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ACKNOWLEDGEMENT

An understanding study like this is never an outcome of the efforts of a single person; I would like to express a word of thanks to all those who gave me their sincere advice and information which made my dissertation period an educative and informative one. In pursuit of an MBA program, Final Dissertation is a critical component of the entire package. Hindustan Steelworks Construction Limited, B.S.City has given me the opportunity to gain an invaluable experience under the guidance of Mr.Ramadhar Jha, Executive Director. His continuous support and cooperation along with his knowledge and experience about the industry enriched me with conceptual understanding and practical approach needed to work efficiently for this project. I am grateful to him as he is always willing to take time off his busy schedule for countless discussions. My heartfelt gratitude goes to Mr.Syed Nadimul Haque (Faculty teacher, HR, Jamia Hamdard, New Delhi) who is always willing to take time off his busy schedule for countless discussions. The project would not have reached anywhere near its current form without his able support and guidance. I express my heart-felt appreciation to the entire team of HSCL for their intellectual simulation and moral support throughout my project. I thank them for providing me a valuable guidance to coordinate different aspects necessary to make this project a success. Finally, special thanks to my family & friends who are my source of encouragement and inspiration. SIGNATURE: NAME: DATE:

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EXECUTIVE SUMMARY

Employee satisfaction is considered to be a critical success factor for organizations. The concept of employee satisfaction has gained a special concern from both academicians and practitioners. This study aims to provide a framework for employee satisfaction and determine the critical factors of employee satisfaction and to search out its effect on overall organization commitment of employees of Hindustan Steelworks Construction Limited based on the data collected from them. Following a thorough review of the related literature, a questionnaire was developed to determine the levels of satisfaction and commitment of employees HSCL. This questionnaire was distributed among the employees of HSCL completed the survey. Data analysis revealed that there is a positive relationship between employee satisfaction and organization commitment. Furthermore, relevant recommendations and measures for improving the employee satisfaction and organization commitment are proposed. It is important to study the relationship between employee satisfaction and organizational commitment; because this project will help managers to understand how people work and study general organizational behaviors. The main interest of my research is to investigate whether employees job satisfaction will affect his or her level of commitment in the organization. Generally, it is expected that employees are more likely to stay with their organization and be highly committed when they can see a strong linkage between the organization and their work. When employees experience low employee satisfaction and organizational commitment, it can be very costly in this era of extremely high turnover rate. To solve the problems of high turnover and absenteeism, it is important to analyze the two variables being studied and determine the factors that would affect commitment. At times, employees may not leave an organization even when they are dissatisfied or do not feel committed to the organization. This makes studying the two variables serve an even greater importance. When workers are dissatisfied, this may create grievances, which can lead to a lower level of organizational commitment. In turn, this may result in severe consequences such as labour strikes. Another reason why we are interested in studying whether employee satisfaction would lead to organizational commitment is because this may increase productivity. With an improvement in productivity, organizations will operate better and have higher growth,
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which is an important goal for most organizations. Thus, a manager should investigate their employees level of satisfaction, which can signal whether there is commitment from their workers. Analyzing the relationship between employee satisfaction and organizational commitment is particularly crucial nowadays, as people often do not work at the same organization or job throughout their lifetime. It is also sometimes hard to find suitable people for certain positions. So once an ideal candidate is chosen, organizations will like to make a great effort to retain those employees. If two employees exhibit different levels of satisfaction and that satisfaction can be proven to lead to organizational commitment, the employer will likely hire the employee with the higher level of satisfaction. This is because the employer can expect the more satisfied individual to stay with the organization. Another reason as to why satisfaction will lead to commitment is that a higher level of job satisfaction may lead to a better family life and a reduction in stress. The reason is because an employees feelings of jobs satisfaction may affect his or her emotions. This feeling will affect the workers behaviors inside and outside the organization. When a worker is dissatisfied with his or her job, the employee may have negative emotions. The consequence is that he or she may start to think about quitting. The decision process will begin with the individual identifying and evaluating alternatives, about whether to quit or to stay on in their job. The sequence of decisions will change the employees commitment level. Managers would be most interested in knowing about the relationship between employees satisfaction and organizational commitment, because it would become clear as to how important and worthy it would be to retain their most satisfied employees. In turn, having this knowledge would motivate managers to satisfy their employees.

Key Words: employee satisfaction, organization commitment, employee loyalty, human resource management.

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LIST OF CONTENTS
ACKNOWLEDGEMENT1 EXECUTIVE SUMMARY....2 1. Hindustan Steelworks Construction Limited..5 2. Introduction....10 2.1 Employee Satisfaction 2.2 Importance of Employee Satisfaction 2.3 Determinants of Employee Satisfaction 2.4 Definition of Organization Commitment 2.5 Indicators of Organization Commitment 2.6 HRM Practices and Organization Commitment 2.7 Relationship between Employee Satisfaction and Organizational Commitment 3. Review of Related Literature..18 4. Research Design and Analysis.......23 4.1 Objective of the report 4.2 Research Methodology 4.3 Sample Constitution 4.4 Hypothesis 4.5 Quantification of Respondents 4.6 Analysis of Data 5. Analysis and Interpretation of Data.........26 5.1 Descriptive Statistics 5.2 Details of Demographic Questions 5.3 Overall level of satisfaction of employees of HSCL 5.4 Overall level of organization commitment of HSCL 5.5 Line representation of employees individual score 5.6 Employee satisfaction organizational commitment correlation analysis 5.7 Hypothesis testing of correlation coefficient 6. Findings.53 7. Suggestions.....55 8. Conclusion....57 Limitation..58 References.59 Appendices
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CHAPTER 1 HINDUSTAN STEELWORKS CONSTRUCTION LIMITED 1.1 An Overview


Hindustan Steelworks Construction Limited (HSCL) was established in 1964, as a construction agency of Government of India under Ministry of Steel, to mobilize indigenous capability for putting up integrated steel plants in the country. The young organization rose to the occasion and successfully met the challenge by bringing together competent human resources and mobilizing a fleet of updated construction equipment. Since then there has been no looking back. In the years that followed, almost every major steel plant in India was constructed by HSCL. As the Company grew in resources and expertise, it diversified in other areas like Power Plants, Mining Projects, Irrigation Projects including Dams and Barrages, Oil Refineries, Railways, Airports, Buildings and Commercial Complexes, Rural Roads, Highways, Flyovers, minor and major Bridges for Railways and Road traffic, infrastructure for Educational Institutions, Health Centers and Hospitals etc. The Company undertook and successfully completed a number of Turn Key Projects also for various clients. Today, HSCL is an ISO 9001-2000 Company and its capabilities cover almost every field of construction activities. Starting with a modest Rs.5 Crore in 1965-66, the Company achieved a Turnover of Rs.696 Crore in 2008-09. The Order Book also is swelling every year. The year 2009-10 began with orders worth Rs.1367 Crore in hand. Turnover and Order Booking registered CAGR of 25% and 26% respectively during the last three years; much more than the overall industry growth of 8.3% recorded during 2007-08 and around 4% during 2008-09. The Company has so far executed orders worth more than Rs.9180 Crore since inception. The financial results also are improving with the Company earning an Operating Profit of Rs.51.32 Crore(Unaudited) during FY09. Eleventh Plan period is likely to witness considerable investments in steel as well as in infrastructure sectors. The Company is geared up to take advantage of the bullish industry scenario and aggressively increase its business volume, the growing concern of soaring oil and steel prices notwithstanding. Being in the Public Sector, HSCL pledges to comply with the framework of transparent Corporate Governance and considers it a primary responsibility to participate in the development of remote rural areas of the country under Govt's Bharat Nirman Programme

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Vision

To be a forerunner in Indias infrastructure development To diversify into new areas of profitable activities Technology base Professionalism Image Building Customer Satisfaction Cost Consciousness High level of safety standards

Mission

To Continue to be profitable Public Sector Unit in the construction sector Execution of projects, qualitatively and timely

Comprehensive Capabilities

Feasibility Study Detail Engineering Cost Engineering Procurement Planning and Scheduling Project supervision, control and management

BOARD OF DIRECTORS The Company is managed by a Board of Directors, having two full time official (one Vacant at present), two part time official and two part time non-official directors. All the directors are nominated by Government of India, who formulate strategies, policies of the Company and review its performance periodically. The Chairman & Managing Director (CMD) and Director Finance manage the business of the Company under the overall supervision, control and guidance of the Board.
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MANPOWER In accordance with the provision in the Restructuring Package implemented in 1999, HSCL opened the VRS option for its employees to make the business operations of the Company more cost effective. The initiative has been successful and the manpower strength came down from 13576 as on 1.4.2000 to 1209 as on 1.6.2009

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ORGANISATION STRUCTURE OF PERSONNEL (SERVICES) DEPARTMENT IN HSCL DGM (Pers -Non work)

AGM (Pers-Services)

SR. Manager (Pers Project) Manager (Pers- Stores) DY. Manager (Pers- Services) DY. Manager (Pers- Admn) JR.Manager (Pers-Services)

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WHY HSCL? HSCL has it all!!


o o o o o o o o o o o

Comprehensive Capabilities and diversified exposure in construction industry. Sound track record with very high success rate. Rising trend of the Company at much more than overall Industry Growth rate of the Country. Commitment to the infrastructure growth of the country. High technical expertise and dedicated workforce. Rich construction equipment holding. Completion of projects within tine schedule and expenditure estimate. Adherence to high quality and safety standards. ISO 9001-2000 Accreditation. Amicable settlement of disputes. Customer satisfaction.

HUMAN RESOURCE DEVELOPMENT Multi-skill training programme for workers and staff at Steel Plant Units. HSCL conducted multi-skill training programmes for the workers and staff of the Company at Steel Plant Units at Bokaro and Bhilai in 6 standard modules in line the SAIL training schedule. Training institutes of Bokaro and Bhilai Steel Plants extended the required faculty support for imparting training to the HSCL employees. 100 employees were given multi-skill training during 2007-08. This has opened up avenues for optimum utilization and suitable redeployment of the existing employees stationed at the Steel Plant Units of Bokaro, Bhilai and Vizag. The training programmes will be carried through the coming years also.

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CHAPTER 2

INTRODUCTION
2.1 Employee Satisfaction
According to Marc Drizin, an employee loyalty specialist, Employees are assets with feet. Theyre the only resource companies have that make a conscious decision to return the next day (Modic, 2005). A 2003 J.D. Power and Associates survey concluded that there is another customer builders need to focus on satisfying besides the obvious customers. Builders need to focus on the rank-andfile managers and employees who work for them (Kash, 2003). The effects employee satisfaction has on an organizations business are numerous. Some of the most relevant and profitable effects are described below.

Studies show that businesses that excel in employee satisfaction issues reduce turnover by 50% from the norm, increase customer satisfaction to an average of 95%, lower labor cost by 12% and lift pretax margins by an average of 4% (Carpitella, 2003). Not only are employee turnover, customer satisfaction, labor costs, and pretax margins improved by addressing employee satisfaction, but customers, products, and the company itself are also positively affected. Profit and growth are stimulated directly (and primarily) by customer loyalty. Customer loyalty is a direct consequence of customer satisfaction. Customer satisfaction is heavily influenced by customer perceptions of the value of services they receive. Value is created by satisfied, loyal and productive employees. Employees who feel a sense of teamwork and common purpose, a strong commitment to communication, and managerial empowerment are most able, and willing, to deliver the results that customers expect (Employee Satisfaction, 2005) Don Wainwright, president of Wainwright Industries, a winner of the Malcolm Baldrige National Quality Award, made the point in 2001 that Jack Welch uses only three indicators to run giant General Electric. Hell tell you that the most effective and only numbers he needs to know are, in order of importance: employee satisfaction, customer satisfaction and cash flow (Employee Satisfaction, 2005). Studies completed in 1999 by the Hay Group for Fortune magazine have shown that even the most admired companies Intel, Coca-Cola, and GE to name a few each embrace the

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same basic company cultural values: teamwork, customer focus, innovation, and fair treatment of employees (Clark, 2001).

2.2 Importance of Employee Satisfaction

1. Importance of employee satisfaction for organization Enhance employee retention Increase productivity Increase customer satisfaction Reduce turn over, recruiting, and training cost. Enhance customer satisfaction and loyalty. More energetic employees. Improve teamwork Higher quality products and services due to more competent, energized employee.

2. Importance of employees satisfaction for employee Employee will believe that the organization will be satisfying in the long run. They will care about quality of their work. They will create and deliver superior value to the customer. They are more committed to the organization. Their works are more productivity.

2.3 Determinants of Employee Staisfaction


1. Mission and values Sense of purpose Organizational values and behaviors

2. Job satisfaction Job task Working environment and quality of working life Social environment

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3. Business competitiveness Market position Product development Customer consensus Attractiveness in work

4. Leadership Management skill Management style

5. Organization and structure Structure Communication Teamwork

6. Rewards and recognition Performance appraisal Promotion and recognition Monetary and non monetary rewards

7. Opportunity Training and staff development Career development

2.4 Definition of Organization Commitment


Organization commitment is defined as a state in which an employee identifies with a particular organization and its goals and wishes to maintain membership in the organization. It reflects a multidimensional psychological attachment of an individual to the organization, which plays a positive role in retention of members in the organization. As an attitude, organization commitment is most often defined as under: i. ii. iii. Strong desire to remain a member of a particular organization. Willingness to exert high levels of efforts on behalf of the organization, and Belief and acceptance of the values and goals of the organization.
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THREE DIMENSION MODEL This model has three components as under :( by Mayer and Allen) i. Affective commitment: involves the employees emotional attachment to identification with and involvement in the organization. For example the work experiences that make people feel competent. ii. Continuance commitment: involves commitment based on the costs that the employee associates with leaving the organization, for example, concern about losing ones job benefits. iii. Normative commitment: involves the employees feelings of obligation to stay with the organization. For example, my general manager will be disappointed if I left or people will think poorly of me. During the last decade, it has become clear that organizational commitment is a multidimensional construct that involves three dimensions: affective, continuance and normative. This conceptualization of organizational commitment is commonly known as the Meyer and Allens (1991) Three-Component Model of OC. Affective commitment refers to the employees emotional attachment to the organization. Employees with strong affective commitment remain with the organization because they want to do so. Continuance commitment refers to the extent to which the employee perceives that leaving the organization will be costly. Employees with strong continuance commitment remain because they have to do so. Finally, normative commitment refers to the employees feelings of obligation to the organization and the belief that staying is the right thing to do. Employees with strong normative commitment remain because they feel that they ought to do so (Meyer and Allen, 1991). The most desirable profile of organizational commitment amongst employees, especially those involved in the services industry which demands continuous good service, is affective commitment which is the most prevalent theme in the Meyer and Allen (1991) model. This study focused on the affective commitment dimension that captures the degree of affective or emotional attachment of employees in the service industry to the organizations.

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2.5 Indicators of Organization Commitment


i. ii. iii. iv. v. vi. Increased performance. Reduced voluntary turnover of employees. Reduced absenteeism rates. High level of willingness to share and make sacrifices. Perception of a warm supportive organizational climate. Enjoying successful careers and pleasant non-works lives.

2.6 HRM Practices and Organization Commitment


An employees commitment to an organization develops as a result of an exchange relationship (Gouldner, 1960; Shore & Tetrick, 1991). This exchange relationship has been investigated in the light of social exchange theory (Blau, 1964; Gouldner, 1960; Rousseau, 1990). According to Blau (1964), social exchanges entail unspecified obligations, in which an individual does another a favour and there is an expectation of some future return, though the time of occurrence and the form is often unclear. Social exchanges may also involve reciprocity (Blau, 1964) which has been defined as the norm which obligates the recipient of benefit to repay the donor in some way (Gouldner, 1960). Therefore, employee-employer relationship might be viewed as social exchange. The employer may acknowledge the employees efforts by offering opportunities and benefits, and in return for these opportunities and benefits, employees may feel obligated to reciprocate and may become more committed to the organization (Tansky & Cohen, 2001). Eisenberger et al., (1986) suggested the importance of reciprocity for developing organizational commitment and argued that employees tend to commit to their organizations if they see that their efforts are acknowledged and reciprocated. HRM practices and policies have been suggested as influencing factors to increase OC among employees (Ogilvie, 1986; Meyer & Smith, 2000; Arthur, 1994). Based on social exchange theory, Ogilvie (1986) proposed that employees perceptions of HRM practices reflect a sense of reciprocity and the level of organizations commitment to the employees when an employee feels that the organization cares about their welfare and recognizes their contributions. Consequently, it leads to the belief that the organization will provide a variety of symbolic and tangible rewards in exchange of their efforts and commitment. Hence HRM practices are proposed as a practical approach to develop employee commitment and found significant positive relationship between HRM practices

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and OC. Indeed OC was found to have a positive relationship with training (Bartlett, 2001; Tannenbaum, et al., 1991), salary levels (Ritzer & Trice, 1969), performance-reward contingencies (Lee, 1971; Rhodes & Steers, 1981), promotion (Kanter, 1977) and profit sharing (Coyle-Shapiro, et al., 2002). Eight HRM practices were obtained from other studies which showed significant effectiveness/anticipated significant effectiveness of these practices on OC, POS and PCs. Recruitment and selection, training and development, equal employment opportunities, and good and safe working conditions were included from Edgar and Geares (2005) study of the influence of HRM practices on OC. It was found that all four HRM practices had a significant positive relationship with OC. Performance appraisal effectiveness was included from Changs (2005) study of the influence of employees overall perception about the organizations HRM practices on OC. It was found that employees beliefs that the HRM practices of the organization were effective, resulted in higher OC. Performance appraisal effectiveness was one of the factors included in the study along with training effectiveness, staffing, grievance system and suggestion system effectiveness. Grievance system and suggestion system effectiveness were included in this study as information sharing. The effect of information sharing on OC got more support from a study by Kinicki, et al. (1992). The results showed that employee work attitudes (OC) are influenced by actual human resource programs. Building on their results, the authors proposed that along with using other HRM practices (training, staffing, etc.), when an organization shares information with its employees and asks for employee suggestions, employees tend to believe that the organization supports them and are committed to them (POS). In turn, this positive impression results in positive employee attitudes. Therefore, information sharing was included in this study as the literature provided support of its significant effectiveness on OC and POS. Benefits was included from a study by Lucero and Allen (1994). The number of employee benefits provided by employers and costs associated with these benefits has increased over the years. However, in order to cut labor costs, organizations are decreasing their benefits packages. However, many employees have become dependent on employer-provided benefits to help satisfy basic security needs. This has lead to a conflict between worker expectations and employer practices and it has resulted in violation of employee psychological contracts. The study proposes ideas for resolution of this employee-employer conflict, and that would result in psychological contract
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fulfilment. One proposed idea was to lower the costs of employee benefits without eliminating them, e.g. trade-off unused benefits for pay, emphasis on wellness programs and preventive health care measures etc. Therefore, benefits was included in this study because of its anticipated significant effectiveness with psychological contract fulfilment. Rewards was included from studies by Balkin and Gomez-Mejia (1990), and Chang & Chen (2002). A study by Landau and Hammer (1986) showed that employees who perceived opportunities of advancement in their organization were more committed to their organizations. Similarly, a study by Coyle-Shapiro, et al. (2002) showed the positive impact of profit sharing on OC. Arthur (1994) showed the impact of wages and bonus on organization performance. There is little research showing the impact of pay and bonus on OC, therefore the two factors were included in rewards as pay based on performance and bonus based on performance.

2.7 Relationship between Employee Satisfaction and Organizational Commitment


A positive association between employee satisfaction and organizational commitment has been consistently reported by studies. The links between organizational commitment and employee satisfaction are complex and it is not clear whether satisfaction is a precursor to commitment or whether commitment influences one's level of satisfaction. The dominant view in the literature supports the causal precedence of satisfaction over commitment. There is also evidence indicating that high levels of commitment to the organization cause employee satisfaction. Several other studies have concluded that a reciprocal effect exists between satisfaction and commitment. Employee satisfaction as a significant determinant of organizational commitment has been well documented in numerous studies (Porter et al., 1974; Mottaz, 1987; Williams and Anderson, 1991; Vanderberg and Lance, 1992; Knoop, 1995; Young, Worchel and Woehr, 1998; Testa, 2001). Hence, managers in todays organizations have placed great importance on the issue of satisfaction of their employees. This is because employees who are satisfied are more likely to be committed to their organizations. These workers, in return, are more likely to take pride in organizational membership, believe in the goals and values of the organization and, therefore, exhibit higher levels of performance and productivity (Steinhaus and Perry, 1996). Nasurdin and Ramayah (2003) have cited several studies on the predictors of organizational commitment, using Malaysian subjects. They
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commented that there were very few studies that focused on the relationship between job satisfaction and organizational commitment. Organizations are social systems where human resources are the most important factors for effectiveness and efficiency. Organizations cannot succeed without their employees' efforts and commitment. Employees' satisfaction with their jobs and commitment to their organizations has been viewed as major determinants of organizational effectiveness. Employee satisfaction and commitment are critical to retaining and attracting well-qualified personnel. Employees who experience satisfaction are more likely to be productive and stay on the job. Employee dissatisfaction has been found to be a strong and consistent predictor of intention to leave as well as turnover. Employees' commitment is a valuable asset in an organization. Research has shown that increased commitment improves employees' job satisfaction, motivation, performance and creativeness, and reduces absenteeism and turnover. Human resources are undoubtedly the most important resources in an organization. The very existence of an organization will be at stake without the efficient human resources, its goal remains unattainable unless its human resources are motivated, satisfied and are committed to the organization. The root source of quality and productivity gains is the employees. It is very important for organizations to see employees as the fundamental source of improvement. The need for ensuring spirit of cooperation, sense of commitment and satisfaction within the organizations sphere of influence had never been such an impending necessity. It becomes very important for people to love what they do and enjoy what they do, the enjoyment factor not only motivates the employee but also increases the efficiency on whole. At present times when organizations are facing tough challenges in retaining their key employees, it has become imperative to add elements in job that keeps employees attached to what they do and stick them to work where they work. This need has been not less important in third world countries like ours where the popular term brain-drain is squeezing companies out of their skilled manpower, intelligent executives and visionary managers. On the other front job satisfaction and organizational commitment have a great impact on the successful performance of an organization? Satisfied and committed employee identifies with the goals and values of the organization, and they put in that extra effort that plays the crucial role in leading the competition

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Chapter 3 Review of Related Literature


The concept of Employee Satisfaction can be traced back to Edward Thorndike, who in the early 1900s published an article in the Journal of Applied Psychology where he explored the relationship between work and satisfaction. The concept of Employee Satisfaction has certainly been researched very thoroughly over the years and has been linked to many other issues like employee loyalty, organization commitment, and employee engagement. Employee satisfaction is in regard to ones feelings or state of mind regarding the nature of their work. Employee satisfaction can be influenced by a variety of factors e.g., the quality of relationship with their supervisor, the quality of the physical environment in which they work and degree of fulfillment in their work, etc. It can also be discovered through examining the employees values. It is good not only for employees but employers, too to increase productivity and decreases staff change day by day. Employee satisfaction is the contentedness of individuals with their job. Employee job satisfaction is an attitude that people have about their jobs and the organizations in which they perform these jobs. Methodologically, we can define employee satisfaction as an employees affective reaction to a job, based on a comparison between actual outcomes and desired outcomes (Mosadeghrad, 2003b). Employee satisfaction is generally recognized as a multifaceted construct that includes employee feelings about a variety of both intrinsic and extrinsic job elements. It encompasses specific aspects of satisfaction related to pay, benefits, promotion, work conditions, supervision, organizational practices and relationships with coworkers (Misener et al., 1996).

The concept of employee satisfaction has been a focus for research and practice for the last two decades in particular (Gresley, et. al., 2005) and considered to be a critical issue for organizational performance. A number of scholars and management gurus stressed the importance of employee satisfaction and its influences on organizational performance as much as customer satisfaction (Chen, et. al., 2006). The concept of employee satisfaction is a multi-dimensional and inter disciplinary term that has been attracted the attention of researchers and practitioners from different disciplines such as psychology, human resource management, organizational behavior, TQM and so for. In literature there are a large number of studies that analyze the term from many different perspectives and its relationship with
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various organizational variables (Lund, 2003). However there is no universal definition of employee satisfaction that exposes all these dimensions at the same time (Bernal, et. al, 2005). Most of the definitions emphasize the importance of employees job-related perceptions that link the expectations of them and what they receive in return. Some researchers focus on the overall job satisfaction or even life satisfaction of employees (Judge, et. al, 2005) whereas some others underline a variety of satisfaction facets such as satisfaction with pay, promotion, supervisor, or co-workers. For example Locke, et. Al (1969) describes job satisfaction a pleasurable or positive emotional state resulting from the appraisal of one's job and job experiences. According to this, employee satisfaction is a function of the perceived relationship between what one wants from ones job and what one perceives it as offering (Locke, 1969). Judge, et. al, (1993), on the other hand, mentions that employee satisfaction is positively correlated with motivation, job involvement, organizational citizenship behavior, organizational commitment, life satisfaction, mental health, and job performance, and negatively related to absenteeism, turnover, and perceived stress and identify it as the degree to which a person feels satisfied by his/her job. Cranny, et. al, (1992), suggests that employee satisfaction encompasses a lot of different facets. Hence overall employee satisfaction describes a persons overall affective reaction to the set of work and work-related factors whereas the facets of job satisfaction involve workers feelings toward different dimensions of the work and work environment. In contrast, Rousseau (1978) identified three components of employee satisfaction: they are characteristics of the organization, job task factors, and personal characteristics. According to Rousseaus identification the characterization of the organization and the job task factors can be regarded as work factors in job satisfaction, while personal characteristics can be regarded as nonwork factors of job satisfaction (Hagihara, et. al, 1998). Human Resource Management (HRM) literature underlines the importance of employee satisfaction as well. The relationship between appropriate HRM practices and positive employee attitudes including employee satisfaction, loyalty and productivity have been widely analyzed (Edgar and Geare, 2005). It is also suggested that treating employees as a valuable asset improves their commitment and loyalty which leads to higher performance and quality (Silvestro, 2002). Organizational commitment has an important place in the study of organizational behavior. This is in part due to the vast number of works that have found relationships between organizational commitment and attitudes and behaviors in the workplace (Porter et al., 1974, 1976; Koch and
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Steers, 1978; Angle and Perry, 1981). Furthermore, Batemen and Strasser (1984) state that the reasons for studying organizational commitment are related to (a) employee behaviors and performance effectiveness, (b) attitudinal, affective, and cognitive constructs such as job satisfaction, (c) characteristics of the employees job and role, such as responsibility and (d) personal characteristics of the employee such as age, job tenure (p. 95-96). Multiple definitions of organizational commitment are found in the literature. Bateman and Strasser state that organizational commitment has been operationally defined as multidimensional in nature, involving an employees loyalty to the organization, willingness to exert effort on behalf of the organization, degree of goal and value congruency with the organization, and desire to maintain membership (p.95). Mowday, Steers, and Porter (1979) identified commitment-related attitudes and commitment-related behaviors. Porter et al. (1974) discuss three major components of organizational commitment as being a strong belief in and acceptance of the organizations goals, a willingness to exert considerable effort on behalf of the organization, and a definite desire to maintain organizational membership. Sheldon (1971) defines commitments as being a positive evaluation of the organization and the organizations goals. According to Buchanan (1974) most scholars define commitment as being a bond between an individual (the employee) and the organization (the employer), though his own definition of commitment. A review of organizational commitment research literature by Meyer and Allen (1991), and corroborated by Dunham, Gruba and Castaneda (1994), identified three types of organizational commitment: affective, continuance and normative. Affective commitment is defined as employee emotional attachment to, identification with, and involvement in the organization and its goals. It results from and is induced by an individual and organizational value congruency. As a result, it becomes almost natural for the individual to become emotionally attached to and enjoy continuing membership in the organization (March & Simon, 1958; Hall et. al., 1970; O'Reily & Chatman, 1986, Meyer & Allen, 1984). Steers (1977), and Mottaz, (1988), identified factors which help create intrinsically rewarding situations for employees to be antecedents of affective commitment. These factors include such job characteristics as task significance, autonomy, identity, skills variety and feedback concerning employee job performance, perceived organizational support or dependence (the feeling that the organization considers what is in the best interest of employees when making decisions that affect employment conditions and work

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environment), and the degree that employees are involved in the goal-setting and decision-making processes. Continuance commitment is defined as willingness to remain in an organization because of personal investment in the form of nontransferable investments such as close working relationships with coworkers, retirement investments and career investments, acquired job skills which are unique to a particular organization, years of employment in a particular organization, involvement in the community in which the employer is located, and other benefits that make it too costly for one to leave and seek employment elsewhere. Normative commitment is induced by a feeling of obligation to remain with an organization. Such a feeling of obligation often results from what Wiener (1982) characterized as "generalized value of loyalty and duty." This is an almost natural predisposition to be loyal and committed to institutions such as family, marriage, country, religion and employment organization as a result of socialization in a culture that places a premium on loyalty and devotion to institutions. This view of commitment holds that an individual demonstrates commitment behavior solely because she or he believes it is the moral and right thing to do. Schwartz and Tessler (1972) identified personal norms as the factor responsible for what Wiener referred to as an internalized normative pressure, that makes organizational commitment a moral obligation because the individual feels he or she ought to do so. This feeling of moral obligation is measured by the extent to which a person feels that he or she should be loyal to his or her organization, make personal sacrifice to help it out and not criticize it (Wiener and Verdi (1980). Common to all of the three types of commitment is the view that commitment is a psychological state that (a) characterizes the employee's relationship with the organization, and (b) has implication for the decision to continue or discontinue membership in the organization. Employees with a strong affective commitment remain with an organization because they want to, those with a strong continuance commitment remain because they have to, and those with a strong normative commitment remain because they feel they ought to (Meyer, Allen and Smith (1993). Allen and Meyer (1990), found, however, that these three classifications of commitment are conceptually and empirically separable. Even though there appears to be some overlap between affective and normative commitment, both were found to be relatively independent of continuance commitment. Therefore, they can be measured separately. Over the years, two basic approaches have been used to study organizational commitment: commitment-related attitudes and commitment-related behaviors. Each approach offers a slightly
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different definition. The commitment-related attitude approach defines organizational commitment as a partisan, affective attachment to the goals and values, and to the organization for its own sake, apart from its purely instrumental worth (Buchanan, 1974, p. 533). Porter, Crampton and Smith (1976) define it as the willingness of an employee to exert a high level of effort on behalf of the organization, a strong desire on behalf of the organization, and an acceptance of its major goals and values. According to Mowday, Steers and Porter (1979, p. 225), attitudinal commitment represents a state in which an individual identifies with a particular organization and its goals and wishes to maintain membership in order to facilitate these goals. The commitment-related behavior approach focuses on a behavioral pattern guided by internalized normative pressures to act in a way that meets organizational goals and interest (Wiener, 1982). Wiener and Gechman (1977) argued that the pattern of behavior resulting from commitment should possess the following characteristics: (1) it should reflect personal sacrifices made for the sake of the organization; (2) it should show persistence - that is, the behaviors should not depend primarily on environmental controls such as reinforcements or punishment, and (3) it should indicate a personal preoccupation with the organization, such as devoting a great deal of personal time to organizationrelated actions and thoughts. In this sense, organizational commitment is viewed as (1) willingness of an individual to identify with and the desire not to leave an organization for selfish interest or marginal gains; (2) willingness to work selflessly and contribute to the effectiveness of an organization; (3) willingness to make personal sacrifice, perform beyond normal expectations and to endure difficult times with an organization-- low propensity to "bail-out" in difficult times (4) acceptance of organization's values and goals -- the internalization factor. This study adopted the organizational commitment behavior-related approach.

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CHAPTER 4

RESEARCH DESIGN AND ANALYSIS


4.1 Objective of the report
This research will address the factors concerning Employee Satisfaction that impact organization commitment of the employees of Hindustan Steelworks Construction Limited, B.S.City. The research reveals employee satisfaction as an integral factor for organization for obtaining competitive advantages in terms of organization commitment. Employee satisfaction is an attribute pertinent to the workforce, which proves to be a valuable asset for the development of any sector. So the main objectives are: To focus on the factors that affects Employee Satisfaction. To assess the present employee satisfaction level. To find out how much employees are committed to their organization.

To find out the relationship between Employee Satisfaction and Organization Commitment. 4.2 Research Methodology

Research methodology is the systematic way to solve the research problem. It gives an idea about various steps adopted by the researcher in a systematic manner with an objective to determine various manners. Research Design A research design is considered as the framework or plan for a study that guides as well as helps the data collection and analysis of data. The research design may be exploratory, descriptive and experimental for the present study. The descriptive research design is adopted for this project. Research Approach I as the research worker will contact the respondents personally with well prepared sequentially arranged questions. The questionnaire is prepared on the basis of objectives of the study. Direct contact is used for survey, i.e., contacting employees directly in order to collect data. Research Instrument

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I will use a structured questionnaire as a research instrument tool which will consists of open ended questions and multiple choice in order to get data. Thus, Questionnaire is the data collection instrument that will be used in the study. All the questions in the questionnaire will be organized in such a way that elicits all the relevant information that is needed for the study. The survey used for my study is made up of three sections: demographics, employee satisfaction, and organizational commitment.

4.2 Sample Constitution


Sample size The study sample will constitute 50 respondents constituting the employees in the research area i.e.HSCL. Sampling Design I will use probability sampling in which random sampling is used. Collection of Data Most of the data collected by the researcher will be primary data through personal interview, where the researcher and the respondent operate face to face.

4.3 Hypothesis
Hypothesis simply means a mere assumption or some supposition that to be proved or disproved. It is a formal question that a researcher wants to resolve out. Null Hypothesis represents the hypothesis which we are trying to reject and Alternative hypothesis represents the one which one wishes to prove. H0: There is no direct relationship between employee satisfaction and organization commitment. H1: There is positive relationship between employee satisfaction and organization commitment.

4.4 Quantification of Respondents


A 5-point likert scale will be used to quantify each response of all the questions. Responses on the 5-point likert scale were strongly disagree, somewhat disagree, neutral, somewhat agree, strongly agree. Strongly disagree is most unfavorable answer thats why given 1 point, somewhat disagree is
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given 2 point, neutral is given 3, somewhat agree is given 4 and strongly agree is given 5 points as it is the most favorable answer.

4.5 Analysis of Data


The data are collected through survey and books, reports, newspapers and internet etc., the survey conducted among the employees of Hindustan Steel Corporation Ltd. The data collected by the researcher are tabulated and analyzed in such a way to make interpretations. Various steps, which are required to fulfill the purpose, i.e., editing, coding, and tabulating. Editing refers to separate, correct and modify the collected data. Coding refers to assigning number or other symbols to each answer for placing them in categories to prepare data for tabulation refers to bring together the similar data in rows and columns and totaling them in an accurate and meaningful manner. The collected data are analyzed and interrupted using statistical tools and techniques. I will make use of the correlation research technique. Its basically Karl Pearsons coefficient of correlation which is used to measure relationship between the two variables of employee satisfaction and organizational commitment, taking employee satisfaction as independent variable and organization commitment as dependent variable. With the purpose of being able to collect the data from our sample of employees working at HSCL, I put together a set of questions that would allow me to analyze the relationship between the two variables that are being studied.

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CHAPTER 5

ANALYSIS AND INTERPRETATION OF DATA 5.1 DESCRIPTIVE STATISTICS

5.1.1 Are you satisfied with the task you are given in your job?
SL NO PARTICULAR 1 2 3 4 5 Strongly disagree Somewhat disagree Cant say Somewhat agree Strongly agree Total NUMBER OF RESPONDENTS 2 9 1 21 10 50 PERCENTAGE 4 24 10 42 10 100

(Table 5.1.1)
45% 40% 35% 30% 25% 20% 15% 10% 5% 0% STRONGLY DISAGREE SOMEWHAT DISAGREE CAN'T SAY SOMEWHAT AGREE STRONGLY AGREE

(Chart 5.1.1)
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INTERPRETATION The table shows that 42% of the respondents somewhat agree and 10% strongly agree that they are satisfied with the job task they are given in organization. 5.1.2 Do you find your working environment good enough to work efficiently? SL NO PARTICULAR 1 2 3 4 5 Strongly disagree Somewhat disagree Cant say Somewhat agree Strongly agree Total (Table 5.1.2)
60% 50% 40% 30% 20% 10% 0% STRONGLY DISAGREE SOMEWHAT DISAGREE CAN'T SAY SOMEWHAT AGREE STRONGLY AGREE

NUMBER OF RESPONDENTS 0 11 0 12 27 50 PERCENTAGE 0 22 0 24 54 100

(Chart 5.1.2)

INTERPRETATION The table shows that 54% of the respondents are satisfied with the working environment of the organization.

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5.1.3 Are you satisfied with your co-workers?


SL NO PARTICULAR 1 2 3 4 5 Strongly disagree Somewhat disagree Cant Say Somewhat agree Strongly agree Total NUMBER OF RESPONDENTS 0 4 0 9 37 50 PERCENTAGE 0 8 0 18 74 100

(Table 5.1.3)
80% 70% 60% 50% 40% 30% 20% 10% 0% STRONGLY DISAGREE SOMEWHAT DISAGREE CAN'T SAY SOMEWHAT AGREE STRONGLY AGREE

(Chart 5.1.3)

INTERPRETATION Above chart represents that74% of employees strongly agreed that they are satisfied with morale and professionalism of co-workers.

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5.1.4 Do you have enough freedom in your position to take independent action when needed?

SL NO PARTICULAR 1 2 3 4 5 Strongly disagree Somewhat disagree Cant say Somewhat agree Strongly agree Total

NUMBER OF RESPONDENTS 1 15 2 12 20 50 (Table 5.1.4)


45% 40% 35% 30% 25% 20% 15% 10% 5% 0% STRONGLY DISAGREE SOMEWHAT DISAGREE CAN'T SAY SOMEWHAT AGREE STRONGLY AGREE

PERCENTAGE 2 30 4 24 40 100

(Chart 5.1.4)

INTERPRETATION The table shows 40% of employees strongly agree that they are given enough freedom in their position.

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5.1.5 Your supervisor responds to the issue that is important for you?

SL NO PARTICULAR 1 2 3 4 5 Strongly disagree Somewhat agree Cant Somewhat agree Strongly agree Total

NUMBER OF RESPONDENTS 0 0 0 12 38 50 PERCENTAGE 0 0 0 24 76 100

(Table 5.1.5)
80% 70% 60% 50% 40% 30% 20% 10% 0% STRONGLY DISAGREE SOMEWHAT DISAGREE CAN'T SAY SOMEWHAT AGREE STRONGLY AGREE

(Chart 5.1.5) INTERPRETATION The table shows 76% of employees agree that they are satisfied with the supervision they are given in the organization.

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5.1.6 Do you think management encourages your creativity and innovation?


SL NO PARTICULAR 1 2 3 4 5 Strongly disagree Somewhat agree Cant say Somewhat disagree Strongly Disagree Total (Table 5.1.6)
60% 50% 40% 30% 20% 10% 0% STRONGLY DISAGREE SOMEWHAT DISAGREE CAN'T SAY SOMEWHAT AGREE STRONGLY AGREE

NUMBER OF RESPONDENTS 1 2 4 17 26 50 PERCENTAGE 2 4 8 34 52 100

(Chart 5.1.6)

INTERPRETATION The table shows 52% of the respondents agree that the organization encourages their creativity and innovation.

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5.1.7 Are you satisfied with the organizations structure and culture of the company?

SL NO PARTICULAR 1 2 3 4 5 Strongly disagree Somewhat disagree Cant say Somewhat agree Strongly agree Total

NUMBER OF RESPONDENTS 0 9 3 23 15 50 (Table 5.1.7)


50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% STRONGLY DISAGREE SOMEWHAT DISAGREE CAN'T SAY SOMEWHAT AGREE STRONGLY AGREE

PERCENTAGE 0 18 6 46 30 100

(Chart 5.1.7)

INTERPRETATION The table shows 30% of the respondents agree to that they are satisfied with the organizations structure and culture.

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5.1.8 Are you satisfied with the performance appraisal system of this organization?

SL NO PARTICULAR 1 2 3 4 5 Strongly disagree Somewhat disagree Cant say Somewhat agree Strongly agree Total

NUMBER OF RESPONDENTS 13 17 6 7 7 50 (Table 5.1.8)


40% 35% 30% 25% 20% 15% 10% 5% 0% STRONGLY DISAGREE SOMEWHAT DISAGREE CAN'T SAY SOMEWHAT AGREE STRONGLY AGREE

PERCENTAGE 26 34 12 14 14 100

(Chart 5.1.8) INTERPRETATION The table shows only 14% of the respondents agree that they are satisfied with the performance appraisal system of the organization.

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5.1.9 Do you receive appropriate recognition for your contribution?


SL NO PARTICULAR 1 2 3 4 5 Strongly disagree Somewhat disagree Cant say Somewhat agree Strongly agree Total (Table 5.1.9)
60% 50% 40% 30% 20% 10% 0% STRONGLY DISAGREE SOMEWHAT DISAGREE CAN'T SAY SOMEWHAT AGREE STRONGLY AGREE

NUMBER OF RESPONDENTS 3 0 4 17 26 50 PERCENTAGE 6 4 8 34 52 100

(Chart 5.1.9)

INTREPRETATION The table shows that 52% of employees strongly agree that they are recognized for the contribution they made for the organization.

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5.1.10 Are you satisfied with the information and communication system of this organization?

SL NO PARTICULAR 1 2 3 4 5 Strongly disagree Somewhat disagree Cant say Somewhat agree Strongly agree Total

NUMBER OF RESPONDENTS 12 13 0 20 5 50 PERCENTAGE 24 26 0 40 10 100

(Table 6.1.10)
45% 40% 35% 30% 25% 20% 15% 10% 5% 0% STRONGLY DISAGREE SOMEWHAT DISAGREE CAN'T SAY SOMEWHAT AGREE STRONGLY AGREE

(Table 6.1.10) INTERPRETATION The table here shows that only 10% of employees are satisfied with the information and communication system of the organization.

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5.1.11 Do you find your job secured?


SL NO PARTICULAR 1 2 3 4 5 Strongly disagree Somewhat disagree Cant say Somewhat agree Strongly agree Total (Table 5.1.11)
70% 60% 50% 40% 30% 20% 10% 0% STRONGLY DISAGREE SOMEWHAT DISAGREE CAN'T SAY SOMEWHAT AGREE STRONGLY AGREE

NUMBER OF RESPONDENTS 0 3 0 2 45 50 PERCENTAGE 0 6 0 4 90 100

(Chart 5.1.11)

INTERPRETATION 90% of the employees strongly agree that their job is secured.

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5.1.12 Do you like the team spirit in your career development?

SL NO PARTICULAR 1 2 3 4 5 Strongly Disagree Somewhat Disagree Cant Say Somewhat Agree Strongly Agree Total

NUMBER OF RESPONDENTS 5 8 2 13 22 50 (Table 5.1.12)


50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% STRONGLY DISAGREE SOMEWHAT DISAGREE CAN'T SAY SOMEWHAT AGREE STRONGLY AGREE

PERCENTAGE 10 16 4 26 44 100

(Chart 5.1.12)

INTERPRETATION The table shows 44% of the respondents agree that the performance appraisal activities are helpful to get motivated.

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5.1.13 Are you satisfied with the training and staff development opportunity in your organization?

SL NO PARTICULAR 1 2 3 4 5 Strongly disagree Somewhat disagree Cant say Somewhat agree Strongly agree Total

NUMBER OF RESPONDENTS 10 15 3 12 10 50 (Table 5.1.13)


35% 30% 25% 20% 15% 10% 5% 0% STRONGLY DISAGREE SOMEWHAT DISAGREE CAN'T SAY SOMEWHAT AGREE STRONGLY AGREE

PERCENTAGE 20 30 6 24 20 100

(Chart 5.1.13)

INTERPRETATION The table shows only 20% of employees agree that they are satisfied with the training and development facilities they are given by the organization.

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5.1.14 Is there enough opportunity for your career development?

SL NO PARTICULAR 1 2 3 4 5 Strongly disagree Somewhat disagree Cant say Somewhat agree Strongly agree Total

NUMBER OF RESPONDENTS 6 15 1 19 9 50 (Table No.5.1.14)


40% 35% 30% 25% 20% 15% 10% 5% 0% STRONGLY DISAGREE SOMEWHAT DISAGREE CAN'T SAY SOMEWHAT AGREE STRONGLY AGREE

PERCENTAGE 12 30 2 38 18 100

(Chart 5.1.14)
INTERPRETATION The table shows that only 18% of the employees agree and 38% of employees somewhat agree that they are satisfied with the career development opportunities they are provided by the organization.

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INDICATORS OF ORGANISATIONAL COMMITMENT


5.1.15 Are you proud to work for the company? SL NO PARTICULAR 1 2 3 4 5 Strongly disagree Somewhat disagree Cant say Somewhat agree Strongly agree Total NUMBER OF RESPONDENTS 0 0 1 11 38 50 PERCENTAGE 0 0 2 22 76 100

(Table No.5.1.15)
80% 70% 60% 50% 40% 30% 20% 10% 0% STRONGLY DISAGREE SOMEWHAT DISAGREE CAN'T SAY SOMEWHAT AGREE STRONGLY AGREE

Chart 5.1.15 INTERPRETATION Chart shows that majority of the employees of HSCL strongly agree that they are proud to work for their company.

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5.1.16 RARELY REMAIN ABSENT FROM THE WORK SL NO PARTICULAR 1 2 3 4 5 Strongly disagree Somewhat disagree Cant say Somewhat agree Strongly agree Total NUMBER OF RESPONDENTS 0 1 0 3 46 50 PERCENTAGE 0 2 0 6 92 100

(Table No.5.1.16)
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% STRONGLY DISAGREE SOMEWHAT DISAGREE CAN'T SAY SOMEWHAT AGREE STRONGLY AGREE

Chart 5.1.16 INTERPRETATION: Chart shows that 92% of the HSCL employees strongly agree that they rarely remain absent from the work.

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5.1.17 Do you perceive the organizational climate as supportive? SL NO PARTICULAR 1 2 3 4 5 Strongly disagree Somewhat disagree Cant say Somewhat agree Strongly agree Total NUMBER OF RESPONDENTS 0 0 0 2 48 50 PERCENTAGE 0 0 0 4 96 100

(Table No.5.1.17)
120% 100% 80% 60% 40% 20% 0% STRONGLY DISAGREE SOMEWHAT DISAGREE CAN'T SAY SOMEWHAT AGREE STRONGLY AGREE

Chart 5.1.17 INTERPRETATION Chart shows that 96% of the HSCL employees strongly agree that they have supportive organizational climate.

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5.1.18 Are you willing to share and make sacrifices for this company? SL NO PARTICULAR 1 2 3 4 5 Strongly disagree Somewhat disagree Cant say Somewhat agree Strongly agree Total NUMBER OF RESPONDENTS 4 6 3 9 28 50 PERCENTAGE 8 12 6 18 56 100

(Table No.5.1.18)
60% 50% 40% 30% 20% 10% 0% STRONGLY DISAGREE SOMEWHAT DISAGREE CAN'T SAY SOMEWHAT AGREE STRONGLY AGREE

Chart 5.1.18 INTERPRETATION Chart shows that 56% of HSCL employees agree that they are willing to share and sacrifice for the company.

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5.1.19 Do you consider organizational goal higher than the individual goal? SL NO PARTICULAR 1 2 3 4 5 Strongly disagree Somewhat disagree Cant say Somewhat agree Strongly agree Total NUMBER OF RESPONDENTS 4 3 0 28 15 50 PERCENTAGE 8 6 0 56 30 100

(Table No.5.1.19)
60% 50% 40% 30% 20% 10% 0% STRONGLY DISAGREE SOMEWHAT DISAGREE CAN'T SAY SOMEWHAT AGREE STRONGLY AGREE

(Chart 6.1.19) INTERPRETATION This chart shows that 30% of employees strongly agree and 56% of employees somewhat agree that organizational goal is higher than their individual goal.

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5.1.20 Do you want to maintain a long term association with the company? SL NO PARTICULAR 1 2 3 4 5 Strongly disagree Somewhat disagree Cant say Somewhat agree Strongly agree Total NUMBER OF RESPONDENTS 1 7 5 7 30 50 PERCENTAGE 2 14 10 14 60 100

(Table No.5.1.20)
70% 60% 50% 40% 30% 20% 10% 0% STRONGLY DISAGREE SOMEWHAT DISAGREE CAN'T SAY SOMEWHAT AGREE STRONGLY AGREE

(Chart 5.1.20) INTERPRETATION The chart shows that 60% employees of the organization strongly agree that they want to maintain a long term association with the company.

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5.2 Details of Demographic Questions


Question number 1 in which department to which employees belong to is asked: HR: 4, Stores:8, Marketing and Sales: 9,Purchase:5, Accounts:10, Administration:3 and Any Other Department:11.

Employees Department
ANY OTHER 22% ADMINISTRATI ON 6%

HR 8%

STORES 16%

ACCOUNTS 20% MARKETING AND SALES PURCHASE 18% 10%

We can better see it in the above chart in percentage. Question number 2 in which their gender is been asked: Male employees were 42 and female employees were 8.

GENDER

84%

16%

MALE

FEMALE

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Question number 3 in which employees are asked for how many years they worked for the company. Less than 6 months: 2 6 months - 1 year: 5 1-2 years: 8 3-5 years: 3 Above 5 years: 32

Work Experience
64%

16% 10% 4% <6 months 6 months-1 yr 1-2 years 6%

3-5 years

>5 years

So, we can analyze from the above chart that most of the employees whom the questions are been asked have been working for HSCL for last 5 years.

5.3 Overall level of Satisfaction of Employees of HSCL


By examining the data generated from the responses given by the employees of HSCL, a level of satisfaction for them is determined. Employees were asked to respond to fourteen questions relating to employee satisfaction on the survey instrument using a Likert scale. The selections in the Likert scale were: (a) strongly disagree, (b) somewhat disagree, (c) neutral, (d) somewhat agree, and (e) strongly agree. Because the answers were on a scale ranging from strongly disagree to strongly agree, a weighted scoring system was used to compile the results.

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For purposes of this study the first answer, strongly disagree, was assigned one point; the second, disagree, was assigned two points and so forth, with the fifth answer, strongly agree, receiving five points. A satisfaction score for each employee was generated from the responses collected from the fourteen questions relating to employee satisfaction in the written questionnaire (Questions 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16 and 17). If an employee responded strongly agree to every one of the fourteen questions relating to employee satisfaction, the score would be 70 (five points for each question times fourteen questions). If an employee responded disagree strongly to every one of the fourteen questions relating to employee satisfaction, the score would be 14 (one point for each question times fourteen questions). Based on the total points employees received from their responses to the preceding questions, Table 6.3.1 was created to describe levels of satisfaction. For example, if the adjusted points to an employees responses totaled 63, based on Table 4.1, the employee would be considered satisfied. Table 5.3.1 Level of satisfaction based on an employees total score

Dissatisfied 14-41 Satisfied 42-70

So analyzing the data collected I have given the score to all 50 employees. Following chart can describe the level of satisfaction based on the employees total score and categorize them into satisfied and dissatisfied employees. Number of employees scored between 14-41 is 7 which means 14% of employees are unsatisfied, whereas number of employees scored between 42-70 is 43 which means 86% of employees are satisfied. Sum total of employee satisfaction scores of all employees of HSCL is 2824 and its average is 56.4 which is above 41 and thus proves that employees of HSCL are fairly satisfied.

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Level of Satisfaction
86

14

UNSATISFIED EMPLOYEES

SATISFIED EMPLOYEES

5.4 Overall level of Organization Commitment of Employees of HSCL


By examining the data generated from the responses given by the employees of HSCL, a level of commitment for them is determined. Employees were asked to respond to fourteen questions relating to employee satisfaction on the survey instrument using a Likert scale. The selections in the Likert scale were: (a) strongly disagree, (b) somewhat disagree, (c) neutral, (d) somewhat agree, and (e) strongly agree. Because the answers were on a scale ranging from strongly disagree to strongly agree, a weighted scoring system was used to compile the results. For purposes of this study the first answer, strongly disagree, was assigned one point; the second, disagree, was assigned two points and so forth, with the fifth answer, strongly agree, receiving five points. A commitment score for each employee was generated from the responses collected from the six questions relating to organization commitment of employee in the written questionnaire (Questions 18, 19, 20, 21, 22, and 23). If an employee responded strongly agree to every one of the six questions relating to organization commitment, the score would be 30 (five points for each question times six questions). If an employee responded disagree strongly to every one of the fourteen questions relating to employee satisfaction, the score would be 6 (one point for each question times 6 questions). Based on the total points employees of HSCL received from their responses to the
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preceding questions, Table 6.4.1 was created to describe five levels of satisfaction. For example, if the adjusted points to an employees responses totaled 26, based on Table 4.6, the employee would be considered committed. Table 5.4.1 Level of commitment based on an employees total score

Not Committed 6-17 Committed 18-30

So analyzing the data collected I have given the score to all 50 employees. Following chart can describe the level of commitment based on the employees total score and categorize them into committed and non-committed employees.

Level of Commitment
88

12

NON-COMMITTED EMPLOYEES

COMMITTED EMPLOYEES

Number of employees scored between 6-17 is 6 which mean 12% of employees are non-committed employees, whereas number of employees scored between 18-30 is 44 which means 86% of employees are committed. Sum total of employee commitment scores of all employees of HSCL is 1146 and its average is 22.92 which is above 17 and thus proves that employees of HSCL are fairly committed.
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5.5 Line Representation of Employees Individual Scores


Following line chart shows the relation between employees individual score related to their satisfaction and commitment level. We can easily see that X-axis which represents employee satisfaction score and Y-axis which represents employees commitment score are moving along almost in same direction which proves that there is change in employees commitment level with the change in employees satisfaction level means higher the employees satisfaction score, higher is his commitment score and lower the employees satisfaction score lower is his commitment score.

80 60 40 20 0 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 X X Y

5.6 Employee Satisfaction and Organization Commitment Correlation Analysis


Through correlation analysis, the strength of a relationship between two variables can be determined. It can be observed whether variables tend to shift in the same or opposite directions when one of the variables changes. In case of this analysis, the relationship between satisfaction and commitment was analyzed. The data used to conduct the Pearsons product-moment correlation coefficient in this analysis included all of the responses to questions 4 through 23. Questions

4,5,6,7,8,9,10,11,12,13,14,15,16, and 17 supplied the data for the satisfaction variable; while questions 18,19,20,21,22, and 23 supplied the data for the commitment variable. Formula of

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coefficient correlation is as follows:

( (
Value of r lies between

) ( ) (

) )

1, positive value indicates positive correlation and negative value indicates

negative correlation.Using statistical analysis software (SAS) in Microsoft excel, a correlation coefficient of 0.875813 was identified from the response of HSCL employees which is apparently showing that its a positive outcome therefore indicates positive correlation between employee satisfaction and organization commitment. Since the value near to 1 so, we can say that they are highly correlated.

5.7 Hypothesis Testing of Correlation Coefficient


We may now be interested in knowing whether the correlation coefficient that we calculate on the basis of sample data is indicative of significant correlation. For this purpose we may use normally either the t-test or the f-test depending upon the type of correlation coefficient. In case of simple correlation coefficient we use t-test. Formula is:

t=
Where; (n-2)=degree of freedom = coefficient of correlation

Now the calculated value of t is compared with its table value and if the calculated value is less than the table value, we accept the null hypothesis at the given level of significance and may infer that there is no relationship of statistical significance between the two variables. But, here the calculated value of t is 17.218 which is higher than the its table value at 0.5 level of significance which leads us to accept the alternative hypothesis that there is positive relationship between employee satisfaction and organization commitment.
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CHAPTER 6

FINDINGS Findings of my research are as follows: Question One: Employees Level of Satisfaction One of the purposes of this study was to discover if the employees of HSCL are satisfied with their jobs or not. The study showed 86% of the employees of HSCL are satisfied with their jobs. But when compared the overall satisfaction level the company, the average score HSCL employee is 56.4 which clearly shows that HSCL employees are fairly satisfied. Question Two: Employees Level of commitment Another purpose of this study was to discover if the employees of HSCL are committed enough toward the organization or not. The data revealed that when employees were asked about the question regarding their level, 88% of employees of the company are committed. But when compared the overall commitment level of both the companies, the average score HSCL employee is 22.92 which clearly shows that HSCL employees fairly committed to their organization.

Question Three: Elements of Satisfaction Answering to my open ended questions i.e. question no. 24, 25, and 26 regarding most important satisfaction factor and the factor which make them feel committed towards the organization, they replied me in following way Most of the HSCL employees whom I asked the questions were associated with the organization for more than 5 years and working even after retirement and find their redeployment as the major satisfaction factor because they think management has recognized their potential and decided to make them associated with the company. The quality of supervision and understanding of company goals were the most important employeesatisfaction factors affecting organizational commitment. Enabling employees to freely contribute in an organization can have a substantial positive effect on a company. Keeping employees informed and getting them involved in decisions that affect their work builds trust and feelings of self-worth. Involving employees helps employees feel that they are

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trusted and needed, which increases their contributions and production Providing training, rather than terminating employees, was a major key to improving profitability. So training not only equips employees to perform their jobs in a satisfactory manner, but it also is critical in terms of employees feeling good about working for their organization because as employees are trained and become more specialized and educated, opportunities for growth on a personal level as well as within the organization Management play a very important role in employee satisfaction because when they asked about the managers leadership abilities impact their interest in remaining with the organization, most of them responded positively. Other important employee satisfaction factors are: 1. Recognition and Appreciation. This corresponds with the employees being acknowledged by management in one form or another for completing tasks and responsibilities. Oftentimes, on-site supervisors just want to hear that their work is appreciated and that it is making a difference in the company. 2. Financial Compensation. This refers to the compensation an employee receives through an annual salary and year-end bonuses. 3. Work Environment. This consists mostly of the working relationship an employee has with coworkers. 4. Advancement Opportunities. This includes not only moving up in the company but taking on more responsibility within a given job description. 5. Benefits and Perks, includes everything from health packages to allowances and company perks. Hypothesis: Employee Satisfaction and Organization Commitment Correlation Hypothesis states that employees of the company who are satisfied are more committed towards the organization than the employees who are not satisfied. This study revealed a Pearsons productmoment correlation of 0.875813 on the basis of response of HSCL employees. It clearly denotes a strong, positive correlation between the level of satisfaction and their commitment level. Put simply, as the satisfaction level of employees increases, the level of commitment also increases. Based on the review of literature and the results of this study, when an employer does everything to satisfy the employees, a positive reaction should occur. So, lastly I can say that employee satisfaction is really an organizational commitment enhancement tool.
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CHAPTER 7

SUGGETIONS Suggestions for Employer


Employees are not that much satisfied with the their co-workers. So, organization need to work on this area so that employees come closer to each other, for example informal parties, tour etc.

I too come to know that HSCL has many incentive programs but are not communicated well enough, or written clearly enough, so employees are not sure what to expect. This causes the employee to lose motivation and satisfaction in their job.

Information and communication system should also be improved and employees should be updated with the current happenings of the company. Employer should communicate and share his ideas, problems and concerns and employees will surely want to contribute to organizations success. Employees complain about the internal communication, because they dont receive information about the company in a timely manner. Communication is so important; employees should be treated as a valuable part of the whole picture.

Training and development is also a key element of employee satisfaction which ultimately increases organization commitment needs to be upgraded so that employee feel more attached towards the organization.

I would also suggest the organization to give more opportunities of career development to the employees so that they can see their bright future and feel obliged towards the organization and may decide to maintain a long term association with the companies.

Many a times different yardsticks applies to different workers at different times- can very well demoralize the employees thereby decreasing their level of commitment.

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Suggestions for Employees

Choose to be happy at work: employees should think positively about their work. They should dwell on the aspects of work they like. Avoid negative people and gossip. Find coworkers you like and enjoy and spend your time with them.

Employees should take charge of their own growth; they should ask for specific and meaningful help from their boss.

They should ask for the feedback frequently.

Employees should seek out the information they need to work effectively. Develop an information network and use it.

Avoid negativity: Choosing to be happy at work means avoiding negative conversations, gossip, and unhappy people as much as possible. No matter how positively employee feel, negative people have a profound impact on your psyche.

Practice professional courage: If the conflict is meaningful can also help you accomplish your work mission and your personal vision. Conflict can help you serve customers and create successful products. Happy people accomplish their purpose for working.

Make friends: Liking and enjoying your coworkers are hallmarks of a positive, happy work experience. Take time to get to know them. You might actually like and enjoy them. Your network provides support, resources, sharing, and caring.

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CHAPTER 8 CONCLUSION This study set out to assess the level of employee satisfaction and organizational commitment in the organization named HSCL and to examine the relationship between these two variables. From the results of this study, the employee satisfaction level can be seen to be fair mainly because of salary and benefits, job security, working conditions and recognition. It is recommended that particular attention to be given to improve employee satisfaction by addressing issues like training and development, career development opportunities and information and communication system. Organization commitment level is also fair and only those employees are seem to be less committed towards the organization who are working there for less than 5 years or are female employees. Some main factors which lead to the employee satisfaction is recognition and appreciation, financial compensation, work environment, advancement opportunities and benefits and perks. The study confirmed a positive relationship existing between employee satisfaction and organization commitment. Findings revealed that employees who were more satisfied with their job and organization as a whole had higher levels of organization commitment. The result supported the Hypothesis 1 that employee satisfaction is positively related to organization commitment. Human resources are undoubtedly the most important resources in an organization. The very existence of an organization will be at stake without the efficient human resources, its goal remains unattainable unless its human resources are motivated, satisfied and are committed to the organization.

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Limitation
Most of the respondents are executive ranked managers, so difficulty was faced in taking appointments and due to short of time some of them answered me verbally. Every respondent didnt answer the open ended questions.

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References
BOOKS: DEREK TORRINGTON, LAURA HALL, STEPHEN TAYLORs Human Resource Management, Prentice Hall, 6th edition. JHON R. SCHERMERHORN Jr,JAMES G.HUNT,RICHARD N.OSBORNs Organizational Behaviour,7th edition. WEBSITES: www.hscl.co.in www.sail.co.in www.bokarosteellimited.co.in www.managementparadise.com
www.hrmba.blogspot.com www.scribd.com

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