A PROJECT REPORT

ON

Non- Monetary Satisfaction Survey Among Employees at

Bajaj Allianz General Insurance Co.

Prepared in partial fulfillment of the degree ofMaster of Business Administration (M.B.A)

Submitted By:DIVYA RAWALMBA 3rd Sem (7557)

Under the Supervision ofProject Coordinator:Mrs. Charu Mohla

MAHARAJA AGARSEN INSTITUTE OF TECHNOLOGYGuru Gobind Singh Indraprastha UniversityPSP Area, Sector-22 Rohini, Delhi—110085 Ph: 25489493-94

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DECLARATION

I, hereby declare that the present dissertation entitled “Non Monetary Satisfaction Survey at Bajaj Allianz General Insurance Co. ” has been done by me. This is the original work and is the result of my own efforts.

Divya Rawal

Roll No. 7557/MBA

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CERTIFICATE

This is to certify that the project entitled “Non-Monetary Satisfaction Survey at Bajaj Allianz General Insurance Co.” submitted by Ms. Divya Rawal Enrollment No. 751483906 has been done under my guidance and supervision in fulfillment of the requirement for the award of Master of Business Administration.

The work and analysis mentioned in this Project Report have been undertaken by the candidate herself and necessary references have been recognized and acknowledged in the text of this report.

Ms. CharuProject Guide

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ACKNOWLEDGEMENT

Throughout our whole life we experience various kinds of beautiful experiences; this project has been the same for me. It would not have been the same without the valuable contribution of the various people who helped me to come with the project.

First of all I would like to express my sincere gratitude and thanks to the director of my college Dr. N.K. Kakkar and my Internal Project Guide Mrs. Charu Mohla and mentor Mr. Kapil Bajaj for guiding me throughout this project and for giving me his valuable and important advices and support to mould my project in the right direction.

I am thankful to Mrs Malvika Mahajan, BAJAJ ALLIANZ GENERAL INSURANCE company, who gave me an opportunity to work with the organization and gave his support throughout my project.

Also, I would like to express my sincere gratitude and thanks to Ms. Kavaldeep Kaur , Mr. Nitin Gupta and other employees of Bajaj Allianz General Insurance Company for their constant guidance and help.

DIVYA RAWALSUMMER TRAINEEMAHARAJA AGARSEN INTITUTE OF TECHNILOGY.

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TABLE OF CONTENT

DeclarationCertificateAcknowledgement

Chapter 1 : Introduction1.1 : Objectives

Chapter 2 : RESEARCH METHODOLOGY2.1 : Need for the Study2.2 : Research Design

Chapter 3 : COMPANY PROFILE 3.1 : Introduction 3.2 : Business associates 3.3 : Other similar business 3.4 : Corporate vision 3.5 : Corporate mission 3.6 : Product rang 3.7 : Achievements

Chapter 4 : LITERATURE REVIEW4.1 : Motivation4.2 : Employee Satisfaction4.3 : Morale4.4 : Employee Engagement4.5 : Compensation

Chapter 5 : FINDINGS

Chapter 6 : RESULT ANALYSIS

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Chapter 7 : CONCLUSION

Chapter 8 : SUGGESTIONS

Chapter 9 : Limitations

Chapter 10 : Bibliography

Annexure

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Chapter 1

INTRODUCTION

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OBJECTIVES

To understand relevance of Benefits in the organization. To study level of Employee’s satisfaction in Bajaj Allianz. To analyze how various Benefits motivates the employees in

Bajaj Allianz To study the Strategies for success of Bajaj Allianz.

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CHAPTER- 2

RESEARCH METHODOLOGY

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Employee benefits are considered as the vital source for providing security, social welfare. It is a motivational tool as well as the satisfaction measure for the employee for any organization. As a result, it leads to improved productivity and efficiency of the employees. As, incentives are the important tool for motivating the employees it helps in retaining man power of the company.

Survey is done with the help of a questionnaire and discussion is done with the employees to know their problems.

The questionnaire is prepared to know the satisfaction level in terms of motivation of the Sr. Executives of Bajaj Allianz.

The survey was done for the Sr. Executives of Bajaj Allianz taking a sample size of 50 Executives.

The project was done with Bajaj Allianz in the field of Human Resource Management titled:

“SATISFACTION SURVEY AMONG BAJAJ ALLIANZ EXECUTIVES ON NON- MONETARY BENEFITS GIVEN TO THEM AS PART OF MOTIVATION”

2.1 NEED FOR THE STUDY

In the today world of industrialization the employees are seeking for the facilities that are required for the smooth running of life. Today the manager is also responsible for the health and other welfare schemes in the work place. The HR department is the only department that is indulging in these types of activities of motivation.

These types of benefits are mainly non cash facilities. It is not necessary that there is always a non cash facility. There are many employee benefits that are add to the good of the employees.

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The first step in employee benefit plan design is to determine who the employer intends to benefit and why. The scope of coverage and the employees who are to be covered by the plan will be the first limiting factor in the number of alternatives available because of the nondiscrimination rules in the Code. For example, if the plan is to cover a select group of executives, it may not be possible to provide the benefit on a tax-favored basis. On the other hand, if the plan is to be a broad-based plan covering executives and rank-and-file employees, then many alternatives are available on a tax-favored basis.

Determining the scope of coverage in the proposed employee welfare benefit plans also involves identifying which employees must be covered. The nondiscrimination rules applicable to each type of welfare plan typically require coverage of a sufficient number of no highly compensated employees versus highly compensated employees. If the employer is a member of a controlled group or an affiliated service group, these rules also require that the employees of all members of the group be taken into account when testing for nondiscrimination. Leased employees must also be taken into account. Therefore, a complete and accurate census must be prepared when determining who to benefit and will also be key in the following steps for plan design.

2.2 RESEARCH DESIGN

The design used for the study was both descriptive and exploratory in nature. It was exploratory as the opinion of respondent was sought through questionnaire and analyzed. It was descriptive as the help of concerned literature on the subject was taken.

2.21 SOURCE OF INFORMATION

Data was collected from both primary and secondary sources. The primary source included the respondent from whom the required information was gathered directly and emphasis was laid on their opinion. Secondary source are profile of BAJAJ Allianz Co., personnel manual of Company and concerned literature.

The tools of data collection as follows:

(a) Discussion

(b) Questionnaire

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Discussion:

Under this method of collecting data the investigator personally comes in contact with the persons from whom the information is to obtain certain critically element can be discussed. The person who wants the information, raises concerned topics and follows the other person to freely express his or her views. Sometimes the information that cannot be collected through discussion can be collected through questionnaire and the opinion of the respondent can be made clearer.

Questionnaire:

It is usually associated with self-administrative tool with items of closed or fixed alternative type. The respondent feels confidence in anonymity of questionnaire than with that of interviewer. It places less pressure on subject for immediate response. This was the reason to choose questionnaire and one of the tools for data collection. The questionnaire consisted of multiple choice questions, open-ended questions, multiple-choice open-ended questions written with answers space provided for response.

2.22 SAMPLE SIZE:

The method of sampling used was systematic sampling. This method is popularly used in those cases where a complete list of the population, from which the sample is to be drawn, is available.

The study of employees of Bajaj Allianz General Insurance Company, Pitam Pura was carried out from different departments. 40 employees (Executives E1-E7) were selected on random basis.

2.23 SCOPE:

The scope of the project is wide and the study is confined to the Welfare Schemes in Bajaj Allianz Gen. Insurance Co. located at Pitam Pura.

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CHAPTER 3

COMPANY PROFILE

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AN OVERVIEW

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Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Auto Limited and Allianz AG of Germany. Both enjoy a reputation of expertise, stability and strength.

Bajaj Allianz General Insurance received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration (R3) on May 2nd, 2001 to conduct General Insurance business (including Health Insurance business) in India. The Company has an authorized and paid up capital of Rs 147 crores. Bajaj Auto holds 74% and the remaining 26% is held by Allianz, AG, Germany.

In its first year of operations, the company has acquired the No. 1 status among the private non-life insurers. As on 31st March 2006 Bajaj Allianz General Insurance maintained its leadership position by garnering the premium income of Rs.1285 crore. Bajaj Allianz has made a profit after tax of Rs.52 crores.

Bajaj Allianz today has a network presence in over 100 towns spread across the length and breadth of the country. From Surat to Siliguri and Jammu to Thiruvananthapuram, all the offices are interconnected with the Head Office at Pune.

In the first half of the current financial year, 2006-07, Bajaj Allianz garnered a premium income of Rs. 842 crores, achieving a growth of 35% and Net profits rose to Rs.27 Crores.

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BUSINESS ASSOCIATES

Bajaj Auto Limited

Bajaj Auto Limited is the largest manufacturer of two and three-wheelers in India and also one of the largest manufacturers in the world. Bajaj Auto has been in operation for over 55 years. As a promoter of Bajaj Allianz General Insurance Company Ltd., Bajaj Auto has the following to offer: • Vast distribution network.  • Knowledge of Indian consumers.  • Financial strength and stability to support the insurance business.  • Visit Bajaj Auto's Website www.bajajauto.com

Allianz AG, Germany

Allianz AG is in the business of General (Property & Casualty) Insurance; Life & Health Insurance and Asset Management and has been in operation for over 110 years. Allianz is one of the largest global composite insurers with operations in over 70 countries. Further, the Group provides Risk Management and Loss Prevention Services. Allianz has insured most of the world's largest infrastructure projects (including Hongkong Airport and Channel Tunnel between UK and France), further Allianz insures the majority of the fortune 500 companies, besides being a large industrial insurer, Allianz has a substantial portfolio in the commercial and personal lines sector, using a wide variety of innovative distribution channels.

Allianz AG has the following to offer Bajaj Allianz General Insurance Company Ltd. :

 • Set up and running of General insurance operations  • New and improved international products  • One of the world's leading insurance companies   • More than 700 subsidiaries and 2 lac employees in over 70 countries worldwide • Provides insurance to almost half the Fortune 500 companies • Technology

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Other similar businesses

The promoters have also incorporated a Life insurance Company in India, called Bajaj Allianz Life Insurance Company Limited to provide life insurance solutions.

VISION, MISSION, VALUES AND LEADERSHIP STYLE OF BAJAJ ALLIANZ CO.

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VISION

 • To be the first choice insurer for customers  • To be the preferred employer for staff in the insurance industry.  • To be the number one insurer for creating shareholder value

MissionAs a responsible, customer focused market leader, we will strive to understand the insurance needs of the consumers and translate it into affordable products that deliver value for money.

Values

Meeting commitments made to external and internal customers.

Foster Learning, Creativity and Speed of Response. Respect for Dignity and potential of individuals. Loyalty and pride in the company. Team playing. Zeal to Excel. Integrity and Fairness in all matters.

Leadership Style

To faster and sustain organized values.

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Empowering with responsibilities and accountability at all levels.

Visionary. Courage, Credibility, Compassion and Visibility. Timely recognition, feedback and counseling. Communication, information sharing and consultations. To be role model.

A Partnership Based on Synergy

Bajaj Allianz General Insurance Company offers technical excellence in all areas of General and Health Insurance as well as Risk Management. This partnership successfully combines Bajaj Auto's in-depth understanding of the local market and extensive distribution network with the global experience and technical expertise of the Allianz Group. As a registered Indian Insurance Company and a capital base of Rs. 147 crores, the company is

Fully licensed to underwrite all lines of general insurance business including health

OBJECTIVES AND POLICIES

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To maintain a leading position as supplier of systems, equipments and services to National / International standards and to attain a high level of customer confidence.

Design, procurement, supply and execution of systems and equipments for Transmission Projects to meet requirements of customers stated as well as implied, statutory aspects and National / International standards.

To acquaint customers on operation and maintenance of the equipment and systems.

Identification of new areas of business in which BAJAJ ALLIANZ CO. may enter.

FUNCTIONS

Give suggestions to various departments whether to enter in collaboration or not.

Arrangement of various Customer Appreciation Programmes.

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Chapter 4

LITERATURE REVIEW

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4.1 MOTIVATION

According to Kreitner Robert (1999:384)

“ The term motivation derives from the Latin movere, “move”. It is virtually impossible to determine a person’s motivation until that person behaves or literally moves. By observing what someone says or does in a given situation, one can draw reasonable inferences about the person’s underlying motivation.”

Mitchell (1982) aptly defines motivation as “the degree to which an individual wants to chooses to engage in certain specified behavior”

Cowling and Mailer (1998) have defined motivation as: ” Motivation is a psychological concept related to strength and direction of human behavior. Motivation is explained as a force within individuals, which lead them to achieve certain goals in order to fulfill their needs or expectations.”

Bennett (1997) also suggests that motivation is a force that influences on employee to work so as to achieve certain aims and benefits.

Bennett (1997:102) comments:

'An employee's motivation to work consists of all the drives, force and influences - conscious or unconscious -that cause the employee to want to achieve certain aims and benefits.

“Motivation is some kind of drive or impulse that causes one to act in a certain way.” Webster’s New World Dictionary (1998).

Motivation can be defined as that which energizes, directs, and sustains human behavior. In HRM, the term refers to a person's desire to do the best possible job or to exert the maximum effort to perform assigned tasks. An important feature of motivation is that it is behavior directed toward a goal.

Motivation of employees at all levels is the most critical function of management. In the hospitality sector in particular employee productivity is a critical factor and thus motivation of employees becomes a major function of HRM in the hospitality sector.

Motivation plays a major role in achieving high performance in the workplace, which is an important goal of management. However, just because an employee is motivated does not guarantee she will perform satisfactorily. Therefore, changing the performance of workers is rather more complicated than just “motivating” them. (Hunt J W, 2001:82)

Managers are challenged to understand employee needs and to assign work and workplaces so that employees will engage in behaviors that meet their needs, while at the same time achieving organizational goals.

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Figure: Formula for effective performance

TYPES OF MOTIVATION

Motivation theory seeks motivation that it is behaviour directed toward a goal. Motivation theory seeks to explain why employees are more motivated by and satisfied with one type of work than another.Robert Wood (1996) has defined motives in three different categories:

Physiological

Socio-physiological

General.

Physiological motives

Physiological motives are variously called primary motives. The living system has motives for some physical satisfaction, a lack of which over a longer period proves to be extremely damaging. The individual requires oxygen, food, and water; something to preserve body temperature, which indirectly points to clothing and shelter; but these by themselves do not form a motive. These physiological motives may be divided into specific categories. There are two features of these motives: (1) they are universal, is they exist in all human beings irrespective of their divergent social cultural and physical settings; and (2) the behavior patterns related to these motives are largely unlearned or innate. These behavior patterns appear' either immediately after birth or at different periods of life following upon maturation of the neuro-physiological mechanism, for instance, the reproductive behavioral pattern.

Socio-Psychological Motives:

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Ability

Direction

Motivation

Support

Effective Performanc

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Socio-psychological motives may not be as immediate or physical, yet they influence behavior at an early stage. An individual is not merely a food seeking living system. He/she desires and actively strives for association, for belonging to various individuals and groups. These motives are neither inborn to him nor are they related directly to his survival. These motives originate from the training which he acquires from different social organizations -to which he belongs (i.e. I the family, club, etc.) Socio-psychological motives, unlike physiological motives, are largely learnt and accordingly vary from culture to culture. They may be divided into affective and egoistic motives. Both are related to people. Affiliative motives deal with belongingness, friendship or affection with .people. Egoistic motives relate to a position over people rather than with people. Power, status, prestige or esteem fall under egoistic motives. Socio-psychological motives include, acquisitiveness, security, status, autonomy, affiliation, achievement, dependence, aggression, power and nurturance.

General Motives:

There is an intermediate category of motives between the physiological and the socio-psychological. The motives in this category are unlearned but not physiological based. They are placed in a general category. In this category may fall all other motives which cannot be classified as physiological and socio-psychological including competence, manipulation, ~ activity and curiosity.

Employee satisfaction is therefore a result of different motives. These motives enhance the productivity of the employees.

TYPES OF NEEDS

According to Newstorm and Davis (1995), there are two types of human needs:

i) Primary Needs: Which are also known as physical needs. These needs include food, water, sex, shelter, air and a comfortable atmosphere. These are the basic needs of human beings and remain from person to person.

ii) Secondary needs: Which are also known as social and physiological needs. These needs include self-esteem, assertion, competition, sense of duty, status, security, etc. These needs change from employee to employee and often create complications for managers while applying motivational efforts for employees.

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As supporting their views Newstorm and Davis (1995:126) say: Management planning should consider the effect of any proposed action on the secondary needs of employees.

THEORIES OF MOTIVATION

A.H. MASLOW'S APPROACH:

According to Maslow's theory individuals are motivated by five levels of need, when individual has been satisfied by first level of need then he moves to second level of need so as to satisfy himself and then further on.

The five levels of need are:

i) Physiological need -It includes basic needs such as food, shelter, clothing, heat and light.

ii) Security -Maslow argued, once physiological needs have been met the individual will seek security at home, tenure at work and protection against reduced living standards.

iii) Social -'Most people desire affection, they want to belong to a community, and to feel wanted.' (Bennett 1997: 107)

People create social, religious, cultural, sporting and recreational groups and at work they create activity, groups and communication systems.

iv) Esteem: It includes needs for recognition, authority and influence over others. This could be met by having high-ranking jobs, together with the provision of status symbols.

v) Self -actualization: According to Maslow, this is the highest level of need as to concerns activity and hunt for personal fulfillment. Few people over reach this final stage.

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Maslow's Theory:

Maslow's hierarchical concept of human needs is based on the, view of prepotency of needs. These needs include the physiological needs, safety needs, love, esteem and the need for self-actualization. After the satisfaction of physiological needs, the need for safety tends to motivate human behaviour. This need refers to freedom from fears of external threats including criminal, attacks and climate distress, protection, comfort, peace and orderly and neat surroundings. The need for love involves the acceptance, group participation and desire for affectionate relationships among family members and other associates. It propels the individuals to belong to warm, supportive associations of other persons. Then comes the need for esteem (i. e recognition and prestige, confidence and leadership, achievement and ability, etc.) which refers to the wish of an individual for a high valuation of his personal worth. This need reveals itself in two manners: (I) an individual requires self-knowledge of competence in certain aspects of accomplishments, and (2) he requires the recognition or approval of these accomplishments by other persons.

Finally, the self-actualization need refers to realization of individual's intrinsic potentials. This need can be regarded as the desire to become more and. more what one is, to become everything which one is capable of becoming, to do things purely for the challenge of accomplishment, intellectual curiosity and fulfillment, and creativity and aesthetic appreciation.

There are many other features of Maslow's theory, which deserve attention: (I) this hierarchy relates to the motivational scale of normal, healthy individuals belonging to a highly advanced society. This society ensures satisfaction of ~ physiological and safety needs. (2) From the standpoint of what actually motivates human behaviour it can be asserted that a satiated need is no longer a motivator. (3) In advance society, the physiological and safety needs do not form motivators for most normal adults. It is only in underdeveloped regions that these needs dominate human behaviour. In advance regions, these needs motivate only a small segment of population which is either abnormally deprived or, has not experienced warm affiliate relationships and the esteem of others. The theory asserts that it is perhaps only the search for higher level needs, which form the motivating factor for a normal adult individual.

In the light of above facts, the author is of opinion that, motivation is needed at all levels and pay forms a unique, incentive, which is one of the major driving force for the people at all levels.

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APPLICATIONS OF MOTIVATION THEORIES TO THE WORK PLACE:

Mangers can learn from the different theories and approaches to motivation. If a hospitality manager can identify different motivating factors within staff, this is likely to lead to improved attitudes at work, lower turnover and improved customer relations. The manager can judge the relevance of the different theories, how best to draw upon them and how they might successfully be applied in particular work situations. This is part of being an effective manager. (Laurie J Mullins 1995:250)

i) Performance -Related Pay -It is often used to related performance of employees to pay. It is a part of performance management system, in which performance of employees is evaluated and pay awards are given. Bernandin and Beauty (1987; off et al., 1990) suggested the use of 360° appraisals an employee's performance is appraised by lot of people including customer, colleagues, supervisors and people below him or her in the organization's hierarchy.

ii) Job Complexity: Turner and Lawrence (1965) pioneered work into the effect that different types of jobs would have on employee satisfaction and absenteeism. The research by them help to know that many employees prefer more complexes and challenging jobs. There are some characteristics, which define job complexity as:

Variety

Autonomy

Responsibility

Knowledge and Skill .Social interaction.

As Ellis & Dick (2000:54) says:

‘Organizations practice job rotation to encourage employees to become multi-skilled, and to give them an opportunity to see more of what the organization is trying to achieve'.

Job Enlargement allows employees to grow in their jobs both horizontally and vertically. Job enlargement increases the level of diversity at work place and also brings benefits for employees.

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STEPS TAKEN BY ORGANIZATIONS TO MOTIVATE THEIR STAFF

According to Bennett (1997), it a duty of managers to know about the factors that create motivation in order to be able to induce employees to work harder, faster, more efficiently and with greater enthusiasm.

In other words, it's a part of all the organizations to motivate their staff so as to get better performance and stimulate effort that's why all the organizations have Human Resources. On the basis of motivation theories, drives, applications and needs studies above, the organizations, so as to motivate their staff, follow:

i) Training and Development:

ii) Rewards and incentives

iii) Fringe benefits

Rewards motivate behaviour:

There are two types of rewards, or reinforces, that motivates behaviour primary rewards and secondary rewards. Primary rewards directly satisfy basic physiological needs, such as hunger, thirst, activity, rest, and sex. Generally these are not relevant to work motivation.

Secondary rewards, such as money do not satisfy needs directly, but through experience we learn that they can be used in exchange for things that do satisfy needs. Secondary rewards are clearly relevant to work motivation. The degree to which employees must learn about secondary rewards varies.

The adage “People work for money, but they live for recognition” is an example of this philosophy. (Robert H Woods 2002:254)

TYPES OF BENEFITS

Employee benefit services may be classified into two broad categories:

1. Intramural These services are provided outside the establishment. These include latrines and urinals, washing and bathing facilities, crèches, rest, shelters, canteens, uniform, medical aid, library, recreation facilities, free or subsidised food, etc.

2. Extra-mural These services are provided outside the establishment. These consist of housing accommodation, transport, maternity benefits, children’s education, sports fields, family planning and child welfare, holiday homes, leave travel facilities, workers cooperative stores, fair price shops, credit societies, vocational guidance, interest free loans, etc. Welfare services may

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also be divided as voluntary and statutory. Many employers provide the following welfare facilities voluntarily:

(i) Housing In view of acute shortage of housing accommodation in cities industrial housing is an important part of employee welfare in India. An industrial housing scheme was introduce in 1952. Under this scheme, the Central Government provides loans and subsidies for the construction of house for industrial workers. Low Income Housing Scheme and a special Housing Scheme for displaced persons have also been introduced. The committee on Labour Welfare stressed the need for State Government acquiring land near industrial areas and renting houses at reasonable rates. The National Commission on Labour recommended that the Government should take the major responsibility for housing. Fiscal and monetary should be provided.

(ii) Education The Indian Industrial Commission (1918) and the Royal commission on labour (1931) stressed the need for workers education. In 1957 the Government of India formulated an All India Scheme of workers Education The Central Board of workers Education was constituted to administer the scheme the program of workers education operates in three tiers:

(a)Education officers trained at the central place, who in turn train worker teachers at regional level and

(b)The worker teachers conduct classes in various industrial establishments.

(iii) Transportation With the growth of industries, the distance between the workplace and residence of worker has increased considerably. It is, therefore, necessary to provide proper transport facilities to and from the factory. Such facilities will reduce strain and absenteeism. The Committee on Labour Welfare recommended the provision of adequate transport facilities to workers to enable them to reach their workplace without loss of much time and without fatigue. Employers should also advance loans for purchase of bicycles, scooters, etc. by employees. In undertakings where transport services are not provided, some conveyance allowance mutually agreed upon between the employer and the employees should be paid.

(iv) Recreation Recreation in the form of music, art, theatre, sports and games can play an important role in the physical and mental

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development of employees. The I.L.O has urged upon the member countries to take appropriate steps to provide recreational facilities for the workers in or near the undertaking in which they are employed. Under the Plantation Labour Act, 1951, it is obligatory for employers to provide recreation facilities. The committee on Labour Welfare recommended that State Government and trade unions should take the initiative and combine their efforts to provide a minimum number of sports and recreation to keep the labour force fit and healthy. Excursion, youth clubs and holidays homes can be provided for employees.

(v) Consumer cooperative stores The National Cooperative Development board set up a committee in 1961. The committee suggested that employers should introduce consumer cooperative stores in their labour welfare programmes. The Indian Labour Conference in 1963 adopted a scheme for setting up consumer cooperative store in all industrial establishments including plantation and mines employing 300 or more workers. The employer was required to give assistance in the form of share capital, working capital, loan, free accommodation and other amenities. The Industrial Truce Resolution, 1962 aimed at keeping of essential commodities low through cooperative stores and fair prices shops for workers.

4.2 EMPLOYEE SATISFACTION

CONCEPT OF EMPLOYEE SATISFACTION

Employee satisfaction is the end feeling of a person after performing a task to the extent that a person’s job fulfils his dominant needs and is consistent with his expectations and values.

Employee satisfaction, like happiness, can be defined in terms of the extent of positive rather than negative emotions experienced, in this case at work, or as a reflective, cognitive state of satisfaction with the work, the pay, and other aspects of the job (Argyle, 1987). A third component of happiness and therefore of employee satisfaction, is the absence of anxiety, depression or other signs of mental ill health. A related concept is ‘organizational commitment’, that is the extent to which a person is committed to work as such, his or her career is attached to the job loyal to the organization, or to the union.

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MEASUREMENT OF EMPLOYEE SATISFACTION

The most widely used measure is a very simple. One overall job satisfaction can be assessed by simple questions such as ‘choose one of the following statements, which best tells how well you like your job: I hate it. I dislike it, I am enthusiastic about it, I love it’ (Hoppock, 1935). A number of similar general questions can be put together and the replies averaged. This can be done by using four point or five point scale depending upon various factors, the kinds of study undertaken nature of respondents etc.

Another way of finding out how much people really like their jobs is to ask them if they would work if it were financially unnecessary.

Later measures have used a series of scales to measure different components of job satisfaction. Many scales have been devised for this purpose: one book reviews no less than 249 scales of various kinds (cook et al., 1981). However the most widely used is the job description index, which contains five scales seventy-two items in all, which are answered ‘yes’, ‘no’ or ‘uncertain’ (Smith et al., 1969). The five scales are designed to measure satisfaction in the following areas: (I) work on present job e.g., fascinating; (2) present pay, e.g., income inadequate for normal expenses (-); (3) opportunities for promotion e.g., fairly good chance for promotion; (4) supervision on present job e.g., lazy (-); (5) people on present job e.g., talk too much (-). The minus signs show reversed items, i.e., those that show dissatisfaction.

There has been a great deal of research on these scales. They predict overall job satisfaction, especially the ‘work on present job’ scale. Additional scales have been devised for use with managers to measure satisfaction with subordinates and with the firm (Qarr and routledge, 1969).

Work may produce other forms of satisfaction of which people are unaware – until they lose their jobs. Research on the employed has found a number of ‘hidden benefits’ of work: it structures and organizes time, provides social contacts outside the family, links the individual to broader goals and purposes gives status and sense of identity, provides a raised level of activity etc.

JOB SATISFACTION AND JOB BEHAVIOUR

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Vroom (1964) has done an excellent job of examining the relationship between job satisfaction and varius aspects of job behaviour and perhaps summarizing his findings is the best way of giving the reader an overview. Vroom categorizes studies in terms of which job behaviours are correlated with job satisfaction. Specifically, he groups them into studies of turnover, absenteeism, accidents, and job performance.

Satisfaction and turnover

There is a consistent negative relationship between job satisfaction and the probability of resignation.

Satisfaction and absentieem

Thre is a less consistent negative relationship beween job satisfaction and absences.

Satisfaction and accidents

There is some indication of a negative relationship between job satisfaction and accidents.

Satisfaction and job performance

There is no simple relationship between job satisfaction and job performance.

DETERMINANTS OF EMPLOYEE SATISFACTION

The work itself: This is a major cause of employee satisfaction as a whole, and particularly of the component of it known as intrinsic job satisfaction. Hockman (1980) suggested that five features of work produce such satisfaction. Many studies have investigated this issue and the latest meta-analysis found the following average correlation with job satisfaction (a) task identity (completing a clear and identifiable piece of work (b) task significance the degree to which the job has an impact on the lives of others; (c) skill variety (d) autonomy (the degree to which the job [provides freedom, independence and discretion (e) feedback the extent to which information about effectiveness is available.

Different occupations: There are very large differences between occupations and the job satisfaction they provide.

In some surveys it has been found that the most satisfied workers are university teachers, scientists, the clergy and social workers is probably because their work has the right job characteristics, such as challenge, autonomy and skill variety. Some of the most discontented workers are those on assembly

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lines. They use a fairly low level of skill have little skill variety, have very little autonomy, and do not complete an identifiable piece of work: they do badly on all the job characteristics needed for intrinsic satisfaction.

Pay: In a number of studies people have been asked to rank various sources of job satisfaction and pay has usually come out among the first. It is more a source of dissatisfaction than satisfaction: in some studies as many as 80 per cent of employees were discontented with their pay. In job satisfaction scales, contentment with pay is always one of the main components, and gives a reasonably good prediction of overall satisfaction.

Many people try so hard to increase their pay in one way or another that it would be surprising if pay was not an important source of satisfaction – some go on strike some try to be promoted others do a second job. However across the population pay has a surprisingly small correlation with happiness or satisfaction. But within organizations there is a correlation between job satisfaction and pay, after other variables have been held constant although it is still small.

Relative pay is a better predictor of job satisfaction than the absolute amount paid. People at work have a clear idea of what they ought to the paid in comparison with others, and in relation to their skill, experience, etc. it is widely believed that performance, seniority, age education etc. should be recognized and regarded by higher pay. If there is a discrepancy between what employees think they should be paid and what they are paid. They are dissatisfied. They were paid in the past, although inflation makes accurate comparisons difficult and probably increases satisfaction with current pay a little.

Security: Findings on the importance of security are contradictory. The results depend on the country and historical period in which studies have been carried out .When people are worried about losing their jobs this is found to spread to discontent with all other aspects of their. The people who are most concerned about security are those in the lower income group, and whose parents were in unskilled or semi-skilled jobs-presumably because there is less security for less skilled workers. On the other hand, it is also found that more intelligent people are also very interested in long-term security. In Britain some of the elements of security are provided by the state health and unemployment insurance and pensions. What workers would really like is guaranteed employment; despite a greatly improved employment situation.

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Status: There is a strong correlation between status and job satisfaction, both in terms of status within an organization and of the social class generally believed to be associated with different occupations. On the other hand the most highly paid people – managers administrators and doctors – are less satisfied and more stressed than university teachers, scientist and the others. In they enjoy the use of skills and the company of their coworkers for example. The main negative feature of high status jobs is that they can be more stressful.

Promotion prospects : American surveys show that opportunity for advancement is usually ranked first or second in importance. Herzberg et al., (1959) found that achievement, recognition and advancement were the main causes of positive satisfaction and estimates of the likelihood and promotion. On the other hand, if people expecting promotion do not get it they will be discontented. The importance of promotion is quite different for people in different social classes and at different skill levels. For managerial and professional people work is part of a career and promotion is of the highest importance. For unskilled and semi-skilled workers promotion is less likely and is less sought after.

Working groups : Many studies have found that the working group is one of the most important components of job satisfaction. The Human relations movement emphasized the importance of social factors at work and while it underestimated the importance of other factors, such as pay and the work itself, the findings are still valid. Co-workers can be a major source of help at work there is often a great deal of joking fun and gossip and they can provide social support at times of stress. Coworkers produce job satisfaction under the following conditions;

a. Cohesiveness: Satisfaction is greatest in cohesive groups. The conditions for cohesiveness are discussed elsewhere frequent interaction group members of similar background and values democratic leadership skills, members brought together by the work flow in a cooperative manner etc. a number of studies have shown that labour turnover is much less in cohesive groups.

b. Popularity: There is a close correlation between popularity and satisfaction and unpopular members usually leave.

c. Group size: Smaller groups have higher satisfaction than larger ones; the reason is probably that in smaller groups each members can exert a lot of influence and talk as much

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as he or she likes while in large groups the majority will be at the lower and of the dominance hierarchy.

d. Opportunities for interaction: Satisfaction is high when there are opportunities for interaction and reduced when noise or physical separation makes this different.

Supervision: Satisfaction with superiors is the second source of social satisfaction at work and is ranked as less important than that with co-workers; tropically the two fall third and seventh in order of importance supervision was mainly a source of periods of dissatisfaction in the Herzberg studies, and another study found that there was a great deal of conflict with supervisors. Supervisors may make demands for more or better work may be felt to treat different subordinates unfairly, may be seen as distant hostile or unsympathetic. On the other hand supervisors can provide benefits that are partly material partly social they are a greater source of instrumental tangible help than co-workers. They can help with promotion pay rises and conditions of work: they can do more to solve difficulties at work than either co-workers or spouses. The social rewards which supervisors can provide include praise, encouragement and the creation of a pleasant social atmosphere. Support from supervisors can reduce the effects of stress on anxiety and depression. Most supervisors feel that helping people in this way is part of the job. But the social side of the relationship is made difficult by the difference in power, status and salary.

Characteristics of organization: Several aspects of organizational structure affect job satisfaction.

Size: Satisfaction is greater in smaller companies and absenteeism is much less. Smaller size can be achieved by decentralization.

Levels: Satisfaction is greater when there are fewer levels in the hierarchy, i.e., in organizations, which are smaller or have a larger spans on control.

Participation in decisions or administration produces higher job satisfaction. There may be participation in formal works committees, it may be used by supervisors, or it may be used by management when some change is being introduced.

Other aspects of the company mentioned in surveys are managers – their training and skills the nature of contacts with them; personnel policies – appraisal schemes; relations with trade unions – liberal or conservative attitudes; pride in company and product – based on public reputation social importance etc.

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Individual differences: Extroverts are happier than introverts and this is partly because they have more favorable experiences at work; this in turn is partly because they get on better with people and enjoy social contacts more. Neuroticism is negatively correlated both with job satisfaction and with happiness in general probably because neurotics find more things stressful and cause of anxiety and distress. Individual lacking in social skills, intelligence, physical attractiveness or other aspects of competence and personal resources are also unhappier.

Job satisfaction depends on the ‘fit’ between personality and job. If an individual’s profile of need matches the profile of rewards offered by the job he or she will be more satisfied. The most obvious fit, which is needed, is between employees’ knowledge and skills and those required by the job. It does not matter from the organization’s point of view if employees are over qualified but it does matter for the employee. Those high in achievement motivation prefer more challenging jobs, and show more correlation between performance and satisfaction. Those with strong social needs are happier as members of close-knit, cooperative groups.

More highly educated and more intelligent people are generally more satisfied because they usually do more interesting and challenging jobs. However, if they are not doing jobs of this nature they are less satisfied.

Age and sex: It is usually found that older people are more satisfied with their jobs. The effect is greatest for intrinsic satisfaction. It is partly because older people have more rewarding and higher status jobs, but there is still a correlation with age when such rewards have been held constant. The most likely reason is that for older people aspirations and attainments come closer so that they almost meet. In other words older people become more adjusted to their work situation. They may also be able to adjust the work situation to their needs for example by changing jobs or by altering their conditions of work.

THE EFFECT OF EMPLOYEE SATISFACTION

Health and mental health: Low job satisfaction is correlated with high rates of anxiety, depression, psychosomatic symptoms and coronary heart disease. (PPR) mental health is more closely as societal with (low) job satisfaction than it is with features of the job suggesting that job satisfaction is an intervening state in the causal chain. However to some extent job satisfaction and mental health are probably both affected by similar features of work; repetitive, machine – paced work bad supervision, conflict

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with co-workers and other forms of stress. In particular the combination of low status and low-grade work is associated with dissatisfaction and with dissatisfaction and with poor health, but there could be several reasons for this including a tendency from those in poor health to gravitate to poor job.

Social support from co-workers and supervisors is a major source both of job satisfaction and positive mental health. It can buffer the effects of stress at work more effectively than core sources of social support. People in stressful jobs are in particular need of support form cohesive working groups or socially skilled supervisors.

Life satisfaction: Job satisfaction is one of the main factors in overall life satisfaction, although it is less important than marriage and family life. Some attempts to clarify the direction of causation have found that both direction operate others that it is job satisfaction which influences life satisfaction. Another possibility is that areas of work and non-work have a lot in common such as friendship status similar styles of behavior and that they jointly affect satisfaction with life as a whole. Another study concluded that we suspect that how one effectively evaluates various life concerns relates to essentially one phenomenon at the global level. Perceptions of general well begin. At least part of the link between the two kinds of satisfaction is a ‘top-to-bottom’ one i.e., general well being affects job satisfaction.

Individual needs and individual experience = Job satisfaction

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KNOWLEDGE CONTRACTIndividual needsFor existing skill and knowledge to be used and developed to the extent that the individual wishes.Individual experienceSkills and knowledge adequately used. facilities for knowledge development were present in all firms although there were some criticisms of there were some criticism of these.FitGood on use of skillsQuite good on development.

PSYCHOLOGICAL CONTRACTIndividual needsOpportunities for self actualisation, the process by which an individual achieves personal growth, expressed by our programmers and systems analysts as a demand for self development and responsibility individual experience.Opportunities for self development existed (see knowledge contract). Opportunities for responsibility good in present job.FitGood on self development.Good on responsibility in short term.

TASK CONTRACTIndividual needsFor a set of tasks which fit needs for skill variety targets and feedback task identity work autonomyIndividual experience Needs for skill variety, targets and feedback, task identity and work autonomy wee extremely well catered forFitVery good. This was seen as the critical variable in the job satisfaction of computer specialties.

EFFICIENCY CONTRACTIndividual needs For an equitable effort-

reward bargain For acceptable work

procedures and controls For acceptable supervisory

controlsIndividual experience Pay acceptable Work procedures and

controls acceptable Supervision acceptable Lack of positive guidance for

someFit Good

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ETHICAL (SOCIAL VALUE) CONTRACTIndividual needs For an employer whose values do not conflict with the individual's own values, particularly in the sphere of human relationshipsIndividual experienceLittle conflict of values when the reference group of the computer man was his own company or EDP department. A potential for conflict if he identified too much with the user.FitGood, given continuance of existing technical values.

4.3 MORALE

Meaning of Morale According to Flippo morale is “a mental condition or attitudes of individuals and groups which determines their willingness to co-operate. Good morale is evidenced by employee enthusiasm, voluntary conformance with regulations and orders, and a willingness to cooperate with others in the accomplishment of an organization’s objectives. Poor morale is evidenced by surliness, insubordination, a feeling of discouragement and dislike of the job, company and associates.”In the words of Jucious, “morale is a state of mind or willingness to work which in turn affects individuals and organizational objectives.” Morale, he adds consists of “What is it”? What does it do”? “Where does it reside”? “Whom doesn’t affect?” and “What does it affect?” Jucious answers his own questions thus.

What IS IT? – It is an attitude of mind, an esprit de corps, a state of well-being and an emotional force.

WHAT DOES IT DO?- It affects output, the quality of a product, costs, cooperation, discipline, enthusiasm, initiative and other aspects of success.

WHERE DOES IT RESIDE?- It resides in the minds, attitudes and emotions of individuals themselves and in the reactions of their group.WHOM DOES IT AFFECT?- It affects the employees and executives in their interactions. Ultimately it affects the consumers and the community.WHAT DOES IT AFFECT?- It affects an employee’s or group’s willingness to work and cooperate in the best interests of the individuals or groups and the organizations for which they work.

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The above definitions reveal the following features of morale:(i) Morale is a state of mind. It reflects mental health (ii) It is the aggregate of attitudes, feelings, emotions, sentiments,

etc. (iii) Morale is of two types-(a) Individual morale which means a person’s attitudes towards life,

and (b) Group morale which implies the collective attitudes of a group of

persons.(iv) Morale is a relative term. It may be high or low. When employees

feel enthusiastic and optimistic about activities, satisfied with the job and friendly to each other, they are said to have high morale. On the other hand, if they feel dissatisfied, pessimistic and irritated, their morale is said to below.

(v) Morale influences human behavior and performance.(vi) Morale is a psychological feeling.(vii) Morale is intangible. It cannot be increased directly.(viii) Morale is a contagious phenomenon. Individuals transmit their

attitudes to each other.

IMPORTANCE OF MORALEAccording to Napolean, “in war conditions make up three quarters of the game, the relative balance of manpower accounts for the remaining quarter.” Morale is equally important in management. High morale mean willing cooperation and loyalty to the organization. Employees with high morale take greater interest in the job, feel a sense of identity with the organization and take pride in it. High morale is an index of sound industrial relations. It helps the management in overcoming labor-turnover, absenteeism, indiscipline, grievances and other labour problem.

Possible Effects of High Morale1. Higher performance 2. Better quality of work3. Low absenteeism4. Low labor turnover 5. Good discipline 6. Fewer industrial accidents 7. Stability and growth of the organization.

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IMPACT OF MORALE ON PRODUCTIVITY Research shows no direct and consistent relationship between morale and productivity. Productivity sometimes is high with high morale but at other times productivity may be low even when morale is high. For instance, Herzberg found that in 54% of the studies, high morale was related to high productivity while in 11% cases, high morale was associated with low productivity. In 35% there was no relationship between morale and productivity.There can four combinations of morale and productivity:1. High Morale- High Productivity. High morale reflects a

predisposition to be more productivity if proper leadership is provided. This situation is likely to occur when employees are motivated to achieve high performance standards through financial and non financial rewards. Complete identity, between individual and organization goals can lead to this situation.

2. High Morale-Low Productivity. The situation arises when employees spend their time and energy in satisfying their personal objectives unrelated to the company’s goals. Faulty machinery, lack off training, ineffective supervision and restrictive norms of informal groups can also lead to low productivity on the part of employees with high morale.

3. Low Morale-High Productivity: Low morale cannot result in high productivity for a long period. However, this situation can occur for a temporary period due to fear of loss of job, exceptionally good supervision and machine paced work in which only a part of workers’ capabilities are used.

4. Low Morale-Low Productivity: This is a normal relationship. In the long run how morale is likely to result in low productivity.

High ProductivityHigh MoraleHigh Productivity

Low MoraleHigh Productivity

High MoraleLow Productivity

Low MoraleLow Productivity

Low Productivity

Morale Productivity Matrix

Thus, there is a complex relationship morale and productivity. This is because morale is only one of the factors influencing productivity.

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High Morale

Low Morale

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MEASURES FOR BUILDING HIGH MORALE Morale building is a difficult exercise as it involves removing misconceptions, changing attitudes and dealing with emotions. The following measures may be helpful in improving employee morale.

1. Proper Work Environment: Adequate lighting, proper ventilation noise free work place, regular rest periods and other facilities should be provided to workers. Congenial work environment helps to improve attitudes of employees.

2. Job security: When employees are under a constant fear of losing the job, their morale cannot be high. Therefore, reasonable security of job should be guaranteed.

3. Sound Compensation System: A just and fair wage structure with proper incentives for efficient performance is very helpful in building morale.

4. Sound Promotion Policy: Adequate opportunities for career growth and advancement is essential for raising the morale of ambitious and hardworking employees. It provides recognition for achievement and inspires employees.

5. Job enrichment: Job enrichment provides recognition, growth and responsibility. Greater authority should be delegated to provide work autonomy to the employee. Job rotation also helps to improve employee morale.

6. Grievance Procedures: A sound procedure should be installed for quick and impartial redressal of employee grievances. Such a procedure will help to void dissatisfaction and negative attitudes among employees.

7. Suggestion Scheme: Management should install a proper system by which employees can suggest changes. Useful suggestions should be rewarded and widely recognized. This will create a sense of involvement and loyalty among workers.

8. Employee Counseling: Managers should regularly provide guidance, advice and assistance to employees to help them in tackling their personal and work-related problems. Counseling will create confidence among employees and improve their attitudes.

9. Workers’ Participation in Management: Participation of employees in the process of decision- making helps to improve mutual understanding. It also promotes team spirit and sense of belonging among workers.

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How Employees Can Express Dissatisfaction

Employee dissatisfaction can be expressed in a number of ways. For example , rather than quit , employees can complain, be insubordinate, steal organizational property, or shirk a part of their work responsibilities offers four response that differ from one another along two dimensions: constructive/ destructive and active/ passive. They are defined as follows; Exit: Behaviour directed toward leaving the organization,

including looking for a new position as well as resigning. Voice: Actively and constructively attempting to improve

conditions including suggesting improvements, discussing problems with superiors, and some forms of union activity.

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”.

Neglect: Passively allowing conditions to worsen, including chronic absenteeism or lateness, reduced effort, and increased error rate.

Exit and neglect behaviours encompass out performance variables productivity absenteeism, and turnover. But this model expands employee response to include voice and loyalty- constructive behaviours that allow individuals to tolerate unpleasant situations or to revive satisfactory working conditions, it helps us to understand situations, such as those sometimes found among unionized workers, for whom low job satisfaction is coupled with low turnover. Union members often express dissatisfaction through the grievance procedure or through formal contract negotiations. These voice mechanisms allow union members to continue in their jobs while convincing themselves that they are acting to improve the situation. Job Satisfaction and OCB

It seems logical to assume that job satisfaction should be a major determinant of an employee’s organizational citizenship behaviour (OCB). Satisfied employees would seen more likely to talk positively

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Active

EXITVOICE

ConstructiveDestructive

NEGLECT LOYALTY

Passive

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About the organization, help others, and go beyond the normal expectations in their job. Moreover, satisfied employees might be more prone to go beyond the call of duty because they want to reciprocate their positive experiences. Consistent with this thinking, early discussions of OCB assumed that it was closely linked with satisfaction influences OCB but through perceptions of fairness. There is a modest overall relationship between job satisfaction and OCB. But satisfaction is unrelated to OCB when fairness is controlled for. What does this mean? Basically, job satisfaction comes down to conceptions of fair outcomes, treatment, and procedures. If you job satisfaction is likely to suffer significantly. However, when you perceive organizational processes and outcomes to be fair, trust is developed. And when you trust your employer, you’re more willing to voluntarily engage in behaviors that go beyond your formal hob requirements.

Job Satisfaction and Customer Satisfaction

Employees in service jobs often interact with customers. Since the management of service organizations should be concerned with pleasing those customers, it is reasonable to ask: Is

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employees who have regular contract with customers, the answer is “Yes.”The evidence indicates that satisfied employees increase customer satisfaction and loyalty. Why? In service organizations, customer retention and defection are highly dependent on how front-line employees deal with customers. Satisfied employees are more likely to be friendly, upbeat, and responsive- which customers appreciate. And because satisfied employees are less prone to turnover, customers are more likely to encounter familiar faces and receive experienced service. These qualities build customer satisfaction and loyalty. In addition, the relationship seems to apply in reverse: Dissatisfied customers can increase an employee’s job dissatisfaction. Employees who have regular contact with customers report that rude, thoughtless, or unreasonably demanding customers adversely effect the employee’s job satisfaction.A number of companies are acting on this evidence. Service- oriented businesses such as FedEx, Southwest Airlines, American Express, and Office Depot obsess about pleasing their customers. Toward that end, they also focus on building employee satisfaction-recognizing that employee satisfaction will go a long way toward a contributing to their goal of having happy customers. These firms seek to hire upbeat and friendly employees, they train employees in the importance of customer service, they reward customer service, they provide positive employee work climates, and they regularly track employee satisfaction through attitudes surveys.

4.4 EMPLOYEE ENGAGEMENT

Employee engagement goes beyond the employees’ intent to leave. It includes the employees’ commitment to the organization and motivation to contribute to the organization’s success. By creating a workforce that is passionately involved with the company, the organization can create a sustainable competitive advantage for itself. This article throws light on the issues to be addressed by the organizations for creating an engaged workforce.

The evidence of a significant relationship between employee engagement and financial performance is undeniable.

-Towers Perris

Talking about the engagement and commitment of an employee to an organization, most companies are of the opinion that they do have a

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few, but they still want more. Why? It is merely because these companies have come to the realization that their organization’s long-term success relies on employee performance, which is directly impacted by the level of employee engagement and commitment to an organization. Well, some organizations think that simply making people happy and paying them handsome pay packets is the solution. But it is not so. These are things which an organization need to consider to attract and retain the most qualified individuals, however, when it comes to engaging employees in their work, there are definitely some more issues that need to be worked out. Engagement requires engaging not only the employees’ minds but their hearts as well and this is something that the organizations can neither force not buy in order to succeed in the marketplace.

What is employee engagement?

An engaged employee is a person who is fully involved in and is enthusiastic about, his or her work. Such employees are attracted to, and inspired, committed and fascinated by their work. In a recent research by Hewitt Associates, it was found that engaged employees are not only intellectually committed to the organization but are also emotionally attached to it, as is measured by three primary behaviors: Say, stay and strive.

The age old business dictum goes that “satisfied employees create satisfied customers” by constantly striving for the best, contributing to the bottom line of the company success by their motivation and enhanced performance. It is believed that an engaged employee always acts positively in the interest of the company and takes unconcealed pride in the success and prosperity of his employer. The engaged employees and the organizations go that extra mile for each other, thereby realizing the benefits that flow through an investment in such a relationship.

Does Engagement Really Make a Difference?

According to the former GE Chairman and CEO, Jack Welch, a company’s health is determined through it’s energized workforce who not only realize the mission of the organization and have an understanding of how to achieve it, help the organization win in the long run. Engaged employees care about the future of the company and are willing to study entitled, The War for talent, reported that a shortage of skilled employees was an emerging trend and it was more so due to the fact that the organizations fail in their attempts to create a workforce that is not only cognitively vigilant but also emotionally connected to the organization.

Research has proven that wholly engaged employees tend to be more self-motivated, reliable, and have higher levels of organizational

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loyalty. They are capable of delivering sustained affecting the key results areas such as employee turnover, sales, innovation and customer satisfaction, engaged employees in customer facing roles are more likely to treat customer is ways that positively influence customer satisfaction and are more than twice as likely to be company advocates. They share information with colleagues and pass on ideas that speak up for the organization. Engaged employees are much more likely to feel secure and stable in their position and are in fact the ambassadors for the company, singing its praises to everyone, and taking the best foot forward to deliver and over-deliver for customers and the colleagues alike.

Approaches suggested for creating an engaged workforce

Employee engagement can occur when the organizations work on removing the blockades to work which necessitates having a clear understanding of the levers required to improve the key employee attitudes of satisfaction and engagement so as to create an optimally functioning system.

There can be more than one way to improve the level of employee engagement in a company. In fact, there are many different things that companies not only can do, but also need to do. Most organization has a range of practices to improve the engagement level of their employees. Best practice recommends starting right at the selection or recruitment stage by having the right employees working in the right jobs and having a strong induction and orientation program in place. Besides giving the employees clarity on the vision and goals of the organization, it is essential for organizations to put into place regular technical / soft – skill training and development programs and the certification programs to drive people towards excellent performance as it so happens at HCL infosystems.

Once the employees become a part of the system, efforts have to be put into place to engage employees to their highest level. This includes giving emphasis on certain areas which go a long way in affecting the level of engagement of the employees and includes:

Communication: A proper communication system helps employees in finding out what is going on within the company outside their immediate team. They also help to create an environment of trust and openness within the organizations where they are able to talk openly. Employees who feel they are listened to are able to express dissatisfaction and work together to resolve their causes, without it affecting their performance.

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The initiative must be taken by the leaders at the top as it happens at the Sum Microsystems where the CEO interacts with Sun employees through WSUN, a forum on Sun’s intranet. He uses this to sustain an active, an ongoing dialog on the corporate goals and direction.

The organizations must work towards implementing the communication forums to provide regular feedback to all people, including team meetings and conferences. 3M, for example encourages employees to bring forward their questions or concerns through such programs as Let’s talk It Over, Between Us and various internal and external help lines.

Beside using the regular employee opinion and satisfaction surveys, an update on the various organizational issues can be tracked by the organizations through the usage of in-house magazines and online communications, including discussion boards by company personnel including the senior management.

Reward Schemes: These form an important part of a company’s overall employee engagement program. Studies have long shown that while money in itself is not a motivating factor the absence of financial reward can be a significant demotivator. Thus the role of reward schemes in boosting. Thus the roles of reward schemes in boosting employee engagement are? To remove barriers to satisfaction in the organization and provide a framework for rewarding everyone in the organization for their performance. This may be achieved through right compensation and benefit programs, stock ownership and profit sharing plans and recognition programs. People want to know if their input matters and that they are contributing to the organization’s success in a meaningful way, for which there must be performance based reward scheme in place.

In fact, organizations must have flexible benefit schemes, as Hewitt Associates does, to attract and retain their talent, which provides employees with the freedom to choose how they receive their benefits tailoring a package to suit their lifestyle.

Developing the right culture: The organizations must have clear and humane HR policies and take initiatives to maintain the quality of work life of its employees. Opportunities must be provided for social interaction such as family gathering barbeques, and trips to the cinema or picnics. At HCL Infosystems, a balance between personal / professional lives of employees is maintained through recreational activities like festivities @ HCL, get-togethers @HCL, sport@HCL. The company also encourage an open and transparent culture to empower its people and develop entrepreneurs.

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The organizations must demonstrate a commitment to employees’ well –being by providing opportunities for career advancement and be developing a safe, clean and inspiring work environment for their all-round growth. The employees must be provided with enough resources to solve their day-to-day problems or to do a job well. Culture – building activities are great for generating a feeling of belongings. Giving employees a feeling of belongingness is crucial in creating a thriving organization that people feel committed to and others want to join.

Leadership: Effective leaders who help in setting the tone for creating an engaged workforce can really differentiate an organization from its competitors. Everyone in the organization with leadership responsibility must have the emotional intelligence and leadership skills needed to switch and employees on they must act as role models, demonstrate and set high standards to which others can aspire. Good practices include effective performance management and a fair evaluation of performance. The leaders must act as coaches and mentors and must give an honest feedback and guidance to their employees.

Ideas should be sought from all employees and the frontline employees should be allowed to exercise a degree of discretion during service delivery E.g., allowing employees to spend up to a certain amount to correct a customers problem or handle a complaint. The success of Microsoft, for example, stems in part from Bill gates’ belief that smart people anywhere in the company should have the4 power to drive an initiative. Initiatives such as Six Sigma are dependent, in part on the active participation of employees on the shop floor.

For great managements, the path towards engaging employees and keeping them engaged beings with asking them what they want and what is important in order to be effective in their roles. Effective leaders don’t wait to get the resignation to know that an employee is dissatisfied.

Conclusion

An organization can always gain a competitive advantage by creating an engaged workforce. It therefore, becomes, imperative for the organizations to identify the level of engagement in their organization, strive to eliminate the reasons behind the disengaged workforce and implement strategies to make them fully engaged. Employee engagement is something that is very difficult to

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accomplish but if efforts are made on an ongoing basis, it can shrivel with relative ease.

4.5 COMPENSATION

Everyone likes to be paid. Whatever else it does, money still can be turned into items most people want. Of course, the psychological dimensions of the compensation a person receives are important too.

Compensation is frequently directly tied to the labour market. When certain workers are in short supply, offering higher compensation may increase the number of persons hired. When the economy is slower, more people are happy to have a pay cheque.

At the peak of the last hiring boom "pay envy" presented a significant problem. Stock options, performance pay and signing bonuses created ambiguities in pay systems and caused problems. Current employees hired without receiving signing bonuses like those given to new employees were envious.

In one survey, more than 50 per cent workers indicated that they believed they were paid too little, while only 23 per cent expressed satisfaction with their pay. One factor driving the confusion was that wages went up rapidly for those in high demand, but not everyone was in high demand. Also, paying people based on their individual performance often created "winners" and "losers".

All this attention to compensation means that even people who did not worry much about the topic before are turning into it now. Employers often had no choice but to turn to new and different compensation approaches in order to compete for employees. Many HR professionals and managers now admit these approaches have caused problems. Pay envy dampens morale and team-work, causes turnover and creates a "caste system" in the company.

Many forms of creative compensation, tossed in to attract or keep employees during the "boom time", seemed frivolous in a weakened economy amid stock market uncertainties. There is now a very clear distinction between 'nice' and 'necessary' when it comes to perks. We went a little too far," a partner with a big accounting firm noted. Less number of jobs reduced the need for signing bonuses and other recruiting perks necessary a few years ago.

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All of these changes illustrate that compensation practices must change. But compensation continues to be important, visible and often a concern in HR management.

COMPONENTS OF REMUNERATION

An average employee in the organized sector is entitled to several benefits—both financial as well as non-financial. To be specific, typical remuneration of an employee comprises—wages and salary, incentives, fringe benefits, perquisites, and non-monetary benefits.

Wages and Salary

Wages represent hourly rates of pay, and salary refers to the monthly rate of pay, irrespective of the number of hours put in by an employee. Wages and salaries are subject to annual increments. They differ from employee to employee, and depend upon the nature of job, seniority, and merit.

Incentives

Also called 'payments by results', incentives are paid in addition to wages and salaries. Incentives depend upon productivity, sales, profit, or cost reduction efforts.

There are: (i) individual incentive schemes, and (ii) group incentive programmes. Individual incentives are applicable to specific employee performance. Where a given task demands group effort for completion, incentives are paid to the group as a whole. The amount is later divided among group members on an equitable basis.

Fringe Benefits

These include such employee benefits as provident fund, gratuity, medical care, hospitalization, accident relief, health and group insurance, canteen, uniform, recreation and the like.

Perquisites

These are allowed to executives and include company car, club membership, paid holidays, furnished house, stock option schemes and the like. Perquisites are offered to retain competent executives.

Non-monetary Benefits

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These include challenging job responsibilities, recognition of merit, growth prospects, competent supervision, comfortable working conditions, job sharing, and flexi time.

Components of Employee Remuneration

IMPORTANCE OF AN IDEAL REMUNERATION SYSTEM

An effective system of remuneration is highly significant because several problems relating to personnel centre around one element, namely, remuneration. Many employees, for example, absent themselves from work often because they feel they are not paid enough. They look for new and better prospects because the present emoluments may not be attractive enough to stay on. They agitate, pelt stones, use foul language, resort to graffiti, turn violent, fall sick, because the remuneration paid to them may not be adequate (see Fig.)

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Consequences of Pay dissatisfaction

Talks on job satisfaction, loyalty, organisation before self, altruism, and the like, may be all right for boardroom discussions, and for delivering lectures in classrooms. The talk may also be relevant in a country like Japan, where people are inspired by a fanatical devotion to work. But in our country, an average worker cares only for money. Such being the reality, remuneration must fulfil the expectations and aspirations of employees and exploit their energies for the benefit of organisations.

Attractive remuneration enables an organisation to attract, retain and motivate competent people. Fresh MBAs and brilliant engineers flock around Hindustan Lever, Citibank, Motorola, ANZ Grindlays and Reliance because of their attractive remuneration packages.

Retaining competent individuals for long is more difficult than attracting fresh ones. An employee's longevity of service in a particular organisation depends more on non-financial benefits, but the role of financial benefits cannot be ruled out, particularly at the lower levels of hierarchy. Loyalty towards an organisation also depends on his or her perceptions about remuneration. It is common knowledge that an employee feels satisfied or dissatisfied with his or her remuneration—not so much by the total amount he or she receives, but by comparing his or her benefits with those enjoyed by others.

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Comparison provides a feeling of equity or inequity. There is a sense of equity when the employee's remuneration is equal or more than the remuneration received by others in the same category of jobs. If the remuneration is lower, the employee feels he or she is inequitably treated. An employee sticks to an organisation when he or she is paid equitably. The organisation's pay structure must, therefore, be equitable and consistent.

Motivation and Performance Model

Employees get motivated to perform better when their past performance is rewarded adequately (see Fig. above). Employees set expectations about rewards and compensation to be received, if certain levels of performance are achieved. These expectations determine goals or levels of performance for the future. Employees achieving the desired level of performance expect a certain level of compensation. At some point, the management evaluates and rewards the employee's performance. Examples of such rewards include merit-pay increases, promotions, and non-financial rewards such as recognition and increased status. Employees consider the relationship between their performance and rewards related to that performance, and then the fairness of the relationship. The final step in the process will have the employee setting new goals and expectations, based on past experiences within the organisation.

If employees see that hardwork and superior performance are recognised and rewarded by the organisation, they will expect such relationships to continue in the future. Therefore, they will set higher levels of performance for themselves, expecting higher levels of rewards. Of course, if employees see little relationship between

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performance and rewards, then they may set minimum goals in order to retain their jobs, but will not see the need to excel in their positions.

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CHAPTER 5

FINDINGS

BENEFITS AT BAJAJ ALLIANZ CO.

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These are the various benefits which the company gives to its employees.

Dearness Allowance(DA)

In the company DA(Dearness allowance) is granted to compensate the price increase above AICPI 1708, to which the revised salary grades relate. The payment of D.A. is based on 100% neutralization over quarterly average of AICPI 1708.

 House Rent Allowance(HRA)

Employees who have not been provided accommodation by the Company are entitled to HRA(House Rent Allowance) at prescribed rate according to category of city, with certain considerations i.e House rent allowance is admissible to all employees, without reference to the quantum of rent paid and without requiring them to produce any rent receipt but under certain conditions. It is not admissible in the situations like If the employee is staying in an accommodation including a leased accommodation allotted to his or her spouse or parent by the Company / Central/State Government / PSU / Semi-Government Organization / Autonomous Body / Nationalized Bank / LIC etc, if the employee is staying at company’s guest house etc.The employees will be entitled to be paid house rent and city compensatory allowance during leave at the same rates at which they were drawing these allowances before they proceeded on leave but the leave should not exceed the total leave of 120 days.

RE-IMBURSEMENT OF LEASE MAINTENANCE EXPENDITURE

The expenditure incurred by the executives on repairs/maintenance/minor alterations carried out in the leased premises occupied by them may be reimbursed subject to the following conditions:

The repairs/maintenance/minor alterations carried out are essential and the landlord is not agreeable to meet the expenses thereon subject to the conditions that no alterations in the premises will be undertaken without the specific written consent of the landlord.

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The total amount to be reimbursed in a year commencing from the date of operation of the lease shall be least of the following:

1. the lease rent  entitlement per month

2. the actual rent per month for the premises

3. the actual lease maintenance expenditure incurred during the relevant lease year. 

The time of submission of the claim , should however, relate to the lease year to which the claim pertains.

CITY COMPENSATORY ALLOWANCE

City Compensatory Allowance to the employees of the Company is paid at the rates applicable from time to time on the basis of classification of the cities declared by the Central Government.

In Class ‘A’ cities like Delhi. Mumbai, Calcutta etc it is paid at the rate of 6% of pay subject to maximum of Rs.100 per month.

In Class ’B1’ cities like Lucknow, Allahabad, Patna etc. it is paid at the rate of 4.5% of pay subject to maximum of Rs.75 per month.

In Class ‘B2’ cities like Tiruchy, Chandigarh, Srinagar etc. it is paid at the rate of 3.5% of pay subject to maximum of Rs.20 per month.

LOCATION ALLOWANCE

Non-executive employees upto AVI/BVI category working in Hardwar, Jhansi, Ranipet, Jagdishpur, Rudrapur and Goindwal will be entitled to the payment of Location Allowance at the rate of 3.5% of basic pay subject to a maximum of Rs. 20/- per month.

The Company give other allowances like Non-Practising Allowance to Medical Officers, Late Night Snack Allowance, Allowance etc. for Nursing Staff which consists of Messing Allowance, Free Unfurnished Accommodation, Free Electricity, Cycle Allowance, Welding Allowance to High Pressure Welders and Kit Allowance to Employees Deputed Abroad.

This Kit Allowance is given to the employees of the Company in the scales of pay upto and including E2 grade and its equivalent and who

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are deputed for training abroad for more than 3 months continuous duration are entitled to a kit allowance of Rs.750/- provided they have not been paid such an allowance in the last seven years. The amount will be paid in cash in India.

And In cases of employees who are sponsored by the Company for higher studies abroad, they may be granted an advance for the purchase of kit of an amount not exceeding Rs. 750/- which can be recovered in five equal monthly instalments from the salary payable in India. This amount may be granted only at the request of the employee.

Educational Assistance/Reimbursement of Tuition Fees

Educational Assistance

If the Education of the children is not possible in Company aided schools then Educational assistance of Rs.45/- p.m. per child will be paid to the employees in non-executive salary grades subject to a maximum of three school going children inclusive of Higher Secondary from 1st Standard onwards on production of the prescribed certificates.

Reimbursement of Tuition Fees

Reimbursement of expenditure incurred on Tuition Fees will be allowed to all the regular employees subject to a maximum of two school going children studying in class I to XII on production of the prescribed certificate only in those cases where education of such children is not possible in the Company aided schools. In cases where the tuition fees paid by the employee is more than Rs.30/- p.m., the tuition fees paid over and above Rs.30/- p.m. will be reimbursed subject to a maximum of Rs.260/- p.m. per child subject to a maximum of two school going children upto Class XII. The employee should have actually incurred the expenditure before claiming it in the prescribed format. However, the payment can be regulated quarterly.

CASH AWARD FOR ACQUIRING HIGHER/ ADDITIONAL QUALIFICATIONS

The 'BAJAJ ALLIANZ CO. Scheme 0f Cash Award For Acquiring Higher/Additional Qualifications' is intended to encourage the employees to improve their knowledge and professional competence

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by acquiring higher/additional qualifications for better and more efficient performance in their respective functional area. The Scheme is applicable to all the employees of the Company other than Deputationists, Apprentices, Trainees and Temporary and Casual (including daily rated/monthly rated employees), who have completed a minimum of two years service on the date of enrollment for the course leading to the qualifications for acquisition of which the award is claimed under this Scheme but under certain conditions like

a) The qualifications must be significantly relevant to the duties performed by the employee of his particular functional channel and should be such that it helps improve his/her skill or knowledge for better and more efficient performance of work.

b) The qualifications must be higher than and/or additional to (i) the minimum qualifications prescribed for direct entry to the post held by the employee, or where it is a promotion post, and (ii) the qualifications already possessed by him on the date of enrollment for the course and the like.

SPONSORSHIP / STUDY LEAVE

The BAJAJ ALLIANZ CO. Scheme of "Facilities for Higher Studies" is applicable to all employees of the Company falling in either of the following categories:

Employees seeking Company Sponsorship for higher studies Employees seeking grant of Study leave for higher studies.

Company SponsorshipAll employees are eligible for this including trainees/apprentices but excluding those employees who are being employed on temporary basis. a) For courses in India employee will be entitled to Basic Pay

and D.A. as on duty during the period of study and the payment of HRA is based on classification cities which are declared by Central Government like in ‘A’ class cities the employee is entitled to have 30% of pay in Delhi and Mumbai and in other have 25% of pay while in other class cities they are entitled to have 75% of normal rates applicable to employees posted in such places.

b) The employee will be paid T.A. as per the rules of the Company laid down from time to time

c) Examination fees and other charges , if any , of the institute will also be borne by the company.

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d) An out of pocket allowance is also given to the employees but the employee will not be entitled to Bonus & Plant Performance Payment for the period of study.

STUDY LEAVE For courses in India, Study Leave is admissible to a regular employee of the Company who has rendered a minimum of 3 years service inclusive of training/apprenticeship period in the company and for courses in abroad, Study Leave is admissible to a regular employee of the Company who has rendered a minimum of 5 years of service exclusive of training apprenticeship period in the Company for courses abroad.

Study Leave is normally admissible for a maximum period of 2 years for Masters Programme and 3 years in the cases of Doctoral Programme once during the entire service of the employee subject to exigencies of work. The period of Study leave may be extended by maximum of one year in case of PG Programmes and 2 years in cases of Doctoral Programme on merits of each case. Each case of study leave abroad will require specific approval.

Study leave will not be debited to the regular leave account of the employee but the employee is not entitled to any pay or allowances during the period of study Leave.

PLANT PERFORMANCE PAYMENT

The BAJAJ ALLIANZ CO. Plant Performance Payment Scheme, introduced during 1973-74 was the result of the four year agreement concluded in the Joint Committee to rationalise and replace the diverse production incentive schemes in vogue in the various Units. The Scheme was last revised in September 1998 effective from the year 1998-99 and is valid for a period of five financial years.The formula to calculate this is as follows:

Physical Completion Actual Physical Completion       Budgeted Physical Completion

Delivery Performance & Project Completion

Actual milestone/important supplies completion during the Quarter                                                             .   Planned milestone / important supplies

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completion during the Quarter

Quality Performance For every 6% reduction in No. of NCRs w.r.t. base year weightage will be 1 sub to max. weightage of 5 for 30% and above reduction in No. of NCRs.

ENCASHMENT OF EARNED LEAVE

Encashment will be allowed to an employee normally only once in a calendar year. However, encashment of leave second time in a calendar year will be permitted in those cases where, but for second encashment, the leave would have lapsed or in entitled cases covered under rules.

Encashable portion of Earned Leave alone is encashable. The non-encashable portion of earned leave will not be allowed to be encashed unless otherwise provided specifically under the rules. Any part or whole of encashable leave can be availed of as leave and it is not necessary that it should be encashed.

No deduction other than Income Tax will be made from the amount payable to a serving employee on encashment of earned leave. However, if the encashment is for more than 30 days, Company's dues and advances will be recovered.

ENCASHMENT OF HALF PAY LEAVE

Half-pay leave is encashable normally at the time of superannuation to a regular employee. 

The maximum limit of encashment is only 480 days of Half-pay leave w.e.f  16/08/2006.

LEAVE TRAVEL CONCESSION LTC is given in 3 ways:

1. LTC ONCE IN A BLOCK OF TWO YEARS

Admissible to employee and each member of the family once in a block of two years from Headquarters to: 

i)  Home Town within India OR

ii) Any other place in India or abroad

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2. LTC ONCE IN A CALENDAR YEAR (SPLIT BLOCK FACILITY)

Admissible to employee and family in lieu of LTC once in a block of two years as per entitlements and conditions specified under the rules.  The LTC block years will be the same as under the facility of availing once in two years.  If split facility is availed once, the same facility will be available for the second time for that block of two years. 

3. LTC ONCE IN A BLOCK OF FOUR YEARS (CLUBBED BLOCK FACILITY)

Admissible to the employee and family once in a block of four years in lieu of entitlement of two blocks of LTC.

DISTANCE FROM HEADQUARTERS

(I)JOURNEYS TO HOMETOWN

EDs & ABOVE GGMs/GMs & BELOWW

1 2 3

Once in a block of two years*Employee &Family

Actual distance by shortest  route

As in Col. 2

Split facility once in a calendar year*Employee &Family

Actual distance by shortest route limited 1500KMs each way.

Actual distance by shortest route limited to 750KMs each way

JOURNEYS TO PLACES OTHER THAN HOME TOWN IN INDIA OR ABROAD

ED's & Above GGMs/GM & Below

1 2 3

Once in a block of two years

Employee & Family

Any place in India In case of travel abroad actual fare limited to fare for distance of 3000 kms

Actual fare limited to fare for distance of 1500Kms each way for any place in India or abroad.**

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Split facility once in  a calendar year

- Employee &   Family*

each way. **

Actual fare  limited to fare for distance of 1500 kms each way  for any place in India or abroad

Actual fare limited   to fare for distance of 750 kms each way for any place in India or abroad.

Clubbed facility once in a block of four years- Employee &   Family*

Any place in India In case of travel abroad actual fare limited to fare for distance of 6000 kms each way

Actual fare limited to fare for distance of 3000 kms each way for any place in India or abroad

LEAVE TRAVEL ASSISTANCE (LTA)

The employees who are eligible for Leave Travel Concession will have the option to avail LTA subject to the rules prescribed hereunder for this purpose. 

The amount admissible under LTA will be limited to the total fare as per entitlement defined under LTC subject to a maximum of five full tickets with respect to family members. AGMs will be entitled to LTA as per their Rail entitlement.

LTA will be allowed to the extent of 100% of the total fare by the entitled mode and class of travel for the entitled distance. For EDs & above the entitled distance will be 3000Kms one way.

TRANSPORT SUBSIDY

Transport Subsidy is provided to those employees who are not provided with Company accommodation and who are not in receipt of reimbursement of conveyance expenditure are entitled to payment of a transport subsidy at a rate equal to 50% of the fare by public transport/suburban train (bus) from a predetermined reference point to the normal place of duty and back. Provided that where such reference points are not determined, the employees are entitled to a specified fixed amount as transport subsidy as notified by the Management from time to time. The grant of Conveyance Allowance given to Blind and Orthopaedically Handicapped

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Employees are different from normal employees which are sanctioned by Heads of Departments.

REIMBURSEMENT OF CONVEYANCE EXPENDITURE

The scheme for reimbursement of conveyance expenditure has been introduced with a view to encourage the executives to own and maintain conveyance and to use such conveyance on journeys undertaken for official purpose.

Rates of Reimbursement

Expenditure incurred on maintenance of conveyance and use of the same in the performance of journeys on official business shall be reimbursed subject to the following limits per month.

Rate (Rs. per Month)

Grades Car Two wheelers with minimum 95 CC capacity

Two wheelers with less than 95 CC capacity

E1A & E2 2200 900 500

E3 & E4 2450 900 500

E5 to E6A 2600 900 500

E7 & Above 2950 900 500

BAJAJ ALLIANZ CO. GROUP SAVINGS LINKED INSURANCE SCHEME

The BAJAJ ALLIANZ CO. Group Savings Linked Insurance Scheme provides an insurance cover for all the regular employees and promotes savings to provide financial assistance to the employees / beneficiaries at the time of retirement or insurance cover in the event of death while in service.

Amount insured for different categories of employees is as under:

Category - Salary Grade wise Sum Assured (Rs.)

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AI/BI to A VI/B VI grades, S-0, all temporary employees recruited against regular vacancies either on daily rated wages or on consolidated wages SAI/SBI and equivalent categories.

10,000/-

AVII/BVII to AXI/BXI, SA1/SB1 to SA3/SB3, Jr. Executives

20,000/-

E1 to E4 and other equivalent grades. 40,000/-

E5 and above. 80,000/-

PREMIUM P.M.( In Rs.)

Sum Assured Monthly Premium

Risk Portion Savings Portion

10,000/- 13.50 5.00 8.50

20,000/- 27.00 10.00 17.00

40,000/- 54.00 20.00 34.00

80,000/- 108.00 40.00 68.00

ITS BENEFITSOn the death of the member while in service, the assurance benefit applicable to the category together with the amount with interest due to the credit of member employee in the running account shall become payable to the beneficiary.On reaching superannuation or earlier cessation of service other than death, the total amount of savings portion in the credit of the member employee during the period of membership together with the interest thereon shall become payable to the member employee.Contribution paid by the member employee towards the savings portion will qualify for deduction under Income Tax.

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GROUP INSURANCE SCHEME

The BAJAJ ALLIANZ Employees Group Insurance Scheme one year renewal term assurance plan provides graded insurance cover.

The coverage commences from the time of joining service to the end of calendar day of the cessation of service.

Category and  Salary Grade Sum Assured (Rs.)

AI/BI to AVI/BVI grades, S-0, all temporary employees recruited against regular vacancies either on daily rated wages or on consolidated wages

10,000/-

AVII/BVII to AXI/BXI & SAI/SBI to SAIII/SBIII, Jr. Executives

20,000/

E1 to E4 and other equivalent Grades. 35,000/-

E5 and above 50,000/-

ITS BENEFITS

On the death of the employee while in service, the category wise assurance benefit is paid to the beneficiary as appointed by the employee. The prescribed form of appointment of Beneficiary(ies) is to be signed by the employee on the date of entry to the scheme. In the event of the employee not having a family or dependents, he shall appoint legal personal representative to be his/her beneficiary. The benefit in respect of the member is strictly personal and cannot be assigned by the member.

BAJAJ ALLIANZ CO. EMPLOYEES HOUSING LOAN GROUP INSURANCE SCHEME

This scheme provides for an insurance policy available upto Rs. 15 Lakhs to cover the outstanding housing loan of employees who are the members of the scheme. In the event of death of the borrower

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employee covered under the scheme, the housing loan and interest thereon outstanding as on the date of death subject to a maximum of Rs.15 lakh will be paid by the insurer (currently LIC) to the company which in turn will adjust it against HBA and interest thereon outstanding on the date of death of employee or will pass on the same to the lending agency in case the loan has been drawn by the borrower employee.

The insurance coverage is to the total loan outstanding at the beginning of the policy year or subsequent enhancement subject to a ceiling of Rs. 15 lakhs.

In case of housing loans taken by the employees from housing finance agencies, the interest does not remain outstanding. As it accrues it is recovered every month and therefore in the event of death of the borrower, the interest does not remain outstanding and hence coverage of interest portion of the borrowing does not arise

HOUSE BUILDING ADVANCE AND INTEREST SUBSIDY SCHEME

House Building Advance (HBA) will be granted to Company employees on regular establishment with not less than five years of continuous service.

Employees working in BAJAJ ALLIANZ CO. Overseas Offices/Project Sites are also eligible for the grant of HBA for construction/acquisition of a house, ownership flat at any place of their choice in India .

Where both husband and wife are employees of the Company, the house building advance shall be admissible to only one of them.

The flat rate of housing loan interest subsidy (HLIS) to employees who themselves or whose spouses undergo sterilisation is Rs 42/- per ten thousand per month on the qualifying amount subject to fulfillment of various conditions. This will be admissible to the employees who are sanctioned interest subsidy on housing loans as per company rules under BAJAJ ALLIANZ CO. Interest Subsidy Scheme

Other Employees Insurance Policies

It consists of:

1. Group Personal Accident Policy2. OVERSEAS MEDICAL INSURANCE SCHEME

3. INDIVIDUAL PERSONAL ACCIDENT INSURANCE POLICY

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DEATH RELIEF FUND SCHEME

The BAJAJ ALLIANZ CO. Employees Death Relief Fund Scheme gives monetary assistance to the families of the members who die while in service of the company. Scheme covers all categories of employees who have voluntarily enrolled themselves as members of the scheme. The scheme is administered by a committee formed by respective unit management.

Re. 1.00 per member collected, as contribution on death of the constituent member will be paid to the next of the kin or to the provident fund nominee. Death of a member will be notified by the Personnel Department and the payment will be made within 45 days of the death.

BAJAJ ALLIANZ CO. RETIRED EMPLOYEES' CONTRIBUTORY HEALTH SCHEME

The scheme is intended to extend medical cover to the retired BAJAJ ALLIANZ CO. employee and his/her spouse and spouse of an employee who dies while in service, subject to the certain conditions.

The beneficiaries will also be entitled to the medical attendance and treatment from other panel Doctors, including Specialists to whom they are specially referred for consultation/treatment by the Company Doctors. The medicines prescribed by the outside Doctors in such cases will, however, be supplied to the beneficiaries only from the Company hospitals/dispensaries, and no reimbursement will be allowed for purchases of medicines or payment for diagnostic tests etc.However, expenditure incurred on consultations, diagnostics test and medicines in emergencies/odd hours/problems of logistics will be reimbursed upto Rs.1,000/- in a financial year on submission of prescriptions and cash memos. The reimbursement of these charges will be done as per rates prescribed in BAJAJ ALLIANZ CO. Schedule. This amount can be claimed on conclusion of the financial year.

SPECIAL INCENTIVE PAYMENT

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Employees who are not eligible for Bonus under the Payment of Bonus Act are paid Special Incentive. The payment on this account is linked to the performance under the MOU and is regulated as per the categorisation of the Company's performance by the Government.

ANNUAL PAYMENT OF BONUS

Annual Payment of Bonus in the Company is regulated strictly in accordance with the provisions of the Payment of Bonus Act, 1965, as amended from time to time. The rates of bonus are computed with reference to and on the basis of the statements of accounts maintained by the manufacturing units.

FESTIVAL ADVANCE

The festival advance up to the limit of one month basic pay will be admissible only for the following festivals: 1. Pongal 2. Republic Day 3. Id-ul-fitr 4. Holi 5. Ram Naumi 6. Id-ul-zuha 7. Vaikasi Visakam (for Tiruchy only) 8. Muharram 9. Independence Day 10. Janam Ashtami 11. Ganesh Chaturthi 12. Onam 13. Dussehra 14. Diwali 15. Guru Nanak's Birthday (in units other than Tiruchy) 16. Christmas

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VEHICLE ADVANCE

FIRST ADVANCE 1. Motor Car: The amount of advance is limited to 35 months basic pay or Rs.1,20,000 or the anticipated cost of the motor car whichever is the least. The advance and interest thereon is recoverable in not more than 200 equal monthly instalments or remaining number of months available for recovery till superannuation whichever is less. 2. Motor Cycle/Scooter: The amount of advance is limited to Rs.15000/- or the anticipated cost of the vehicle whichever is less . The amount of advance and interest thereon is recoverable in not more than 90 equal monthly instalments or remaining number of months available for recovery till superannuation whichever is less. 3. Moped (such as Luna/Suvega/Vicky etc.): The amount of advance is limited to Rs.9000/-, or anticipated cost of the vehicle whichever is less. The amount of advance and interest thereon is recoverable in not more than 80 equal monthly instalments or remaining number of months available for recovery till superannuation whichever is less.SECOND OR SUBSEQUENT ADVANCE1. Motor Car: The amount of advance is limited to Rs.90,000/- or 25 months' basic pay or the anticipated cost of the motor car whichever is the least. The amount of advance and interest thereon is recoverable in not more than 150/-monthly instalments or remaining number of months available for recovery till superannuation, whichever is less. 2. Motor Cycle/Scooter: The amount of advance is limited to Rs.11,500/- or the anticipated cost of the vehicle whichever is less. The amount of advance and interest thereon is recoverable in not more than 75 equal monthly instalments or remaining number of months available for recovery till superannuation, whichever is less.3. Moped : The amount of advance is limited to Rs.7000/- or anticipated cost of the vehicle, whichever is less. The amount of advance and interest thereon is recoverable in not more than 60 equal monthly instalments or remaining number of months available for recovery till superannuation whichever is less.

OTHER MISCLANEOUS BENEFITS

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BAJAJ ALLIANZ CO. also provides various facilities to the members of BAJAJ ALLIANZ CO. teams for participation in inter-unit events and National/State level games. These facilities are as follows:

a) Scale of Kitb) Refreshmentsc) Prizesd) Travel/DA Entitlemente) Cash allowancef) Time-offg) Sports coordinators/Team managerh) Out of pocket expenses

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CHAPTER- 6

RESULT ANALYSIS

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Q1. Are you aware of the benefits given in your company?

Complete 16Partial 24Not at all 0

Awareness of the welfare activities among employes

Complete40%

Partial60%

Not at all0% Complete

Partial

Not at all

Q2. What is the satisfaction level gained by these benefits?

Only 40% employees at BAJAJ ALLIANZ CO. are completely aware about the welfare schemes providing by the company rest 60% are partially aware about the same100% 8Upto 50% 22Below 50% 8

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Only 21% employees are completely satisfied with the welfare activities running in the company and 21% employees satisfaction level is below 50%. Majority of the employees i.e. 58% are satisfied only up to 50% by the welfare schemes by BAJAJ ALLIANZ CO..

Q3. Are present welfare activities sufficient to benefit employees?

Satisfaction level gained by the employees by benefits

21%

58%

21%100%

Upto 50%

Below 50%

Yes 6Upto certain level 26No 7

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Welfare activities sufficient to benefit employee

15%

67%

18%Yes

Upto certainlevel

No

Just 15% of the employee agrees that these welfare schemes are sufficient to benefit them and 67% says that these activities help only upto certain level rest 18% disagrees that these schemes benefits them in any respect.

Q4. Is sum assured under Group Insurance Scheme adequate?

Sum assured under Group Insurance Scheme adequate

8%

66%

26% Yes

To some extent

No

Yes 3To some extent 26No 10

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Only 8% of BAJAJ ALLIANZ CO. employees are satisfied with the Sum assured under Group Insurance Scheme 66% of them says that it is adequate only to some extent and rest 26% are dissatisfied with this amount.Under social obligation, Housing Loan Facility and Interest Subsidy thereon is provided.

Q5. Are you satisfied with this?

Employee satisfaction from Housing Loan Facility and Interest Subidy

43%

47%

10%Fully satisfied

Partially satisfied

Dissatisfied

43% of the employees are satisfied with the Housing Loan Facility and Interest Subsidy provided by the company. 47% are partially satisfied and only a few i.e. 10% are not satisfied with this facility.

Q6. Is Company Leased Accommodation provided up to certain grade of executive appropriate?

Fully satisfied 17Partially satisfied 19Dissatisfied 4

Yes 15Partially 12No 13

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Is Company Leased Accomadation provided upto

certain grade of executive approprite

37%

30%

33% Yes

Partially

No

37% of the employees says that Company Leased Accommodation provided up to certain grade of executive is appropriate. 30% are partially satisfied while 33% are against this provision.

Q7. Are you satisfied with LTC facility of the company?

31% employees are completely satisfied with the LTC facility 36% are partially satisfied and the rest 33% are not satisfied with the LTC facility.

Q8. Are you satisfied with medical facility of the company?

Yes 12Partially 14No 13

Satisfied 35Partially satisfied 2Dissatisfied 2

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Satisfaction of employees with Medical Facility

90%

5% 5%Satisfied

Partiallysatisfied

Dissatisfied

90% Employees at BAJAJ ALLIANZ CO. are satisfied with the medical facility provided by the company. Only 5% of the employees are partially satisfied and 5% are not satisfied.

Q9. Does Company has any system to review the satisfaction level about welfare measures for employees?

Yes 4No 16Don't know 15

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Company has any system to review the satisfaction level of

employee

11%

46%

43%Yes

No

Don't know

Only 11% says that Company has system to review the satisfaction level about welfare measures for employees while 46% disagrees to this whereas 43% doesn't know anything related to this.

Q10. To what extent these benefits help in providing motivation?

Large extent 12Upto certain level 25Doesn't help 2

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31% of the employees agrees that this welfare scheme provide motivation to them whereas 64% people say that these scheme provide motivation only to some extent while 5% say that they are not motivated through any of these schemes.

Q11. What criteria should be considered while deciding these benefits?

Benefits help in providing motivation

31%

64%

5%Large extent

Upto certainlevel

doesn't help

Monetary 11Motivation 18Social Security 12Recognition 3

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Majority of the employees i.e. 41% want that while deciding about welfare schemes MOTIVATION should be considered. 27% and 25% of the employee want it to be SOCIAL SECURITY and MONETARY respectively and only 7% of them say that it should be RECOGNITION.

Criteria should be considered while deciding Benefits

25%

41%

27%7% Monetary

Motivation

Social Security

Recognition

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CHAPTER 7

CONCLUSION

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The above welfare schemes are providing satisfaction to the employees in terms of:-

VARIOUS BENEFITS CATEGORY OF SATISFACTION

BAJAJ ALLIANZ CO. Group Savings Linked Insurance Scheme

Social security and Monetary benefit to Family.

Group Insurance Scheme Social Welfare and

Monetary benefit.

BAJAJ ALLIANZ CO. Employees Housing Loan Group Insurance Scheme

Social Welfare and

Monetary benefit.

Group Personal Accident Policy Social Welfare

Leave Travel Concession Social Welfare

Leave Travel Assistance (LTA) Social Welfare

Leave Encashment Motivation

Scheme For Reimbursement Of Conveyance Expenditure For Executives

Monetary benefit.

Death Relief Fund Scheme Social Welfare

Scheme For Cash Award For Acquiring Higher/ Additional Qualifications

Motivation and

Monetary benefit.

Festival Advance Monetary benefit

Grant Of Conveyance Allowance To Blind And Orthopaedically

Monetary benefit

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Handicapped Employees

Washing Allowance Monetary benefit

Foreign Tours Monetary benefit

Transfer TA On Retirement/Death Monetary benefit

Annual Payment Of Bonus Monetary benefit

BAJAJ ALLIANZ CO. EXCEL Awards Scheme

Motivation and

Monetary benefit

Children Education Allowance Monetary benefit

Gift Vouchers For The Employees Monetary benefit

House Building Advance And Interest Subsidy Scheme

Monetary benefit

According to the data analyzed, the present benefits running in the company are not providing that level of satisfaction which is expected. The employees are not fully aware about some of the schemes provided to them by the company. Therefore, the lack of awareness doesn't let these schemes to be utilized in a proper way. There is a need for improvement in these schemes. But these schemes do provide motivation up to some extent to the employees.

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EMPLOYEES VIEWS:

There shall be an executive club in BAJAJ ALLIANZ CO. as the same exists in other BAJAJ ALLIANZ CO. units.

Allowances may be increased which should not have tax liability. Interest free advances like festival advance should be provided

for miscellaneous domestic capital expenditure LTC facility should be allowed through air for all executives. Vehicle loan facility upto 90% of the vehicle cost should be

provided with nominal interest rate. Working condition to be further improved. Membership to clubs, sports compex should be provided under

corporate scheme on payment of nominal fees to promote sports activities amongst employees and their families.

Condition of housing accomodation should be improved. The education subsidy should be provided to the college going

children also. The medical facility should be provided to the dependent parents

who were govt. employees and getting pension provided they furnish certificate that they are not claiming medical facility from any other source.

SUMMARY AND IMPLICATIONS FOR MANAGERS

Why is it important to know an individual’s values? Although they don’t have direct impact on behaviour, values strongly influence a person’s attitudes. So knowledge of an individual’s vale system can provide insight into his or her attitudes.Given that people’s values differ, managers can use the Rokeach Value Survey to assess potential employees and determine if their values align with the dominant values of he organization. An employee’s performance and satisfaction are likely to be higher if his or her values fir well with the organization. For instance, the person who places high importance on imagination, independence, and freedom is likely to be poorly matched with an organization that seeks conformity from its employees. Managers are more likely to appreciate, evaluate positively, and allocate rewards to

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employees who “fit in, “ and employees are more likely to be satisfied if they perceive that they do fir in. This argues for management to strive during the selection of new employees to find job candidates who not only have the ability, experience, and motivation to perform, but also a values system that is compatible with the organization’s.Managers should be interested in their employees attitudes because attitudes given warnings of potential problems and because they influence behaviour. Satisfied and committed employees, for instance, have lower rates of turnover and absenteeism. Given that managers want to keep resignations and absences down-especially among their more productive employees- they will want to do the things that will generate positive hob attitudes.Managers should also be aware that employees will try to reduce cognitive dissonance. More important, dissonance can be managed. If employees are required to engage in activities that appear inconsistent to them or that ae at odds with their attitudes, the pressures to reduce the resulting dissonance are lessened when the employee perceives that the dissonance is externally imposed and is beyond his or her control or if the rewards are significant enough to offset the dissonance.

Managers Can Create Satisfied EmployeesA review of the evidence has identified four factors conductive to high levels of employee hob satisfaction: mentally challenging work, equitable rewards, supportive working conditions, and supportive colleagues. Importantly, each of these factors is controllable by management.Mentally challenging work. People prefer hobs that give them opportunities to use their skills and abilities and offer a variety of tasks, freedom, and feedback on how well they’ re doing. These characteristics make-work mentally challenging.Equitable rewards. Employees want pay systems and promotion policies that they perceive as being just, unambiguous, and in line with their expectations, when pay is seen as fair based on hob demands, individual skill level, and community pay standards, satisfaction is likely to result. Similarly employees seek fair promotion policies and practices. Promotions provide opportunities for personal growth, more responsibilities, and increased social status. Individuals who perceive that promotion decisions are made in a fair and just manner, therefore, are likely to experience satisfaction from their jobs.

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Supportive working conditions. Employees are concerned with their work environment for both personal comfort and facilitating doing a good job. Studies demonstrate that employees prefer physical surroundings that are not dangerous or uncomfortable. In addition, most employees prefer working relatively close to home, in clean and relatively modern facilities, and with adequate tools and equipment.Supportive colleagues. People get more out of work than merely money or tangible achievements. For most employees, work also fills the need for social interaction. Not surprisingly, therefore, having friendly and supportive co-workers leads to increased job satisfaction. The behaviour of one’s boss is also satisfaction. The behaviour of one’s boss is also a major determinant of satisfaction. Studies generally find that employee satisfaction is increased when the immediate supervisor is understanding and friendly, offers praise for good performance, listens to employees opinions and shows a personal interest in them. The notion that managers and organizations can control the level of employee job satisfaction is inherently attractive. It fits nicely with the view that managers directly influence organizational processes and outcomes. Unfortunately there is a growing body of evidence that challenges the notion that mangers control the factors that influence employee job satisfaction. The most recent findings indicate that employee job satisfaction is largely genetically determined.

Whether a person is happy or not is essentially determined by his or her gene structure. Approximately 80 percent of people’s differences in happiness, or subjective well being, have been found to be attributable to their different genes.Analysis of satisfaction data for a selected sample of individuals over a 50 year period found that individual’s results were consistently stable over time, even when these people changed employers and occupations. This and other research suggests that an individual’s disposition toward life- positive or negative – is established by his or her genetic make- up, holds over time, and carries over into his or her disposition toward work.Given these findings, there is probably little that most mangers can do to influence employee satisfaction. In spite of the fact that mangers and organizations go to extensive lengths to try to improve employee hob satisfaction through actions such as manipulating job characteristics, working conditions, and rewards, these actions are likely to have little effect. The only place where mangers will have any significant influence will be

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through their control of the selection process. If mangers want satisfied workers, they need to make sure their selection process screens out the negative maladjusted, trouble- making fault- finders who derive little satisfaction in anything about their jobs.

CHAPTER 8

SUGGESTIONS

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The benefits should be made more friendly so as to provide full satisfaction.

Programmes should be tailored as per the needs of the employees in the company in order to aware the employees about the benefits provided by the company.

Programmes giving details about the various benefits provided by the company and its implications should be conducted on regular basis.

Most BAJAJ ALLIANZ CO. employees want motivation as the criteria in addition to monetary and social security. Hence this should be followed.

The welfare schemes should be made more transparent.

In comparison to other companies what extra benefits the employees are getting should be made clear to them.

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Chapter-9

LIMITATIONS

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The study has been confined to a period of 60 days. Hence it cannot reveal the exact trends of Welfare Schemes and opinion of all employees.

Sample size being small not everybody’s view could be considered.

Problem parting with the confidential information.

There is a great tendency of fluctuation in the response and their behavior.

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CHAPTER 10

BIBLIOGRAPHY

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Books Chhabra N.T, Human Resourse Management,Dhanpat Rai & Co., 2006

Other Sources Citehr.com Nhrd.com Peoplelinks.com Icfaipress.com

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