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Thursday, 26 May 2011

SCDL MBA PROJECT - EMPLOYEE SATISFACTION


‘People are our greatest asset’ is a mantra that companies have been chanting for years. But only a few companies have started putting Human Resources Management (HRM) systems in place that support this philosophy. There are a number of challenges in the Indian industry which require the serious attention of HR managers to ‘find the right candidate’ and build a ‘conducive work environment’ which will be beneficial for the employees, as well as the organization. The industry is already under stress on account of persistent problems such as attrition, confidentiality, and loyalty. Other problems are managing people, motivation to adopt new technology changes, recruitment and training, performance management, development, and compensation management. With these challenges, it is timely for organizations to rethink the ways they manage their people. Managing HR in the knowledge based industry is a significant challenge for HR managers as it involves a multi task responsibility. In the present scenario, HR managers perform a variety of responsibilities. Earlier their role was confined to administrative functions like managing manpower requirements and maintaining rolls for the organization. Now it is more strategic as per the demands of the industry.

Managing People

In view of the industry dynamics, in the current times, there is a greater demand for knowledge workers. Resumes abound, yet companies still fervently search for the people who can make a difference to the business. Often talented professionals enjoy high bargaining power due to their knowledge and skills in hand. The attitude is different for those who are taking up responsibilities at a lesser age and experience. These factors have resulted in the clear shift in approach to individualized career management from organization career commitment.

Motivating the Workforce

As the competition is growing rapidly in the global market, a technological edge supported by a talent pool has become a crucial factor for survival in the market. Naturally, as a result every organization gives top priority to technology advancement programs. HR managers are now performing the role of motivators for their knowledge workers to adopt new changes.


Competency Development

Human capital is the real asset for any organization, and this makes the HR role important in recruiting, managing, and retaining the best. The HR department has a clear role in this process and determines the success tempo of any organization. An urgent priority for most of the organizations is to have an innovative and competent HR pool; sound in HR management practices with strong business knowledge.

Recruitment and Training

Recruitment has become a major function from an imperative sub system in HR, particularly in the industry. HR managers play a vital role in creating assets for the organization in the form of quality manpower. Attracting new talent also is a top priority for software companies, but less so for smaller companies. Another challenge for HR managers is to put systems in place to make the people a perfect fit for the job. Skill redundancy is fast in the industry. To overcome this problem, organizations give the utmost priority to training and skill enhancement programs on a continuous basis. Many companies are providing technical training to the employees on a quarterly basis. These trainings are quite useful also in terms of providing security to the employees.

The Trust Factor

Low levels of trust inhibit tacit knowledge sharing in the knowledge based industry. It is essential that Our Company takes more initiatives to improve the security levels of the employees.

Work life Balance Factor

Another dimension to the challenges faced by our company is the growing pace of talent acquisition. This aspect creates with it the challenge of a smoother assimilation and the cultural binding of the new comers into the organization fold. The pressure of delivering the best of quality services in a reduced time frame calls for ensuring that employees maintain a work life balance.







Attrition/Retention of the Talent Pool

One of the toughest challenges for the HR managers in the industry is to deal with the prevalent high attrition levels. Though there is an adequate supply of qualified staff at entry level, there are huge gaps in the middle and senior level management in the industry. Further, the salary growth plan for each employee is not well defined. This situation has resulted in increased levels of poaching and attrition between organizations. The industry average attrition rate is 30–35 per cent and could range up to 60 per cent.

Bridging the Demand Supply Gap

HR managers have to bridge the gap between the demand and supply of professionals. They have to maintain consistency in performance and have to keep the motivation levels of employees high, despite the monotonous nature of work. The same also leads to recurring training costs. Inconsistent performance directly affects revenues. Dwindling motivation levels lead to a loss of interest in the job and a higher number of errors.
































INTRODUCTION

                                                 


















Introduction to the Organization


          Founded in 1992, Su-Kam is India’s biggest producer and supplier of power inverters. With the largest market share, Su-Kam products have set benchmarking standards for the Industry. Indeed, the company has played a seminal role in consolidating and upgrading the inverter industry from the unorganized to the organized sector, thereby adding immense value to the industry as a whole. Su-Kam offers a wide range of inverters and is the only Indian company to produce 100 KVA inverters. It has established itself as a leader in product innovation, design sensibility and sales distribution network.
          Su-Kam has successfully expanded into other technology driven products like UPS systems and has made its presence felt in the field of batteries – both lead acid and VRLA.
          A continuing focus on quality and adherence to international standards has enabled Su-Kam to export its products to various overseas markets across Asia, Africa, the Middle East and the Pacific region. At the core of Su-Kam’s growth are the twin values of innovation and customer engagement. The intense focus on R&D enables us to continuously develop new products to meet present and anticipated customer needs and to provide cost effective solutions of power generation. Su-Kam is developing a range of solar products with capability to run homes, offices, residential complexes a pointer to its futuristic vision and commitment to the environment. The wide dealer network, the largest for a company in the industry, and efficient Customer Care Service ensure prompt and effective solutions and after sales service for true ‘Customer Engagement’. Su-Kam’s robust business model has now been recognized globally also.

          All systems at Su-Kam are fully validated by independent international organizations. Su-Kam is the only Indian company in the power solutions business to receive:

§     ISO 9001:2000 for its Quality management system.

§     ISO 14001:2004 for its Environment management of production.

§     20 Products patents. Applications for 10 more have been submitted.

§      

§     CE (Coformite European) and UL (Underwriters laboratories) certification for its products.

§     In-house R&D recognition from the Government of India.

Kunwer Sachdev is the CEO of Su-Kam Power System Limited and is responsible for the vision and strategic direction of the company.















































EMPLOYEE SATISFACTION



















EMPLOYEE SATISFACTION


          What does the term Satisfaction imply to an employee? It implies nothing else than the feeling of either being contended or non-contended on using a product.
            Employee Satisfaction is a prerequisite for the customer satisfaction.
Enhanced employee satisfaction leads to higher level of employee retention.
A stable and committed workforce ensures successful knowledge transfer, sharing, and creation --- a key to continuous improvement, innovation, and knowledge-based total customer satisfaction.
           When companies are committed with providing high quality products and services; when companies set high work standards for their employees; and when employees are empowered through training and development, provided with knowledge and information, permitted to make mistakes without punishment, and trusted; they will experience an increase in their level of satisfaction at work.
This level of satisfaction can be enhanced further if teamwork and visionary leadership are introduced.
           Continuous improvement comes from the efforts of the empowered employees motivated by visionary leadership. This is supported by the findings that empowerment and visionary leadership both have significant correlation with employee satisfaction. Teamwork is also supported by the findings. In addition, the study found significant correlation between employee satisfaction and employee’s intention to leave.
          The success of a corporation depends very much on customer satisfaction. A high level of customer service leads to customer retention, thus offering growth and profit opportunities to the organization. There is a strong relationship between customer satisfaction and employee satisfaction. Satisfied employees are more likely to stay with company and become committed and have more likely to be motivated to provide high level of customer service, by doing so will also further enhance the employee’s satisfaction through feeling of achievement. Enhanced employee satisfaction leads to improved employee retention; and employee stability ensures the successful implementation of continuous improvement and customer satisfaction. Customer satisfaction will no doubt lead to corporate success and greater job security. These will further enhance employee satisfaction. Therefore, employee satisfaction is a prerequisite for customer satisfaction.




















RESEARCH & METHODOLOGY

                                             














Research Methodology

Objectives:
                    
The study is conducted with the following objectives:
1.            To discover the various expectations that determine the satisfaction level of employee.
2.            To rank the factors according to the importance.
3.            To measure the level of satisfaction of employees with respect to the company.


Employee Satisfaction Measurement

Employee satisfaction has been defined as a function of perceived performance and expectations. It is a persons’ feeling of pleasure or disappointment resulting from comparing a products’ outcome to his/her expectations.
                If the performance (Company Services) falls short of expectations, the employee is dissatisfied and if it matches the expectations, the employee is    satisfied. A high satisfaction implies more purchase/use of the product or service. The process is however, more complicated then it appears. It is more important for any organization to offer high satisfaction, as it reflects high loyalty and it will not lead to switching over once a better offer comes in.


Tools for tracking and measuring customer satisfaction:
1.           Complaint and Suggestion System: Employee can freely deliver complaints and suggestions through facilities like suggestion box, personal meetings with seniors etc.

2.           Lost Employee Analysis: The exit interviews are conducted or employee loss rate is computed.

3.           Employee Satisfaction Survey: Periodic surveys by use of questionnaire or telephone calls to random sample of recent buyer help to find out customer satisfaction and relate to repurchase intention and word of mouth score.


Technique

          To uncover the important attributes which determine the satisfaction level of the employee with respect to the various services catered by the company, a non-structured in-depth interview of employee selected by convenience is carried out. Then a list of attributes is finalized keeping in mind that an attribute once selected is not repeated on being encountered for the second time.

Scale Construction

          On the basis of attributes which have been identified, a questionnaire is prepared which is analyzed for two parameters separately i.e. satisfaction and importance.
         To each question, there are 5 possible answers out of which one is to be ticked. In case of component pertaining to satisfaction, the respondent has to give a response in terms of highly satisfied, very satisfied, satisfied not so satisfied or dissatisfied.
         In case of component pertaining to satisfaction, the respondent has to give a response in terms of critical, very important, important, not so important and not at all important. The response for each question in either component of satisfied to dissatisfied and from critical to not at all important, respectively.

Data Collection and Analysis

          Exhaustive list of all the employee is obtained. A sample size of 50 is chosen to be representative of the population (nearly 10%). Sample interval is determined by dividing total no. of employee by the sample size (=26.32).Every tenth individual appearing in the exhaustive list is then selected. Samples drawn are used to collect data pertaining to employees’ satisfaction as well as importance towards the 15 attributes listed.

The results are then categorized on the basis of
1.            Total Respondents.
2.            Department wise.
3.            Salary Wise.

          For each category, the respondents are selected and then averages of satisfaction and importance are computed for each question respectively. Then the product of corresponding averages is computed to give the satisfaction index.



The formula computation of satisfaction index is:
                                

  Satisfaction Index = Sum of Average Satisfaction(S) x Average importance (i)
                                                     Sum of Average Importance (i)
                                                                 


                                =SXi
                                      ∑i


                        

Table 1: TOTAL STRENGTH OF THE EMPLOYEES IN THE COMPANY


DEPARTMENT
SU-KAM POWER SYSTEM LTD.

MALE
FEMALE
TOTAL
HR & Administration
15
6
21
Accounts
15
20
35
Power Division
20
10
30
Sales & Marketing
200
30
230
Service
350
30
380
Customer Care
150
100
250
IT & ERP
20
15
35
Total
770
211
1231




SU-KAM POWER SYSTEM LTD                                   MALE FEMALE
875                  441

TOTAL STRENGTH                                                   1316

SAMPLE SIZE                                                          50

SAMPLE INTERVAL                                                  (1231/50) = 24.62







Table 2: STRENGTH OF EMPLOYEES OF SU-KAM IN PERCENTAGE


Percentage of HR & Administration employee
1.70
Percentage of Accounts Dept. employee
2.84
Percentage of Power Division employee
2.43
Percentage of Sales & Marketing employee
18.68
Percentage of Service employee
30.86
Percentage of Customer Care employee
20.30
Percentage of It & ERP employee
2.84
                        















ANALYSIS & INTERPRETATION


















Analysis and Interpretation


1)  Listing of Important Attributes
     Using the in depth interview technique, numbers of attributes were determined which affect the levels of satisfaction of employees with respect to the company.


2) Ranking as per Importance
       Ranking is done after analyzing all the attributes for the given sample that which one has more importance and which one is least important.


3) Variation in Satisfaction
      It includes two different ways:
Satisfaction level of the total respondents.
Department wise analysis of satisfaction level.
Salary wise analysis of satisfaction level.



Note: The satisfaction scale ranges from a score of 5 for ‘Highly Satisfied’ to a score of 1 for ‘Dissatisfied’. ‘Importance’ scale ranges from a score of 5 for critically important to a score of 1 for not at all important.























TABLE 1: SATISFACTION INDEX FOR THE EMPLOYEES IN
SU-KAM POWER SYSTEMS LTD

S.No
Questions
Average Satisfaction
(S)
Average Importance
(i)
Sxi
1
Working Environment
2.06
3.44
7.086
2
Convenient Work Location
1.68
4.48
7.526
3
Recognition for the work done
2.9
3.72
10.79
4
Friendly working environment
2.76
3.9
10.76
5
Opportunities for flexible working
2.44
4.04
9.858
6
Working in dynamic organization
2.54
3.78
9.601
7
Working in reputed organization
2.24
4.06
9.094
8
Interesting and Enjoyable Work
2.00
3.12
6.24
9
Work that gives a sense of achievement
2.40
3.14
7.536
10
Working with young people
1.86
4.2
7.812
11
Job security
3.00
3.78
11.34
12
Opportunities for personal development
2.98
3.74
11.15
13
Opportunities for Promotion/career Prospects
2.84
3.8
11.02
14
Fair payment for the work done
1.76
3.34
5.878
15
Good Policies
3.16
3.24
10.24
Sum


55.78
135.931

Satisfaction Index = Sum of Average Satisfaction(S) x Average importance (i)
                                                     Sum of Average Importance (i)
                                                                 

                             = SXi   =    135.931     =    2.436
                                  ∑i               55.78  

                                                                

Note: The satisfaction scale ranges from a score of 5 for ‘Highly Satisfied’ to a score of 1 for ‘Dissatisfied’. ‘Importance’ scale ranges from a score of 5 for critically important to a score of 1 for not at all important.







Figure 1