42

CONTENTS

CHAPTER CONTENTS PAGE NO.

Introduction
1-4
Objectives of the
study 5

1 Scope 6

Research
Methodology 7-8

Limitations
9
Industry Profile
2 10-15
Company Profile
16-21
Review of Literature
3 22-38
Data Analysis and
4 Interpretation 39-50

Conclusions
5 51-52
Suggestions
53
Questionnaire
Appendix 54-55
Bibliography
56
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CHAPTER -1
INTRODUCTION
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INTRODUCTON
Job Satisfaction
The father of scientific management Taylor's (1911) approach to job satisfaction was based on a
most pragmatic & essentially pessimistic philosophy that man is motivation by money alone. That
the workers are essentially 'stupid & phlegmatic' & that they would be satisfied with work if they get
higher economic benefit from it. But with the passage of time Taylor's solely monetary approach has
been changed to a more humanistic approach. It has come a long way from a simple explanation
based on money to a more realistic but complex approach to job satisfaction. New dimensions of
knowledge are added every day & with increasing understanding of new variables & their inter play,
the field of job satisfaction has become difficult to comprehend.

The term job satisfaction was brought to limelight by Hoppock (1935). He reviewed 32 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'. Locke defines job satisfaction as a "pleasurable or positive emotional state
resulting from the appraisal of one's job or job experiences". To the extent that a person's job fulfils
his dominant need & is consistent with his expectations & values, the job will be satisfying.

Job satisfaction has been defined as a pleasurable emotional state resulting from the appraisal of
one’s job; an affective reaction to one’s job; and an attitude towards one’s job.

Job satisfaction describes how content an individual is with his or her job. The happier people are
within their job, the more satisfied they are said to be. Job satisfaction is not the same as motivation,
although it is clearly linked. Job design aims to enhance job satisfaction and performance, methods
include job rotation, job enlargement and job enrichment. Other influences on satisfaction include
the management style and culture, employee involvement, empowerment and autonomous work
groups. Job satisfaction is a very important attribute which is frequently measured by organizations.
The most common way of measurement is the use of rating scales where employees report their
reactions to their jobs. Questions relate to rate of pay, work responsibilities, variety of tasks,
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promotional opportunities the work itself and co-workers. Some questioners ask yes or no questions
while others ask to rate satisfaction on 1-5 scale (where 1 represents "not at all satisfied" and 5
represents "extremely satisfied").

Definitions
Job satisfaction has been defined as a pleasurable emotional state resulting from the appraisal of
one’s job.
An affective reaction to one’s job.and an attitude towards one’s job.Weiss (2002) has argued that job
satisfaction is an attitude but points out that researchers should clearly distinguish the objects of
cognitive evaluation which are affect (emotion), beliefs and behaviours. This definition suggests that
we form attitudes towards our jobs by taking into account our feelings, our beliefs, and our behaviors

History
One of the biggest preludes to the study of job satisfaction was the Hawthorne studies. These studies
(1924-1933), primarily credited to Elton Mayo of the Harvard Business School, sought to find the
effects of various conditions (most notably illumination) on workers’ productivity. These studies
ultimately showed that novel changes in work conditions temporarily increase productivity (called
the Hawthorne Effect). It was later found that this increase resulted, not from the new conditions, but
from the knowledge of being observed. This finding provided strong evidence that people work for
purposes other than pay, which paved the way for researchers to investigate other factors in job
satisfaction.

Scientific management (aka Taylorsim) also had a significant impact on the study of job satisfaction.
Frederick Winslow Taylor’s 1911 book, Principles of Scientific Management, argued that there was
a single best way to perform any given work task. This book contributed to a change in industrial
production philosophies, causing a shift from skilled labor and piecework towards the more modern
approach of assembly lines and hourly wages. The initial use of scientific management by industries
greatly increased productivity because workers were forced to work at a faster pace. However,
workers became exhausted and dissatisfied, thus leaving researchers with new questions to answer
regarding job satisfaction. It should also be noted that the work of W.L. Bryan, Walter Dill Scott, and
Hugo Munsterberg set the tone for Taylor’s work.

Some argue that Maslow’s hierarchy of needs theory, a motivation theory, laid the foundation for job
satisfaction theory. This theory explains that people seek to satisfy five specific needs in life –
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physiological needs, safety needs, social needs, self-esteem needs, and self-actualization. This model
served as a good basis from which early researchers could develop job satisfaction theories.

Job satisfaction can also be seen within the broader context of the range of issues which affect an
individual's experience of work, or their quality of working life. Job satisfaction can be understood in
terms of its relationships with other key factors, such as general well-being, stress at work, control at
work, home-work interface, and working conditions.
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OBJECTIVES

The objectives of the study as follow:

 To access the satisfaction level of employees.

 To identify the factor which influences the job satisfaction of employees?

 To identify the factor which improve the satisfaction level of employees?

 To know the employee satisfaction towards the facilities.

 To offer valuable suggestion to improve the satisfaction level of employees.

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Scope of the study:

This study emphasis in the following scope:

1) To identify the employees level of satisfaction upon that job.

2) This study is helpful to that organization for conducting further research.
3) It is helpful to identify the employer’s level of satisfaction towards welfare
Measure.
4) This study is helpful to the organization for identifying the area of dissatisfaction
Of job of the employees.
5) This study helps to make a managerial decision to the company.
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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 period:

The research period of the study has from May 3 to June 18-2010having 45 days of duration

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:

The research worker contacted the respondents personally with well- prepared sequentially
arranged questions. The questionnaire is prepared on the basis of objectives of the study. Direct
contract is used for survey, i.e., contacting employees directly in order to collect data.

Sample size:

The study sample constitutes 20 respondents constituting in the research area.

Sampling Area:

The study is conducted in employees of Neulands pharmaceutical laborotaries, Pvt Ltd.

Collection of Data:
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Most of the data collected by the researcher is primary data through personal interview,
where the researcher and the respondent operate face – to – face.

Research Instrument:

The researcher has used a structured questionnaire as a research instrument tool which
consists of open ended questions, multiple choice and dichotomous questions in order to get data.
Thus, Questionnaire is the data collection instrument used in the study. All the questions in the
questionnaire are organized in such a way that elicit all the relevant information that is needed for the
study.

Statistical Tools:

The statistical tools used for analyzing the data collected are percentage method, chi square, bar
diagrams and pie diagrams.
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LIMITATIONS

 This study is limited to “Neuland labs, Ameerpet-Hyderabad”.

 The questionnaires were distributed among the employees of head office.

 Employees of the R&D and Production department were not considered.

 The other branches of Neuland Labs were not well thought out.
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CHAPTER -2
(INDUSTRY AND ORGANIZATION PROFILE)
 42

INDUSTRY PROFILE

History

The earliest drugstores date back to the middle Ages. The first known drugstore was opened by
Arabian pharmacists in Baghdad in 754, and many more soon began operating throughout the
medieval Islamic world and eventually medieval Europe. By the 19th century, many of the drug
stores in Europe and North America had eventually developed into larger pharmaceutical companies.

Most of today's major pharmaceutical companies were founded in the late 19th and early 20th
centuries. Key discoveries of the 1920s and 1930s, such as insulin and penicillin, became mass-
manufactured and distributed. Switzerland, Germany and Italy had particularly strong industries,
with the UK, US, Belgium and the Netherlands following suit.

The pharmaceutical industry entered the 1980s pressured by economics and a host of new
regulations, both safety and environmental, but also transformed by new DNA chemistries and new
technologies for analysis and computation. Drugs for heart disease and for AIDS were a feature of
the 1980s, involving challenges to regulatory bodies and a faster approval process.

Managed care and Health maintenance organizations (HMOs) spread during the 1980s as part of an
effort to contain rising medical costs, and the development of preventative and maintenance
medications became more important. A new business atmosphere became institutionalized in the
1990s, characterized by mergers and takeovers, and by a dramatic increase in the use of contract
research organizations for clinical development and even for basic R&D. The pharmaceutical
industry confronted a new business climate and new regulations, born in part from dealing with
world market forces and protests by activists in developing countries.

Research and Development

Drug discovery is the process by which potential drugs are discovered or designed. In the past most
drugs have been discovered either by isolating the active ingredient from traditional remedies or by
serendipitous discovery. Modern biotechnology often focuses on understanding the metabolic
 42

pathways related to a disease state or pathogen, and manipulating these pathways using molecular
biology or Biochemistry. A great deal of early-stage drug discovery has traditionally been carried out
by universities and research institutions.

Drug development refers to activities undertaken after a compound is identified as a potential drug
in order to establish its suitability as a medication. Objectives of drug development are to determine
appropriate Formulation and Dosing, as well as to establish safety. Research in these areas generally
includes a combination of in vitro studies, in vivo studies, and clinical trials. The amount of capital
required for late stage development has made it a historical strength of the larger pharmaceutical
companies.

The cost of innovation

Drug discovery and development is very expensive; of all compounds investigated for use in humans
only a small fraction are eventually approved in most nations by government appointed medical
institutions or boards, who have to approve new drugs before they can be marketed in those
countries. Each year, only about 25 truly novel drugs (New chemical entities) are approved for
marketing. This approval comes only after heavy investment in pre-clinical development and clinical
trials, as well as a commitment to ongoing safety monitoring. Drugs which fail part-way through this
process often incur large costs, while generating no revenue in return. If the cost of these failed drugs
is taken into account, the cost of developing a successful new drug (New chemical entity or NCE),
has been estimated at about 1 billion USD (not including marketing expenses). A study by the
consulting firm Bain & Company reported that the cost for discovering, developing and launching
(which factored in marketing and other business expenses) a new drug (along with the prospective
drugs that fail) rose over a five year period to nearly $1.7 billion in 2003.

These estimates also take into account the opportunity cost of investing capital many years before
revenues are realized (see Time-value of money). Because of the very long time needed for
discovery, development, and approval of pharmaceuticals, these costs can accumulate to nearly half
the total expense. Some approved drugs, such as those based on re-formulation of an existing active
ingredient (also referred to as Line-extensions) are much less expensive to develop.

Calculations and claims in this area are controversial because of the implications for regulation and
subsidization of the industry through federally funded research grants. It is important in drug
formulation.
 42

Industry revenues

For the first time ever, in 2006, global spending on prescription drugs topped $643 billion, even as
growth slowed somewhat in Europe and North America. The United States accounts for almost half
of the global pharmaceutical market, with $289 billion in annual sales followed by the EU and Japan.
Emerging markets such as China, Russia, South Korea and Mexico outpaced that market, growing a
huge 81 percent.

US profit growth was maintained even whilst other top industries saw slowed or no growth. Despite
this, "..The pharmaceutical industry is — and has been for years — the most profitable of all
businesses in the U.S. In the annual Fortune 500 survey, the pharmaceutical industry topped the list
of the most profitable industries, with a return of 17% on revenue."

Teradata Magazine predicted that by 2007, $40 billion in U.S. sales could be lost at the top 10
pharmaceutical companies as a result of slowdown in R&D innovation and the expiry of patents on
major products, with 19 blockbuster drugs losing patent.
 42

Market leaders in terms of revenue

Revenue Total Healthcare Net income/ Employee

Rank Company Country Revenues R&D 2006 (loss) 2006
(USD millions s 2006
2008 )
(USD millions) (USD millions)

1 Novartis Switzerland 53,324 7,125 11,053 138,000

2 Pfizer USA 48,371 7,599 19,337 122,200
3 Bayer Germany 44,200 1,791 6,450 106,200
GlaxoSmithKl United
4 42,813 6,373 10,135 106,000
ine Kingdom
Johnson and
5 USA 37,020 5,349 7,202 102,695
Johnson
Sanofi-
6 France 35,645 5,565 5,033 100,735
Aventis
Hoffmann–La
7 Switzerland 33,547 5,258 7,318 100,289
Roche
8 AstraZeneca UK/Sweden 26,475 3,902 6,063 50,000+
9 Merck & Co. USA 22,636 4,783 4,434 74,372
Abbott
10 USA 22,476 2,255 1,717 66,800
Laboratories
11 Wyeth USA 20,351 3,109 4,197 66,663
Bristol-Myers
12 USA 17,914 3,067 1,585 60,000
Squibb
Eli Lilly and
13 USA 15,691 3,129 2,663 50,060
Company
14 Amgen USA 14,268 3,366 2,950 48,000
Boehringer
15 Germany 13,284 1,977 2,163 43,000
Ingelheim
Schering-
16 USA 10,594 2,188 1,057 41,500
Plough
Baxter
17 USA 10,378 614 1,397 38,428
International
Takeda
18 Pharmaceutic Japan 10,284 1,620 2,870 15,000
al Co.
19 Genentech USA 9,284 1,773 2,113 33,500
Procter &
20 USA 8,964 n/a 10,340 29,258
Gamble

Source: Top 50 Pharmaceutical Companies Charts & Lists, Med Ad News, September 2007
 42

Market leaders in terms of sales

The top 15 pharmaceutical companies by 2008 sales are:

Rank Company Sales ($M) Based/Headquartered in

1 Pfizer 43,363 US
2 GlaxoSmithKline 36,506 UK
3 Novartis 36,506 Switzerland
4 Sanofi-Aventis 35,642 France
5 AstraZeneca 32,516 UK/Sweden
6 Hoffmann–La Roche 30,336 Switzerland
7 Johnson & Johnson 29,425 US
8 Merck & Co. 26,191 US
9 Abbott 19,466 US
10 Eli Lilly and Company 19,140 US
11 Amgen 15,794 US
12 Wyeth 15,682 US
13 Teva 15,274 Israel
14 Bayer 15,660 Germany
15 Takeda 13,819 Japan

Developing world

The role of pharmaceutical companies in the developing world is a matter of some debate, ranging
from those highlighting the aid provided to the developing world, to those critical of the use of the
poorest in human clinical trials, often without adequate protections, particularly in states lacking a
strong rule of law. Other criticisms include an alleged reluctance of the industry to invest in
treatments of diseases in less economically advanced countries, such as malaria; Criticism for the
price of patented AIDS medication, which could limit therapeutic options for patients in the Third
World, where the most people have AIDS.

In September 2008 the Open Source Drug Discovery Network was launched in India to combat
infectious diseases common to developing countries.

COMPANY PROFILE
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Neuland Laboratories was conceived in the year 1983 by Dr. D. R. Rao a technocrat entrepreneur. Dr. Rao
has a Ph.D. in organic chemistry from university of Notre Dame, and postdoctoral fellow ship from university of
Vermont, United Sates. At the time of launching of the company Dr. Rao was having more than 10 years of
experience in pharmaceutical industry. He was worked with number one pharmaceutical company Glaxo in
various capacities and with unique group as director-R&D and quality assurance.

Dr. Rao has christened his company after “neuland”a well-known American professor, whose research led
to discovery of the first synthetic rubber.

Neuland Laboratories is the first bulk drug company to receive ISO 9002 certification in Andhra Pradesh.

MISSION

"To be a preferred source worldwide by developing bulk pharmaceutical products and services through cGMP
that consistently exceeds all our customer and regulatory expectations by using the latest technologies".
Corporate Responsibility
Neuland is proud to be a responsible corporate citizen. We have assumed a degree of responsibility for the cause
of society apart from enhancing shareholders value. Corporate social responsibility has been placed in a position
of crucial significance through a strong mutual relationship between our businesses and the society. This ethos
makes us revisit our facilities, standards, work practices and requirements from a wider perspective.

Our activities for the cause of society have emerged in response of both needs expressed by the community and
an assessment of situation by our management. The key thrust areas we work on are Education, Health, capacity
building and development of community & its assets.
Neuland’s contribution includes providing funds for creating infrastructure & facilities to nearby schools,
providing funds towards teacher’s salaries, enabling drinking water supply by constructing a water tank to cater
the drinking water needs of nearby village.

Values
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Neuland believes strongly in a set of values that have been the very cornerstone or the very reason
for Neuland’s success over the last two decades. These values would provide guidance to us while
interacting with each other as well as with the external world.

 Transparency and Open Communication, Collaboration

 Leadership at all levels,Quality Orientation
 Customer Delight,Process adherence
 Give respect and gain respect,Pursuit of excellence

BULK PHARMACEUTICAL CHEMICALS

Albuterol Sulphate USP

Anti-Asthmatic Albutirol USP

Salbutamol sulphate BP/IP

Ciproloxacin USP/IP
Fluoroquinolones
Ciplofloxacin lactate

Anti-ulcerant Ranitidine Hydrochloride USP/BP/IP

COMPANY STRENGTHS

1. Largest manufacturer of salbutamol sulphate in the world.

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2. USFDA approved facility for salbutamol sulphate.

3. First company from the state of Andhra pradesh in bulk pharmaceutical chemicals to receive ISO-9002
CERTIFICATION.

4. Certification of suitability of monographs of the European pharmacopoeia from the European department for
the quality of medicines, council of Europe, for Ranitidine Hydrochloride Form-I

5. Recognized export house by the government of India.

BOARD OF DIRECTORS
 42

CHAIRMAN AND MD Dr. D.R RAO

EXECUTIVE DIRECTOR AND CEO Mr.SUCHET RAO

Mr. HUMAYUN DHANRAJGIR

Mr.S.BUDHIRAJA

NON-EXECUTIVE DIRECTORS Mr.P.V.MAIYA

Mr.G.V.K.RAMA RAO

EXPORT –IMPORT REPRESENTATORMrs.DAYA CHANDRAHAAS

COMPOSITION OF WORK FORCE

The organization is headed by Managing director (MD).The organization is broadly divided into 9
departments / division that are headed by General Manager(GM) viz Research & development, Projects and
 42

Finance and Accounts. All these heads shall be assisted by Managers, Deputy Managers, Executive / Officers
and Assistants (copy of organization is enclosed in Annexure-I)

The organization’s total work force stands at 600. it includes Managerial, Non-Managerial and workers.
The composition of work force is as follows:

MANAERIAL NON-MANAGERIAL WORKERS

Managing Director 1 Executives 13 Drivers 11

General Manager 9 Officers 25 Workers 239

Manager 5 Chemists 60

Deputy Managers 11 Accountants 4

Senior Assistants 86

Stenos 10

Office Assistants / 126

Technical Assistants.
Total 26 324 250

Composition of Work Force

Managerial
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Pics of neulandlabs
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CHAPTER 3
(REVIEW OF LITERATURE)
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Models of job satisfaction

1. Affect Theory

Edwin A. Locke’s Range of Affect Theory (1976) is arguably the most famous job satisfaction
model. The main premise of this theory is that satisfaction is determined by a discrepancy between
what one wants in a job and what one has in a job. Further, the theory states that how much one
values a given facet of work (e.g. the degree of autonomy in a position) moderates how
satisfied/dissatisfied one becomes when expectations are/aren’t met. When a person values a
particular facet of a job, his satisfaction is more greatly impacted both positively (when expectations
are met) and negatively (when expectations are not met), compared to one who doesn’t value that
facet. To illustrate, if Employee A values autonomy in the workplace and Employee B is indifferent
about autonomy, then Employee A would be more satisfied in a position that offers a high degree of
autonomy and less satisfied in a position with little or no autonomy compared to Employee B. This
theory also states that too much of a particular facet will produce stronger feelings of dissatisfaction
the more a worker values that facet.

2. Dispositional Theory
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Another well-known job satisfaction theory is the Dispositional Theory. It is a very general theory
that suggests that people have innate dispositions that cause them to have tendencies toward a certain
level of satisfaction, regardless of one’s job. This approach became a notable explanation of job
satisfaction in light of evidence that job satisfaction tends to be stable over time and across careers
and jobs. Research also indicates that identical twins have similar levels of job satisfaction.

A significant model that narrowed the scope of the Dispositional Theory was the Core Self-
evaluations Model, proposed by Timothy A. Judge in 1998. Judge argued that there are four Core
Self-evaluations that determine one’s disposition towards job satisfaction: self-esteem, general self-
efficacy, locus of control, and neuroticism. This model states that higher levels of self-esteem (the
value one places on his/her self) and general self-efficacy (the belief in one’s own competence) lead
to higher work satisfaction. Having an internal locus of control (believing one has control over
her\his own life, as opposed to outside forces having control) leads to higher job satisfaction. Finally,
lower levels of neuroticism lead to higher job satisfaction .

3. Two-Factor Theory (Motivator-Hygiene Theory):

Frederick Herzberg’s two factor theory (also known as Motivator Hygiene Theory) attempts to
explain satisfaction and motivation in the workplace. This theory states that satisfaction and
dissatisfaction are driven by different factors – motivation and hygiene factors, respectively. An
employee’s motivation to work is continually related to job satisfaction of a subordinate. Motivation
can be seen as an inner force that drives individuals to attain personal and organization goals
(Hoskinson, Porter, & Wrench, p.133). Motivating factors are those aspects of the job that make
people want to perform, and provide people with satisfaction, for example achievement in work,
recognition, promotion opportunities. These motivating factors are considered to be intrinsic to the
job, or the work carried out. Hygiene factors include aspects of the working environment such as
pay, company policies, supervisory practices, and other working conditions.

While Hertzberg's model has stimulated much research, researchers have been unable to reliably
empirically prove the model, with Hackman & Oldham suggesting that Hertzberg's original
formulation of the model may have been a methodological artifact. Furthermore, the theory does not
consider individual differences, conversely predicting all employees will react in an identical manner
 42

to changes in motivating/hygiene factors Finally, the model has been criticised in that it does not
specify how motivating/hygiene factors are to be measured.

4. Job Characteristics Model:

Hackman & Oldham proposed the Job Characteristics Model, which is widely used as a framework
to study how particular job characteristics impact on job outcomes, including job satisfaction. The
model states that there are five core job characteristics (skill variety, task identity, task significance,
autonomy, and feedback) which impact three critical psychological states (experienced
meaningfulness, experienced responsibility for outcomes, and knowledge of the actual results), in
turn influencing work outcomes (job satisfaction, absenteeism, work motivation, etc.).The five core
job characteristics can be combined to form a motivating potential score (MPS) for a job, which can
be used as an index of how likely a job is to affect an employee's attitudes and behaviors----. A meta-
analysis of studies that assess the framework of the model provides some support for the validity of
the JCM.

Measuring job satisfaction

There are many methods for measuring job satisfaction. By far, the most common method for
collecting data regarding job satisfaction is the Likert scale (named after Rensis Likert). Other less
common methods of for gauging job satisfaction include: Yes/No questions, True/False questions,
point systems, checklists, and forced choice answers. This data is typically collected using an
Enterprise Feedback Management (EFM) system.

The Job Descriptive Index (JDI), created by Smith, Kendall, & Hulin (1969), is a specific
questionnaire of job satisfaction that has been widely used. It measures one’s satisfaction in five
facets: pay, promotions and promotion opportunities, coworkers, supervision, and the work itself.
The scale is simple, participants answer either yes, no, or can’t decide (indicated by ‘?’) in response
to whether given statements accurately describe one’s job.

The Job in General Index is an overall measurement of job satisfaction. It is an improvement to the
Job Descriptive Index because the JDI focuses too much on individual facets and not enough on
work satisfaction in general.
 42

Other job satisfaction questionnaires include: the Minnesota Satisfaction Questionnaire (MSQ), the
Job Satisfaction Survey (JSS), and the Faces Scale. The MSQ measures job satisfaction in 20 facets
and has a long form with 100 questions (five items from each facet) and a short form with 20
questions (one item from each facet). The JSS is a 36 item questionnaire that measures nine facets of
job satisfaction. Finally, the Faces Scale of job satisfaction, one of the first scales used widely,
measured overall job satisfaction with just one item which participants respond to by choosing a
face.

Job Satisfaction - Theories

One way to define satisfaction may be to say that it is the end state of feeling. The word 'end'
emphasises the fact that the feeling is experienced after a task is accomplished or an activity has
taken place whether it is highly individualistic effort of writing a book or a collective endeavour of
constructing a building. These activities may be minute or large. But in all cases, they satisfy a
certain need. The feeling could be positive or negative depending upon whether need is satisfied or
not & could be a function of the effort of the individual on one hand & on the other the situational
opportunities available to him.

This can be better understood by taking example of a foreman in an engineering industry. He has
been assigned the task to complete a special order by a certain, deadline. Person may experience
positive job satisfaction because he has been chosen to complete the task. It gives him a special
status & feeling that he has been trusted and given a special task, he likes such kind of rush job and it
may get him extra wages. The same could be the sources of his dissatisfaction if he does not like rush
 42

work, has no need for extra wages. Each one of these variables lead to an end state of feeling, called
satisfaction.

Sinha (1974) defines job satisfaction an 'a reintegration of affect produced by individual's perception
of fulfillment of his needs in relation to his work & the situations surrounding it'.

Theories of Job - Satisfaction:

There are 3 major theories of job satisfaction.

(i) Herzberg's Motivation - Hygiene theory.

(ii) Maslow's Theory of Motivation - Hierarchy of Needs

(iii) Social reference - group theory.

1) Herzberg's Motivation - Hygiene Theory :

This theory was proposed by Herzberg & his assistants in 1969. On the basis of his study of 200
engineers and accountants of the Pittsburgh area in the USA, he established that there are two
separate sets of conditions (and not one) which are responsible for the motivation & dissatisfaction
of workers. When one set of conditions (called 'motivator') is present in the organisation, workers
feel motivated but its absence does not dissatisfy them. Similarly, when another set of conditions
(called hygiene factors) is absent in the organisation, the workers feel dissatisfied but its presence
does not motivate them. The two sets are unidirectional, that is, their effect can be seen in one
direction only.

According to Herzberg following factors acts as motivators:

• Achievement,
 42

• Recognition,

• Advancement,

• Work itself,

• Possibility of growth, &

• Responsibility.

Hygiene factors are:

 Company policy & administration,

• Technical supervision,
• Inter-personal relations with supervisors, peers & Subordinates,
• Salary
• Job security
• Personal life
• Woeking conditions
• status

The following table presents the top six factors causing dissatisfaction and the top six
factors causing satisfaction, listed in the order of higher to lower importance

Leading to satisfaction Leading to dissatisfaction

• Achievement • Company policy

• Recognition • Supervision Herzberg used
• Work itself • Relationship with
• Responsibility boss semi-structured
• Advancement • Work conditions interviews (the
• Salary
• Growth • Relationship with method is called
peers critical incident
method). In this
 42

technique subjects were asked to describe those events on the job which had made them extremely
satisfied or dissatisfied. Herzberg found that events which led people to extreme satisfaction were
generally characterised by 'motivators' & those which led people to extreme dissatisfaction were
generally characterized by a totally different set of factors which were called 'hygiene factors'.

Hygiene factors are those factors which remove pain from the environment. Hence, they are also
known as job - environment or job - context factors. Motivators are factors which result in
psychological growth. They are mostly job - centered. Hence they are also known as job - content
factors.

The theory postulated that motivators and hygiene factors are independent & absence of one does not
mean presence of the other. In pleasant situations motivators appear more frequently than hygiene
factors while their predominance is reversed in unpleasant situations.

Maslow's Theory of Motivation - Hierarchy of Needs:

Physiological Needs

Physiological needs are those required to sustain life, such as:

• Air
• Water
• Food
• Sleep

According to this theory, if these fundamental needs are not satisfied then one will surely be
motivated to satisfy them. Higher needs such as social needs and esteem are not recognized until one
satisfies the needs basic to existence.

a) Need for personal achievement:

 42

Desires for personal career development, improvement in one's own life standards, better education
& prospects for children & desire for improving one's own work performance.

Safety Needs

Once physiological needs are met, one's attention turns to safety and security in order to be free from
the threat of physical and emotional harm. Such needs might be fulfilled by:

• Living in a safe area

• Medical insurance
• Job security
• Financial reserves

According to the Maslow hierarchy, if a person feels threatened, needs further up the pyramid will
not receive attention until that need has been resolved.

Social Needs

Once a person has met the lower level physiological and safety needs, higher level motivators
awaken. The first level of higher level needs are social needs. Social needs are those related to
interaction with others and may include:

• Friendship
• Belonging to a group

Giving and receiving love.

b) Need for social achievement :

A drive for some kind of collective success is relation to some standards of excellence. It is indexed
in terms of desires to increase overall productivity, increased national prosperity, better life
community & safety for everyone.
 42

Esteem Needs

After a person feels that they "belong", the urge to attain a degree of importance emerges. Esteem
needs can be categorized as external motivators and internal motivators.

Internally motivating esteem needs are those such as self-esteem, accomplishment, and self respect.
External esteem needs are those such as reputation and recognition.

Some examples of esteem needs are:

• Recognition (external motivator)

• Attention (external motivator)
• Social Status (external motivator)
• Accomplishment (internal motivator)
• Self-respect (internal motivator)

Maslow later improved his model to add a layer in between self-actualization and esteem needs: the
need for aesthetics and knowledge.

Self-Actualization

Self-actualization is the summit of Maslow's motivation theory. It is about the quest of reaching one's
full potential as a person. Unlike lower level needs, this need is never fully satisfied; as one grows
psychologically there are always new opportunities to continue to grow.

Self-actualized people tend to have motivators such as:

• Truth
• Justice
• Wisdom
• Meaning

Self-actualized persons have frequent occurrences of peak experiences, which are energized
moments of profound happiness and harmony. According to Maslow, only a small percentage of the
population reaches the level of self-actualization.
 42

2) Social References - Group Theory :

It takes into account the point of view & opinions of the group to whom the individual looks for the
guidance. Such groups are defined as the 'reference-group' for the individual in that they define the
way in which he should look at the world and evaluate various phenomena in the environment
(including himself). It would be predicted, according to this theory that if a job meets the interest,
desires and requirements of a person's reference group, he will like it & if it does not, he will not like
it.

A good example of this theory has been given by C.L. Hulin. He measures the effects of community
characteristics on job satisfaction of female clerical workers employed in 300 different catalogue
order offices. He found that with job conditions held constant job satisfaction was less among
persons living in a well-to-do neighborhood than among those whose neighborhood was poor. Hulin,
thus provides strong evidence that such frames of reference for evaluation may be provided by one's
social groups and general social environment.
 42

To sum up, we can say, Job satisfaction is a function of or is positively related to the degree to which
the characteristics of the job meet with approved & the desires of the group to which the individual
looks for guidance in evaluating the world & defining social reality.

Relationship among motivation, attitude and job satisfaction :

Motivation implies the willingness to work or produce. A person may be talented and equipped with
all kinds of abilities & skills but may have no will to work. Satisfaction, on the other hand, implies a
positive emotional state which may be totally unrelated to productivity. Similarly in the literature the
terms job attitude and job satisfaction are used interchangeably. However a closer analysis may
reveal that perhaps, they measure two different anchor points. Attitudes are predispositions that make
the individual behave in a characteristic way across the situations.

They are precursors to behaviour & determine its intensity and direction. Job satisfaction, on the
other hand is an end state of feeling which may influence subsequent behaviour. In this respect, job
attitude and job satisfaction may have something in common. But if we freeze behaviour, attitude
would initiate it which job satisfaction would result from it.

Relationship Between Morale & Job Satisfaction :

According to Seashore (1959), morale is a condition which exists in a context where people are :

a) motivated towards high productivity.

b) want to remain with organization.

c) act effectively in crisis.

d) accept necessary changes without resentment or resistance.

e) actually promote the interest of the organization and

f) are satisfied with their job.

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According to this description of morale, job satisfaction is an important

dimension of morale itself.

Morale is a general attitude of the worker and relates to group while job satisfaction is an individual
feeling which could be caused by a variety of factors including group. This point has been
summarized by Sinha (1974) when he suggests that industrial morale is a collective phenomenon and
job satisfaction is a distributed one. In other words, job satisfaction refers to a general attitude
towards work by an individual works. On the other hand, morale is group phenomenon which
emerges as a result of adherence to group goals and confidence in the desirability of these goals.

Relationship Between job satisfaction and work behaviour :

Generally, the level of job satisfaction seems to have some relation with various aspects of work
behaviour 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 these relationships are correlative or casual. In other words, whether work
behaviour make him more positively inclined to his job and there would be a lesser probability of
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.

Job satisfaction and productivity :

Experiments have shown that there is very little positive relationship between the job satisfaction &
job performance of an individual. This is because the two are caused by quite different factors. Job
satisfaction is closely affected by the amount of rewards that an individual derives from his job,
while his level of performance is closely affected by the basis for attainment of rewards. An
individual is satisfied with his job to the extent that his job provides him with what he desires, and he
performs effectively in his job to the extent that effective performance leads to the attainment of
what he desires. This means that instead of maximizing satisfaction generally an organisation should
be more concerned about maximizing the positive relationship between performance and reward. It
should be ensured that the poor performers do not get more rewards than the good performers. Thus,
when a better performer gets more rewards he will naturally feel more satisfied.

Job Satisfaction and absenteeism :

 42

One can find a consistent negative relationship between satisfaction and absenteeism, but the
correlation is moderate-usually less than 0.40. While it certainly makes sense that dissatisfied Sales
Persons are more likely to miss work, other factors have an impact on the relationship and reduce the
correlation coefficient. e.g. Organizations that provide liberal sick leave benefits are encouraging all
their Sales Persons, including those who are highly satisfied, to take days off. So, outside factors can
act to reduce the correlation.

Job Satisfaction and Turnover :

Satisfaction is also negatively related to turnover, but the correlation is stronger than what we found
for absenteeism. Yet, again, other factors such as labour market conditions, expectations about
alternative job opportunities, and length of tenure with the organization are important constraints on
the actual decision to leave one's current job.

Evidence indicates that an important moderator of the satisfaction-turnover relationship is the Sales
Person's level of performance. Specifically, level of satisfaction is less important in predicting
turnover for superior performers because the organization typically makes considerable efforts to
keep these people. Just the opposite tends to apply to poor performers. Few attempts are made by the
organization to retain them. So one could expect, therefore, that job satisfaction is more important in
influencing poor performers to stay than superior performers.

Job Satisfaction and Adjustment :

It the Sales Person is facing problems in general adjustment, it is likely to affect his work life.
Although it is difficult to define adjustment, most psychologists and organisational behaviourists
have been able to narrow it down to what they call neuroticism and anxiety.

Generally deviation from socially expected behaviour has come to be identified as neurotic
behaviour. Though it may be easy to identify symptoms of neuroticism, it is very difficult to know
what causes. Family tensions, job tensions, social isolation, emotional stress, fear, anxiety or any
such sources could be a source of neuroticism.

Anxiety, on the other hand, has a little more clearer base. It is generally seen as a mental state of
vague fear and apprehension which influences the mode of thinking. Anxiety usually shows itself in
such mental state as depression, impulsiveness, excessive worry and nervousness. While everyone
 42

aspires for a perfect state of peace and tranquility, the fact is that some anxiety is almost necessary
for an individual to be effective because it provides the necessary push for efforts to achieve
excellence.

Adjustment problems usually show themselves in the level of job satisfaction. For long, both
theorists and practitioners have been concerned with Sales Persons' adjustment and have provided
vocational guidance and training to them to minimise it's impact on work behaviour. Most literature,
in this area, generally suggests a positive relationship between adjustment and job satisfaction.
People with lower level of anxiety and low neuroticism have been found to be more satisfied with
their jobs.

Determinants of Job Satisfaction :

According to Abrahan A. Korman, there are two types of variables which determine the job
satisfaction of an individual. These are:

1) Organisational variables ;
2) Personal Variables.

Organisational Variable :

1) Occupational Level :

The higher the level of the job, the greater is the satisfaction of the individual. This is because higher
level jobs carry greater prestige and self control.

2) Job Content :

Greater the variation in job content and the less repetitiveness with which the tasks must be
performed, the greater is the satisfaction of the individual involved.

3) Considerate Leadership :
 42

People like to be treated with consideration. Hence considerate leadership results in higher job
satisfaction than inconsiderate leadership.

4) Pay and Promotional Opportunities :

All other things being equal these two variables are positively related to job satisfaction.

5) Interaction in the work group :

Here the question is : When is interaction in the work group a source of job satisfaction and when it
is not ? Interaction is most satisfying when -

(a) It results in the cognition that other person's attitudes are similar to one's own. Since this permits
the ready calculability of the others behaviour and constitutes a validation of one's self ;

(b) It results in being accepted by others ; and

(c) It facilitates the achievements of goals.

Personal Variables:

For some people, it appears most jobs will be dissatisfying irrespective of the organisational
condition involved, whereas for others, most jobs will be satisfying. Personal variables like age,
educational level, sex, etc. are responsible for this difference.

(1) Age:

Most of the evidence on the relation between age and job satisfaction, holding such factors as
occupational level constant, seems to indicate that there is generally a positive relationship between
the two variales up to the pre-retirement years and then there is a sharp decrease in satisfaction. An
individual aspires for better and more prestigious jobs in later years of his life. Finding his channels
for advancement blocked, his satisfaction declines.
 42

(2) Educational Level:

With occupational level held constant there is a negative relationship between the educational level
and job satisfaction. The higher the education, the higher the reference group which the individual
looks to for guidance to evaluate his job rewards.

(3) Role Perception:

Different individuals hold different perceptions about their role, i.e. the kind of activities and
behaviors they should engage in to perform there job successfully. Job satisfaction is determined by
this factor also. The more accurate the role perception of an individual, the greater his satisfaction.

(4) Sex:

There is as yet no consistent evidence as to whether women are more satisfied with their jobs than
men, holding such factors as job and occupational level constant. One might predict this to be the
case, considering the generally low occupational aspiration of women.

Some other determines of job satisfaction are as follows:

(i) General Working Conditions.

(ii) Grievance handling procedure.

(iii) Fair evaluation of work done.

(iv) Job security.

(v) Company prestige.

(vi) Working hours etc.

 42

CHAPTER 4.
(DATA ANALYSIS AND INTERPRETATION)
 42

Analysis of Data:

The data are collected through survey and books, reports, newspapers and internet etc., the survey
conducted among the employees of Newlands pharmaceutical laborotaries,Pvt 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.
 42

1) Do you feel that your job suits your educational qualification?

Total No of respondents Responses

Yes No
20 20 14 6
Percentage 100% 70% 30%
 42

INTERPRETATION

There was 100% response from the employees. Out of which 70% of the employees have supported
the statement i.e, they have opted the option “Yes”. And remaining 30% of the employees had been
opposing the statement i.e., they had opted the option “No”.

This analysis clearly conveys that majority of the employees are working according to their qualification. And
some of the employees are not appointed according to their qualification.

2) What is your level of satisfaction regarding superior – subordinate and colleague relationship?

Total No of respondents Responses

Highly satisfied Satisfied Dissatisfied
20 20 8 12 0
Percentage 100% 40% 60% 0%
 42

INTERPRETATION

According to the response from the employees to whom the questionnaire were distributed, almost
every employee is having an healthy relationship with his superior,subordinate and colleague.
According to the tabular form, 40% of the employees agreed that they are highly satisfied with the
relationship and 60% of the employees are satisfied with the relationship in the organization. And
none of the employees supported the third option.

This is a good sign for the organization to enhance its future performance.

3) Are you satisfied with your pay package?

 42

Total No of respondents Responses

Yes No
20 20 15 5
Percentage 100% 75% 25%

INTERPRETATION

Of all the respondents 75% of the employees have agreed that they are satisfied with the pay
package. And 25% of the employees had not satisfied with the pay package. Ofcourse, the
satisfaction level differs from employee to employee but the dissatisfaction may effect the work and
the productivity. So the measures must be taken to avoid the dissatisfaction.
 42

4) What is your level of satisfaction regarding the work environment?

Total No of respondents Responses

Highly satisfied Satisfied Dissatisfied
20 20 0 19 1
Percentage 100% 0% 95% 5%

INTERPRETATION

Regarding the work environment, none of the employee is highly satisfied. But 95% of the
employees have been satisfied with the present working conditions. And 5% of the employees have
not been satisfied. We all know the importance of the working conditions and slight changes may be
done to make the unsatisfied as satisfied employees.
 42

Total No of respondents Responses

Yes No
20 20 20 0
Percentage 100% 100% 0%
5) Does the company provide you flexible working hours?

INTERPRETATION

There was 100% response from the employees out of which 100% of the employees has supported
the statement i.e. they agreed that the company is providing the flexible working hours. Providing the
 42

flexible working hours may reduce the stress to an extent and this is one of the good features of the
organization.

6) Are the benefits that your company is extending to you is sufficient

Total No of respondents Responses

Fully Sufficient Sufficient Insufficient
20 20 3 15 2
Percentage 100% 15% 75% 10%

INTERPRETATION

The response is towards the benefits provided by the company to the employees. Out of the
respondents, 15% of the employees agreed that the benefits provided are fully sufficient and 75% of
the employees agreed that the benefits provided are sufficient. And 10% of the employees felt that
benefits provided are insufficient.
 42

According to the analysis, the majority of the employees are satisfied with the benefits given by the
company.

7) Is there any opportunity for you to use new technology?

 42

INTERPRETATION

Total
Total No
No of
of respondents
respondents Responses
Responses
Yes
Yes No
No
20
20 20
20 15
17 53
Percentage
Percentage 100%
100% 75%
85% 25%
15%
The opportunity to use new technology may enhance the skills of the employees. In this regard, 75%
of the employees had agreed that the company provides the opportunity to use the new technology.
And 25% denies it.

As the majority agreed it, this is fare on the part of the company.

8) Do you feel that the employees are recognized?

 42

INTERPRETATION

The opportunity to use new technology may enhance the skills of the employees. In this regard, 75%
of the employees had agreed that the company provides the opportunity to use the new technology.
And 25% denies it.

As the majority agreed it, this is fare on the part of the company.

9) How do you evaluate the overall satisfaction with your job?

Total No of respondents Responses

Highly satisfied Satisfied Dissatisfied
20 20 0 20 0
Percentage 100% 0% 100% 0%
 42

INTERPRETATION

The overall job satisfaction is hot topic. Out of the respondents the preponderance agreed that they
have the job satisfaction in this company. And none of the employees had opposed it. All the
employees have the job satisfaction. The whole credit goes to the company and its strategies.

10) Any further suggestions that you would like to put forward?
 42

Total No of respondents Responses

Given Not given
20 20 5 15
Percentage 100% 25% 75%

INTERPRETATION

25% of the respondents had given some suggestions to enhance the situation and 75% of the
employees had not given the suggestions.

The majority of the employees were satisfied with the company and their performance and that is the
reason why they did not suggest any thing.
 42

CHAPTER 5
(CONCLUSIONS AND SUGGESTIONS)
 42

CONCLUSIONS:

 The employees are working according to their qualifications.

 There is a healthy environment in the company.

 The majority of the employees are satisfied with pay package.

 The working conditions are favourable to the employees.

 The working hours are flexible.

 All the employees are satisfies with the benefits.

 New technology is implemented by the company.

 Employees are recognized.

 Overall evaluation says that employees are satisfied.

 Some employees have given suggestions.

 42

SUGGESTIONS:

 The company must provide thefacilities such that the employees can persue

their higher education

 Employees must be motivated such that they do not undergo grievances.
 If small changes are done, the unsatisfied can be made a satisfied employee
regarding their pay package.
 The employees must be permitted to use the new technologies as a development
program.
 As a part of retention strategies, employees must be recognized and given responsibilities
accordingly.

• Employee suggestions:

 Ownership of the work.

 Upto dated technology for marketing persons.
 Aggressiveness in marketing
 Balance score card.
 Monthly inter departmental meeting is needed for review purpose.
 42

APENDIX
(QUSTIONNAIRE AND BIBLIOGRAPHY)
 42

QUESTIONNAIRE ON JOB SATISFACTION

1) Do you feel that your job suits your educational qualification?

(a)YES (b) NO

2) What is your level of satisfaction regarding superior – subordinate

Relationship/colleague?

(a)HIGHLY SATISFIED (b) SATISFIED

(c) DISSATISFIED (d) HIGHLY DISSATISFIED

3) Are you satisfied with your pay package?

a) YES b) NO

4) What is your level of satisfaction regarding the work environment?

(a)HIGHLY SATISFIED (b) SATISFIED
(c) DISSATISFIED (d) HIGHLY DISSATISFIED

5) Does the company provide you flexible working hours?

(a)YES (b) NO

6) Are the benefits that your company is extending to you is sufficient?

(a) FULLY SUFFICIENT (b) SUFFICIENT
(c) INSUFFICIENT

7) Is there any opportunity for you to use new technology?

(a)YES (b) NO

8) Do you feel that the employees are recognized?

(a)YES (b) NO

9) How do you evaluate the overall satisfaction with your job?

(a)HIGHLY SATISFIED (b) SATISFIED
(c) DISSATISFIED (d) HIGHLY DISSATISFIED

10) Any further suggestions that you would like to put forward?

____________________________________________

____________________________________________
 42

BIBLIOGRAPHY:

1. Edwin B.Flippo, Personnel Management, McGraw Hill.

2. K.Ashwatappa, Human Resource Management, 9/e, Tata McGraw
Hill-2007.
3. CB Memoria and S.V.Gankar, Personnel Management: Text and
Cases, Himalaya Publishers-Bombay-2007.
4. Sinha:Industrial Relations, Trade Unions and Labor Legislations-
Pearson 2007

Websites
http://payroll.naukrihub.com/compensation/

http://www.hrmguide.co.uk/performance_and_compensation/
reward_management.htm

http://www.bola.biz/rewards/rewards.html