A SUMMER TRAINING PROJECT REPORT ON

Emoployee Satisfaction
AT

AARTI INDUSTRIES LIMITED

In the partial fulfillment of the requirement for P.G.D.M (Full Time) Submitted By:

Nisha .R. Nair

Internal Guide: External Guide:

Dr. Devang Desai

Submitted To:

G.I.D.C. RAJJU SHROFF ROFEL BUSINESS SCHOOL GRBS, Vapi

AFFILIATED WITH AICTE, DELHI ACADEMIC YEAR 2011-13

Declaration
I, the students of GRBS hereby declare that the report on summer training and project work entitled Employee Satisfaction submitted to GIDC Rofel Business School is a result of my own work and our gratitude to other work publications if any, have been duly acknowledged.
PLACE: VAPI DATE: Nisha .R. Nair

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Acknowledgement:
We greatly concede the help provided by the company and the people working for providing the much valuable information and also extend our thanks for the support throughout the project report. We are also thankful and acknowledge our depth gratitude to our teachers and the director of GRBS for his constant encouragement and direction in the completion of this project report. We are obliged to him and express gratitude to him for giving us a great opportunity for the preparation of the project report. We would like to express a heartful of gratefulness to Mr. Kirit Shastri for giving us this opportunity to do a project in this esteemed organization. We are also thankful and concede the depth of gratitude to our professor guide Mr. Devang Desai and Mr. Kedar Shukla for their constant encouragement and supervision in the completion of this training and the project.

Nisha .R. Nair

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Contents: Sr. No. Topic

1 2 Indian chemical industry Introduction to Aarti Industries LTD. Corporate information Management Team of AIL Vision, Mission & Goal Certificates & Recognisitions Expansions SWOT Analysis General Rules & Regulation 3 Human Resource Department Function Management Facilities Provided to the workers Recruitment 22 23-25 of Human Resource 21

Page no.
5-6 8-9 10 11-13 14 15-16 17 18-19 20

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 Promotion Transfer Training & Development Remuneration Performance Appraisal Leave Structure Welfare Scheme 4 5 6 7 8 9 10 11 Introduction to Employee Satisfaction Research Methodology Analysis Hypothesis Findings Recommendation Annexure Bibliography

26 27 28 29-32 33-36 37-38 39-41 43 44-46 47-77 78-81 82-83 84-85 86 87

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Indian Chemical Industry:

In tune with the fast changing economic environment in the country, the Indian chemical industry too is on a steady growth path. Indian chemical industries has a strong and diversified base encompassing many areas such as organic and inorganic chemicals, plastic, fibers, dye stuffs, paints, pesticides, insecticides, specialty chemicals, drugs and pharmaceuticals. The growth in this sector has constantly been increasing than the average growth rate of the manufacturing sector in India. The chemical industry is sometimes referred to as the "keystone" industry because of the way the rest of the manufacturing sector relies on chemicals. Chemicals are nearly a $3.5 trillion global enterprise, and the U.S. chemical industry is the world's largest producer. The chemical industry is also the second largest consumer of energy in manufacturing and spends over $5 billion annually on pollution abatement. Chemical industry has 21% of total energy consumption. The Indian economy is firmly on the path of the steady growth. Even during the last decade when the other countries were in the grip of the massive slowdown, India continued to enjoy a comfortable position. This recent spurt in the growth is propelled by radical reforms such as the removal of the restrictions on foreign investment and industrial delicensing. With substantial increase in the domestic Gross Domestic Product (GDP) rate; the growth is also translated into increasing the demand in the domestic sector in various chemicals. Simultaneously the chemicals sector also shows growth in export.

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 Chemical Industry is an important constituent of the Indian economy. Its size is estimated at around US $ 40 billion approx, which is equivalent to about 6.7% of Indias GDP. In terms of volume, it is 12th largest in the world, and 3rd largest in Asia. Within India, it constitutes about 15% of manufacturing capacity and 20% of the Excise revenue to the Government of India. Chemical industry has weight age of about 13% in the index of industrial production. The global chemical industry is valued at about US $ 3.7 trillion. Of which, Indias chemical sector accounts for just 2%. {The Indian chemical industry is the 12th largest in the World and 3rd largest in Asia. The Indian chemical industry constitutes 12.5% of the countrys industrial production and 15%of the manufacturing capacity of India. Also the chemical industry constitutes 6.7% to Indias GDP.}

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Introduction to Aarti Industries Ltd.

Aarti has started its operations in the year 1975 in the name of alchemies labs in a small of way with a single product namely Dimentyl sulphate. Today Aarti is one of the leading suppliers to global manufacturers of Dyes, Pigments, Agrochemicals, Pharmaceuticals & rubber chemicals. Aarti has acquired world-class expertise in the development & manufacture of these chemicals. Aarti is amongst the largest producers of Benzene based basic and intermediate chemicals in India. It has corporate office in Mumbai & representatives in U.S.A & Europe.

Aarti has 16 manufacturing units spread across Gujarat & Maharashtra and a strong Research & Development with sophisticated instruments & pool of scientists.

Aarti has strong Research & Development center with sophisticated instruments & pool of scientists.

Aarti has customers spread across the globe in 60 countries with major presence in USA, Europe, Japan & India.

Aarti has attained a group turnover of US $ 515 million in the year April 2009 March 2010.

AARTI group is strategically placed to exploit growth opportunities in the Chemical Industry. In view of its technical expertise and broad base satisfied clientele in India and abroad, AARTI is looking for global partners and strategic alliances in areas of mutual interest viz.

Development of International markets for AARTI's products. Toll manufacturing.

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Transfer of Technology / Technical know-how.

AARTI INDUSTRIES LIMITED (AIL) & AARTI DRUGS LIMITED (ADL) are listed on Stock Exchanges. AARTI has a Subsidiary AARTI HEALTHCARE LIMITED (AHCL), which is engaged in manufacturing of Active pharma ingredients ranging from Ace Inhibitors, Broncodialators to Steroids.

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Corporate Information
Name Of the Company Type of Company Established Year Company Secretary Size of the Company Registered Office Aarti Industries Ltd Public Limited 1984 Mohan Suthar Large Scale Plot no.801, 801/23 GIDC ESTATE, PHASE-3,VAPI-396195, VALSAD Corporate Office Udyog Kshetra 2nd floor, L.B.S.Marg, Mulund-Goregaon Link Road, Mulund (W), Mumbai400 080 Auditors M/s. Parikh Joshi & Kothare, 49/2341, M.H.B.Colony, Gandhi Nagar, Bandra (East), Mumbai-400 051 Bankers Bank of Baroda Union Bank of India State Bank of India ABN Amro Bank Standard Chartered Bank HDFC Bank Ltd. Export-Import Bank of India IDBI Bank, ICICI
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Management Team Of AIL.

Mr. Chandrakant Gogri Chairman

A Chemical Engineer from UDCT, is the founder of Aarti group starting from a small unit to path breaking enterprise. A pioneering entrepreneur, has varied experience and expertise covering Projects, Operations, Process Development and Marketing.

Mr. Rajendra Gogri Vice Chairman & Managing Director

A Brilliant Chemical Engineer from UDCT, Mumbai, has also completed his Masters in Chemical Engineering from IOWA University of USA. He has many years of expertise in the areas of Operations, Marketing & Financial Management.

Mr. Shantilal Shah Vice Chairman

He is the founder, director of the Aarti Group. Heads the banking and financial operations of Aarti Group.

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Mr. Parimal Desai Director

Chemical Engineering graduate from UDCT, Mumbai, is a Chemical Engineer to the core. Our founder director, he has been in-charge of Technical and Research & Development. He has more than 30 years of experience in Chemical and Pharma field.

Mr. Manoj Chheda Director

Graduate in Commerce from Mumbai University. He has Over 20 years of experience in local and International Marketing. Currently takes care of International Marketing.

Mr. Rashesh Gogri Director

A graduate in Production Engineering from Mumbai. He is head of Commercial and Marketing Functions with the special focus on Pharma products.

Ms. Hetal Gala Gogri Director

An Engineer in Electronics and has done MDP from IIM Ahmedabad. She has varied experience in Operations, Purchase & Marketing. Currently she heads purchase and Supply Chain Management .

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Mr. Kirit Mehta Director

A graduate in commerce. Has more than 30 years of experience in Chemical Industry.

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Vision, Mission, & Goal:

Vision.
To emerge as Key source to leading Global consumers of Specialty Chemicals and Intermediates for Dye stuff, Agro, polymers, Pharma & Surfactants.

Mission.

To constantly strive to set up and maintain global size plant facilities. To become customer-driven company by providing customized solutions and service to meet changing customer requirements.

To maintain consistent quality and timely delivery at competitive prices. To use best cost effective manufacturing methods supported by proven, eco-friendly and safe technologies.

Commitment to growth by Research & new product developement & progressive increase in Exports.

Continuous focus on people to encourage and nurture winning organizational culture.

To meet the challenges of competition by dynamic management drive.

Goal.
o o o

Development of International markets for AARTI's products. Toll manufacturing. Transfer of Technology / Technical know-how.

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Certifications & Recognitions:

Three Star Export House

DSIR

Good Manufacturing Practices

Star Exporter of the year Award

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Merchant Exports Certificate

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Expansions: Aarti Industries Ltd.have received ISO 14001: 2004 and OHSAS 18001:
1999 from SGS for its Vapi Unit.

Expansion in existing range of products at Jhagadia, Gujarat, has been

completed.

Evolution

from

existing

reduction

processes

to

reduction

by

hydrogenation is under progress.

Aarti Industries Ltd. has received ISO-9002 approval for a majority of

its units.

Aarti Industries Ltd. is implementing organization wide integrated ERPSAP R/3 Package.

Merger of Alchemies Organics Limited with Aarti Industries Limited has

increased & diversified Aartis product range to include agrochemicals also.

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SWOT Analysis:
Strength
It had strong technical base with the core whole time director being technocrats with sound entrepreneur skills. The company being a multi location, multi product entity has manufacturing abilities for a large number of products which enables them to change of product mix as per market demands. The company has always given priority to environment, health and safety. It has technologically upgraded efficient treatment facilities at all its units.

Weakness:
Housekeeping is not so good. Centralized decision making which many a time hinders the functioning of different department.

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 Opportunity:
The company is stream lining its new units at Vapi and Tarapur for custom synthesis and USFDA approved pharmaceutical manufacturing. The company is also working out marketing tie-ups with multinational for its existing and new range of products. The company has a large customer base comparising multinational and global majors. This fact coupled with the in house, competent R&D team gives opportunities to increase volumes in existing products and to introduce new products.

Threats:
The companys threat perception is the shifting of some of its end usage product to china. Accordingly company is making continuous efforts to increase its precense in China. The companys ability to change its product mix quickly, its vast range of products numbering about 75% and its into specially chemical and pharmaceuticals also makes the company confident of countering this threat effictively.

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General Rules and Regulation

These are the rules and regulations that the employees of AARTI INDUSTRIES LIMITED have to pursue stringently and the employees do follow all these rules and regulations happily for the betterment of their lives as well as the company. Every employee should wear their uniform, as well as safety shoes, apron and safety helmet. During working hours the worker or the staff should not wonder here there without any reason. Employee should not bring any unwanted material like match or cigarette, alcohol, tobacco, etc. While coming in and going out every employee should make entry by means of purchasing card. Employee should always wear his identity card with him. Employee should not remain absent without prior information to his department head unless and until the reason for being absent is sickness or some urgency.

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Human Resource Department:

Functions of Human Resource Manager:
Application and control of company rules and organization policy. Recruitment of manpower intended by HOD and approved by management and top head. Employee and trainees induction programme arrangement. Development of trainees by training and approvals Transport arrangement for required by employees, guests & customer. Booking and reservation as required by employees / guests. Safety of company material and employees. Maintenance of first aid material. Canteen administration Assistance of meeting and conference Company occasions arrangements like annual day, Picnic. Labor welfare activities as decided by management. Arrangement of uniform, shoes, seasonal wear, safety equipment. House keeping of company premises. Casual labor arrangement Building maintenance and office maintenance Public relation activities. Salary wages and perks administration works and recorded keeping. Telecom related activities Appraisal assistant of employee for increments , training, promotions Factory Act related activities Stationary planning and arrangement.

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Facilities Provided to the Workers:

Provide opportunities for workers to talk with each other while they are working. Avoid layout or job assignment which requires work in isolation. Change the work method so as to reduce possibilities for direct handling of hazardous material. Ensure the availability of first aid equipment and aid qualified first aider. Conduct regular health check-up and provide ready access to treatment by a physician or a nurse.

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Recruitment:
As AARTI INDUSTRIES LIMITED is producing some of the hazardous chemical so for them man power recruitment process is hard-hitting job. AARTI INDUSTRIES LIMITED formulate a selection policy, due consideration is to be given to organizational requirement as well as technical and professional dimension of selection procedure adopted by AARTI INDUSTRIES LIMITED and that it is tailor made to meet its particular needs.

Source of Recruitment:
The sources that are used for the recruitment purpose in AARTI INDUSTRIES LIMITED are as follows: Internal sources

Transfer Promotion

External sources

Advertisement Educational institution Labor contractors Recruitment agencies.

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Recruitment Procedure:
NEWSPAPER

APPLICATION

RECEIVING APPLICATION

SORTING OUT APPLICATION

WRITTEN TEST INTERVIEW SORT TEST FINALIZE INTERVIEW II INTERVIEW OFFER LETTER OFFER LETTER JOINING THE ORGANIZATION JOINING THE ORGANIZATION APPOINTMENT LETTER

APPOINTMENT LETTER

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Selection Procedure:

APPLICATION FORM

INTERVIEW

EXAMINATION

PHYSICAL

REFERENCE

FINAL APPROVAL

EMPLOYMENT

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Promotion:
AARTI INDUSTRIES LIMITED gives progression to its employees with enhanced pay, position and employment responsibility all the way through encouragement by promoting them as per the responsibility and the work done by the employees as one of the best way of expressing the employees excellent work is by promotion or by increasing the employees remunerations.

Promotion Criteria:
The AARTI INDUSTRIES LIMITED has a promotion policy that, the promotion to the employees is given on the basis of seniority. AARTI INDUSTRIES LIMITED has resolute to give promotion after every two years of the working period of the employees. If an employee is not satisfied of the post he has, the employee is then sent back to his position for the duration of his promotion period. As per their resolution the AIL gives promotion to its employees by the way of their seniority which is 40% and out of 60%, 20% by the way of personal interview and 40% by performance appraisal so that none of the employees feel that they are been deceived by the company authority and the well deserved employee is being given the promotion.

Promotion Policy:
AARTI INDUSTRIES LIMITED has espoused the promotion policy as per the seniority as well as on the merit basis of the employees. The seniority of employee is regarded grade wise as per character residence period on the particular grade. Also the work done by the employees are given significance by the AIL.
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Transfer:
The Aarti Industries Limited follows a well define transfer policy to avoid any grievances among the employees.

Periodic Transfer:
In the AARTI INDUSTRIES LIMITED periodic type of transfers is mainly for those departments whose regional areas and sales department are located abroad or out the country. For that reason the marketing department is the only department which has the periodic transfer present in it. The AARTI INDUSTRIES LIMITED has a policy according to that policy the marketing personals are transferred every four year, so they can come back to the native state. There are no frequent transfers that exist n the company and they are avoided in company as the AIL are being concerned of the adverse effects of transfer on heir employees which is seen in the work of the employees.

Internal Transfer:
The internal and the departmental transfer are mostly avoided in the AARTI INDUSTRIES LIMITED.

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Training and Development:

Training in AARTI INDUSTRIES LIMITED is given to those people who are newly employed in the company so as to make them familiar with the industry and the working condition prevailing in the company. The trainings that exist in AIL:o Induction training o Health and safety o Discipline o TQM o To increase productivity. o To improve quality.

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Remuneration:
The remuneration that the AARTI INDUSTRIES LIMITED provides to each of the employees is as follows

Salary:
The Board of Directors is to be provided with the Salary of Rs.85, 000/- per month with power to make an annual increment area under discussion to a maximum amount of Rs.1, 50,000/-per month in respect of salary and privilege up to 100% of salary.

Commission:
In accumulation to the salary, the whole-time Directors of the AARTI INDUSTRIES LIMITED shall also be entitled to be paid share in comprehensive commission calculated at the rate of 1% of not profit of company computed under section 349 of the companies act, 1956 payable to all company share of such commission shall be payable after the annual accounts are adopted by the shareholders.

Perquisites:
Apart from the salary and commission regularly paid, the whole-time Director shall be permitted with the allowances:
o House rent allowance of Rs.15000/-per month. o Bonus/ex-gratis: Rs.85000/-per annum. o Compensation of Medical Expenses and/or Medical Insurance

premiums for self and family members as per companys policy.

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The power of modifying any issue i.e. increase or decrease the amount of the salary or any other and amount of perquisites to be provided by the company subject to a maximum ceiling of 100% of the salary of the whole-time Director will be in the hand of the Board of Directors, Whole-time Director shall also be entitled to following perquisites which shall not include in the computation of the ceiling on remuneration specified here in: o Contribution to Provident fund. Contributions to super annulations fund or annuity fund as per the rules of the company. These will not be included in the computation of the ceiling on perquisites to the extent these either singly or put together are not taxable under the Income Tax, 1961. o Gratuity payable at rate not beyond half a months salary for each completed year of service end. o Encashment of leave at the end of the tenure. o Provision of car for business of the company and telephone at residence shall not be treated as perquisites. Use of car for personal purpose and personal long distance calls on telephone shall be billed by the company.

The Salary Payments

Salary is usually paid in the first week of every month. Salary officer prepare covers with the name and personal code No., of employees and the pay slip along with cash or cheque as per grade. Mode of payment in cash or Bank Transfer StaffCash option or Bank Transfer

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Officer- Usually Bank Transfer.

The structure of the wages and the salaries

The Human Resource Department also deals with wages and salary system. For the AIL the happiness and contentment of the employees is the main concern, which is reflected by the health wage and salary structure design in the company. The AARTI INDUSTRIES LIMITED pursues the minimum wage rate policy that is fixed by the Government. The salaries are also determined by the minimum wage rate policy which is set by the government.

The Salary Diminution

The time office keeps the documentation of staff employees reporting at duty i.e. the time of entering and the time of leaving. If employees report late on job, in that case the company cuts the salary of that particular employee. The salary diminution rules as per the minutes that are delayed by the employee in reporting themselves to their respective departments are as follows:
o If late by 16 min to 35 min = o If late by 35 min to 45 min = o If late by 46 min to 60 min = o If late by 2 hrs. to 3 hrs

Pay of half hrs Pay of 45 min Pay of 1 hrs Pay of half days

Enlightenment :o For the purpose of this agreement, Family means the spouse, the dependent children and dependent parents, if any, of the wholetime Director.
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o No sitting fee shall be payable to him for attending the meeting of the Board of Directors or committee thereof. o The other terms and condition of the agreement are such as are customarily contained in agreement of similar nature.

The Compensation Packages

The compensation package includes: Basic + Dearness Allowance + other financial pays like cash canteen subsidies, washing allowance, shift allowance, contribution of provident fund, gratuity, medical charges, personal pays, inconvenience allowance, chemical, and hazardous allowance, etc.

Shift and Working Hours

Timing at AARTI INDUSTRIES LIMITED the shifts are as follows:

General shift 8:00 am to 5:00 pm on all working days. Lunch time is from 12:00pm to 1:00 pm and 1:00 pm to 2:00 pm. There are total 3 shifts in the company i.e. morning, evening, and night.

(Production of AARTI INDUSTRIES LIMITED goes on non stop i.e. continue round the clock.)

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Performance Appraisal:
Performance Appraisal is the procedure of evaluating employees performance of their employment in terms of their requirement for purpose of administration including placement selection for promotion need for training, providing financial rewards, etc. No firm has a choice as to whether it should or should not appraise their employees. Just as training is required to be endowed after recruitment of the employees, performance appraisal is also to be expected. In AARTI INDUSTRIES LIMITED, Confidential Method is used for performance appraisal of an employee. For the performance appraisal of the employee, the superior or head of the department prepares questionnaires, which is to be filled by their subordinates. In this report the employee describes his strength, weakness, attitude to work, intelligence, attendance work efficiency, etc. With the help of this report, the top level can get the complete idea regarding the employee and his performance in the company. He can take decision regarding promotion, financial rewards, increments, etc. with the help of the information in the report. Whatever is the relation of the superior- subordinate they both have to asses each others performance with complete purity and without any biasness. The assessment of the executive done by their subordinates and that of the subordinates or the non-executive done by their executives will be again assessed by the superiors.

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Objective of Performance Appraisal:

The objective of performance appraisal of the AARTI INDUSTRIES LIMITED is as follows
o To determine increments and provide a reliable guide for promotion

and transfer to positive of greater responsibility.

o To suggest ways of improving the employees performance when he is

not found to be up to the mark during the review period.

o To maintain individual as well as group development by informing

the employee of his performance standard. There are two types of appraisal program in the company.
o Form A for the executive and o Form B for the non- executive

There is no such procedure of the appraisal but the employees are every at the end of every year. At the end of the year the performance appraisal program is conducted to know the performance of the employees over whole period under review. This review states that which employees who are efficient in their work and needs promotion and that the employees who are incompetent and who needs training to become effective in the work done by them.

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SELF-APPRAISAL (To be filled by Appraises)

(1) (2) (3) What are the responsibilities of your job? What do you consider the key areas of your present job? In your view what are the major contributions/improvement made by you to the organization during the period under review (4) (5) What are the areas where you could not achieve your desire goal? What were the reasons? What would you consider as your important achievement, Contribution or improvements in the next 3 month, 6 months & one year? (6) (7) (8) What will be the action plan do you decided to achieve the target? In order to achieve the specified targets that help do you need from the organization? Are there any intimate problems (Personal or Organizational) which are likely to come in your way in achieving the enhanced target? (9) What co-ordination problems have you faced with your colleagues, other department, etc. in the organization? Your suggestions to improve the same. (10) What steps you have taken to improve the performance of your from donates? What do your propose to do in the next 3 to 6 months? (11) What training you had in last 12 months? (12) Do you have any suggestion for improvement in our organization?
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(13) Are you satisfied with your job, working condition and organization? (14) Do you think you need any training, Please specify?

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Leave structures:
Weekly Off:
If an employee is working in factory then the weekly off is on Sunday. If an employee is working at head office (Mumbai), the weekly off is on Saturday and Sunday.

Paid Holiday:
The employees are entitled to take eight holidays in a year, which are declared by management in the month of January.

Sick Leave:
9 days sick leave are available per annum and credited on 1st January every year during the first year of employment, however this leave benefit will be available on pro-rate basis accumulated. Sick leave can be incase at the time of retirement and death only which can be up to a maximum 72 days.

Casual Leave:
9 days casual leave is available per annum and credited on 1st January every year during the first year of employment, however this leave benefit will be available on pro-rate basis. Since casual leave benefit cannot be carried to the next year at the end of the calendar year, the outstanding leave balance will automatically be encased and included in the subsequent month.

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 Special Leave:
The managing director under exceptional circumstances will have the discretion to grant any additional leave, termed as special leave to indivisible. Such leave will be normally being leave without pay, unless it is for the benefit of the company.

Privilege Leave:
Privilege leave means which can be enjoyed only after completion of 240 working days in calendar year. 15 Privilege Leave can be enjoyed by workers and 25 Privilege Leave by staff personnel that comprise of executives also. Privilege Leave can be carried forward to the next year if employee has not availed the same and the same is aggregate up to a limit of 35.

Other Leave:
There are other leaves also like maternity leave, paternity leave, leave after resignation compensatory leave, leave unauthorized absence etc.

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Welfare Scheme:
Education scheme:
This scheme is for employees childrens who have top score in their academic year. The applicability of the scheme will be applicable to all employees of the organization and their children studying in STD.5th to 12th. These decisions are always free from bias and only the deserving child gets the benefits of scholarship scheme.

Voluntary retirement scheme:

The human resource department has also implemented a special type of policy for the employees named a voluntary retirement scheme. Under this scheme, if an employee is above 40 years of age can retire voluntarily. He will be entitled to get the minimum 4 month salary excluding the benefit for the remaining years.

Milk Scheme:
At present in AIL employees will be given 9 coupons every month against which can avail liter milk bag from canteen.

Funeral scheme:
Employees will be entitled for funeral benefit of Rs 2500 on the loss of their Mother/ Father

Provident Fund:
Company is governed by EPF act. Contribution to PF is 12% of basic salary both by the employer and by the employee.

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 ESI scheme:
The company is governed by the ESI act. All the employees earning Rs 15,000 or less gross salary per month would be covered under ESI scheme being contributory in nature, all the employees shall be insured in a manner provided by act. The contribution rates are subject to change on notification from ESI Corporation.

Mediclaim Insurance:
All the employees are covered under a mediclaim policy presently with General Insurance Company. On the day of joining, the form is made available.

Marriage Gift:
An employee who gets married in court without spending money on any functions will be entitled of Rs 5000 from the company as a cash gift. An employee who gets married will receive one month basic salary as a cash gift from the company.

Uniforms & Rainwear:

Uniform includes two sets of shirts and pants along with a pair of industrial safety shoes.

Cycle Loan:
The company provides cycle to all employees having 6 months and above service @ 50% cost subject to maximum Rs 750 for getting cycle first time by filling forms with approval and submitting the same to P & A department and for second time onwards employee will bear entire cost. Amount receivable i.e. 50% and 100% will be deducted from salary in 10 equal installments.

Long service allowance:

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An employee who has completed 5 years service in the organization will be entitled for Long service allowance per month as per the grade given below:

Sr.No.

Grade 5 years

Years Of Service 10 years 200 15 years 20 years 25 years 250 300 350

Non Executive

150

2 3

Supervisor 175 Executives 200 & Above

250 300

325 400

400 500

475 600

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Employee Satisfaction:
The most common purpose for surveying employees is satisfaction. Employee satisfaction surveys deal with workplace issues, such as benefits, commitment to diversity and effective communications. The data from these surveys helps paint a portrait of employee attitudes and opinions. These kinds of surveys are particularly useful after a company has undergone some sort of change, such as a layoff, an acquisition, or a new department head. They also help employers isolate the root cause s of persistent problems, such as low productivity or high expenses. Employee satisfaction surveys help employers measure and understand their employees attitude, opinions, motivation, and general satisfaction with their work environment. Use employee decision making, benefits, work needs and more. Employee satisfaction surveys provide valuable data that can ultimately save your company money. Our employee satisfaction surveys can: Measure employee satisfaction level. Track changes in employee satisfaction over time. Improve overall satisfaction and retention.

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Research Methodology:
Problem Statement: Measuring the employee satisfaction at Aarti Industries Objectives of the Study:
(1) (2) (3) (4) (5) (6) Measure job satisfaction of the employees of Aarti Industries Ltd. To assess the general attitude of the employees towards Aarti Industries Ltd. To study the perception towards organization. To assess the level of commitment across process and facilities. To identify the factors that motivates the employees. To help the management of the company to know about the actions to be taken to increase the level of satisfaction of the employee.

Scope of study:
(1) (2) (3) (4) It is important to measure the satisfaction of employees time-to-time for getting proper outputs from them. It is an interesting and significant area for conducting research. The study made on this topic will reveal the feeling of employees towards their job. This report will be useful to the management of the company to know the satisfaction levels of employees and they can take measures to increase productivity.

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Limitations of the Project:

(1) (2) (3) Due to limitation of time the research could not be made more detailed. Due to confidentiality of some information accurate response was not revealed by some of the respondents. Some of the responses from the employees may be biased.

Data sources:
Primary Data: The Primary data was collected from the respondents by administering a structured questionnaire and also through observation, interview & discussion with management. Secondary Data: Apart from primary data collected, the data collected through the annual reports of Aarti Industries, Academic Reports and Internet has been used for the study.

Sampling:

Sample Population:
There are total 503 employees working in the organization.

Sample Size:
Out of the total strength the sample taken amongst workers is 47 respondents.

Sampling Area:
The research was conducted at Aati Industries, Vapi.

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Sample Method:
Convenient Sampling was used.

Data Analysis Method:

Chi Square was used.

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Analysis:
(1) How many years have you been with the company?
Less than one year 1-3 year 4-6 year More than 6 years Total 3 12 19 13 47

20 18 16 14 12 10 8 6 4 2 0 Less than one year 1-3 year 4-6 year More than 6 years

Series1

Interpretation: 6% of the respondents in the organization are working from less than 1 year, 26% of the respondents are working from 1-3 year, 40% of the respondents are working from last 4-6 years and 28% of the employees have been working in the organization from more than 6 years.

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(2)

Rate your overall satisfaction towards the company.

Extremely Dis-satisfied Somewhat Dis-satisfied Neutral Somewhat Satisfied Extremely Satisfied Total 0 0 4 16 27 47

Extremely Satisfied Somewhat Satisfied Neutral Somewhat Dis-satisfied Extremely Dis-satisfied 0 5 10 15 20 25 30

Series1

Interpretation:
57% of the respondents working in the organization are extremely satisfied with the company, 34% of the respondents are satisfied with the company, and 9% of the respondents have a neutral opinion towards the satisfaction of the company.

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(3)

To what extent do you agree with the following statement: I would recommend this company as a good place to work?
Completely Disagree Strongly Disagree Somewhat Disagree Somewhat Agree Strongly Agree Completely Agree Total 0 0 0 5 23 19 47

25 20 15 10 5 0 Series1

Interpretation:
40% of the respondents completely agree with the statement, 49% of the respondents strongly agree with the statement, and 11% of the respondents somewhat agree with the statement.

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(4)

Please indicate the extent to which you agree with the following statement.
(a) The company clearly conveys the mission to its employee. Completely Disagree Somewhat Disagree Neutral Somewhat agree Completely Agree Total 0 2 4 24 17 47

Completely Agree Somewhat agree Neutral Somewhat Disagree Completely Disagree 0 5 10 15 20 25 Series1

Interpretation: About 36% of the respondents completely agree to the statement that the company clearly conveys the mission, 51% of the respondents somewhat agree with the statement, 9% of the respondents are having a neutral opinion, and 4% of the respondents somewhat agree with the statement.

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(b)

I agree with the companys overall mission. Completely Disagree Somewhat Disagree Neutral Somewhat agree Completely Agree Total 0 1 12 21 13 47

Completely Agree Somewhat agree Neutral Somewhat Disagree Completely Disagree 0 5 10 15 20 25 Series1

Interpretation: 27% of the respondents agree with the overall mission of the company, 45% of the respondents somewhat agree with the statement, 26% of the employees are having neutral view, 2% of the respondents somewhat agree with the statement.

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(c)

I feel like I am a part of the company. Completely Disagree Somewhat Disagree Neutral Somewhat agree Completely Agree Total 0 0 15 19 13 47

Completely Agree Somewhat agree Neutral Somewhat Disagree Completely Disagree 0 5 10 15 20 Series1

Interpretation: 28% of the respondents completely agree with the statement that they feel as a part of the organization, 40% of the respondents somewhat agree with the statement, 32% of the employees are having neutral view towards the statement.

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(d)

There is a good communication between employees and managers in the company. Completely Disagree Somewhat Disagree Neutral Somewhat agree Completely Agree Total 0 0 13 21 13 47

Completely Agree Somewhat agree Neutral Somewhat Disagree Completely Disagree 0 5 10 15 20 25 Series1

Interpretation: 28% of the respondents completely agree with the statement that there is a good communication between employees and managers in the company, 45% of the employees are somewhat agreeing with the statement, and 28% of the respondents neutral.

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(e)

The managers take good care of the problems of the employees and try to solve or redress them with proper counseling as soon as possible. Completely Disagree Somewhat Disagree Neutral Somewhat agree Completely Agree Total 0 0 0 19 28 47

Completely Agree Somewhat agree Neutral Somewhat Disagree Completely Disagree 0 5 10 15 20 25 30 Series1

Interpretation:
60% of the employees completely agree with the statement that the managers take good care of the problems of the employees and try to solve or redress them with proper counseling as soon as possible, 40% of the employees somewhat agree with the statement.

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(5)

Rate overall satisfaction towards your department. Extremely Dis-satisfied Dis-satisfied Neutral Satisfied Extremely Satisfied Total 0 0 14 18 15 47

18 16 14 12 10 8 6 4 2 0

Series1

Interpretation:
32% of the employees are extremely satisfied with the department they are working, 38% of the employees are satisfied and 30% of the employees are neutral.

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(6)
(a)

Please indicate the extent to which you agree with the following statement.
My job gives me an opportunity to learn. Completely Disagree Somewhat Disagree Neutral Somewhat agree Completely Agree Total 0 0 5 17 25 47

25 20 15 10 5 0 Series1

Interpretation:
53% of the respondents completely agree with the statement that their job gives them an opportunity to learn, 36% of the respondents somewhat agree with the statement, 11% of the statement respondents are neutral.

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(b)

I have the tools and resources I need to do my job.

Completely Disagree Somewhat Disagree Neutral Somewhat agree Completely Agree Total 0 0 2 11 34 47

25 20 15 10 5 0 Series1

Interpretation:
72% of the respondents completely agree with the statement that they are having all the tools and resources needed for their job, 23% of the respondents somewhat agree with the statement, 4% of the respondents are neutral.

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(c)

I get the necessary training time to time which is needed for my job.
Completely Disagree Somewhat Disagree Neutral Somewhat agree Completely Agree Total 0 0 0 14 33 47

35 30 25 20 15 10 5 0 Series1

Interpretation:
70% of the respondents completely agree with the statement that they get the necessary training time to time which is needed for my job, 30% of the respondents somewhat agree with the statement

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(d)

I receive right amount of recognition for my job.

Completely Disagree Somewhat Disagree Neutral Somewhat agree Completely Agree Total 0 0 9 14 33 56

25 20 15 10 5 0 Series1

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(e)

I feel underutilized in my job.

Completely Disagree Somewhat Disagree Neutral Somewhat agree Completely Agree Total 12 17 18 0 0 47

25 20 15 10 5 0 Series1

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(f)

The amount of work expected from me is reasonable.

Completely Disagree Somewhat Disagree Neutral Somewhat agree Completely Agree Total 0 0 10 15 10 35

25 20 15 10 5 0 Series1

Interpretation:
22% of the respondents completely agree, 49% of the respondents somewhat agree and 11% are neutral.

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(g)

People in my department communicate sufficiently with one another.

Completely Disagree Somewhat Disagree Neutral Somewhat agree Completely Agree Total 0 0 5 23 19 47

25 20 15 10 5 0 Series1

Interpretation:
40% of the respondents completely agree with the statement that people in my department communicate sufficiently with one another., 49% of the respondents somewhat agree and 11% are neutral.

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(7) (a)

Rate your satisfaction towards

Your Pay?
Highly Dissatisfied Dissatisfied Neutral Satisfied Highly satisfied Total 0 1 21 16 9 47

25 20 15 10 Series1 5 0

Interpretation:
19% of the respondents are highly satisfied with the pay they receive, 34% of the respondents are satisfied, 45% of the respondents are neutral and 2% of the respondents are dissatisfied.

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(b)

Your Bonus?
Highly Dissatisfied Dissatisfied Neutral Satisfied Highly satisfied Total 0 0 20 18 9 47

25 20 15 10 Series1 5 0

Interpretation:
19% of the respondents are highly satisfied with the bonus they receive, 38% of the respondents are satisfied and 43% of the respondents are neutral.

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(c)

Your career progression at the company.

Highly Dissatisfied Dissatisfied Neutral Satisfied Highly satisfied total 0 1 21 15 10 47

25 20 15 10 Series1 5 0

Interpretation:
21% of the respondents are highly satisfied with the career progression plan of the company, 31% of the respondents are satisfied, 45% of the respondents are neutral and 2% are dissatisfied.

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(d)

The vacation time you receive.

Highly Dissatisfied Dissatisfied Neutral Satisfied Highly satisfied total 0 5 14 22 6 47

25 20 15 10 Series1 5 0

Interpretation:
12% of the respondents are highly satisfied with the vacation time they receive, 4% of the respondents are satisfied, 30% of the respondents are neutral and 11% are dissatisfied.

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(e)

The retirement plan

Highly Dissatisfied Dissatisfied Neutral Satisfied Highly satisfied total 0 1 18 20 8 47

25 20 15 10 Series1 5 0

Interpretation:
17% of the respondents are highly satisfied with the retirement plan, 43% of the respondents are satisfied, 38% of the respondents are neutral and 2% are dissatisfied.

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(f)

Your medical insurance

Highly Dissatisfied Dissatisfied Neutral Satisfied Highly satisfied Total 0 0 14 22 11 47

25 20 15 10 Series1 5 0

Interpretation:
23% of the respondents are highly satisfied with the medical insurance, 47% of the respondents are satisfied, 30% of the respondents are neutral.

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(g)

Process used to determine Promotion.

Highly Dissatisfied Dissatisfied Neutral Satisfied Highly satisfied total 0 0 0 11 26 37

35 30 25 20 15 10 5 0 Series1

Interpretation:
55% of the respondents are highly satisfied with process used to determine promotion, 24% of the respondents are satisfied.

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(8)

Rate your satisfaction towards different physical working conditions mentioned below, in the organization. (a) Drinking water
Highly Dissatisfied Dissatisfied Neutral Satisfied Highly satisfied total 0 0 0 2 45 47

35 30 25 20 15 10 5 0 Series1

Interpretation:
96% of the respondents are highly satisfied with the drinking water, 4% of the respondents are satisfied.

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(b)

Toilet facilities
Highly Dissatisfied Dissatisfied Neutral Satisfied Highly satisfied total 0 0 0 5 42 47

35 30 25 20 15 10 5 0 Series1

Interpretation:
89% of the respondents are highly satisfied with process used to determine promotion, 11% of the respondents are satisfied.

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(c)

Lighting
Highly Dissatisfied Dissatisfied Neutral Satisfied Highly satisfied Total 0 0 0 0 47 47

35 30 25 20 15 10 5 0 Series1

Interpretation:
100% of the respondents are highly satisfied with lighting.

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(d)

Working Area
Highly Dissatisfied Dissatisfied Neutral Satisfied Highly satisfied total 0 0 2 10 35 47

35 30 25 20 15 10 5 0 Series1

Interpretation:
74% of the respondents are highly satisfied with working area, 21% of the respondents are satisfied, and 4% respondents are neutral.

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(e)

Maintainance of computers & equipments

Highly Dissatisfied Dissatisfied Neutral Satisfied Highly satisfied total 0 0 1 1 45 47

35 30 25 20 15 10 5 0 Series1

Interpretation:
96% of the respondents are highly satisfied with maintenance of computers and equipments, 2% of the respondents are satisfied, and 2% of the respondents are neutral.

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(f)

Cleanliness of workspace
Highly Dissatisfied Dissatisfied Neutral Satisfied Highly satisfied total 0 0 5 9 33 47

35 30 25 20 15 10 5 0 Series1

Interpretation:
70% of the respondents are highly satisfied with cleanliness of workspace, 19% of the respondents are satisfied, 11% are neutral.

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(g)

Noise control
Highly Dissatisfied Dissatisfied Neutral Satisfied Highly satisfied total 0 0 8 14 25 47

35 30 25 20 15 10 5 0 Series1

Interpretation:
53% of the respondents are highly satisfied with noise control, 30% of the respondents are satisfied, 17% are neutral.

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(h)

Canteen facilities
Highly Dissatisfied Dissatisfied Neutral Satisfied Highly satisfied total 0 0 0 12 35 47

35 30 25 20 15 10 5 0 Series1

Interpretation:
74% of the respondents are highly satisfied with canteen facilities, 26% of the respondents are satisfied.

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Hypothesis:
Ho: Satisfaction of the company is based on the satisfaction of the department. H1: Satisfaction of the company is not based on the satisfaction of the department. o 27 16 4 0 0 15 18 14 0 0 e 21 17 9 0 0 21 17 9 0 0 o-e 6 -1 -5 0 0 -6 1 5 0 0 Total Chi(cal)=9.101774 Chi(tab)=9.63 (o-e)^2 36 1 25 0 0 36 1 25 0 0

(o-e)^2/e 1.714286 0.058824 2.777778 0 0 1.714286 0.058824 2.777778 0 0 9.101774

Chi(tab)>Chi(cal)
9.63>9.101774 Hence, null hypothesis is accepted.

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Ho: Satisfaction towards the company is based on the pay of an employee. o 27 16 4 0 0 9 16 21 1 0 e 18 16 12.5 0.5 0 18 16 12.5 0.5 0 (o-e) 9 0 -8.5 -0.5 0 -9 0 8.5 0.5 0 Total Chi(cal)=21.56 Chi(tab)=9.63 9.63<21.56 (o-e)^2 81 0 72.25 0.25 0 81 0 72.25 0.25 0 (o-e)^2/e 4.5 0 5.78 0.5 0 4.5 0 5.78 0.5 0 21.56

H1: Satisfaction towards the company is not based on the pay of an employee.

Chi(tab)>Chi(cal)
Hence, null hypothesis is rejected.

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Ho: Satisfaction towards retirement planning is related to the satisfaction towards company. towards company. o 27 16 4 0 0 8 20 18 1 0 e 17.5 18 11 0.5 0 17.5 18 11 0.5 0 H1: Satisfaction towards retirement planning is related to the satisfaction (o-e) 9.5 -2 -7 -0.5 0 -9.5 2 7 0.5 0 Total Chi(cal)=20.66782 Chi(tab)=9.63 (o-e)^2 90.25 4 49 0.25 0 90.25 4 49 0.25 0 (o-e)^2/e 5.157143 0.222222 4.454545 0.5 0 5.157143 0.222222 4.454545 0.5 0 20.66782

Chi(tab)>Chi(cal)
9.63<20.66782 Hence, null hypothesis is rejected.

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Ho: Ho: Satisfaction towards working area is related to the satisfaction towards company. company. o 27 16 4 0 0 35 10 2 0 0 H1: Satisfaction towards working area is related to the satisfaction towards e 31 13 3 0 0 31 13 3 0 0 o-e -4 3 1 0 0 4 -3 -1 0 0 Total Chi(cal)=3.08354 Chi(tab)=9.63 (o-e)^2 16 9 1 0 0 16 9 1 0 0 (o-e)^2/e 0.516129 0.692308 0.333333 0 0 0.516129 0.692308 0.333333 0 0 3.08354

Chi(tab)>Chi(cal)
9.63>3.08354 Hence, null hypothesis is accepted.

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Findings:
The objective and purpose of the department and the oemployees should match the vision and mission of AIL. As per the companys act the company should have an HR manual which the AIL does not have. The employee turnover ratio in the company is high. Which the company should take in notice and keep a proper record of it. The company has good recruitment and selection procedures for the selection of the candidates. The training is given as per schedule to the employees. Employee development is only by training and not by transfers. The employees are appraised once in a year. The company is committed to ensure sound safety, health and environment (SHE) performance related to its activities, products and services. The company is taking continuous steps and also developing environment friendly processes for the effective resource management with specific focus to energy, water and basic raw materials.

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 The company is committed to strengthen, pollution prevention and waste abatement practices and strives to provide a safe and healthy environment. The employee safety is the biggest importance for AIL which is given most preference and they do very satisfactorily. AIL has ensured safety and health of its employees. The relationship between the management and the employees are good as the directors record their appreciation of the support and cooperation of all employees and count them for the growth of the company. The documents and forms are available in AIL and they are properly maintained by the company.

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Recommendation:
The AIL does not have any HR employee manual. maintain manuals covering all policies. Job descriptions exists in AIL but they are not reviewed regularly. AIL should concentrate on reviewing those policies as for a new positions job descriptions should be readily available at the time of induction training given to the new employees. So AIL should

Though the turnover rates of employee are not high the company should monitor and keep a proper record of the turnover of employees. AIL should set up an appropriate performance appraisal policy and procedure once in 3-4 months to ensure that all employees understand their job responsibilities and objectives.

The compensation levels should be monitored and reviewed regularly by the AIL. AS PER THE COMPENSATION ACT 1956 the company should review their compensation levels regularly. AIL does not have any policy for the employee violating the regulations and policies of the company. So the company should develop some disciplinary policy to avoid violation of rules & regulations.

There should be a grievance solving procedure in which the employees can lodge complain or grievance to their superior or HR Manager.
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 The AIL should provide the employees with transportation facilities. For the employees convenience.

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Annexure: A Questionnaire on Employee Satisfaction At Aarti Industries LTD.

(1) Rate your overall satisfaction towards the company.
o Extremely Dissatisfied o Somewhat Dissatisfied o Neutral o Somewhat Satisfied o Extremely Satisfied

(2)

To what extent do you agree with the following statement: I would recommend this company as a good place to work?
o Completely Disagree o Strongly Disagree o Somewhat Disagree o Somewhat agree o Strongly Agree o Completely Agree

(3)

Please indicate the extent to which you agree with the following statement
Completely Somewhat Disagree Disagree Neutral Somewhat Completely agree Agree

The company clearly conveys its mission to its employees I agree with the companys overall mission I feel like I am a part of the company There is a good communication between 86 | P a g e

employees and managers in the company The management takes good care of the problems of the employees and tries to solve or redress them with proper counseling as soon as possible

(4)

Rate overall satisfaction towards your department.

o Extremely Dissatisfied o Somewhat Dissatisfied o Neutral o Somewhat Satisfied o Extremely Satisfied

(5)

Please indicate the extent to which you agree with the following statement
Completely Somewhat Disagree Disagree Neutral Somewhat Completely agree Agree

My job gives me an opportunity to learn I have the tools and resources I need to do my job. I get the necessary training time to time which is needed for my job. I receive right amount of recognition for my work I feel underutilized in my work The amount of work expected from me is reasonable People in my department one another communicate sufficiently with

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(6)

How satisfied are you with.

Highly dissatisfied Dissatisfied Neutral Satisfied Highly Satisfied

Your Pay? Your Bonus? Your Career progression at the company ? The vacation time you receive The retirement Plan? Your medical insurance? Other benefits offered by the company? Process used to determine promotions?

(7)

How satisfied are you with the physical working conditions mentioned below, in the organization
Highly dissatisfied Dissatisfied Neutral Satisfied Highly Not

Satisfied

Applicable

Drinking water Toilet facilities Lighting Work area(space) Maintenance of computers and equipments Cleanliness of workspace Sports club Noise control Canteen Facilities

(8)

o Less Than 1 year o 1-3 year o 4-6 year

How many years have you been with the company?

o More than six years

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Bibliography: (1) www.aartiindustries.com (2) www.scribd.com

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