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INTERIM REPORT 2010-2012

TOPIC: A STUDY ON JOB SATISFACTION AND ITS CONSEQUENCES ON EMPLOYEES IN AVIVA INSURANCE LTD.

Submitted by Ranjusha Antony Submitted to Bindu mam Submitted on 23-6-2011

INTRODUCTION TO THE STUDY

INTRODUCTION TO THE SUBJECT

Human resources are the most valuable and unique assets of an organization. The successful management of an organization's human resources is an exciting, dynamic and challenging task, especially at a time when the world has become a global village and economies are in a state of flux. The scarcity of talented resources and the growing expectations of the modern day worker have further increased the complexity of the human resource function. Even though specific human resource functions/activities are the responsibility of the human resource department, the actual management of human resources is the responsibility of all the managers in an organization. The human resources of an organization consist of all people who perform its activities. Human resource management (HRM) is concerned with the personnel policies and managerial practices and systems that influence the workforce. In broader terms, all decisions that affect the workforce of the organization concern the HRM function. The human resources of an organization consist of all people who perform its activities. Human resource management (HRM) is concerned with the personnel policies and managerial practices and systems that influence the workforce. In broader terms, all decisions that affect the workforce of the organization concern the HRM function. The activities involved in HRM function are pervasive throughout the organization. Line managers, typically spend more than 50 percent of their time for human resource activities such hiring, evaluating, disciplining, and scheduling employees. Human resource management specialists in the HRM department help organizations with all activities related to staffing and maintaining an effective workforce. Major HRM responsibilities include work design and job analysis, training and development, recruiting, compensation, team-building, performance management and appraisal, worker health and safety issues, as well as identifying or developing valid methods for selecting staff. HRM department provides the tools, data and processes that are used by line managers in their human resource management component of their job.

JOB SATISFACTION

Job satisfaction is another important technique used to motivate the employees to work harder. In simple words, job satisfaction can be defined as the extent of positive feelings or attitudes that individuals have towards their jobs. When a person says that he has high job satisfaction, it means that he really likes his job, feels good about it and values his job highly. Job satisfaction is in regard to one's feelings or state-of-mind regarding the nature of their work. Job satisfaction can be influenced by a variety of factors, eg, the quality of one's relationship with their supervisor, the quality of the physical environment in which they work, degree of fulfillment in their work, etc. What is job satisfaction? Job satisfaction is ones attitude towards his job (positive or negative). Satisfaction in work and the work environment is the basic constituent of employee job satisfaction. Employee attitudes and values influence their behaviour. Positive outlook and backup from HR helps modify behaviour resulting in higher performance levels.

Definitions of job satisfaction : According to E.A. Locke, "Job satisfaction is a pleasurable or positive emotional state resulting from the appraisal of one's job or job experience." According to Field man and Arnold, "Job satisfaction will be defined as the amount of overall positive affect or (feelings) that individuals have towards their jobs."

THEORETICAL CONCEPTS

The term job satisfaction was brought to limelight by Hoppock (1935). According to him job satisfaction is a combination of Psychological, Physiological & environmental factor that makes a person to admit, I am happy at my job. It has also been defined as the end state of feeling it is an important dimension of moral and not moral itself. Job satisfaction has been considered as a state of condition where people are: 1. 2. 3. 4. 5. 6. Induced to do work efficiently and effectively; Convinced to remain in the enterprise; Prepared to act efficiently during contingencies; Prepared to welcome the changes; Interested in promoting the image of the organization; & More happy and satisfied with their job.

Job satisfaction is an individual feeling, which could be caused by a variety of factors. Job satisfaction is a distributive phenomenon. Job satisfaction refers to a general attitude towards work by an individual worker.

There are two variables, which determine the job satisfaction

Organizational Personal

The level of job determines the job satisfaction. The higher the level of the job, the greater the satisfaction of the individual. This is because of higher level jobs carry greater prestige and selfcontrol. This relationship between occupational level and job satisfaction stems for social reference group theory, in that our society value some jobs more than others. Hence people in valued jobs will like them more than those who are in non-valued jobs. The relationship may

also stem from the need fulfillment theory. People in higher-level jobs find most of their needs satisfied than when they are in lower-level ones. In addition, there are also other organizational variables like job content, type of leadership, pay and promotional prospects, interaction in the work group, which affects job satisfaction of a person. The personal variables like age, educational level, sex and so on are also responsible for satisfactions are dissatisfaction of some people. The different aspects that largely affect the job satisfaction are as under: 1. 2. 3. 4. 5. 6. 7. 8. 9. Opportunity to learn a job. Steadiness of employment. Supervision. Pay. Cooperativeness. Working condition. Cleanliness. Working hours. Communication.

10. Recognition. 11. Individual adjustment. 12. Group relationship outside the job.

FACTORS INFLUENCING JOB SATISFACTION

There are a number of factors that influence job satisfaction. A number of research studies have been conducted in order to establish some of the causes that result in job satisfaction. These studies have revealed consistent correlation of certain variables with the job satisfaction. Some of the organisational factors which affect job satisfaction are: A. ORGANIZATIONAL FACTORS 1. Salaries and Wages: - Wages and salaries play a significant role in influencing job satisfaction. This is basically because of a few basic reasons. Firstly, money is an important instrument in fulfilling one's needs. Money III also satisfies the first level needs of Maslow's model of satisfaction. Secondly, employees often see money as a reflection of the management's concern for them. Thirdly, it is considered a symbol of achievement since higher pay reflects higher degree of contribution towards organisational operations. Non monetary benefits are also important, but they are not as influential. One reason for that that is that most of the employees do not even know how much they are receiving in benefits. Moreover, a few tend to under value there benefits because they do not realize their monetary value. The employees, generally, want a pay system which is simple, fair and in line with their expectations. 2. Promotion Chances: - Promotional chances considerably affect the job satisfaction because of the following reasons: Firstly, Promotion indicates an employee's worth to the organisation which is highly morale boosting. This is particularly true in case of high level jobs. Secondly, Employee takes promotion as the ultimate achievement in his career and when it is realised, he feels extremely satisfied. Thirdly, Promotion involves positive changes e.g. higher salary, less supervision, more freedom, more challenging work assignments, increased responsibilities, status and like.

3. Company Policies: - Organisational structure and policies also play an important role in affecting the job satisfaction of employees. An autocratic and highly authoritative structure causes resentment among the employees as compared to a structure which is more open and democratic in nature. Organisational policies also govern the human behavior in the organizations. These policies can generate positive or negative feelings towards the organisation. Liberal and fair policies usually result in more job satisfactions. Strict policies will create dissatisfaction among the employees because they feel that they are not being treated fairly and may feel constrained.

WORK ENVIRONMENTAL FACTORS The work environmental factors include the following important factors: 1. Supervision: - Supervision is a moderately important source of job satisfaction. There are two dimensions of supervisory 'styles which affect the job satisfaction: First is Employee Centeredness. Whenever the supervisor is friendly and supportive of the workers there is job satisfaction. In this style, the supervisor takes personal interest in employee's welfare. Second is Participation. The superiors, who allow their subordinates to participate in decisions that affect their own jobs, help in creating an environment which is highly conducive to job satisfaction.

2. Work Group: - The nature of the work group or team will have effect on job satisfaction in the following ways:

(i) A friendly and co-operative group provides opportunities to the group members to interact with each other. It serves as a source of support, comfort, advice and assistance to the individual group members. If on the other hand, the people are difficult to get along with, the work group will have a negative impact on job satisfaction. (ii) The work group will be even a stronger source of satisfaction when members have similar attitudes and values. In such a group, there. Will less friction on day to day basis. (iii) Smaller groups provide greater opportunity for building mutual Trust and understanding as compared to larger groups. Thus, the group size and quality of interpersonal relations within the group play a significant role in worker's satisfaction. 3. Working Conditions: - Good working conditions are desirable by the employees, as they lead to more physical comfort. People desire that there should be a clean and healthy working environment. Temperature, humidity, ventilation, lighting and noise, hours of work, cleanliness of the work place and adequate tools and equipment are the features which affect job satisfaction. While the desirable working conditions are taken for granted and may not contribute heavily towards job satisfaction, poor working conditions do become a source of job dissatisfaction. Simply because they lead to physical discomfort and physical danger. (iii) Smaller groups provide greater opportunity for building mutual Trust and understanding as compared to larger groups. Thus, the group size and quality of interpersonal relations within the group play a significant role in worker's satisfaction. 3. Working Conditions: - Good working conditions are desirable by the employees, as they lead to more physical comfort. People desire that there should be a clean and healthy working environment. Temperature, humidity, ventilation, lighting and noise, hours of work, cleanliness of the work place and adequate tools and equipment are the features which affect job satisfaction. While the desirable working conditions are taken for granted and may not contribute heavily towards job satisfaction, poor working

conditions do become a source of job dissatisfaction. Simply because they lead to physical discomfort and physical danger. B. WORK ITSELF The content of the work itself plays a major role in determining the job satisfaction. Some of the aspects of the work which affect job satisfaction are: (i) Job Scope:-It provides the amount of responsibility, work pace and feedback. The higher the level of these factors, higher the job scope and higher the level of satisfaction. (ii)Variety : A moderate amount of variety is very effective. Excessive variety produces confusion and stress and a too little variety causes monotony and fatigue which is dissatisfies. (iii) Lack of Autonomy and Freedom: - Lack of autonomy and freedom over work methods and work pace can create helplessness and dissatisfaction. Employees do not like it when their every step and every action is determined by their supervisor. (iv) Role Ambiguity and Role Conflict: - Role ambiguity and role conflict also lead to confusion and job dissatisfaction because employees do not know exactly what their task is and what is expected of them. (v) Interesting Work:- A work which is very interesting the challenging and provides status will be providing satisfaction to the employees as compared to work which is boring and monotonous.

C. PERSONAL FACTORS Personal attributes of the individuals also play a very important role as to whether they are satisfied at the job or not. Pessimists and people with negative attitudes will complain about everything including the job. They will always find something wrong in every job to complain about. Some of the important personal factors are:

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1. Age and Seniority: - With age, people become more mature and realistic and less idealistic so that they are willing to accept available resources and rewards and be satisfied about the situation. With the passage of time, people move into more challenging and responsible positions. People who do not move up at all with time are more likely to be dissatisfied with their jobs.

CONSEQUNCIES OF JOB SATISFACTION Job dissatisfaction produces low morale among workers and low morale at work is highly undesirable. Job satisfaction affects productivity, employee turnover, absenteeism, union activities and safety. Research has concluded that there is a relationship between job satisfaction and performance of the employees. Thus, job satisfaction or job dissatisfaction is an important concern of the management. High job satisfaction may lead to improved productivity, decreased turnover, improved attendances, and reduced accidents, less job stress and less unionization. Job dissatisfaction produces low morale among workers and low morale at work is highly undesirable. In examining the outcomes of job satisfaction, it is important to break down the analysis into a series of specific subtopics. The following subtopics explain the outcomes of job satisfaction: 1. Job Satisfaction and Productivity: - Is there any positive relationship between satisfaction and productivity? This controversy has been there over a number of years. Although, majority of people believe that there is a positive relationship, but research evidence concludes that there is not strong relationship between these two. According to the research findings of VROOM conducted in 1964, the median correlation between satisfaction and performance Is only 0.14. LAWLER and PORTER found that there is more evidence to suggest that job performance leads to job satisfaction and not the other way round the following figure

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developed by these two explains this point. However, the saying that "A happy worker is a productive worker" is not always wrong. If people receive rewards which have both intrinsic and extrinsic value and they feel that these rewards are equitable, they will be satisfied and this will lead to greater job performance. Moreover, research also indicates that job satisfaction may not necessarily lead to improvement of individual performance but it does lead to departmental and organisational level improvement. 2. Job Satisfaction and Employee Turnover: - Unlike the relationship between satisfaction and performance, research has concluded a moderate relationship between job satisfaction and turnover. High employee turnover is a matter of concern for the management as it disrupts the normal operations and continuous replacement of employees who leave the organisation is costly and technically undesirable. Managerial concern is mostly for the turnover which arises because of job dissatisfaction. The employees, thus, tries to keep the employees satisfied on their jobs to minimise the turnover. Though, high job satisfaction in itself cannot keep the turnover low, but considerable job dissatisfaction will definitely increase the employee turnover. The employee turnover is affected by certain other factors also, in addition to job satisfaction. Commitment to the organisation is one such factor. Some employees, however dissatisfied they are with their jobs, cannot imagine themselves working anywhere else. Another important factor is the better opportunities of employment. Even if the people are highly satisfied with their jobs, they are willing to leave if there are better opportunities available anywhere else. If no other opportunities are available, the employees will stay where they are, irrespective of dissatisfaction. On the overall basis, we can say that there is an important role played by job satisfaction in employee turnover. 3. Job Satisfaction and Absenteeism: - It has been conclusively proved that their

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is an inverse relationship between job satisfaction and absenteeism. When satisfaction is high, absenteeism is low and when satisfaction is low, absenteeism is high. Less satisfied employees are more likely to be absent from work due, to avoidable reasons. This is known as voluntary absenteeism as against unavoidable absenteeism which is due to illness or other emergency reasons. Management must be concerned with voluntary absenteeism, because it is related to job satisfaction. Absenteeism can be modified by certain factors. Research has found that people who believe that their work is important have lower absenteeism as compared to those who do not feel that way. Moreover, it is important to remember that while high job satisfaction will not necessarily result in low absenteeism (because of unavoidable absenteeism), but low job satisfaction will definitely bring about high absenteeism. 4. Job Satisfaction and Union Activities:- It has been proved that satisfied employees are generally not interested in unions and they do not perceive them as necessary. Job satisfaction has proved to be the major cause of unionisation. The employees join the unions because they feel that individually they are unable to influence changes which would eliminate the causes of job dissatisfaction. The level of union activities is related to the level of job dissatisfaction. Low level of dissatisfaction results in only grievances while higher levels of dissatisfaction will result in employee strikes. 5. Job Satisfaction and Safety: - When people are dissatisfied with their jobs, company and supervisors, they are more prone to experience accidents. An underlying reason for this is that dissatisfaction takes one's attention away from the task at hand and leads directly to accidents. A satisfied worker will always be careful and attentive towards his job, and the chances of accidents will be less. Here, we are discussing about the avoidable accidents and not the unavoidable ones. 6. Other effects of Job Satisfaction:- In addition, there are a number of other effects brought about by high job satisfaction. Highly satisfied employees tend to have better physical and mental health, learn the new job related tasks easily, have less job stress and unrest. Such employees will become more cooperative such as helping

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coworkers, helping customers etc. Such behaviour will improve unit performance and organisational effectiveness. To conclude, we can say that job satisfaction results from the employee's perception that the job content and context actually provide what an employee values in the work, situation. Organizationally speaking, high level of job satisfaction reflects a highly favorable organisational climate resulting in attracting and retaining better workers.

ORGANISATIONAL PROFILE Aviva Life Insurance

Aviva Insurance dates back to 1834 in India. It was the largest foreign insurer in India at the time of nationalization and was the first foreign insurance company to set up a representative office back in 1995. Aviva Life Insurance Company is UK's largest insurance group and at fifth position globally. Aviva can proudly boast of a customer base of over 40 million satisfied policyholders worldwide. Aviva Life Insurance Company was incorporated in 2000 and is headquartered in Gurgaon, India. It is a joint venture between Dabur- one of Indias oldest and largest brand and Aviva plc- United Kingdoms largest insurance group. Dabur owns 74% stake and Aviva plc has 26% stake in the venture. Aviva is UKs largest and the worlds fifth largest insurance Group. It is one of the leading providers of life and pensions products to Europe and has substantial businesses elsewhere around the world. With a history dating back to 1696, Aviva has a 40 million-customer base worldwide. It has more than 364 billion of assets under management.

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In India, Aviva has a long history dating back to 1834. At the time of nationalisation it was the largest foreign insurer in India in terms of the compensation paid by the Government of India. Aviva was also the first foreign insurance company in India to set up its representative office in 1995. In India, Aviva has a joint venture with Dabur, one of India's oldest, and largest Group of companies. A professionally managed company, Dabur is the country's leading producer of traditional healthcare products. In accordance with the government regulations Aviva holds a 26 per cent stake in the joint venture and the Dabur group holds the balance 74 per cent share. With a strong sales force of over 27,000 Financial Planning Advisers (FPAs), Aviva has initiated an innovative and differentiated sales approach to the business. Through the Financial Health Check (FHC) Avivas sales force has been able to establish its credibility in the market. The FHC is a free service administered by the FPAs for a need-based analysis of the customers long-term savings and insurance needs. Depending on the life stage and earnings of the customer, the FHC assesses and recommends the right insurance product for them. Aviva pioneered the concept of Bancassurance in India, and has leveraged its global expertise in Bancassurance successfully in India. Currently, Aviva has Bancassurance tie-ups with ABN Amro Bank, American Express Bank, Canara Bank, Centurion Bank of Punjab, The Lakshmi Vilas Bank Ltd. and Punjab & Sind Bank, Co-operative Banks in Gujarat, Rajasthan, Jammu & Kashmir, Bihar, West Bengal, Andhra Pradesh and Maharashtra and regional Banks. COMPANY OVERVIEW Aviva Life Insurance Company India Pvt. Ltd. provides life insurance and savings products in India. The company offers whole life, endowment, child policy, single premium, pension, and term products, as well as fixed term protection and tax efficient investment plans. It also

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provides unit-linked fund options, such as bond, protector, secure, balanced, growth, index, and enhancer fund options; and gratuity, superannuation, and credit protection products. The company sells its products through a network of branches and financial planning advisers. It serves individuals, groups, banks, finance companies, and financial institutions, as well as the rural sector. The company was incorporated in 2...

History of Aviva Life Insurance India In India, the Aviva Life Insurance was born in 1834. In 1995 it became the first foreign insurance company in India with a representative office. In India, Aviva Life Insurance was the first to come up with the Bancassurance concept. Currently, the company has Bancassurance tieups with the following banks in India: ABN Amro Bank American Express Bank Canara Bank Centurion Bank of Punjab The Lakshmi Vilas Bank Ltd. Punjab & Sind Bank Besides these banks, it has Bancassurance tie-ups with 1 regional Bank located in Sikkim and 11 other Co-operative Banks in the following states of India:

Gujarat Rajasthan Jammu & Kashmir Bihar West Bengal Andhra Pradesh Maharashtra

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Products and Services of Aviva Life Insurance India Aviva India provides a vast range of savings and group insurance products including gratuities, pensions, pure protection and credit protection. The Aviva life insurance plans are designed to meet the changing needs of an individual and his/her family. The Aviva life insurance plans provide flexibility and take care of all your saving needs besides insuring protection. Some of the products are:

Whole life - Aviva Life Line, Life Long Endowment Life Saver, Life Saver Super, Easy Life Plus, Save Guard, Life Saver Plus Traditional endowment - Aviva Money back, Dhan Vriddhi Child plan - Aviva Little Master Single premium Life Bond Plus Pension Pension Plus Term Life Shield Fixed term protection and savings plan -Freedom LifePlan Health plan - Aviva Health Plus Short-pay recurring premium investment and protection plan - LifeBond5

Some of the unique benefits offered by Aviva include:

Choosing cover levels Flexibility in indexation Making partial withdrawals Systematic Transfer Plan Automatic Asset Allocation Plan

Besides, Aviva Life Insurance has 3 rural plans with low cost term. These are:

Amar Suraksha Anmol Suraksha Jana Suraksha

The investment options offered by the insurance company are as follows: Unit Linked Fund - This investment option lets you reap the benefits automatically. The layout of the fund has been planned to offer comparatively more progressive capital growth. Following are the different options offered by Unit-Linked Fund:

Bond Fund

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Protector Fund Secure Fund Balanced Fund Growth Fund Index Fund Enhancer Fund

With Profits Fund (available only on Pension Plus) This investment option ensures that the units' selling price will never decline. The fund unit value is raised by crediting bonuses on a regular compounding basis. You capital is provided with an investment security.

Aviva Life Insurance India - Customer Services The customer services are offered in the following areas:

Premium Payment Policy Details on SMS Policy Servicing Form ECS NAV

NEED FOR THE STUDY

Job satisfaction is important technique used to motivate the employees to work harder. Job satisfaction is a positive feelings or attitudes that individuals have towards their jobs. When a person says that he has high job satisfaction, it means that he really likes his job,

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feels good about it and values his job highly. Job satisfaction is the amount of pleasure or contentment associated with a job. If you like your job intensely, you will experience high job satisfaction. If you dislike your job intensely, you will experience job-dissatisfaction. It is necessary to measure job satisfaction. It increases the productivity of an employee and reduces the absenteesm and turn over.

OBJECTIVES OF THE STUDY To find out what are the factors affecting job satisfaction. To measure the job satisfaction To find out what are the consequences of job satisfaction.

RESEARCH METHODOLOGY

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Research methodology means the scientific method of conducting a research it is the research design which can be selected for conducting a study according to the nature and scope of the subject. It is the sequential and systematic procedure of conducting a research. SAMPLE SIZE Sample size is 30 SAMPLING METHOD In this project the researcher select simple random sample. Simple random sample (SRS) is a special case of a random sample. A sample is called simple random sample if each unit of the population has an equal chance of being selected for the sample. Whenever a unit is selected for the sample, the units of the population are equally likely to be selected. It must be noted that the probability of selecting the first element is not to be compared with the probability of selecting the second unit. DATA COLLECTION Data collection method one should known about the variety and sources of data. This may yield derived results. There are two types of data used primary data and secondary data. PRIMERY DATA Primary data means those data which are collected at first hand either by the researcher himself or by someone else especially for the purpose of the study known as primary data. Source of primary data is direct interview. SECONDARY DATA Secondary data means in the hands of a researcher a data becomes secondary data if it was gathered earlier for some other purpose. Sources of secondary data are records, books, and web site.

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Tools used for this study Percentage is used as a statistical tool. Limitations of the study
The research is conducted within limited duration. So detailed and comprehensive study

could not be made.

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QUESTIONNAIRE I am 3rd SEM MBA student off everonn IIPS Thrissur. I am doing project on the topic Job satisfaction and its consequences of employees in an insurance company. For the completion of the project kindly request your valuable opinions and suggestions and I expect your co- operation also to fill the questionnaire given below. Name:________________________________ Company:____________________________________ Age:________ Gender:___________

No: Particulars 1 My company is one of the best companies to work for. 2 My company treats me well. 3 I am proud to tell people I work for this company 4 Considering everything, I am satisfied working for my present time. 5 I am satisfied with the companys employee welfare programs such as rewards, incentives, food coupons, insurance and health care, etc. 6 I am getting enough relevant training for my present job. 7 I understand what is expected of me in my work. 8 I am satisfied with my conditions. 9 My 10 Overall, I am satisfied with my present job. 11 The company makes every effort to fill vacancies from within before recruiting from outside. 12 manager recognizes and acknowledges my good performance. working company at the

Strongly agree

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Agree

Disagree

Strongly Disagree

Neutral

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