RESEARCH PROJECT REPORT

Submitted in partial fulfillment of Master of Business Administration

Session- 2012-2013

EMPLOYEE JOB SATISFACTION IN RETAIL

INDUSTRY

Submitted To:
[Guide Name]
[Designation]

Submitted By:
[Neeru Singh]
[1116470026]

PRANVEER SINGH INSTITUTE OF

TECHNOLOGY
Affiliated to GBTU

DECLARATION

I hereby declare that this submission is my own work. It contains no material previously
published or written by another person, nor has this material to a substantial extent been accepted
for the award of any other degree or diploma of the university or other institute of higher
learning.

[Neeru Singh]
[1116470026]

ACKNOWLEDGMENT
Research Project Report is the one of the important part of MBA program, which has
helped me to gain a lot of experience, which will be beneficial in my succeeding career.
For this with an ineffable sense of gratitude I take this opportunity to express my deep
sense of indebtedness and gratitude to Dr. A. K. Saxena and Dr. S. L. Shukla, Director PSIT
and Director Academics PSIT respectively along with Dr. Atul Kumar Agarwal, Professor and
Head of Business Administration Department, for their encouragement, support and guidance
in carrying out the project.
I am very much thankful to, my Project Guide [Guide Name], [Designation] for their
interest, constructive criticism, persistent encouragement and untiring Guidance throughout the
development of the project. It has been my great privilege to work under his/her inspiring
guidance.
I am also thankful to my Parents and my friends for their indelible Co-operation for
achieving the Goal of this study.

PREFACE
Management is essentially flair of approaching and tackling with a high degree of sensitivity,
sophistication and style.
To work, learn and to feel the pulse of corporate world and its interface with the environmental setting,
Management students are required to undertake practical training in the corporate sector. The training
gives students an opportunity to apply their conceptual and practical skills in the 'Real Life' business
situations.
I deem it as a privilege to do this report about the job satisfaction of employees of retail industry.
In the following project an attempt has been made to describe the context of the study and observation of
the process along with the recommendations for consideration.
Organizations are increasingly recognizing the necessity and advantage of job satisfaction of
employees .The survey was conducted in retail organizations. The sample size was 109. The data was
collected and analyzed to obtain interesting & revolutionary conclusion.
At this juncture the study tries to take a stock of existing personnel scenario and Job satisfaction, which
will quite productive for future prospects

TABLE OF CONTENTS
Chapter No.

Subject

Page No.

Ch.1.0
Ch.2.0

Executive summary
Introduction

6-7

Ch. 3.0

Literature Review
Industry Profile
Review of literature on the industry
Major Companies

8-9

Ch. 4.0

Research Methodology
Primary Objective
Research Design
Sample Design.
Data Collection
Scope of the Study

10-50

Ch. 5.0

Data analysis and Findings

65

65
Ch. 6.0

Suggestion & Recommendations

66

Ch. 7.0

Conclusion
limitation
67

67

Ch.8.0

Bibliography

68

EXECUTIVE SUMMARY
The research aim is to find out the satisfaction or the dissatisfaction level of the employees in the organization
.This report not only focuses on these areas but also on the factors responsible for increase or decrease in the
satisfaction or dissatisfaction among employees. The employees are the backbone of any organization and
hence the employees are the major success factor. Thus it can be truly said that satisfaction and motivation of
employees is must for any organization to flourish.

Job satisfaction is the attitude of an individual towards his work.

Employees attitude forms an important part as it affects the performance of the employee. The favorable
attitude will improve the job performance hence increasing the productivity of the organization while an
unfavorable attitude will decrease the productivity. The research is diagnostic in nature. Data is collected by
deploying the questionnaire to employees of the organization.

The analysis is done through statistical data and graphs after doing the analysis and interpretation, it was
found that there are certain factors responsible for the employee satisfaction. These factors include good
working environment, job security, statutory and non statutory facilities, salary and fringe benefits.

There could be various other factors responsible for job satisfaction like the achievements, work
advancements, responsibility and psychological growth, cooperation among employees and their superiors,
recognition, job rotation, better salary, structure and promotional opportunities.

The conclusion drawn from the research study was that the employees are satisfied in the concerned
organization but there are certain areas where it is still lagging and therefore it needs to work upon them or
emphasize on them which will prove beneficial for the employees as well as the organization.

CHAPTER ONE

INTRODUCTION

JOB SATISFACTION
The term "Job satisfaction" was brought to limelight by Hoppock. He reviewed 32 studies on job
satisfaction of psychological, physiological and environmental circumstance that cause a person to
truthfully say "I am satisfied with my job."1 This definition points to the factors affecting job satisfaction
but does not indicate the nature of job satisfaction.
CONCEPT OF JOB SATISFACTION
Job satisfaction is the end feeling of a person performing a task. To the extent that a person's job fulfills
his dominant needs and in consistent with his expectations and values, the job will be satisfying. The
feeling would be positive or negative depending upon whether need is satisfied or not.
Job satisfaction is different from motivation and morale. Motivation refers to the willingness to work.
Satisfaction, on the other hand, implies a positive emotional state. Morale implies a general attitude
towards is an individual feeling. Job satisfaction maybe considered a dimension of morale and morale
could also be a source of satisfaction. Attitudes are predis-positions that make the individual behave in a
particular way Job satisfaction, on the contrary is the end feeling which may influence subsequent
behaviour. Thus job satisfaction is an employee's general attitude towards his job.
The sense of fulfillment and pride felt by the people who enjoy their work and do it well. Various factors
affect job satisfaction and our understanding of the significance of these systems in the part from Fredrick
Herzberg. He called elements such as remuneration, working relationships and status, and job security
hygiene factors because they concern the context in which somebody works. An absence of job
satisfaction can lead to poor motivation stress, absenteeism, and high labour turnover.
To be a successful organization an organization must continually ensure the satisfaction of its employees.
Job satisfaction may be defined as an individuals reaction to the job experience. Many theorists have
tried to come up with an explanation for why people feel the way they do as far as their job is concerned

THEORIES OF JOB SATISFACTION

The main theoretical approaches to job satisfaction are as follows:

1.

Need fulfillment theory.

2.

Equity theory.

3.

Two factor theory

4.

Discrepancy theory

5.

Equity discrepancy theory

1.

Need Fulfillment Theory

According to this theory a person is satisfied when he gets from his job what he wants. The more
want something or the more important it is to him, the more satisfied he is when he received it. In
other words, "job satisfaction will very directly with the extent to which those needs of an
individual which can be satisfied are actually satisfied. Vroom views satisfaction in terms of the
positively valued outcomes that a job provides to a person. Thus, job satisfaction is positively
related to the degree to which one's needs are fulfilled. The fulfillment theory suffers from a
major drawback. Satisfaction is a function of not only what a person receives but what he feels he
should receive. What may satisfy one individual may not satisfy the other due to difference in
their expectations. The strength of an individual's desire or his level of inspiration is an important
determinant of job satisfaction. Thus, job satisfaction in a function of the degree to which the
employee's needs are fulfilled in the job situation.

2.

Equity Theory
Under this theory, it is believed that a person's job satisfaction depends upon his perceived equity
as determined by his input-output balance in comparison with the input-output balance of others.
Every individual compares his rewards with those of a 'reference group'. If he feels his rewards
are equitable in comparison with others doing similar wok, he feels satisfied. Job satisfaction is
thus a function of the degree to which job characteristics meet the desires of the reference group.
For example, one study of the effects of community features on job satisfaction revealed that
workers living in a well to do neighborhood felt less satisfied than those living in poor
neighborhood.

Perceived

Perceived A

Personal

Outcomes Actually

Inputs

Received

A=B
Satisfaction A
<B
Dissatisfaction
A>B Guilt
Discomfort

Perceived

Perceived

Perceived B Personal

Inputs of

Outcomes of

Outcomes that should

comparison

Comparison

be Received

Others

Other

Equity theory takes into account not only the needs of an individual but also the opinion of the
reference group to which the individual looks for guidance.

3. Two Factor Theory

Frederick Herzberg and his colleagues developed the two factor theory. According to this theory
satisfaction and dissatisfaction are interdependent of each other and exist on a separate
continuum. One set factors known as Hygiene factors (Company ploicy, administration,
supervision, pay working conditions and interpersonal relation) act as dissatisfiers. Their absence
causes dissatisfaction but their presence does not result in positive satisfaction. The other set of
factors known as satisfiers (achievement, advancement, recognition, work itself and
responsibility) lead to satisfaction.
Several studies designed to test the two factor theory provide little support to this theory. The
same factor may serve as a satisfier for one but a dissatisfies for another. It appears from the
theory that a person can be satisfied and dissatisfied at the same time.

4. Discrepancy Theory

According to this theory job satisfaction depends upon what a person actually receives from his
job and what he expects to receive. When the rewards actually received are less than the expected
rewards it causes dissatisfaction. In the words of Locke, "job satisfaction and dissatisfaction are
functions of percieved relationship between what one wants from one's job and what one
perceives it is actually offering. 1 In other words, satisfaction is the difference between what one
actually received and what he feels he should receive. 2 This theory fails to reveal whether oversatisfaction is or is not a dimension of dissatisfaction and if so, how does differ from
dissatisfaction arising out of situation when received outcomes are less than the outcomes one
feels he should receive.

5. Equity-discrepency Theory
This is a combination of equity and discrepancy theories. Lawler has adopted the difference
approach of discrepency theory rather than the ratio approach of equity theory. From equity the
concept of comparison has been selected to serve as an intervening variable. Under this theory
satisfaction is defined as the difference between the outcomes that one perceives he actually
received and outcomes that one feels he should receive in comparison with others. When the
individual feels that what he actually received is equal to what he perceives he should receive
there is satisfaction. Thus, an individual's reception of his reward is influenced by more than just
the objective amount of that factor. Because of this psychological influence the same amount of
reward often can be seen quite differently by two people, to one it one it can be larger amount,
while to another person it can be a small amount.
This model reveals that a person's perception of what he should receive is influenced by the inputs and
outputs of others. If his inputs are similar to those of referent groups but his outcomes are less he is likely
to be dissatisfied. Lawler suggests that those individuals are likely to be more satisfied who perceive:
(a)

Their inputs are low;

(b)

Their jobs are less demanding;

(c)

Their reference groups have less favourable input-output balance;

(e)

Their referent groups are receiving less outputs.

6. Social Reference Groups Theory

Reference group defines the ways and individual looks at the world. According to this theory job
satisfaction occurs when the job meets the interest, desires and requirements.

7. Opponent process theory

This theory was given by Landy; he suggested that the primary reaction (immediate
emotional response) combined with the secondary reaction (later emotional response)
creates a stabilized equilibrium, which results in job satisfaction.

8. Lawler theory
Lawler developed another theory of job satisfaction. He believed that a motivational framework drove job
satisfaction it states the difference between the exact amounts a person receives and that he expected.

SATISFACTION ASSESSMENT

The measurement of is the most important job of any organization .How should an employee measure job
satisfaction without making the employee feel uncomfortable? There may be various ways of determining
job satisfaction:

SURVEY
The employers measure job satisfaction based on surveys. This provides a feedback to the employers.
There are many factors needed to be resolved in order to provide a helpful survey? One of the biggest
problems is that how the employees interpret these surveys. The company must evaluate the

Questionnaires with certain confounding factors in mind the surveys need to either be focused on the
organization as a whole or just the components of the job itself.

SALARY
An employee takes home his pay check that reflects his monthly fixed salary. A person is
salaried at regular intervals for simply holding his job. For simplistic manufacturing jobs,
The method of paying by the piece is commonly used. There may be yet other ways of paying a salary.

REWARDS
Job satisfaction also includes rewards for doing a job and performing it well .If a person is rewarded for
high performance, and then the person may find the job more satisfying. Thus rewards are an important
object for the job satisfaction.

INCENTIVES
Of all the other factors incentives is most important because money is one of the few that we can quantify
and measure. Due to the social influence described by Bandura money can always have a powerful effect
on job satisfaction regardless of how important motivator money is to the person

BONUS
Bonus relates to the extra income provided to the employees on various occasion apart from their basic
salary. In the category of bonus there are three commonly used systems of pay they are

Profit sharing

This is the style in which the excess profit of the company is divided equally among the employees of the
organization as bonus.

ESOP
ESOP is the system which gives the employees a stock in the company as a reward.

Cafeteria style
In this style the bonus system lets employees select their reward for their hard work.

GROUP PAYMENT
In certain situations where the structure of the company is hierarchical, the employees are often paid as a
group .The first co- payment takes the profits made by the employee owned company and distributes the
profits equally.

FACTORS AFFECTING JOB SATISFACTION

There are a number of factors affecting the job satisfaction. These factors can be analyzed to see the level
of satisfaction related to the job in an employee. These factors are:
Implementation of innovative ideas

The type of work itself, to be done

The wages and salary structure

Providing for the fair compensation

Providing fringe benefits like bonus pension houses etc

 Interpersonal relations among the employees

Participation in decision making

Providing guidance to subordinates

Recognition and reward system for better work output

Being asked for suggestions by superiors

Timely feedback from the immediate boss

DETERMINANTS OF JOB SATISFACTION

All individuals do not derive the same degree of satisfaction though they perform the same task in the
same job environment and at the same time. Some of the factors influencing the job satisfaction are:

Individual Factor
An individual has certain expectations from the job; if these expectations are met from the job they
feel satisfied. These expectations are based on individuals level of education, age and other factors.
The individual that affect the job satisfaction relates to the own personal characteristics of the
individual; the factors include:

Level of education
The level of education of an individual is a factor which determines the degree of job satisfaction.
The possible reason for this phenomenon may be that the highly educated people have very high
degree of job expectation, which remain unsatisfied.

Age

An individual experiences different degrees of job satisfaction at different stages of his life. Job
satisfaction is high at the initial stage it gets gradually reduced, starts raising up at a certain age, and
finally dips to a low degree. It so happens because when an individual joins an organization he may
have some unrealistic assumptions about what he is going to derive from his work.. These
assumptions make him more satisfied however when these assumptions fall short of reality job
satisfaction goes down. It starts rising up again as the people start to assess the job in the right
perspective and correct their assumption. At the last, particularly at the far end of the Career, job
satisfaction goes down because of fear of retirement and future outcome.

Other factors
Other factors such as, if an individual does not have favorable social and family life, he may not feel
happy at the work place. Similarly other personal problems associated with him affect his level of job
satisfaction.

Nature of Job
The nature of job is another important factor that determines the level of job satisfaction. It
determines the form of occupation level and the job content. That means that what exactly the job is
like. It includes:

Occupation level
Higher level job provide more satisfaction as compared to lower level. This happens because high
level job carries prestige and status in the society which itself becomes source of satisfaction for the
jobholders.

Job content
It refers to the intrinsic value of the job, which depends on the requirement of skill for performing it,
and the degree of responsibility and the growth it offers. The higher the value of the factor, the higher

would be the satisfaction. For example a routine and a repetitive job provide a lesser job satisfaction;
the degree of satisfaction progressively increases with job rotation and job enlargement.

Situational Variable
Situational variables relate to the job satisfaction lie in the organizational context; formal and
informal organizations emerge out of the interactions of the individuals in an organization. Some of
the important factors affecting job satisfaction are:

Working condition
Working conditions particularly physical work environment like conditions of work place and
associated facilities for performing the job determine job satisfaction. These work in two ways:
First: provides means for job performance
Second: provisions of these conditions affect the individuals perception about the organization. If
these factors are favorable, individual experience higher level of job satisfaction.

Supervision
The type of supervision affect the job satisfaction as in each type of supervision, the degree of
importance attached to an individual varies. In employee oriented supervision, there is more concern
for people, which is perceived favorably by them and provides them more satisfaction. In job and
people become secondary. This decreases job satisfaction

Equitable rewards

The type of linkage that is provided between job satisfaction and reward determine the degree of job
satisfaction. If the reward is perceived to be based on job performance and equitable reward, it offers
higher satisfaction. If his reward is perceived to be based on considerations other than the job
performance, it affects job satisfaction adversely

Opportunity for promotion

It is true that individuals seek satisfaction in their jobs in the context of job nature and work
environment but they also attach importance to the opportunities for promotion that these jobs offer.
If the present job offers opportunity of promotion in future, it provides more satisfaction. If the
opportunities for such promotion are lacking, it reduces satisfaction.

Work group
Individuals work in groups either created formally or they develop on their own to Seek emotional
satisfaction at work place. To the extent, such groups are cohesive; the degree of satisfaction is high.
If the group is not cohesive, job satisfaction is low.

The statistically significant factors that affect Employee satisfaction

Bavendam Research identified six factors, which influence job satisfaction. When these
six factors were high, job satisfaction was high. When the six factors were low, job satisfaction was low.
These factors are similar to what we have found in all organizations.

Employee Satisfaction is
influenced by:

Opportuni
ty
Stress

Leadershi
p

Work
Standard
s
Fair
Rewards

Adequat
e
Authorit
1. Opportunity
Employees are more satisfied when they have challenging opportunities at work. This includes chances to
participate in interesting projects; jobs with a satisfying degree of challenge and opportunities for
increased responsibility. Important; this is not simply promotional opportunity. As organizations have
become flatter, promotions can be rare. People have found challenge through projects team leadership,
special assignments as well as promotions.

Actions:
Promote from within when possible.
Reward promising employees with roles on interesting projects.
Divide jobs into levels of increasing leadership and responsibility.

It may be possible to crate job titles that demonstrate increasing levels of expertise, which are not limiting
by a viability of positions they simply demonstrate achievement.

2. Stress
When negative stress is continuously high, job satisfaction is low. Jobs are more stressful if they interfere
with employees personal lives or are a continuing source of worry or concern.
Actions:
Promote a balance of work and personal lives. Make sure that senior managers model this
behavior.
Distribute work evenly (fairly) within work teams.
Review work procedures to remove unnecessary red tape or bureaucracy.
Manage the number of interruptions while trying to do their jobs.
Some organizations utilize exercise or fun breaks at work.

3. Leadership

Employees are more satisfied when their managers are good leaders. This includes motivating employees
to do a good job, striving for excellence or just taking action.

Actions:
Make sure your managers are well trained. Leadership combines attitudes and behavior. It can
be learned.
People respond to managers who inspire them to achieve meaningful goals and they can trust.

4. Work standards
Employees are more satisfied when their entire workgroup takes pried in the quality of its work.

Actions:
Encourage communication between employees and customers. Quality gains importance when
employees see impact on customers.
Develop meaningful measures of quality. Celebrate achievements in quality.

Trap:
Be cautions of slick packaged campaigns that are perceived as superficial and patronizing.

5. Fair Rewards
Employees are more satisfied, when they feel they are reward fairly for the work they do. Consider
employees responsibilities, the effort they have put forth, the work they have done well and the demands
of their jobs.

Actions:
Make sure rewards are for genuine contributions to the organization.

 Be consistent in your reward policies.

If your wages sure competitive, then make sure that employees know this.
Reward can include a variety of benefits and rewards other than money.
As an added benefit, employees who are reward fairly, experience less stress.

6. Adequate Authority
Employees are more satisfied when they have adequate freedom and authority to do their jobs.

Actions:
When reasonable:
Let employees make decisions.
Allow employees to have input on decisions that will affect them.
Establish work goals but let employees determine how they will achieve those goals. Later
reviews may identify innovative best practices.
Ask, If there were just one or two decisions that you could make, which ones would make the
biggest difference in your job?
Increasing job satisfaction is important for its humanitarian value and for its financial benefit (due to its
effect on employee behavior). As early as 1918, Edward Thorndike explored the relationship between
work and satisfaction in the Journal of Applied Psychology.
Bavendam Research has included measures of job satisfaction in all our employee surveys. Clear patterns
have emerged.

Employees with higher job satisfaction:

 Believe that the organization will be satisfying in the long run

Care about the quality of their work
Are more committed to the organization
Have higher retention rates, and are more productive.

One thing that makes humans unique is ability to focus energy. Whether to heat a home or to cut steel
with a laser, focusing energy where it has needed, produces significant results. As a manager, you need to
know what is important problem is more likely to produce measurable benefits to the organization.
The actual cases unique to your organization can only uncovered through a proper
analysis. Bavendam research Inc. has developed a survey process that identifies underlying cases of the
factors such as:

Retention/turnover

Productivity

Teamwork

Communication

Job satisfaction and much more.

IMPACT ON JOB SATISFACTION AND PRODUCTIVITY

The greater the job satisfaction, the greater would be the efforts made by the workers towards their
job, resulting in improved productivity. Hence, there exists positive correlation between job
satisfaction and productivity.

WHAT IS PRODUCTIVITY

Productivity is a concept related to production. It gives a clear picture about the output in comparison
with the input used for production of that output. It can be considered as a ratio of output to input.
The higher the numerical value of the ratio between the output to input, the relationship between the
output of goods and services and the input of resources used in the production of that output is more
positive.
Productivity can be understood by the following well known definition which is
Productivity

is the measure of how well an operation system functions.

FACTORS AFFECTING PRODUCTIVITY IN AN ORGANIZATION

The following efforts may improve the productivity in an organization:
Higher motivational efforts to the management.

Modernization of the plants and updating technology

Job enrichment , enlargement and improvement

A good human relation approach.

Organizational development programs and organizational renewal and changes.

Establishment of team spirit among the workers.

Settlement of grievance in quick and systematic manner

Cordial industrial relation and effective labor welfare programme

 Proper career planning and career growth opportunities.

HRD approach to companys people

SOURCES OF JOB SATISFACTION

WAGES
Money is the most important instrument in fulfilling ones needs and it also reflects managements concern
for the employees. There should for this purpose be an effective simple and fair pay system in line with
the expectation of the employees.

PROMOTION
Promotion opportunities affect the job satisfaction considerably. The desire for promotion is generally
strong in the employees and it involves change in the job content. The employees take it as an ultimately
achievement in their career and when they achieve it they feel extremely satisfied

NATURE OF WORK
Nature of job relates to the fact that the type of work which is offered to an individual should be
according to his competency in terms of skill and knowledge otherwise it may lead to frustration and
dissatisfaction.

SUPERVISION

There is appositive relationship between the quality of supervision and job satisfaction. There should be a
supportive personal relationship between the superiors and the subordinates for job satisfaction to be high.

WORK GROUP
The work group does serve as a source of satisfaction to all individual employees. It does so primarily by
providing members with opportunities for interaction with each other. It is well known that for many
employees work fills the need for social interaction. The work group is even a stronger source of
satisfaction when members have similar attitudes and values. Having people around with similar attitude
causes less friction on day to day basis.

WORKING ATMOSPHERE
Working atmosphere that is compatible with an employees physical comfort and facilitate god
performance contribute to job satisfaction. The assumption that working condition and satisfaction are
interrelated contradicts two factors.
Firstly working condition is a part of maintenance factor which when provided helps to remove
dissatisfaction. Secondly working condition constitutes a source of job satisfaction, but actually it is
relatively a minor source. All employees are not satisfied or dissatisfied by favorable or unfavorable work
environment.

OTHER FACTORS
There may be still other factors which may lead to job satisfaction in an employee like the non monetary
factors such as Recognition , Interpersonal relations , personal problems of an employee related to his
social life etc.

STRATEGIES TO IMPROVE JOB SATISFACTION

Depending on the underlying causes of job dissatisfaction, there may be several ways to improve job
satisfaction of an individual. They may be:

SET NEW CHALLENGES

If you are struck in a job because of lack of education or a downturn in the economy it doesnt mean that
your work has become drudgery. With a little imagination you can create new challenges and make the
best of the job you have. Here are some ideas that may help.

IMPROVE YOUR JOB SKILL

An individual should recognize the hidden potential within him and improve it besides that he should try
to work upon those areas in which he is lacking so as to improve his skills in doing a job attaining
excellence level.

DEVELOP YOUR OWN PROJECT

Take on a project that can motivate you and give you a sense of control, start small such as organizing a
work related celebration before moving on to larger goals. It would help to boost up the confidence level.

MENTOR A COWORKER
Once you have mastered a job you may find it becoming a routine. Helping a new coworker or an in turn
advance his or her skills can often restore the challenge and satisfaction you desire.

BEAT THE BOREDOM

Sometimes the job may seem to be boring try to innovate some better ways of doing the same work which
would not only remove the boredom but also improve the productivity like the following

BREAK UP THE MONOTONY

Take proper advantage of the work breaks. Do entertaining activities in the breaks like reading, listening
to music, going for a walk, socialize with friends; all these makes a person feel fresh.

CROSS TRAINING
If the work consists of repetitive tasks, like entering data into data base or working on an assembly line, it
can be discussed on with the superior boss about the training. After the completion of the training person
can switch back

VOLUNTEER FOR SOMETHING DIFFERENT

The employee should always volunteer and take initiative for doing any new kind of work of his level in
case if any new project is being launched
ASK FOR A NEW CHALLENGE:
If the employee is comfortable in facing new challenges it can be discussed with the superior boss and
can go for the same.

STAY POSITIVE
The person should develop an optimistic thinking to reframe ones thoughts about the job. Changing your
attitude about work wont necessarily happen overnight. Try to be more alert

LOOK FOR SILVER LINING

Reframing can help finding the good in the bad situation. Try to look for and grasp all the possible
opportunities of improvements, take criticism as a challenge and improve on them. Depending where you
work, the silver lining may be attending continually.

LEARN FROM MISTAKES

Failure is one of the greatest learning tools. Many people get affected by it and feel defeated. This attitude
should not be developed, a person should try to learn from mistakes.

BE GREATFUL
Gratitude can help a person to focus on the positive aspect of the job. Try to inculcate this feeling of
gratitude within yourself. Make the best out of the difficult situations by being positive it will help to
remove stress and experience the reward of the profession

JOB SATISFACTION AND WORK BEHAVIOUR

Job satisfaction is an integral component of organizational health and an important element in industrial
relations. The level of job satisfaction seems to have some relation with various aspects of work
behaviour such as accidents, absenteeism, turnover and productivity. Several studies have revealed
varying degrees of relationship between job satisfaction and these factors of work behaviour. But whether
work behaviour is the cause or effect of job satisfaction is not clear.
Research on the relationship between job satisfaction and accidents generally shows that satisfied
employees cause fewer accidents. Studies on the relationship between job satisfaction and absenteeism
have yielded inconclusive on the relationship between job satisfaction and absenteeism have yielded
inconclusive results. Most of these studies showed that low absentee employees were more satisfied with
their jobs. Research also reveals and unionised workers tend to be more satisfied whereas employees of
disturbed organisations (poor industrial relations) were generally les satisfied. Less satisfied employees
are more likely to quit their jobs than more satisfied employees.
It is generally assumed that satisfied employees are more productive. But research reveals no relationship
between job satisfaction and productivity. Herzberg analysed the results of twenty-six studies focusing on
the relationship between job satisfaction and productivity. Fourteen of these studies revealed that workers
with positive job attitudes were more productive than those with negative attitudes. In nine studies job
attitudes and productivity were not related in three studies there was negative correlation between job
attitudes and productivity. After reviewing several studies Brayfield and Crockett concluded that job
satisfaction did no necessarily imply high performance. Kahn also formed that satisfaction and
productivity do not necessarily go together. Employees in highly productive groups were not likely than

employees in the low productivity groups to be satisfied with their jobs. A worker may be satisfied with
the work environment but may produce more to prove his abilities to management. On the other hand, a
highly satisfied worker may not produce more and get away with it because he may be friendly with the
supervisor.
Many Indian studies, however, show significant relationship between job satisfaction and productivity.
For instance, Rajgopal analysed the relationship between the two variables among workers in six textile
mills. The results showed high productive mill workers were more satisfied with their job.

LITERATURE REVIEW

Job satisfaction is one of the main job-related attitudes. It is determined by how well auto comes
meet or exceed the expectations of the employee or employer. Job satisfaction refers to ones feelings
towards ones job. It can only be inferred but not seen. Positive attitudes towards the job are conceptually
equivalent to job satisfaction and negative attitudes towards the job indicate job dissatisfaction (Viroom,
1978).
For more clarification, we quote a few definitions of some behavioral scientists. Locke defines
job satisfaction as a pleasurable or positive emotional state resulting from the appraised of ones job or
job experience (Locke 1976). Feldman and Arnold (1983) say that job satisfaction means the amount
of overall positive effect or feelings that individuals have towards their jobs.
While Andrew Du Brin (1988) defines job satisfaction as the amount of pleasure or contentment
associated with a job, Keith Davis and Newstrom (1989) say that it is a set of favorable or unfavorable
feelings with which employees view their work. Thus from these definitions, we conclude that if any
employee likes his job intensely he will experience high job satisfaction. If the dislikes his job intensely,
he will experience job dissatisfaction.
As for productivity, the behavioral scientists, Brayfield and Crockett (1955) and Vroom (1978)
have established that the relationship between job satisfaction and job performance is weak. But Lawler
and Porter (1967) have found evidence to suggest that job performance leads to job satisfaction and not

the other way round. However, the consensus is that in the long-run job satisfaction leads to increased
productivity.
Though there may not be a direct relationship between job satisfaction and productivity,
performance may be affected indirectly by absenteeism or turnover which is negatively related to
satisfaction (Kolase, 1978).
Unlike the relationship between satisfaction and productivity, in four major reviews of the
relationship between satisfaction and employee turnover, Porter and Steers (1973), Muchinsky and
Tuttle (1979), Mobley et at (1979) and Arnold and Feldman (1982) have established that it is a positive
relationship.
With regard to the relationship between job satisfaction and absenteeism, Brought, (1981) and
Hammer (1981) in their research found that here is a positive correlation. Fred Luthans (1989) has
found that while high job satisfaction will not necessarily result in low absenteeism, low satisfaction is
likely to bring about high absenteeism.
Regarding the cause of unionization, Schriesheim, (1978) and Allen and Keaverny, (1981), in
their research, proved that job dissatisfaction is a major cause of unionization. Du Brin found that
employees under prolonged stress stemming from job dissatisfaction often consume too much alcohol,
tobacco and drugs.
These employees are a drain on the management in terms of the time lost due to frequent absence
and increased payment towards medical reimbursements (Du Brin, 1988). Further, it is also deduced that
when people are dissatisfied with their jobs, company and supervisors, they are more liable to experience
accidents. In addition, it is claimed that satisfied employees tend to have better mental and physical heath
and learn new job-related tasks more quickly.
In simple terms, job satisfaction explains what makes people wand to come to work and what
makes them happy about their job or not to quit their job Nash (1985) has extensiverly reviewed the
nature of job satisfaction in the industrial world and found that job satisfaction is attributed not only to
one but many factors and varies in its impact on individuals satisfaction with life, because work varies in
importance from individual to individual.
Nash also found that people who take their jobs as prime interest experience high level of job
satisfaction. Their job satisfaction will be further enhanced if they are doing work that is utilizing their
skills. He also found that job satisfaction is an indicator of employees motivation to come to work and it

changes with age and employment cycle. He also concluded that certain organizational characteristics
influence job satisfaction, and one of the mojor factors is the intrinsic nature of the job itself. An
individual who genuinely likes the content of the job will be more satisfied with the job. In terms of
preferences, he said that industrial workers want job with high pay. High security, promotional
opportunities, fewer hours of work and friendly supervision. Finally, he found that. If it demands
considerable effort to get a job (through education, experience or achievement), if one can make a lot of
money at it, if one cannot think of an alternative, then one should be highly satisfied with the job.
Nash also stated in his findings that factors that influence job satisfaction differ between men and
women in terms of importance of ranks. Generally, men rank security first, followed by advancement,
type of work, company, pay, co-worker, supervision, benefits, and duration of work, and then working
condition. On the other hand, women rank type of work first, followed by company, security, co-workers,
advancement, supervision, pay, working condition, duration of work, and then benefits.
Mohd. Nasurdin et al. (2003), in their study on impact of job satisfaction on intention to leave
among academicians, found that extrinsic satisfaction (pay, co-workers, promotion, etc.) had a stronger
influence on intentions of leave the institution as compared to intrinsic satisfaction (self-esteem, helping
others, etc.)
Jantan and Ramayah (1999), and Ramayah, Jantan and Tadisina (2001), in a research on
employees of manufacturing sector in Malaysia, found that work was ranked as most important, followed
by supervision and promotion. Co-worker was ranked as neutral while pay was ranked as not important.
They also found that the ranking differed between male and female employees.

Chapter 2

INDUSTRY
ANALYSIS

OVERVIEW OF INDIAN RETAIL SECTOR

The retail industry is focused on the sale of goods or merchandise from a specific location for
direct consumption by the purchaser. North America is the home of most of the worlds largest
retailers, since the U.S. dominates the global retailing industry. Not only is the retail industry
responsible for two-thirds of the U.S.s GDP, U.S. retail companies have also established a
presence on every continent. The largest retail giants globally are Wal-Mart (USA), Metro AG
(Germany), Carrefour (France) and Tesco (UK).
The industry employs a staggering number of people, and given its rapid proliferation, this
number is always on the rise. The backbone of the sector are the operations and supply chain
management jobs but there are various other options as well, from sales executives and store
managers to merchandise planners and buyers.
Performance
In todays dynamic and shaky business world, the retail industry is constantly upgrading itself.
With an endless array of customer choices, fierce competitors, pervasive use of the internet, and
a complex global economy, retailers need to focus on finding ways to sustain and grow their
businesses. Traditional growth models that focused on rolling out more stores and adding more
product lines, no longer enjoy the return on investment they once did. Successful retailers are
those who are able to adapt and change to the environment and develop new way1s of serving
customers, respecting the dynamics of current trends and adapting accordingly.
The retail industry in India is hailed as a sunrise sector, and is estimated to double in value from
US$ 330 billion in 2007 to $640 billion by 2015. In fact, India has topped AT Kearney's annual
Global Retail Development Index (GRDI) for the third year in a row as the most attractive
market for retail investment.
The bad news is, despite the fact that India has one of the largest number of retail outlets in the
World, organized retail accounts for only 4% of the total market. This makes it especially

difficult to apply sophisticated merchandising and sales tools, enhance consumer interaction and
also, make very accurate analysis. That said, analysts believe the sector is likely to show
significant growth of over 9 % p.a over the next 10 years and also see rapid development in
organized retail formats, with the proportion likely to reach a more respectable 25% by 2018.
Growth Potential
The key growth areas include the urban, luxury segment on one end of the spectrum and serving
the rural sector on the other. In addition, government policy encouraging FDI in the segment has
resulted in a plethora of international retailers keen on entering the market; American retail giant
Wal-Mart has tied-up with Bharti Enterprises and global coffee giant Starbucks' has tied up with
PVR Limited. In addition, Carrefour, Boots and others are also expected to come in.
With so much action, it is natural that there is a huge scope for employment opportunities, and
experts estimate that the sector will generate employment for ~ 2.5 million people in 2010. The
top retail companies in India include the Raheja Group, Reliance Retail, Tata Trent, Future
Group, RPG Retail, and Ebony Retail Holdings.
Future Prospects
There are many opportunities for those seeking to enter this sector, and entry level positions such
as sales executives dont even require a degree. Naturally, the higher order jobs for graduates
with relevant degrees and work experience, involve more responsibility, challenges and
remuneration. MBAs are increasingly being recruited, which marks a change of HR policy, from
the traditional preference to hire those from the FMCG and hospitality sectors. In fact, senior
executives in retail such as operations heads are extremely well looked after, and HR consultants
believe they are paid in excess of Rs. 60 lakhs.
The good news for graduates is that since the sector is so young and vibrant, career growth
happens very rapidly, and these positions are very achievable in a compressed time period.
Successful candidates across all levels are those who are dynamic, able to multi-task and are
equipped with great communication skills.

RETAIL
The sale of goods individually or in small quantities to the public to sell or be
Sold in small quantities to the public.

 Retailing consists of the sale of goods or merchandise from a fixed location, such as a
department store or kiosk, or by post, in small or individual lots for direct consumption

by the purchaser. Retailing may include subordinated services, such as delivery.

The sale of goods directly to the consumer; To sell at retail, or in small quantities
directly to customers; To repeat or circulate (news or rumors) to others; Of, or
relating to the sale of goods directly to the customer; In retail quantities, or at
retail prices
To sell directly to the consumer, usually in small quantities in comparison with the total

level of sale.
Any product for sale in a store or directly to a consumer.
Trade in which a client buys or sells an over-the-counter stock through a brokerdealer.
Merchants selling tangible goods in a face-to-face environment who normally use
Conventional terminals and swipe transactions.

TYPES OF RETAIL SECTOR

The word retail is, in fact, derived from the French word retailer, which means To cut off a
piece or to break bulk. A retailer may be defined as a dealer or trader who repeatedly sells goods
in small quantities. The sale of goods or commodities in small quantity directly to consumers.
Of, relating to, or engaged in the sale of goods or commodities at retail. It also means to sell in
small quantities directly to consumers.
Retailing is one of the pillars of the economy in India and accounts for 35% of GDP. The retail
industry is divided into organized and unorganized sectors. Over 12 million outlets operate in the
country and only 4% of them being larger than 500 sq ft (46 m2) in size.
Organized Retail
Unorganized Retail

ORGANIZED RETAIL

Organized retailing refers to trading activities undertaken by licensed retailers, that is, those who
are registered for sales tax, income tax, etc. These include the corporate backed hypermarkets
and retail chains, and also the privately owned large retail businesses.
Organized retail segment has been growing at a blistering pace, exceeding all previous estimates.
According to a study by Deloitte Haskins and Sells, organized retail has increased its share from
5 per cent of total retail sales in 2006 to 8 per cent in 2007. The fastest growing segments have
been the wholesale cash and carry stores (150 percent) followed by supermarkets (100 per cent)
and hypermarkets (75-80 per cent). Further, it estimates the organized segment to account for 25
per cent of the total sales by 2011.

UNORGANIZED RETAIL
Unorganized retailing, on the other hand, refers to the traditional formats of low-cost retailing,
for example, the local kirana shops, owner manned general stores, paan/beedi shops,
convenience stores, hand cart and pavement vendors, etc. Unorganized retailing is defined as an
outlet run locally by the owner or caretaker of a shop that lacks technical and accounting
standardization. The supply chain and sourcing are also done locally to meet local needs. Its
organized counterpart may not obtain its supplies from local sources.
Difference between organized and unorganized retailing
The major differences between organized and unorganized retailing lies in its number (chain) of
store operations. An unorganized outlet may be just stand alone or can have maximum of 2-3
outlets in a city, where as the organized outlets are "any retail chain (more than two outlets)
which is professionally managed (even if its family run), has a accounting transparency (with
proper usage of MIS and accounting standards) and organized SCM with centralized quality
control and sourcing (certain parts can be locally made) can be termed as an "organized retailing"
in India. Retailing in India is predominantly unorganized. According to a survey by AT Kearney,
an overwhelming proportion of the Rs. 400,000 crore retail markets are UNORGANISED. In
fact, only a Rs. 20,000 crore segment of the market is organized.
We are known as a nation of shopkeepers with over 12 million, the highest outlet density in the
world in the world with an estimated turnover of $ 200 billion. However a disturbing point here

is that as much as 96 per cent of them are smaller than 500 square feet in area. This means that
India per capita retailing space is about 2 square feet (compared to 16 square feet in the United
States). India's per capita retailing space is thus the lowest in the world. Another point to note is
that only 8 % of our population is engaged in Retail whereas the global average is around 10
12%.

INSTORE RETAILERS
This type of retail format is also known as the brick and mortar format. These retail stores are in
the form of fixed point sale outlets. They are specially designed to lure the customers. There are
different types of stores through which the instore retailers operate
Branded Stores appear in the form of exquisite showrooms. Here the total range of a particular
brand is available and the quality of the product is certified by the government.
There are also multi brand specialty stores that sell a series of brands so that the consumer can
choose from the wide array of brands.
Department stores have a large number of brands and products catering to all basic needs to
luxurious items as well.
Supermarkets are basically self service retail stores. Discount Stores offer commodities at
reduced prices. In Hyper Marts customers have wide variety of products to choose from and they
are also available at discounted rates. Convenient stores are located in prominent places within
the reach of majority of the customers and do not operate in stringent work hours.
Shopping Malls are a storehouse of a large variety of retail shops situated close to each other.

Formats In Indian Organized Retail Sector

Formats in Indian Organized Retail Sector and its subsequent successful operation are credited to
India Economic System reform earnest in July 1991. Formats in Indian Organized Retail Sector
are at its nascent stage. The Central Government has ultimately realized the need to remove the
insulation out of the Indian retail sector. Skeptics opines opening up Indian retail industry would

jeopardize way of income for the poor small retailers. In fact, the actual story is quite heartening
for the small time retailer and its vendors.

It is the second fastest growing economy of the world

Potential to be the third largest economy in terms of GDP in next few years
It ranks high amongst the top 10 FDI destinations of the world
Fastest growing tourist market in Asia
World Bank states, India to be worlds second largest economy after China by the year

2050
Stable and investor friendly Central Government at the helm of affairs
Introduction of Value Added Tax or VAT and tax reforms
High degree of professionalism and corporate ethics
Excellent Investment opportunities in Indian retail sector and in allied sectors; sure and

high returns on investments

To invest US $130 billion for the development of infrastructure, by year 2010
To attract US $ 10 billion FDI for infrastructure development by the end of year 2008
Bullish stock markets
Hordes of foreign investors are thronging in to invest in Indian retail markets
Highly educated English speaking young workforce
Vibrant and multi cultured cities
Huge opportunity exists, especially in semi-rural and rural areas
Till date the second largest employer after agriculture sector, for the huge semi-skilled

Indian population
Offers highest shop density in the whole world
Having almost 1,20,000 shops, across the length and breadth of the country
In a nascent stage of development as an organized industry
Formats in Indian Organized Retail Sector

Supermarkets
Hypermarkets
Department Stores
Modern format individual retailers
Shopping malls
Specialty Chains

1. High Street Shops

High Street Shops of India are predominantly unorganized. Indian high street shops are varied
and scattered. High Street Shops of India generally occurs in small tufts and sells products that

are very relevant to economic needs of that particular area. For example, the High Street Shops
in villages offer groceries and daily use commodities that are generally unbranded and cheaper in
price and quality. High Street Shops in towns and cities are more organized and sells daily use
commodities along with luxury items. Generally, these High Street Shops of India sells branded
products from Indian and foreign manufacturers respectively. Although, the consumerism is
showing a rising trend in India, but the majority of the semi-rural and rural market is untapped.
Huge opportunity exists in organized retailing in India.
High Street Shops of India and its stupendous growth is credited to India Economic System
reform earnest in July 1991. The important parameters of Indian Economic System showed
prominent increase. The economic liberalization of Indian economy resulted from enactment of
liberal financial and economic policy. This in fact, has removed the insulation from the Indian
market. Foreign Direct Investments started to flow into the Indian domestic markets. The Indian
retail market is at its nascent stage. The Central Government has ultimately realized the need to
remove the insulation out of the Indian retail sector. Skeptics opines that opening up the Indian
retail industry would jeopardize the way of income for the poor small retailers. In fact, the actual
story is quite heartening for the small time retailer and its vendors.

2. Convenience Stores
These are relatively small stores 400-2,000 sq. feet located near residential areas. They stock a
limited range of high-turnover convenience products and are usually open for extended periods
during the day, seven days a week. Prices are slightly higher due to the convenience premium.
This site provides detailed information on convenience stores of India. The site also focuses on
the current status of convenience stores operating in India.
The successful launch and operations of convenience stores in India is credited to the Indian
economic reforms in July, 1991. Convenience stores in India are still at a nascent stage but are
headed for stupendous growth in the near future. The central government has ultimately realized
the need to open up the Indian retail sector.
Types of convenience stores found in India are:

Specialty Stores
Supermarkets
Franchisee Outlets
Hypermarkets

Skeptics opine that liberalizing the Indian retail industry would jeopardize the income of small
retailers. However, small-time retailers and vendors also stand to gain from the launch of
convenience stores in India. Indian and international market leaders are flocking to the Indian
market to cash in on the specialty stores retail boom. Some industry leaders operating in other
sectors are also diversifying into the specialty stores sector.

3. Specialty Stores
Specialty Stores of India and its subsequent successful operation is credited to India Economic
System reform earnest in July 1991. Specialty Stores of India is at its nascent stage and heading
for a stupendous growth in the near future. The Central Government has ultimately realized the
need to remove the insulation out of the Indian retail sector. Skeptics opine that opening up of
the Indian retail industry would jeopardize the way of income for the poor small retailers. In fact,
the actual story is quite heartening for the small time retailer and its vendors. Both, Indian and
international market leaders are pouring into the Indian market to encase on the specialty stores
retail boom. In fact, some industry leaders operating in other sectors are also diversifying into
specialty stores sector.
Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword, RPG's
Music World and the Times Group's music chain Planet M, are focusing on specific market
segments and have established themselves strongly in their sectors.
Specialty Stores of India like

Pantaloons
Steel junction
Metal junction
Food bazaar
Haldiram bhujiawala
Music world
Nokia world
Sony world
Khadims
Adidas
Bata
Raymonds
Ganguram
KC Das
Bausch and Lomb

 Apollo pharmacy
Sify-i way
Are doing good business and the profit margin of these Specialty Stores of India are rising every
year.

4. Hypermarkets
The concept of Hypermarkets is new to Indian consumers. Actually, the British colonial
government introduced the idea of Supermarkets to facilitate its officers with access of all
household goods under one roof. This led to the development of super-supermarket or modern
supermarket or Hypermarket. Hypermarkets in India houses varied shops selling different types
of essential commodities along with luxury items. These Hypermarkets are mainly concentrated
in urban areas only. Hypermarkets operating in India typically have a heterogeneous mixture of
large and small individual retailers. Most of these Hypermarkets sell branded products of both,
domestic and international manufacturers. Hypermarkets of India offer products with different
price bands for each and every sections of urban society.
Large self service outlets, catering to varied shopper needs are termed as Supermarkets. These
are located in or near residential high streets. These stores today contribute to 30% of all food &
grocery organized retail sales. Super Markets can further be classified in to mini supermarkets
typically 1,000 sq ft to 2,000 sq ft and large supermarkets ranging from of 3,500 sq ft to 5,000 sq
ft. having a strong focus on food & grocery and personal sales.
These Hypermarkets in India sells products like

Electronic goods
Groceries
Vegetables and fruits
House hold items
Stationeries
Pharmaceuticals and health care products
Consumer durables
Vegetables
Dress materials
Furniture
Furnishings etc.

Hypermarkets in India - the first choice places

Delhi

Noida
Gurgaon
Hyderabad
Bangalore
Ahmadabad
Chandigarh

Hypermarkets in India - the operators

Reliance retail
Bhakti-Wal-Mart retail

5. Supermarkets
The concept of Supermarkets is not new to Indian consumers. Actually, the British colonial
government introduced the idea of Supermarkets to facilitate its officers with access of all
household goods under one roof. Supermarkets in India houses varied shops selling different
types of essential commodities along with luxury items. These Supermarkets are mainly
concentrated in urban areas or semi-urban areas. Supermarkets operating in India typically have
a heterogeneous mixture of large and small individual retailers. Most of these Supermarkets sell
branded products of both, domestic and international manufacturers. Supermarkets of India offer
products with different price bands for each and every sections of urban society.
With increased consumerism post India Economic System reform earnest in July 1991, the
Supermarkets in India are regaining their lost importance. Moreover, this consumerism has
spread its tentacles to semi-rural areas also, leaving tremendous scope of growth in semi-rural
and rural areas also. The Central Government has ultimately realized the need to remove the
insulation out of the Indian retail sector. Skeptics opine that opening up the retail sector in India
would jeopardize the way of income for the poor small retailers. In fact, the actual story is quite
heartening for the small time retailer and its vendors. Both, Indian and international market
leaders are pouring into the Indian market to encash on the Supermarkets boom.

6. Shopping Malls
The latest trend in the corporate universe is of the emergence of the shopping malls. Shopping
malls are an emerging trend in the global arena. The first thing that comes in our mind about the
shopping malls is that it is a big enclosed building housing a variety of shops or products.

According to historical evidences shopping malls came into existence in the Middle Ages,
though it was not called so. The concept of departmental stores came up in the 19th century with
the Industrial Revolution. Consumers wanted a better shopping experience and this demand gave
rise to the emergence of shopping malls in India.
Originally the first of the shopping malls was opened in Paris. Then the trend followed in the
other metros over the world, and there was a spree of shopping malls coming up at various
places. In this age of mass production and mass consumption, the concept of shopping malls is
most modern method of attracting consumers. The concept of shopping was altered completely
with the emergence of these shopping malls.
Shopping was no longer limited to a mere buying activity - it has become synonymous with
splurging time and money. People simply go about roaming through the shopping mall in order
to peep through the window of the shop and often ending up buying something they like. The
consumers desire a combination of comfort and suitability which the shopping malls cater to, and
so this format of shopping has become so popular all over the world, and especially so in India.
The inclusion of amenities like restaurants, multiplexes, and car parks attract more and more
crowds to shopping malls that are considered family hangout zones. The largest form of
organized retailing today located mainly in metro cities, in proximity to urban outskirts. Ranges
from 60,000 sq ft to 7, 00,000 sq ft and above. They lend an ideal shopping experience with an
amalgamation of product, service and entertainment; all under a common roof. Examples include
Shoppers Stop, Piramyd, and Pantaloon.
Advantages of shopping malls

Increase in the growth of the organized retail sector

Monumental increment in economic growth
Employment generation by the organized retail sector
Good competition means better products & services

Disadvantages of shopping malls

The companies with superior resources would muscle out the ones inferior to them.
Monopolization of the organized retail sector

In India, the emergence of shopping malls has mostly altered the lifestyle of the consumers.
With the growth in income, changing attitudes, and also the demographic patterns favour the
emergence of shopping malls.
The trends to follow in the future
The shopping malls favor a growth in the Indian organized retail sector by 10% within
2010
There would be different formats of shopping malls depending on the region.

7. Franchisee Outlets
Franchisee outlets in India are predominantly unorganized and considerably new in concept. For
an international company with a famous product or service to sell, Franchisee outlets can provide
huge opportunity for fast expansion and deep market penetration. Opening up of Franchisee
Outlets saves initial capital investment. Franchisee outlets in India can effectively help in the
distribution process of goods and services in lesser time but creating similar effects on balance
sheet. The greatest advantage of opening Franchisee outlets in India is that it offers full
commitment from franchisees. And as a matter of fact the franchisees are more committed than
employers or staff since they own a share of the main business and are accountable for losses.
Franchisee outlets in India - its benefits are:

Franchisee enjoys liberty of self-employment

The most successful way of starting a new business
Franchising opportunities exists in every area of business and trade
Low or no initial capital investment for the franchiser
Quality and reputation of the parent company is maintained
The license for franchise is renewable after or before the expiry of the term of contracts
Liabilities of parent companies are less
The Franchisee outlets have better commitments and responsibilities to discharge
Huge income opportunity for the franchiser and franchisee
No introductory advertisement is needed for the Franchisee outlets for the establishment
of the brand

Franchisee outlets in India - some well-known outlets are:

Mc. Donald's
Kentucky Fried Chicken

Subway
Monginis
Sugar and spice
Coca cola
Pepsi
Frito lays
Perfetti

Indian Unorganized Retail Sector & Its Challenge

India is the only one country having the highest shop density in the world, with 11 outlets per
1000 people (12 million retail shops for about 209 million households). Rather we can see the
democratic scenario in Indian Retail (because of low level of centralization, low capital input and
due to a good number of self-organized retail).
India started its Retail Journey since ancient time.
In Ancient India there was a concept of weekly HAAT, where all the buyers & sellers
gather in a big market for bartering. It takes a pretty long times to & step to shape the
modern retail. In between these two concepts (i.e. between ancient retail concept & the
modern one there exist modern kirana/ mom and pop shops or Baniya ki Dukan. Still it is
predominating in India
Unorganized retailing refers to the traditional formats of low-cost retailing, for example,
hand cart and pavement vendors, & mobile vendors, the local kirana shops, owner
manned general stores, paan/beedi shops, convenience stores, hardware shop at the
corner of your street selling everything from bathroom fittings to paints and small
construction tools; or the slightly more organized medical store and a host of other small
retail businesses in apparel, electronics, food etc

Characteristics of unorganized retail

Small-store (kirana) retailing has been one of the easiest ways to generate self-employment, as it
requires limited investment in land, capital and labor. It is generally family run business, lack of
standardization and the retailers who are running this store they are lacking of education,
experience and exposure. This is one of the reasons why productivity of this sector is
approximately 4% that of the U.S. retail industry.
Unorganized retail sector is still predominating over organized sector in India, unorganized retail
sector constituting 98% (twelve million) of total trade, while organized trade accounts only for
2%.
The reasons might be In smaller towns and urban areas, there are many families who are traditionally using
these kirana shops/ 'mom and pop' stores offering a wide range of merchandise mix.
Generally these kirana shops are the family business of these small retailers which they
are running for more than one generation.
These kiran shops are having their own efficient management system and with this they
are efficiently fulfilling the needs of the customer. This is one of the good reasons why
the customer doesn't want to change their old loyal kirana shop.
A large number of working class in India is working as daily wage basis, at the end of
the day when they get their wage, they come to this small retail shop to purchase wheat
flour, rice etc for their supper. For them this the only place to have those food items
because purchase quantity is so small that no big retail store would entertain this.
Similarly there is another consumer class who are the seasonal worker. During their
unemployment period they use to purchase from this kirana store in credit and when they
get their salary they clear their dues. Now this type of credit facility is not available in
corporate retail store, so this kirana stores are the only place for them to fulfill their
needs.
Another reason might be the proximity of the store. It is the convenience store for the
customer. In every corner the street an unorganized retail shop can be found that is
hardly a walking distance from the customer's house. Many times customers prefer to
shop from the nearby kirana shop rather than to drive a long distance organized retail
stores.

 These unorganized stores are having n number of options to cut their costs. They incur
little to no real-estate costs because they generally operate from their residences. Their
labor cost is also low because the family members work in the store. Also they use cheap
child labor at very low rates.
As they are operating from their home so they can pay for their utilities at residential
rates. Even they cannot pay their tax properly. Currently the value of the retail market is
estimated at around $ 270 billion with a growth rate of 5.7 per cent per annum according
to the Indian retail report which creates a big threat for the small unorganized retailers.
Over 20,000 new retail outlets are expected to open within this segment. Major corporate retail
like Wal-Mart and have started to try and take over the Indian retail sector.
But in India the unorganized retail is a source food and other necessities of millions of Indians,
major link between rural and urban societies. Not only that it is also act like a convenience store
for the customer offering right product at right time at right place. In a country with large
numbers of people, and high levels of poverty, this model of retail democracy is the most
appropriate
So these unorganized retail sector need to be promoted so that they can organize & supply food
to Indian consumer.
Now the question is how to promote this sectorThe suggestions might be Establishment of Retailer co-operatives among retailers which is highly required for the
sustenance of the unorganized retail sector
Merger and buy-out of weak retailers by a stronger one that would give a new horizon to
the small retailer
Setting up of franchisee organization may also help in strengthening the position of the
retailers. The franchiser can exert a tremendous control over the way retailing is done.
There must be good network connection between retail organizations, the suppliers and
other channel members to use compatible technology so that they can build strong
distribution set-up to satisfy the customers.
Setting up of more and more non-store retailing centres would also ensure a strong
retailing organization. Non-store retailing makes implementation of modern principles
easier and less costly.

 Moreover there must be a change in the mind-set of the unorganized retailer. They have
to understand the pulse of the trend. They have to understand, come forward & lead this
change management then only this sector not only can exist but flourish.
Employment Impact
The sampled unorganized retail outlets employ more family labor than hired labor; On an
average they employ 1.5 persons per shop from the family, and hired employees of 1.1 persons.
The survey finds a marginal increase in overall employment for these outlets over the period of
existence of the sampled organized retail outlets which averaged 21 months. However, there has
been a general increase in employment in the South and East but a decline in the West and
virtually no employment change in the North. There appears to be a relation between the
employment effect on unorganized retail and the period of existence of organized outlets; the adverse
effect, if at all there is any, wears off with time. Interestingly, in the South and East, where the
sampled organized retailers have been in operation for some time, there has been an increase in
employment.
The survey has brought out that there has been an adverse impact on turnover and profit of the
unorganized retail sector after the opening of organized outlets. The overall impact has been a decline
in turnover of about 14 per cent and in profit of about 15 per cent over the period, which is an
average of 21 months. Therefore, the annual decline in turnover and profit is in the range of 8-9 per
cent. The negative impact has been felt most in the West with an annual fall in turnover and profit of
19 per cent followed by the North and East in the range of 10-16 per cent whereas the effect has been
virtually insignificant in South

Closure of Unorganized Outlets

It is interesting to know whether the presence of organized retail has led to the closure of
traditional outlets. The survey asked the respondent retailers whether they are aware of any
closing down of small shops in their neighborhood after the opening of Organized outlets. A total
of 151 such outlets were reported to have been closed down over an average period of 21
months, which constituted about 4.2 per cent annualized closure of retailers. This ratio is
somewhat higher in the West at 6.8 per cent, about 4.5 per cent in the North, 3.5 per cent in the
South and least at 2.1 per cent in the East. These rates of closure are very low by international

standards. The US data show a 50 per cent closure of small businesses within four years of
operation (Head, 2003).
However, only 41 per cent of the retailers attributed these closures directly to competition from
organized retail. This means that the closure of unorganized retail outlets has been about 1.7 per
cent a year on account of competition from organized outlets. This varied between a high of 3.2
per cent in the West to a low of 0.4 per cent in the East and 1.5 per cent in the South and 1.6 per
cent in the North.
Response to Competition

According to the survey, unorganized retailers have indicated a number of steps taken in
response to competition from organized retail, such as adding new product lines and brands,
better display, renovation of the store, introduction of self service, enhanced home delivery, more
credit sales, acceptance of credit cards, etc

Retailers reporting Home Delivery

The results of the survey suggest that over a third of the retailers (35 per cent) currently provide
cash credit to their customers and the proportion is highest at 44 percent in the East and least in
the South at 32 per cent and in between at 36-37 per cent in the West and North. The average
share of credit sales to total sales has been 21 percent, up from 13 per cent before the opening of
organized outlets a number of modern technological facilities and this section is going to widen in
the future (Table 4.10). For example, acceptance of credit cards by small retailers is a new
phenomenon resulting from the presence of organized retailers. Currently 7 percent of the
sampled unorganized retailers have installed credit card machines and the survey showed that
Another interesting finding is that a section of traditional retailers are currently using a huge
additional 24 per cent plan to use a credit card machine in the future. Computerized billing is done
by 10 per cent of these retailers and an additional 27 per cent is planning to use it in the future.
Scanning and bar coding is done currently by 4 per cent and an additional 17 per cent plan to use
it in the future.

Computerized accounting and inventory control is practiced by 5 per cent now and 19 per cent more
want to do it in the future. Refrigerant, freezer, and hot case facilities are already being used by 36 per
cent and in addition 14 per cent wish to utilize it in the future. About 10 per cent of the traditional
outlets are air-conditioned and another 21 per cent will opt for it in the future. Surprisingly, about 45 per
cent of these retailers have an electronic weighing machine, and an additional 15 per cent want to1.
An important aspect of the current economic scenario in India is the emergence of organized
retail. There has been considerable growth in organized retailing business in recent years and it is
poised for much faster growth in the future. Major industrial Houses have entered this area and
have announced very ambitious future expansion Plans. Transnational corporations are also seeking to
come to India and set up retail chains in collaboration with big Indian companies. However,

opinions are divided on the impact of the growth of organized retail in the country. Concerns
have been raised that the growth of organized retailing may have an adverse impact on retailers
in the unorganized sector. It has also been argued that growth of organized retailing will yield
efficiencies in the supply chain, enabling better access to markets to producers (including
farmers and small producers) and enabling higher prices, on the one hand and, lower prices to
consumers, on the other. In the context of divergent views on the impact of organized retail, it is
essential that an in-depth analytical study on the possible effects of organized retailing in India is
conducted.
In order to assess the impact of growing organized retail on different aspects of the Economy, the
Indian Council for Research on International Economic Relations (ICRIER) was appointed by
the Ministry of Commerce and Industry, Government of India to carry out a study on organized
retail focusing on the following issues:

Effect on small retailers and vendors in the unorganized sector keeping in

Mind the likely growth in the overall market.
Effect on employment.
Impact on consumers.
Impact on farmers and manufacturers.
Impact on prices.
Overall impact on economic growth.

ICRIER has been asked by the Ministry to analyze the above issues in the context of a
growth scenario of 7-10 per cent per annum in the next five years and in the light of
Practice in other fast- growing emerging market economies.

Partners in the Study

In this study, ICRIER sought and received assistance from three important groups: (a)
Development & Research Services Private Limited (DRS) for conducting all-India
Surveys;
(b) Technopak Advisers Pvt. Ltd., a leading management consultancy firm
on retailing; and
(c) Dr. Thomas Reardon and Dr. Ashok Gulati as Co-Directors of the
International Food Policy Research Institute (IFPRI)-Michigan State University
(MSU) Joint Programme of Markets in Asia. After a study framework was prepared, it was
discussed in a brainstorming session organized by ICRIER on April 9, 2007 in which industry
representatives, government officials, and senior academics participated.
Questionnaire-based survey of unorganized retailers including fixed fruit and vegetable
vendors and push-cart hawkers;
Questionnaire-based exit survey of consumers shopping at organized retail outlets and
also consumers shopping at unorganized outlets; and
Questionnaire-based survey of farmers who are selling their produce directly to organized
retailers and also farmers who are selling through the traditional mandi route.

INDIAN RETAIL MARKET:

OPPORTUNITIES AND CHALLENGES PRESENT SENERIO

Retail in India changed radically to become one of the sunrise sectors in the economy. It gained
importance in terms of employment generation and business opportunity. The waves of
globalization, liberalization and privatization have been responsible for this change. But the retail
industry has been hard-hit by the economic downturn, with many retailers putting a brake on
their expansion plans. In this scenario, the kirana store. Retail in India changed radically to
become one of the sunrise sectors in the economy. It gained importance in terms of employment
generation and business opportunity. The waves of globalization, liberalization and privatization
have been responsible for this change. But the retail industry has been hard-hit by the economic
downturn, with many retailers putting a brake on their expansion plans. In this scenario, the
kirana stores are flourishing again. India is the fifth largest retail destination globally from
among thirty emergent markets, with a size of US$500bn., and is expected to grow at 7% over
the next 10 years, reaching a size of US$ 850 billion by 2020. Traditional retail is expected to
grow at 5% and reach a size of US$ 650 billion (76%), while organized retail is expected to grow
at 25% and reach a size of US$ 200 billion by 2020. The growth of organized retail also helps
reduce the inefficiencies in trade a win-win situation for farmers and consumers. It can also be
a big source of employment, more so for unskilled labor. Organized retail accounts for just 5% of
total retail sales and has been growing at 35% CAGR. The retail industry is definitely one of the
pillars of the Indian. Going forward, with the competition intensifying and the costs scaling up,
the players who are able to cater to the needs of the consumers and grow volumes by ensuring
footfalls, while being able to reduce costs, withstand downturns, and face competition will have
a competitive advantage. Since 2010 was a tough year for the retail sector, India fell slightly in
the rankings of the US-based global management consulting firm, A T Kearney, in its Global
Retail Development Index (GRDI) 2011, has ranked India as the fourth most attractive nation for
retail investment, among 30 emerging markets. However, India ranks higher compared to other
emerging markets like Brazil and Russia. Compared to other emerging markets, India a more
stable and stronger economy and penetration levels are low, while domestic consumption is high.
Due to these reasons, India is still one of the most attractive destinations for international
retailers looking at expanding into emerging markets. Retailing in India is gradually inching its
way toward becoming the next boom industry. The whole concept of shopping has altered in
terms of format and consumer buying behavior, ushering in a revolution in shopping in India.
Modern retail has entered India as seen in sprawling shopping centers, multi-storied malls and

huge complexes offer shopping, entertainment and food all under one roof. The Indian retailing
sector is at an inflexion point where the growth of organized retailing and growth in the
consumption by the Indian population is going to take a higher growth trajectory. The Indian
population is witnessing a significant change in its demographics. A large young working
population with median age of 24 years, nuclear families in urban areas, along with increasing
working-women population and emerging opportunities in the services sector are going to be the
key growth drivers of the organized retail sector in India

EVOLUTION OF INDIAN RETAILING

Retailing in India has a long history. Early retailing in India can be traced back to the weekly hats
where vendors used to put their offerings on sale. Kirana stores have traditionally dominated the
Indian retail market for a long time. Most of the retail stores in India are small family run
businesses utilizing predominantly household labor. Organized retail began to make its mark in
India in the 1970s when shops like Raymonds, Nallis and Bata were in the market through their
exclusive stores or franchisees. Till the early 1980 s Indian people did not visit large retail stores
to buy ready- to- wear clothing. During the 1990s, the wave of liberalization, privatization and
globalization ushered in new retailing formats, modern techniques and exclusive retail outlets like
Shoppers Stop (1991), Pantaloons (1997) and others. Further transformation was witnessed
during the early years of 21st century, with the opening of the numerous supermarkets,
departmental stores, chain stores and malls across the country, and emergence of hypermarkets
and big

discount stores. The affluent and the

retail stores, given the improved facilities that

upper middle class enjoyed shopping at these

they offered such as shopping ambience,

friendly layout and a single point- of purchase for a wide variety of goods. Organized Retail in
India refers to the modern retail formats like supermarkets and hypermarkets prevalent in most
developed countries. Organized retail remained a dormant sector largely due to the lack of
infrastructure for large-scale retail, absence of product variety and a conservative Indian
consumer. Today the flood of products in the market coupled with a wealthier, more informed
Indian consumer have created the atmosphere for the entry of organized retail in India Today
people look for better quality product at cheap rate, better service, better ambience for shopping
and better shopping experience. Organized retail promises to provide all these.

EVOLUTION OF THE SECTOR

Government supported
Modern Formats/international
Traditional Pervasive Reach
Historical Rural
Reach

Exclusive Brand Outlet

Hyper/Super Markets
Department Stores
Shopping Malls
PDS Outlets
Khaadi Stores
Cooperatives

Convenience Stores
Mom and Pop/Kiranas

REASONS FOR RETAIL SECTOR BOOM IN INDIA

It has been a decade-and-a-half since India embarked on an ambitious economic liberalization
programmer. Over the last five years, many of its benefits have manifested themselves and one
of the areas where growth is clearly reflected is retailing.
The latest pronouncements of Finance Minister P Chidambaram about the sector have fuelled
interest in stocks from the segment. Let's turn the spotlight on the factors that triggered the
exponential growth in the sector.
Primary reasons
The prime reasons that fuelled this boom include favorable demographics, rising consumer
incomes, real estate developments, especially the emergence of new shopping malls, availability
of better sourcing options - both from within India and overseas - and changing lifestyle.

These factors have transformed hitherto savings-oriented and conservative Indian consumers and
made them akin to those in developed markets.

Organized versus unorganized

In a sharp contrast to the retail sector in developed economies, retailing in India - though large in
terms of size - is highly fragmented and unorganized. With close to 12 million retail outlets the
country has one of the highest retail densities worldwide.
Retailers include street vendors, supermarkets, department stores, restaurants, hotels and even
two-wheeler and car showrooms.
Counter stores, kiosks, street markets and vendors, where the ownership and management rest
with one person are classified as traditional or unorganized retail outlets.
These formats typically require employees with low skills and account for around two-thirds of
the sector's output. These are highly competitive outlets, with minimal rental costs (unregistered
kiosks or traditional property), cheap labor (work is shared by family members) and negligible
overheads and taxes.
However, unorganized retailers suffer due to poor shopping experience and inability to offer a
wide range of products and value-addition due to lack of sourcing capabilities.
The modern Indian consumer is seeking more value in terms of improved availability and
quality, pleasant shopping environment, financing options, trial rooms for clothing products,
return and exchange policies and competitive prices. This has created a rapidly growing
opportunity for organized, modern retail formats to emerge in recent years and grow at a fast
pace.
Inefficiency in the existing supply chains presents further opportunity for organized players to
draw on this large market even as lack of consumer culture and low purchasing power restricted
the development of modern formats. Migration from unorganized to organized retail has been
visible with economic development in most countries.

Changing age profile and disintegration of joint family

India is witnessing a change in the age and income profiles of its over 1 billion population, which
is likely to fuel accelerated consumption in the years to come.

The country is believed to have an average age of 24 years for its population as against 36 years
for the USA and 30 years for China. A younger population tends to have higher aspirations and
spends more as it enters the earning phase.
Besides, the gradual disintegration of the traditional Indian joint family system has led to
nuclearisation of families, which in turn has led to enhanced demand.
Add to this an increasing population of working women and new job opportunities in emerging
service sectors such as IT-enabled services, retail, food services, entertainment and financial
services.
With declining interest rates, the aversion of domestic consumers to taking loans is also fast
disappearing. Growing media penetration is leading to a convergence of aspirations of various
classes of consumers, bridging the rural-urban divide.

Growing disposable income

More Indian households are getting added to the consuming class with the growth in income
levels. The number of households with income of over Rs 45,000 per annum is expected to grow
from 58 million in 1999-2000 to 81 million by 2005-06.
This large base of households with growing disposable income is expected to drive demand for
organized retail. Of this, 56 per cent (44. 8 million households) are expected to be concentrated
in urban India.
Changing income demographics, age profile and macro environment are visible in the growth in
consumption of durables. To cite live examples, the installed base of cars, cable TV subscribers
and cellular subscribers has increased significantly over the last five years.

CHALLENGE FACING THE INDIAN RETAIL SECTORE

India is the fifth largest retail destination globally from among thirty emergent markets, with a
size of US$500bn., and has been growing at 7% per annum with a contribution of 14% to the
national GDP and employing 7% of the total workforce (only agriculture employs more) in the
country. Retail is the India's industry of the future. It can also be a big source of employment,
more so for unskilled labor. Organized retail accounts for just 5% of total retail sales and has

been growing at 35% CAGR. The sector is expected to grow up to US$ 535 bn by 2013, with
10% coming from the organized retail sector. Modern retail has entered India as seen in
sprawling shopping centers, multi-storeyed malls and huge complexes offer shopping,
entertainment and food all under one roof. The Indian retailing sector is at an inflexion point
where the growth of organized retailing and growth in the consumption by the Indian population
is going to take a higher growth trajectory. The Indian population is witnessing a significant
change in its demographics. A large young working population with median age of 24 years,
nuclear families in urban areas, along with increasing working-women population and emerging
opportunities in the services sector are going to be the key growth drivers of the organized retail
sector in India. The present paper aims to discuss the opportunities and challenge for retail
industry and different retail formats that are prevailing in India.

FOOD RETAIL IN INDIA

Though with a population of a billion and a middle class population of over 300 millions
organized retailing (in the form of food retail chains) is still in its infancy in the Country. India
has been rather slow in joining the Organized Retail Revolution that was rapidly transforming
the economies in the other Asian Tigers. This was largely due to the excellent food retailing
system that was established by the kirana (mom-and-pop) stores that continue meet with all the
requirements of retail requirements albeit without the convenience of the shopping as provided
by the retail chains; and also due to the highly fragmented food supply chain that is cloaked with
several intermediaries (from farm-processor-distributor-retailer) resulting in huge value loss and
high costs. This supplemented with lack of developed food processing industry kept the
organized chains out of the market place. The correction process is underway and the systems are
being established for effective Business-to-Business (farmer-processor, processor-retailer)
solutions thereby leveraging the core competence of each player in the supply chain.

Spread of Organized Retailing in India

Organized retailing is spreading and making its presence felt in different parts of the country. The
trend in grocery retailing, however, has been slightly different with a growth concentration in the
South. Though there were traditional family owned retail chains in South India such as Nilgiris
as early as 1904, the retail revolution happened with various major business houses foraying into
the starting of chains of food retail outlets in South India with focus on Chennai, Hyderabad and
Bangalore markets, preliminarily. In the Indian context, a countrywide chain in food retailing is
yet to be established as lots of Supply Chain issues need to be answered due to the vast expanse
of the country and also diverse cultures that are present.
Retail Models in India: Current & Emerging
The Indian food retail market is characterized by several co-existing types and formats. These
are:
1. The road side hawkers and the mobile (pushcart variety) retailers.
2. The kirana stores (the Indian equivalent of the mom-and-pop stores of the US), within which are:
a. Open format more organized outlets
b. Small to medium food retail outlets.

Modern trade the organized retailers

Within modern trade, we have:
1. The discounter (Subhiksha, Apna Bazaar, Margin Free)
2. The value-for-money store (Nilgiris)
3. The experience shop (Food world, Trinethra)
4. The home delivery (Fabmart)
While the focus of this note is on modern organized retail trade, we hereunder present insights
into the smaller, semi and unorganized retailers.

Hawkers mobile supermarkets

The unorganized sector is characterized by the lari-galla vendors (also known as mobile
supermarket) seen in every Indian byline and is, therefore, difficult to track, measure and
analyses. But they do know their business these lowest cost retailers can be found wherever
more than 10 Indians collect a rural post office, a dusty roadside bus stop or a village square.
As far as location is concerned, these retailers have succeeded beyond all doubt. They have
neither village nor city-wide ambitions nor plans their aim is simply a long walk down the end
of the next lane. This mode of mobile retailers is neither scalable nor viable over
the longer term, but is certainly replicable all over India. Most retailing of fresh foods in India
occurs in Mandis and roadside hawker parks, which are usually illegal and entrenched. These are
highly organized in their own way. Hawking of food products, cooked food and FMCG products
is a very interesting model of retailing. Much has been written about these roadside malls
from social security issues to their nuisance value. However, if you put these hawkers together,
they are akin to a large supermarket with little or no overheads and high degree of flexibility in
merchandise, display, prices and turnover. While shopping ambience and the trust factor maybe
missing, these hawkers sure have
INTEGRATION OF FOOD INDUSTRY THE KEY DRIVER OF FOOD RETAIL IN
INDIA
India is worlds second largest grower of fruits and vegetables after Brazil and China. While the
agriculture sector has witnessed several leaps of innovation and technological advancements, the
processing sector is still in its infancy. Even with less than 4% processing of fruits and
vegetables, the Food Processing Industry sector in India is one of the largest in terms of
production, consumption within India, export and growth prospects. The government has
accorded it a high priority, with a number of fiscal reliefs and incentives, to encourage
commercialization and value addition to agricultural produce; for minimizing pre/post harvest
wastage, generating employment and export growth. As a result of several policy initiatives
undertaken since liberalization in early 90s, the industry has witnessed fast growth in most of
the segments. In the following few paragraphs, it can be noted that the processed food market for
India is vast and the amount of scope that retail chains would be exposed to is phenomenal

taking into consideration the demographics and raise in standards of living. Retailers could
throng the market with all these processed and packaged foods with their private labels.
With the emergence of the big private corporates, NGOs (Non-Government Organizations) and
Government organizations into the food processing scene, India is making big in-roads into the
Food Processing Industry. These corporates and NGOs have reached out to the farmers and
provided them with timely advice and help in the up gradation of farm practices with valuable
inputs on various areas of farming from sowing to harvesting which includes quality seed
procurement, manures, fertilizers and pesticides etc. Some of the successful models are that of
ITCs e-choupal a model that helps the soybean farmers in contract producing for ITC for its
commodity trading business. The PEPSI experimenting with Punjab farmers in growing the right
quality tomato for its tomato purees and pastes. Some of the leading food retail chains working
with farmers for contract growing greens for supply to their retail outlets etc etc. These
successful models are being replicated with required changes all over the country and the food
industry is getting integrated more strongly.
India has also seen a flurry of food chain majors like McDonalds, Pizza Hut and Kentucky Fried
Chicken finding their place among the Indian consumers. The trend still follows for food chains
in India to spread to almost all cities and towns.
These advancements have revolutionized the integration of the Indian Food Industry and has
played a vital role in solving, to a large extent, major supply chain issues that prevailed. The
trend is that these successful institutional intervention models be replicated and spread in all
segments of the food industry far and wide through the country that benefit all the incumbents of
the chain evolve. This finally helps the retailer as his supply chain becomes much leaner and
vertically integrated. He is in a position to offer a wide variety and highest degree of convenience
to his customer.

ECONOMY
Economic growth at over 5.5% over the last eight years, forex reserves of over $100 billions and
a stable government has helped India to look more progressively towards future. The economic
development was largely attributed to its dominance in the Information Technology Sector in the

global market place and its large English speaking population that made it the ideal choice for
back office operations for MNCs world over. The manufacturing sector also provided its might
to the economic development by going global hitherto restricting to export of raw materials or
intermediaries that has not graduated to supply of end product be it Pharmaceuticals or
Consumer Vehicles. All this has translated in higher income levels and more surpluses for the
middle class segment that is getting ploughed into the retail sector; again fueling the economy to
higher levels. The last five years have seen the PPP of average Indian middle class (over 300
millions) go up several times unleashing the power of purchasing. The retail sector was the
greatest beneficiary. The need for a shopping experience combined with the convenience of
shopping for the upwardly mobile middle class has been on the major factors for retail boom in
India.

International Retail
Global retail sales are estimated to cross US$12 trillion in 2007.1 almost reflecting the growth in
the world economy, global retail sales grew strongly in the last five Years (2001-06) at an
average nominal growth of about 8 per cent per annum in dollar Terms (Table 2.1). This is in
contrast to near stagnant global retail sales during the previous five years, 1996-01. Grocery
dominates retail sales with a share of approximately 40 per cent which varies from about 30 per
cent in rich Japan to an average of 60 per cent in poor Africa. Retail sales through modern
formats have been rising faster than total retail sales; the share of modern retail has risen from
about 45 per cent in 1996 to over 52 per cent in 2006.

S
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O p p o r tu n itie s:

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reaa ts

GLOBAL RETAILING INDUSTRY

The latter half of the 20th Century, in both Europe and North America, has seen the emergence
of the supermarket as the dominant grocery retail form. The reasons why supermarkets have
come to dominate food retailing are not hard to find. The search for convenience in food
shopping and consumption, coupled to car ownership, led to the birth of the supermarket. As
incomes rose and shoppers sought both convenience and new tastes and stimulation,
supermarkets were able to expand the products offered. The invention of the bar code allowed a

store to manage thousands of items and their prices and led to 'just-in-time' store replenishment
and the ability to carry tens of thousands of individual items. Computer-operated depots and
logistical systems integrated store replenishment with consumer demand in a single electronic
system. The superstore was born.
On the Global Retail Stage, little has remained the same over the last decade. One of the few
similarities with today is that Wal-Mart was ranked the top retailer in the world then and it still
holds that distinction. Other than Wal-Marts dominance, theres little about todays environment
that looks like the mid-1990s. The global economy has changed, consumer demand has shifted,
and retailers operating systems today are infused with far more technology than was the case six
years ago.
Saturated home markets, fierce competition and restrictive legislation have relentlessly pushed
major food retailers into the globalization mode. Since the mid-1990s, numerous governments
have opened up their economies as well, to the free markets and foreign investment that has been
a plus for many a retailer. However, a more near-term concern, has been the global economic
slowdown that has resulted from dramatic cutback in corporate IT and other types of capital
spending. Consumers themselves have become much more price sensitive and conservative in
their buying, particularly in the more advanced economies.
From an operational point of view, active practitioners have voiced their opinion that retailer
concerns in 2003 have turned to deflation, lack of pricing power, global over-capacity, low
interest rates, economic stagnation, slump in world tourism and declining consumer confidence.
But, even before the global economic slowdown that forced retailers into monitoring costs more
effectively, technological advances were a way of life in retail organizations. Technology has
become the real enabler for retailers over the last six years. Supply chain innovations for retailers
were particularly strong in the second half of the 1990s and have continued into today. With all
the emphasis on technology and cost-cutting, a major thrust
The Far East Experience:
The Food Retail Industry in the Far East has evolved into what could be called the breeding
ground for emerging models with countries like Singapore being the home to some of the big
players in the industry in these parts of the world. The presence of all the major players of the
retailing industry is found in Singapore. Singapore has 2 hypermarkets, one run by Carrefour and

the other by Giant Hypermarket, part of Dairy Farm International. According to the government,
there are slightly more than 11,000 market stalls operating in 150 markets located all across
Singapore Island. The markets further spread to China, Thailand, and Malaysia thanks to the
major support that the local governments provided in creating the necessary regulatory
framework in establishing their presence. Singapore, Malaysia and Thailand not only fueled the
retail industry within the country, but also attracted hordes of tourists to experience the shopping
experiences that they created in these islands. The markets are now saturated with no
additional space for a new entrant and are expected to consolidate within the next few years.
Apart from Singapore, which is a more recent development, Japan enjoys an active spot on the
retailers map. The retail industry is as huge as US$ 1088 Billion, with a split of US$ 594.8
Billion in the non-food segment and US$ 493.2 Billion in the food-retailing sector. The leaders
in sales are Ito-Yokado, Aeon, Daiei, Takashimaya, and Uny, in that order. Several retailers,
however, have made recent improvements in their warehousing and distribution technologies to
make their presence felt in the Japanese market. Convenience stores, which are small and
suitable in a country where land is very expensive, continue to do well. Food, in fact, has been
one of the few sectors that have experienced growth over the last several years. A period of shake
up in the industry is likely now that Wal-Mart has entered Japan. Numerous smaller, less efficient
retailers may become takeover targets. The entire Japanese retail sector will likely undergo some
form of restructuring over the next decade as a result of overcapacity, dismal profits and the WalMart factor. In Mainland China, the retail markets have mushroomed over the years of intense
economic development to a very considerable size. The total volume of retail sales for consumer
goods and food increased by 10.6 percent in China over the last couple of years which shows
tremendous growth. Consumer spending has held strong. A decade ago, the top five retail
enterprises in China were all traditional merchandise companies, but now the top five are mainly
supermarkets and chain stores. The world is enamored with Chinas potential and opportunities.
But in medium-sized and small cities and rural areas, traditional retailing methods, such as
department stores and localretailing networks, will be sufficient, as consumption is lower. In
Indonesia, Wet markets and supermarkets remained the major distribution channels for food
products. Although these retail sub-sectors also offered non-food products, such as household
goods, food products remained dominant in terms of the number of items. Wet markets
distribution of food products tended to be much greater than non-food as these retail channels

mainly provided fresh produce. Conversely, supermarkets had an almost equal distribution, with
food taking up the greater proportion. On the other hand, the distribution of non-food products
benefited from both food and non-food retailers. For example, some food retail formats offered
non-food items, such as supermarkets, hypermarkets, and convenience stores. These retail outlets
provided some basic non-food products, such as toothpaste, soap, or detergent. However, nonfood retail outlets rarely provided food items, except certain department stores or druggists. In
Malaysia, a majority of food retailer outlets offer food and non-food items, with at least a 70:30
distribution. The traditional food distribution system in Thailand is through so-called 'wet
markets' which sell fruits, vegetables, meat and fish, together with small 'mom and pop' food
stores which distribute dry goods. However, the rapid growth of the economy, particularly during
the decade before the financial crisis began, has led to dramatic changes in the structure of the
food-retailing sector. Modern supermarkets, superstores, hypermarkets and convenience stores
developed at breakneck pace to service the growing middle class with their demand for more
sophisticated food stores and a greater variety of products many of which were imported.
Indian Retail: Past Vs Present
It is widely accepted that the retail industry has undergone a drastic change in last five years and
there is yet more to come. Let us compare the image of Indian retailing in 2004-05 to that of its
status in 2007-08 in the following table:
Magnification of the Indian Retail Industry
Yardstick
Value of retail sales

12 Situation in 04-05
Rs. 10,20,000 crore

Situation in 07-08
Rs 12,00,000 crore

Value of organized market

Rs 35,000 crore

Rs 55,000 crore

Share of organized market in

Over Rs. 1,00,000 crore

Rs. 2,00,000 crore

Annual growth rate

the sector

Forecasts (after 5 years)

about size of
organized retail market
Forecasts about growth rate

Around 30%

Around 40%

of organized retail
market

The above table clearly shows that the retail market as well as the mindset required for it has
experienced a thorough revisal in the last three years. This is just the beginning and Indians are
sanguine that the sector will see rosy days in the future. This confidence has helped India acquire
the No.1 position among 30 most attractive retailing destinations in the world according to the
Global Retail Development Index of 2005 (by AT Kearney, India). Among emerging markets, India
holds the second position after China in the list of most favored retail destinations.
The retail industry employs a huge share of the total workforce in India. It is the second largest
employer after India. Presently 7 percent of the total labor force is employed in the retail sector.
According to available data it is also the largest employer in the services sector and maximum
growth in the non-agricultural sector has been witnessed by retail trade. According to market
analysts 300 new malls, 1,500 supermarkets and 325 departmental stores are going to come up in
India in the next few days. The shopping revolution that has led to this retail boom is going to
continue and this is good news for the government as well as those who wish to work in the
organized sector.

Series 1
10
9
8
7
6
5
4
3
2
1
0
1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Source: central statistical organization (CSO)

Projections of 8% sustainable real GDP growth rate till 2020 promise high growth
potential for Indian Retail

CONTRIBUTION OF FDI IN RETAILING Permitting Foreign Direct Investment in the retailing sector can have immense benefits. It can
generate huge employment for the semi-skilled as well as illiterate population which otherwise
can't be employed in the already confined rural and organized sector. The retail sector is highly
dependent on the rural sector. Thus it can facilitate the improvement of the standard of living of
farmers by purchasing commodities at a reasonable cost. It also stems out an indirect
employment generation channel by training and employing people in the transportation and
distribution sectors such as drivers, mechanics etc. It is also evident that real estate is a genuine
challenge for organized retailing. Traditional retailers can use this situation in their favor by

taking franchisees of the mega players of this industry. On the other hand, the consumer gains
from the wide variety of choices and a more diversified basket of prices available less than one
roof. Secondly the indirect benefits like better roads, online marketing, expansion of telecom
sector etc. will give a 'big push' to other sectors including the rural one itself. Last but not the
least the huge tax revenue generated from these retail biggies and collected in government
coffers will gradually wipe out the ugly looking fiscal and revenue deficits. Besides the
transaction in foreign currencies by these MNCs will create a balance in exchange rate and will
bring in stable funds in the economy as opposed to FII's hot money. This will in turn act as a
boost to the developing (or 'transforming', as suggested by the USAID) economy of India. The
phobias relating to FDI in the retail sector are unfounded as neither the retailing sector in India is
an infant industry, nor it can outweigh the paramount local tastes and preferences.
Let's pray that the retail sector like the IT and manufacturing sector brings happiness in the eyes
of the people and help remove the regional and class-based disparities.

LEGAL ISSUES IN RETAIL SECTOR

Many countries especially in south east Asia like Malaysia, Indonesia and Thailand have put in
place tough regulations with a view to balance the conflicts of interests between modern retail
and the traditional retailers and suppliers to the modern retail. These countries have imposed a
number of restrictions on the growth of large retail companies particularly the transnational
companies as against fairly liberal approach to the retail sector practiced until the late 1990s.

In India in a bid to cushion small retailers from corporate giants, the Centre is in consultation
with states for setting up a retail regulator. As per the consolations among states, state level
legislative authorities would wield powers to grant licenses to retailers for operating business.
The regulators in coordination with the state governments would also demarcate zones in the
cities for setting hypermarkets. Moreover, the regulators would work in tow with competition
commission to oversee pricing of products so that small retailers do not fall prey to predatory
pricing. States would submit the final guidelines on the regulatory mechanism in 2 months to
Commerce & Industry ministry.
In fact, the proposal is part of the Icrier report on Big Versus small retail recently submitted to
the government. We have had several rounds of consultations with the state governments and
other ministries. We are now awaiting their comments on the report, a senior commerce
ministry official said. The policy framed by the government based on the report would also set
the ground for FDI in retail, which has been facing problems due to lack of consensus among
political parties.
The regulator would also look into real estate cornering by large retail chains to restrict
competitor access and complaints of muscling out smaller retailers by price undercutting.
All the following statutory provisions related to following acts are applicable to retail industry.
1) Shops & Establishment
2) PF & Misc.Provisions Act
3) ESI Act
4) Bonus Act
5) Minimum Wages Act
6) Industrial Disputes Act

7) Gratuity Act
8) Maternity Act
9) Welfare Act
As part of a big move to liberalize the foreign direct investment (FDI) regime, the Cabinet today
approved new FDI norms for several sectors including retailing. Retail presents the next big
opportunity (worth $250 billion) for the foreign investor. However, foreign direct investment in
the India retail sector is currently restricted. There are several methods pursuant to which a
foreign investor may gain exposure to the Indian retail sector:
(i) Pursuant to Press Note No. 3 (2006 series), foreign direct investment up to 51% is now
permitted in single brand retail trade with the prior approval of the government;
(ii) Pursuant to Press Note No. 4 (2006 series), foreign direct investment up to 100% is now
permitted under automatic route for cash and carry wholesale trade; or
(iii) The foreign investor could enter into franchise arrangements. LVMH is among the
international brands that have indicated interest in a 51% stake. However, multi-brand retail
stores such as Wal Mart are not yet permitted.

CURRENT ISSUES
The boom in Indias retail sector will continue and top $365 billion in 2008, against $300 billion
a year. With a year-on-year growth of 30-35 per cent, the retail trade sector in India will top $440
billion by 2010, says the study by the Associated Chambers of Commerce and Industry of India
(Assocham). The study estimated the organized retail segment would witness an additional
investment of $70 billion by 2010. In 2008, the investment size would be in the region of $25-28
billion.

 Mukesh Ambani, RILs chairman, plans to open 100m sq ft of retail space in India by
2010. Local press reports talk of between 5,000 and 10,000 stores spread across
1,500towns and cities. Ambani has described the concept as a pan-India footprint of
multi format retail outlets. Reliance will operate hypermarkets, convenience and
specialty stores, as well as business-to-business operations, selling food, clothing,
electrical goods, consumer durables, luxury goods and financial and travel services. The
project will employ 1m people within five years.
Protests against reliance fresh in UP and Jharkhand.
Chinese conglomerate Li & Fung Group said it is studying India's logistics and retail
sectors to expand its presence in the country. The company, engaged in distribution,
retail, logistics, private equity and properties businesses, currently sources consumer
products worth 550 million dollars from India every year for its global operations."We
will look at India for innovative designs and creativity. In the next three years we expect
to more than double our sourcing from this country," Li & Fung Group Chairman Victor
K Fung said today on the sidelines of a FICCI event.
Taxpayers, especially corporate in the retail sector who have to bear the burden of huge
rentals for commercial space, could get some relief soon. The government is considering
allowing taxpayers to deduct tax at source (TDS) on rents after reducing the total outgo
on service tax. North Block is examining a proposal in this regard after receiving
references from field formations, and a clarification may be issued shortly. To put it
simply, if a taxpayer pays Rs 100 as rent he is liable to pay service tax at the rate of 12%,
taking the total outgo to Rs 112. There was confusion as to whether TDS would be on Rs
100 or Rs 112. As the field formations were in dilemma, in some instances they had
demanded deduction of tax on the final amount of Rs 112. The confusion had arisen after

the government brought commercial rental service under tax net in the Budget for 200708.
Wal-Mart Store Inc. will open its first cash-and-carry centre in India in 2009, the head of
its India operations said on Wednesday. Wal-Mart, which has a venture with India's Bharti
Enterprises for cash-and-carry wholesale operations, had earlier said it aimed to open the
first of its centers by year-end and open 10-15 centers over seven years.

EMPLOYMENT IN RETAILING IS INCRAESING

Indian retail industry has always played an important role in improving the GDP growth rate and
lifestyle of the country. The industry which traditionally comprised on mom and pop stores
spread hither and thither is in the revolutionary phase in the present era. The way retailing is
done has come a long way with the emergence of organized or modern retail outlets. There are
big players like Big Bazaar, Spencers and Vishal Mega Mart to name a few who have changed
the face of retailing in India. These modern retail outlets have enormous financial and
technological support as compared to the traditional and unorganized retail outlets. An attempt is
made in this paper to study the evolving formats of modern retail and to know their impact on the
traditional distribution partners like retailers and distributors. The paper also delves into the
application of various supply chain management tools used by the modern retail outlets. The
study is conducted by using primary data analysis and case-study approach.

UNORGANIZED RETAIL

Contributes 96% to total Retailing in India

Typically small retailers.
Evasion of taxes
Difficulty in enforcing tax collection mechanisms
No monitoring of labor laws

ORGANIZED RETAIL

Contributes only 4% to total Retailing in India

Typically large retailers
Greater enforcement of taxation mechanisms
High level of labor usage monitoring

THE CHANGING INDIAN CONSUMER

Greater per capita income
Increase in disposable income of middle class households
20.9% growth in real disposable income in 99 -03.

GROWING HIGH AND MIDDDLE INCOME POPULATION

Growing at a pace of over 10% per annum over last decade

Falling interest rates
Easier consumer credit
Greater variety and quality at all price points

THE URBAN CONSUMERS

Getting exposed to international lifestyles

Inclined to acquiring asset
More discerning and demanding than ever
No longer need-based shopping
Shopping is a family experience

CHANGING MINDSET
Increasing tendency to spend
Post Liberalization children coming of age100 mn 17-21 year olds. Tend to spend freely.
Greater levels of education

Source: India Retail Report

Top players:
1. Pantaloon Retail:
It is headquartered in Mumbai with 450 stores across the country employing more than 18,000
people. It can boast of launching the first hypermarket Big Bazaar in India in 2001. An all-India
retail space of 5 million sq. ft. which is expected to reach 30 mn by 2010. It is not only the
largest retailer in India with a turnover of over Rs. 20 billion but is present across most retail
segments - Food & grocery (Big bazaar, Food bazaar), Home solutions (Hometown, furniture
bazaar, collection-i), consumer electronics (e-zone), shoes (shoe factory), Books: music & gifts

(Depot), Health & Beauty care services (Star, Sitara and Health village in the pipeline), e-tailing
(Futurbazaar.com), entertainment (Bowling co.)
One of their recent innovations include e-commerce hybrid format of small shops, the area for
these stores will be 150 sq. ft. fitted with 40 digital screens. Customers will be encouraged to
browse through the entire range of products on digital screen. They will be able to place the
order, the delivery of which will be arranged by the shop to their homes within a few hours

2. K Raheja Group
They forayed into retail with Shoppers Stop, Indias first departmental store in 2001. It is the
only retailer from India to become a member of the prestigious Intercontinental Group of
Departmental Stores (IGDS). They have signed a 50:50 joint venture with the Nuance Group for
Airport Retailing. Shoppers Stop has 7, 52, 00 sq ft of retail space with a turnover of Rs 6.75
billion.
The first Hypercity opened in Mumbai in 2006 with an area of 1, 20,000 sq. ft. clocking gross
sales of Rs. 1 bn in its first year.
Crossword brand of book stores, Homes stop a store for home solutions, Mothercare a concept
stocking merchandise related to childcare are also owned by them. Recently, Rahejas have
signed an MoU with the Home Retail Group of UK to enter into a franchise arrangement for the
Argos formats of catalogue & internet retailing.
The group has announced plans to establish a network of 55 hypermarkets across India with sales
expected to cross the US$100 million mark by 2010.

3. Tata group:
Established in 1998, Trent - one of the subsidiaries of Tata Group - operates Westside, a lifestyle
retail chain and Star India Bazaar - a hypermarket with a large assortment of products at the
lowest prices. In 2005, it acquired Landmark, India's largest book and music retailer. Trent has
more than 4 lakh sq. ft. space across the country. Westside registered a turnover of Rs 3.58 mn in
2006.
Tatas has also formed a subsidiary named Infiniti retail which consists of Croma, a consumer
electronics chain. It is a 15000-17000 sq. ft. format with 8 stores as of September 2007.
Another subsidiary, Titan Industries, owns brands like Titan, the watch of India has 200
exclusive outlets the country and Tanishq, the jewellery brand, has 87 exclusive outlets. Their
combined turnover is Rs 6.55 billion.
Trent plans to open 27 more stores across its retail formats adding 1.5 mn sq ft of space in the
next 12 DLF malls.

4. RPG group:
One of the first entrants into organised food & grocery retail with Foodworld stores in 1996 and
then formed an alliance with Dairy farm International and launched health & glow (pharmacy &
beauty care) outlets. Now the alliance has dissolved and RPG has Spencers Hyper, Super, Daily
and Express formats and Music World stores across the country.
RPG has 6 lakh sq. ft. of retail space and has registered a turnover of Rs 4.5 billion in 2006.

It is planning to venture into books retail, with the launch of its own bookstores Books and
Beyond by the end of 2007. An IPO is also in the offering, with expansion to 450+ MusicWorld,
50+ Spencer's hyper outlets covering 4 million sq. ft. by 2010.
5. Landmark group:

Were launched in 1998 in India. Lifestyle is spread across six cities, covering 4.6 lakh sq. ft. with
a turnover of Rs 3.5 billion in 2005. A new division named Lifestyle International has emerged
for their international brands business comprising Bossino, Kappa and Springfield in their
portfolio.
Their retail mix includes Home solutions (Home centre), fashion (lifestyle, landmark
International), value retailing (max retail), hypermarkets & supermarkets (Max), kids
entertainment (Funcity).
They plan to invest Rs. 300 crores in the next two years to expand on Max chain, and Rs 100
crores on Citymax 3 star hotel chain. They have already instituted a separate company christened
Citymax Hotels (India).

6. Piramal Group
In September 1999, Piramal Enterprises announced their arrival into retail with the launch of
three retail concepts: India's first true shopping mall of international standards, called
Crossroads; a lifestyle department store named Piramyd Megastore; and a family entertainment
centre known as Jammin. Piramyd Megastore and Jammin were anchor tenants for Crossroads

(recently sold to Pantaloon for Rs 4 billion). In 2001, the group entered the business of food &
grocery retail with the launch of TruMart supermarkets in Pune.
They have around 18 TruMart stores covering 1.90 lakh sq. ft. registering a turnover of Rs 37.6
mn in 2005. Piraymd Megatsores contributes more than 70 % to their retail mix with a turnover
of Rs 112.8 mn. They plan to open 150 stores covering 75 mn sq ft of retail space in the next 5
years.

7. Subhiksha
Subhiksha is a Chennai-based, decade old, no frills, food, grocery, pharma and telecom, discount
retail chain. ICICI Venture Capital holds 24% in the equity capital of Subhiksha. It has more than
500 stores across the country covering a retail space of more than 1 million sq ft with a registered
turnover of Rs 3.34 bn in 2006. It has a planned investment of Rs.300 crores to ramp up its
operations to 1200 stores by 2008.
New but potential BIG players

8. Bharti-Walmart
Their plans include US$ 7 bn investment in creating retail network in the country including 100
hypermarkets and several hundred small stores. They have signed a 50:50 percent joint venture
agreement with Walmart. Wal-Mart will do the cash & carry while Bharti will do the front-end.

9. Reliance

Indias most ambitious retail plans are by reliance, with investments to the tune of Rs. 30,000 cr
($ 6.67 bn) to set up multiple formats with expected sales of Rs 90,000 crores ($20 bn) by 200910.
There are already more than 300 Reliance Fresh stores and the first Reliance Mart Hypermart has
opened in Ahmedabad. The next ones are slated to open at Jamnagar, followed by marts in
Delhi / NCR, Hyderabad, Vijaywada, Pune and Ludhiana.
10. AV Birla Group

They have a strong presence in apparel retailing through Madura garments which is subsidiary of
Aditya Birla Nuvo Ltd. They own brands like Louis Phillipe, Van Heusen, Allen Solly, Peter
England, Trouser town.
In other segments of retail, AV Birla Group has announced investment plans of Rs 8000 - 9000
crores in the first 3 years till 2010.
The acquisition of Trinethra (food & grocery) chain in the south has moved their tally to 400
stores in the country. Their More range of 15 supermarkets are slated to open at Nashik, Pune
and other tier II cities in Western India in 2007

RESEARCH
METHODOLOGY

RESEARCH OBJECTIVE
Whenever any research is carried out, there is always an objective attached to it. This
objective serves to be the purpose of the study.
1. To assess the level of satisfaction among employees for their job.

2. To find the level of supervision provided to the employees.

3. To know employees satisfaction about welfare facilities provided to them.
4. To analyze the level of cooperation among the similar levels of employees and also the
cooperation among the different levels of employees.
5. To analyze satisfaction of employees about their salary and perks.
6. To identify the factors which influence the job satisfaction of employees
7. To study the welfare and safety measures which are provided by the company
8. To identify the monetary / non monetary benefits employee get in the organization .
9. To analyze the companys working environment.
10. To find that employees are satisfied with their job profile or not.
11. To find out the deficiencies in co. policies affecting the employee this in turn affects the
co. profitability.

RESEARCH DESIGN
A research design is the arrangement of conditions for collection and analysis of data in a manner that
aims to combine relevance to the research purpose with economy in procedure. It is a well constructed
framework used by the researcher to carry out his research work in a well organized and sequential
manner.
The research design is a blue print for the collection measurement and analysis of data or it may said to
be the conceptual structure within which the research is conducted.
The study is being done with an aim to analyze the job satisfaction among the employees for the
existing Personnel Policies in retail organization. The study was moreover oriented to have an idea of

the motivational level of employee and scope of employee development. To conduct the research
project both Primary and Secondary data was used.
This is the following manner of research design:

A research plan was developed different departments existing in organization were

considered

Sample of employees was chosen from each department, the sample represented the
population.

A well framed questionnaire was prepared to satisfy the objective of research and to extract
maximum useful information.

The questionnaire was presented to the employees and that was followed by face to face
interview.

The data collected by the above method was analyzed statistically.

Suggestions and recommendations were formulated based on those research findings.

RESEARCH PROBLEM
Employee satisfaction is the terminology used to describe whether employees are happy and
contented and fulfilling their desires and needs at work. Many measures purport that employee
satisfaction is a factor in employee motivation, employee goal achievement, and positive
employee morale in the workplace.
The research was carried out to analyze the job satisfaction among the employees of retail sector.
The following are the methods and techniques used to carry out the research and to fulfill the
research objectives.

RESEARCH DESIGN
The research conducted was an EXPLORATORY research. The exploratory research is used to
explore or find out and gather data to solve the desired research problem.
The present project is Descriptive in nature, the data based on facts collected with the help of the
tools and presented in the form of pie chart and bar-charts, and percentages, describing present
status of the appraisal technique adopted by the organization.

TYPE OF DATA USED

PRIMARY DATA; the primary required data was collected from interviewing the
hawkers, kiranas shopkeeper and to the employees. Thus for collecting the information
for my study I also got field the questionnaire from them and approaches directly to the
outlets.
Interviewing the customers
Interviewing the kiranas shopkeepers
SECONDERY DETA;- Secondary data means data that are already available I.e. it
refers to the data which have already being closed and analyzed by someone else . The
secondary data collection for my research report. I collected the information from the
trade journals, newspaper, magazines and books.

DATA COLLECTION METHOD

Questionnaire Method
A Questionnaire consist of a number questions printed or typed in a definite order on a form or
set of forms, the respondents have to answer the question on their own. Quit often the
questionnaire is considered as the heart of a survey operation. Hence, it should be very carefully
cons traced. If it is not properly setup, then the survey is bound of fail. This fact requires us to
study the aspects of a questionnaire viz, the general form, question sequence and question
formation and wording.
Closed- Ended Questions

Such question are also called fixed alternative question. They refer to those question in which the
respondent are given a limited number of alternative respondents for which she or he has to
selected the one that most closely matches his opinion or attitude.
Open -Ended Questions
Sometime these questions are called free answer question as the name implies, this refer to a
question that has no fixed alternative to which the answer must conform the responders answers
in his/ her own words.

SAMPLE SIZE
The people who were approached for the research study were the working employees of retail
organization and they constitute the sampling unit. Due to various limitations like time, economy
the sample size was kept 100
Sample size : 100 employees(Engineers, Supervisors, and operators)

UNIVERSE
The type of universe selected in sampling plan of research survey is finite universe for higher
accuracy, higher economy and minimizing the time to be involved

SAMPLING TECHNIQUE
The sampling technique used in this project was Stratified Random Sampling.
In this method the sample is designed in a way that the designated number of items is
Chosen from each group. In this particular project the population is divided in to homogeneous
groups or strata and from each stratum random sample is drawn. Here retail as an organization is
divided in to various departments or stratum from which samples have been drawn. In this way
stratified random sampling method tries to give the representative sample of all the employees
working in retail companies.

DATA ANALYSIS TOOL

The analysis of the responses to the questions written in the well prepared questionnaire has been
done and it has been represented statistically by a pie chart and bar chart.

DATA PRESENTATION
Interpretation of data was done by undergoing various processes which are like Editing, Coding,
Classification and Tabulation.

ANALYSIS

AND
INTERPRETATION

1. Your role in your organization

Response category Frequency
Vital Role

38

Not up to mark

16

Minimum

40

Nil

Total

100

Frequency
45
40
35
30
Frequency

25
20
15
10
5
0
Vital Role

Not up to mark

Minimum

Nil

INTERPRETATION:
According to survey out of 100 respondents are says that 38% feel that they have vital role in the
organization, 16% feel that their role in the organization is not up to mark, 40% feel that their role is
minimum and 6% feel they dont play any role in the organization.

2. Are you satisfied with your job profile?

Response category

Yes

No

Total

frequency

67

33

100

Job Profile Satisfaction Level

33%
Yes
67%

N0

INTERPRETATION:
According to survey out of 100 respondents are says that 67% are satisfied with their job profile and 33%
are not satisfied with their job profile.

3. What is the reason of satisfaction or dissatisfaction

factors

Motivation

Work Load

Fulfillments

Over Time

Total

Frequency

36

18

38

100

Frequency
40
35
30
Frequency

25
20
15
10
5
0

Motivation

Work Load

Fulfillments

Over Time

INTERPRETATION:
According to survey out of 100 respondents are says that reason for dissatisfaction of 18% employees is
workload, 8%is over time work. The reason for satisfaction in 36% employees is motivation by the
management or superior and for rest of 38% are fulfillments of their need. Hence 74% employees are
satisfied

4.

factors

Salary

Frequency

20

Working
Condition
20

Job Function

any Other

Total

46

14

100

According to you whom to give the first preference from the following

50

46

45
40
35
30
25
20

20

20
14

15
10
5
0

Salary

Working Condition

Job Function

Any Other

Frequency

INTERPRETATION:
According to survey out of 100 respondents are says that 20% are give first preference to
the salary, 20% are give first preference to working condition, 46% are give first preference to
job function and 14% are give first preference to any other. Hence 46% are give first preference
to job function is highest.

5. What are selection criteria for all the levels of management

factors
Frequency

Work
Experience
52

Knowledge

Age

Education

Total

32

10

100

selection criteria

Education; 10%
Age; 6%

Work Experience; 52%

Knowledge; 32%

INTERPRETATION:
According to survey out of 100 respondents 52% are says that selection criteria for all the levels of
management is work experience , 32% says that its knowledge of the candidate, 6% says that it is age ,
and rest of 10% says that selection is based on the educational background of the candidate.

6. The organization provides promotion on the basis of :

factors

Performance

Seniority

Favoritism

Frequency

39

19

21

Seniority &
Performance
21

Total
100

Promotion Basis
45
40
35
30
25
20
15
10
5
0

Pe
rfo
rm
an
ce

Se
ni
or
ity

&

Fa
vo
rit
is
m

Se
ni
or
ity

Pe
rfo
rm

an
ce

Frequency

INTERPRETATION:
According to survey out of 100 respondents 39%are says that organization provides promotion on the
basis of performance of the employee,19 % are says that it is on the basis of seniority, 21% feels that it is
on the basis of favoritism, and rest of the 21% employees say that it is on the basis of both seniority and
performance.

7. Safety and security is given highest priority in your organization

Strongly
agree

Agree

Neither agree/Nor
disagree

Disagree

Strongly
disagree

Total

12

23

45

14

100

Safety-Highest Priority
50
45
40
35
30
25
20
15
10
5
0
di
sa
gr
ee

St
ro
ng
ly

D
is
ag
re
e

ei
th
er

ag
re
e/
N

or
di
sa
gr
ee

Ag
re
e

St
ro
ng
ly

ag
re
e

Frequency

INTERPRETATION:
According to survey out of 100 respondents 12 % strongly agree that safety and security is given highest
priority , 23% are agree, 45% are neither agree nor disagree, 14% are disagree that safety and security is
given highest priority in the organization and rest of 14% highly disagree .

8. . Are you satisfied with the welfare facilities provided you in your organization:

Response Category
Yes
No
Total

Response
75
25
100

Satisfaction Level with welfare facilities

80
70
60
50

Frequency

40
30
20
10
0

Yes

No

INTERPRETATION:
According to survey out of 100 respondents are says that 75% are satisfied with the welfare facilities
provided by the organization and, 25% are not satisfied.

9. . Organization is working towards its employee welfare

Strongly agree Agree

68

20

Neither agree/Nor
disagree
5

Disagree Strongly
disagree

Total

100

Employee Welfare

Strongly agree

2%
7% 5%

Agree
Neither agree/Nor disagree

20%
67%

Disagree
Strongly disagree

INTERPRETATION:
According to survey out of 100 respondents 68 % strongly agree that organization is working toward
employees welfare, 20% are agree, 5% are neither agree nor disagree, 5% are disagree that organization is
working towards employees welfare and rest of 2% highly disagree .

10. Financial and non financial benefits are must for an employee for his dedicated work, are you
catered with the same?

Yes

74

No

26

Financial and non financial benefits

26%

Yes
No
74%

INTERPRETATION:
According to survey out of 100 respondents 74% says that they are catered with financial and non
financial benefits to motivate then to work dedicatedly and rest of 26% are not agree about it.

11. What monetary / non monetary benefits do you get in your organization?

Response Category

Frequency

Incentives / Rewards

28

Festival Allowances

18

Promotions

31

Support of Management in case of problem

16

Others

Monetary / Non Monetary Benefits

35
30
25
Frequency

20
15
10
5
0
Incentives / Rewards

Promotions

Others

Interpretation:
In the survey conducted by me, I have found that 28% employees said that they get Incentives / Rewards
as monetary / non monetary benefits from their organization, 18% said Festival Allowances, 30% said
Promotions, 16 % said Support of Management in case of problem, and 7% said other types of benefits.

12. Are you satisfied with the level of job security of your organization
Satisfied
90

Average
10

Not Satisfied
0

Total
100

Frequency

10%

4%
Satisfied
Average
Not Satisfied

86%

INTERPRETATION:
According to survey out of 100 respondents 90% satisfied with the level of job security, 10% says that
their satisfaction level is average, and no one among the all respondents is dissatisfied.

13. As an employee of this organization, are you satisfied with the basic working conditions
provided by the organization?

Yes

82

No

18

Satisfaction level with basic working conditions

18%
Yes
No

82%

INTERPRETATION:
According to survey out of 100 respondents 82% says that they are satisfied with the basic working

conditions provided by the organization and rest of 18% are not satisfied with the basic working
conditions provided by the organization.

14.

Do you feel that you get proper coordination from your colleagues?

Response Category

Frequency

Yes

84

No

Sometimes

13

Total

100

Frequency
90
80
70
60
Frequency

50
40
30
20
10
0
Yes

Interpretation:

No

Sometimes

In the survey conducted by me, I have found that 84% employees get proper coordination from their
colleague, 3% employees said that they dont get, and 13% employees said that they sometimes get.

15. The supervision provided to you is :

Response Category
Up to mark
Below the level
Various from time to time
Total

response
49
19
32
100

Supervision

Up to mark

32%

Below the level

49%

Various from time to time

19%

INTERPRETATION:
According to survey out of 100 respondents 49 says that the supervision provided to them is up to

mark, 19% says that the supervision provided to them is below the level and 32% says that they get
supervision from various superiors from time to time.

16. Do you think most of the time you are loaded by the work?
Response Category
Always
Sometimes
Whenever required
Total

Response
53
21
26
100

Work Load

Always

26%

Sometimes
53%

Whenever Required

21%

INTERPRETATION:
According to survey out of 100 respondents 53% says that they are always loaded with time work, 21%
says that they only sometimes loaded with time work and rest of the 26% respondent says that they are
loaded with time work only when required.

Yes
No
Total

84
16
100

17. Do you receive appropriate Praise and Recognition for your contributions?

Praise and Recognition for contributions

90
80
70
60
50
40
30
20
10
0

frequency

Yes

No

INTERPRETATION:
According to survey out of 100 respondents 84% says that they receive appropriate Praise and
Recognition for their contributions, 16% do not receive appropriate Praise and Recognition for their
contributions.

18. Do you feel that promotion system is fair and based on your performance?

Strongly agree

Agree

Neither agree/Nor disagree

Disagree

Strongly disagree

56

23

10

Fair Promotion System

9%

Strongly agree

5%

Agree

4%

Neither agree/Nor disagree

Disagree

24%

57%

Strongly disagree

INTERPRETATION:
According to survey out of 100 respondents 56% are strongly agree that promotion system is fair and
based on their performance, 23% are agree, 5% are neither agree nor disagree that promotion system is
fair and based on their performance, 10% are disagree with the promotion system and rest of 6% are
strongly disagree that promotion system is fair and based on their performance

19. To increase the performance of the employees regular training is provided

Strongly agree

Agree

Neither
agree/Nor
disagree

Disagree

Strongly disagree

56

32

employees regular training

60
50
40
30
20
10
0
di
sa
gr
ee

St
ro
ng
ly

D
is
ag
re
e

ei
th
er

ag
re
e/
N

or
di
sa
gr
ee

Ag
re
e

St
ro
ng
ly

ag
re
e

Frequency

INTERPRETATION:
According to survey out of 100 respondents 56% are strongly agree that to increase the performance of

the employees regular training is provided to them , 32% are agree, 9% are neither agree nor
disagree, 10% are disagree with the regular training facilities and rest of 6% are strongly disagree that to

increase the performance of the employees regular training is provided to them.

20. What is your opinion about the grievance handling procedure?

Very good

Good

Average

Satisfactory

Bad

18

36

34

grievance handling procedure

40
35
30
25

Frequency

20
15
10
5
0
Very good

Good

Average

Satisfactory

Bad

INTERPRETATION
According to survey out of 100 respondents 18% feels that grievance handling procedure is very good

in their organization, 36% feels that it is good, 34% feels that it is average and 8% feels that
grievance handling procedure satisfactory and the rest of 5% respondents feels that it is bad.

21. What is your opinion about intensity of disciplinary action in the organization?
High

Medium

Low

19

54

27

Intensity of disciplinary action

60
50
40
Frequency
30
20
10
0

High

Medium

Low

INTERPRETATION:
According to survey out of 100 respondents 19% says that intensity of disciplinary action in the

organization is high, 54% says that it is medium and rest of 27% respondents feels that intensity
of disciplinary action in the organization is quite low.

22. All the welfare measures provided to the employees have increased productivity

Strongly agree

Agree

Neither
agree/Nor
disagree

Disagree

Strongly disagree

55

30

welfare measures for employees increases productivity

60
50
40
30
20

frequency

10

di
sa
gr
ee

St
ro
ng
ly

D
is
ag
re
e

ei
th
er

ag
re
e/
N

or
di
sa
gr
ee

Ag
re
e

St
ro
ng
ly

ag
re
e

INTERPRETATION:
According to survey out of 100 respondents 55% are strongly agree that all the welfare measures are

provided to the employees have increased productivity, 30% are agree whereas 8% are neither

agree nor disagree and 4% are disagree that they are provided with all the welfare to increased
productivity and rest of the 3% respondent are strongly disagree.

23. Are you satisfied with appraisal system of your organization?

Response Yes
Frequency 78

No
22

Total
100

No; 22

Yes; 78

INTERPRETATION:
According to survey out of 100 respondents 78% are satisfied with appraisal system of their

organization and rest of 22% is not satisfied with appraisal system of the organization.

CONCLUSION
According to the studies conducted in Retail Sector by me which aimed to find the level of job
satisfaction in employees and the conclusions have been made. There exists a sound human
resource environment in the organization, however a few shortcomings may be there but it can
be said on the basis of the dedicated employees that Retail Sector has a bright future in the
coming years.
The management of the retail outlet was very good, very cordial, and very cooperative.
The HR department always takes care of all the activities been taken place in the whole
of the retail outlet
The head of the department very sincerely takes care about the needs, benefits and
security of the employees.
The organization has a very good HRD policy for the development of their employee
who gives them security, relaxation and other benefits and facilities to them.
The organization provides incentives / rewards, festival allowances, promotions, &
support to the employees for their job satisfaction and development.
They often feel overworked
Most of the employees think that the organization hasnt fulfilled their promises, what
they do in beginning especially regarding Promotion.
Concluding the research on Employees job satisfaction of retail outlet, it can be said that a
thorough interaction with the employees helped us in the collection of the data which we

required to analyze the job satisfaction of the employees of retail outlet. While collecting the data
we also observed the employees, the way they respond to us, their alertness, sincerity towards
work, their behavior with the outsiders and each other, their attitude towards their retail outlets &
customers. These were the main criteria to evaluate their job satisfaction, on the basis of these
data we were able to make the conclusion.

FINDINGS
According to 38% feel that they have vital role in the organization, 16% feel that their role in the
organization is not up to mark, according to 40% their role is minimum and 6% feel that they
dont play any role in the organization.
67% are satisfied with their job profile and 33% are not satisfied with their job profile.
18% says that reason for dissatisfaction of employees is workload, 8%is over time work. The
reason for satisfaction in 36% employees is motivation and according to 38% satisfaction is due
to fulfillments of their need. Hence 74% employees are satisfied
According to 20% are give first preference to the salary, 20% are give first preference to

working condition, 46% are give first preference to job function and 14% are give first
preference to any other.
52% says that selection criteria for all the levels of management is work experience , 32% says
that its knowledge of the candidate, 6% says that it is age , and rest of 10% says that selection is
based on the educational background of the candidate.
39%are says that organization provides promotion on the basis of performance of the
employee,19 % are says that it is on the basis of seniority, 21% feels that it is on the basis of
favoritism, and rest of the 21% employees say that it is on the basis of both seniority and
performance.
12 % strongly agree that safety and security is given highest priority , 23% are agree, 45% are
neither agree nor disagree, 14% are disagree that safety and security is given highest priority in
the organization and rest of 14% highly disagree .
75% are satisfied with the welfare facilities provided by the organization and, 25% are not
satisfied

 68 % strongly agree that organization is working toward employees welfare, 20% are agree, 5%
are neither agree nor disagree, 5% are disagree that organization is working towards employees
welfare and rest of 2% highly disagree .
74% says that they are catered with financial and non financial benefits to motivate then to work
dedicatedly and rest of 26% are not agree about it.
28% employees said that they get Incentives / Rewards as monetary / non monetary benefits from
their organization, 18% said Festival Allowances, 30% said Promotions, 16 % said Support of
Management in case of problem, and 7% said other types of benefits
90% satisfied with the level of job security,10% says that their satisfaction level is average, and
no one among the all respondents is dissatisfied.
82% says that they are satisfied with the basic working conditions provided by the

organization and rest of 18% is not satisfied with the basic working conditions provided by
the organization.
In the survey conducted by me, I have found that 84% employees get proper coordination from
their colleague, 3% employees said that they dont get, and 13% employees said that they
sometimes get.
49 say that the supervision provided to them is up to mark, 19% says that the supervision

provided to them is below the level and 32% says that they get supervision from various
superiors from time to time.
53% says that they are always loaded with time work, 21% says that they only sometimes loaded
with time work and rest of the 26% respondent says that they are loaded with time work only
when required.
84% says that they receive appropriate Praise and Recognition for their contributions, 16% do not
receive appropriate Praise and Recognition for their contributions.
56% are strongly agree that promotion system is fair and based on their performance, 23% are
agree, 5% are neither agree nor disagree that promotion system is fair and based on their
performance, 10% are disagree with the promotion system and rest of 6% are strongly disagree
that promotion system is fair and based on their performance
56% are strongly agree that to increase the performance of the employees regular training

is provided to them, 32% are agree, 9% are neither agree nor disagree, 10% are disagree with
the regular training facilities and rest of 6% are strongly disagree that to increase the

performance of the employees regular training is provided to them.

18% feels that grievance handling procedure is very good in their organization, 36% feels
that it is good, 34% feels that it is average and 8% feels that grievance handling
procedure satisfactory and the rest of 5% respondents feels that it is bad.

 19% says that intensity of disciplinary action in the organization is high, 54% says that it is

medium and rest of 27% respondents feels that intensity of disciplinary action in the
organization is quite low.
55% are strongly agree that all the welfare measures are provided to the employees have
increased productivity, 30% are agree whereas 8% are neither agree nor disagree and 4%
are disagree that they are provided with all the welfare to increased productivity and rest
of the 3% respondent are strongly disagree.
78% are satisfied with appraisal system of their organization and rest of 22% is not satisfied
with appraisal system of the organization.

RECOMMENDATIONS
During my research works analysis I was very keen to find some key areas which need to be
considered seriously in the future on this occasion. The study brought to light that there exist in
a good work climate in retail companies.
I would therefore like to present some findings which will help the company to enlighten its
future .these points are highly important to be considered to bring about high job satisfaction
among the employees in retail companies.
1. Providing more promotional opportunities to employees
Many of the less popular organizations in India actually do not offer the promotional
opportunities to the deserving employees this problem have to be seriously considered for
better job conditions. The organization should have a better provision for the promotion
of the employees of retail outlet.
Use employee empowerment and involvement to solicit employee ideas and to engage
employees.
2. Better salary structure
The better the salary structure of an organization, the higher would be the satisfaction
among the employees which in turn ensures lower employee turnover rate and higher job
satisfaction. The organization should give privilege to the salary and level offered to the
employees of retail outlet.
To increase the job satisfaction level of the employees the company should concentrate mainly on
the incentive and reward structure rather than the motivational session.

3. Congenial work atmosphere

 The environment of the organization should be congenial and stress free. Better
infrastructure and other facilities should be provided so that the employees can perform
better.
Hold quarterly all-hands meetings to keep employees informed.
4. Proper recognition
The organization should recognize the good work done by their employees time to time
so as to motivate them and encourage them. Monetary and non monetary incentives
should be there.
5. CORDIAL RELATIONSHIP WITH PEERS AND SUPERVISORS

The organization should pay proper attention towards this aspect because if an employee
has a good peer group and a supportive supervisor, it creates a better environment to
work at and he is satisfied which in turn results in a higher productivity.

6. HIGHER EMPHASIS TO BE GIVEN TO CAREER DEVELOPMENT PALNS

For a better job satisfaction to be there the organization must focus on the career
development plans of its employees. It should make provisions for time to time training
and development programs in relation to adoption the modern techniques. This would
help the employee to adapt better working skills and also increase his overall knowledge.
To help the business succeed. Make sure that each employee has a training and
development plan that is updated on an annual basis.

Provide ongoing feedback and recognition.

The organization should provide a better platform for those seeking jobs by helping them
and locating the job opportunities and attracting them for employment in the retail outlet.

LIMITATIONS
Every study has some limitation in itself. No report is perfect every researcher finds some or the
other problem. If these limitations would not have been there the research could have reached the
perfection level. However best possible efforts have been made to overcome these limitations but
it is wise to point out instead of glossing over them. The limitations of the study are:

Limitations of the respondents:

Most of the respondents were quite busy so they could not give proper time.
Some of the respondents were reluctant and showed indifferent attitude.

Sometimes due to the personal biasness of the respondent some answers were answered
incorrectly. The some retailers of the organized outlets are biased in providing the data.

Limitations of the sample:

I was able to cover malls in Kanpur only due time restrictions and wide area.
The sample size is not so big so as to determine the actual results and conclusion.

Limitations of time:
The delay in giving the answers by the respondents caused delay in completing the research
work. There was delay in collecting the secondary data from the internet.

Limitations of the researcher:

The researcher himself/herself may have various limitations .Some the highest accuracy level
may not be reached due to these limitations however these limitations are very minor.

Other limitations:
Other limitations such lack of proper resources, lack of proper economy, lack time etc may be
there which cause a hindrance in reaching the highest accuracy level.

BIBLIOGRAPHY
WEBSITES:
1.

www.google.com

2.

www.sahara.in

BOOKS:
1. Kothari C.R., Research Methodology, New Delhi; New Age International Publication, second

edition.
2. Ashwathapa K., Human Resource Management (third edition), Tata Mc Graw Hill Publication
Company Ltd. Page no. 81-136,171,179,267,284.
3. Chhabra. , T. N. Human Resource Management, Dhanpat Rai $ Co (P) Ltd. India, ninth
edition.
4. Monnapa Arun, Human Resource Management, Tata Mc Graw Hill Publication Company Ltd

Salary

Working
Condition

Motivation

Work Load

Job Function

any Other
Questionnaire

Fulfillments

Over Time

Name:
Age:
Department

Organization
1. Your role in your organization
Vital Role

Up to mark

Minimum

Nil

2. Are you satisfied with your job profile?

Yes

No

3. What is the reason of satisfaction or dissatisfaction

4. According to you whom to give the first preference from the following

5. What are selection criteria for all the levels of management

6. The organization provides promotion on the basis of :

7. Safety and security is given highest priority in your organization

Work
Knowledge
Experience
Strongly
Agree
agree

Age
Education
Neither agree/Nor
Disagree
disagree

Performance

Favoritism

Seniority

Strongly
disagree

Seniority &
Performance
8.

Are you satisfied with the

welfare facilities provided you in your organization:

Yes

No

9. Organization is working towards its employee welfare

Strongly
agree

Agree

Neither agree/Nor Disagree Strongly

disagree
disagree

10. Financial and non financial benefits are must for an employee for his dedicated work, are you
catered with the same?

Yes

No

11. What monetary / non monetary benefits do you get in your organization?
Promotions
Incentives /

Festival

Rewards

Support of Management in
case of problem

Others

Allowances

12. Are you satisfied with the level of job security of your organization
Satisfied

Average

Not Satisfied

13. As an employee of this organization, are you satisfied with the basic working conditions
provided by the organization?

Yes

No

14. Do you feel that you get proper coordination from your colleagues?
Yes

No

Sometime
s

15. The supervision provided to you is :

Up to mark

Various from time to time

Below the level

14. Do you think most of the time you are loaded by the work?
Always

Sometimes

Whenever required

15. Do you receive appropriate Praise and Recognition for your contributions?

No

Yes

16. Do you feel that promotion system is fair and based on your performance?

Strongly agree

Agree

Neither agree/Nor disagree

Disagree

Strongly disagree

17. To increase the performance of the employees regular training is provided

Strongly agree

Agree

Neither agree/Nor disagree

Disagree

Strongly disagree

18. What is your opinion about the grievance handling procedure?

Very good

Good

Average

Satisfactory

Bad

19. What is your opinion about intensity of disciplinary action in the organization?
High

Medium

Low

20. All the welfare measures provided to the employees have increased productivity

Strongly agree

Agree

Neither
agree/Nor
disagree

Disagree

21. Are you satisfied with appraisal system of your organization?

Strongly disagree

Yes

No