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MBA HR Project Employee Satisfaction
Posted by Lazy Student at 04:00:00 Labels: HR Project
CHAPTER 1
INTRODUCTION
Employee satisfaction has been defined as a function of perceived performance and expectations. It is a
persons’ feeling of pleasure or disappointment resulting from comparing a products’ outcome to his/her
expectations.
If the performance falls short of expectations, the employee is dissatisfied and if it matches the
expectations, the employee is satisfied. A high satisfaction implies improvement in efficiency and
performance doing work or service. The process is however, more complicated then it appears. It is more
important for any organization to offer high satisfaction, as it reflects high loyalty and it will not lead to
switching over once a better offer comes in.
1.1 AIM OF STUDY:
To carry out the study of the employee satisfaction at company and assess the employee satisfaction level in
present competitive environment of Industry to help knowing and reading of the minds of the current
generation professionals regarding their Company Culture, Compensation, Work atmosphere, Management
support, Job satisfaction, performance appraisal and Career growth opportunities.
1.2 RATIONALE BEHIND THE STUDY:
Employees are the basis of every organization. Recruiting and retaining knowledgeable people for the job is
essential for an employer. But it works only if employee satisfaction is considered more important because
of it employees attracted and not leave the company. It is require studying the various factors to assess
employee satisfaction level.
1.3 OBJECTIVES OF STUDY:
i. To Measure the satisfaction levels of employees on various factors and give suggestions for improving
the same.
ii. To study the relationship between the personal factors of the employee (Gender, Designation,
Qualification, Age, and Years of Service in a company) with satisfaction level.
iii. To derive and analyze the current satisfaction level of the employees in the company
iv. To study the various factors which influencing employee satisfaction.
1.3a HYPOTHESIS:

1. There is no significant relationship between gender and level of satisfaction.
2. There is no significant relationship between designation and level of satisfaction.
3. There is no significant relationship between educational qualification and level of satisfaction.
4. There is no significant relationship between age and level of satisfaction.
5. There is no significant relationship between experience (no. of years of service) in a company and level
of satisfaction.
1.4 RESEARCH METHODOLOGY:
The methodology followed for conducting the study includes the specification of research design, sample
design, questionnaire design, data collection and statistical tools used for analyzing the collected data.
1.4a RESEARCH DESIGN: The research design used for this study is of the descriptive type. Descriptive
research studies are those studies which are concerned with describing the characteristics of a particular
individual or a group.
1.4b POPULATION: The total element of the universe from which sample is selected for the purpose of
study is known as population. The population of my research is the employees of company.
1.4c SAMPLE SIZE: All the items consideration in any field of inquiry constitutes a universe of population.
In this research only a few items can be selected form the population for our study purpose. The items
selected constitute what is technically called a sample. Here out sample size is 50 employees from the total
population to conduct the study.
1.4d DATA COLLECTION:
The data source: Primary and Secondary
The research approach: Survey Method
The research instrument: Questionnaire Method
The respondents: Executives, Sr. Executives, Assistant Managers, Managers and Top Management of various
departments.
1.4e QUESTIONNAIRE SCHEDULE: Questions are framed in such a way that the answers reflect the ideas
and thoughts of the respondents with regard to level of satisfaction of various factors of employee
satisfaction. The questionnaire has total 50 questions and Likert scaling techniques has been used for each
question.
5. Strongly agree
4. Agree
3. Neutral
2. Disagree
1. Strongly disagree
1.4f TOOLS OF ANALYSIS:
1.4f1 Simple Percentage Analysis: Here the simple percentage analysis is used for calculating the

percentage of satisfaction level in the total respondents.
1.4f2 Two-Way Analysis: The score secured by the respondents who falls between the score as up to 13
indicates less satisfaction of the respondents, from 14 –20 are got average satisfaction and above 21
respondents got highly satisfaction level.
1.4f3 Chi-Square Test: Chi-square test is applied to test the goodness of fit, to verify the distribution of
observed data with assumed theoretical distribution. Therefore it is a measure to study the divergence of
actual and expected frequencies; Karl Pearson’s has developed a method to test the difference between the
theoretical (hypothesis) & the observed value.
Chi – square test (X2) = (O – E) 2 / E
Degrees Of Freedom = V = (R – 1) (C -1)
Where,
‘O’ = Observed Frequency
‘E’ = Expected Frequency
‘R’ = Number of Rows
‘C’ = Number of Columns
For all the chi-square test the table value has taken @ 5% level of significance.
1.4f4 Employee Satisfaction comparison using MEAN and Combined Mean: Mean for each factor was
calculated to measure the satisfaction level of the employee in the organization on an average. Standard
Deviation was also calculated to see the variation in data. Combined mean was calculated to find out level of
satisfaction of employees for each factor described related to Gender, Designation, Qualification, Employee
Age and Years of Service in a company.
Mean =
Combined Mean =
Where , are means and nx , ny are respondent
Standard Deviation =
1.5 AREAS OF STUDY:
The area of the study is Panasonic Energy India Co. Limited, Vadodara.
1.6 SIGNIFICANCE AND NEED FOR STUDY:
The employee satisfaction is the orientation of the industry towards his work role, which he is presently
playing. The organization will only thrive and survive when its employees are satisfied.
This makes person says completely that he is fully satisfied with the job. This study conducted so that the
employees give their full, honest and frank opinion by remaining anonymous about how they feel about their
jobs.
The survey is also useful way to assess the training needs and also a tangible expression of the
management’s interest in the employee welfare, which would give the employee a cause to have and feel
better towards the management.
1.7 LIMITATIONS OF STUDY:

Each and every task has certain limitations and hurdles in the course of its performance. But this does not
mean that the task should stick up whenever certain limitations come up. The need is to try one’s level best
to solve incoming limitations. Few limitations of the project are enumerated below:
• This study is only limited to this company.
• The method of random sampling is suitable for small populations only.
• To create good image, respondents may give responses vary from the facts.
• Some respondents hesitated to give the actual situation; they feared that management would take any
action against them.
• It does not ensure proportionate representation to all constituent group of population.
• I was able to cover only those employees who were currently working in the company.
CHAPTER 2
EMPLOYEE SATISFACTION
2.1 CONCEPT
Employee satisfaction is the terminology used to describe whether employees are happy and contented and
fulfilling their desires and needs at work. Many measures meaning that employee satisfaction is a factor in
employee motivation, employee goal achievement, and positive employee morale in the workplace.
As per Vroom “Employee Satisfaction is a positive orientation of an individual towards a work role which he
is presently occupying”
Employee satisfaction is a measure of how happy workers are with their job and working environment.
Keeping morale high among workers can be of tremendous benefit to any company, as happy workers will
be more likely to produce more, take fewer days off, and stay loyal to the company. There are many factors
in improving or maintaining high employee satisfaction, which wise employers would do well to implement.
Employee satisfaction, while generally a positive in organization, can also be a bad luck if mediocre
employees stay because they are satisfied with your work environment.
Many experts believe that one of the best ways to maintain employee satisfaction is to make workers feel
like part of a family or team. Holding office events, such as parties or group outings, can help build close
bonds among workers. Many companies also participate in team-building retreats that are designed to
strengthen the working relationship of the employees in a non-work related setting. Camping trips, paintball
wars and guided backpacking trips are versions of this type of team-building strategy, with which many
employers have found success.
Of course, few workers will not experience a boost in morale after receiving more money. Raises and
bonuses can seriously affect employee satisfaction, and should be given when possible. Yet money cannot
solve all morale issues, and if a company with widespread problems for workers cannot improve their overall
environment, a bonus may be quickly forgotten as the daily stress of an unpleasant job continues to mount.
If possible, provide amenities to your workers to improve morale. Make certain they have a comfortable,
clean break room with basic necessities such as running water. Keep facilities such as bathrooms clean and
stocked with supplies. While an air of professionalism is necessary for most businesses, allowing workers to

keep family photos or small trinkets on their desk can make them feel more comfortable and nested at their
workstation. Basic considerations like these can improve employee satisfaction, as workers will feel well
cared for by their employers.
The backbone of employee satisfaction is respect for workers and the job they perform. In every interaction
with management, employees should be treated with courtesy and interest. An easy avenue for employees
to discuss problems with upper management should be maintained and carefully monitored. Even if
management cannot meet all the demands of employees, showing workers that they are being heard and
putting honest dedication into compromising will often help to improve morale.
Satisfaction = f(what employee expects, what she gets, time, back ground of the employee- social,
economic, cultural)
Satisfaction being a continuous process starts from the day 1 and gets reinforced with time depending on
the importance of the various factors considered to be important for the individual employee. Loyalty
towards the organization starts to develop when the employee continues to get the positive reinforcements
on various important aspects for the duration of the employment.
Core Values as a Foundation of Employee Satisfaction:
These are the values that have enabled employees to build the leading company in industry; these are the
values that will fuel employees’ worldwide growth in the coming years; and these are the values that will
drive employees’ career:
• Professionalism – Demonstrating professional methods, character and standards. Treating prospects,
clients and co-workers generously and charitably at all times, but especially in the face of adversity.
• Enthusiasm – Showing excitement, optimism and passion for your work.
• Resourcefulness – Acting effectively and imaginatively to produce great results from scarce resources.
• Self-directedness – Working independently and autonomously to achieve the goals set by management.
• Ethics – Acting in accordance with the accepted principles of right and wrong that govern the conduct of
our profession.
• Unselfishness – Putting others before yourself, giving your time and effort for prospects, clients and co-
workers. Showing cooperative effort as the member of a group to achieve a common goal.
• Strategic-mindedness – Suggesting and implementing long-term improvements springing from a
sequence of short-term tasks.
2.2 WHY TO STUDY ABOUT EMPLOYEE SATISFACTION?
The study of "employee satisfaction" helps the company to maintain standards & increase productivity by
motivating the employees. This study tells us how much the employees are capable & their interest at wok
place? What are the things still to be satisfy to the employees. Although "human resources" are the most
important resources for any organization, so to study on employee’s satisfaction helps to know the working
conditions & what are the things that affect them not to work properly? Always majority of done by the
machines/equipments but without any manual moments nothing can be done. So to study on employee
satisfaction is necessary
The Hows and Whys of Employee Satisfaction Mapping:
An organization is all about customer satisfaction. Companies understand this and focus all their energy on

their service or customer experience. However, many companies do this at the cost of employee experience.
What does this mean? Is customer satisfaction not the priority?
It is! But it is important not to lose sight of people who deliver the end product or service to the customers –
the employees. These are the people that need a proper support system. Employee satisfaction is
paramount as this is what will determine the success or failure of a company. When employees are satisfied
and happy about working in an organization, the customer is the first person to notice that.
With employees getting thin-skinned every day, it depends completely on the employer to ensure they do
not have their top talent drained away by the new competitor on the block. In the current scenario, the
decision of hopping by the employee is triggered by the minutes of issues, such as being ticked off in a not
too friendly tone or even an uneasy office environment.
It becomes important to be aware and understand the signals that are given out by the employees. The
management will do well to catch them before it is too late and the employee makes the decision to quit.
This understanding gives the employers an edge and gives them the time to take corrective measures if
necessary, in order to prevent talent loss. It could be that the employee is not happy with the environment
or is suffering from a relationship issue with a colleague or a superior. These issues need to be handled
before they get out of hand.
How do employers understand their employees? How do they know what employees want? How do they
map their satisfaction levels? There are several ways of mapping employee satisfaction.
Surveys: This is a traditional method that involves employees’ participation. Employers create surveys that
have questions on the different parameters related to the organization. They put forth questions in such a
way that every aspect of an organization is touched and the feedback is returned in the form of an opinion
given by each employee. This helps employers understand how employees think and their satisfaction levels,
and paves the path for problem solving. These surveys can actually identify problem areas and help come up
with solutions to solve the problems. They reveal the employee attitude on the whole.
One-on-One Interviews: A non-conventional tool, this involves discussions with every employee on a one-to-
one basis every few months. Their thoughts are recorded and trouble parameters identified and taken care
of.
Exit Interviews: This comes into action after an employee submits his resignation papers. The problem with
exit interviews is that most employees, once they decide to leave, are not forthright. In an attempt to keep
good relations with the employer, they usually do not tell-all as they ought to. Many of them in fact give
personal reasons for leaving and make the employer feel that all is well on the work front.
Employers who fail at HR and see high attrition rate are those that consider monetary compensation as
highly important. In spite of the fact that employees work for money, emotional rewards go a long way at
keeping the employer-employee relation strong and have a larger impact on employee satisfaction. Tracing
and improving this satisfaction level has to be top priority for the HR department of an organization.
Employee satisfaction mapping can be the key to a better motivated and loyal workforce that leads to better
organizational output in the form of better products and services and results in overall improvement of an
organization.
If a person is not satisfied by the job he is doing, he may switch over to some other more suitable job. In

today’s environment it becomes very important for organizations to retain their employees. The reason may
be personal or professional. These reasons should be understood by the employer and should be taken care
of. The organizations are becoming aware of these reasons and adopting many strategies for employee
retention.
The basic needs other than routine tasks are to be taken care of on priority before it becomes late by HR
department.
2.3 THEORIE’S OF EMPLOYEE SATISFACTION
The company's ability to fulfill the physical, emotional, and psychological needs of its employees. Satisfying
the employee's all needs, so that he can give 100% to the company. Satisfaction refers to the level of
fulfillment on one's needs, desires, and wants. It can be experienced in various levels or degrees.
Vital ingredients for any employee’s satisfaction are physical, security, social and egoistic needs which
satisfy individual’s psycho social.
1. Physical and Security need: This relates to satisfaction of bodily function like hunger, thirst, shelter as
well as to be secure in the employment.
2. Social Need: Since human beings are dependent on each other. There are some needs which can be
satisfied only when individual is recognized by other people.
3. Egoistic Need: This relates to man desire to mans desire to be dependant to do things of his own end to
sense of accomplishment
To a considerable extent however physical needs are satisfied off the job. Social needs are satisfied through
personal contacts around the job where egoistic needs are chiefly satisfied through the job.
EQUITY THEORY:
Equity Theory attempts to explain relational satisfaction in terms of perceptions of fair/unfair distributions of
resources within interpersonal relationships. Equity theory is considered as one of the justice theories. It
was first developed in 1962 by John Stacey Adams, a workplace and behavioral psychologist, who asserted
that employees seek to maintain equity between the inputs that they bring to a job and the outcomes that
they receive from it against the perceived inputs and outcomes of others (Adams, 1965). The belief is that
people value fair treatment which causes them to be motivated to keep the fairness maintained within the
relationships of their co-workers and the organization. The structure of equity in the workplace is based on
the ratio of inputs to outcomes. Inputs are the contributions made by the employee for the organization;
this includes the work done by the employees and the behavior brought by the employee as well as their
skills and other useful experiences the employee may contribute for the good of the company.
The idea is to have the rewards (outcomes) be directly related with the quality and quantity of the
employees contributions (inputs). If both employees were perhaps rewarded the same, it would help the
workforce realize that the organization is fair, observant, and appreciative. This can be illustrated by the
following equation:
Inputs: Time, Effort, Loyalty, Hard Work, Commitment, Ability, Adaptability, Flexibility, Tolerance,
Determination, Enthusiasm, Personal sacrifice, Trust in superiors, Support from co-workers and colleagues,

and Skill
Outcomes: Outputs are defined as the positive and negative consequences that an individual perceives a
participant has incurred as a consequence of his/her relationship with another. When the ratio of inputs to
outcomes is close, than the employee should have much satisfaction with their job. Outputs can be both
tangible and intangible (Walster, Traupmann & Walster, 1978). Typical outcomes include any of the
following: Job security, Esteem, Salary, Employee benefit, Expenses, Recognition, Reputation,
Responsibility, Sense of achievement, Praise, Thanks, and Stimuli.
EXPECTANCY THEORY (VROOM’S THEORY):
Expectancy theory is about the mental processes regarding choice, or choosing. It explains the processes
that an individual undergoes to make choices. In organizational behaviour study, expectancy theory is a
motivation theory first proposed by Victor Vroom of the Yale School of Management.
Expectancy theory predicts that employees in an organization will be motivated when they believe that:
• putting in more effort will yield better job performance
• better job performance will lead to organizational rewards, such as an increase in salary or benefits
• These predicted organizational rewards are valued by the employee in question.
"This theory emphasizes the needs for organizations to relate rewards directly to performance and to ensure
that the rewards provided are those rewards deserved and wanted by the recipients."
Emphasizes self interest in the alignment of rewards with employee's wants. Emphasizes the connections
among expected behaviours, rewards and organizational goals
Vroom's theory assumes that behaviour results from conscious choices among alternatives whose purpose it
is to maximize pleasure and to minimize pain. Together with Edward Lawler and Lyman Porter, Vroom
suggested that the relationship between people's behaviour at work and their goals was not as simple as
was first imagined by other scientists. Vroom realized that an employee's performance is based on individual
factors such as personality, skills, knowledge, experience and abilities.
Victor H. Vroom introduces three variables within the expectancy theory which are valence (V), expectancy
(E) and instrumentality (I). The three elements are important behind choosing one element over another
because they are clearly defined: effort-performance expectancy (E>P expectancy), performance-outcome
expectancy (P>O expectancy).
E>P expectancy: Our assessment of the probability our efforts will lead to the required performance level.
P>O expectancy: Our assessment of the probability our successful performance will lead to certain
outcomes.
Vroom’s model is based on three concepts:
1. Valence - Strength of an individual’s preference for a particular outcome. For the valence to be
positive, the person must prefer attaining the outcome to not attaining it.
2. Instrumentality – Means of the first level outcome in obtaining the desired second level outcome; the
degree to which a first level outcome will lead to the second level outcome.
3. Expectancy - Probability or strength of belief that a particular action will lead to a particular first level
outcome.
Vroom says the product of these variables is the motivation.

In order to enhance the performance-outcome tie, managers should use systems that tie rewards very
closely to performance. Managers also need to ensure that the rewards provided are deserved and wanted
by the recipients. In order to improve the effort-performance tie, managers should engage in training to
improve their capabilities and improve their belief that added effort will in fact lead to better performance.
MASLOW'S HIERARCHY OF NEEDS:
Maslow's hierarchy of needs is a theory in psychology, proposed by Abraham Maslow in his 1943 paper A
Theory of Human Motivation. Maslow subsequently extended the idea to include his observations of humans'
innate curiosity.
Maslow’s hierarchy of needs is most often displayed as a pyramid. The lowest levels of the pyramid are
made up of the most basic needs, while the more complex needs are located at the top of the pyramid.
Needs at the bottom of the pyramid are basic physical requirements including the need for food, water,
sleep and warmth. Once these lower-level needs have been met, people can move on to the next level of
needs, which are for safety and security.
As people progress up the pyramid, needs become increasingly psychological and social. Soon, the need for
love, friendship and intimacy become important. Further up the pyramid, the need for personal esteem and
feelings of accomplishment take priority. Like Carl Rogers, Maslow emphasized the importance of self-
actualization, which is a process of growing and developing as a person to achieve individual potential.
Maslow believed that these needs are similar to instincts and play a major role in motivating behavior.
Physiological, security, social, and esteem needs are deficiency needs (also known as D-needs), meaning
that these needs arise due to deprivation. Satisfying these lower-level needs is important in order to avoid
unpleasant feelings or consequences.
Maslow termed the highest-level of the pyramid as growth need (also known as being needs or B-needs).
Growth needs do not stem from a lack of something, but rather from a desire to grow as a person.
There are five different levels in Maslow’s hierarchy of needs:
1. Physiological Needs: These include the most basic needs that are vital to survival, such as the need for
water, air, food and sleep. Maslow believed that these needs are the most basic and instinctive needs in the
hierarchy because all needs become secondary until these physiological needs are met.
2. Security Needs: These include needs for safety and security. Security needs are important for survival,
but they are not as demanding as the physiological needs. Examples of security needs include a desire for
steady employment, health insurance, safe neighborhoods and shelter from the environment.
3. Social Needs: These include needs for belonging, love and affection. Maslow considered these needs to
be less basic than physiological and security needs. Relationships such as friendships, romantic attachments
and families help fulfill this need for companionship and acceptance, as does involvement in social,
community or religious groups.
4. Esteem Needs: After the first three needs have been satisfied, esteem needs becomes increasingly
important. These include the need for things that reflect on self-esteem, personal worth, social recognition
and accomplishment.
5. Self-actualizing Needs: This is the highest level of Maslow’s hierarchy of needs. Self-actualizing people

are self-aware, concerned with personal growth, less concerned with the opinions of others and interested
fulfilling their potential.
TWO-FACTOR THEORY:
The two-factor theory (also known as Herzberg's motivation-hygiene theory) was developed by Frederick
Herzberg, a psychologist who found that job satisfaction and job dissatisfaction acted independently of each
other. The theory states that there are certain factors in the workplace that cause job satisfaction, while a
separate set of factors cause dissatisfaction.
The two-factor, or motivation-hygiene theory, developed from data collected by Herzberg from interviews
with a large number of engineers and accountants in the Pittsburgh area. From analyzing these interviews,
he found that job characteristics related to what an individual does — that is, to the nature of the work he
performs — apparently have the capacity to gratify such needs as achievement, competency, status,
personal worth, and self-realization, thus making him happy and satisfied. However, the absence of such
gratifying job characteristics does not appear to lead to unhappiness and dissatisfaction. Instead,
dissatisfaction results from unfavorable assessments of such job-related factors as company policies,
supervision, technical problems, salary, interpersonal relations on the job, and working conditions. Thus, if
management wishes to increase satisfaction on the job, it should be concerned with the nature of the work
itself — the opportunities it presents for gaining status, assuming responsibility, and for achieving self-
realization. If, on the other hand, management wishes to reduce dissatisfaction, then it must focus on the
job environment — policies, procedures, supervision, and working conditions. If management is equally
concerned with both then managers must give attention to both sets of job factors. Thus, satisfaction and
dissatisfaction are not on a continuum with one increasing as the other diminishes, but are independent
phenomena. This theory suggests that to improve job attitudes and productivity, administrators must
recognize and attend to both sets of characteristics and not assume that an increase in satisfaction leads to
decrease in un-pleasurable dissatisfaction.
Two-factor theory distinguishes between:
• Motivators (e.g. challenging work, recognition, responsibility) which give positive satisfaction, arising
from intrinsic conditions of the job itself, such as recognition, achievement, or personal growth, and
• Hygiene factors (e.g. status, job security, salary and fringe benefits) which do not give positive
satisfaction, although dissatisfaction results from their absence. These are extrinsic to the work itself, and
include aspects such as company policies, supervisory practices, or wages/salary.
Essentially, hygiene factors are needed to ensure an employee is not dissatisfied. Motivation factors are
needed in order to motivate an employee to higher performance, Herzberg also further classified our actions
and how and why we do them, for example, if you perform a work related action because you have to then
that is classed as movement, but if you perform a work related action because you want to then that is
classed as motivation.
The following table presents the top six factors causing dissatisfaction and the top six factors causing
satisfaction, listed in the order of higher to lower importance.
Leading to satisfaction
• Achievement

• Recognition
• Work itself
• Responsibility
• Advancement
• Growth Leading to dissatisfaction
• Company policy
• Supervision
• Relationship with boss
• Work conditions
• Salary
• Relationship with peers
• Security
Herzberg reasoned that because the factors causing satisfaction are different from those causing
dissatisfaction, the two feelings cannot simply be treated as opposites of one another. The opposite of
satisfaction is not dissatisfaction, but rather, no satisfaction. Similarly, the opposite of dissatisfaction is no
dissatisfaction.
2.4 DETERMINANTS OF EMPLOYEE SATISFACTION
Employee satisfaction is a multi-variable and indescribable concept. There are number of factors that
influence employee satisfaction. These factors can be classified into two categories.
A) Organizational Variables:
The organizational determinants of employee satisfaction play a very important role. The employees spend
major part of their time in organization so there are number of organizational factors that determine
employee satisfaction of the employees. The employee satisfaction in the organizations can be increased by
organizing and managing the organizational factors.
1) Overall Individual satisfaction: Employees be should satisfy with the organization as a great place to
work.
2) Compensation and Benefits: This is the most important variable for employee satisfaction. Compensation
can be described as the amount of reward that a worker expects from the job. Employees should be
provided with competitive salary packages and they should be satisfied with it when comparing their pay
packets with those of the outsiders who are working in the same industry. A feeling of employee satisfaction
is felt by attaining fair and equitable rewards.
3) Nature of Work: The nature of work has significant impact on the employee satisfaction. Employee
satisfaction is highly influenced by the nature of work. Employees are satisfied with job that involves
intelligence, skills, abilities, challenges and scope for greater freedom. Job dissatisfaction arises with a
feeling of boredom, poor variety of tasks, frustrations and failures.
4) Work Environment and Conditions: Employees are highly motivated with good working conditions as they
provide a feeling of safety, comfort and motivation. On contrary, poor working conditions brings out a fear

of bad health in employees. Employees spend 6 to 8 hours at their workplace every day which makes a
workplace their second home. It is up to the employers to see and make sure that the office is fully
facilitated and is in good working order. It must be well lit and well ventilated with the right amount of
lights, fans, air-conditioning. Cleanliness is of utmost importance as there are a huge number of workers
working at a job place. The offices, cubicles, rest area, washrooms, kitchen & serving area must be neat and
clean. The more comfortable the working environment is more productive will be the employees.
5) Job Content: Factors like recognition, responsibility, advancement, achievement etc can be referred to as
job content. A job that involves variety of tasks and less monotonous results delivers greater employee
satisfaction. A job that involves poor content produces job dissatisfaction.
6) Job Satisfaction: Job satisfaction is the favorableness or un-favorableness with which employees view
their work. As with motivation, it is affected by the environment. Job satisfaction is impacted by job design.
Jobs that are rich in positive behavioral elements – such as autonomy, task identity, task significance and
feedback contribute to employee’s satisfaction. Likewise, orientation is important because the employee’s
acceptance by the work group contributes to satisfaction. Each element of the environmental system, can
attract or detract from job satisfaction.
7) Organizational Level: The jobs that are at higher levels are viewed as prestigious, esteemed and
opportunity for self-control. The employees that are working at higher level jobs express greater employee
satisfaction than the ones working at lower level jobs.
8) Opportunities for Promotion: Promotion can be reciprocated as a significant achievement in the life. It
promises and delivers more pay, responsibility, authority, independence and status. So, the opportunities for
promotion determine the degree of satisfaction to the employees.
9) Work Group: There is a natural desire of human beings to interact with others and so existence of groups
in organizations is a common observable fact. This characteristic results in formation of work groups at the
work place. Isolated workers dislike their jobs. The work groups make use of a remarkable influence on the
satisfaction of employees. The satisfaction of an individual is dependent on largely on the relationship with
the group members, group dynamics, group cohesiveness and his own need for affiliation.
10) Leadership Styles: The satisfaction level on the job can be determined by the leadership styles.
Employee satisfaction is greatly enhanced by democratic style of leadership. It is because democratic
leaders promote friendship, respect and warmth relationships among the employees. On contrary,
employees working under authoritarian and dictatorial leaders express low level of employee satisfaction.
11) Communication Methods: When administrative policies and all important announcements are
communicated to the employees, it boosts their morale. The methods chosen for communication also play
an integral role. Some of the methods that could be used are intranet, monthly newsletters, weekly
meetings etc...
12) Safety measures: An employer must make sure that he provides a safe environment to his/her
employee. The security measures outside office include security guards and parking facility. While inside the

office, there must be introduced a safe environment for male and female employees to work so that if an
employee has to work late hours she/he should feel safe and comfortable working in his/her office. There
must be no discrimination or harassment practiced and the employee should be given equal opportunity to
grow as an individual despite being male or female.
B) Personal Variables:
The personal determinants also help a lot in maintaining the motivation and personal factors of the
employees to work effectively and efficiently. Employee satisfaction can be related to psychological factors
and so numbers of personal factors determine the employee satisfaction of the employees.
1) Personality: The personality of an individual can be determined by observing his individual psychological
conditions. The factors that determine the satisfaction of individuals and his psychological conditions is
perception, attitudes and learning.
2) Age: Age can be described as a noteworthy determinant of employee satisfaction. It is because younger
age employees possessing higher energy levels are likely to be having more employee satisfaction. In older
age, the aspiration levels in employees increase. They feel completely dissatisfied in a state where they are
unable to find their aspiration fulfilled.
3) Education: Education plays a significant determinant of employee satisfaction as it provides an
opportunity for developing one’s personality. Education develops and improvises individual wisdom and
evaluation process. The highly educated employees can understand the situation and asses it positively as
they possess persistence, rationality and thinking power.
4) Gender Differences: The gender and race of the employees plays important determinants of Employee
satisfaction. Women, the fairer sex, are more likely to be satisfied than their male counterpart even if they
are employed in small jobs. The employee satisfaction can also be determined by other factors like learning,
skill autonomy, job characteristics, unbiased attitude of management, social status etc. It is important for
managers to consider all these factors in assessing the satisfaction of the employees and increasing their
level of employee satisfaction.
2.5 HOW EMPLOYEES CAN EXPRESS THEIR DISSATISFACTION?
Top Triggers of Employee Dissatisfaction:
• Ambiguity in role and responsibilities
• Responsibility without accountability. If one has responsibility but no power to take decisions or
accountability one gets de-motivated as one cannot show results or move things forward.
• Sometimes employees set too high unrealistic standards/ expectations for themselves and that too
sometimes lead to against within them. In this case if they do not have a good mentor, it may lead to a lot
of stress and pressure as inability to achieve unrealistic goals may be due to circumstances beyond their
control.
• Lack of professionalism, lack of systems and processes also leads to employee angst.
• Biased approach/favoritisms/discrimination at work
• Lack of challenge in the work/lack of opportunities to move up the career ladder
The employees sent out some signals to express their discontent and the organization should not take it

lightly.
1) Excessive absenteeism: When a regular employee suddenly begins to take leave or is late to work, it
could indicate either his personal problems or job dissatisfaction.
2) Lack of interest: When an employee who stays at work until his job is done, now begins to leave at sharp
5 pm no matter his job is done or not.
3) Lack of quality and quantity in work: When an employee is dissatisfied in his job then automatically his
mental state is reflected in his quality of his work.
4) Complaints by employee: Many complaints are put forward by the employee regarding salary, benefits,
working hours, working conditions etc.
5) Off the job work: Misusing the company facility for his personal use during working hours.
6) Misbehavior: An employee may express anger, frequent argument with association and team member,
which come out due to frustration.
Effects of Dissatisfaction:
Recognizing the dissatisfaction is only half the battle. The company should consider the reason for the
burnout and should try to solve those problems because it will affect other employees also. Otherwise it will
affect the company in many ways like
* Low productivity
* High employee turnover cost
* Poor employee morale
2.6 WHY IS EMPLOYEE SATISFACTION IMPORTANT?
Purpose / benefits of employee satisfaction include as follows:
1. Importance of employee satisfaction for organization
• Enhance employee retention.
• Increase productivity.
• Increase customer satisfaction
• Reduce turnover, recruiting, and training costs.
• Enhance customer satisfaction and loyalty.
• More energetic employees.
• Improve teamwork.
• Higher quality products and/or services due to more competent, energized employees.
2. Importance of employee satisfaction for employee
• Employee will believe that the organization will be satisfying in the long run.
• They will care about the quality of their work.
• They will create and deliver superior value to the customer.
• They are more committed to the organization.
• Their works are more productive.
Outcome of Employee Satisfaction:
a. Satisfaction and Productivity: Satisfied employees are not necessarily more productive. Employee
productivity is higher in organization with more satisfied employees.

b. Satisfaction and Absenteeism: Satisfied employees have few avoidable absenteeism.
c. Satisfaction and Turnover: Satisfied employees are less likely to quit. Organization takes actions to
retain high performers and to weed out lower performers.
d. Satisfaction and Organization Behavior: Satisfied employees who feel fairly treated by and are trusting
of the organization are more willing to engage in behaviors that go beyond the normal expectation of their
job.
e. Satisfied employee increase Customer Satisfaction: Because they are more friendly, upbeat and
responsive. They are less likely to turnover which helps build long-term customer relationship. They are
experienced.
2.7 THE BEST HR PRACTICES THAT SUCCESSFUL COMPANIES PRACTICE
Why are employees in some companies happy to stick with the company while others look for a change? The
reason is that some companies know how to take good care of their employees and provide a working
environment that helps them retain their identity, while proving themselves and growing along with the
company.
How Managers Attract, Hire, Focus, And Keep Their Most Talented Employees?
Without satisfying an employee's basic needs first, a manager can never expect the employee to give stellar
performance. The basic needs are knowing what is expected of the employee at work, giving him the
equipment and support to do his work right, and answering him basic questions of self-worth and self-
esteem by giving praise for good work and caring about his development as a person.
The great manager mantra is don't try to put in what was left out; instead draw out what was left in. You
must hire for talent, and hone that talent into outstanding performance.
1. Know what can be taught, and what requires a natural talent.
2. Set the right outcomes, not steps. Standardize the end but not the means. As long as the means are
within the company's legal boundaries and industry standards, let the employee use his own style to deliver
the result or outcome you want.
3. Motivate by focusing on strengths, not weaknesses.
4. Casting is important, if an employee is not performing at excellence, maybe he is not cast in the right
role.
5. Every role is noble, respect it enough to hire for talent to match.
6. A manager must excel in the art of the interview. See if the candidate's recurring patterns of behavior
match the role he is to fulfill. Ask open-ended questions and let him talk. Listen for specifics.
7. Find ways to measure, count, and reward outcomes.
8. Spend time with your best people. Give constant feedback. If you can't spend an hour every quarter
talking to an employee, then you shouldn't be a manager.
9. There are many ways of alleviating a problem or non-talent. Devise a support system; find a
complementary partner for him, or an alternative role.
10. Do not promote someone until he reaches his level of incompetence; simply offer bigger rewards
within the same range of his work.
11. Some homework to do: Study the best managers in the company and revise training to incorporate

what they know. Send your talented people to learn new skills or knowledge. Change recruiting practices to
hire for talent, revise employee job descriptions and qualifications.
Here are some of the best HR practices that help in the creation of a highly satisfied and motivated work
force.
Work Environment
A safe and happy workplace makes the employees feel good about being there. Each one is given
importance and provided the security that gives them the motivation and incentive to stay. This is usually
achieved through internal surveys to find out whether they are satisfied and if not what they think needs to
be changed.
Open Management
Employees don’t like the feeling of being kept in the dark about what is happening in the company. They feel
motivated and develop enthusiasm only when the management opens up to them and discusses the
company policies, sales, clients, contracts, goals and objectives. This encourages participative management.
Asking them for ideas on how to improve will get their creative juices flowing. Being open about everything
related to the company will help in building trust and motivating the employees. This open management
policy can be practiced using several tools.
Performance Incentives
Every good performance is appreciated in the form of a pat on the back, bonuses or giving some other
compensation for a job well done. Organizations that struggle to keep up with the attrition rate are mostly
those that think employees are “just” doing their job. Even if it is the employee’s job, completion in an
appreciable manner calls for an incentive, and this goes a long way in boosting the staff morale. These
incentives can be implemented at the individual as well as the team level and it has been seen that this
works wonders in getting the best out of the employees. But it is important to keep in mind that these
bonuses should not be given without a reason, unless it is a commitment for annual bonuses or some such
thing. Doing so will only reduce the perceived value of the bonuses.
Performance Feedback
This is one the methods that is being followed by many organizations. Feedback is not only taken from the
boss, but also from other seniors and subordinates. Previously, appreciation was only sought from the
immediate boss or the management, but now organizations understand the importance of collecting
performance feedback from several quarters. The opinion of everyone matters, especially for someone who
is in a leadership role at any level. Each person in the team is responsible for giving constructive feedback.
This kind of system helps in identifying people who can perform well as leaders at higher levels in the
organization. Even the senior level managers can use this system to their advantage, as a tool to improve
themselves.
Employee Evaluation
Every company has an employee evaluation system in place but a good system links individual performance
to the goals and priorities of the organization. This works well when achievements are tracked over a year.
For a fair review of each employee, the evaluation, apart from being done by the boss, should be done by
another person at a higher level, for whom the employee’s contribution is important. Ratings can also be

obtained by other employees. This ensures a fair and accurate rating of each and every employee.
Sharing of Knowledge
Knowledge sharing is a wonderful strategy that helps in the betterment of the employees and their work.
Keep all the knowledgeable information in central databases that can be accessed by each and every
employee. For example, if an employee is sent on some training, the knowledge that is acquired by that
employee can be stored in these databases for others to learn from it. Even innovative ideas that the
management deems fit for employees to see, can be stored here for all to see.
Publicize Good Performances
Every company has some employees who outperform others. Such performances should be highlighted and
displayed where other employees can look at them; such as on the display boards and intranet etc. This will
encourage others to give their best. A proper system should be set up to make a list of high performances at
specific times in a year.
Discussions
Successful organizations nurture ideas and they understand that employees who are actually working and
know the business can provide the best ideas. The management should have discussions with employees to
get these ideas out of them. There can also be suggestion boxes to capture these ideas. Through this
system, managers can find talented employees and develop them.
Rewards
While recognition of talent is highly important, this recognition has to be made public and what better way
than holding ceremonies and announcing to the whole world (the employees), the achievements of a fellow
employee. There can be nothing better for an employee than the heady feeling from a resounding applause.
The Surprise Factor
Who doesn’t like a surprise? Surprise deserving employees – when they are least expecting it. It could be a
gift certificate or a small reward of some sort. This surprise doesn’t have to be limited to the best
performers, but it can be randomly given to others as a motivating factor too. Anyone can be given this
surprise reward.
Such healthy HR practices encourage the growth of the organization as employees after all play a major role
in the well-being of a company. Making an employee feel like a million dollars pays in the form of the
success of an organization.

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