OBJECTIVES OF THE STUDY
To study the job satisfaction among the employees working in ABC private
To improve the current job satisfaction methodology used in the company.
To the current problems of the employees facing due to lack of job satisfaction.
To know the job satisfaction levels among the employees.
SCOPE OF THE STUDY
The scope of the study is extended only to the employees working in the ABC pvt ltd
Hassan. It does not cover employees working in other divisions of ABC in other cities.
To fulfill the objectives of this research, the study is undertaken to analyze the job
satisfaction among the employees followed at ABC pvt ltd Hassan.
Primary as well as secondary data was used to collect information on the area f the study
a. primary data- questionnaires was personally administered to the employees of
b. Secondary data- internal data has been collected from the manuals and records of
External data was collected through the company website, books on human resource
management and journals.
Sample of 50 employees was taken as sample respondents for the purpose of the study.
Tools and techniques for collection of data
Primary data was collected though the means of questionnaire and the questionnaire was
administered to the respondents of the company.
LIMITATIONS OF THE STUDY
• The study is conducted only in Hassan.
• Due to the limitation of the time the research could not be made more
• Due to confidentiality of some information accurate response was not
revealed by some of the respondents.
• Some of the replies of the respondents may be biased.
Respondents had marked the answers in questionnaires which may be socially
incorrect irrespective of their actual feelings.
Mr. B.G Siddartha is the owner and also the promoter and is the chairmen
and managing director of ABCTCL. He with is own capital started ABCTCL in
1991 and is successfully managing it today with a wide network of people
It is a private ltd. Company and dose not issue shares to the general public for
Private placement of shares is to be done and 20% of the shares of ABCTCL
were issued to a MNC by Mr. Siddartha.
PROCUREMENT AND CURING WORKS
The curing activity of coffee takes place in Chikmangalur and Hassan, each
with a storage capacity of 70,000 tons.
All the domestic dealings of India are managed by offices of ABCTCL which
are located in places like Delhi, Chennai, Kolkatta and also in for off places such
as Shimla and Assam.
As per the chart the works fields of ABCTCL are divided into seven major
divisions they are.
Café coffee day
Fresh & grounds
CAFÉ COFFEE DAY
One of the most common
names here today is one of the
greatest achievements of
As known to everyone
café coffee day are the café
shops managed by ABCTCL
and present in large number in
all parts of India today. The
brains behind success of café coffee day is one person: Mr. Naresh Malhothra, the
president of café coffee day division. Its because of is dream to make people all
over the world get wide range of coffee product at affordable prices, we have more
than 600 café coffee day outlets in India today.
They are also trying to cover the whole world market by establishing more
and more retail coffee day outlets all over the world.
The first step in world café market was taken in the recent years by
establishing the first café coffee day outlet in Vienna, Austria and Pakistan
The whole café coffee day management is done by corporate office of
ABCTCL in Bengaluru through a wide network followed by
Café coffee day outlet Mangers
All these has proven café coffee day to be the most precious jewel of
Since it is a export oriented unit, it exports its coffee beans to many parts of
the word. ABCTCL exports has been one of the largest coffee export shipping
close to half million bags in volume.
The clients of ABCTCL include world’s biggest and most discerning
roasters MNCs, trading companies and retail chains. But the major market of
export of ABCTCL is Europe.
About 80% of the whole export of ABCTCL is done to most of the
European countries and in these European countries some of the biggest customers
of ABCTCL are situated.
The rest of the 20% of its exports is carried with USA, Japan and Middle
East. These countries import coffee beans from ABCTCL and further process
these beans and produce many varieties of coffee for their market.
Even under domestic dealings some of the biggest MNCs like NESTLE are
the customers of ABCTCL who create many coffee product and is present in
Indian market as well as abroad.
Some of the customer to whom ABCTCL exports its coffee are:
Sadnalji trading company Ltd.- SPAIN
Louis dreyfus trading Ltd.- UK
Alsroor Jabbar Ltd. – Kuwait
Bernharad Rothfos GMBH & company – Germany
Olan international Ltd. – SINGAPORE
The above are some of the customers of ABCTCL abroad and have many
other customers all over the world.
As far as imports are concerned, ABCTCL imports special variety of
Arabica coffee from KENYA which is considered as one of the best in the coffee
market. These coffee beans are longer in appearance and have a rich taste. Imports
of ABCTCL are very few and above mentioned type are imported just to provide
variety to consumers in India.
Beverages in the general sense mean any
hot refreshment drinks. So under beverages
department of ABCTCL, it deals with coffee
machines which prepare these beverages such as
black coffee, regular filter coffee, instant coffee
These machines are automated and require
some raw materials to be fed in it before the
preparation of coffee. After that just by the press
of a button people can get different types of coffee
ready to drink.
So these department is concerned with selling of such coffee machines
which are used in most of the offices and other work places with ready hot coffees
for people who work their as and when they require it.
These coffee machines create a huge market for ABCTCL which help in
spreading coffee products of ABCTCL all over India. So separate department for
selling and maintenance of these coffee machines is managed again with same
chain of president and manager who concentrate only in this division.
FRESH & GROUND
These are retail outlets of coffee day situated in all parts of India mostly in
major cities all over India. These outlets provide customer with wide variety of
coffee beans and provides both instant coffee and filter coffee options to the
customer and customers are given choice to select their favorite variety of coffee
beans which are later blended and coffee powder is provided to customer as per
their required quantity and according to their requirement.
Usually all the fresh and ground outlets are mange by the corporate office of
COFFEE DAY TAKE AWAY
The Coffee Day Take Away initiative is a virtual
revolution in dispensing coffee. For the first time, it makes
freshness a part of the vending machine proposition. Only
the freshest ingredients are used and strict control is
maintained to ensure that every cup delivers the
satisfaction of a freshly brewed cup of coffee.
Being a part of beverages and fresh and ground division, Coffee Day take
away is a brand that has no substitute. Renowned for its aroma & flavor, Coffee
Day has grown to be India's largest selling brand of fresh filter coffee powder.
Amalgamated Bean Coffee Trading Company Ltd., the name behind Coffee Day
Take Away, is one of the largest producers & exporters of coffee in the country.
With over 12000 acres of coffee plantations and state-of-the-art curing capacity of
70,000 tons, it has the distinction of exporting more than 13% of India's coffee.
The company has been responsible for transforming coffee retailing. With over
400 Coffee Day Fresh 'n' Ground outlets, it caters to over 2,00,000 customers
every week. Taking the filter coffee experience forward. Expanding its beverage
portfolio, the company has also launched superior Assam teas under the Tea Day
Through its Coffee Day Take Away vending machine initiative, the
company will deliver what the consumer has been missing till now - authentic
filter coffee and fine tea made available conveniently
This is one of the important division or department of ABCTCL. This
packaging department includes the process of converting coffee beans into readily
consumable coffee products and then packing them in to attractive packages with
This packaging takes place in a huge plant in Hassan where the head office
of ABCTCL is situated. These packed products of both instant and filter coffee are
then supplied to its retailer and its own fresh and ground outlets.
But the marketing of these packed products is done by marketing manager
from corporate office of ABCTCL, Bengaluru. The head office in Hassan
produces only that much quantity which is ordered by the Bangalore office as per
However the packed products are only used and marketed in domestic
market and exporting of these packed products doesn’t take place.
Coffee Day Xpress is a unique concept of convenient cafe, an idea that
feeds a world that's continuously in transit.
The Coffee Day Xpress kiosk is a sanctuary where people can pause for
refreshment before getting on with life. Retail custom-made for the 21st century.
Catering to a world that needs coffee on the go! At high-traffic locations. With hot
and cold beverages and a variety of ready-to-eat snacks.
Amalgamated Bean Coffee Trading Company Limited – or ABC, as it is
better known – is a fully integrated coffee company with a rich heritage that
stretches over a century. Its endeavors find expression from coffee plantations to
innovative retail concepts and even exports.
To ensure that it remains a dominant force in the coffee sector, ABC has
invested extensively in Research & Development to ensure quality coffee blends
This division of ABCTCL managers the small coffee or café booths which
we see these days in all the public places like shopping malls, bus station, railway
station and other places where the general public roam in large numbers.
The advantage of these express division is people can buy different types of
hot and cold coffee in these public places when they hang out their. Apart from
that this division manages the food products and other coffee product which are
available in all the café coffee outlets these days.
Usually the other food products which are available in café coffee day
outlets are outsourced by these divisions to various other retailers who prepare
these food products. The rest of the food products are prepared in café coffee day
outlets by the help of well and experienced people.
Obviously the product is coffee beans and coffee can be mainly divided
into 2 types
Arabica named for the Arabs, is the better and more expensive of the two.
These trees grow in semitropical climates near the equator, both in the western and
eastern hemispheres, at high altitudes. Because ripe Arabica cherries (unroasted
beans) fall to the ground and spoil, they must be carefully monitored and picked at
intervals, which increases production costs.
Robusta trees which are grown exclusively in the eastern hemisphere also
thrive in equatorial climates, but at low altitudes. Their cherries require less care
since they remain on the tree after they ripen. Robusta beans have twice the
caffeine of Arabica, but less flavor. Some supermarkets carry Arabica, but most of
their brands are Robusta. Coffee shops generally use Arabica beans, but because
their brews are so strong,
To describe the taste of Arabica is difficult without using trite words like
smooth and mellow. It has a round taste that is both rich and delicate, with good
acidity. This does not refer to an actual degree of acidity, but to the sharp and
pleasing taste that is neither sour nor sweet.
In fairness, although most Robusta coffee is of a lower grade and inferior to
Arabica, there is a premium crop that is the top of the line for Robusta beans.
Premium Robusta is primarily used in specialty espresso blends, and is never
found in canned coffee. Though it only constitutes 5-15% of the blend, it is used
because these beans add body to the taste and make a nice creama in the shot of
espresso. This additional body distinguishes the blend in a cappuccino or latte.
Premium Robusta should only be used for espresso and not other brewing
If the coffee is Colombian, it will probably be Arabica on the side or back
of the package, since this country produces nothing else. Guatemala, El Salvador,
Tanzania and Kenya also produce all Arabica beans.
Only these 2 varieties are grown in India because of the soil. But there are
various subdivisions in these two types of coffee beans depending on its size color
Again these two types that is Arabica and Robusta are brought in to ABCTCL
by two ways
It means bringing the cleaned beans or already separated and dried coffee
beans in to ABCTCL.
Usually this parchment is done by the estate owners through pulper
machines which separate the beans from the cherry which are ripen and the beans
are cleanly separated from cherry and all the remains are eliminated as waste and
then these beans are dried and then transported to ABCTCL where the further
Processing of the beans is under taken.
As the name indicates, it is the raw cherry which is grown in these 2 types
They are directly purchased and brought to ABCTCL in a ripe cherry form
and even removing the bean from the cherry is done by ABCTCL, head office,
Hassan & Chikmagalur after bringing to ABCTCL. Here the work will be more to
this curing works as it is brought in raw form
Arabica is grown from December to March and these four months are
considered the best season for growing Arabic and plucking. Most of Arabica
beans are exported to USA (New York)
Robusta season is from Feb/Mar to May every year and considered best for
these beans (coffee). Most of Robusta coffee is exported to U.K (London)
Arabica parchment is plucked in 3 rounds
I Round: - Plucking of coffee from plants when they are fully ripe and ready to
II Round: - Plucking of half ripe coffee beans
III Round: - Plucking of cherry
Arabica coffee is strong and doesn’t fall down form the plant even due to heavy
rains. It has to be plucked.
Arabica coffee is more costly than Robusta because of its strong flavors and
Robusta coffee is lighter in nature and will easily fall off from the plant due
to rains. So more care has to be taken with this breed.
Today, this entire flavors and experience is recaptured by the special
process of "monsooning".
The Monsooning process reforms the color and the physical characteristics
Even Monsooned coffee has different types such as
Monsooned Arabica AA
Monsooned Arabica Basanaly
Monsooned Arabica Triage
Monsooned Robusta AA
Monsooned Robusta Triage
As every other industry, even the coffee industry has lots of competitors.
But the competitors of ABCTCL are divided into 2 main groups as follows
Competitors in procurement or curing
Competitors in domestic market
The competitors in procurement or curing work of coffee beans are many in
the field. These competitors also indulge in import/export of coffee beans as
Some of the competitors in this field for ABCTCL are
Allan coffee curing works
General commodities ltd.
Nestle company ltd.
Ned commodities ltd.
In domestic market there are lots of retailers who compete with ABCTCL
in the domestic market. Even though only 10% of ABCTCL’s products are
marketed in domestic market, there are lots of competitors even to compete for
this 10% of coffee products of ABCTCL.
Some of these competitors are
Hindustan Unilever ltd. (HUL)
As the company is very vast in its size only a part of company is covered,
that is the head office of ABCTCL in Hassan.
ABCTCL HEAD OFFICE - HASSAN
As mentioned earlier, the head office of ABCTCL situated in Belur road in
Hassan has its main work in procurement of coffee beans and is a export oriented
unit which is controlled by the corporate office of Bangalore to certain extinct.
75% of the coffee dealings of ABCTCL are its exports and rest 25% of it is
in domestic dealings. So the head office at HSN plays very important role in
success of ABCTCL.
Even many domestic dealings of ABCTCL are carried on by head office in
Hassan such as supply to all its fresh and ground outlets in and around Hassan
district. But this is done only by orders from corporate office Bangalore.
So here the organization hierarchy of ABCTCL Hassan is shown in the next
chart from people’s authority shown from top to bottom.
CHART SHOWING ORGANISATION HIERARCHY OF ABCTCL
HEADS OFFICE OF HASSAN
As shown in the chart the organization hierarchy is as follows:
At the top of the company there is Mr. B.G Siddarth who is the sole
chairmen and managing director of the company.
Mr. Siddarth manages the whole ABCTCL through a bunch of presidents in
all departments and divisions of the company. Here the president of ABCTCL
head office is Mr. Rajeev Guptha who is in charge of all the activities of Hassan
head office. He controls it form corporate office of Bangalore and the senior
general managers in Hassan head office have to act as per the instruction of Mr.
Under Mr. Rajeev Guptha, Hassan head office is totally manage by two
senior general managers
1. MR. H.A VINAY – Senior General Manager of
He manages interaction with suppliers or estate owners, all the financial
transaction of ABCTCL by terms of payments and other monetary issues by final
checking and passing of invoices, maintenance of proper books of accounts from
time to time and along with it manages the procurement process of coffee.
Under Mr. H.A Vinay there are 2 assistant general managers:
Assistant General Manager Procurement: He is in charge of the whole
procurement process of coffee after it gets into ABCTCL.
He manages executive, superiors and sub-staff who are 10 in number.
These people are in charge of agent management of ABCTCL, Hassan and
managing the contractual labour required for procurement process.
Assistant General Manager Accounts: he is in charge of managing the books of
account and preparation of invoices and payment cheques which are to be sending
to estate owners who sell their coffee to ABCTCL and also payment of
commission to the agent for convincing estate owners to sell their coffee beans to
He also manages a sub-staff who are 4 in number and perform all the
accounting work and minor transaction required for accounting.
2. MR. NANJUDA – senior general manager of
He manages the production process of coffee, management of garblers
(manual labour) and final dispatch of coffee as per the orders.
He manages 1 Assistant General Manager of Production who supervises the
production process which carries on through huge hulling machines, color sorting
machines and roasting machines.
This assistant general manager again manages executives and staff who are
15 in number and looks after each and every process and manages contractual
labour and garblers who indulge in manual separations of coffee beans and final
bagging of coffee and loading it into trucks.
However apart from the finance and production department, there is no
marketing department in Hassan head office of ABCTCL because it is export
oriented unit and all the marketing activities are carried out by marketing
managers from Bengaluru in corporate office of ABCTCL.
Even human resource managers of ABCTCL are from Bengaluru office and
all the human welfare activities of the employees are carried out from their though
regular visits by HR managers to its various branches.
Here in this chapter the functional areas of ABCTCL, Hassan head office
has been covered and matters relating to people in the organization, systems and
procedure adopted in the functioning of the organization, polices followed for the
maintenance of the organization and also the production procedure which followed
in the organization is mentioned in detail.
People are considered one of the most important assets of ABCTCL. The
whole company is successful through a huge chain of people who mange the
functioning of this company.
Even in Hassan head office of ABCTCL people management is done to
certain extent. There are about 55 people from top to bottom (permanent and
temporary staff) which exclude the contractual labour who may differ from 130 to
150 or 200 depending on the work in on season and off season of coffee growth.
Pay for the people may vary from Rs.5000 to Rs.85000 (excluding the
contractual labour) depending on the person’s position in the organization.
Labourers are paid depending on their work rate which may also differ
seasonally. The recruitment of people until the assistant general manager post and
also the pay to them is done directly by the president and other head authorities
directly from Bangalore office of ABCTCL and the recruitment and pay for the
general staff, sub-staff and the labourers is managed by the senior general
managers and assistant general managers in Hassan.
Usually experienced people with high skills are selected and qualification
must be Charted Accountant (CA) and Master of Business Administration (MBA)
of the people who get selected for such high post and HR management is done by
HR managers from Bengaluru through out the company.
Apart from the people with in the organization, ABCTCL in Hassan also
manages a chain of agent related to it. These agents are situated in most part of
Hassan, Chikmagalur and Coorg districts.
These agents have the job to convince the estate owners to sell their coffee
to ABCTCL and should keep them inform about the advantages and the prevailing
prices of coffee as per the bag rate in ABCTCL. There are about 60 to 65 agents of
ABCTCL head office, Hassan who are also provided with small warehouses of
about 100 baggage capacities and are paid commission for acting as an attractive
link between the estate owners and ABCTCL. And these entire agents are
personally managed by Hassan head office of ABCTCL.
There are many policies which are followed such as
Company policy to bare the transportation expenses of estate owners.
Policy of good customer relationship maintenance.
Maintaining good relationship with the agents of ABCTCL.
Controlling agents in such manner so that they should loyally do their agent
work only to ABCTCL & not indulge with any of its competitors.
Providing fringe benefits to all its employees and customers etc.
Here is the analysis about the Strengths, Weaknesses, Opportunities and
Threats of ABCTCL.
The biggest strength of ABCTCL is that it is the only company in coffee
industry with a complete chain of coffee operations.
ABCTCL carries its operations right from the growing of coffee to
the consumption of coffee by the final consumer.
It grows coffee in its own land, procures it, carries productions,
exports it, produces ready coffee products and has also conquered the
All its competitors are indulged only in few activities but ABCTCL
manages a complete chain of its operation.
Among ABC's biggest strengths are the two curing works, strategically
located in Chikmagalur and Hassan with a combined installed capacity of 1
Having our own curing works aids in enabling complete control over grading
standards and flexibility. Thus ensuring quality and efficiency.
A highly disciplined and dedicated network of over 42 agents who operate
throughout the major coffee growing areas of India form the back bone for our
coffee procurement chain.
Our vertically integrated infrastructure ensures that the coffees never need
to leave the able hands of ABC until final dispatch/shipment.
Another Strength may be its size. As it is one of the biggest coffee curing
companies, it has even advantage in price stabilization (volatility).
There are no major weaknesses but one of its weakness is the higher quality
coffees in the world market such as Brazilian coffee, Kenyan coffee etc.. which
are of the best quality and rate in the world market of coffee.
The overseas market demand for coffee is one of the biggest opportunities
The demand by European countries and many other countries of the world
for Indian coffee has created and also creates huge market in future.
Globalization and liberalization has played a very important role in these
overseas dealings of ABCTCL.
New entrants in Indian market for coffee is one of the biggest threat for
ABCTCL for example :- STAR BUCKS, a company from USA is trying very hard
to enter the Indian market and trying to take over the café coffee day outlets of
ABCTCL. It is a very big company and has high quality standards.
However it has not yet been a possibility because of its high costs.
Other than that here is a threat of changing quality of coffee and its rates
due to natural reasons.
Change in money value in foreign exchange is also a threat to ABCTCL.
ABCTCL is right now a 700 + crore company and has a very big share in
export market of Indian coffee.
However their vision is to be a 1000 crore worth company until 2010, and
also to conquer the whole export market of India.
Its mission is to avoid the new entrants in café coffee day market, so it is
very fastly conquering the whole Indian café outlet market by very fastly
developing the outlets and today it has nearly 600 café coffee day outlets all over
India and 200 are present in Bangalore.
Indian coffee is exported to all parts of the world. But except in India it is
no where called as Indian coffee and doesn’t have a name and popularity.
So the goal of ABCTCL is to make the world recognize Indian coffee as
Indian coffee and not anything else.
So café coffee day outlets are being planned to open in all parts of the
world such as one present in VIENNA, Austria and make the Indian coffee
, Columbia and Kenya. Even though there is competition from so many
courtiers, this company tries very hard & is also successful to grab a huge share in
the world market.
The success of this organization in its exports is known by the various awards
received by ABCTCL such as:-
1999-2000 Top exporter of green coffee
2000 Top exporter of coffee to the region: U.S.A
2000-2001 Top Exporter Of Coffee To The Region:
Rather than its success in exports, it is also successful in all its divisions
management such as café coffee day division, beverages division, fresh & rounds
Its success in domestic market can be seen in our daily life with hundreds
of café outlets and coffee vending machines, resulting in millions of Indian
consumers consuming coffee products of ABCTCL everyday.
This company has so for captured a major part of Indian market and yet is
trying very hard to conquer the whole market within few years from now.
And by personally experiencing the functioning of ABCTCL and also by
seeing its business strategies, I can say no wonders it will definitely achieve its
goals in the mere future.
Even the procurement and production process of coffee takes place very
accurately in the Hassan organization of ABCTCL and standards for each and
every step is maintained and followed.
CHAPTER - 3
JOB SATISFACTION – A CONCEPTUAL ANALYSIS –
INTRODUCTION TO HUMAN RESOURCE MANAGEMENT
Human resource management is a process of bringing people and organization
together so that the goals of each are met. Human resource management seeks to improve
the productive contributions of people to the organization in ways that are ethically and
socially responsible. It may be defined as the "art of procuring, developing and
maintaining competent workforce to achieve the goals of an organization in an
effective and efficient manner”.
Human resource management is concerned with the people dimension in
management. Since every organization is made up of people, acquiring their services,
developing their skills, motivating them to high performance, and ensuring that they
continue to maintain their commitment to the organization are essential to achieving
organizational objectives. Getting and keeping good people is critical to the organization,
whether profit or nonprofit, public or nonpublic.
Human resource plays a crucial role in the development process of modern
economics. It is often felt that, though the exploitation of natural resources, availability of
physical and financial resources and international aid play prominent roles in the growth
of modern economies, none of these factors is more significant than efficient and
committed manpower. It is in fact said that all development comes from the human mind.
People in any organization manifest themselves, not only through individual sections but
also through group interactions. When individuals come to work place, they come with
not only technical skills, knowledge etc., but also with their personal feelings,
perceptions, desires, motives attitudes, values etc" Therefore, employee management in
an organization does mean management of not only technical skills but also other factors
of the human resource.
People are the most valuable asset is a cliche, which no member of any senior
management team would disagree with. Yet, the reality for many organizations is
that their people remain under valued, under trained and under utilized.
FUNCTIONAL VIEW OF HUMAN RESOURCE MANAGEMENT
The set of human resources are offered to promote thought, stimulate discussion
diagnose the organizational environment and develop a sound human resource
management strategy for your organization. The distinguishable functions of human
resource management provide to secure the achievement of the objective. :
HR Function 1
Human resource planning
To ensure that people are available to provide the continued smooth development
of an organization, organizations engage in human resource planning. The purpose of
human resource planning is to assess where the organization is, where it is going, and
what implications these assessments have on future supplies of and demands for human
resources. Attempts must then be made to match supplies and demands, making them
compatible with the achievements of the organization's future needs.
The penalties for not being correctly staffed are costly, under staffing loses the
business economies of scale and specialization, orders, customers and profits.
Overstaffing is wasteful and expensive, if sustained, and it is costly to eliminate because
of modern legislation in respect of redundancy payments, consultation, minimum periods
of notice, etc.
Very importantly, overstaffing reduces the competitive efficiency of the business.
Staffing level planning requires that an assessment of present and future needs of the
organization be compared with present resources and future presented resources.
Appropriate steps then be planned to bring demand and supply into balance. That in turn,
will involve the further planning of such recruitment, training, retaining, labour
reductions or changes in work force utilization as will bring supply and demand into
HR Function 2
Recruitment and selection of employees
Recruitment of staff should be preceded by: An analysis of the job to be,done written
into a job description so that the selectors know what physical and mental Characteristics
applicants must possess, what qualities and attitudes are desirable and what
characteristics are as decided disadvantage;
• In the case of replacement staff a critical questioning of the need to recruit at
all (replacement should rarely be an automatic process).
• Effectively, selection is buying an employee (the price being the wage or
salary multiplied by probable years of service) hence bad buys can be expen-
sive, for that reason some firms (and some firms for particular jobs) use exter-
nal expert consultants for recruitment and selection. Equally some small orga-
nizations exist to 'head hunt', i.e to attract staff with high reputations from ex-
isting employers to the recruiting employer. However, the 'cost' of poor selec-
tion is such that, even for the mundane day-to-day jobs, those who recruit and
select should be well trained to judge the suitability of applicants.
HR Function 3
To retain good staff and to encourage them to give of their best while at work
requires attention to the financial and psychological and even psychological rewards
offered by the organization as a continuous exercise. Basic financial rewards and
conditions of service (e.g. working hours per week) are determined externally (by
national bargaining or government minimum wage legislation) in many occupations but
as much as 50 per cent of the gross pay of manual workers is often the result of local
negotiations and details (e.g. which particular hours shall be worked) of conditions of
service are often more important than the basics. Hence there is scope for financial and
other motivations to be used at local levels.
As staffing needs will vary with the productivity of the workforce (and the industrial
peace achieved) so good personnel policies are desirable. The latter can depend upon
others (like environment, welfare, employee benefits, etc.) but unless the wage packet is
accepted as 'fair' and just there will be no motivation.
Hence while the technicalities of payment and other systems may be the concern for
others, the outcome of them is a matter of great to human resource management.
Increasingly the influence of behavioral science discoveries are becoming important
not merely because of the widely- acknowledged limitations of money as a motivator, but
because of the changing mix and nature of tasks (e.g. more service and professional jobs
and far fewer unskilled and repetitive jobs).
The former demand better educated, mobile and multi-skilled employees much more
likely to be influenced by things like job satisfaction, involvement, participation, etc. than
the economically dependent employees of yesteryear.
Hence human resource management must act as a source of information about and a
source of inspiration for the application of the findings of behavioral science.
It may be a matter of drawing the attention of senior managers what is being
achieved elsewhere and the gradual education of middle managers to new points of view
on job design, work organization and worker autonomy.
HR Function 4:
An organization needs constantly to take stock of its workforce and to assess its
performance in existing job for three reasons:
• To improve organizational performance via improving the performance of indi-
vidual contributions (should be an automatic process in the case of good man-
agers, but (about annually) two key questions should be posed.
• What has been done to improve the performance of a person last year?
• And what can be done to improve his or her performance in the year to come?).
• To identify potential, i.e. to recognize existing talent and to use that to fill vacan-
cies higher in the organization or to transfer individuals into jobs where better use
can be made of their abilities for developing skills.
• To provide an equitable method of linking payment to performance where there
are no numerical criteria (often this salary performance review takes place about
three months later and is kept quite separate from 1. and 2. but is based on the
Basically an evaluation or appraisal scheme is a formalization of what is done in a
more casual manner anyway (e.g. if there is a vacancy, discussions about internal
moves and internal attempts to put square pegs into 'squarer holes' are both the results
of casual evaluation). Most managers approve merit payment and that too calls for
evaluation. Made a standard routine task, it aids the development of talent, warms the
inefficient or uncaring and can be an effective form of motivation.
HR Function 5:
Good industrial relations, while a recognizable and legitimate objective for an
organization, are difficult to define since a good system of industrial relations involves
complex relationships between:
a) Workers (and their informal and formal groups, i.e. trade union, organizations
and their representatives);
b) Employers (and their managers and formal organization like trade and profes-
c) The government and legislation and government agencies 1 and independent
agencies like the Advisory Conciliation and Arbitration.
The personnel manager's involvement in the system of industrial relations varies from
organization to organization; normally he or she is required to provide seven identifiable
1) To keep abreast of individual law (legislation and precedents) and to advise man-
agers about their responsibilities.
2) To conduct (or assist in the conduct) of either local negations (within the plant) or
similarly to act as the employer's representative in national negations.
3) To ensure that agreements reached are interpreted so as to make sense to those
who must operate them at the appropriate level within organization.
4) To monitor the observance of agreements and to produce policies that insures that
agreements are followed within the organization.
5) To correct the situations which go wrong. 'Face' is of some importance in most or-
ganizations and operating at 'remote' staff level personnel managers can correct
industrial relations errors made at local level without occasioning any loss of dig-
nity (face) at the working level.
6) To provide the impetus (and often devise the machinery) for the introduction of
joint consultation and worker participation in decision making in the organization.
To provide statistics and information about workforce numbers, costs, skills etc. as
relevant to negotiations (i.e. the cost of pay rises or compromise proposals, effect on
differentials and possible recruitment retention consequences of this or whether
agreement needs to be known instantly); to maintain personnel records of training,
experience, achievements, qualifications, awards and possibly pension and other records;
to produce data of interest to management in respect of personal matters and to advice
upon or operate directly, grievance, redundancy disciplinary and other procedures.
HR Function 6
Attention to the mental and physical well- being of employees is normal in many
organizations as a means of keeping good staff and attracting others. The forms this
welfare can take are many and varied, from loans to the needy to counseling in respect of
personal problems. Among the activities regarded as normal are:
• Schemes for occupational sick pay, extended sick leave and assess to the firm's
• Schemes for bereavement or other special leave.
• The rehabilitation of injured / unfit / disabled employees and temporary or perma-
nent move to lighter work.
• The maintenance of disablement statistics and registers.
• Provision of financial and other support for sports, social, hobbies, activities of
many kinds which are work related.
• Provision of canteens and other catering facilities possibly assistance with finan-
cial and other aid to employees in difficulty (supervision, maybe of an employee
managed benevolent fund or scheme).
• Provision of information handbooks.
• Running of pre-retirement courses and similar fringe activities.
Care for the welfare aspects of health and safety legislation and provision of first-aid
Employee Training / Development and Education
In general, education is 'mind preparation' and is carried out remote from the actual
work area, training is the systematic development of the attitude, knowledge, skill pattern
required by a person to perform a given task or job adequately and development is the
growth of the individual in terms of ability, understanding and awareness.
Within an organization all three are necessary in order to:
1) Develop workers to undertake higher-grade tasks.
2) Provide the conventional training of new and young workers. (E.g. as apprentices,
3) Raise efficiency and standards of performance.
4) Meet legislative requirements (e.g. health and safety).
5) Inform people (induction training, pre-training courses, etc.).
From time to time meet special needs arising from technical, legislative and
knowledge need changes. Meeting these needs is achieved through the 'training loop'.
ROLE OF HUMAN RESOURCE MANAGEMENT IN
Human resource management is an integral part of management. It helps the
management in taking a strategic view of a very important resource i.e., Human
resource. It helps management in identifying key skill sets, knowledge, values required
in the employee and the rewards that are needed to be given to the employees so that the
organizational goals are fulfilled. Also like other management functions, it has to ensure
that these resources are available at an optimum cost. It has to look into various training
and development activities and development activities to ensure this. This is a key area
for Human resource management as it shows their contribution in terms of money. The
money here would be the opportunity cost incurred due to appointing of new employees
instead of developing current employees for the task in hand.
The HR manager has a dual role in the organization. He performs the role of an
executive as well as a consultant. Managing people is not only a HR area but also part
of the job of line managers. These managers are managers heading various activities
like accounts, audit, production, marketing, sales etc. They have people working under
them and have to manage them too. There are times when line managers have problems
Shandling and are unable to resolve the issue. This is where the HR person steps in as a
consultant. The HR person can provide advice to the line manager to tackle the
situation. This is in addition to the executive role he performs. The executive role of the
HR person is his role in carrying out routine activities of this area. There are occasions
when they have to on both the hats of an executive as well as that of a consultant. A
typical example is the role of the HR person when recruiting people for line functions,
where line managers decide as they have the expertise, they help the line managers with
advice while simultaneously carrying out their role of recruiting
INTRODUCTION TO JOB SATISFACTION
Job satisfaction refers to the person's feeling of satisfaction on the job, which acts as a
motivation to work. It is not the self-satisfaction, happiness or self-contentment but the
satisfaction on the job. It is any combination of psychological and environmental
circumstances that cause the person to truthfully to say I am satisfied with my job. The
term relates to the relationship between an individual and employer which he is paid.
Satisfaction does mean the simple feeling start companying the attainment of goal; the
end state is feeling accompanying the attainment by an impulse of its objective. Job
satisfaction is good not only for employees but also for employers, too; it increases
productivity and decrease absenteeism and turnover.
Job satisfaction refers to the positive and negative feelings and attitudes we hold
about our jobs. It depends on many work related factors, ranging from where we have to
park to the sense of fulfillment we get from our daily tasks. Personal factors can also
influence job satisfaction. These factors include age, health, length of job experience,
emotional stability, social status, leisure activities and family and other social
relationships. Our motivation and aspirations and how well these are satisfied by our
work also affect our attitudes towards our job.
Frederick W. Taylor one of the pioneers believed that workers motivation was
due to largely to their interest in money. He also proposed that the most satisfying
situation was one in which a worker could make the most money with the least effort.
The Hawthorne researchers thought it might be the worker's attitudes about their work
that caused their reactions. Workers were interviewed and encouraged to talk about what
was important and satisfying to them and what they liked and disliked about their jobs.
In recent years, job satisfaction is defined as job attitude along with other
attitudinal concepts, such as morale, job involvement, and organizational commitment
and today it is a blend of many interrelated concepts.
DEFINITIONS OF JOB SATISFACTION
Job satisfaction can be defined as the extent to which an employee expresses a
positive affective towards job.
The term job satisfaction refers to individual's general attitude towards his or her job.
A person with high level of job satisfaction holds positive attitudes about the job, while a
person who is dissatisfied with his or her job holds negative attitude about the job.
Job satisfaction can be defined as the extent of positive feelings or attitudes that
individuals have towards their job. When a person says that he has high job satisfaction,
it means that he really likes his job, feels good about it and values his job highly.
Job satisfaction is defined as the, "pleasurable emotional state resulting from the
appraisal of one's job as achieving or facilitating the achievement of one's job values. In
contrast job dissatisfaction is defined as "the unpleasant emotional state resulting from
the appraisal of one's job as frustrating or blocking the attainment of one's job values or
as entailing disvalues." However, both satisfaction and dissatisfaction were seen as, "a
function of the perceived relationship between what on perceives it as offering or
CONSEQUENCES OF JOB SATISFACTION
High job satisfaction may lead to improved productivity, increased turnover,
improved attendance, reduced accidents, less job stress and lower unionization.
The relationship between satisfaction and productivity is not likely established. The
consensus, however, is that in the long-run 'satisfaction leads to increased productivity.
An employee who performs well in his job gets both intrinsic and rewards which will
lead to satisfaction. A poor performer will feel worse about his incompetence and will
receive fewer rewards. He will be satisfied with his work experiences. Conditions leading
to high activity more clearly leads to high satisfaction is that the employees that intrinsic
and extrinsic rewards are contingent upon their job the extrinsic rewards be distributed
equitably. There may not be a relationship between job satisfaction and productivity;
performance may be affected indirectly by absenteeism or which is related (negatively) to
Job satisfaction and Employee turnover
High employee turnover is of considerable concern for employees (, disrupts normal
operations, causes morale problems for those who stick on, and increases the cost
involved in selecting and training replacements. The employer does whatever possible to
minimize turn over making the employees feel satisfied on their jobs, being one such
workers who have relatively low level of job satisfaction are the most likely to quit their
jobs, and that organizational units with the lowest average satisfaction levels tend to
have the highest turnover rates.
Satisfaction and absences
Correlation of satisfaction to absenteeism is also proved conclusively Workers who are
dissatisfied are more likely to take “mental health tat is, days off not due to illness or
personal business. If absenteeism is high satisfaction is low. As in turnover, absenteeism
is subject to modification by certain factors. The degree to which people feel that their
jobs are important has a moderating effect on their absences. Employees who feel that
there is important tend to clock in regular attendance. Besides, it is important to
remember that while high job satisfaction will not necessarily result in low absenteeism,
low job satisfaction is likely to bring about high absenteeism.
Satisfaction and safety
Poor safety practices are a negative consequence of low satisfaction level. When people
are discouraged about their jobs, company and supervisors, they are more liable to
experience accidents. An underlying reason for such accidents is that discouragement
may take ones from the task at hand. Inattention leads directly to accidents.
Satisfaction and job stress
Job stress is the body's response to any job related factor that threatens to disturb the
person's equilibrium. In the process of experiencing stress, the employee's inner state
changes. Prolonged stress can cause the employee serious ailments such as heart disease,
ulcer, blurred vision, lower back pain, dermatitis and muscle aches. Chronic
dissatisfaction is a powerful source of job stress. The employee may see no satisfactory
short term solution to escaping this type of stress. An employee trapped in a dissatisfying
job may withdraw by such means as high absenteeism and tardiness or the employee may
quit. Employees under prolonged stress stemming from job dissatisfaction often consume
too much alcohol, tobacco and drugs. These employees are costly to the management in
terms of time lost due to frequent absences and increased payments towards medical
Job dissatisfaction is a major cause for unionization. Dissatisfaction with wages, job
security, fringe benefits, chances for promotion and treatment by supervisors are reasons,
which make employees, join unions. Another dimension is that job dissatisfaction can
have an impact on the tendency to take action within the union, such as feeling
grievances or striking.
JOB SATISFACTION - PUTTING THEORY INTO PRACTICE
Yes, it is possible for you and your employees to be happy on the job. The key is in how
you handle two factors motivation and 'hygiene.'
Employee satisfaction and retention have always been important issues for physicians.
After all, high levels of absenteeism and staff "mover can affect your bottom line, as
temps, recruitment and training take their toll. But few practices (in fact, few
organizations) have made job satisfaction a top priority, perhaps because they have failed
to understand the significant opportunity that lies in front of them.
Satisfied employees tend to be more productive, creative and committed to their
employers, and recent studies have shown a direct correlation between staff satisfaction
and patient satisfaction.
Family physicians who can create work environments that attract, motivate and retain
individuals will be better positioned to succeed in a competitive health care environment
that demands quality and cost efficiency. What's more, physicians may even discover that
by creating a positive workplace for their employees, they've increased their own job
satisfaction as well.
In the late 1950s, Frederick Herzberg, considered by many to be a pioneer in motivation
theory, interviewed a group of employees to find what made them satisfied and
dissatisfied on the job. He asked the employees essentially two sets of questions
Think of a time when you felt especially good about your job. Why did you feel that
way? Think of a time when you felt especially bad about your job. Why did you feel that
From these interviews Herzberg went on to develop his theory that there are two
dimensions to job satisfaction motivation and "hygiene". Hygiene issues, according to
Herzberg, cannot motivate employees but minimize dissatisfaction, if handled properly.
In other words, they can only dissatisfy if they are absent or mishandled. Hygiene topics
include company policies, supervision, salary, interpersonal relations conditions. They
are issues related to the employee's Motivators; on the other hand, create satisfaction by
fulfilling individuals' needs for meaning and personal growth. They are issues such as
achievement, recognition, the work itself, responsibility and advancement. Once the
hygiene areas are addressed, said Herzberg, the motivators will promote job satisfaction
and encourage production. Satisfaction affects every aspect of a medical practice, from
patient satisfaction to overall productivity.
Frederick Herzberg theorized that employee satisfaction has two dimensions "hygiene"
and "motivation". Hygiene issues, such as salary and supervision, decrease employee's
dissatisfaction with the work environment. Motivators, such as recognition and
achievement, make workers more productive, creative and committed.
Dimensions of employee satisfaction
Frederick Herzberg theorized that employee satisfaction depends upon sets of issues
"hygiene" issues and motivators. Once the hygiene have been addressed, he said, the
motivators create satisfaction among employees.
Hygiene Issues (Dissatisfaction) Motivators (Satisfiers)
Company and administrative policies Work itself
Interpersonal relations Responsibility
Working Conditions Advancement
Applying the theory
To apply Herzberg's theory to real-world practice, let's begin with the hygiene
issues. Although hygiene issues are not the source of satisfaction, these issues must be
dealt with first to create an environment in which employee satisfaction and motivation
are even possible.
Company and administrative policies
An organization's policies can be a great source of frustration for employees if the
policies are unclear or unnecessary or if not everyone is required to follow them.
Although employees will never feel a great sense of motivation or satisfaction due to
your policies, you can decrease dissatisfaction in this area by making sure your policies
are fair and apply equally to all. Also, make printed copies of your policies-and-
procedures manual easily accessible to all members of your staff. If you do not have a
written manual, create one, soliciting staff input along the way. If you already have a
manual, consider updating it (again, with staff input). You might also compare your
policies to' those of similar practices and ask yourself whether particular policies are
unreasonably strict or whether some penalties are too harsh.
To decrease dissatisfaction in this area, you must begin by making wise decisions
when you appoint someone to the role of supervisor. Be aware that good employees do
not always make good supervisors. The role of supervisor is extremely difficult. It
requires leadership skills and the ability to treat all employees fairly. You should teach
your supervisors to use positive feedback whenever possible and should establish a set
means of employee evaluation and feedback so that no one feels singled out.
The old “you get what you pay for" tends to be true when it comes to staff
members. Salary is not a motivator for employees, but they do want to be paid fairly. If
individuals believe they are not compensated well, they will be unhappy working for you.
Consult salary surveys or even your local help-wanted ads to see whether the salaries and
benefits you are offering are comparable to those of other offices in your area. In
addition, make sure you have clear policies related to salaries, raises and their bonuses.
Interpersonal relations: Remember that part of the satisfaction of being employed is the
social contact it brings so allow employees a reasonable amount of time for socialization
(e.g., over lunch, during breaks, between patient). This will help them develop a sense of
teamwork. At the same time, you should crack down on rudeness, in appropriate behavior
and offensive comments. If an individual continues to be disruptive, take charge of the
situation, perhaps by dismissing him or her from the practice.
The environment in which people work has a tremendous effect on their level of pride for
themselves and for the work they are doing. Do everything you can to keep your
equipment and facilities up to date. Even a nice chair can make a world of difference to
an individual's psyche. Also, if possible, avoid overcrowding and allow each employee
his or her own personal space, whether it is a desk, a locker, or even just a drawer. If
you've placed your employees in close quarters with little or no personal space, don't be
surprised that there is tension among them.
Before you move on to the motivators, remember that you cannot neglect the
hygiene factors discussed above. To do so would be asking for trouble in more than one
way. First, your employees would be generally unhappy, and this would be apparent to
your patients. Second, your hardworking employees, who can find jobs elsewhere, would
leave, while your mediocre employees would stay and compromise your practice's
success. So deal with hygiene issues first, then move on to the motivators.
Perhaps most important to employee motivation is helping individuals believe that the
work they are doing is important and that their tasks are meaningful. Emphasize that their
contributions to the practice result in positive outcomes and good health care for your
patients. Share stories of success about how an employee's actions made real difference in
the life of a patient, or in making a process better. Make a big deal out of meaningful
tasks that may have become ordinary, such as new-baby visits. Of course employees may
not find all their tasks interesting or rewarding, but you should show the employee how
those tasks are essential to the overall processes that make the practice succeed. You may
find certain tasks that are truly unnecessary and can be eliminated or streamlined,
resulting in greater efficiency and satisfaction.
Achievement: One premise inherent in Herzberg's theory is that most individuals
sincerely want to do a good job. To help them, make sure you've placed them in positions
that use their talents and are not set up for failure. Set clear, achievable goals and
standards for each position, and make sure employees know what those goals and
standards are. Individuals should also receive regular, timely feedback on how they are
doing and should feel they are being adequately challenged in their jobs. Be careful,
however, not to overload individuals with challenges that are too difficult or impossible,
as that can be paralyzing.
Recognition: Individuals at all levels of the organization want to be recognized for their
achievements on the job. Their successes don't have to be monumental before they
deserve recognition, but your praise should be sincere. If you notice employees doing
something well, take time to acknowledge their good work immediately. Publicly thank
them for handling a situation particularly well. Write them a kind note of praise. Or give
them a bonus, if appropriate. You may even want to establish a formal recognition
program, such as "employee of the month."
Responsibi1ity: Employees will be more motivated to do their jobs well if they have
ownership of their work. This requires giving employees enough freedom and power to
carry out their tasks so that they feel they “own" the result. As individuals mature in their
jobs, provide opportunities for added responsibility. Be careful, however, that you do not
simply add more work. Instead, find ways to add challenging and meaningful work,
perhaps giving the employee greater freedom and authority as well.
Advancement: Reward, loyalty and performance with advancement. If you do not have
an open position to which to promote a valuable employee, consider giving him or her a
new title that reflects the level of work he or she has achieved. When feasible, support
employees by allowing them to pursue further education, which will make them more
valuable to your practice and more fulfilled professionally.
Maslow’s need hierarchy theory
Maslow outlined the most influential theory. He suggested a hierarchy of needs up which
progress. Once individuals have satisfied one need in the hierarchy, its seizes to motivate
their behavior and they are motivated by the need at the next level up the hierarchy.
Physiological needs such as hunger, thirst are the first level on the hierarchy. Security
needs such as shelter and protection are the next level. Social needs such as need for
satisfactory and supportive relationships are the next level. From these needs, the
individual can move up the hierarchy to higher order needs. Self esteem needs for
recognition and a belief in oneself is the next level. Finally, the progression leads to the
need to realize one's full potential, which is termed Self-actualization. Only a small
proportion of the population achieves this level.
The theory suggests that employees will always tend to want more from their
employers. When they have satisfied their subsistence needs, they strive to fulfill security
needs. When jobs are secure they will seek ways of satisfying social needs and if
successful will seek the means to the ultimate end of self-actualization.
Alderfer's E-R-G Model
Alderfer suggests that individual needs can be grouped under three groups:
• Existence needs: which include nutritional and material requirements (at work this
would include pay and conditions.)
• Relatedness needs, which are met through relationships with family and friends at
work with colleagues.
• Growth needs, which reflect a desire for personal psychological developments.
This is very similar to Maslow can be seen as just collapsing into three tiers, but may be a
bit more rational. For example, in Alderfer's model sex does not need to be in the bottom
category as it is in not crucial to (the individual's) existence. (Remember, this about
individual Motivation, not species' survival). So by moving sex, this theory does not
predict that people to have sex before they can think about going to school maslow’s
Alderfer believed that as you start satisfying higher needs, they become more
intense (example-the power you get the more you want power) like an addiction.
Expectancy theory (Vroom)
This theory is meant to bring together many of the elements of the previous theories. It
combines the perpetual aspects of equity theory with the behavioral aspects of the other
theories. Basically, it comes down to this equation:
Motivation = expectancy*instrumentality*valence
M (motivation) is the amount a person will be motivated by the situation they find
themselves in. It is a function of the following.
E (expectancy) is the person's perception that effort will result in performance. In other
words, the person's assessment of the degree to which effort actually correlates with
I (Instrumentality) is the person's perception that performance will be rewarded or
punished. I.e., the person's assessment of how well the amount of reward correlates with
the quality of performance. (Note here that the model is phrased in terms of extinction
motivation, in that it what are the chances I am going to get rewarded if I do good job.
But for intrinsic situation situations, we can think of this as asking 'how good will I feel if
I pull this off?').
V (valence) is the perceived strength f the reward or punishment that will result from the
performance. If the reward is small, the motivation will be small, even if expectancy and
instrumentality are both perfect (high).
The expectancy theory says that individuals have different sets of goals and can be
motivated if they believe that:
1. There is a positive correlation between efforts and performance,
2. Favorable performance will result in a desirable reward,
3. The reward will satisfy an important need,
4. The desire to satisfy the need is strong enough to make the effort worthwhile.
Acquired Needs Theory (mcclellan)
• Some needs are acquired as a result of life experiences
• Needs for achievement, accomplish something difficult. As kids encouraged to do
things for themselves.
• Need for affiliation, form close personal relationships as kids rewarded for mak-
• Need for power, control others. as kids, able to get what they want through con-
These needs can be measured using the TAT(Thematic Apperception Test), which is a
projection-style test based on interpreting stories that people tell about a set of pictures.
Cognitive evaluation theory
This theory suggests that there are actually two motivation systems: intrinsic and
extrinsic that corresponds to two kinds of motivators:
Intrinsic motivators: Achievement, responsibility and competence. Motivators that
come from the actual performance of the task or job –the intrinsic interest of the work.
Extrinsic motivators: pay, promotion, feedback, working conditions-things that come
from a person's environment, controlled by others.
One or the other of these may be a more powerful motivator for an individual.
Intrinsically motivated individuals perform for their own achievement and
satisfaction. If they come to believe that they are doing some job because of the pay or
the working conditions or some other extrinsic reason, they begin to lose motivation.
The belief is that the presence of powerful extrinsic motivators can actually reduce a
person's intrinsic motivation, particularly if the extrinsic motivators are perceived by the
person to be controlled by people. In other words, a boss who is always dangling this
reward or that stick will turn off the intrinsically motivated people.
Suppose employee A gets a 20% raise and employee B gets a 10% raise. Will both be
motivated as a result? Will A be twice as motivated? Will be B be negatively motivated?
Equity theory says that it is not the actual reward in isolation, but in comparison with the
efforts that went into getting it, and the rewards and efforts of others.
If everyone got a 5% raise, B is likely to feel quite pleased with her raise, even if she
worked harder than everyone else. But if A got even higher raise, B perceives that she
worked just as hard as A, she will be unhappy. In other words, people's motivation results
from a ratio of ratios: a person compares the ratio of reward to effort with the comparable
ratio of reward to effort that they think others are getting. Of course, in terms of actually
predicting how a person will react to a given motivator, this will get pretty complicated.
1. People do not have complete information about how others are rewarded. So they
are going on perceptions, rumors, and inferences.
2. Some people are more sensitive to equity issues than others
3. Some people are willing to ignore short-term inequalities as long as they expect
things to work out in the long term.
Operant conditioning is term used by B.F.Skinner to describe the effects of the
consequences of a particular behavior on the future occurrence of that behavior. There are
four types of operant conditioning:
Positive Reinforcement, Punishment and extinction. Both positive and negative
reinforcement strengthen behavior while both punishment and extinction weaken
• Positive reinforcement: Strengthening a behavior. This is the process of getting
goodies as a consequence of a behavior. You make a sale you get a commission.
You do a good job you get a bonus and a promotion.
• Negative reinforcement: Strengthening a behavior. This is the process of having
a stressor taken away as a consequence of a behavior. Long- term sanctions are
removed from countries when their human rights records improve (you see how
successful that is). Low status as geek at Salomon Brothers is removed when you
make first big sale.
• Extinction: Weakening a behavior. This is the process of getting no goodies
when do a behavior. So a person does extra effort, but gets no thanks for it, they
stop doing it.
• Punishment: Weakening a behavior. This is the process of getting a punishment
as a consequence of a behavior. Example: having your pay docked for lateness.
Punishment reinforcement Negative reinforcement (raise
(raise above baseline) up to baseline)
Punishment (bring down
Stressor Extinction (stay at baseline)
The traditional reinforcement schedule is called a continuous reinforcement
schedule. Each time the correct behavior is performed it gets reinforced.
Then there is what we call an intermittent reinforcement I schedules. There are fixed and
The fixed interval schedule: is where reinforcement is only given after a certain
amount of time has lapsed. So, if you decide on a 5 second interval then each
reinforcement can occur at the fixed time of every 5 seconds.
The fixed ratio schedule: is where the reinforcement is given only after a predetermined
response. This is often seen in behavior chains where a number of behaviors have to
occur for reinforcement to occur.
The variable schedule: is where the reinforcement is given after varying amount of time
between each reinforcement. The variable ratio schedule is where the reinforcement is
given after a varying number of correct responses.
Fluctuating combinations of primary and secondary reinforces fall under other terms in
the variable ratio schedule; For example, Reinforces delivered intermittently in a
Randomized order (RIR) or Variable Ratio with Reinforcement Variety (VRRV).
Give reward after a
certain amount of
Give reward after first time w.r.t the amount
proper response following a changing before the
specified time period (yearly next reward
raise) [short term]. (unexpected bonus
Give reward after a
Punishment (subtract from
responses, w.r.t that
baseline) (commissions or
Ratio no. changing before
the next reward
Correlates of Job Satisfaction
As well as the theories, there have also been attempts to establish whether specific
variables such as gender, age, personality or occupational status are predictive of job
satisfaction. However there is evidence that job characteristics have a different impact on
men and women. There is growing evidence that there is a relationship between age and
job satisfaction but not linear one. Age itself rather than the variables associated with it
have a direct impact on job satisfaction. Variables such as socio economic status may
also cause different groups of workers to construct different meanings as to what
constitutes a satisfactory job.
Behavioral correlates of Job satisfaction
The behavioral correlates of job satisfaction should be higher work performance, lower
absenteeism and lower turnover. However, research has failed to establish a strong direct
link between job satisfaction and workplace behavior. Job satisfaction and performance
are relatively independent of each other. This is explained firstly that in many jobs
variations in satisfaction cannot lead to variations in productivity (machine work) and
secondly where correlations do occur they may be spurious in that both may be
associated with other factors.
There are usually dissatisfactions even in the best jobs. When employees are dissatisfied
with their jobs, lack job involvement, are low in their commitment to the organization,
and have strongly negative moods, a wide variety of consequences may follow.
Dissatisfied employees may engage in psychological withdrawal (day dreaming on the
job etc.), physical withdrawal (unauthorized absences, early departures, extended breaks,
or work shutdowns etc.) or even overt acts of aggression and retaliation for presumed
Job dissatisfaction produces low morale among workers and low morale at work is highly
undesirable. Accordingly, managers must be constantly watching for any signs of low
morale and job dissatisfaction and take corrective action as soon as possible. Some of the
indicators of low morale are:
1. Low productivity:
Happy workers are necessarily productive workers. At the individual level, the evidence
suggests the reverse to be more accurate- that productivity is likely to lead to satisfaction.
Another way in which employees exhibit their dissatisfaction with job conditions is
through tardiness. A tardy employee is one who comes to work but arrives beyond the
designated starting time. Tardiness is a type of short period absenteeism ranging from
few minutes to several hours for each event, and it is another way in which employees
physically withdraw from active involvement in the organization.
There exists consistent negative relationship between satisfaction and absenteeism. It
certainly makes sense that dissatisfied employees are more likely to miss work. If people
are dissatisfied with their job, their supervisor and/or their coworkers, they are more
likely to be absent. In many ways employees who come to work late or who do not come
at all create more problems for organization than employees who quit. In such cases
replacing these employees may not be possible, hence job gets delayed.
4. Employee turnover
The ultimate form of withdrawal is when an employee quits an organization. Sometimes
managers might be glad to see the person go because he or she has been a poor performer
and a management obstacle. Other times, managers may lament the fact that they are
loosing one of their best employees. Regardless of who leaves the process finding, hiring,
training and socializing a replacement is costly affair for the organization.
Responses to Job Dissatisfaction
Employee dissatisfaction can be expressed in a number of ways. For example,
rather than quit, employees can complain, be subordinate, steal organizational property or
shrink apart of their work responsibilities. Four responses that differ from one another
along two dimensions constructive/destructive and active/passive. They are defined as
• Exit: behavior directed towards leaving the organization, including looking for a
new position as well as resigning. Dissatisfaction is expressed through behavior
directed towards leaving the organization.
• Voice: actively and constructively attempting to improve conditions, including
suggesting improvements, discussing problems with superiors and some forms of
union activity. Dissatisfaction expressed through active and constructive attempts
to improve conditions.
• Loyalty: passively but optimistically waiting for conditions to improve including
speaking-up for the organization in the face of external criticism and trusting the
organization and its management to "do the right thing". Dissatisfaction expressed
by passively waiting for conditions for improve.
• Neglect: passively allowing conditions to worsen including chronic absenteeism
or lateness, reduced effort, and increased error rate. Dissatisfaction expressed
through allowing conditions to worsen.
Exit and Neglect behaviors encompass the performance variables- productivity,
absenteeism and turnover. But this model expands employee response to include
voice and loyalty- constructive behaviors that allow individuals to tolerate unpleasant
situations or to revive satisfactory working conditions.
MEASURING JOB SATISFACTION
A job is more than just the obvious activities of shuffling papers, writing
programming code, waiting on customers, or driving a truck. Jobs require interaction
with co-workers and bosses, following Organizational rules and policies, meeting
performance standards, living with working conditions that often less than ideal, and
the like. This means that an employee’s assessment of how satisfied or dissatisfied he
or she is with his or her job is a complex summation of a number of discrete job
elements. The two most widely used approaches for measuring the concept are a
single global rating and a summation score made up of a number of job facets.
• Single global rating:
Single global rating is nothing more than asking individuals to respond to one
question, respondents then reply by circling a number between one and five that
corresponds to answers from "highly satisfied" to "highly dissatisfied".
• Summation of job facets:
The summation of job facets is more sophisticated. It identifies key elements in a
job and asks for the employee's feelings about each. Typical factors that would be
included are the nature of the work, supervision, present pay, promotion opportunities
and relations with co-workers. These factors are rated on a standardized scale and
then added up to create an overall job satisfaction.
Employee satisfaction surveys
Employee satisfaction survey can be used to gauge current levels of satisfaction
and identify opportunities for improvement as perceived by the employees. Measures
of strengths and weakness tell practitioners where the improvements can be made.
Employee satisfaction surveys or job satisfaction surveys are important because they
focus on measuring the following key aspects of employee satisfaction:
• working condition/ environment
• Salary /wages/bonuses,
• Recognition and achievement,
• Policies, work itself,
• Career opportunities
• Superior subordinate relationship
• Interpersonal relations, freedom and authority,
• Responsibi1ity, feedback, challenges, hygiene, motivation, social interaction, per-
sonal space, fair treatment, work schedule.
• Communication network, disciplinary measures, decision making.
• Work group pressure/colleague relationship, training and development program,
• Team work, security, transport facility, leisure activity, leave rules, amenities,
fringe benefits, encouragement etc.
The human resource function monitors job satisfaction because satisfaction
affects turnover, absences, grievances and other vital human resource issues. In many
organizations human resource specialists periodically conduct job satisfaction surveys
and study other indices of satisfaction in order to gauge employee feelings. In
addition satisfaction is affected by the way human resource specialists administer
human resource activities. Bureaucratic oriented human rules resource departments
can be a source of employee dissatisfaction. In contrast, more helpful human oriented
human resource departments build employee motivation, growth and satisfaction.
Highly satisfied employees are least likely to leave the organization, have high pro-
social behavior, better attitudes towards supervisor and work group and will be more
challenging, creative, committed and productive.
Benefits of job satisfaction study
• Benefit of job satisfaction survey is that they give management an indication of
general levels of satisfaction in a company. Surveys also indicate specific areas of
satisfaction and dissatisfaction and particular groups of employees it tells how
employees feel about their job, what parts of their jobs these feelings are focused
on, which departments are particularly affected, and whose feelings are involved.
The survey is a powerful diagnostic instrument for assessing employee problems.
• Improved communication is another benefit of the survey. Communication flows
in all the directions as people plan the survey, talk and discuss its results. Particu-
larly beneficial to the company is, the upward communication when employees
are encouraged to comment about what they really have in their minds.
• An unexpected benefit from a job satisfaction survey is improved attitudes. For
some employees the survey is the safety valve, an emotional release, a chance to
get things off their chest. For others the survey is a tangible expression of man-
agement's interest in employee welfare, which gives employees a reason to feel
better towards management.
• The job satisfaction survey can help discover the causes of indirect productivity
problems, such absenteeism, turnover and poor quality of work. Survey can help
management both to get a better handle on why employees are lagging and to plan
better solutions to problems.
• Surveys help management assess training needs. Usually employees are given an
opportunity to report how they feel their supervisor performs certain parts of the
jobs, such as delegating the work and giving adequate job instructions. Since em-
ployees experience these supervisory acts, their perceptions may provide useful
data about training of their supervisors.
• Survey is an indicator of the effectiveness of organizational reward systems. The
relationship between performance and satisfaction will be strong when rewards
intrinsic and extrinsic are distributed equitably contingent upon performance. Job
satisfaction surveys can provide some clues as to the effectiveness of the organi-
zational rewards system. They help managers judge whether the best performers
are receiving the most rewards and most satisfaction from their jobs. The best per-
formers are likely to quit if they are not suitably rewarded.
• One of the best uses of job satisfaction surveys is in the evaluation of the impact
of organizational changes on employee attitudes.
• Finally, it is not that, satisfaction surveys benefit often only management. They
are useful to unions too. Often both management and union argue about what the
employees want, but neither really knows. The survey is one way to find out. It is
for this reason unions support surveys.
But the benefits discussed above would be realized, subject to certain prerequisites.
Following are the conditions top management actively supports the survey, employees
are fully involved in planning the survey, a clear objective exists for conducting the
survey, the study is designed and administered consistent with standards with sound
research, management is willing and capable to take follow up action, both the results and
action plans are communicated to employees.
ANALYSIS AND INTERPRETATION
The analysis is based on the Questionnaire given to the employees working in
Amalgamated Bean Coffee Trading Company Limited, to know their job satisfaction.
The analysis is statistical. A questionnaire consisting of 15 questions were distributed in
the company. The analysis and interpretation are done on the following basis:
The questionnaire distributed was of objective type. A question followed with five
options were given that is
a) Most disagree
c) Neither agree nor disagree
e) Most agree
The respondent had to tick on whichever answer he or she found relevant.
Each question was individually analyzed
Pie chart is been used as the tool for analyzing each question. Based on the
occurrence, chart is drawn and inference of the same is given below the chart. The
analysis is done considering the responses of employees for individual questions. The
questions were framed on the basis of major factors that influence job satisfaction.
The factors that generally influence job satisfaction are:
1. Working hours
2. Job itself
4. Career opportunities
5. Recognition and reward
6. Colleague relationship
7. Physical environment
8. Team work
9. Company policies
10. Training and development activities
11. Attitude of superiors
13. Welfare measures
The responses for the questions indicate, whether the employees are satisfied as a whole.
The responses received from the employees are tabulated and graphically presented
An employee is satisfied with flexible working hours. He can work satisfactorily
if the time is adjustable to him with some leisure time in between the work. The
following table shows the break up response to the questions related to working hours:
Attributes No. of Respondents Percentage
Most Disagree 0 0%
Disagree 4 20%
Neither disagree nor agree 0 0%
Agree 12 60%
Most Agree 4 20%
Total 20 100%
Most Agree Disagree
Neither disgree nor
60% Neither disgree nor agree
80% of the respondents are satisfied with their working hours and 20% of them
are dissatisfied with their working hours.
Employees if they are satisfied with their nature of work they take their work as
meaningful and challenging. They tend to prefer being given opportunities to use their
skills and abilities. They should be emphasized that their contributions to the practice
result in positive outcomes and good health for your patience. The following table shows
the break up of response to the question related to work itself:
Attributes No.of Respondents Percentage
Most Disagree 0 0%
Disagree 2 10%
Neither disgree nor agree 2 10%
Agree 12 60%
Most Agree 4 20%
Total 20 100%
0% 10% Neither disgree nor
60% Neither disgree nor agree
80% of the employees are satisfied with their work, 10% are dissatisfied and 10% are
neither satisfied nor dissatisfied.
Salary is not a motivator for employees, but it plays a significant role in influencing job
satisfaction and they do want to be paid fairly for their work. If individuals believe they
are not compensated well, they will be unhappy in working. The following table shows
the break up of response to the questions related to salary.
Attributes No.of Respondents Percentage
Most Disagree 4 20%
Disagree 4 20%
Neither disgree nor agree 0 0%
Agree 12 60%
Most Agree 0 0%
Total 20 100%
60% 20% Most Disagree
Neither disgree nor
agree Neither disgree nor agree
60% of the employees are satisfied with their salary, whereas 40% employees are
dissatisfied with their salary.
As individuals mature in their jobs, provided opportunities for added
responsibility. The desire for promotion is generally strong among employees as it
involves change in job content, pays, independence, status and the like. The following
table shows the break up of response to the questions related to career opportunities
Attributes No. of Respondents Percentage
Most Disagree 0 0%
Disagree 4 20%
Neither disgree nor agree 0 0%
Agree 16 80%
Most Agree 0 0%
Total 20 100%
Neither disgree nor
Neither disgree nor agree
80% of the employees are satisfied with their career opportunities, whereas 20%
of the employees are dissatisfied with the career opportunities.
RECOGNITION AND REWARD
Individuals at all levels of the organization want to be recognized for their
achievements on the job. Their successes do not have to be monumental before they
deserve recognition but they should be sincerely praised. The following table shows the
break up of response to the questions related to recognition and reward system:
Attributes No.of Respondents Percentage
Most Disagree 4 20%
Disagree 8 40%
Neither disgree nor agree 0 0%
Agree 8 40%
Most Agree 0 0%
Total 20 100%