CHAPTER 1

INTRODUCTION OF JOB SATISFACTION 1.1 Abstract

Job satisfaction represents one of the most complex areas facing todays managers when it comes to managing their employees. Many studies have demonstrated an unusually large impact on the job satisfaction on the motivation of workers, while the level of motivation has an impact on productivity, and hence also on performance of business organizations. Unfortunately, in our region, job satisfaction has not still received the proper attention from neither scholars nor managers of various business organizations. Keywords: job satisfaction.

1.2 Introduction
Job satisfaction in regards to ones feeling or state of mind regarding nature of their work. Job can be influenced by variety of factors like quality of ones relationship with their supervisor, quality of physical environment in which they work, degree of fulfillment in their work, etc. Positive attitude towards job are equivalent to job satisfaction where as negative attitude towards job has been defined variously from time to time. In short job satisfaction is a persons attitude towards job. Job satisfaction is an attitude which results from balancing & summation of many specific likes and dislikes experienced in connection with the job- their evaluation may rest largely upon ones success or failure in the achievement of personal objective and upon perceived combination of the job and combination towards these ends. According to Pestonejee, Job satisfaction can be taken as a summation of employees feelings in four important areas. These are: 1.Job-nature of work (dull, dangerous, interesting), hours of work, fellow workers, opportunities on the job for promotion and advancement (prospects), overtime regulations, interest in work, physical environment, and machines and tools. 2.Management- supervisory treatment, participation, rewards and punishments, praises and blames, leaves policy and favoritism. 3.Social relations- friends and associates, neighbors, attitudes towards people in community, participation in social activity socialibility and caste barrier. 4.Personal adjustment-health and emotionality. Job satisfaction is an important indicator of how employees feel about their job and a predictor of work behavior such as organizational citizenship, Absenteeism, Turnover. Generally, the level of job satisfaction seems to have some relation with various aspects of work behavior like absenteeism, adjustments, accidents, productivity and union recognition. Although several studies have shown varying degrees of relationship between them and job satisfaction, it is not quite clear whether relations are correlative or casual. In other words, whether work behavior make him more positively inclined to his job and there would be a lesser possibility of
-1-

getting to an unexpected, incorrect or uncontrolled event in which either his action or the reaction of an object or person may result in personal injury.

1.3 Review of Literature

Sahoo & Sundaray (dspace.nitrkl.ac.in/.../Job+Satisfaction+and+Employee+Retention.pdf) It has been observed that if managers do not pay attention to various factors which influence job satisfaction, it is likely to result in job dissatisfaction and ultimately may result in employee turnover. The satisfied employees can be motivated and a sense of commitment can be instilled within them, has to percolate down the organizational hierarchy. The top management has to be convinced about the benefits of retention as well as the disadvantages of high employee turnover. Supervisors or line managers have to be involved and encouraged to create a culture that facilitates employee satisfaction. Fair and unbiased performance appraisal must be done based on which compensation, benefits, promotion and rewards should be provided. Managers need to shed some degree of control and responsibility in favour of workers by empowering and involving them in important areas of decision-making such as goal setting, deciding about work procedures and selecting team-mates. Monotonous and repetitive work could be made challenging and interesting by adding variety. Sufficient opportunities may be provided to the employees to gain knowledge and develop their skills by sponsoring them to various in-house and other training programmes. At the same time, opportunities must be provided to the employees to use their learnt skills. Besides, the role and responsibility of each employee must be clearly spelt out so that he knows exactly what is expected of him. This would reduce role ambiguity and role conflict, thereby reducing stress and indirectly contributing to satisfaction. Steps may also be taken to strike a balance between work life and family life of the employees to reduce stress and provide more time off to attend family issues. If organizations and immediate supervisors fail to realize their responsibility towards maintaining a satisfied workforce, it is quite obvious that employees will leave for greener pastures, since talented employees are sought after by competitors. In the studies conducted by Behera,

Hoppock (1935). In his reviewed studies on job satisfaction conducted prior to 1933 & observed that job satisfaction is a combination of psychological, physiological & environmental circumstances that cause a person to say. 'I am satisfied with my job'. To the extent that a person's job fulfils his dominant need & is consistent with his expectations & values, the job will be satisfying. Hoppock defined job satisfaction as any combination of psychological, physiological and environmental circumstances that cause a person truthfully to say I am satisfied with my job. According to this approach although job satisfaction is under the influence of many external factors, it remains something internal that has to do with the way how the
-2-

employee feels. That is job satisfaction presents a set of factors that cause a feeling of satisfaction. Based on the studies undertook by Hackman & Oldham (1976) job enrichment leads to motivation and high level of job satisfaction as compare to traditional specific jobs .According to them, Job enrichment encourage workers to learn, develop and do innovative experiments at work, by that it helps to boost up the morale and motivation of workers . They suggested that, when an employee knows that he alone completed the task which is important for him by implementing his own skills and knowledge, this will lead to motivation. They also observed the impact of job enrichment on employees and found that job enrichment lead to a significant increase in employees job satisfaction, internal motivation and job involvement. According to Lawler & Ledford (1992) Today's organizations and their employees require adaptively more rapidly to the changing world so that they may face the new challenges more comprehensively. It is applied on both private and public organizations. In the modern working life employees need to be very clear regarding what to do and how to do and this can only be done by empowering them through autonomy. The popular definition of Job satisfaction that has been made reference to in the literature is that advanced by Locke, (1976). He defined the concept of job satisfaction as a pleasurable or positive emotional state resulting from the appraisal of ones job or job experiences. Locke further argues that the satisfaction is achieved when one realizes ones important job values provided these are congruent with or help to fulfill ones basic needs. The values or conditions conducive to job satisfaction are: Mentally challenging work which the individual can cope successfully. Personal interest in the work itself . Work that is not too physically tiring. Rewards for performance that are just, informative and in line with the individuals personal aspirations. Working conditions that are compatible with the individuals physical needs and that facilitate the accomplishment of his work. High self esteem on the part of the employee. Agents in the work place who help the employee to attain job values such as interesting work, pay and promotions, whose basic values are similar to his own, and who minimize role conflict and ambiguity.

-3-

Lockes definition in this case incorporates both Maslows (1954) hierarchy of human needs and Hertzbergs (1960, 1976) two- factor theory. However the list of values reads more like a long shopping list that is also cosmetic in nature because at the end of it all it is rather difficult to understand what job satisfaction really means. McGue and Gianakis (1997), define job satisfaction by conceptualizing it. They highlight the elements of job satisfaction that include the actual work and its outcomes, or intrinsic job satisfaction pay, benefits and other rewards directly associated with doing the work, or extrinsic job satisfaction. Included also is the environment in which the work is done, including relations with coworkers, organizational culture, the organizations policies and procedures, participation in decision making, involvement with the organization, and job status. That definition encompasses almost every theme that describes employees attitudes. Mc Shane & Glinow, (2005)Job satisfaction refers to how employees perceive their jobs. It is an emotional state resulting from experiences at work. If employees experience high satisfaction with their jobs, it may create a pleasurable emotional state and a positive reaction with the organization. Nemko (2008) Recently, U.S. News & World Report named Clergy as one of the top 30 careers in 2009. Five criteria were considered: job outlook, job satisfaction, difficulty of required training, prestige, and pay . Many of the 30 Best Careers were in helping professions including firefighter, physical therapist, registered nurse, school psychologist, and veterinarian among others . Marty Nemko (2008c) noted that being a cleric isnt a job its a life and that you must be able to inspire others through word and deed, especially at critical moments in life. This may seem to be a tall order and may be one of the reasons many expect clergy to be burned out. Much of the research on job satisfaction in clergy has been on burnout and emotional exhaustion. Raza & Nawaz (2011). The ever changing nature of work demands flexible employees who can anticipate rather than mere react to the changing nature of work more efficiently, effectively and innovatively. This can only be done by giving them more autonomy and freedom. Job enrichment is a type of job design that allows such autonomy and freedom. Sousa-Poza(2000) suggest job satisfaction is determined by the balance between inputs and out puts. According the concept, human has basic and universal needs and that, individual needs are fulfilled in their current situation, and then that individual will be happy. Job satisfaction depends on balance between work role inputs (pain)- like education, working time, effort, and work out puts(pleasures) like wages, fringe benefits, status, task importance, working conditions, and intrinsic aspects of the job. If work outputs (pleasures) are relative to work role inputs (pains).

-4-

1.4 Models of Job Satisfaction

Christen, Iyer and Soberman (2006) provide a model of job satisfaction presented in Figure 1 in which the following elements are included: Job related factors, Role perceptions, Job performance and Firm performance.

Job performance

Firm performance

Job factors

Problems with role perception

Job satisfaction

FIGURE 1 - CHRISTEN, LYER AND SOBERMAN MODEL OF JOB SATISFACTION (CHRISTEN ET, 2006)

-5-

Lawler and Porter (1967) give their model of job satisfaction wich unlike the previous model places a special importance on the impact of rewards on job satisfaction, Figure 2.

Intrinsic rewards

Perceived equitable rewards

Performance Job satisfaction

Extrinsic rewards

FIGURE 2 - LAWLERS AND PORTERS MODEL OF JOB SATISFACTION (LAWLER AND PORTER, 1967) According to this model the intrinsic and extrinsic rewards are not directly connected with job satisfaction, because of the employees perceptions regarding the deserved level of pay.

-6-

Locke and Latham (1990) provide a somewhat different model of job satisfaction. They proceed from the assumption that the objectives set at the highest level and high expectations for success in work provides achievement and success in performing tasks. Success is analyzed as a factor that creates job satisfaction. This model is presented in Figure 3.

Moderating factors

Specific high goals

Mediating mechanisms High expectancy self-efficiency

High performance

Rewards

Satisfaction and anticipated

Commitment to the goals of the organization

FIGURE 3 - LOCKE AND LATHAM MODEL OF JOB SATISFACTION (LOCKE AND LATHAM, 1990)

-7-

1.5 FACTORS OF JOB SATISFACTION Job satisfaction is under the influence of a series of factors such as: The nature of work, Salary, Advancement opportunities, Management, Work groups and Work conditions. A somewhat different approach regarding the factors of job satisfaction is provided by Rue and Byars.

Managers concern for people Job design (scope, depth, interest, perceived value) Compensation (external and internal consistency) Working conditions Social relationships Perceived long-range opportunities Perceived opportunities elsewhere Levels of aspiration and need achievement

Job satisfaction/dissatisfaction

Commitment to organization

Turnover, absenteeism, Tardiness, accidents, strikes, grievances, sabotage etc.

FIGURE 4 DETERMINANTS OF SATISFACTION AND DISSATISFACTION (RUE AND BYAES, 2003) When talking about factors of job satisfaction the fact that they can also cause job dissatisfaction must be kept in mind. Therefore the issue weather job satisfaction and job dissatisfaction are two
-8-

opposite and excludable phenomena? There is no consensus regarding this issue among authors. Herzbergs Two Factor Theory is probably the most often cited point of view. In fact the main idea is that employees in their work environment are under the influence of factors that cause job satisfaction and factors that cause job dissatisfaction. Therefore al factors that have derived from a large empirical research and divided in factors that cause job satisfaction (motivators) and factors that cause job dissatisfaction (hygiene factors), Table 1.

TABLE - JOB SATISFACTION FACTORS (HERZBERG, 1976)

Hygiene factors

Motivators

Company policies A

Achievement

Supervision R

Recognition

Interpersonal relations W

Work itself

Work conditions R

Responsibility

Salary A

Advancement

Status G

Growth

Job security

-9-

1.6 Creating Job Satisfaction So, how is job satisfaction created? What are the elements of a job that create job satisfaction? Organizations can help to create job satisfaction by putting systems in place that will ensure that workers are challenged and then rewarded for being successful. Organizations that aspire to creating a work environment that enhances job satisfaction need to incorporate the following: Flexible work arrangements, possibly including telecommuting. Training and other professional growth opportunities. Interesting work that offers variety and challenge and allows the worker opportunities to "put his or her signature" on the finished product. Opportunities to use one's talents and to be creative. Opportunities to take responsibility and direct one's own work. A stable, secure work environment that includes job security/continuity. An environment in which workers are supported by an accessible supervisor who provides timely feedback as well as congenial team members. Flexible benefits, such as child-care and exercise facilities. Up-to-date technology. Competitive salary and opportunities for promotion. Probably the most important point to bear in mind when considering job satisfaction is that there are many factors that affect job satisfaction and that what makes workers happy with their jobs varies from one worker to another and from day to day. Apart from the factors mentioned above, job satisfaction is also influenced by the employee's personal characteristics, the manager's personal characteristics and management style, and the nature of the work itself. Managers who want to maintain a high level of job satisfaction in the work force must try to understand the needs of each member of the work force. For example, when creating work teams, managers can enhance worker satisfaction by placing people with similar backgrounds, experiences, or needs in the same work group. Also, managers can enhance job satisfaction by carefully matching workers with the type of work. For example, a person who does not pay attention to detail would hardly make a good inspector, and a shy worker is unlikely to be a good salesperson. As much as possible, managers should match job tasks to employees' personalities. Managers who are
- 10 -

serious about the job satisfaction of workers can also take other deliberate steps to create a stimulating work environment. One such step is Job enrichment . Job enrichment is a deliberate upgrading of responsibility, scope, and challenge in the work itself. Job enrichment usually includes increased responsibility, recognition, and opportunities for growth, learning, and achievement. Large companies that have used job-enrichment programs to increase employee motivation and job satisfaction include AT&T, IBM, and General Motors (Daft, 1997).Good management has the potential for creating high morale, high productivity, and a sense of purpose and meaning for the organization and its employees. Empirical findings show that job characteristics such as pay, promotional opportunity, task clarity and significance, and skills utilization, as well as organizational characteristics such as commitment and relationship with supervisors and co-workers, have significant effects on job satisfaction. These job characteristics can be carefully managed to enhance job satisfaction. Of course, a worker who takes some responsibility for his or her job satisfaction will probably find many more satisfying elements in the work environment. Everett (1995) suggests that employees ask themselves the following questions: When have I come closest to expressing my full potential in a work situation? What did it look like? What aspects of the workplace were most supportive? What aspects of the work itself were most satisfying? What did I learn from that experience that could be applied to the present situation?

1.7 Workers' Roles in Job Satisfaction If job satisfaction is a worker benefit, surely the worker must be able to contribute to his or her own satisfaction and well-being on the job. The following suggestions can help a worker find personal job satisfaction: Seek opportunities to demonstrate skills and talents. This often leads to more challenging work and greater responsibilities, with attendant increases in pay and other recognition. Develop excellent communication skills. Employers value and reward excellent reading, listening, writing, and speaking skills. Know more. Acquire new job-related knowledge that helps you to perform tasks more efficiently and effectively. This will relieve boredom and often gets one noticed.
- 11 -

 Demonstrate creativity and initiative. Qualities like these are valued by most organizations and often result in recognition as well as in increased responsibilities and rewards. Develop teamwork and people skills. A large part of job success is the ability to work well with others to get the job done. Accept the diversity in people. Accept people with their differences and their imperfections and learn how to give and receive criticism constructively. See the value in your work. Appreciating the significance of what one does can lead to satisfaction with the work itself. This helps to give meaning to one's existence, thus playing a vital role in job satisfaction. Learn to de-stress. Plan to avoid burnout by developing healthy stress-management techniques.-

1.8 Assuring Job Satisfaction Assuring job satisfaction, over the long term, requires careful planning and effort both by management and by workers. Managers are encouraged to consider such theories as Herzberg's(1957) and Maslow's (1943) Creating a good blend of factors that contribute to a stimulating, challenging, supportive, and rewarding work environment is vital. Because of the relative prominence of pay in the reward system, it is very important that salaries be tied to job responsibilities and that pay increases be tied to performance rather than seniority. So, in essence, job satisfaction is a product of the events and conditions that people experience on their jobs. Brief (1998) wrote: "If a person's work is interesting, her pay is fair, her promotional opportunities are good, her supervisor is supportive, and her coworkers are friendly, then a situational approach leads one to predict she is satisfied with her job" (p. 91). Very simply put, if the pleasures associated with one's job outweigh the pains, there is some level of job satisfaction.

- 12 -

1.9 MEASURING JOB SATISFACTION Usually job satisfaction is measured by using general scientific research methods such as the questionnaire. Some of the most commonly used techniques for measuring job satisfaction include: Minnesota satisfaction questionnaire and Job description index The Minnesota Satisfaction Questionnaire is a paper-pencil type of a questionnaire and can be implemented both individually and in group, but it does not take sex differences into consideration. This questionnaire has one short form and two long forms that date from 1967 and 1977. In fact 20 work features in five levels are measured with this questionnaire. Responding to this questionnaire usually takes between 15-20 minutes. The 1967 version of the Minnesota Satisfaction Questionnaire uses the following response categories: Not satisfied, Somewhat satisfied, Satisfied, Very satisfied and Extremely satisfied.

The 1977 version of the Minnesota Satisfaction Questionnaire uses the following response categories: Very satisfied, Satisfied, Neither satisfied nor dissatisfied, Dissatisfied and Very dissatisfied.

If compared its obvious that in a way the 1977 version of this questionnaire is more balanced compared to the 1967 version. This questionnaire the following aspects of job: Co-workers Achievement Activity
- 13 -

Advancement Authority Company Policies Compensation Moral Values Creativity Independence Security Social Service Social Status Recognition Responsibility Supervision-Human Relations Supervision-Technical Variety Working Conditions

The Job Description Index is one of the most widely used techniques for measuring job satisfaction. It is a simple and easily applicable method. The measurement of strength and weakness within each factor are a sign as in which field improvement and changes are necessary. This questionnaire allows acquisition of information on all major aspects of work and takes sex differences into consideration. This questionnaire was first introduced in 1969 and it measures five major job satisfaction aspects with a total of over 70 potential job descriptions. The factors considered by the job description index are: The nature of work, Compensation and benefits, Attitudes toward supervisors, Relations with co-workers and Opportunities for promotion.

Descriptors on each of the five factors can be evaluated with three potential options by the employees: 1 which means that the description is relevant, 2 which means that the description is not relevant and 3 that means that the employee does not have an opinion.

- 14 -

1.10 EFFECTS OF JOB SATISFACTION Job satisfaction causes a series of influences on various aspects of organizational life. Some of them such as the influence of job satisfaction on employee productivity, loyalty and absenteeism are analyzed as part of this text. The preponderance of research evidence indicates that there is no strong linkage between satisfaction and productivity. For example a comprehensive meta-analysis of the research literature finds only a.17 best-estimate correlation between job satisfaction and productivity . Satisfied workers will not necessarily be the highest producers. There are many possible moderating variables , the most important of which seems to be rewards. If people receive rewards they feel are equitable , they will be satisfies and this is likely to result in greater performance effort. Also, recent research evidence indicates that satisfaction may not necessarily lead to individual performance improvement but does lead to departmental and organizational level improvements. Finally there is still considerable debate weather satisfaction leads to performance or performance leads to satisfaction (Luthans, 1998). Employee loyalty is one of the most significant factors that human resource managers in particular must have in mind. Employee loyalty os usually measured with the Loyalty Questionnaire and can cause serious negative consequences when not in a high level. Usually three types of employee loyalty are considered: affective loyalty, normative loyalty and continuity loyalty. Affective loyalty has do with the cases when an employee feels an emotional connection to the company, normative loyalty is a sort of loyalty that appears in cases when the employee feels like he ows something to the company and continuity loyalty comes as a result of the fact that the employee does not have an opportunity to find a job somewhere else. Research conducted by Vanderberg and Lance (1992) during which they surveyed 100 profesionists in the information services for five months showed a strong relations between job satisfaction and employee loyalty. Their research proved that the higher the degree of job satisfaction the higher is the level of employee loyalty. Employee absenteeism causes serious additional costs for companies, therefore managers are in permanent peruse of ways how to decrease and reduce it to its minimum. Probably, the best way o reduce employee absenteeism would be through a increase in the level of employee satisfaction. The main idea behind this approach is that the higher the degree of job satisfaction is the lower employee absenteeism should be.

- 15 -

Even though the effects are modest the fact that job satisfaction contributes to decreasing the level of employee absenteeism remains. So satisfaction is worth payngattention to , especially since it is potentially under your control unlike some of the other causes of absenteeism (e.g. illness, accidents). But aswe said circumstances can alter this equation. As a manager you could be implicitly encouraging absenteeism by enforcing company policies. If people are paid for sick days, and if they must be used or lost this is pretty strong encouragement for employees to be absent. In other words, youve helped create a culture of absenteeism that can overcome the satisfaction effect. (Sweney and McFarlin, 2005). When satisfaction is high, absenteeism tends to be low; when satisfaction is low, absenteeism tends to be high. However as with the other relationships with satisfaction, there are moderating variables such as the degree to which people feel their jobs are important. Additionally, it is important to remember that while high job satisfaction will not necessarily result in low absenteeism, low job satisfaction is likely to bring about high absenteeism. 1.11 Importance to Worker and Organization Frequently, work underlies self-esteem and identity while unemployment lowers self-worth and produces anxiety. At the same time, monotonous jobs can erode a worker's initiative and enthusiasm and can lead to absenteeism and unnecessary turnover. Job satisfaction and occupational success are major factors in personal satisfaction, self-respect, self-esteem, and selfdevelopment. To the worker, job satisfaction brings a pleasurable emotional state that often leads to a positive work attitude. A satisfied worker is more likely to be creative, flexible, innovative, and loyal For the organization, job satisfaction of its workers means a work force that is motivated and committed to high quality performance. Increased productivity the quantity and quality of output per hour worked seems to be a byproduct of improved quality of working life. It is important to note that the literature on the relationship between job satisfaction and productivity is neither conclusive nor consistent. However, studies dating back to Herzberg's (1957) have shown at least low correlation between high morale and high productivity, and it does seem logical that more satisfied workers will tend to add more value to an organization. Unhappy employees, who are motivated by fear of job loss, will not give 100 percent of their effort for very long. Though fear is a powerful motivator, it is also a temporary one, and as soon as the threat is lifted performance will decline. Tangible ways in which job satisfaction benefits the organization include reduction in complaints and grievances, absenteeism, turnover, and termination; as well as improved punctuality and worker morale. Job satisfaction is also linked to a more healthy work force and has been found to be a good indicator of longevity. And although only little correlation has been found between job satisfaction and productivity, Brown (1996) notes that some employers have found that satisfying or delighting employees is a prerequisite to satisfying or delighting customers, thus protecting the "bottom line." No wonder Andrew
- 16 -

Carnegie is quoted as saying: "Take away my people, but leave my factories, and soon grass will grow on the factory floors. Take away my factories, but leave my people and soon we will have a new and better factory"

- 17 -

CHAPTER - 2

HISTORY OF INSURANCE

- 18 -

2.1 HISTORY OF INSURANCE

Almost 4,500 years ago, in the ancient land of Babylonia, traders used to bear risk of the caravan trade by giving loans that had to be later repaid with interest when the goods arrived safely. In 2100 BC, the Code of Hammurabi granted legal status to the practice. That, perhaps, was how insurance made its beginning. Life insurance had its origins in ancient Rome, where citizens formed burial clubs that would meet the funeral expenses of its members as well as help survivors by making some payments. As European civilization progressed, its social institutions and welfare practices also got more and more refined. With the discovery of new lands, sea routes and the consequent growth in trade, Medieval guilds took it upon themselves to protect their member traders from loss on account of fire, shipwrecks and the like. Since most of the trade took place by sea, there was also the fear of pirates. So these guilds even offered ransom for members held captive by pirates. Burial expenses and support in times of sickness and poverty were other services offered. Essentially, all these revolved around the concept of insurance or risk coverage. That's how old these concepts are, really. In 1347, in Genoa, European maritime nations entered into the earliest known insurance contract and decided to accept marine insurance as a practice.

The first step... Insurance as we know it today owes its existence to 17th century England. In fact, it began taking shape in 1688 at a rather interesting place called Lloyd's Coffee House in London, where merchants, ship-owners and underwriters met to discuss and transact business. By the end of the 18th century, Lloyd's had brewed enough business to become one of the first modern insurance companies. Insurance and Myth... B a c k t o t h e 1 7 t h c e n t u r y. I n 1 6 9 3 , a s t r o n o m e r E d m o n d H a l l e y c o n s t r u c t e d t h e f i r s t mortality table to provide a link between the life insurance premium and the average life s p a n s b a s e d o n s t a t i s t i c a l l a w s o f m o r t a l i t y a n d c o m p o u n d i n t e r e s t . I n 1 7 5 6 , J o s e p h Dodson reworked the table, linking premium rate to age.

- 19 -

Enter companies... The first stock companies to get into the business of insurance were chartered in England in 1720. The year 1735 saw the birth of the first insurance company in the American colonies in Charleston, SC. I n 1 7 5 9 , t h e P r e s b y t e r i a n S yn o d o f P h i l a d e l p h i a s p o n s o r e d t h e f i r s t l i f e i n s u r a n c e corporation in America for the benefit of ministers and their dependents. However, it was after 1840 that life insurance really took off in a big way. The trigger: reducing opposition from religious groups. The growing years.. The 19th century saw huge developments in the field of insurance, with newer products being devised to meet the growing needs of urbanization and industrialization. In 1835, the infamous New York fire drew people's attention to the need to provide for sudden and large losses. Two years later, Massachusetts became the first state to require c o m p a n i e s by law to maintain such reserves. The great Chicago fire of 1871 f u r t h e r emphasized how fires can cause huge losses in densely populated modern cities. The p r a c t i c e o f r e i n s u r a n c e , w h e r e i n t h e r i s k s a r e s p r e a d a m o n g s e v e r a l c o m p a n i e s , w a s devised specifically for such situations. In the 19th century, many societies were founded to insure the life and health of their members, while fraternal orders provided low-cost, members-only insurance. Even today, such fraternal orders continue to provide insurance coverage to members as do most labor organizations. Many employers sponsor group insurance policies for their employees, providing not just life insurance, but sickness and accident benefits and-age pensions. Employees contribute a certain percentage of the premium for this policies. In India... Insurance in India can be traced back to the Vedas. For instance, yogakshema, the name of Life Insurance Corporation of India's corporate headquarters, is derived from the Rig Veda. The term suggests that a form of "community insurance" was prevalent around1000 BC and practiced by the Aryans. Burial societies of the kind found in ancient Rome were formed in the Buddhist period to help families build houses, protect widows and children. Bombay Mutual Assurance Society, the first Indian life assurance society, was formed in1870. Other companies like Oriental, Bharat and Empire of India were also set up in the1870-90s. It was during the swadeshi movement in the early 20th century that insurance witnessed a big boom in India with several more companies being set up. A s t h e s e c o m p a n i e s g r e w , t h e g o v e r n m e n t b e g a n t o e x e r c i s e c o n t r o l o n t h e m . T h e Insurance Act was passed in 1912, followed by a detailed and amended Insurance Act of 1938 that looked into investments, expenditure and management of these companies' funds. By the mid- 20 -

1950s, there were around 170 insurance companies and 80 provident fund societies in the country's life insurance scene. However, in the absence of regulatory systems, scams and irregularities were almost a way of life at most of these companies. As a result, the government decided nationalizes the life assurance business in India. The L i f e I n s u r a n c e Corporation of In dia was set up in 1956 to take over around 250 life companies. For years thereafter, insurance remained a monopoly of the public sector. It was only after seven years of deliberation and debate - after the RN Malhotra Committee report of 1994 became the first serious document calling for the re -opening up of the insurance sector to private players -- that the sector was finally opened up to private players in2001.The Insurance Regulatory & Development Authority, an autonomous insurance regulator set up in 2000, has extensive powers to oversee the insurance business and regulate in a manner that will safeguard the interests of the insured.

2.2 FUTURE OF INSURANCE IN INDIA

As per a recent report Indian Insurance Industry Forecast (2007 -2009) published by RNCOS, it has been found that Life insurance market in India will likely reach around R s 1 6 8 3 B i l l i o n b y t h e ye a r 2 0 0 9 . C h a n g i n g c o n s u m e r b e h a v i o r , G D P g r o w t h r a t e , changing socio economic demography, and natural calamities occurring from time to time will remain the key contributors in this growth.A p r i l 2 0 0 7 , c u r r e n t F Y s f i r s t m o n t h , s a w n e w b u s i n e s s e s e x p a n d b y 4 9 % , w h e r e a s general insurance players witnessed 16% increase during the same month. Outstanding performance of SBI Life, ICICI Prudential, and LIC helped the Indian life insurance industry in mopping up almost Rs 2,892 crore in April this year, whereas it was Rs 1,996 crore in the same month last year. On the other hand, Reliance Life, ING Vysya, a n d B a j a j Allianz were amongst those insurers thatcameacross a decline in their pre mium collection over the review period, as per the data compiled b y Insur a n c e Regulatory & Development Authority16. Selling almost 15, 89,684 policies during this April, LIC - the largest life insurer in India-witnessed 57% growth in its new premiums that reached to Rs 2,134 crore. LIC grabbed a market share of almost 71.56% during this April. Nonlife or general insurance industry s a w a g r o w t h o f 1 6 % d u r i n g t h i s m o n t h , a n d I C I C I L o m b a r d w a s t h e s e c o n d l a r g e s t player in this segment. Business Standard published this in news on 14 June 2007.Looking at the current scenario, it can be made out that the four established public-sector players namely, National Insurance, United India, Oriental Insurance, and New India Assurance, may have to face stiff competition from private players like Bajaj Allianz, Reliance General, and ICICI Lombard, as per Business Standard. According to RNCOS report Indian Insurance Industry Forecast (2007-2009), Performance of life insurance industry remained better in comparison to n o n l i f e segment over the five year period spanning 2001-2005. Some qualitative factors, like the deregulation rate of insurance market, and implementation rate of technologies prevailing in the market, need to perform up to the industry expectations in order to improve the growth rate of Indian life
- 21 -

insurance market.This report provides an objective analysis of all aspects of Indian insurance industry. The issues addressed in this report include : prospective investment areas in Indian life insurance industry, market strategies adopted by key players in this segment, opportunities and challenges present in this industry, and so on. 2.3 LIFE INSURANCE ADVANTAGES Some of the life insurance advantages offered by different types of Life I n s u r a n c e Policies are: Life Insurance policies can help secure the future of children for college/educational purposes as the amount of life Insurance Policy increases on a minors or parents life. Life Insurance provides the option to pass equal assets to the children who are not active in the Family business at the time the family business is passed on. The growth of a cash-value policy is tax-deferred - you do not pay taxes on the cash value accumulation until you withdraw funds from the policy. L i f e I n s u r a n c e h e l p s r e t a i n yo u r B u s i n e s s f r o m t h e l o s s o f a k e y e m p l o ye e . Untimely death of a key employee can pose severe financial loss to the business. A lot of Insurance products presently provide good returns, which c o u l d b e a beneficial way for saving necessary funds for retirement years. Benefits are available immediately and may be used to help pay expenses such as final illness and funeral costs, eliminating the need to sell estate assets to cover these costs. A carefully signed Life Insurance Policy with desired ownership and beneficiary arrangements helps secure you and your family in the long term.

- 22 -

CHAPTER - 3

INDUSTRY PROFILE

- 23 -

3.1 BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED

Bajaj Allianz Life Insurance Company Limited is a joint venture between Allianz AG, one of the world's largest Life Insurance companies and Bajaj Auto, one of the biggest two- and threewheeler manufacturers in the world. Allianz AG is an insurance conglomerate globally and one of the largest asset managers in the world, managing assets worth worldwide with 115 years of financial experience in over 70 countries. Bajaj Auto is one of the most trusted name in Indian auto for over 55 years. Bajaj Allianz Fact File: Owners: Bajaj Auto(India) and Alliaz AG(Germany) Head Office: Pune Bajaj Allianz is one of the fastest growing private Life Insurance Company in India. This has more than 1,200 branches across country and deals in primarily unit linked, traditional, health, child and pension policies.

CORPORATE STRUCTURE OF BAJAJ ALLIANZ COMPANY LIMITED

- 24 -

Operation @ BAJAJ Allianz Decentralized operation for quicker response Nationwide network of 1100 + branches. Specialized Business Channels - Banc assurance - Corporate Agency - Rural - Micro Insurance - Group Business Dedicated product teams for - Pension - Health - Customer Care Centre Well networked Customer Care centres (CCCs) with state of art IT systems. Highest standard of customer service & simplified claims process in the industry. Least number of IRDA complaints. Website for all kinds of assistance and information on products and services. Online buying and renewals. Toll free number 1800 233 7272.

- 25 -

Agency Total Offices Total Sales Manger =966 Divisional Offices Branch Offices = 9,000 + =254 =712

Insurance Consultants working on commission basis =>2.5 lakhs Business contribution to BALIC = 70% (approx)

- 26 -

3.2 AIZAWL DIVISION

Bajaj Allianz Life Insurance Company Limited Aizawl Division is the only divisional office in Mizoram. It is headed by Chitaranjan Singh, Chief Divisional Manager. There are three branches under Aizawl Division, namely- Aizawl Branch-1, Aizawl branch-2 and Imphal branch. Aizawl branch-1 is headed by Mrs. Helen Zonunmawii, Chief Branch Manager. There are 13 Sales Manager and 100 Agents in Aizawl branch-1. Aizawl branch-2 is headed by Mrs. Lalhmangaihi, Assistant Branch Manager and there are13 Sales Manager and 70 Agents in Aizawl branch-2. Imphal branch is headed by Ramesh, Branch Manager and the branch has the strength of 11 Sales Manager and 50 Agents. Apart from the managers and agents the Division has various office staff working regularly in the office. Various posts hold by such employees and its numbers in the office are mentioned below:NAME OF THE POST Sales Administrator(SA) CSE Accountant ABS Receptionist Office Boy Security Guard NUMBER OF EMPLOYEES 1 2 1 1 1 1 1

- 27 -

CHAPTER - 4

EVALUATION OF JOB SATISFACTION OF THE EMPLOYEES AND RESEARCH METHODOLOGY

- 28 -

4.1 OBJECTIVES OF THE STUDY

To find that whether the employees are satisfied or not. To analyze the companys working environment. To check the Degree of satisfaction of employees. To find that they are satisfied with their job profile or not. To find that employees are working with their full capabilities or not.

4.2 RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the proble m . I t m a y b e understood as a science of studying how research is done scientifically. In it we study t h e v a r i o u s s t e p s t h a t a l l g e n e r a l l y a d o p t e d b y a r e s e a r c h e r i n s t u d y i n g h i s r e s e a r c h problem along with the logic behind them. The scope of research methodology is wider than that of research method.

4.3 Meaning of Research

Research is defined as a scientific & systematic search for pertinent information on a specific topic. Research is an art of scientific investigation. Research is a systemized effort to gain new knowledge. It is a careful inquiry especially through search for new f a c t s i n a n y b r a n c h o f k n o w l e d g e . T h e s e a r c h f o r k n o w l e d g e t h r o u g h o b j e c t i v e a n d systematic method of finding solution to a problem is a research.

4.4 RESEARCH DESIGN

A research is the arrangement of the conditions for the collections and analysis of the data in a manner that aims to combine relevance to the research purpose with economy in procedure. In fact, the research is design is the conceptual structure within which research is conducted; it constitutes the blue print of the collection, measurement and analysis of the data. As search the design includes an outline of what the researcher will do from writing the hypothesis and its operational implication to the final analysis of data.

- 29 -

The design in such studies must be rigid and not flexible and most focus attention on the following;

Research Design can be categorized as:

TYPES OF RESEARCH DESIGN

EXPLORATORYRESEARCH DESIGN

DESCRIPTIVE & DIAGNOSTIC RESEARCH DESIGN

EXPERIMENTAL RESEARCH DESIGN

The present study is exploratory in nature, as it seeks to discover ideas and insight to bring o u t new relationship. Research design is flexible enough to provide o p p o r t u n i t y f o r considering different aspects of problem under study. It helps in bringing into focus some inherent weakness in enterprise regarding which in depth study can be conducted by management.

4.5 DATA COLLECTION

For any study there must be data for analysis purpose. Without data there is no means of study. Data collection plays an important role in any study. It can be collected from various sources. I have collected the data from two sources which are given below: 1. Primary Data Personal Investigation. Observation Method. Information from correspondents. Information from superiors of the organization.
- 30 -

2. Secondary Data
Published Sources such as Journals, Government Reports, Newspapers and Magazines etc. Unpublished Sources such as Company Internal reports prepare by them given to their. analyst & trainees for investigation. Websites like Bajaj Allianz official site, some other sites are also searched to find data.

4.6 Scope Of The Study The scope of the study is very vital. Not only the Human Resource department can use the facts and figures of the study but also the marketing and sales department can take benefits from the findings of the study. Scope for the sales department The sales department can have fairly good idea about their employees, that they are satisfied or not. Scope for the marketing department The marketing department can use the figures indicating that they are putting their efforts to plan their marketing strategies to achieve their targets or not. Scope for personnel department Some customers have the complaints or facing problems regarding the job. So the personnel department can use the information to make efforts to avoid such complaints.

- 31 -

4.7 Sample Size :Questionnaire is filled by 12 employees of Bajaj Allianz life Insurance Company Limited Aizawl Division, Aizawl. The questionnaire was filled in the office and vital information was collected which was then subjects to: A pilot survey was conducted before finalizing the questionnaire. Data collection was also done with the help of personal observation. After completion of survey the data was analyzed and conclusion was drawn. At the end all information was compiled to complete the project report.

- 32 -

4.8 DATA ANALYSIS AND INTERPRETATION

- 33 -

Employee in this organization are treated well and respected.

Agree 17%

Strongly Agree 83%

This graph shows that 84% of employees are strongly agree about the point and 17% of employees are agree on the point

- 34 -

I find much of my job repetitive and boring.

Disgree 17% Strongly Agree 33% Neither Agree nor Disagree 33%

Agree 17%

This graph shows that 33% of employees are strongly agree about the point, 17% of employees are agree on the point, 33% are neither agree nor disagree and rest 17% of employees are disagree.

- 35 -

I feel that my job has little impact on the succes of the company

Strongly Agree 17%

Disgree 17% Strongly Disgree 66%

This graph shows that 17% of employees are strongly agree about the point, 17% of employees are agree on the point and rest 66% of employees are strongly disagree.

- 36 -

I am no longer given the resources I need to successfuly do my job.

Strongly Disgree 17%

Disgree 83%

This graph shows that 83% of employees are disagree about the point and rest 17% of employees are strongly disagree.

- 37 -

I Am not being used my full potential

Agree 17%

Disagree 83%

This graph shows that 17% of employees are agree about the point and rest 83% of employees are disagree.

- 38 -

My superior encourages my development.

Disgree 17%

Agree 17%

Strongly Agree 66%

This graph shows that 66% of employees are strongly agree about the point, 17% are agree on the point and rest 17% of employees are disagree.

- 39 -

In the last 7 days, I received praise for my good work.

Agree 50%

Strongly Agree 50%

This graph shows that 50% of employees are strongly agree about the point and another 50% of employees are agree.

- 40 -

This last year, I have had oppurtunities at work to learn and grow.

Strongly Agree 17%

Agree 83%

This graph shows that 17% of employees are strongly agree about the point and rest 83% of employees are agree about the point.

- 41 -

I am satisfied with the spirit of cooperation in the organization.

Neither Agree nor Disgree 17%

Strongly Agree 17%

Agree 66%

This graph shows that 17% of employees are strongly agree about the point, 66% 0f employees are agree on the point and rest 17% of employees are neither agree nor disagree.

- 42 -

The objective of our company makes me feel that my job is important.

Neither Agree nor Disagree 17%

Strongly Agree 17%

Agree 66%

This graph shows that 17% of employees are strongly agree about the point, 66% 0f employees are agree on the point and rest 17% of employees are neither agree nor disagree.

- 43 -

I believe that the work atmosphere is friendly.

Agree 50%

Strongly Agree 50%

This graph shows that 50% of employees are strongly agree about the point and rest 50% of employees are agree on the point.

- 44 -

I am informed about the ongoing activities in our organization.

Neither Agree nor Disgree 17%

Strongly Agree 32%

Agree 51%

This graph shows that 32% of employees are strongly agree about the point, 51% 0f employees are agree on the point and rest 17% of employees are neither agree nor disagree.

- 45 -

Training and development provided in this organization is valuable.

Agree 17%

Strongly Agree 83%

This graph shows that 83% of employees are strongly agree about the point and rest 17% of employees are agree on the point.

- 46 -

4.9 Findings Employees in Bajaj Allianz Company are treated well and respected. Employees find that the work atmosphere in the organization is friendly. Some of the employees still find that their job is repetitive and boring although their salary is good enough. Employees are not fully getting value to their work. Some employees are not working with their full capabilities.

4.10 SUGGESTIONS AND RECOMMENDATIONS To increase the job satisfaction level of the employees the company should concentrate mainly on the incentive and reward structure. Company should conduct performance appraisal on regular basis. Company should give promotion and incentives to those employees who deserves it. Company should build employees competence and self-confidence through training, feedback and recognition.

- 47 -

4. 11 LIMITATIONS OF STUDY However I tried my best in collecting the relevant information for my research report, yet there are always some problems faced by the researcher. The prime difficulties which I face in collection of information are discussed below:1.Short time period: The time period for carrying out the research was short as a result of which many facts have been left unexplored. 2.Lack of resources: Lack of time and other resources as it was not possible to conduct survey at large level. 3.Small no. of respondents: Onl y 12 em pl o ye es have b een chose n whi ch i s a small number, to represent whole of the population. 4.Unwillingness of respondents: W hi l e col l ect i on of t he dat a m an y em pl o ye es were unwilling to fill the questionnaire. Respondents were having a feeling of wastage of time for them. 5.Small area for research: The area for study was Aizawl, which is quite a small area to judge job satisfaction level.

- 48 -

BIBLIOGRAPHY
BOOKS
1. Kothari C.R., Research Methodology (Method and Techniques) New Age International Publication (Second Revised Edition). 2. Ashwathapa k., Human Resource Management (third edition), Tata Mc Graw Hill publication Company Ltd. 3. Bhatia S.K., Emerging Human Resource Management(HRM) 4. Mamoria C.B., Personnel Management. Himalaya Publishing House.

WEBSITES
1. www.bajajallianz.com/life-insurance 2. www.ipedr.com/vol15/44-iccpm2011a10023.pdf

3. 4. 5. 6.

www.ask.com-/meaning-insurance/history//www.ibef.org/industry/insurance-trend/in en.wikipedia.org/wiki/job-satisfaction managementhelp.org/personalwellness/job.satisfaction.htm

JOURNALS Hoppock, R. (1935). Job Satisfaction, Harper and Brothers, New York, p. 47 Hackman, J. R., & Oldham, R. G. (1976). Motivation through the design of work: Test
of a theory. Organizational Behavior and Human Performance,16, 250-279.

Lawler, E.E., Mohrman, S. A., & Ledford, G. E Jr. (1992). Employee Involvement and
Total Quality Management: Practices and Results in Fortune 1000 Companies. San Francisco: Jossey-Bass.

Locke, E. (1976). The nature and causes of job satisfaction. In Dunnette, M.D. Handbook of Industrial and Organizational Psychology. Chicago: Rand McNally. performance: The case of local government finance officers in Ohio. Productivity and Management Review Vol. 21, No. 2, pp. 17-191. Tata McGraw-Hill Inc. Public

McGue, C. P and Gianakis, (1997) The relationship between job satisfaction and McShane, S.L. & Von Glinow, M.A. (2005), Organizational Behavior (3th ed.). India: Nemko, M. (2008, December 11c). Best Careers 2009: Clergy. U. S. News & World
Report. Retrieved July 14, 2009 from

- 49 -

 Raza M.A and Nawaz M.M. (2011), Impact of job enrichment on employees job
satisfaction, motivation and organizational commitment: Evidence from public sector of Pakistan. European journal of social sciences volume 23, number 2 (2011).

Sousa-Poza, A. and Sousa-Poza, A. (2000), Well-being at work: a cross-national

analysis of the levels and determinants of job satisfaction, Journal of Socio-Economics, 29(6), 517-538.

- 50 -

ANNEXURE QUESTIONNAIRE Evaluation of Job Satisfaction of the Employees in Bajaj Allianz Life Insurance Company Limited.
Note:
1. The questionnaire is purely for a research purpose meant for a paper in my MBA Course in Mizoram University, Aizawl. The data obtained through it will be kept highly confidential. 2. All the employees are requested to feed the data honestly and sincerely. 3. Your cooperation is highly valued. 4. Please tick the option relevant to you. NAME: DESIGNATION: AGE: ....................................................................................... SEX: ............................................................................................ JOINING DATE.................................................................................... 1. Employees in this organization are treated well and respected. Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree 2. I f i n d m u c h o f m y j o b r e p e t i t i v e a n d b o r i n g . Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree 3. I feel that my job has little impact on the success of the company. Strongly Agree Agree
- 51 -

 Neither Agree nor Disagree Disagree Strongly Disagree 4. I am no longer given the resources I need to successfully do my job. Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree 5. I am not being used to my full potential. Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree 6. My superior encourages my development Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree 7. In the last 7 days, I received praise for my good work.

Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree 8. This last year, I have had opportunities at work to learn and grow. Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree 9. I am satisfied with the spirit of cooperation in the organization. Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree
- 52 -

10. The objective of our company makes me feel that my job is important. Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree 11. I believe that the work atmosphere is friendly. Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree 12. I am informed about the ongoing activities in our organization. Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree 13. Training and development provided in this organization is valuable. Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly disagree

- 53 -